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Management Board's Report for the Year 2022 | |
Introduction by the Management Board | |
Company Profile | |
Key Figures | |
Data per Share | |
Shareholder Information | |
Mission, Vision, Core Values, and Corporate Strategy | |
Value Creation Process at Brill | |
Publishing Program | |
Financial Report | |
Human Resources | |
Risk Management | |
Corporate Social Responsibility | |
Responsibility Statement | |
Corporate Governance | |
Supervisory Board’s Report for the Year 2022 | |
Remuneration Policy and Report for the Year 2022 | |
Financial Statements for the Year 2022 | |
Consolidated Financial Statements | |
Company Financial Statements | |
Other Information | |
Independent Auditor’s Report | |
Report of Stichting Administratiekantoor Koninklijke Brill (Brill's trust office) | |
Report of Stichting Luchtmans | |
About this Annual Report | |
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2022 | 2021 | 2020 | 2019 | 2018 | |
Results | |||||
Revenue | 48,048 | 46,865 | 37,859 | 37,128 | 35,951 |
Gross profit | 34,268 | 33,838 | 26,372 | 25,922 | 24,383 |
EBITDA [1] | -30 | 7,203 | 6,600 | 5,183 | 3,623 |
Operating profit | -4,513 | 4,453 | 4,502 | 3,291 | 2,360 |
Profit for the year | - | 3,036 | 2,896 | 2,162 | 2,304 |
Free cash flow [2] | 1,831 | 3,402 | 4,515 | 2,164 | 817 |
Average invested capital [3] | 26,846 | 25,093 | 24,539 | 24,390 | 23,394 |
Growth compared to previous year | |||||
Revenue | 2.5% | 23.8% | 2.0% | 3.3% | -1.2% |
Gross profit | 1.3% | 28.3% | 1.7% | 6.3% | 2.3% |
EBITDA [1] | -100.4% | 9.1% | 27.3% | 43.0% | -12.8% |
Operating profit | -201.3% | -1.1% | 36.8% | 39.5% | -28.8% |
Profit from continued operations | -214.1% | 4.9% | 34.0% | -6.2% | 1.9% |
Profitability | |||||
Gross profit as % of revenue | 71.3% | 72.2% | 69.7% | 69.8% | 67.8% |
EBITDA [1] as % of revenue | -0.1% | 15.4% | 17.4% | 14.0% | 10.1% |
Operating profit as % of revenue | -9.4% | 9.5% | 11.9% | 8.9% | 6.6% |
Revenue/average invested capital | 1.8 | 1.9 | 1.5 | 1.5 | 1.5 |
NOPLAT [4] as % of revenue | -7.0% | 7.1% | 8.9% | 6.6% | 5.0% |
ROIC [5] | -12.5% | 13.3% | 13.8% | 10.1% | 7.6% |
Balance sheet ratios | |||||
Shareholders’ equity/total assets | 32.0% | 41.4% | 44.6% | 40.9% | 42.5% |
Current assets/current liabilities | 0.63 | 0.88 | 0.92 | 0.75 | 0.75 |
Personnel | |||||
Average number of employees (FTE) | 250 | 227 | 161 | 165 | 167 |
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2022 | 2021 | 2020 | 2019 | 2018 | |
Weighted average number of outstanding shares | 1,874,444 | 1,874,444 | 1,874,444 | 1,874,444 | 1,874,444 |
Shareholders’ equity per share | 10.52 | 13.22 | 12.76 | 11.32 | 11.09 |
Increase/(decrease) in % | -20.4% | 3.6% | 12.7% | 2.0% | -24.2% |
EBITDA per share | -0.02 | 3.84 | 3.52 | 2.76 | 1.93 |
Increase/(decrease) in % | -100.5% | 9.1% | 27.5% | 43.0% | -12.9% |
Earnings per share | -1.85 | 1.62 | 1.54 | 1.15 | 1.23 |
Increase/(decrease) in % | -214.2% | 5.2% | 33.9% | -6.2% | 1.6% |
Free cash flow per share | 0.98 | 1.81 | 2.41 | 1.16 | 0.44 |
Increase/(decrease) in % | -45.9% | -24.9% | 107.8% | 163.6% | 2,001.0% |
Dividend per share (for 2022 proposed) | 0.00 | 0.90 | 1.25 | 0.00 | 0.85 |
Increase/(decrease) in % | -100.0% | -28.0% | n.a. | -100.0% | -35.6% |
Payout ratio | N.A. | 55.6% | 81.2% | 0.0% | 70.0% |
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2022 | 2021 | 2020 | 2019 | 2018 | |
Number of outstanding shares at year end | 1,874,444 | 1,874,444 | 1,874,444 | 1,874,444 | 1,874,444 |
Highest share price during the year | 25.20 | 26.00 | 23.00 | 24.60 | 41.20 |
Lowest share price during the year | 16.50 | 17.60 | 13.20 | 18.20 | 17.20 |
Share price at year end | 17.80 | 24.80 | 18.30 | 20.40 | 17.80 |
Filings | Size | Declaration date | |||
Mont Cervin Sàrl | 22% | 22 June 2012 | |||
Teslin Participaties Coöperatief U.A. | 19% | 18 September 2020 | |||
Lazard Frères Gestion SAS | 5% | 30 September 2022 | |||
J.P. van Slooten | 5% | 11 April 2017 | |||
Stichting Administratiekantoor Arkelhave Capital | 5% | 16 December 2016 | |||
Stichting John en Marine Van Vlissingen Foundation | 5% | 11 August 2015 | |||
P.C. van Leeuwen | 4% | 5 April 2022 |
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Stakeholder | Indicators of value created | Progress in 2022 |
Authors | –Number and reputation of authors publishing with Brill –Publishing experience at Brill –Quality of publications –Extent of distribution offered –Publication format range offered | –Brill (all imprints, incl. full year Wageningen Academic): 1,936 book titles published versus 2,067 in 2021. –Brill (all imprints, incl. full year Wageningen Academic): 1,063 journal issues published versus 1,071 in 2021. |
Librarians and funders | –Flexible, attractive purchasing options –Online platforms combining easy search, ease of access, usability, usage monitoring –Efficient ordering processes –Flexible publishing options: Open Access, user pays, subsidizing specific publications | –Start with Brill Book Archive, part 2. At the end of 2022 approx. 3,500 titles were already available online. –First transformative agreement in US, and further increase of Evidence Based Acquisition deals. |
Readers | –Quality of publications, print and online –Ease of search, ease of access, usability –Platform usage –Quick availability of print publications | –In 2022 E-Book usage on brill.com was 3.258.305 full text downloads, an increase of 18% compared to previous year. At V&R E-Book usage increased by 21%. |
Investors | –Growth –Margin –ROIC | –Revenue growth 2.5% –EBITDA margin -0.1% –ROIC % -12.5% |
Staff | –Inclusivity –Turnover | –Female vs male 66%/34% –Offboarded 41 FTE, onboarded 47 FTE (including 7 from Wageningen acquisition) |
Global community | –Active support for the global cause of humanities –Corporate initiatives tied to core capabilities –Overall corporate citizenship | –Humanities Matter campaign via blogs and podcasts –Continued sponsorships for local museums and initiatives –Embedded UN Global Compact strategy, see paragraph on CSR |
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in thousands of euros | 2022 | 2021 | Change | |
Revenue | 48,048 | 46,865 | 2.5% | |
EBITDA | -30 | 7,203 | -100.4% | |
Operating profit | -4,513 | 4,453 | -201.3% | |
Free cash flow | 1,831 | 3,402 | -46.2% | |
Result, attributable to shareholders of Koninklijke Brill N.V. | - | 3,036 | -214.1% | |
Earnings per share | -1.85 | 1.62 | -214.1% | |
Underlying profit | -286 | 3,764 | -107.6% | |
Underlying profit per share in euro | -0.15 | 2.01 | -107.6% | |
Dividend (proposed 2022) in euro | 0.00 | 0.90 | ||
Key Financial Performance Indicators | ||||
Organic revenue growth | -4.2% | 2.1% | ||
ROIC | -12.5% | 13.3% | ||
EBITDA margin | -0.1% | 15.4% |
(In thousands of euro) | 2022 | 2021 | Organic growth | Growth |
Print books | 14,937 | 16,865 | -20.0% | -11.4% |
eBooks | 18,271 | 16,278 | 7.1% | 12.2% |
Journals | 13,251 | 12,322 | 1.1% | 7.5% |
Primary sources | 1,589 | 1,400 | 8.1% | 13.5% |
Total | 48,048 | 46,865 | -4.2% | 2.5% |
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(In thousands of euro) | % of total growth | Organic growth | |
Revenue 2021 | 46,865 | ||
Print books | -3,365 | -7.2% | -20.0% |
eBooks | 1,148 | 2.4% | 7.1% |
Journals | 189 | 0.4% | 1.1% |
Primary sources | 113 | 0.2% | 8.1% |
Organic revenue 2022 | 44,950 | -4.2% | -4.2% |
Acquisitions | 2,087 | 4.5% | |
Currency | 1,011 | 2.2% | |
Total revenue 2022 | 48,048 | 2.5% |
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In thousands of euro) | 2022 | 2021 |
Profit before tax | - | 4,317 |
Impairment intangible assets | 1,607 | 0 |
Turpin related write-off on receivables | 1,000 | 0 |
Move to new distribution partner Air Business | 568 | 0 |
OTC improvements | 495 | 0 |
Costs for the integration of V&R | 563 | 993 |
Restructuring costs | 80 | -124 |
Underlying profit before tax | -386 | 5,186 |
Tax, at the statutory rate | 100 | -1,255 |
Underlying net profit | -286 | 3,931 |
Non-benchmark items, after tax | -3,200 | -525 |
Change in deferred tax liability and other | 21 | -202 |
Profit attributable to shareholders of Koninklijke Brill N.V. | -3,465 | 3,204 |
Underlying earnings per share in EUR | -0.15 | 2.01 |
Earnings per share in EUR | -1.85 | 1.62 |
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FTEs | Year end 2022 | Year end 2021 |
Publishing | 105.4 [41.7%] | 102.3 [ 41,4%] |
Operations & Technology | 76.2 [30.13] | 75.7 [ 30,7%] |
Sales & Marketing | 48.8 [19.31%] | 45.4 [ 18,4%] |
Finance, HR, Other | 22.5 [ 8.89%] | 23.5 [ 9.5%] |
Total | 252.9 [100%] | 246.9 [100%] |
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FTEs | Year end 2022 | Year end 2021 |
The Netherlands | 125.2 | 126.5 |
Germany | 95.2 | 86.9 |
United States | 17.9 | 19.9 |
Austria | 9.6 | 9.6 |
Singapore | 1.0 | 1.0 |
China | 2.0 | 1.0 |
Other | 2.0 | 2.0 |
Total | 252.9 | 246.9 |
International workforce | 127.7 | 120.4 |
2022 | 2021 | |
Male | 34.0% | 35.3% |
Female | 66.0% | 64.7% |
2022 | 2021 | |
Part-time | 28.2% [77] | 30.1% [81] |
Full-time | 71.8% [196] | 69.9% [188] |
headcount | 100% [273] | 100% [269] |
AGE | 2022 | 2021 |
20 - 29 years | 12.1% | 14.0% |
30 - 39 years | 25.0% | 25.0% |
40 - 49 years | 24.9% | 24.0% |
50 - 59 years | 21.2% | 23.0% |
Older than 60 years | 16.8% | 14.0% |
Total | 100.0% | 100.0% |
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FTEs outflow | 2022 | 2021 |
Retirement + passing away | 2.2 | 3.4 |
Brill initiative | ||
Temporary contracts | 14.0 | 3.0 |
Other | 6.0 | 3.0 |
Own initiative | ||
Employment 0–2 years | 11.4 | 5.7 |
Employment 2–5 years | 2.0 | 4.0 |
Employment 5–10 years | 2.5 | 1.0 |
Employment 10–15 years | 0.7 | 1.0 |
Employment 15–20 years | 2.0 | 0.0 |
Employment >20 years | 0.0 | 0.0 |
Total FTE outflow | 40.8 | 21.1 |
Total outflow in % | 16.1% | 9.3% |
FTEs inflow | 2022 | 2021 |
Acquisitions/divestment | 7.0 | 72.0 |
Temporary contracts | 0.9 | 3.5 |
Permanent contracts | 6.1 | 68.5 |
Other | 39.9 | 37.7 |
Temporary contracts | 32.4 | 30.7 |
Permanent contracts | 7.5 | 7.0 |
Total FTE inflow | 46.9 | 109.7 |
Total inflow in % | 18.5% | 40.8% |
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Nature of the risk | Description of the risk | Objective threatened | Risk appetite (1=low & 5=high) | (Type of) mitigation |
Market | 1. Reputation: Various events may impact the company’s reputation in the eyes of its stakeholders which is the cornerstone of Brill’s ability to run and develop its business. | Expand in current and adjacent subject fields; growth | 1 | Organizational: Organizational structure that enables the company to react and adapt flexibly to changing market circumstances. Business policies: Editorial policies including diligent peer review and checks on violation of publication ethics; communication policy; investor relations policy; code of conduct (mandatory). |
2. Funding environment and funding mandates: Our customers and authors depend on governments’ and societies’ willingness to fund research in the humanities and social sciences incl. purchases at Brill and collaboration with Brill. Changing Open Access policies of major funding bodies like the ERC, UKRI, DFG, NWO. | Expand in current and adjacent subject fields | 2 | Business policies: Increased focus on repeatable business, expansion into adjacent market segments, tap alternative funding sources, and support authors to procure funding for Open Access publication. Active participation in Open Access discussions with relevant actors within the global science community. |
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3. Economic and geopolitical circumstances and events: high inflation, supply chain shocks, economic recession | Growth and profitability | 3 | Highly diversified geographic sourcing of content and realization of sales, which diversifies local economic and geopolitical risks and some supply chain risks. Steadily increasing digital penetration in the product mix, lowering risks of shocks to the physical supply chain. We can adjust prices of our products to mitigate inflationary pressure on our costs to a certain extend. The the move to digital reduces our exposure to print and shipping costs. | |
Operations | 4. Outsourcing: Failed outsourcing may impact business continuity or quality and the pricing of services used leading to reduced competitiveness. | Enhance operating capacity | 2 | Organizational: Quality of Brill staff. Control measures: SLAs, vendor selection process, enhanced monitoring of SLA compliance. Business policies: Insurance, contingency, and back-up measures. |
5. Integrations: Limited capacity and capability to integrate acquisitions. | Realizing benefits of new acquisitions | 2 | Dedicated and experienced teams follow a detailed integration plan. Project execution is monitored by senior management. Operational infrastructure is updated to facilitate future integrations. | |
6. People and organization: We may not be able to attract and retain the desired personnel. | Achievement of corporate strategy | 2 | Business policy: Develop Brill’s employer reputation and culture to attract and retain employees. |
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7. IT and Cybersecurity: Deficiencies in our IT general controls may lead to reduced efficiency, reduced business continuity, and increased risk of fraud or exposure to cybersecurity risks. Our competitiveness maybe negatively impacted by legacy systems | Enhance operating capacity | 2 | Control measures: IT general controls such as (software-enforced) segregation of duties and IT user and access management policies. Business policies: Contingency and back-up measures, security measures, communication on IT and cybersecurity risks. Invest in new technologies. | |
Financing and other | 8. Currency: Significant swings in the USD/ exchange rate may impact our results | Improve financial performance | 3 | Business policies: Hedging policy (refer to financial statements). |
9. Impairment: The company carries substantial intangible assets and stock on its consolidated statement of financial position. Deteriorating business performance may lead to impairments which could cause substantial erosion of equity. | Improve financial performance | 2 | Controls: Review of material investments including acquisitions according to Chart of Authorization. Business policies: Conservative valuation calculations for acquisitions, reduction of assets required to run the business, regular review of asset value in impairment tests and stock evaluations. Reduce stock by move to Print on Demand | |
10. Capital structure and financing : Investors may not be willing to fund Brill’s corporate strategy including M&A activities. Covenants are part of the loan agreement with RABO bank. Significantly lower results may lead to breaching the covenants. | Expand in current and adjacent subject fields and markets. Financial stability | 2 | Business policies: Investor relations policy, dividend policy, focus on financial performance improvement. Managing debt and equity, following financing policies, and monitoring ratios. Internal Controls: Framework of controls aimed at financial reporting reliability. |
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Regulatory | 11. Compliance and control: Business risks due to lack of control High audit costs due to increased IFRS and other regulations for listed companies. | Improve financial performance | 1 | Business policies: Further training of staff and automation of processes in Finance. Increase efficiency in accounting and implement more auditable workflows. |
12. Fraud: Brill’s expanding business in certain countries might raise the risk of fraud or corruption by third-party intermediaries for which Brill can be held liable. | Financial stability, reputation | 1 | Business policies: Further training of staff and automation of processes in Finance. Increase efficiency in accounting and implement more auditable workflows. |
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Filings | Size | Declaration date |
Mont Cervin Sàrl | 22% | 22 June 2012 |
Teslin Participaties Coöperatief U.A. | 19% | 18 September 2020 |
Lazard Frères Gestion SAS | 5% | 30 September 2022 |
J.P. van Slooten | 5% | 11 April 2017 |
Stichting Administratiekantoor Arkelhave Capital | 5% | 16 December 2016 |
Stichting John en Marine Van Vlissingen Foundation | 5% | 11 August 2015 |
P.C. van Leeuwen | 4% | 5 April 2022 |
Name | Number of registered depository receipts |
Jan Niessen | 462,875 |
Jasmin Lange | 500 |
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Remuneration of the Supervisory Board (in thousands of euros) | 2022 | 2021 | ||
Robin Hoytema van Konijnenburg | 35 | 35 | ||
Anneke Blok*) | 28 | 18 | ||
Theo van der Raadt | 28 | 28 | ||
Jeanine van der Vlist*) | 0 | 0 | ||
Jan Niessen*) | 0 | 0 | ||
Catherine Lucet*) | 0 | 9 | ||
Total remuneration | 91 | 90 | ||
*) Remuneration proportional to period served |
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Paid remuneration of the Management Board (in thousands of euros) | |||||||
Fixed | Variable compensation | Fixed | Fixed | ||||
Short-term employee benefits | Short-term incentive plan | Long-term incentive plan | Post- employment benefits | Interim fee | Total | Proportion fixed : variable | |
2022 | |||||||
John Martin | 97 | 0 | 0 | 6 | 17 | 120 | 100:00 |
Peter Coebergh | 415 | 82 | 96 | 10 | 0 | 603 | 70:30 |
Jasmin Lange | 194 | 46 | 23 | 13 | 0 | 276 | 75:25 |
Wim Dikstaal | 204 | 19 | 4 | 13 | 0 | 240 | 90:10 |
Total | 910 | 147 | 123 | 42 | 17 | 1,239 | 78:22 |
2021 | |||||||
Peter Coebergh | 279 | 73 | 78 | 14 | 0 | 444 | 66:34 |
Olivier de Vlam | 115 | 54 | 85 | 4 | 0 | 258 | 46:54 |
Jasmin Lange | 188 | 38 | 40 | 14 | 0 | 280 | 72:28 |
Wim Dikstaal | 34 | 0 | 0 | 2 | 215 | 251 | 100:00 |
Total | 616 | 165 | 203 | 34 | 215 | 1,233 | 70:30 |
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Target achievement of the members of the Management Board (in % of annual base salary) | ||||||
Short-term Financial | Short-term Non-financial | Long-term 2020–2022 | Long-term 2021–2023 | Long-term 2022–2024 | Annual Total | |
John Martin | ||||||
Maximum | 20% | 20% | 40% | 40% | 40% | 80.0% |
Achievement | 0.0% | 16.0% | 15.0% | n.a. | n.a. | 31.0% |
Wim Dikstaal | ||||||
Maximum | 17.5% | 17.5% | 35.0% | 35.0% | 35.0% | 70.0% |
Achievement | 0.0% | 13.2% | 13.1% | n.a. | n.a. | 26.3% |
Jasmin Lange | ||||||
Maximum | 17.5% | 17.5% | 35.0% | 35.0% | 35.0% | 70.0% |
Achievement | 0.0% | 16.5% | 13.1% | n.a. | n.a. | 29.6% |
Accrued in 2022 for | 0 | 67 | 40 | 30 | 38 | 175 |
Accrued in 2021 for | 48 | 72 | -14 | 37 | 42 | 185 |
All payouts are proportional to period served and subject to final approval from the Supervisory Board | ||||||
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Total paid executive remuneration (in thousands of euros) | 2022 | 2021 | ||
Supervisory Board | 91 | 90 | ||
Management Board | 1,239 | 1,233 | ||
Total paid remuneration (amounts per person as per above) | 1,330 | 1,323 | ||
Variable payout accrued in the prior year | -185 | -368 | ||
Variable component accrued in the current year | 175 | 204 | ||
Net expense for executive remuneration | 1,320 | 1,159 |
2022 | 2021 | 2020 | 2019 | 2018 | |
Total salary expense, excluding subsidies received (in thousands of euros) | 20,170 | 17,488 | 13,391 | 13,049 | 13,205 |
Management Board remuneration (in thousands of euros) | 1,239 | 1,233 | 838 | 732 | 819 |
Staff salary expense (in thousands of euros) | 18,931 | 16,255 | 12,553 | 12,317 | 12,386 |
Average FTE | 249.9 | 226.9 | 160.6 | 165.1 | 166.7 |
Management Board average FTE | 2.7 | 3.3 | 3.0 | 3.0 | 2.4 |
Staff average FTE | 247.2 | 223.6 | 157.6 | 162.1 | 164.3 |
Staff salary expense / average FTE (in thousands of euros) | 76.6 | 72.7 | 79.7 | 76.0 | 75.4 |
Pay ratio | 5.9 | 5.2 | 3.5 | 3.2 | 4.5 |
Information on performance of the Group in the comparable period: | |||||
Revenue (in thousands of euros) | 48,048 | 46,865 | 37,859 | 37,128 | 35,950 |
EBITDA Margin | -0.1% | 15.4% | 17.4% | 14.0% | 10.1% |
Return on invested capital | -12.5% | 13.3% | 13.8% | 10.1% | 7.6% |
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Consolidated statement of financial position as at 31 December | |
Consolidated statement of profit or loss and other comprehensive income for the year ended 31 December | |
Consolidated statement of cash flows for the year ended 31 December | |
Consolidated statement of changes in equity for the year ended 31 December | |
Notes to the consolidated financial statements | |
1.General | |
4.Property, plant and equipment | |
11.Equity | |
14. Deferred income | |
15. Provisions | |
16.Commitments | |
21.Earnings per share | |
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In thousands of euros | ||||
31-12-2022 | 31-12-2021 | |||
ASSETS | ||||
Non - current assets | ||||
Property, plant and equipment [4] | ||||
Right of use assets [5] | ||||
Intangible assets [6] | ||||
Financial assets | ||||
Deferred tax assets [7] | ||||
Current assets | ||||
Inventories [8] | ||||
Trade and other receivables [9] | ||||
Income tax | ||||
Derivative financial instruments [17] | ||||
Cash and cash equivalents [10] | ||||
Total assets | ||||
EQUITY AND LIABILITIES | ||||
Equity attributable to owners of Koninklijke Brill NV [11] | ||||
Share capital | ||||
Share premium | ||||
Retained earnings | ||||
Other reserves | - | - | ||
Non-current liabilities | ||||
Interest bearing loans [12] | ||||
Lease liabilities [5] | ||||
Deferred tax liabilities [7] | ||||
Current liabilities | ||||
Interest bearing loans [12] | ||||
Trade and other payables [13] | ||||
Deferred income [14] | ||||
Lease liabilities [5] | ||||
Provisions [15] | 495 | 0 | ||
Derivative financial instruments [17] | ||||
Income tax | ||||
Total equity and liabilities |
55 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
In thousands of euros | |||
2022 | 2021 | ||
Revenue [18] | |||
Cost of goods sold [19] | - | - | |
Gross Profit | |||
Expenses [19] | |||
Selling and distribution expenses | - | - | |
General and administrative expenses | - | - | |
Net impairment on goodwill and intangible assets | -1,607 | 0 | |
Operating Profit | - | ||
Finance income [20] | |||
Finance expenses [20] | - | - | |
Profit before income tax | - | ||
Income tax [7] | - | ||
Profit for the period attributable to shareholders of Koninklijke Brill N.V. | - | ||
Other comprehensive (expense) income – items that might be reclassified to future profit or loss statements | |||
Exchange differences in translation of foreign operations [11] | |||
Net gain or loss on cash flow hedges [11] | |||
Income tax relating to these items [11] | - | - | |
Other comprehensive income for the period attributable to shareholders of Koninklijke Brill N.V. | |||
Total comprehensive income for the period attributable to shareholders of Koninklijke Brill N.V. | - | ||
Earnings per share (in euros) [21] | |||
Basic and diluted earnings per share attributable to shareholders of Koninklijke Brill N.V. | - |
56 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
In thousands of euros | |||||
2022 | 2021 | ||||
Cash flows from operating activities | |||||
Profit before income tax | - | ||||
Adjustments for | |||||
Amortization and Depreciation fixed assets [4, 5, 6] | |||||
Amortization Content [6] | |||||
Finance income and expense – net | |||||
Differences in FX rates | -176 | 0 | |||
Change in operating assets and liabilities | |||||
Change in working capital | |||||
Cash generated from operations | |||||
Interest paid(-)/received | - | - | |||
Income tax paid(-)/received | - | ||||
Net cash flows from operating activities | |||||
Cash flows from investing activities | |||||
Investment in property, plant and equipment [4] | - | - | |||
Investment in intangible assets (non-content) [6] | - | - | |||
Investment in content [6] | - | - | |||
Payments for acquisitions, net of cash acquired [3] | - | - | |||
Net cash flow used in(-) investing activities | - | - | |||
Cash flows from financing activities | |||||
Dividend paid to company shareholders [11] | - | - | |||
Interest bearing loan [12] | |||||
Redemption Interest bearing loans [12] | - | - | |||
Redemption lease liabilities [5] | - | - | |||
Net cash flows from/used in(-) financing activities | - | - | |||
Net cash flow | - | - | |||
Cash and cash equivalents as per 1 January | |||||
Net cash flow | - | - | |||
Cash and cash equivalents as per 31 December [10] | |||||
57 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
In thousands of euros | ||||||
Share capital [11] | Share premium [11] | Retained earnings [11] | Currency translation reserve [11] | Cash flow hedge reserve [11] | Total equity | |
Balance as at 1 January, 2022 | - | - | ||||
Total comprehensive income for the year | ||||||
Profit for the year | - | - | ||||
Other comprehensive income | ||||||
Total comprehensive income for the period | - | - | ||||
Transactions with owners of the company | ||||||
Dividends paid over 2021 | - | - | ||||
Total transactions with owners of the company | - | - | ||||
Balance as per 31 December, 2022 | - | |||||
Balance as per 1 January, 2021 | - | - | ||||
Total comprehensive income for the period | ||||||
Profit for the year | ||||||
Other comprehensive expense | ||||||
Total comprehensive income for the period | ||||||
Transactions with owners of the company | ||||||
Dividends paid over 2020 | - | - | ||||
Total transactions with owners of the company | - | - | ||||
Balance as per 31 December, 2021 | - | - | ||||
58 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
59 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
60 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
61 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
62 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
63 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
64 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
65 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
66 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
67 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
68 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
69 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
70 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
71 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
72 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
In thousands of euro | Fair value as at 15 April, 2022 |
Intangible assets (other than goodwill) | 527 |
Property, plant and equipment | 11 |
Right of use assets | 55 |
Inventories | 27 |
Trade and other receivables | 63 |
Cash and cash equivalents | 510 |
Trade and other payables | -225 |
Deferred taxes | -130 |
Lease liabilities | -56 |
Net identifiable assets acquired | 782 |
Goodwill | 1,718 |
Net assets acquired (consideration transferred) | 2,500 |
73 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
74 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2022 | Leasehold improvements | Furniture & Fixtures | IT Hardware | Total |
As at 1 January | ||||
Cost | 910 | 650 | 758 | 2,318 |
Accumulated depreciation | -871 | -620 | -574 | -2,065 |
Carrying amount as at 1 January | 39 | 30 | 184 | 253 |
Changes in the year | ||||
Acquired through business combination | 0 | |||
Investment | 0 | 798 | 290 | 1,088 |
Transfer at cost | 0 | 39 | 2 | 41 |
Transfer accumulated depreciation | 0 | -39 | -2 | -41 |
Disposal at cost | 0 | 0 | -8 | -8 |
Disposal accumulated depreciation | 0 | -1 | 7 | 6 |
Depreciation | -27 | -70 | -99 | -196 |
Exchange rate differences | 0 | 0 | 0 | 0 |
Carrying amount as per 31 December | 12 | 756 | 376 | 1,144 |
As at 31 December | ||||
Cost | 910 | 1,487 | 1,043 | 3,439 |
Accumulated depreciation | -898 | -731 | -667 | -2,295 |
Carrying amount as at 31 December | 12 | 756 | 376 | 1,144 |
Useful life in years | 10 | 5 - 10 | 3 |
75 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2021 | Leasehold improvements | Furniture & Fixtures | IT Hardware | Total |
As at 1 January | ||||
Cost | 907 | 619 | 599 | 2,125 |
Accumulated depreciation | -831 | -584 | -488 | -1,903 |
Carrying amount as at 1 January | 76 | 35 | 111 | 222 |
Changes in the year | ||||
Acquired through business combination | 3 | 0 | 37 | 40 |
Investment | 0 | 1 | 97 | 98 |
Transfer at cost | 0 | 10 | 24 | 34 |
Transfer accumulated depreciation | 0 | 4 | -4 | 0 |
Depreciation | -40 | -37 | -81 | -158 |
Exchange rate differences | 0 | 17 | 0 | 17 |
Carrying amount as per 31 December | 39 | 30 | 184 | 253 |
As at 31 December | ||||
Cost | 910 | 650 | 758 | 2,318 |
Accumulated depreciation | -871 | -620 | -574 | -2,065 |
Carrying amount as at 31 December | 39 | 30 | 184 | 253 |
76 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Right of use assets | Offices | Company cars | Total |
2022 | |||
Carrying amount as at 1 January | 1,210 | 113 | 1,323 |
Acquired through business combination | 55 | 0 | 55 |
Additions | 4,929 | 86 | 5,015 |
Depreciations | -843 | -80 | -923 |
Carrying amount as at 31 December | 5,351 | 119 | 5,470 |
Lease term in years (current and previous year) | 0 - 10 | 0 - 4 | |
2021 | |||
Carrying amount as at 1 January | 1,345 | 113 | 1,458 |
Acquired through business combination | 447 | 8 | 455 |
Additions | 119 | 54 | 173 |
Depreciations | -701 | -62 | -763 |
Carrying amount as at 31 December | 1,210 | 113 | 1,323 |
Lease liabilities | 2022 | 2021 |
Carrying amount as at 1 January | 1,540 | 1,834 |
Acquired through business combination (note 3) | 55 | 455 |
Additions | 5,015 | 121 |
Interest accretion (note 20) | 83 | 52 |
Redemption of lease liabilities (Cash flows from financing activities) | -1,060 | -870 |
Interest payments (Cash flows from operating activities) | -83 | -52 |
Carrying amount as at 31 December | 5,550 | 1,540 |
Non-current lease liabilities | 4,962 | 612 |
Current lease liabilities | 588 | 928 |
5,550 | 1,540 |
77 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2022 | Publishing rights | Goodwill | Capitalized Content | Information Systems | Other | Assets under construc- tion | Total |
As at 1 January | |||||||
Cost | 17,889 | 4,003 | 52,736 | 7,191 | 842 | 1,082 | 83,743 |
Accumulated amortization and impairment | -558 | 0 | -40,869 | -5,860 | -294 | 0 | -47,580 |
Carrying amount as at 1 January | 17,331 | 4,003 | 11,868 | 1,331 | 549 | 1,082 | 36,163 |
Changes in the year | |||||||
Acquired through business combination | 491 | 1,718 | 0 | 0 | 36 | 0 | 2,245 |
Investment | 200 | 0 | 2,899 | 0 | 7 | 1,432 | 4,538 |
Transfer Asset Category | 0 | 0 | 0 | 1,005 | 0 | -1,005 | 0 |
Transfer at cost | 56 | 0 | 0 | 2,028 | 118 | 0 | 2,201 |
Transfer accumulated amortization | -56 | 0 | 0 | -2,028 | -118 | 0 | -2,201 |
Disposals at cost | 0 | 0 | 0 | -341 | 0 | 0 | -341 |
Disposals at acc. amortization | 0 | 0 | 0 | 323 | 0 | 0 | 323 |
Impairment | -578 | -1,029 | 0 | 0 | 0 | 0 | -1,607 |
Amortization | -211 | 0 | -3,156 | -844 | -85 | 0 | -4,296 |
Total changes | -98 | 689 | -257 | 144 | -41 | 426 | 862 |
As at 31 December | |||||||
Cost | 18,636 | 5,721 | 55,635 | 9,883 | 1,004 | 1,508 | 92,387 |
Accumulated amortization and impairment | -1,403 | -1,029 | -44,025 | -8,408 | -496 | 0 | -55,362 |
Carrying amount as at 31 December | 17,233 | 4,692 | 11,610 | 1,475 | 507 | 1,508 | 37,025 |
Useful life in years | Indefinite / 9 - 20 | Indefinite | 10 | 3 - 5 | 5 |
78 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2021 | Publishing rights | Goodwill | Capitalized Content | Information Systems | Other | Assets under constructi on | Total |
As at 1 January | |||||||
Cost | 16,259 | 3,389 | 49,185 | 6,396 | 404 | 309 | 75,940 |
Accumulated amortization and impairment | -370 | 0 | -37,802 | -4,967 | -211 | 0 | -43,349 |
Carrying amount as at 1 January | 15,890 | 3,389 | 11,383 | 1,429 | 194 | 309 | 32,591 |
Changes in the year | |||||||
Acquired through business combination | 1,373 | 614 | 0 | 379 | 440 | 0 | 2,806 |
Investment | 57 | 0 | 3,552 | 35 | 123 | 1,404 | 5,171 |
Transfer asset group | 200 | 0 | 431 | -631 | 0 | ||
Reclass and Disposals – at cost | 0 | 0 | -50 | 0 | -50 | ||
0 | 0 | 0 | 0 | 0 | |||
Amortization | -188 | 0 | -3,067 | -893 | -207 | 0 | -4,355 |
Total changes | 1,443 | 614 | 485 | -98 | 356 | 773 | 3,572 |
As at 31 December | |||||||
Cost | 17,889 | 4,003 | 52,736 | 7,191 | 967 | 1,082 | 83,868 |
Accumulated amortization and impairment | -558 | 0 | -40,869 | -5,860 | -418 | 0 | -47,705 |
Carrying amount as at 31 December | 17,331 | 4,003 | 11,868 | 1,331 | 549 | 1,082 | 36,163 |
Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
39% | 17% | 8% | 6% | 5% | 5% | 5% | 5% | 5% | 5% |
79 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
CGU's (see note 18) | Applied terminal growth rate of cash flows (g) | Decrease in growth rate which would trigger an (additional) impairment | Increase in discount rate which would trigger an (additional) impairment |
ARC | 1.0% | >1.0 percent point | >5 percent point |
HIS | 1.0% | >0.0 percent point | >0 percent point |
LAW | 1.0% | >0.0 percent point | >0 percent point |
MIA | 1.0% | >0.5 percent point | >5 percent point |
LLA | 1.0% | >0.0 percent point | >0 percent point |
DACH | 1.0% | >2.0 percent point | >5 percent point |
80 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Segment | Publishing rights and brand names | Goodwill | Total | ||||||||
As at 31 December | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||
ARC | 837 | 837 | 404 | 404 | 1,241 | 1,241 | |||||
HIS | 1,349 | 1,349 | 2,638 | 1,578 | 3,987 | 2,927 | |||||
LAW | 10,560 | 10,560 | 418 | 788 | 10,978 | 11,348 | |||||
MIA | 532 | 532 | 343 | 343 | 875 | 875 | |||||
LLA | 1,728 | 2,306 | 0 | 0 | 1,728 | 2,306 | |||||
DACH | 0 | 0 | 890 | 890 | 890 | 890 | |||||
Total | 15,006 | 15,584 | 4,693 | 4,003 | 19,699 | 19,587 | |||||
2022 | 2021 | ||
- Current | 149 | -393 | |
- Deferred tax | 1,085 | -888 | |
Income tax expense | 1,234 | 1,281 |
2022 | 2021 | ||
Income before tax | -4,698 | 4,317 | |
Statutory Dutch income tax rate | 20% - 25.0% | ||
Tax, at the nominal rate | 1,212 | -1,055 | |
- Effect of different tax rates outside the Netherlands | -4 | -59 | |
- Permanent differences | 34 | -12 | |
- Release from deferred tax liability | -21 | 0 | |
- Changes in nominal tax rate | 0 | -160 | |
- Miscellaneous | 13 | 5 | |
Tax recognized in the consolidated income statement | 1,234 | -1,281 | |
Effective tax rate | 26.3% | 29.7% |
81 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2022 | Intangible assets | Plant and equipment | Trade & other accrued expenses | Hedge contracts | Total |
As at 1 January | -5,230 | 32 | 44 | -6 | -5,160 |
Acquired through business combinations | -131 | -131 | |||
Recognized in profit and loss | -91 | -11 | 898 | 796 | |
Recognized in other comprehensive income | 0 | ||||
Effect of movement in foreign exchange rates | 0 | ||||
Carrying amount as at 31 December | -5,452 | 21 | 942 | -6 | -4,495 |
2021 | Intangible assets | Plant and equipment | Trade & other accrued expenses | Hedge contracts | Total |
As at 1 January | -4,324 | 55 | 44 | 0 | -4,225 |
Acquired through business combinations | 0 | 0 | 0 | 0 | 0 |
Recognized in profit and loss | -906 | -23 | 0 | 0 | -929 |
Recognized in other comprehensive income | 0 | 0 | 0 | -6 | -6 |
Effect of movement in foreign exchange rates | 0 | 0 | 0 | 0 | 0 |
Carrying amount as at 31 December | -5,230 | 32 | 44 | -6 | -5,160 |
2022 | Intangible assets | Plant and equipment | Trade & other accrued expenses | Hedge contracts | Total |
As at 1 January | 30 | 0 | 51 | 0 | 81 |
Acquired through business combinations | 0 | 0 | 0 | 0 | 0 |
Recognized in profit and loss | -2 | 55 | 236 | 0 | 289 |
Recognized in other comprehensive income | 0 | 0 | 0 | 0 | 0 |
Effect of movement in foreign exchange rates | 0 | 0 | 0 | 0 | 0 |
Carrying amount as at 31 December | 28 | 55 | 287 | 0 | 370 |
2021 | Intangible assets | Plant and equipment | Trade & other accrued expenses | Hedge contracts | Total |
As at 1 January | 0 | 0 | 38 | 0 | 38 |
Acquired through business combinations | 0 | 0 | 0 | 0 | 0 |
Recognized in profit and loss | 30 | 0 | 11 | 0 | 41 |
Recognized in other comprehensive income | 0 | 0 | 0 | 0 | 0 |
Effect of movement in foreign exchange rates | 0 | 0 | 2 | 0 | 2 |
Carrying amount as at 31 December | 30 | 0 | 51 | 0 | 81 |
As at 31 December | 2022 | 2021 | |
Publications in development | 399 | 369 | |
Finished goods | 4,076 | 4,352 | |
Book return asset | 94 | 94 | |
4,569 | 4,815 |
82 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
As at 31 December | 2022 | 2021 | |
Trade receivables | 6,963 | 8,745 | |
Other receivables | 1,572 | 2,628 | |
8,535 | 11,373 |
As at 31 December, 2022 | ||||
Payments not due | Gross amount | Credit loss allowance | Net amount | Loss allowance |
4,877 | -7 | 4,871 | 0% - 0.1% | |
Payments due: | ||||
0–30 days | 986 | -1 | 985 | 0.1% |
30–60 days | 249 | 0 | 249 | 0.0% |
60–90 days | 194 | 0 | 194 | 0.0% |
> 90 days | 1,922 | -1,258 | 664 | 65.0% |
Total trade receivables | 8,228 | -1,265 | 6,963 | |
As at 31 December, 2021 | ||||
Payments not due | Gross amount | Credit loss allowance | Net amount | Loss allowance |
7,686 | -10 | 7,676 | 0% - 0.1% | |
Payments due: | ||||
0–30 days | 841 | -1 | 840 | 0.1% |
30–60 days | 0 | 0 | 0 | 0.1% |
60–90 days | 91 | 0 | 91 | 0.1% |
> 90 days | 365 | -227 | 138 | 62.0% |
Total trade receivables | 8,983 | -238 | 8,745 | |
83 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2022 | 2021 | ||
1 January | 238 | 347 | |
Add to the allowance during the year | 1,181 | 35 | |
Receivables written off during the year as uncollectible | -154 | -144 | |
31 December | 1,265 | 238 | |
84 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Currency translation reserve | Cash flow hedge reserve | Total other reserves | |
2022 | |||
As at 1 January | -303 | -4 | -307 |
Exchange differences on subsidiaries | 36 | 0 | 36 |
Net gain or loss(-) on cash flow hedges | 0 | 55 | 55 |
Reclassification to profit and loss | 0 | 5 | 5 |
Changes before tax effect | 36 | 60 | 96 |
Tax effect | 0 | -15 | -15 |
Recognized in other comprehensive income | 36 | 45 | 81 |
As at 31 December | -267 | 41 | -226 |
2021 | |||
As at 1 January | -463 | -16 | -479 |
Exchange differences on subsidiaries | 160 | 0 | 160 |
Net gain or loss(-) on cash flow hedges | 0 | 7 | 7 |
Reclassification to profit and loss | 0 | 9 | 9 |
Changes before tax effect | 160 | 16 | 176 |
Tax effect | 0 | -4 | -4 |
Recognized in other comprehensive income | 160 | 12 | 172 |
As at 31 December | -303 | -4 | -307 |
85 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
86 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2022 | 2021 | ||
Carrying amount as at 1 January | 6,154 | 4,583 | |
Changes in the year | |||
New interest bearing loan | 2,200 | 2,900 | |
Debt redemption | -1,588 | -1,334 | |
Changes in financing cash flows | 612 | 1,566 | |
Transaction costs loan expensed over loan term | 15 | 5 | |
Carrying amount as at 31 December | 6,781 | 6,154 | |
Non-current | 5,193 | 4,566 | |
Current | 1,588 | 1,588 | |
Carrying amount as at 31 December | 6,781 | 6,154 |
Non distribution covenant | 2022 | 2021 | |
Profit before tax | -4,691 | 4,317 | |
Amortization and depreciation (non-product, non IFRS 16) | 1,336 | 1,282 | |
Maximum distribution | -3,355 | 5,599 |
Net debt/EBITDA ratio | 2022 | 2021 | |
Cash and cash equivalents | -3,701 | -5,439 | |
Interest bearing loans | 6,781 | 6,154 | |
Net debt | 3,080 | 715 | |
EBITDA [see note 18] | -30 | 7,203 | |
Net debt/EBITDA ratio (must be less than 3.0) | -102.67 | 0.10 |
87 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Debt service coverage ratio | 2022 | 2021 |
EBITDA [18] | -30 | 7,203 |
Income tax paid(-)/received | 124 | -936 |
Replacement investments: property, plant and equipment | -1,088 | -104 |
Replacement investments: intangible assets (non-product, non-acquisition) | -1,439 | -1,163 |
Total | -2,433 | 5,000 |
Interest paid | 294 | 185 |
Redemption loan | 1,588 | 1,334 |
Total | 1,882 | 1,519 |
Debt service coverage ratio (must be higher than 1.1) | -1.3 | 3.3 |
Net debt movements | Cash and cash equivalents | Interest bearing loan – short-term | Interest bearing loan – long-term | Total |
Net debt 1 January 2022 | 5,439 | -1,588 | -4,566 | -715 |
Cash flows | -1,738 | 0 | -627 | -2,365 |
Net debt 31 December 2022 | 3,701 | -1,588 | -5,193 | -3,080 |
Free cash flow | 2022 | 2021 | |
Net cash flow | -1,738 | -460 | |
Dividend paid to shareholders | 1,687 | 2,343 | |
Interest and debt redemption | 1,882 | 1,519 | |
1,831 | 3,402 | ||
88 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
As at 31 December | 2022 | 2021 | |
Trade creditors | 6,110 | 2,592 | |
Other taxes and social securities | 783 | 671 | |
Refund liability | 634 | 608 | |
Accruals | 3,537 | 4,286 | |
Pension liability | 200 | 99 | |
Other payables | 2,783 | 4,903 | |
14,046 | 13,159 |
Other provisions | |||
Carrying amount as at 1 January | 0 | ||
Additions | 495 | ||
Carrying amount as at 31 December | 495 | ||
Current provisions | 495 | ||
Carrying amount as at 31 December | 495 |
89 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Impact of a 5% increase of the US dollar value versus the euro | 2022 | 2021 | Impact of a 5% decrease of the US dollar value versus the euro | 2022 | 2021 |
Net revenue | 109 | 108 | Net revenue | -120 | -119 |
Gross profit | 100 | 97 | Gross profit | -111 | -107 |
Net profit | 233 | 225 | Net profit | -258 | -248 |
Equity | 91 | 94 | Equity | -100 | -104 |
90 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Impact of a 1% increase of 3 months EURIBOR | 2022 | 2021 | Impact of a 1% decrease of 3 months EURIBOR | 2022 | 2021 |
Profit after tax | 0 | 0 | Profit after tax | 0 | 0 |
Equity | 0 | 0 | Equity | 0 | 0 |
91 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Carrying amount | Maturity | |||||
< 3 months | 3–12 months | 1–5 year | > 5 year | Total | ||
As per 31 December, 2022 | ||||||
Trade and other payables | 14,046 | 9,647 | 4,399 | 0 | 0 | 14,046 |
Interest bearing loans | 6,781 | 397 | 1,191 | 5,193 | 0 | 6,781 |
Lease liabilities | 5,550 | 147 | 441 | 2,495 | 2,467 | 5,550 |
26,377 | 10,191 | 6,031 | 7,688 | 2,467 | 26,377 | |
As per 31 December, 2021 | ||||||
Trade and other payables | 13,159 | 7,697 | 5,462 | 0 | 0 | 13,159 |
Interest bearing loans | 6,154 | 397 | 1,191 | 4,566 | 0 | 6,154 |
Derivatives financial instruments | 6 | 2 | 2 | 2 | 0 | 6 |
Lease liabilities | 1,540 | 232 | 969 | 339 | 0 | 1,540 |
20,859 | 8,328 | 7,624 | 4,907 | 0 | 20,859 | |
As at 31 December | 2022 | 2021 | |
Financial assets | |||
Financial assets measured at amortized cost | 12,236 | 16,812 | |
Financial assets measured at fair value through profit or loss | 337 | 283 | |
12,573 | 17,095 | ||
Financial liabilities other than lease liabilities | |||
Financial liabilities measured at amortized cost | 13,674 | 9,417 | |
Financial liabilities measured at fair value through profit or loss | 0 | 6 | |
13,674 | 9,423 | ||
Year | Notional amount | Carrying amount | Contract rate | Change in hedging instrument | Change in hedged item | Ineffectiveness |
2022 | 1,896 | 54 | -0.27% | 60 | -60 | 0.00 |
2021 | 2,979 | -6 | -0.26% | -6 | 6 | 0.00 |
92 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
As per 31 December | Carrying amount | Fair value | Level | Carrying amount | Fair value | Level |
2022 | 2022 | 2022 | 2021 | 2021 | 2021 | |
Financial assets | ||||||
Interest rate swap | 54 | 54 | 2 | 0 | 0 | 0 |
Financial liabilities | ||||||
Interest bearing loans | 6,781 | 6,781 | 2 | 6,154 | 6,154 | 2 |
Interest rate swap | 0 | 0 | 0 | 6 | 6 | 2 |
93 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2022 | 2021 | |
Reconciliation assets | ||
Non-current assets | 44,292 | 38,122 |
Deferred tax liabilities | -4,125 | -5,160 |
Current assets | 17,271 | 21,812 |
Current liabilities | -27,200 | -24,812 |
Net working capital | -9,929 | -3,000 |
Short-term portion interest bearing loan included in current liabilities | 1,588 | 1,588 |
Net tax | -412 | -84 |
Net derivative financial instruments | -54 | 6 |
Cash and cash equivalents | -3,701 | -5,439 |
Invested Capital | 27,659 | 26,033 |
Return on invested capital | 2022 | 2021 | ||
Operating profit | -4,513 | 4,454 | ||
Effective tax (adjusted for exceptional non-cash tax result) | 1,164 | -25.8% | -1,114 | -25.0% |
Net operating profit less adjusted tax (NOPLAT) | -3,348 | 3,340 | ||
Invested capital | 27,659 | 26,033 | ||
Average invested capital | 26,846 | 25,093 | ||
Return On Invested Capital | -12.5% | 13.3% | ||
Asset turnover (revenue / average invested capital) | 1.8 | 1.9 | ||
NOPLAT margin (NOPLAT / revenue) | -7.0% | 7.1% | ||
94 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Business Unit | LRSL | RHB | DACH | Group | Total |
Revenue 2022 | 16,092 | 19,192 | 12,764 | 0 | 48,048 |
Revenue 2021 | 15,961 | 18,890 | 12,014 | 0 | 46,865 |
EBITDA contribution 2022 | 8,753 | 10,409 | -532 | -18,660 | -30 |
EBITDA contribution 2021 | 9,165 | 11,103 | 991 | -14,056 | 7,203 |
Revenue by product type | 2022 | 2021 | |
Print books | 14,937 | 16,865 | |
eBooks | 18,271 | 16,278 | |
Journals | 13,251 | 12,322 | |
Primary Sources | 1,589 | 1,400 | |
Total | 48,048 | 46,865 |
Revenue by region | 2022 | 2021 | |
Western Europe | 26,110 | 25,341 | |
North America | 16,938 | 15,574 | |
Asia Pacific | 3,642 | 3,999 | |
Other | 1,358 | 1,951 | |
Total | 48,048 | 46,865 |
95 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Reconciliation of Revenue and profit before tax | 2022 | 2021 |
Revenue | 48,048 | 46,865 |
Cost of goods sold | -13,780 | -13,027 |
Selling and distribution costs | -9,094 | -7,306 |
General and administrative expenses | -25,204 | -19,329 |
EBITDA | -30 | 7,203 |
Depreciation and Amortization | -3,839 | -2,047 |
Exceptional items including acquisition and integration costs | -644 | -701 |
Operating profit | -4,513 | 4,455 |
Cost of goods sold | 2022 | 2021 | |
Technical production costs | 9,137 | 8,209 | |
Amortization of capitalized content costs [6] | 3,156 | 3,067 | |
Royalties | 1,487 | 1,751 | |
Total cost of goods sold | 13,780 | 13,027 | |
Reconciliation Selling, General and administrative with personnel cost and operating expenses | 2022 | 2021 | |
Selling and distribution expenses | 9,094 | 7,306 | |
General and administrative expenses | 29,687 | 22,079 | |
Total operating expenses | 38,781 | 29,385 |
96 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Personnel cost | 19,056 | 16,349 | |
Operational expenses | 15,885 | 10,991 | |
Amortization of intangible assets (non-product related) [6] | 1,115 | 1,137 | |
Impairment of goodwill [6] | 1,029 | 0 | |
Impairment of intangible assets [6] | 578 | 0 | |
Depreciation of property, plan and equipment [4] | 196 | 144 | |
Depreciation right of use assets [5] | 922 | 764 | |
Total operating expenses | 38,781 | 29,385 |
Personnel costs | 2022 | 2021 | |
Salaries | 15,914 | 13,964 | |
Social security payments | 2,232 | 2,209 | |
Defined contribution pension arrangement | 1,306 | 1,339 | |
Severance payments | 718 | -24 | |
20,170 | 17,488 | ||
Capitalized in content in intangible assets | -1,114 | -1,139 | |
Total personnel costs | 19,056 | 16,349 |
FTEs | Year end 2022 | Year end 2021 |
Publishing | 105.4 [41.7%] | 102.3 [ 41,4%] |
Operations & Technology | 76.2 [30.1%] | 75.7 [ 30,7%] |
Sales & Marketing | 48.8 [19.3%] | 45.4 [ 18,4%] |
Finance, HR, Other | 22.5 [ 8.9%] | 23.5 [ 9.5%] |
Total | 252.9 [100%] | 246.9 [100%] |
97 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2022 | 2021 | ||
Audit of annual financial statements | 472 | 381 | |
Other audit procedures | 0 | 0 | |
Tax services | 0 | 0 | |
Other non – audit assurance engagement | 0 | 0 | |
472 | 381 |
Finance income | 2022 | 2021 | |
Interest received of financial assets measured at amortized cost | 28 | 23 | |
Remeasurement of non-current financial assets measured at fair value through profit or loss | 0 | 0 | |
Foreign exchange rate differences | 80 | 49 | |
Total finance income | 108 | 72 |
Finance expense | 2022 | 2021 | |
Interest expenses on credit facilities measured at amortized cost | -87 | -63 | |
Interest expenses on interest bearing loans measured at amortized cost | -124 | -93 | |
Interest expenses on lease liabilities | -82 | -52 | |
Foreign exchange rate differences | 0 | 0 | |
Total finance expense | -293 | -208 |
98 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Earnings per share | 2022 | 2021 | |
Net income | -3,465 | 3,036 | |
Weighted average number of shares issued | 1,874,444 | 1,874,444 | |
Earnings per share attributable to shareholders of Koninklijke Brill N.V. (in euros) | -1.85 | 1.62 | |
Total paid executive remuneration (in thousands of euros) | 2022 | 2021 | |
Supervisory Board | 91 | 90 | |
Management Board | 1,239 | 1,233 | |
Total paid remuneration | 1,330 | 1,323 | |
Variable payout accrued in the prior year | -185 | -368 | |
Variable component accrued in the current year | 175 | 204 | |
Net expense for executive remuneration | 1,320 | 1,159 |
Share in company | ||||
City | Country | 31-12-2022 | 31-12-2021 | |
Brill USA, Inc. | Boston | USA | 100% | 100% |
Brill Asia Pte Ltd | Singapore | Singapore | 100% | 100% |
Brill Consulting Beijing Ltd | Beijing | China | 100% | 100% |
Brill Deutschland GmbH | Paderborn | Germany | 100% | 100% |
Brill Österreich GmbH | Vienna | Austria | 100% | 100% |
Wageningen Academic Publishers B.V. | Wageningen | Netherlands | 100% | 0% |
99 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
100 |
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COMPANY FINANCIAL STATEMENTS | |
Company statement of financial position as at 31 December 2022 | |
Company statement of profit or loss for the year ended 31 December 2022 | |
Notes to the company financial statements | |
3. Intangible assets | |
4. Property, plant and equipment | |
5. Non-current financial assets | |
6. Trade and other receivables | |
7. Cash and cash equivalents | |
8. Equity | |
9. Provisions | |
10. Non-current liabilities | |
11. Current liabilities | |
12. Commitments | |
13. Financial instruments | |
14. Expenses | |
15. Financial income and expenses | |
16. Events after balance sheet date | |
101 |
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In thousands of euros (before appropriation of profit) | ||||
31-12-2022 | 31-12-2021 | |||
ASSETS | ||||
Non-current assets | ||||
Intangible assets [3] | 33,836 | 33,200 | ||
Property, plant and equipment [4] | 4,174 | 877 | ||
Non-current financial assets [5] | 9,261 | 7,682 | ||
47,271 | 41,759 | |||
Current assets | ||||
Inventories | 1,868 | 2,139 | ||
Trade and other receivables [6] | 8,329 | 9,341 | ||
Cash and cash equivalents [7] | 1,470 | 3,153 | ||
11,667 | 14,633 | |||
Total assets | 58,938 | 56,392 | ||
EQUITY AND LIABILITIES | ||||
Equity [8] | ||||
Share capital | 1,125 | 1,125 | ||
Share premium | 343 | 343 | ||
Legal reserves | 11,575 | 11,868 | ||
Retained earnings | 10,135 | 8,411 | ||
Profit for the year | -3,465 | 3,036 | ||
19,713 | 24,783 | |||
Provisions [9] | 4,859 | 5,161 | ||
Non–current liabilities [10] | 8,897 | 4,937 | ||
Current liabilities [11] | 25,470 | 21,511 | ||
Total Liabilities and Equity | 58,938 | 56,392 | ||
102 |
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In thousands of euros | |||
2022 | 2021 | ||
Revenue | 34,625 | 31,608 | |
Cost of Goods Sold | -10,874 | -8,547 | |
Gross profit | 23,751 | 23,061 | |
Expenses [14] | |||
Selling and distribution expenses | -7,485 | -4,765 | |
General and administrative expenses | -18,408 | -14,443 | |
Net impairment on goodwill and intangible assets | -1,607 | ||
Total expenses | -27,500 | -19,208 | |
Operating profit | -3,749 | 3,853 | |
Finance income [15] | 97 | 136 | |
Finance expenses [15] | -241 | -152 | |
Profit before income tax | -3,894 | 3,837 | |
Income tax expense | 983 | -1,102 | |
Results from subsidiaries, net of tax [5] | -555 | 301 | |
Profit after tax | -3,465 | 3,036 |
103 |
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104 |
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2022 | Publishing rights | Information systems and other | Capitalized content | Goodwill | Assets under constructi on | Total |
As at 1 January | ||||||
Cost | 16,268 | 7,134 | 52,736 | 3,113 | 1,082 | 80,333 |
Accumulated impairment | 0 | 0 | 0 | 0 | 0 | 0 |
Accumulated amortization | -388 | -5,876 | -40,869 | 0 | 0 | -47,133 |
Carrying amount as at 1 January | 15,880 | 1,258 | 11,867 | 3,113 | 1,082 | 33,200 |
Changes in the year | ||||||
Acquisition | 200 | 0 | 0 | 1,718 | 0 | 1,918 |
Investment | 0 | 0 | 2,899 | 0 | 1,432 | 4,331 |
Transfer | 0 | 1,005 | 0 | 0 | -1,005 | 0 |
Reclass and Disposals – at cost | 0 | -18 | 0 | 0 | 0 | -18 |
Impairment | -578 | 0 | 0 | -1,029 | 0 | -1,607 |
Amortization | -95 | -737 | -3,156 | 0 | 0 | -3,988 |
Total changes | -473 | 251 | -258 | 689 | 426 | 635 |
As at 31 December | ||||||
Cost | 16,468 | 8,121 | 55,635 | 4,830 | 1,508 | 86,563 |
Accumulated impairment | -578 | 0 | 0 | -1,029 | 0 | -1,607 |
Accumulated amortization | -483 | -6,612 | -44,025 | 0 | 0 | -51,121 |
Carrying amount as at 31 December | 15,407 | 1,509 | 11,610 | 3,801 | 1,508 | 33,836 |
105 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2021 | Publishing rights | Informati on systems and other | Capitalized content | Goodwill | Assets under construction | Total |
As at 1 January | ||||||
Cost | 16,068 | 6,703 | 49,185 | 3,113 | 309 | 75,378 |
Accumulated amortization | -289 | -5,100 | -37,803 | 0 | -43,193 | |
Carrying amount as at 1 January | 15,779 | 1,602 | 11,382 | 3,113 | 309 | 32,185 |
Changes in the year | ||||||
Acquisition | 0 | 0 | 0 | 0 | 0 | 0 |
Investment | 0 | 0 | 3,551 | 0 | 1,404 | 4,955 |
Transfer | 200 | 431 | 0 | 0 | -631 | 0 |
Reclass and Disposals – at cost | 0 | 0 | 0 | 0 | 0 | 0 |
Amortization | -99 | -776 | -3,066 | 0 | 0 | -3,941 |
Total changes | 101 | -345 | 485 | 0 | 773 | 1,014 |
As at 31 December | ||||||
Cost | 16,268 | 7,134 | 52,736 | 3,113 | 1,082 | 80,333 |
Accumulated amortization | -388 | -5,876 | -40,869 | 0 | 0 | -47,133 |
Carrying amount as at 31 December | 15,880 | 1,258 | 11,868 | 3,113 | 1,082 | 33,200 |
106 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
2022 | Leasehold improve- ments | Furniture & fixtures | IT- hardware | Right-of- use assets | Total |
As at 1 January | |||||
Investment | 890 | 428 | 650 | 1,734 | 3,702 |
Depreciation | -857 | -425 | -493 | -1,050 | -2,826 |
Carrying amount as at 1 January | 33 | 2 | 157 | 684 | 877 |
Changes in the year | |||||
Investment | 0 | 0 | 224 | 3,535 | 3,759 |
Reclass and Disposal | 0 | 0 | 0 | 0 | 0 |
Depreciation | -24 | -2 | -83 | -352 | -462 |
Total changes | -24 | -2 | 140 | 3,184 | 3,297 |
As at 31 December | |||||
Cost | 890 | 428 | 874 | 5,269 | 7,461 |
Accumulated depreciation | -882 | -428 | -576 | -1,402 | -3,288 |
Carrying amount as at 31 December | 9 | 0 | 297 | 3,868 | 4,174 |
Useful life in years | 10 | 5 - 10 | 3 | 0 - 10 |
2021 | Leasehold improve- ments | Furniture & fixtures | IT- hardware | Right-of- use assets | Total |
As at 1 January | |||||
Investment | 890 | 428 | 533 | 1,616 | 3,467 |
Depreciation | -819 | -419 | -436 | -679 | -2,353 |
Carrying amount as at 1 January | 72 | 9 | 97 | 936 | 1,114 |
Changes in the year | |||||
Investment | 0 | 0 | 117 | 118 | 236 |
Depreciation | -38 | -7 | -57 | -371 | -472 |
Total changes | -38 | -7 | 61 | -253 | -237 |
As at 31 December | |||||
Cost | 890 | 428 | 650 | 1,734 | 3,702 |
Accumulated depreciation | -857 | -425 | -493 | -1,050 | -2,826 |
Carrying amount as at 31 December | 33 | 2 | 157 | 684 | 877 |
107 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Investments in group companies | Loans to group companies | Other investments | Total | |
2022 | ||||
Carrying amount as at 1 January | 2,963 | 4,448 | 271 | 7,682 |
Acquired | 783 | 0 | 0 | 783 |
Capital contribution | 750 | -400 | 0 | 350 |
New loans/repayments | 0 | 965 | 0 | 965 |
Result for the year | -555 | 0 | 0 | -555 |
Revaluations | 0 | 0 | 0 | |
Foreign currency differences | 36 | 0 | 0 | 36 |
Carrying amount as at 31 December | 3,977 | 5,013 | 271 | 9,261 |
2021 | ||||
Carrying amount as at 1 January | 2,450 | 890 | 100 | 3,440 |
Acquired | 0 | 3,558 | 0 | 3,558 |
Capital contribution | 50 | 0 | 0 | 50 |
Result for the year | 301 | 0 | 168 | 469 |
Revaluations | 160 | 0 | 3 | 163 |
Foreign currency differences | 2 | 0 | 0 | 2 |
Carrying amount as at 31 December | 2,963 | 4,448 | 271 | 7,682 |
108 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
As at 31 December | 2022 | 2021 | |
Trade receivables | 4,166 | 6,359 | |
Amounts due from group companies | 2,560 | 739 | |
Income tax receivable | 194 | 130 | |
Derivative financial instruments | 54 | 0 | |
Other receivables | 1,355 | 2,113 | |
8,330 | 9,341 |
109 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
As at 1 January | Profit for the year | Dividends paid | Appro- priation of result | Changes legal reserve | As at 31 December | ||
2022 | |||||||
Share Capital | 1,125 | 0 | 0 | 0 | 0 | 0 | 1,125 |
Share premium | 343 | 0 | 0 | 0 | 0 | 0 | 343 |
Currency translation reserve | -303 | 0 | 0 | 36 | 0 | 0 | -267 |
Cash flow hedge reserve | -4 | 0 | 0 | 45 | 0 | 0 | 41 |
Legal reserve capitalized content | 11,868 | 0 | 0 | 0 | 0 | -293 | 11,575 |
Legal reserve group companies | 0 | 0 | 0 | 0 | 0 | 130 | 130 |
Retained earnings | 8,718 | 0 | -1,687 | 0 | 3,036 | 163 | 10,231 |
Profit for the year | 3,036 | -3,465 | 0 | 0 | -3,036 | 0 | -3,465 |
24,783 | -3,465 | -1,687 | 81 | 0 | 0 | 19,713 | |
2021 | |||||||
Share Capital | 1,125 | 0 | 0 | 0 | 0 | 0 | 1,125 |
Share premium | 343 | 0 | 0 | 0 | 0 | 0 | 343 |
Currency translation reserve | -463 | 0 | 0 | 160 | 0 | 0 | -303 |
Cash flow hedge reserve | -16 | 0 | 0 | 12 | 0 | 0 | -4 |
Legal reserve capitalized content | 11,383 | 0 | 0 | 0 | 0 | 485 | 11,868 |
Legal reserve group companies | 0 | ||||||
Retained earnings | 8,650 | 0 | -2,343 | 0 | 2,896 | -485 | 8,718 |
Profit for the year | 2,896 | 3,036 | 0 | 0 | -2,896 | 0 | 3,036 |
23,918 | 3,036 | -2,343 | 172 | 0 | 0 | 24,783 |
110 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Deferred tax liabilities | Other provisions | Total | |||
Carrying amount as at 1 January 2022 | 5,161 | 0 | 5,161 | ||
Changes in the year | |||||
Additions | 0 | 495 | 495 | ||
Charged/credited (-) to profit or loss | (797) | 0 | (797) | ||
Carrying amount as per 31 December 2022 | 4,364 | 495 | 4,859 |
Deferred tax liabilities | Other provisions | Total | |||
Carrying amount as at 1 January 2021 | 4,226 | 0 | 4,226 | ||
Changes in the year | |||||
Additions | 6 | 0 | 6 | ||
Charged/credited (-) to profit or loss | 929 | 0 | 929 | ||
Carrying amount as per 31 December 2021 | 5,161 | 0 | 5,161 |
111 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Interest-bearing loans | Lease liabilities | Total | |||
Carrying amount as at 1 January 2022 | 6,154 | 371 | 6,525 | ||
Changes in the year | |||||
Additions | 2,200 | 3,688 | 5,888 | ||
Redemptions | (1,588) | (178) | (1,766) | ||
Transaction costs loan expensed | 15 | 0 | 15 | ||
Carrying amount as per 31 December 2022 | 6,781 | 3,881 | 10,662 | ||
Remaining lifetime | |||||
Within 1 year | 1,588 | 178 | 1,766 | ||
Between 1 and 5 years | 5,193 | 1,851 | 7,044 | ||
After 5 years | 0 | 1,852 | 1,852 | ||
6,781 | 3,881 | 10,662 |
Interest-bearing loans | Lease liabilities | Total | |||
Carrying amount as at 1 January 2021 | 4,583 | 371 | 4,954 | ||
Changes in the year | |||||
Additions | 2,900 | 2,900 | |||
Redemptions | (1,334) | (1,334) | |||
Transaction costs loan expensed | 5 | 5 | |||
Carrying amount as per 31 December 2021 | 6,154 | 371 | 6,525 | ||
Remaining lifetime | |||||
Within 1 year | 1,588 | 178 | 1,766 | ||
Between 1 and 5 years | 4,566 | 193 | 4,759 | ||
6,154 | 371 | 6,525 |
112 |
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31-12-2022 | 31-12-2021 | ||
Interest bearing loans | 1,588 | 1,588 | |
Trade payables | 4,786 | 1,760 | |
Amounts due to group companies | 4,508 | 2,339 | |
Income tax | 0 | 0 | |
Pension liabilities | 197 | 99 | |
Other liabilities | 2,401 | 4,268 | |
Lease liabilities | 178 | 372 | |
Accruals | 2,079 | 2,592 | |
Deferred income | 9,733 | 8,493 | |
25,470 | 21,511 | ||
113 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
Personnel costs | 2022 | 2021 | |
Salaries | 8,827 | 8,038 | |
Severance payments | 593 | -124 | |
Social security payments | 1,003 | 1,071 | |
Defined contribution pension arrangement | 1,197 | 1,185 | |
11,619 | 10,170 | ||
Capitalized in content in intangible assets | -1,113 | -1,139 | |
10,506 | 9,031 |
FTEs | Year end 2022 | Year end 2021 |
Publishing | 55.1 [ 42,8%] | 53.5 [ 41,6%] |
Operations & Technology | 39.7 [ 30.9%] | 40.9 [ 31.8%] |
Sales & Marketing | 21.9 [ 17.0%] | 19.7 [ 15.3%] |
Finance, HR, Other | 12.0 [ 9.3%] | 14.5 [ 11.3%] |
Total | 128.7 [100%] | 128.6 [100%] |
2022 | 2021 | ||
Amortization | 5,595 | 3,969 | |
Depreciation | 462 | 535 | |
6,057 | 4,504 |
114 |
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115 |
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Name | Number of registered depository receipts |
Jan Niessen | 462,875 |
Jasmin Lange | 500 |
116 |
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Name | Appointed | In office until | Position |
Marco P. Nieuwe Weme, Prof. LL.M. | 2020 | 2024 | Chairman |
Joost C. Kuiper, LL.M. | 2018 | 2022 | Member |
Leni M.T. Boeren, MSc | 2020 | 2024 | Member |
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Name | Appointed | Current term until | Position |
Hélène Vletter-van Dort, Prof. LL.M | 2018 | 2024 | Chair |
Herman A. Pabbruwe, Drs. | 2022 | 2025 | Member |
Tanja Bender, Prof. LL.M | 2017 | 2023 | Member |
Nico Schrijver, Prof. LL.M | 2020 | 2023 | Member |
B R I L L A N N U A L R E P O R T 2 0 2 2 |
B R I L L A N N U A L R E P O R T 2 0 2 2 |