31597544 2022-01-01 2022-12-31 31597544 2022-01-01 2022-12-31 1 31597544 2022-01-01 2022-12-31 2 31597544 2022-01-01 2022-12-31 1 31597544 2022-12-31 31597544 2022-01-01 2022-12-31 101 31597544 2021-01-01 2021-12-31 31597544 2021-01-01 2021-12-31 1 31597544 2021-12-31 31597544 2021-01-01 2021-12-31 101 31597544 2020-01-01 2020-12-31 31597544 2020-01-01 2020-12-31 1 31597544 2020-12-31 31597544 2020-01-01 2020-12-31 101 31597544 2019-01-01 2019-12-31 31597544 2019-01-01 2019-12-31 1 31597544 2019-12-31 31597544 2019-01-01 2019-12-31 101 31597544 2018-01-01 2018-12-31 31597544 2018-01-01 2018-12-31 1 31597544 2018-12-31 31597544 2018-01-01 2018-12-31 101 31597544 2021-12-31 fsa:ContributedCapitalMember 31597544 2022-01-01 2022-12-31 fsa:ContributedCapitalMember 31597544 2022-12-31 fsa:ContributedCapitalMember 31597544 2021-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 31597544 2022-01-01 2022-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 31597544 2022-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 31597544 2021-12-31 fsa:RetainedEarningsMember 31597544 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 31597544 2022-12-31 fsa:RetainedEarningsMember 31597544 2022-01-01 2022-12-31 1 31597544 2022-01-01 2022-12-31 1 31597544 2022-01-01 2022-12-31 2 31597544 2022-01-01 2022-12-31 3 iso4217:DKK xbrli:pure Jens Kirk Jørgensen Statement by the Board of Directors and the Executive Board The Board of Directors and the Executive Board have today discussed and approved the annual report of Vattenfall Vindkraft A/S for the financial year 1 January – 31 December 2022. The annual report has been prepared in accordance with the Danish Financial Statements Act. It is our opinion that the financial statements give a true and fair view of the Company's financial position at 31 December 2022 and of the results of the Company's operations for the financial year 1 January – 31 December 2022. Further, in our opinion, the Management's review gives a fair review of the development in the Company's operations and financial matters and the results of the Company's operations and financial position. We recommend that the annual report be approved at the annual general meeting. Copenhagen Anne Mette Traberg CEO Robert Zurawski Chairman Anne Mette Traberg Hans Werner Woltmann Independent auditors' report To the shareholder of Vattenfall Vindkraft A/S Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Vattenfall Vindkraft A/S at 31 December 2022 and of the results of the Vattenfall Vindkraft A/S's operations for the financial year 1 January – 31 December 2022 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Vattenfall Vindkraft A/S for the financial year 1 January - 31 December 2022, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (“financial statements”). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the 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. Statement on Management’s Review Management is responsible for Management’s Review.Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the 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's responsibilities for the financial statements 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. Auditor's responsibilities for the audit of the financial statements 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 judgment and maintain professional skepticism 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. Aarhus PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Claus Dalager Thomas Riis statsautoriseret revisor statsautoriseret revisor Vattenfall Vindkraft A/S Jupitervej 6 6000 Kolding Kolding PriceWaterhouseCoopers Statsautoriseret Revisionspartnerselskab Jens Chr. Skous Vej 1 8000 Aarhus 1331742000 707307000 365001000 453760000 408289000 845178000 458882000 221868000 326746000 224112000 Operating profit/loss Operating profit/loss Operating profit/loss Operating profit/loss Operating profit/loss 418087000 101085000 -196451000 1163000 60590000 -36321000 -40013000 -28922000 -39622000 -9115000 3225082000 1170515000 358788000 150924000 202428000 8849673000 5624591000 4454076000 4095418000 2451254000 18022020000 14647144000 11441129000 9470743000 5373825000 72090000 20422000 42142000 77828000 53150000 438 359 301 267 237 6.35 6.49 6.08 0.72 0.55 Operating Margin (EBIT-Margin) Operating Margin (EBIT-Margin) Operating Margin (EBIT-Margin) Operating Margin (EBIT-Margin) Operating Margin (EBIT-Margin) 3.14 1.43 -5.38 0.00 0.15 0.26 0.08 -0.19 0.00 0.01 4.91 3.84 3.89 0.43 0.46 4.46 2.32 0.84 0.05 0.09 Financial ratios are calculated in accordance with the Danish Society’s recommendations on the calculation of financial ratios. For terms and definitions, please see the accounting policies. The presentation of the income statement, the financial statement is reported after same accounting policies as last year. Business review Vattenfall Vindkraft A/S manages the part of the Vattenfall Group’s activities in Denmark that relate to the production of renewable energy based on wind. Today, Vattenfall Vindkraft A/S and its subsidiaries are the largest owner and operator of Offshore windfarms in Denmark and one of the largest owner and operator of onshore wind turbines in Denmark. The ongoing construction of the Vesterhav windfarms will increase the offshore portfolio. The Vattenfall Group is one of the largest investors in the production of renewable energy in Northern Europe. Operations The Company’s core operation is to run and develop wind farms and sell electricity. The Company is also the service company for all of its subsidiaries and the Company’s staff is further supporting other Vattenfall assets and projects in Europe. Unusual matters having affected the financial statements There has been no unusual matters that would have affected the financial statement. Management's review Development in financial activities and matters The turnover in 2022 is 1,332 mDKK, which is an increase of 624 mDKK compared to 2021. The main component explaining the increase are the electricity market prices, which have increased significantly in 2022. The Company's income statement for 2022 shows a profit of DKK 3,225,082 thousand against a profit of DKK 1,170,515 thousand last year. The Company's balance sheet at 31 December 2022 showed equity of DKK 8,849,673 thousand. Profit for the year compared with previously expressed expectations The operational result for 2022 is showing an increase compared to the expectations for 2022. Following the increase of European electricity prices during 2022, the company’s revenues and profit have been increasing significantly.Market risks The Company is exposed to market prices as it is selling electricity on the spot market. On top of the market risk the company is exposed to variations in the wind volumes from year to year. Research and development activities Vattenfall Vindkraft A/S participates in the joint research and development activities of the Vattenfall Group by participating in the programmes that are relevant to onshore and offshore wind turbines in the form of optimisation projects and several other measures. Knowledge resources At 31 December 2022, Vattenfall Vindkraft A/S had 493 employees who works at the offices in Esbjerg, Copenhagen and Kolding. The average for the whole year was 438 employees. Vattenfall Vindkraft A/S makes an effort to prevent industrial accidents. The safety organisations at the individual locations ensure on a daily basis that the safety rules are complied with. Again in 2022, Vattenfall Vindkraft A/S has had primary focus on personal injuries and the working environment. The organisation makes a determined effort to integrate environment and working environment in the project development. Recognition and measurement uncertainties Recognition and measurement of provisions for expected future costs for dismantling and restoring production facilities, etc. are subject to uncertainties in particular as regards the time frame. The provision is based on the Management’s best estimate. The applied estimates for calculations of impairment needs are based on historic observations and other factors, which management considers as valid, but which subject to uncertainties. Assumptions can be incomplete or incorrect and unexpected events can happen. This includes expectations of future electricity prices. Impairment uncertainty No indication regarding impairment this year. Events after the balance sheet date No events materially affecting the Company’s financial position have occurred subsequent to the financial year-end. Outlook The outlook for 2023 will be impacted by the completion of the construction of the Vesterhav projects expected in the last quarter. The company is further expecting increased activity levels in the engineering department following work for various Vattenfall projects, which will increase revenues and cost while having a limited positive impact on profits. The pricing levels are expected to be lower compared to 2022, but are expected to remain above levels from prior 2022 as indicated by forward electricity contracts. The company is expecting revenues in 2023 at level of 1,000 mDkk and a profit before tax in the range 1,400-1,600 mDkk. The expectation for 2022 is subject to great uncertainty due to the energy prices, which are strongly affected by the global uncertainty on energy pricing. Statutory CSR report Vattenfall Vindkraft A/S refers to the Vattenfall Group policies in the CSR area in compliance with section 99a (7) of the Danish Financial Statements Act on the reporting of corporate social responsibility. Vattenfall AB publishes a CSR report where the requirement by ÅRL § 99a are reported and followed up pages 50-80. vattenfall-annual-and-sustainability-report-2022.pdf The Vattenfall Group has decided to comply with the principles defined in the UN Global Compact guidelines, and therefore, Vattenfall's corporate social responsibility work is subject to these principles. Vattenfall's corporate social responsibility work comprises seven areas: • Environmental impact • Business ethics • Anti-corruption policies • Human rights • Working environment • Ethnic diversity• Gender equality The results of the environmental efforts are discussed below. The Company's work in relation to business ethics and anti-corruption policies is reflected in the Company's code of conduct together with a systematic registration of suppliers. Corporate social responsibility (CSR) Vattenfall depends on local communities, employees, customers and society at large, including the Company's immediate neighbours, policymakers, environmental organisations, owners and financial markets. Without the confidence and trust of the surrounding world, we will not be able to operate and develop our business – in short: corporate responsibility creates value. Open and transparent dialogue and corporate responsibility are key to our day-to-day operations. Each year, Vattenfall publishes a CSR report (on the Group's social responsibility) which complies with the guidelines of Global Reporting Initiative (GRI). The CSR report provides information that enables the measurement and assessment of the Company's ability to meet the expectations of local communities. The report gives access to data on Vattenfall's results in an environmental, social and financial perspective. Read the CSR report and download it at Vattenfall's website: vattenfall-annual-and-sustainability-report-2022.pdfSafety is one our core values which also involves the safety of our employees, business partners and local communities. We must always make sure that our operations do not interfere with public health and safety. Vattenfall's definition of absence owing to industrial accidents is reflected in a financial ratio that is included in the monthly follow-up of all entities. Vattenfall's working environment policy supports this work, and the Company is OHSAS 18001 certified. The working environment organisation at the individual locations ensures on a daily basis that the safety rules are complied with. Improvements to the working environment are continuously made in all departments of the Company. The Company aims to increase the awareness, skills and knowledge of safety and health and to develop a safety and health culture. All employees at Vattenfall must be role models. Impact on the external environment It is Vattenfall's goal that the Group should be a leading developer of environmental, sustainable energy production. Vattenfall has during 2019 defined a new purpose “Power Climate Smarter Living” with a goal to become fossil free within one generation. Vattenfall exists to help all our customers power their lives in ever climate smarter ways and free from fossil fuel within one generation. The world urgently needs to find alternative ways of powering and heating its businesses, cities and homes more cleanly. Change has to happen, and fast. The solution is energy that is 100% free from fossil fuel and that powers all aspects of people’s lives, including heating, transportation and manufacturing. Power Climate Smarter Living has been defined as Vattenfall’s purpose and is the starting point for the strategy. Following the purpose statement strategic objectives have been defined as • Leading towards sustainable consumption • Leading towards sustainable production • Having high performing operations • Having empowered and engaged people Account of the gender composition of the Board The Board of Directors of Vattenfall Vindkraft A/S has set a goal for the under-represented gender in the board at 33-40%. It is the Board of Directors' intention to meet the goal within 3 years. At present, the under-represented gender accounts for 33% of the three board members appointed by the general meeting of shareholders, why the goal has been reach in the beginning of 2022. Moreover, the Board of Directors has confirmed that the Vattenfall group policy, which aims to increase the number of female leaders, also represents a goal for Vattenfall Vindkraft A/S. The policy includes a definition of goals for newly appointed leaders in the Group's business units, goals for the group management's participation in support activities and the Group's introduction of an international mentoring programme for potential female leaders that is designed to help women create new career and leadership opportunities. Due to the appointment of a female Managing Director at beginning of 2022 the gender target has been achieved . Within the BA Wind organisation 34 managers are employed by Vattenfall Vindkraft, the gender composition is 8 female and 26 male. Diversity on management level The Company applies the Vattenfall Group policy in the area of diversity and inclusion. The policy includes a definition of goals for newly appointed leaders in the Group's business units, goals for the group management's participation in support activities and the Group's introduction of an international mentoring programme for potential female leaders that is designed to help women create new career and leadership opportunities. Vattenfall Group continuously works on developing the diversity and inclusion aspect via educational programmes and various activities, both via the management levels as well as via the HR-organisation and Workers Council activities. The policy is includes practical behaviour instructions and describes the importance of an open culture, active execution of equal rights, being inclusive and create psychological safety in the work space.. The Group Management of Vattenfall is supporting the agenda by appointing a D&I Officer on EGM-level to show the high priority the topic has for the Company. The Vattenfall Group approach is thereby fully executed in the Company. For 2022 the diversity on management level, expressed as the gender composition of Vattenfall Vindkraft employed managers within the Vattenfall Wind business area, shows that 9 of 14 managers are female. The company aims at having a gender balance on Business Area level and does not consider this imbalance to be an issue. The company will pursue a policy which supports an increase in female managers. Data Ethics The company has not formulated a policy for data ethics yet. The company intends to adopt the Vattenfall Group policy on data ethics when this has been finalized. The company does not make use of algorithms for customer data and use of customer data is not an integrated part of the business in the company, since the company is not operating in the end-customer segment. -14528000 -13223000 23589000 19756000 12263000 3964000 22340000 60294000 193981000 159342000 311721000 151946000 398572000 309481000 28519000 48315000 418087000 101086000 3331202000 1281571000 51162000 37114000 630000 0 77201000 69093000 10912000 8035000 3712968000 1342643000 487886000 172128000 0.0 0.0 0.0 0.0 14626000 15892000 318412000 271509000 2540000 3397000 14007000 30147000 349585000 320945000 11553751000 8294708000 1800000000 4500000000 13353751000 12794708000 13703336000 13115653000 15366000 14296000 15366000 14296000 9383000 4564000 4204920000 1464954000 22018000 33786000 38560000 0 24373000 9841000 4299254000 1513145000 4064000 4050000 4318684000 1531491000 150000000 150000000 2670890000 411847000 6028783000 5062744000 328053000 271114000 328053000 271114000 3300000000 8300000000 3300000000 8300000000 5000000000 5836000 90751000 69094000 0 39122000 175877000 124080000 164216000 89318000 113450000 123989000 5544294000 451439000 8844294000 8751439000 18022020000 14647144000 150000000 411847000 5062744000 0 2259043000 966039000 150000000 2670890000 6028783000 The share capital comprises 150,000 shares of nominal value of DKK 1,000 each. All shares rank equally. No changes have been made to the share capital for the past 5 years. Accounting policies The annual report of Vattenfall Vindkraft A/S for 2022 has been presented in accordance with the provisions of the Danish Financial Statements Act as regards large reporting class C enterprises. Basis of recognition and measurement Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the Company and the value of the asset can be reliably measured. Liabilities are recognised in the balance sheet when, as a result of past events, the Company has a legal or a constructive obligation, when an outflow of economic benefits is probable and when the value of the liability can be reliably measured. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described below for each individual item. In recognising and measuring assets and liabilities, any predictable losses and risks occurring prior to the presentation of the annual report that evidence conditions existing at the balance sheet date are taken into account. Income is recognised in the income statement as earned while costs are recognised at the amounts relating to the financial year. Value adjustments of financial assets and liabilities are recognised in the income statement as financial income or financial expenses. Reporting currency The financial statements are presented in Danish kroner (DKK’000). Foreign currency translation On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. Intra-group business combinations The pooling-of-interest method is applied to intra-group acquisitions and sales of investments in subsidiaries. This implies that investments are considered having been acquired, respectively sold, at the first day of the financial year and that any differences between the acquisition cost, respectively the selling price, and the net asset value of the investments are taken directly to equity at the beginning of the year. Comparative figures are restated accordingly. Public grants Government grants include grants for environmentally friendly electricity production, grants for and funding for R&D activities, investment grants, etc. Government grants are recognised when there is reasonable assurance that the grants will be received. Grants for electricity production are recognised in revenue as the related revenue from the electricity production is recognised. Income statement Revenue Income from the sale of electricity, heating and other related services is recognised in revenue at the time of delivery and when the risk passes to the buyer, provided that the income can be made up reliably. Revenue is measured net of VAT and other indirect taxes and discounts/rebates granted. Income from the sale advisory services is recognised in revenue as the service is provided. Realised and unrealised gains and losses on commodity-based derivative financial instruments are included in the revenue. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. Cost of sales Cost of sales comprise costs incurred in generating revenue for the year. Such costs include direct and indirect costs related to purchase of electricity. Other operating expenses Other operating expense comprises items secondary to the entities’ activities, including loss on disposal of intangible assets and items of property, plant and equipment. Other operating income Other operating income comprises items secondary to the entities’ activities, including gains on disposal of intangible assets and items of property, plant and equipment. Other external costs Other external costs include expenses related to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs Staff costs include wages and salaries, including compensated absence and pensions, as well as other social security contributions, etc. made to the entity’s employees. The item is net of refunds made by public authorities. Amortisation/depreciation and impairment of intangible assets and property, plant and equipment The item comprises amortisation/depreciation and impairment of intangible assets and property, plant and equipment. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation, which is calculated as cost less any residual value, is depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Buildings 15-25 years Plant and machinery 10-25 years Fixtures and fittings, tools and equipment 5 years Intangible assets 10-30 years The basis of depreciation is based on the residual value of the asset and is reduced by impairment losses, if any. The residual value is determined at the time of acquisition. Where the residual value exceeds the carrying amount of the sub-components, no further depreciation charges are recognised. The depreciation period and the residual value are reassessed every year. Income from investments in group entities and associates The proportionate share of the profit/loss after tax of the individual subsidiaries is recognised in the income statement after full elimination of intra-group profits/losses. Financial income and financial expenses Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Financial income and expenses comprise interest income and expense, realised and unrealised gains and losses on transactions denominated in foreign currencies, surcharges and refunds under the tax prepayment scheme as well as amortization of future costs for dismantling and restoration of production plant etc. Tax Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The Company and its Danish group entities are jointly taxed. The Danish income tax charge is allocated between profit making and loss making Danish entities in proportion to their taxable income. Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Balance sheet Intangible assets User rights are measured at cost less accumulated amortisation and impairment losses. The carrying amount is written down to the recoverable amount if this is lower. User rights are amortised over the term of the rights. Amortisation and impairment losses on intangible assets are recognised in the income statement. Property, plant and equipment Property, plant and equipment, including land and buildings, leasehold improvements, production plant and non-current assets, are measured at cost less accumulated amortisation and impairment losses. The estimated costs for dismantling and removing as well as restoring the asset are added to the cost of property, plant and equipment if such costs are recognised as a provision. The cost of self-constructed assets comprises direct and indirect costs of materials, components, sub-suppliers and wages. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. Property, plant and equipment in the course of construction are recognised as property, plant and equipment in the course of construction in the balance sheet until the application date. After the application date, these assets are transferred to the relevant financial statement items under property, plant and equipment. Subsequent costs, e.g. in connection with replacement of components of property, plant and equipment, are recognised in the carrying amount of the asset if it is probable that the costs will result in future economic benefits for the Company. The replaced components are derecognised in the balance sheet, and their carrying amount is transferred to profit or loss for the year. All other costs incurred for repair and maintenance are recognised in profit or loss as incurred. Impairment tests are conducted of property, plant and equipment if there are indications of impairment losses. The impairment test is conducted of each individual asset or group of assets, respectively. The assets are written down to the higher of the value in use and net realisable value (recoverable amount) of the asset or group of assets if this is lower than the carrying amount. Previously recognised impairment losses are reversed when the reason for recognition no longer exists. Investments in group entities On initial recognition, equity investments in group entities are measured at cost. Investments in group entities are measured, using the equity method, at the companies’ proportionate share of such enterprises’ equity plus goodwill and less intra-group profits. Investment in enterprises with negative net asset values are measured at DKK 0 (nil), and any receivables from such associates are written down by the parent company's share of the negative net asset values. If the negative equity value exceeds the receivable, the balance is recognised under provisions to the extent the parent company has a legal or constructive obligation to cover a deficit in the enterprise. Equity investments in subsidiaries are measured at net asset value and are subject to impairment test requirements if there is any indication of impairment. Net revaluations of investments in subsidiaries are taken to the net revaluation reserve according to the equity method to the extent the carrying amount exceeds the costs. Impairment of non-current assets The carrying amount of non-current assets is tested annually for indications of impairment. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. Assets are written down to the lower of the carrying amount and the recoverable amount. The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the net present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognized impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. Inventories Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs. The cost of finished goods and work in progress includes the cost of raw materials, consumables, direct labour and production overheads. Indirect production overheads include the indirect cost of material and labour as well as maintenance and depreciation of production machinery, buildings and equipment and expenses relating to plant administration and management. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price. Receivables Receivables are measured at amortised cost, which is usually equivalent to the nominal value. Impairment is made of the value for anticipated bad debt losses. Accrued income, etc. is recognised under other receivables. Other receivables is measured at amortised costs, which is in general equal to the nominal value. Prepayments Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Cash and cash equivalents Given the nature of the Group’s cash pool arrangement, cash pool balances are not considered cash, but are recognised under “Receivables from group entities”. Equity – reserve for net revaluation according to equity method The net revaluation reserve according to the equity method includes net revaluations of investments in subsidiaries and associated relative to cost. The reserve can be eliminated in case of losses, realisation of investments or a change in accounting estimates. The reserve cannot be recognised at a negative amount. Provisions Provisions comprise expected future costs for dismantling and restoration of production plant, etc. as well as contracts entered into regarding future delivery of goods. Provisions are recognised when the enterprise has a legal or a constructive obligation and it is probable that there may be an outflow of resources embodying economic benefits to settle the obligation. Provisions that are expected to be repaid later than one year after the balance sheet date are measured at the present value of the expected payments. Other provisions are measured at net realisable value. The value of provisions related to dismantling and restoration of production plant is recognised in property, plant and equipment and depreciated together with the relevant assets. The increase of the present value due to the passage of time is recognised in the income statement as financial expenses. Corporation tax Current tax payable and receivable is recognised in the balance sheet as tax computed on the expected taxable income for the year, adjusted for tax on the taxable income of prior years and for prepaid tax. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. Liabilities Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. Segment information Information is provided on business segments. Segment information is based on the Company's accounting policies, risks and internal financial management. Assets in the segment comprises the assets that are used directly in the revenue-generating activity of the segment. Segment liabilities comprise liabilities resulting from the activities of the segment, including trade and other payables. Financial ratios Financial ratios are calculated in accordance with the Danish Finance Society's guidelines on the calculation of financial ratios "Recommendations and Financial Ratios 2015". The financial ratios stated under "Financial highlights" have been calculated as follows: Operating profit x 100 Operating margin Revenue Gross margin x 100 Gross margin ratio Revenue Profit/loss from operating activities Return on assets Average assets x 100 Equity at year end x 100 Solvency ratio Total equity and liabilities at year end Profit/loss for the year after tax x 100 Return on equity Average equity true Omission of a cash flow statement With reference to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The entity’s cash flows are part of the consolidated cash flow statement for the parent company, Vattenfall AB. Consolidated financial statements Referring to section 112(1) of the Danish Financial Statements Act, no consolidated financial statements are prepared. The financial statements for Vattenfall Vindkraft A/S and its group entities are part of the consolidated financial statements for Vattenfall AB. 2 Recognition and measurement uncertainties The computation of the carrying amount of certain assets and liabilities requires assessments, estimates and assumptions regarding future events. The estimates used are based on historical experience and other factors which by Management are assessed to be reliable, but which by nature are associated with uncertainty. The assumptions may be incomplete or incorrect, and unexpected events or circumstances may arise. 3 Revenue The Company provides electricity production to the Danish market. In addition, the Company renders goods and services to existing Vattenfall windpower projects in other European countries. Revenue is distributed in the following segments: DKK'000 2022 2021 Sale of electricity, etc. 659,926 301,726 Engineering services, etc. 671,816 405,581 Total revenue 1,331,742 707,307 The geographic segments of ”other services” are Denmark 73%, Great Britain 13% and Rest-of-Europe 14% in 2022. The comparable figures for 2021 were respectively Denmark 32%, Netherlands 28%, Netherlands 13% and Rest-of-Europe 14%. 4 Staff costs Staff costs are recognised as follows: DKK'000 2022 2021 Wages and salaries 341,537 273,665 Pensions 33,448 26,739 Other social security costs 3,807 3,267 Other personal expenses 19,780 5,810 Total Staff costs 398,572 309,481 The board of directors and executive board do not receive remuneration for their duties as board members or director. Therefore, the remuneration for the board and management in 2022 amounts to DKK 0 (2021: DKK 0). 5 Tax on the profit/loss for the year DKK'000 2022 2021 Current tax for the year 432,649 39,122 Adjustment of deferred tax 61,200 133,182 Adjustment regarding prior year -19,660 -176 Adjustment regarding prior year deferred tax 13,697 0 Total Tax on the profit/loss for the year 487,886 172,128 6 Intangible assets Acquired intangible DKK’000 assets Cost at 1 January 12,200 Disposal -12,200 Cost at 31 December 0 Impairment losses and depreciation at 1 January 12,200 Depreciations 0 Impairments 0 Reversed deprecation -12,200 Impairment losses and depreciation at 31 December 0 Carrying amount at 31 December 2021 0 7 Property, plant and equipment Property, plant and Plant and Other plant and equipment under DKK’000 Land and buildings machinery equipment construction Total Cost at 1 January 31,406 1,501,672 13,775 109,411 1,656,264 Additions 0 48.501 0 23,589 72,090 Disposals 0 -21.657 0 -81,730 -103,387 Transferred* 0 35.213 0 -35,213 0 Cost at 31 December 31,406 1,563,729 13,775 16,057 1,624,967 Impairment losses and depreciation at 1 January 15,514 1,230,163 10,378 79,264 1,335,319 Depreciation 1,266 81,210 857 0 83,333 Reversed depreciation and impairment concerning disposals -66,056 0 -76,214 -142,270 Other reversals 0 0 0 -1,000 -1,000 Impairment losses and depreciation at 31 December 16,780 1,245,317 11,235 2,050 1,275,382 Carrying amount at 31 December 14,626 318,412 2,540 14,007 349,585 Depreciation is based on the residual value of the asset and is reduced by impairment losses, if any. The depreciation period and the residual value are determined at the acquisition date and are reassessed annually. Where the residual value exceeds the carrying amount of the asset, no further depreciation charges are recognised. Impairment test Management has not identifies indications of impairment in 2022. 8 Investments Investment in Receivables from DKK’000 group entities group entities Total Cost at 1 January 2022 7,882,861 4,500,000 12,382,861 Additions 1,000,000 0 1,000,000 Disposals 0 -2,700,000 -2,700,000 Cost at 31 December 2022 8,882,861 1,800,000 10,682,861 Value at 1 January 2022 411,847 0 411,847 Dividend received -1,072,159 0 -1,072,159 Profit/ loss for the year 3,331,202 0 3,331,202 Impairment 0 0 Equity adjustments 0 0 Value adjustments at 31 December 2022 2,670,890 0 2,670,890 Carrying amount at 31 December 2022 11,553,751 1,800,000 13,353,751 Interest Result Equity Name and domicile DKK’000 DKK’000 Group Entities Vattenfall Vindkraft Bajlum P/S, Skive 87,49 % 41,391 110,491 Vattenfall Vindkraft Nørrekær Enge A/S, Esbjerg 100,00 % 83,005 193,136 Vattenfall Vindkraft Nørrekær Enge I P/S, Esbjerg 98,60 % 107,611 197,224 Vattenfall Vindkraft Ejsing P/S, Esbjerg 96,86 % 22,963 51,836 Vattenfall Vindkraft Klim P/S, Esbjerg 98,15 % 218,358 634,779 Vattenfall Vindkraft Horns Rev 3 P/S, Esbjerg 100,00 % 1,588,729 4,803,433 Vattenfall Vindkraft Komplementar ApS, Kolding 100,00 % 9 59 Vattenfall Vindkraft Kriegers Flak Holding A/S, Esbjerg 100,00 % 1,399,536 4,415,909 Vattenfall Vindkraft Kriegers Flak P/S, Esbjerg 100,00 % 1,768,444 4,901,609 Vattenfall Vindkraft Vesterhav Nord Holding A/S, Esbjerg 100,00 % -6,446 682,393 Vattenfall Vindkraft Vesterhav Nord P/S, Esbjerg 100,00 % -8,235 660,424 Vattenfall Vindkraft Vesterhav Syd Holding A/S, Esbjerg 100,00 % -6,170 685,901 Vattenfall Vindkraft Vesterhav Syd P/S, Esbjerg100,00 %-7,880664,925Vattenfall Vindkraft Thor Komplementar ApS 100,00 % -24 16 Vattenfall Vindkraft Thor Holding 1 A/S, Kolding 100,00 % -29 371 Vattenfall Vindkraft Thor Holding 2 A/S, Kolding 100,00 % -29 371 Vattenfall Vindkraft Thor Holding 3 A/S, Kolding 100,00 % -27 373 Vattenfall Vindkraft Thor Holding 4 A/S, Kolding 100,00 % -26 374 Vattenfall Vindkraft Thor Holding 5 A/S, Kolding 100,00 % -26 374 Vattenfall Vindkraft Thor Holding 6 A/S, Kolding 100,00 % -26 374 Vattenfall Vindkraft Thor Holding 7 A/S, Kolding 100,00 % -25 375 Vattenfall Vindkraft Thor Holding 8 A/S, Kolding 100,00 % -24 376 Vattenfall Vindkraft Thor P/S, Kolding 100,00 % -30 370 The above numbers are based on the individual companies’ financial statements for 2022. The calculation of the recoverable amount is based on the equity value of the subsidiaries, which is determined based on expected future net cash flows, on the basis of budgets from the subsidiaries’ business plans for the years 2023-2027 as well as forecast for subsequent years. The net cash position at 31 December 2022 in the subsidiaries has been added to arrive at the equity value. The calculation of the equity value is based on Management’s assessment of the discount factor, inflation, the useful life of the windfarms in the subsidiaries as well as the recognised tax effect of the expected future cash flows from the subsidiary companies, which are transparent for tax purposes. Based on expected selling prices of produced energy in the subsidiaries, Management has assessed that there are no indications of a change in the expected future cash flows from the subsidiaries, which may lead to the need for impairment write-down of the investment in the subsidiaries. 14 Joint operations Investments in joint operations are consolidated on a pro rata basis in the consolidated financial statements, implying that the items are recognised in proportion to the Company's share of the joint operations' profit/loss and equity: Horns Rev 1, Esbjerg, Denmark, 60 % ownership interest. Through pro rata consolidation Vattenfall Vindkraft A/S recognises:Revenue: (60% of DKK 739,193 thousand) DKK 443,516 thousand. Profit/loss for the year (excl. depreciations): (60% of DKK 645,949 thousand) DKK 387,569 thousand. All non-current assets and liabilities are fully integrated in the financial accounts on owner-level. 9 Receivables/payables from group entities Included in receivables from group entities is a group cash-pool payable of DKK 82,726 thousand as 31 December 2021 (2020: cash-pool payable of DKK 9,816 thousand). 10 Deferred tax DKK'000 2022 2021 Deferred tax is related to: Property, plant and equipment -412,706-323,525Intangible assets 67,144101,877Provisions 146,243128,748Prepayments 35,1033,582 -164,216-89,318Deferred tax is recognized in the balance sheet as follows: Deferred tax asset 0 0 Deferred tax liability -164,216-89,318-164,216-89,318 11 Prepayments Prepayments include accrual of expenses relating to subsequent financial years, including rent, insurance policies, subscriptions and interests. 12 Provisions Provisions comprise expected future costs for dismantling and restoring the production sites. Based on Management’s expectations of the liabilities’ date of payment, the liabilities are recognized as long-term liabilities. 13 Non-current liabilities All non-current liabilities are due within 1-5 years 15 Contractual obligations and contingencies, etc. Together with the other participants, the Company is jointly liable for Horns Rev I Wind farm’s liabilities. After the segregation of the wind segment in 2008 from Vattenfall A/S to Vattenfall Vindkraft A/S, Vattenfall Vindkraft A/S is jointly liable with Vattenfall A/S for the total liabilities, which existed as of 1 January 2008. The Company is jointly taxed with other Danish group entities and is jointly liable with other jointly taxed group entities for payment of income taxes as well as withholding taxes on interest, royalties and dividends falling due for payment on or after 1 July 2012. Other financial liabilities Liabilities under operating leases concern cars totalling DKK 1,469 thousand as of 31 December 2022 (DKK 1,829 thousand in 2021). Rent obligations relating to the contract of the renting of land, which is non-terminable for 12 years, represents DKK 14,002 thousand as of 31 December 2022 (DKK 14,498 thousand in 2021). Rent obligations relating to the contract of the renting of buildings represents DKK 40,240 thousand as of 31 December 2022 (DKK 26,164 thousand in 2021). In addition, through group entities, Vattenfall Vindkraft A/S has long-term (20-30 years) tenancy agreements with plot owners. The company is general partner in Vattenfall Vindkraft Bajlum P/S and Vattenfall Vindkraft Nørrekær Enge P/S and are liable unlimited and directly for the partnership companies obligation. 16 Related parties Parties exercising control Related party Domicile Share holding Vattenfall AB 16287 Stockholm, Sweden Parent Information about consolidated financial statements Requisitioning of the parent company's consolidated Parent Domicile financial statements _ Vattenfall AB 16287 Stockholm, Sweden www.vattenfall.com Ownership The following shareholders are registered in the Company's register of shareholders as holding minimum 5% of the votes or minimum 5% of the share capital: NameDomicileVattenfall Vindkraft AB 16287 Stockholm, Sweden Transactions with related parties According to section 98 (7) of the Danish Financial Statements Act, all transactions between the Company and its related parties are carried out on market terms. 17 Fee to the auditors appointed by the Company in general meeting Audit fees are not disclosed with reference to section 96(3) of the Danish Financial Statements Act. The fee is specified in the consolidated financial statements for Vattenfall AB. Financial statements for the period 1 January – 31 December 2259043000 292671000 966039000 877844000 Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2022-01-01 2022-12-31 2021-01-01 2021-12-31 2023-06-07 Regnskabsklasse C, stor virksomhed 31597544 2008-07-03 2023-06-07 33771231 Strandvejen 44 2900 Hellerup Opinion Basis for Opinion 2023-06-07 mne26745 33771231 mne32174