27373968 2025-02-01 2026-01-31 27373968 2025-02-01 2026-01-31 1 27373968 2025-02-01 2026-01-31 1 27373968 2025-02-01 2026-01-31 1 27373968 2025-02-01 2026-01-31 2 27373968 2025-02-01 2026-01-31 3 27373968 2023-02-01 2024-01-31 27373968 2022-02-01 2023-01-31 27373968 2021-02-01 2022-01-31 27373968 2024-01-31 27373968 2023-01-31 27373968 2022-01-31 27373968 2024-02-01 2025-01-31 27373968 2025-02-01 2026-01-31 12 27373968 2024-02-01 2025-01-31 12 27373968 2023-02-01 2024-01-31 12 27373968 2022-02-01 2023-01-31 12 27373968 2021-02-01 2022-01-31 12 27373968 2026-01-31 27373968 2025-01-31 27373968 2024-02-01 d:ContributedCapitalMember 27373968 2024-02-01 d:RetainedEarningsMember 27373968 2024-02-01 2025-01-31 d:RetainedEarningsMember 27373968 2025-01-31 d:ContributedCapitalMember 27373968 2025-01-31 d:RetainedEarningsMember 27373968 2025-02-01 2026-01-31 d:RetainedEarningsMember 27373968 2026-01-31 d:ContributedCapitalMember 27373968 2026-01-31 d:RetainedEarningsMember 27373968 2025-02-01 27373968 2024-02-01 27373968 2025-02-01 d:LandAndBuildingsMember 27373968 2025-02-01 d:LeaseholdImprovementsMember 27373968 2025-02-01 d:FixturesFittingsToolsAndEquipmentMember 27373968 2025-02-01 2026-01-31 d:LeaseholdImprovementsMember 27373968 2025-02-01 2026-01-31 d:FixturesFittingsToolsAndEquipmentMember 27373968 2026-01-31 d:LandAndBuildingsMember 27373968 2026-01-31 d:LeaseholdImprovementsMember 27373968 2026-01-31 d:FixturesFittingsToolsAndEquipmentMember 27373968 2025-02-01 2026-01-31 d:LandAndBuildingsMember 27373968 2026-01-31 d:LandAndBuildingsMember d:LeasedAssetsMember 27373968 2026-01-31 d:LeaseholdImprovementsMember d:LeasedAssetsMember 27373968 2026-01-31 d:FixturesFittingsToolsAndEquipmentMember d:LeasedAssetsMember 27373968 2025-02-01 d:DepositsLongtermInvestmentsAndReceivablesMember 27373968 2025-02-01 2026-01-31 d:DepositsLongtermInvestmentsAndReceivablesMember 27373968 2026-01-31 d:DepositsLongtermInvestmentsAndReceivablesMember iso4217:USD xbrli:pure Årsrapport Regnskabsklasse C, mellemstor virksomhed NVIDIA Denmark ApS Revisionspåtegning Beierholm Langagervej 1 Nadav Sadan true 9220 Aalborg Ø Beierholm 2026-07-28 Opinion Basis for Opinion 2026-07-28 2026-01-31 2024-02-01 2025-01-31 2025-02-01 27373968 Ledreborg Allé 130 B 4000 Danmark Roskilde Roskilde 32895468 Roskilde Himmelev Bygade 70 4000 We have on this day presented the annual report for the financial year 01.02.25 - 31.01.26 for NVIDIA Denmark ApS. The annual report is presented in accordance with the Danish Finan­cial Sta­te­ments Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position as at 31.01.26 and of the results of the Company's activities and cash flows for the financial year 01.02.25 - 31.01.26. We believe that the management's review includes a fair review of the matters dealt with in the management's review. The annual report is submitted for adoption by the general meeting. Nadav Sadan Managing Director Nadav Sadan Chairman Ofer Perets Gideon Rosenberg To the Shareholder of NVIDIA Denmark ApS In our opinion the fi­nan­cial sta­te­ments give a true and fair view of the Company's finan­cial posi­tion at 31.01.26 and of the results of the Company's ope­ra­tions and cash flows for the finan­cial year 01.02.25 - 31.01.26 in ac­cor­dan­ce with the Danish Finan­cial Sta­te­ments Act. 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. Management is responsible for the mana­ge­ment’s review.Our opinion on the fi­nan­cial sta­te­ments does not cover the management’s review, and we do not express any form of assurance con­clu­sion thereon. In connection with our audit of the fi­nan­cial sta­te­ments, it is 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, we conclude that the management’s review is in accordance with the fi­nan­cial sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the management’s review. Management is responsible for the pre­pa­ra­tion of fi­nan­cial sta­te­ments that give a true and fair view in ac­cor­dance with the Danish Finan­cial Sta­te­ments Act and for such in­ter­nal control as Mana­gement de­ter­mi­nes is necessary to enable the pre­pa­ra­tion of fi­nan­cial sta­te­ments that are free from material misstatement, whether due to fraud or error.In preparing the fi­nan­cial sta­te­ments, mana­ge­ment is responsible for assessing the Company's ability to continue as a going concern, dis­closing, as applicable, mat­ters related to going con­cern and using the going concern basis of ac­counting in pre­paring the fi­nan­cial sta­te­ments unless mana­ge­ment either intends to liquidate the Company or to cease operations, or has no rea­listic alternative but to do so. Our objectives are to obtain reasonable as­surance about whether the fi­nan­cial sta­te­ments as a whole are free from material mis­statement, whether due to fraud or error, and to issue an auditor’s report that inclu­des our opinion. Reasonable assurance is a high level of assurance, but is not a gua­ran­tee that an audit conducted in accor­dance with ISAs and the additional requirements applic­able in Denmark will always detect a material misstatement when it exists. Mis­sta­te­ments can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be ex­pec­ted to influence the economic decisions of users taken on the basis of these fi­nan­cial sta­te­ments.As part of an audit conducted in accordance with ISAs and the additional requirements applic­able in Denmark, we exercise pro­fes­sional judgment and maintain professional scepticism through­out the audit. We also: Identify and assess the risks of material misstatement of the fi­nan­cial sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and ap­pro­priate to provide a basis for our opinion. The risk of not detecting a mate­rial misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, mis­repre­sen­tations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro­priate in the cir­cum­stances, but not for the purpose of expres­sing an opinion on the effectiveness of the Company's inter­nal control.Evaluate the appropriateness of accoun­ting policies used and the reason­able­ness of accounting estimates and related disclosures made by management.Conclude on the appropriateness of manage­ment’s use of the going concern basis of accoun­ting in preparing the fi­nan­cial sta­te­ments and, based on the audit evidence obtained, whether a mate­rial uncertainty exists related to events or conditions that may cast signi­ficant doubt on the Company's ability to con­tinue as a going concern. If we con­clude that a material uncertainty exists, we are required to draw attention in our audi­tor’s report to the related disclosures in the fi­nan­cial sta­te­ments or, if such dis­closures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the fi­nan­cial sta­te­ments, including the disclosures, and whether the fi­nan­cial sta­te­ments repre­sent the underlying transactions and events in a manner that gives a true and fair view.We communicate with those charged with gover­nance regarding, among other mat­ters, the planned scope and timing of the audit and significant audit findings, inclu­ding any significant deficiencies in internal control that we identify during our audit. Roskilde Birgit Sode State Authorised Public Accountant mne28909 26290000 40218000 13302000 2551000 18663000 -16267000 193000 -33000 -86000 1783000 14219000 -3250000 42253000 31833000 27331000 2895000 6537000 1075000 769000 697000 9805000 15022000 -803000 Return on equity 17 28 14 200 0 11 16 23 47 0 Ratios definitionsReturn on equity:Profit/loss for the year x 100Average equitySolvency ratio:Equity, end of year x 100Total assets Primary activitiesStarting February 1st, 2022, the company provides research and development services of integrated microelectronics to Mellanox Technologies Ltd (“MTL”), its indirect parent company which is used in fibre-optic interconnect in computers and network systems.In addition, the company is receiving royalties from granting Mellanox Technologies Ltd a non-exclusive, sublicensable license to reproduce, manufacture, distribute, and use all its intangible rights and products for the purpose of MTL´s business activity in each territory. Uncertainty concerning recognition and measurementIn the financial statements for the financial year 01.02.25 - 31.01.26, it is important to note the following uncertainty with regard to recognition and measurement, as it has had a significant influence on the assets and liabilities recognised in the financial statements:The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:The Company’s employees are granted stock awards by the ultimate parent Company, Nvidia Corporation. The fair value of the employee services received in exchange for the grant of awards is recognized as an expense in the income statement and corresponding credit is recognized in capital contribution reserve as a component of equity. The total amount to be expensed over the vesting period is determined by reference to the fair value of the awards granted, excluding the impact of any non-market vesting conditions. Non-market vesting conditions are included in assumptions about the number of awards that are expected to vest. At each balance sheet date, the Company revises its estimates of the number of awards that are expected to vest. Fair value of shares to be issued under stock awards is determined using the Black-Scholes model at commencement of each offering period. Development in activities and financial affairsThe income statement for the period 01.02.25 - 31.01.26 shows a profit of USD 2,745,211 against USD 3,255,594 for the period 01.02.24 - 31.01.25. The balance sheet shows equity of USD 15,806,007. OutlookThe Company expects a profit before tax in the region of USD 3-4 M for the coming year. 35542127 30816136 29211268 26744788 2976207 1064609 3354652 3006739 365282 317905 974723 69050 2745211 3255594 0 0 2745211 3255594 1051603 1473294 857015 1303284 7235477 6447994 9144095 9224572 57469 49897 57469 49897 9201564 9274469 121334523 67943415 1231147 897135 894400 1497499 72046 65271 123532116 70403320 10452520 3804050 133984636 74207370 143186200 83481839 260226 260226 15545781 12800570 15806007 13060796 655226 1024785 655226 1024785 352704 426412 85951 734525 123167286 65263036 3119026 2972285 126724967 69396258 127380193 70421043 143186200 83481839 Figures in USDShare capitalRetained earningsTotal equityStatement of changes in equity for 01.02.24 - 31.01.25Balance as at 01.02.24260,2264,851,9665,112,192Net effect of correction of material errors04,693,0104,693,010Adjusted balance as at 01.02.24260,2269,544,9769,805,202Share based payment013,271,41213,271,412Distributed to ultimate parent company0-13,271,412-13,271,412Net profit/loss for the year03,255,5943,255,594Balance as at 31.01.25260,22612,800,57013,060,796Statement of changes in equity for 01.02.25 - 31.01.26Balance as at 01.02.25260,22612,800,57013,060,796Share based payment012,608,81512,608,815Distributed to ultimate parent company0-12,608,815-12,608,815Net profit/loss for the year02,745,2112,745,211Balance as at 31.01.26260,22615,545,78115,806,007 260226 4851966 4693010 13271412 -13271412 3255594 260226 12800570 12608815 -12608815 2745211 260226 15545781 3588989 815754 -52783921 -44894534 -648574 604300 58050991 50150843 10952696 9931957 365282 317905 -974723 -69050 -359609 -651671 9983646 9529141 -2891909 -8804012 -2891909 -8804012 -443267 -341797 -443267 -341797 6648470 383332 3804050 3420718 10452520 3804050 10452520 3804050 1.Uncertainty concerning recognition and measurementIn the financial statements for the financial year 01.02.25 - 31.01.26, it is important to note the following uncertainty with regard to recognition and measurement, as it has had a significant influence on the assets and liabilities recognised in the financial statements. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:The Company’s employees are granted stock awards by the ultimate parent Company, Nvidia Corporation. The fair value of the employee services received in exchange for the grant of awards is recognized as an expense in the income statement and corresponding credit is recognized in capital contribution reserve as a component of equity. The total amount to be expensed over the vesting period is determined by reference to the fair value of the awards granted, excluding the impact of any non-market vesting conditions. Non-market vesting conditions are included in assumptions about the number of awards that are expected to vest. At each balance sheet date, the Company revises its estimates of the number of awards that are expected to vest. Fair value of shares to be issued under stock awards is determined using the Black-Scholes model at commencement of each offering period. 2.Subsequent eventsNo material events have occurred after the end of the financial year. 13433264 11397931 2533700 1803647 13244304 13543210 104 92 Remuneration for the management:Remuneration for the Executive Board and Board of Directors20,51522,969 20515 22969 With reference to section 98b(3) no. 1 of the Dan­ish Fi­nan­cial Statements Act, re­mune­ration for the Executive Board and Board of Di­rectors are sum­marized for 2025/26 and 2024/25, as infor­ma­tion would other­wise lead to a­mounts be­ing shown for a single mem­ber of man­age­ment.Members of the company’s Board of Directors are also full-time employees of either the company or an affiliated entity within the NVIDIA group and accordingly are remunerated with cash salaries from their respective local NVIDIA employing entity for their service as NVIDIA employees. Additionally, the Directors may receive from the NVIDIA group parent entity, NVIDIA Corporation, restricted stock units (“RSUs”) and the right to participate in Employees Stock Purchase Plan ("ESPP") for NVIDIA Corporation common stock. The values above represent the estimated number of hours each Director devotes to activities for the company’s Board in the fiscal year, divided by estimated total working hours in the fiscal year, multiplied by the sum of that Director’s cash salary for the fiscal year and the share-based compensation expense for all RSUs and ESPP's that were expensed for that Director during the fiscal year. 2745211 3255594 5.Property, plant and equipmentFigures in USDLand and buildingsLeasehold improvementsOther fixtures and fittings, tools and equipmentCost as at 01.02.252,000,3992,885,7479,582,895Additions during the year0231,5542,663,696Disposals during the year0-837,959-174,051Cost as at 31.01.262,000,3992,279,34212,072,540Depreciation and impairment losses as at 01.02.25-523,944-1,582,464-3,134,903Depreciation during the year-424,852-677,822-1,872,870Reversal of depreciation of and impairment losses on disposed assets0837,959170,710Depreciation and impairment losses as at 31.01.26-948,796-1,422,327-4,837,063Carrying amount as at 31.01.261,051,603857,0157,235,477Carrying amount of assets held under leases as at 31.01.261,051,60300 2000399 2885747 9582895 231554 2663696 -837959 -174051 2000399 2279342 12072540 -523944 -1582464 -3134903 -424852 -677822 -1872870 837959 170710 -948796 -1422327 -4837063 1051603 857015 7235477 1051603 0 0 49898 7571 57469 57469 31.01.2631.01.25USDUSD7.PrepaymentsPrepaid rent72,04665,271 9.Related partiesRelated party transactions are not disclosed, as all transactions are entered into in the ordinary course of business at arms’ length.Remuneration for the management is specified in note 3, Staff costs.The Company is included in the consolidated finan­cial statements of the ultimate parent company Nvidia Corporation, United States. 2976207 1064609 -365282 -317905 974723 69050 The annual report is presen­ted in ac­cord­ance with the provisions of the Danish Fi­nan­cial Statements Act (Årsregn­skabs­lov­en) for medium-sized enterprises in re­port­ing class C. Change in accounting policiesThe Company has changed its accounting policies in the following areas:Recognition of leases in the balance sheetPreviously, the accounting treatment was based on an interpretation developed under IAS 17 Leases. Following a reassessment, management determined that application of the principles in IFRS 16 Leases provides a more appropriate basis for accounting for the Group's lease arrangements. IFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. Consequently, the accounting policy has been changed, and lease arrangements are now recognised and measured in accordance with IFRS 16 whereby the company has capitalized its right-of-use assets. Upon implementation, the company has recognized a liability to make lease payments (i.e. the lease liability) of USD 1,008 thousand and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset) of USD 1,051 thousand. The change has been applied retrospectively, and comparative information has been restated accordingly. The change in accounting policy has a net impact of USD 22 thousand on the net profit for the financial year 01.02.25 - 31.01.26. As at 31.01.26, equity is unchanged and the balance sheet total is increased by USD 1,051 thousand.Revenue recognitionThe Company determined that application of IFRS 15 Revenue from Contracts with Customers provides a more appropriate basis for recognising revenue from customer contracts. Consequently, the accounting policy for revenue recognition has been changed and is now based on the principles and requirements of IFRS 15. The change has been applied retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The change in accounting policy has no impact on the net profit for the year, equity or balance sheet total.Comparative figures for 2024/25 have been restated in accordance with the new ac­counting policies in the income statement, balance sheet, cash flow statement and notes. The accumulated effect of the change in accounting policies at the beginning of the financial year have been recognised in equity. The tax effect of the change has also been recognised directly in equity.The total changes in accounting policies have a net impact on the profit before tax of USD 22 thousand and no impact on the tax for the year for the financial year 01.02.25 - 31.01.26. As at 31.01.26, equity is unchanged and the balance sheet total is increased by USD 1,051 thousand.Except for the areas mentioned above, the accounting policies have been applied consist­ently with the previous year. Material errorThe Company has for the years 2020/21 to 2024/25 identified a material error in the methodology previously applied for the recognition and measurement of expenses related to share-based payment arrangements granted to employees of the Company, as well as the related compensation to the parent company in respect of the issuance of the underlying equity instruments.Previously, the related expense was incorrectly recognised at the time of the legal vest of the share-based payment arrangements.This has been corrected such that, in accordance with IFRS 2 Share-based Payment, the arrangements are classified as equity-settled share-based payment transactions. The expense is measured based on the grant date fair value of the equity instruments granted and is recognised in profit or loss, with a corresponding increase in equity, in accordance with IFRS 2.Any compensation payable to the parent company in respect of the issuance of shares is accounted for as a separate transaction in equity, reflecting a distribution to the parent company, and does not impact profit or loss.The error has been corrected retrospectively. Comparative figures have been restated accordingly, including the restatement of all affected line items for each prior period presented. The cumulative effect of the correction at the beginning of the earliest period presented has been recognised in equity.The correction has consequential effects on the recognition and measurement of the compensation to the indirect parent company and other group companies, as well as on current and deferred income taxes. The correction of the error described above has resulted in changes to the recognition, measurement and classification of share-based payment expenses, equity and related balances.The restatement affects the income statement, statement of financial position and related tax balances. The impact of the restatement on the financial statements for prior periods is summarised as follows:For 2024/25 the gross profit was decreased from USD 87.3M to USD 30.8M, the staff costs were adjusted from USD 78.7M to USD29.2M, the operating profit from USD 7.9M to USD 3.0M, and the profit for the year from USD 6.4M to USD 3.3M. As per 31 January 2025 the payables to group enterprises were increased from USD 12M to USD 65.3M, the tax receivables were increased from USD 01.M to USD 0.9M, the receivables from group enterprises were increased from USD 14M to USD 68M, and the total assets were adjusted from USD 27.2M to USD 83.5M while the equity was adjusted from USD 11.5M to USD 13.1M. There is no impact on the Company’s cash flows.Comparative figures for 2024/25 have been restated in the income statement, balance sheet, cash flow statement and notes. The accumulated effect of materiel errors has been recognised directly in equity at the beginning of the comparative year. Basis of recognition and measurementIncome is recognised in the income state­ment as earned, including value adjust­ments of fin­an­cial assets and liabilities. All ex­penses, including depreciation, amortisa­tion, impair­ment losses and write-downs, are also recognised in the in­come state­ment.Assets are recognised in the balance sheet when it is probable that future economic bene­fits will flow to the Company, and the value of such assets can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the Company, and the value of such liabilities can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below.On recognition and measurement, account is taken of foreseeable losses and risks arising before the date at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date. CURRENCYThe annual report is presen­ted in USD. The exchange rate DKK to USD is 6,4429 as at 31.01.26 and 7,26 as at 31.01.25.On initial recognition, transactions den­ominated in foreign currencies are trans­lated using the exchange rates applicable at the transaction date. Exchange rate differences between the exchange rate applicable at the transaction date and the exchange rate at the date of payment are recognised in the income statement as a financial item. Receivables, payables and other monetary items denominated in foreign currencies are translated using the exchange rates applicable at the balance sheet date. The difference between the ex­change rate applicable at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest annual report is recognised under financial income or ex­penses in the income statement. Fixed assets and other non-monetary assets acquired in foreign currencies are translated using historical exchange rates. LEASESThe Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company’s incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.Lease payments included in the measurement of the lease liability comprise the following:fixed payments, including in-substance fixed payments;variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;amounts expected to be payable under a residual value guarantee; andthe exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the company's estimate of the amount expected to be payable under a residual value guarantee, or if the company changes its assessment of whether it will exercise a purchase, extension or termination option.When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. Gross profitGross profit comprises rev­enue and other operating income and other external ex­penses. RevenueThe Company provides services to its indirect Parent Company and to a group member company under an inter-company service agreement. In accordance with IFRS 15 Revenue from Contracts with Customers, revenue is recognised over time as the services are rendered, as the indirect Parent Company and the group member company simultaneously receives and consumes the benefits provided by the Company's performance. The transaction price is determined using a cost-plus methodology, whereby the Company is compensated for the costs incurred in providing the services together with an agreed arm's length mark-up. Other operating incomeOther operating income comprises income of a secondary nature in relation to the enterprise’s activities, including rental income, salary supplements and refunds, negative goodwill and gains on the sale of intangible assets and property, plant and equipment. Other external expensesOther external expenses also comprise research and development costs that do not qualify for capitalization , Staff costsStaff costs comprise wages and salaries as well as other staff-related costs.The Company participates in an equity-settled, share-based compensation plan and an employee stock purchase plan established by ultimate parent Company. The fair value of the employee services received in exchange for the grant of restricted stock units is recognised as an expense in the income statement and corresponding credit is recognised in capital contribution reserve as a component of equity. The total amount to be expensed over the vesting period is determined by reference to the fair value of the awards granted, excluding the impact of any non-market vesting conditions. Non-market vesting conditions are included in assumptions about the number of awards that are expected to vest. At each statement of financial position date, the Company revises its estimates of the number of restricted stock units that are expected to vest. Subject to certain exceptions, restricted stock units granted to employees either vest (A) over a four-year period, subject to continued service, with 25% vesting on a pre-determined date that is close to the anniversary of the date of grant and 6.25% vesting quarterly thereafter, or (B) over a three-year period, subject to continued service, with 40% vesting on a pre-determined date that is close to the anniversary of the date of grant and 7.50% vesting quarterly thereafter, or (C) over a four-year period, subject to continued service, with 6.25% vesting quarterly. In 2012, the shareholders of NVIDIA Corporation approved the NVIDIA Corporation 2012 Employee Stock Purchase Plan (ESPP), as most recently amended and restated (the "2012 Plan”).Employees who participate in the 2012 Plan may have up to 25% of their earnings withheld (subject to an annual $ limit) to purchase shares of common stock. The Board of Directors of NVIDIA Corporation may decrease this percentage at its discretion. Each offering period is approximately 24 months, which is generally divided into four purchase periods of six months. The price of common stock purchased under the 2012 Plan will be equal to 85% of the lower of the fair market value of the common stock on the commencement date of each offering period or the fair market value of the common stock on each purchase date within the offering. De­pre­ci­a­tion and impair­ment lossesThe de­pre­ci­a­tion of prop­er­ty, plant and equip­ment aim at systematic de­pre­ci­a­tion over the expected useful lives of the assets. Assets are de­pre­ci­ated according to the straight-line method based on the following ex­pected useful lives and residual values:Land is not depreciated.The basis of de­pre­ci­a­tion is the cost of the asset less the expected residual value at the end of the useful life. Moreover, the basis of de­pre­ci­a­tion is reduced by any impairment losses. The useful life and residual value are determined when the asset is ready for use and reassessed annually.Prop­er­ty, plant and equip­ment are impaired in accordance with the accounting policies referred to in the ‘Impairment losses on fixed assets’ section. Other net financialsInterest income and interest expenses, the interest element of finance lease payments, for­eign exchange gains and losses on trans­ac­tions denominated in foreign currencies etc. are recognised in other net financials. Tax on profit/loss for the yearThe current and deferred tax for the year is recognised in the income statement as tax on the profit/loss for the year with the portion attributable to the profit/loss for the year. Property, plant and equipmentProperty, plant and equipment comprise land and buildings, leasehold improvements as well as other fixtures and fittings, tools and equipment.Property, plant and equipment are meas­ured in the balance sheet at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and expenses resulting directly from the purchase until the asset is ready for use. Interest on loans arranged to finance production is not included in the cost.The total cost of an asset is decomposed into separate components that are depreciated separately if the useful lives of the individual components vary.Property, plant and equipment are depreci­ated using the straight-line method based on useful lives and residual values, which are stated in the ‘De­pre­ci­a­tion and impair­ment losses' section.Gains and losses on the disposal of property, plant and equipment are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal less any costs of disposal. Impairment losses on fixed assetsThe carrying amount of fixed assets which are not measured at fair value is assessed annually for indications of impairment over and above what is reflected in de­pre­ci­a­tion.If the Company's realised return on an asset or a group of assets is lower than expected, this is considered an indication of impairment.If there are indications of impairment, an impairment test is conducted of individual assets or groups of assets.The assets or groups of assets are impaired to the lower of recoverable amount and carrying amount.The higher of net selling price and value in use is used as the recoverable amount. The value in use is determined as the present value of expected net cash flows from the use of the asset or group of assets as well as expected net cash flows from the sale of the asset or group of assets after the expiry of their useful lives.Impairment losses are reversed when the reasons for the impairment no longer exist. ReceivablesReceivables are measured at amortised cost, which usually corresponds to the nom­inal value, less write-downs for bad debts.Write-downs for bad debts are determined based on an individual assessment of each receivable if there is no objective evidence of individual impairment of a receivable.Deposits recognised under assets comprise deposits paid to the lessor under leases entered into by the Company. PrepaymentsPrepayments recognised under assets com­prise costs incurred in respect of subse­quent financial years. CashCash and cash equivalents include cash in hand and deposits (up to three months from the date of investment) held at call with banks. Current and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxable income for the year, adjusted for tax paid on account.Deferred tax liabilities and tax assets are recognised on the basis of all temporary differences between the carrying amounts and tax bases of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where temporary differ­ences, except for acquisitions, havearisen at the date of acquisition without affecting the net profit or loss for the year or the tax­able income. In cases where the tax value can be determined according to different taxation rules, deferred tax is measured on the basis of management’s intended use of the asset or settlement of the liability.Deferred tax assets are recognised, following an assessment, at the expected realisable value through offsetting against deferred tax liabilities or elimination in tax on future earnings. The Company does not record deferred tax assets when it is not probable that future taxable profits will be available to utilize the tax benefits. Due to uncertainty regarding future utilization, no deferred tax asset has been recognized in the balance sheet as of the reporting date.Deferred tax is measured on the basis of the tax rules and at the tax rates which, according to the legislation in force at the balance sheet date, will be applicable when the deferred tax is expected to crystallise as current tax. PayablesShort-term financial payables are measured at amortised cost, normally corresponding to the nominal value of such payables. Other short-term payables are measured at net realisable value. The cash flow statement is prepared using the indirect method, showing cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and end of the year.Cash flows from operating activities com­prise the net profit or loss for the year, adjusted for non-cash operating items, income tax paid and changes in working capital.Cash flows from investing activities com­prise payments in connection with the ac­quisition and divestment of companies and financial assets as well as the purchase, development, improvement and sale of in­tangible assets and property, plant and equipment.Cash flows from financing activities com­prise changes in the Company's share capital and as­so­ci­a­ted costs and finan­cing from and di­vidends paid to sharehold­ers as well as the ar­ran­ge­ment and repay­ment of long-term pay­ables. Cash flows from financing activities also comprise finance lease payments. Cash and cash equivalents at the beginning and end of the year comprise cash.