ESG
Report
2022
Annual
Report
2022
Published in April 2023 by Kirk Kapital
Photos: PressConnect, Anders Sune Berg & Milestone Event – Jesper Sunesen
Concept and Design: Sunrise A/S
Company reg. (CVR) no. 3115 9857
Annual Report for 1 January - 31 December 2022
The Annual Report was presented and adopted at the
Annual general meeting of the company on 25 April 2023.
01
Welcome to Kirk Kapital
07 Our Heritage
08 What We Do
12 2022 at a Glance
14 Financial Highlights
03
Board & Management
Composition
32 Board of Directors &
Executive Management
02
Our Business Activities
18 Activities Overview
20 Strategic Investments
24 Financial Investments
26 Vejle Investments
28 Business & Financial Risk
04
Financial Statements
36 Comprehensive Income Statement
37 Balance Sheet Statement
38 Changes in Equity Statement
39 Cash Flow Statement
40 Notes
68 Management’s Statement
70 Independent Auditor’s Report
05
ESG
78 Letter from CEO
82 Kirk Kapital’s ESG Framework
83 ESG within Investment Activities
85 Strategic Investments
86 Financial Investments
88 Inside Kirk Kapital
Annual Report 2022 ESG Report 2022
01
Welcome to Kirk Kapital
6
Annual Report Welcome to Kirk Kapital
Continuing the legacy of Lego
1932 was the year Ole Kirk Christiansen began craft-
ing wooden toys in his modest workshop in Billund.
By 1934 he had begun selling toys under the now
world-famous name LEGO. Persevering through many
setbacks, the business eventually blossomed into what
it is today – the world’s most successful toy company.
This is the heritage of Kirk Kapital. Today, almost 90
years later, this same perseverance, imagination and
ingenuity is what forms the foundation of Kirk Kap-
ital’s business activities.
Rooted in Vejle
In 2007, the Kirk Johansen family parted from Kirk-
bi A/S, and consequently LEGO, in order to establish
their own investment activities and organisation through
Kirk Kapital. Our shareholders, and Kirk Kapital, are
deeply connected to the area in and around the city of
Vejle. A manifestation of our respect and commitment
to the city of Vejle is Fjordenhus. Fjordenhus both serves
as the headquarter of Kirk Kapital, but, more important-
ly, is a towering work of art that greets all visitors to Vejle
created by the world-famous artist Olafur Eliason.
Partnering with family and companies
In connection with the launch of a new investment
strategy, Kirk Kapital established a second office in Co-
penhagen in 2017, and expanded the organisation. In
2020, a fully owned Kirk Kapital subsidiary obtained
a license with the Danish FSA, legally enabling us to
manage other families’ wealth also. Today, Kirk Ka-
pital specialises in making strategic minority invest-
ments in tomorrow’s best companies as well as manag-
ing multiple financially invested portfolios, uniquely
tailored to the families we serve.
Descendants of a pioneer
Our shareholders are the Kirk Johansen families, who
are Ole Kirk Christiansen’s descendants.
Our Heritage
7
Annual Report Welcome to Kirk Kapital
Family first
At Kirk Kapital, our purpose is to create long-term pros-
perity for the families of our shareholders, partners,
and employees. We manage and grow family-owned
capital, based on strong family values. Family is very
important to us, and it provides a solid foundation for
business, while highlighting the importance of family
life outside work. These values inspire a strong sense
of belonging – not just internally, but also among the
companies and families with whom we partner. Every
one of our partnerships is built on trust, responsibility,
and a longer-term commitment. We are proud of these
tight bonds and collaborations.
Focused on success
Founded in our family DNA, our key values are Com-
petence, Dedication, and Integrity. At Kirk Kapital, we
serve our purpose by having a relentless focus on being
among the best at what we set out to do, while operating
with the highest standards of professional behaviour
and ethics. The latter also evidenced by our Environ-
mental, Social, and Governance (ESG) ambitions, which
now form an integral part of our overall long-term am-
bitions. All our investment activities are centred around
our motto: “Invest, Collaborate and Create”. Our main
investment activity is centred around our two divisions:
Strategic Investments and Financial Investments.
Our scope: Scandinavian medium and
larger-sized companies
Within Strategic Investments, Kirk Kapital invests in
larger minority shareholdings (25-50%) in companies
while applying an active ownership agenda through
board representation. Our strategic investment scope
is Scandinavian medium and larger-sized companies
that have unique, market-leading positions in long-
term growth industries. Currently, the portfolio in-
cludes 16 companies.
What we do
8
Annual Report Welcome to Kirk Kapital
The highest quality wealth management
Through Kirk Kapital Fondsmælgerselskab A/S,
which is regulated by the Danish FSA, Kirk Kapital
manages multiple individual portfolios, where each
portfolio is tailored to our partners’ precise require-
ments and wishes. The portfolios consist of a wide
range of investments including fixed income, listed
equities and alternatives. Our independency, as well as
combined assets-under-management size, provide our
families with the highest quality wealth management
services while maintaining cost efficiency. Currently,
we manage 20 portfolios, including Kirk Kapital’s own
Financial Investments portfolio.
Committed to Vejle
As a supplement to our main investment activities,
Vejle Investments holds our investment activities cen-
tred around the city of Vejle. These are mainly real
estate investments in Fjordenhus, Utoft Plantage and
Havneøen. Our strategic scope is to provide continued
support to Fjordenhus and Utoft Plantage, thus main-
taining our roots in Vejle and our commitment to for-
estry and wildlife.
9
Annual Report Welcome to Kirk Kapital
10
Annual Report Welcome to Kirk Kapital
“
At Kirk Kapital,
our ambition is
to do our part in
helping to build
a better world.
”
Kim Gulstad, CEO
11
Annual Report Welcome to Kirk Kapital
Consistent progress
2022 was a year of continued progress for Kirk Kapital.
We spent it delivering on our long-term strategy and
our purpose of creating long-term prosperity for the
families of our shareholders, employees, and partners.
An extraordinary investment year
2022 was truly an extraordinary year in the financial
markets. Global publicly listed shares lost 14% while
Nasdaq lost 33% (both in DKK), losses not seen since
the financial crisis in 2008. Simultaneously, both
Danish government bonds and Danish real estate
mortgages lost 20%. Hence, 2022 proved to be a tru-
ly challenging year for the financial markets. In light
of this exceptionally challenging environment, I am
very proud and humbled to state that our investment
result in 2022 was DKK 1.6 billion. This is – once
again – a record result in the history of Kirk Kapital.
Since the launch of our revised strategy in 2017, Kirk
Kapital has in the 5-year period between 2018 – 2022
generated a total investment result of DKK 4.6 bil-
lion, or an average 13% equity return, while paying out
aggregated dividends of DKK 262 million. At the end
of the period, the equity value was DKK 8.1 billion.
Strong results from
Strategic Investments
The 2022 result was derived from an exceptionally
strong result from our Strategic Investments, which
gained one-off support from re-valuations from sev-
eral partial divestitures. Our Financial Investments
delivered a smaller negative result, which we consider
satisfactory, not least considering the general market
developments.
The financially invested portfolios Kirk Kapital man-
aged on behalf of external families depicted a similar
picture as Kirk Kapital’s own financially invested port-
folio. We continue to further enhance the quality and
cost effectiveness of our service. At the end of the pe-
riod, the external assets-under-management totalled
DKK 5.5 billion.
Tour de France
The start of the third stage of the Tour de France
took place at Kirk Kapital’s Havneøen in Vejle. We
were both pleased and proud to be able to make the
square available, enabling the whole world to see what
the city of Vejle has to offer. Furthermore, we also
2022 at a Glance
12
Annual Report Welcome to Kirk Kapital
co-sponsored a permanent art installation celebrating
the Tour de France’s start in Vejle. Kirk Kapital took
the opportunity to invite shareholders, employees,
friends, and families to celebrate this unique event at
Fjordenhus.
Progress on ESG
I am proud that Kirk Kapital is a UN Global Compact
signatory. Simultaneously with the 2022 Annual Re-
port, we are publishing our 2022 ESG Report. ESG
has now become an integral part of our strategy and
is embedded throughout our internal operations and
investment activities.
Internally, we are focussing on UN SDG 5 (gender
equality), 8 (decent work and economic growth), 13
(climate action), and 16 (peace, justice, and strong insti-
tutions). During 2022, we have, for example, improved
parental leave conditions, taken the initiative to map
Kirk Kapital’s CO footprint, and identified concrete
initiatives to decrease it. I am especially proud to see
that our employee satisfaction scores in our annual
surveys continues to be high.
Looking forward to 2023
In summary, 2022 has been a fantastic year, both when
it comes to our financial performance, which was sig-
nificantly above our expectation going into 2022, and
our progress on our long-term strategy.
For 2023, we expect a positive investment result of
DKK 450 million or above. This is assuming financial
returns in line with our long-term market forecasts.
However, considering the continued high volatility
on the financial markets, the assumption is associated
with significant risk. In past years, we have seen signif-
icant deviation from the expected investment result.
No events have occurred after the balance sheet date
which are considered to have a material impact on the
assessment of the Annual Report.
Kim Gulstad, CEO
14.4DKKb
Total Assets-Under-Management
8.1DKKb
Book Equity Value
13%p.a.
5-Year Equity Return
16
Portfolio Companies
20
Wealth Management Portfolios
26
Number of Employees
13
Annual Report Welcome to Kirk Kapital
Key Ratios
Return on Equity
Solvency Ratio
Return on Invested Capital
Return on Invested Capital
per Investment Catagory:
Strategic Investments
Financial Investments () ()
Vejle Investments () () () ()
Financial
Highlights
14
Annual Report Welcome to Kirk Kapital
Income Statement
DKK (millions)
Strategic Investments , ,
Financial Investments () ()
Vejle Investments () () () ()
Net Investment Result , ,
Comprehensive Income , ,
Balance Sheet
DKK (millions)
Strategic Investments , , , , ,
Financial Investments , , , , ,
Vejle Investments
Total Investment Assets , , , , ,
Tot al Assets , , , , ,
Total Equity , , , , ,
15
Annual Report Welcome to Kirk Kapital
02
Our Business Activities
Strategic Investments
• Larger minority positions
(25-50%) in Scandinavian
medium- and larger-sized
companies having market-
leading positions in long-term
growth industries
• Active long-term
minority owner
Key Activities
Financial Investments
• General wealth management
across asset classes
• Asset allocation
• Discretionary Portfolio
Management
Vejle Investments
• Predominantly holds our
investment activities centered
around the city of Vejle
• Mainly real estate investments
in Fjordenhus, Utoft Plantage
and Havneøen
Family Office
• General assistance and advice
in relation to finances, tax,
bookkeeping, administration,
etc.
• Property administration
and maintenance
Activities Overview
Investment Activities
18
Annual Report Our Business Activities
Kirk Kapital’s
Investments
Financial
Investments
Vejle
Investments
Strategic
Investments
% (excl. client’s managed funds)
Cash 5%
Equities 37%
Fixed Income 15%
Alternatives 43%
5%
70%
25%
19
Annual Report Our Business Activities
Tomorrow’s best companies
Kirk Kapital acquires larger minority shareholdings (25-
50%) in companies, while applying an active ownership
agenda through board representation. Our strategic
investment scope is Scandinavian medium- and larg-
er-sized companies that have unique and market-lead-
ing positions in long-term growth industries. Further-
more, our focus concentrates on business-to-business
companies that offer either a service or a product, based
on a capital light asset setup. In other words, Kirk Kapi-
tal invests in tomorrow’s best companies.
A tailored approach
Kirk Kapital’s unique model for active minority invest-
ments ensures the independence of our partners while
supplying the best possible conditions for their last-
ing success. We achieve this by providing active board
representation, the benefits of our toolbox, and shared
best practice across our portfolio. Common to all cases
is a tailored approach, finely calibrated to our partners’
requirements and precise needs. Altogether this cre-
ates the best conditions for each company’s long-term
successful development.
Taking a sustainable perspective
Rooted in our family values, we have continued our
structured work on ESG. We utilise our internally
developed ESG compass throughout our investment
process. Sustainability is an integral part of the due
diligence process when acquiring new companies, and
a sustainability board engagement policy has been im-
plemented which all Kirk Kapital representatives are
obliged to follow.
Additions to the portfolio
Currently, the portfolio includes 16 companies. In
2022, we added Promon, Cookie Information and
Mobilhouse to our portfolio. Promon is a global,
market-leading provider of next generation applica-
tion-shielding software. Cookie Information is the
70%
Share of Assets
Dec. 2022
Strategic
Investments
20
Annual Report Our Business Activities
Development in Assets and Return
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
60
55
50
45
40
35
30
25
20
15
10
2,169
3,043
3,426
4,293
6,201
2018 2019 2020 2021 2022
DKK (millions) %
Scandinavian market-leading provider of consent
solutions for websites that ensure GDPR compliance.
Mobilhouse is a Danish market-leading provider of
temporary modular buildings. Simultaneously, we
led the formation of a new ownership consortium in
FeMD, in which, going forward, we will own 40%
of the company while ATP and Lundbeckfond-
en will each own 30%. Thereby, Kirk Kapital in-
creased its ownership stake from 30% to 40%. Final-
ly, we have reduced our shareholding in Scanmetals
from 38% to 33%, where Core Sustainability Capital
has been invited in as a new 33% shareholder. All in
all, 2022 has been a good year with abnormally high
transaction activity.
Results speak for themselves
Our investment result in 2022 is DKK 1,746 million,
or 38% return, and the asset value by year-end is DKK
6,201 million. The aggregated investment result over
the past 5 years is DKK 4,443 million, or 27% p.a. re-
turn. The result in 2022 is positively impacted by sev-
eral one-off value adjustments, and in this light, the re-
sult is significantly above our expectations. The result
over the past 5 years is also well above our long-term
result expectations.
16
Portfolio Companies
2
UN Global Compact
Signatories
+11DKKb
Aggregated Revenue
+3,800
Aggregated Number
of Employees
Assets ROA
21
Annual Report Our Business Activities
Investments
World-leading manufacturer of quality playground equip-
ment, outdoor fitness, and outdoor furniture designed to
promote development through play and movement
Software company providing Configure Price Quote
(CPQ) solutions to global industrial, automotive, and
pharmaceutical companies
World leader in packaging for processing of frozen
fish blocks, frozen fillets, and breaded products
within the white-fish industry
IT consultancy service company focusing on engaging
top IT talent and offering services within Consulting,
Infrastructure, Security, and Development
Leading int. rental company within cold storage solutions.
Rental divisions incl. cold storage (Arctic Store®), ISO con-
tainers and self-storage sites across Europe and Australia.
Aftermarket provider of used serviceable wheels and
brakes for airlines worldwide offering a simple alternative
to traditional component management
International provider of end-to-end solutions of foldable
IBC containers, Bag-In-Box liners / bags, container
fittings, filling, and emptying equipment
Developer and manufacturer of innovative hemostatic
products used by health care professionals in the fields
of surgery and diagnostics globally
Year of investment Stake Partner Revenue, ‘21
2014 27% Family DKKm 2,382
Year of investment Stake Partner Revenue, ‘21
2017 33% Private Equity DKKm 214
Year of investment Stake Partner Gross Profit, ‘21
2018 35% Management DKKm 80
Year of investment Stake Partner Revenue, ‘21
2019 26% Private Equity DKKm 583
Year of investment Stake Partner Revenue, ‘21
2019 30% Family DKKm 711
Year of investment Stake Partner Revenue, ‘21
2018 & 2021 26% Private Equity DKKm 326
Year of investment Stake Partner Gross Profit, ‘21
2018 40% Family Foundation DKKm 110
Year of investment Stake Partner Revenue, ‘21
2016 & 2022 40% Pension Fund & Foundation DKKm 720
22
Annual Report Our Business Activities
Leading European metal recycling company operat-
ing with innovative technology for optimal recovery
and refinement of metallic waste
Largest Danish full-service monument company
providing customers support from selecting the
stone, designing, and engraving, to installation
Globally leading Norwegian manufacturer of
high-quality omega-3 concentrates utilising state-of-
the-art production equipment
Software company providing next-gen application
shielding software safeguarding applications, used on
+300m devices globally, from malware attacks
Danish temporary modular buildings provider offering
sustainable modular solutions for rent for a variety of
purposes incl. office facilities and day care.
Danish Consent Management Platform providing cookie
consent solutions for websites and mobile apps that
ensure GDPR compliance for +3,000 customers
Manufacturer of propagation systems, known as the Elle-
pot system, consisting of machines, specially developed
and patented paper, and trays for growers worldwide
Scandinavian manufacturer of sustainable wood
packaging solutions from standard pallets and takeaway
boxes to packaging for wind turbine blades
Year of investment Stake Partner Revenue, ‘21
2019 33% Management DKKm 902
Year of investment Stake Partner Gross Profit, ‘21
2020 45% Family & Owners DKKm 78
Year of investment Stake Partner Gross Profit, ‘21
2021 48% Family & Owners DKKm 67
Year of investment Stake Partner Gross Profit, ‘21
2022 40% Management DKKm 16
Year of investment Stake Partner Revenue, ‘21
2022 50% Management DKKm 116
Year of investment Stake Partner Revenue, ‘21
2022 34% Private Equity DKKm 69
Year of investment Stake Partner Revenue, ‘21
2021 32% Family DKKm 346
Year of investment Stake Partner Revenue, ‘21
2020 40% Management DKKm 1,372
23
Annual Report Our Business Activities
Multiple portfolio management
Kirk Kapital (through Kirk Kapital Fondsmægler-
selskab A/S) manages multiple individual portfolios
tailored to our partners’ precise needs. All portfolios
managed consist of a wide range of investments in-
cluding listed equities, fixed income, and alternatives.
The largest portfolio is Kirk Kapital’s own Financial
Investments portfolio of DKK 2,294 million. The ex-
ternal assets-under-management totals DKK 5.5 bil-
lion. Currently, we manage 20 portfolios.
A sustainable core
Based on our family values, we have continued our
structured work on ESG. To do this we utilise our in-
ternally developed ESG Compass throughout our in-
vestment process and we have adopted the UN’s Prin-
ciples for Responsible Investment. Furthermore, we
have an ESG committee that continuously monitors
and challenges our work.
Worldwide impact
2022 was truly an extraordinary year in the financial
markets. Global publicly listed shares lost 14% while
Nasdaq lost 33% (both in DKK), losses not seen since
the financial crisis in 2008. Simultaneously, both Dan-
ish government bonds and Danish real estate mortgag-
es lost 20%. From a macro point of view, this in part
was driven by the war in Ukraine and globally strong
inflationary forces. Hence, 2022 proved to be a truly
challenging year for the financial markets. The impact
of this turbulence was also visible in Kirk Kapital.
25%
Share of Assets
Dec. 2022
Financial
Investments
24
Annual Report Our Business Activities
Development in Assets and Return
3,000
2,500
2,000
1,500
1,000
500
0
30
25
20
15
10
5
0
-5
-10
-15
1,748
2,108
2,152
2,511
2,294
2018 2019 2020 2021 2022
DKK (millions)
Satisfactory results despite challenges
Kirk Kapital’s own Financial Investments portfolio
generated an investment result of DKK -160 million,
or -7% return, and the asset base by year-end is DKK
2,294 million. The negative result is due to challenging
public market developments in both equities and fixed
income. However, public market losses have been par-
tially offset by a sound development in the alternative
or private markets exposure. All in all, the 2022 result
is satisfactory, despite the result being below our long-
term return expectations.
The aggregated investment result over the past 5 years
is DKK 471 million, or 4% p.a. return. This longer-term
return is broadly in line with our longer-term return
expectations.
20
Wealth Management
Portfolios
90%
External Managers who are
UN PRI Signatories
58
Total Number of
External Managers.
1,126
Total Number of Trades
in 2022. Excl. FX
Assets ROA %
25
Annual Report Our Business Activities
Vejle in focus
Vejle Investments predominantly holds our invest-
ment activities centred around the city of Vejle. These
are mainly real estate investments in Fjordenhus, Ut-
oft Plantage and Havneøen. Our strategic scope is to
maintain and develop Fjordenhus and Utoft Plantage,
further strengthening our roots in Vejle and our com-
mitment to forestry and wildlife.
Havneøen progress
In 2022, we completed the construction of the build-
ings Zleep Hotel and Kirk Suites on Havneøen. The
construction of a building on the last available plot
on Havneøen is progressing as planned and is expect-
ed to be completed during 2023. This will finalise the
Havneøen project, a project initiated more than 10 years
ago. Kirk Kapital is proud of the outcome of this project
and it testifies to our veneration of and commitment to
the city of Vejle.
Results in line with expectations
Our investment result in 2022 is DKK 18 million, and
our net asset base by year-end is DKK 429 million. The
result is positively impacted by a market value adjust-
ment of an interest rate swap while the underlying result
broadly is in line with our expectations.
5%
Share of Assets
Dec. 2022
Vejle
Investments
26
Annual Report Our Business Activities
Development in Assets and Return
1,000
900
800
700
600
500
400
300
200
100
0
20
15
10
5
0
-5
-10
-15
-20
930
467
517
377
429
2018 2019 2020 2021 2022
DKK (millions) Assets ROA %
27
Annual Report Our Business Activities
Managing risk
As a family-owned business and investment compa-
ny we are widely exposed to financial risks, especially
those relating to market risk, with an exposure to pub-
licly traded securities. Our three investment divisions
are managing financial risks with the objective to cre-
ate long-term prosperity for the families of our share-
holders and business partners. In this light, we have
not taken any significant risks that could be referred
to as out of the ordinary, considering the extent of our
activities as a business and investment company. For
further information about financial risk management,
refer to note 6 Financial Risk Management.
Other statutory statements
In accordance with Danish legislation, Kirk Kapital
has prepared statutory statements in relation to gender
under-representation in management, on data ethics
and Corporate Social Responsibility which forms part
of Kirk Kapital’s ESG Report. The report can be found
in chapter 5 of this document.
Business &
Financial Risk
28
Annual Report Our Business Activities
29
Annual Report Our Business Activities
03
Board & Management
Composition
Board of Directors
Executive Management
Casper Kirk
Johansen
Chairman of the Board
Anders Kirk
Johansen
Board Member
Birgitte
Nielsen
Board Member
Jens
Moberg
Board Member
Peter Beske
Nielsen
Board Member
Kim
Gulstad
CEO
32
Annual Report Board & Management Composition
“
Every one of our
partnerships is built
on trust, responsibility,
and a longer-term
commitment.
We are proud of these
tight bonds and
collaborations.
”
Kim Gulstad, CEO
33
Annual Report Board & Management Composition
04
Financial Statements
Comprehensive
Income Statement
36
Annual Report Financial Statements
DKK
(millions)
Note 2022 2021
Strategic Investments
Financial Investments
Vejle Investments
3
4
5
(160 )
(94 )
Net
Investment
Result
7
(185 ) (158 )
Other
Operating
Income
Expenses
Other
Financial
Income
(8 )
(1 )
Comprehensive
Income
before
Tax
Tax
9
(64 )
Total
Comprehensive
Income
for
the
Year
Balance Sheet
Statement
37
Annual Report Financial Statements
Equities
&
Liabilities
DKK
(millions)
Note 2022 2021
Share Capital
Retained Earnings
Proposed
Dividend
for
the
Year
11
Total
Equity
Other
Payables
Lease
Liabilities
Deferred
Tax
Liabilities
9
Total
Non-Current
Liabilities
6
Credit
Institutions
Tax Payables
Other
Payables
6
Total
Current
Liabilities
Total Liabilities
Total
Equity
&
Liabilities
Assets
DKK
(millions)
Note 2022 2021
3
4
5
Strategic
Investments
Financial
Investments
Vejle
Investments
Lease Assets - Right-of-use Assets
Total
Non-Current
Assets
9
Tax Receivables
Other
Receivables
Cash
&
Cash
Equivalents
Total
Current
Assets
Total
Assets
Changes in Equity
Statement
38
Annual Report Financial Statements
Change
in
Equity
Statement
2021
DKK
(millions)
Share
Capital
Retained
Earnings
Proposed
Dividend Total
Change
in
Equity
Statement
2022
DKK
(millions)
Share
Capital
Retained
Earnings
Proposed
Dividend Total
Equity at 01.01.2022
Profit for
the Period
Other
Comprehensive
Income
Total Comprehensive
Income
for
the
Period
Transactions with Owners in their
Capacity as Owners:
Ordinary
Dividend
Paid
Dividend
(82 )
(68 )
(68 )
Total
Dividend
for
the
Period
(82 )
(68 )
Equity at 31.12.2022
Equity at 01.01.2021
Profit for
the Period
Other
Comprehensive
Income
Total Comprehensive
Income
for
the
Period
Transactions with Owners in their
Capacity as Owners:
Ordinary
Dividend
Paid
Dividend
(68 )
(55 )
(55 )
Total
Dividend
for
the
Period
(68 )
Equity at 31.12.2021
Cash Flow
Statement
Accounting policy
The cash flow statement shows the cash flows for the
year broken down by other investing and financing
activities, changes for the year in cash and cash equiv-
alents as well as the company’s cash and cash equiva-
lents at the beginning and end of the year.
Cash flows from other activities are calculated as the net
comprehensive income for the year adjusted for changes
in working capital and non-cash operating items such
as depreciation, amortisation and impairment losses,
and provisions. Working capital comprises current as-
sets less short-term debt excluding items included in
cash, investment activities and cash equivalents.
Cash flows from investing activities comprise net cash
flows to and from the three investment portfolios.
Cash flows from financing activities comprise cash
flows from the raising and repayment of long term
debt as well as payments to and from shareholders.
*Gross cash flow from Strategic Investments were DKK 1,509 million in cash inflow and DKK 1,672 million in
cash outflow.
39
Annual Report Financial Statements
DKK
(millions)
2022 2021
Comprehensive Income for the Year
Adjustments - Net Investment Result
Changes in Net Working Capital
(1,604 )
(50 )
(1,569 )
Net
Cash
Flow
from
Other
Activities
(195 )
(45 )
(163 )
Cash
Flow
from
Strategic
Investments*
Cash
Flow
from
Financial
Investments
Cash Flow from Vejle Investments
(28 )
Cash
Flow
from
Investment
Activities
(139 )
(393 )
Proceeds
from
Credit
Institutions
Repayment of Credit Institutions
Dividend
Paid
(68 ) (55 )
Cash
Flow
from
Financing
Activities
(448 )
Net Cash Flow for the Year
Cash
&
Cash
Equivalents,
Beginning
of
the
Year
(1 )
Cash
&
Cash
Equivalents
at
End
of
the
Year
Notes
01
Accounting
Policies
04
Financial
Investments
02
Critical Accounting
Estimates & Judgements
05
Vejle
Investments
03
Strategic
Investments
06
Financial Risk
Management
40
Annual Report Financial Statements
08
Staff Expenses
11
Share
Capital
14
Fees to Auditors Appointed
at the General Meeting
09
Tax
12
Commitments &
Contingent Liabilities
15
Events after
the Balance Sheet
07
Expenses
10
Related
Parties
13
Investments in
Subsidiaries & Accociates
41
Annual Report Financial Statements
Accounting
Policies
01
Accounting policies
The financial statements are presented in Danish Kro-
ner (DKK), as this is the company’s functional curren-
cy. The financial statements have been rounded to the
nearest million.
The financial statements for Kirk Kapital have been
prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the Inter-
national Accounting Standards Board (IASB) and as
adopted by the European Union as well as additional
Danish disclosure requirements applying to entities of
reporting class C for large enterprises.
Kirk Kapital has during the year changed its status to
become an investment entity under IFRS 10 whereby
it ceases to consolidate its subsidiaries. Besides this the
accounting policies used are unchanged from last year.
Investment entity
Over the past 5 years Kirk Kapital’s operating activities
within shipping and aviation have gradually been exit-
ed and are now less material. Kirk Kapital has therefore
decided to change its status under IFRS to investment
entity due to it having the following characteristic un-
der IFRS 10.27:
• It holds funds from multiple investors
• Its business objective is to invest funds with the pur-
pose of capital appreciation, profit on divestments
and/or dividends
• Its investments are measured and evaluated at fair
value
In accordance with IFRS 10 Kirk Kapital does not
consolidate its subsidiaries and does not apply IFRS 3
when obtaining control over new investments.
42
Annual Report Financial Statements
The change does not have any impact on the 2021
year end result as the total comprehensive income for
2021 is unchanged at DKK 1,354 million. In brief, it
has not materially affected the comprehensive income
statement within line items net investment result DKK
+28 million, other operating income DKK -30 million,
expenses DKK -11 million and tax DKK +13 million.
Total assets and liabilities have decreased DKK 153 mil-
lion – mainly debt with collateral and intercompany
debt, offset in relevant asset values.
In statement of cash flow, then, cash position allocated
to Financial Investments is considered an investment
activity and not included in net cash positions as earlier
years. Further, movements on intercompany balances
are part of each investment category and are thus in-
vestment activity and not a change in working capital.
Foreign currency translation
Transactions and balances
Transactions in currencies other than the company’s
functional currency are translated into the functional
currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses result-
ing from the settlement of such transactions and from
the translation of monetary assets and liabilities de-
nominated in foreign currencies at year end exchange
rates are generally recognised in profit or loss.
Comprehensive income statement
Other operating income and expenses
Other operating income and other expenses comprise
items of a secondary nature to the main activities of
the company.
Financial income and expenses
Financial income and expenses include interest, real-
ised and unrealised exchange adjustments, price ad-
justment of securities, amortisation of mortgage loans.
Leases
The right-of-use asset and corresponding lease liability
will be recognised at the commencement date, the date
the underlying asset is ready for use. The lease terms
may include options to extend or terminate the lease
when it is reasonably certain that Kirk Kapital will ex-
ercise that option.
01
43
Annual Report Financial Statements
Depreciations are done following the straight-line meth-
od over the lease term or the useful life of the assets.
Kirk Kapital applies the short-term lease recognition
exemption for lease contracts that, at the commence-
ment date, have a lease term of 12 month or less for all
classes of underlying assets, and the exception for lease
contracts for which the underlying asset is of low value.
Right-of-use assets normally have the following lease terms:
Rental of Premises 1-30 years
Other Assets 1-5 years
Financial highlights
Explanation of financial ratios:
Solvency Ratio =
Return on Equity =
The financial ratios have been computed in accordance
with the latest guidelines issued by the Danish Finance
Society.
01
Equity at year-end x 100
Total Assets at year-end
Net Profit for the year x 100
Average Equity
44
Annual Report Financial Statements
Critical Accounting
Estimates & Judgements
02
In the preparation of the financial statements accord-
ing to IFRS, management is required to make certain
estimates: those financial statement items that cannot
be reliably measured must be estimated, as the value
of assets and liabilities often depends on future events
that are somewhat uncertain.
The judgments, estimates and assumptions made are
based on historical experience and other factors that
management considers to be reliable, but which by
their very nature are associated with uncertainty and
unpredictability. These assumptions may prove in-
complete or incorrect, and unexpected events or cir-
cumstances may arise.
Critical accounting estimates
Financial assets are either measured at amortised cost
or fair value through profit and loss. Assets and liabil-
ities at fair values have been measured using either of
the below three levels of fair value hierarchy:
Level 1:
Quoted prices in active markets for identical markets
Level 2:
Inputs other than quoted prices included within
level 1 that are observable for the assets either
directly or indirectly
Level 3:
Input for the liabilities and assets that are not based
on observable market data. These fair value measure-
ments are from either external portfolio managers or
by management estimates using multiples from simi-
lar investments or using fair value calculations models
such as DCF models.
For each investment category it is described which lev-
el of fair value hierarchy is used.
45
Annual Report Financial Statements
Strategic
Investments
Accounting policy
Strategic Investments are defined as larger illiquid mi-
nority investments with an active ownership agenda.
The portfolio is shown on page 22 & 23. The invest-
ments are owned through the subsidiary Kirk Kapital
Strategic Investments A/S.
Realised and unrealised gains and losses on fair val-
ue adjustments are recognised in the comprehensive
income statement in the financial year in which they
arise. Realised gains and losses on sale of financial as-
sets are calculated on the basis of the valuation begin-
ning of the financial year. Purchase and sale of invest-
ments are recognised on trade date. Dividends from
portfolio companies are assumed realised at fair value
and thus wihout comprehensive income impact. Real-
ised direct transaction costs and earnings are included
under realised gains and losses. Indirect costs in Kirk
Kapital Strategic Investments A/S are included under
expenses, net of any intercompany earnings and costs.
The minority investments are recognised in accord-
ance with IFRS 9 at fair value through profit and loss.
The minority investments are initially recognised at
fair value and subsequently adjusted to fair value.
Dividends received from Strategic Investments are
recognised as unrealised gains and losses.
Investment properties are recognised at cost compris-
ing the acquisition price and costs of acquisition and
subsequently measured at fair value. Other investment
assets are mainly investments in aircraft together with
other run-off investments which are recognised and
measured under the equity method less any assets at-
tributable to other investment categories. The underly-
ing assets are measured at fair value.
03
Significant accounting
estimates and judgements
Valuation of investments in Strategic Investments at
fair value is based on estimates and assumptions as
regards to the fair value of each individual company
in the Strategic Investments portfolio, using valuation
hierarchy 3. These investments amount to DKK 6,201
million in 2022 (DKK 4,293 million in 2021).
For the majority of the investments (DKK 5,897 mil-
lion in 2022 and DKK 3,700 million in 2021), the fair
value is primarily estimated using last-twelve-month
valuation metrics (LTM Metric) and a valuation multi-
ple. The value derived is adjusted for net interest-bear-
ing debt (NIBD).
The LTM Metric and NIBD are based on normalised
reported figures by the portfolio companies. The LTM
46
Annual Report Financial Statements
DKK (millions)
Investment Result
Realised Gains & Losses for the Year, Net
Unrealised Value Adjustments, Net , ,
Total Strategic Investments , ,
Invested Capital
Investment in Portfolio Companies at Fair Value , ,
Investment Properties
Other Investments
Total Strategic Investments , ,
Metrics applied are EBITDA, earnings and revenue
depending on the type of company. An increase in the
portfolio’s share of NBID of DKK 100 million will affect
the profit and loss account negatively by DKK 100 mil-
lion, while a change in the LTM Metrics of 10% will affect
the profit and loss account by around DKK 762 million.
The most subjective parameter in the valuation model
is multiples estimated to be a reasonable proxy of mar-
kets multiples of comparable companies. The valua-
tion multiples are set with reference to relevant market
multiples and transaction multiples. If the valuation
multiples used are changed by 1x, then it would have
an impact in the comprehensive income statement of
around DKK 733 million.
It is management’s assessment that the assumptions
and estimates used are reasonable.
03
47
Annual Report Financial Statements
Financial
Investments
04
Accounting policy
Financial Investments is a portfolio of financial assets
managed by Kirk Kapital Fondsmæglerselskab A/S who
invest the portfolio to maximise the risk-adjusted return.
Financial assets categorised as Financial Investments
are recognised in accordance with IFRS 9 at fair value
through statement of comprehensive income. Invest-
ments are initially recognised at fair value and subse-
quently adjusted to fair value. Dividends received from
investments are included in value adjustments.
Costs directly attributable to Financial Investments
are allocated to the comprehensive income as realised
gains and losses.
Financial Investments are classified as non-current as-
sets since they are considered a long-term investment
portfolio. DKK 1,566 million is estimated to be realisa-
ble within three months.
48
Annual Report Financial Statements
DKK (millions)
Investment Result
Realised Gains & Losses for the Year, Net ()
Unrealised Value Adjustments, Net
Total Financial Investments ()
Invested Capital
Cash & Cash Equivalents
Fixed Income
Equities ,
Alternatives
Total Financial Investments , ,
Significant accounting
estimates and judgements
Financial Investments are measured at fair value using
either level one or level three in the fair value hieroc-
racy. Fixed income and equities are based on observ-
able market data, and are thus level one. Alternatives
are based on valuations of net asset value provided by
external portfolio managers, and are thus level three.
Management and Kirk Kapital Fondsmæglerselskab
A/S are continually monitoring the external portfolio
managers and evaluating valuations.
Please refer to note 6 for further information on Mar-
ket Risk.
04
49
Annual Report Financial Statements
Vejle
Investments
Accounting policy
Vejle Investments are defined as illiquid majority in-
vestments within the Vejle area.
The subsidiary Kirk Property A/S contains two in-
vestments: Fjordenhus, which is Kirk Kapital’s domi-
cile, and investment properties through Kirk Property
A/S’s subsidiary Havneøen 1 P/S.
Kirk Property A/S (excluding Havneøen 1 P/S) is rec-
ognised and measured under the equity method – the
proportionate share of the net asset values. Fjordenhus
is measured at cost less accumulated depreciation and
impairment losses.
Investment properties (either owned directly or
through subsidiaries) are measured at cost comprising
the acquisition price and costs of acquisition. The cost
of self-constructed investment properties comprises
the acquisition price and expenses directly related to
the acquisition, including costs of acquisition and in-
direct expenses for labour, materials, components, and
sub suppliers up until the time when the asset is ready
for use. Investment properties constructed for sale are
held at cost less impairments if market value is lower
than costs. Investment properties constructed to lease
are, after initial recognition, measured at fair value.
Non-current receivables are measured at amortised
cost. Other equity investments are recognised and
measured under the equity method, which is at the
proportionate share of the net asset values.
05
Significant accounting
estimates and judgements
Investment properties at fair value are net of any as-
set-backed finance. The gross value of Investment
Properties at fair value is DKK 282 million. Investment
properties at fair value consist of rental properties to-
gether with forest and agriculture land. Geographical-
ly the properties are located either in Vejle or in the
vicinity of Vejle.
Investment properties are measured at fair value using
level three in the fair value hierocracy, by either ob-
taining an external valuation report or using capital-
isation models. Such models are based on assumption
on future rent levels, vacancy levels, operating and
maintenance costs, and yield requirements, and thus
contain a number of accounting estimates.
50
Annual Report Financial Statements
Buildings valued using a capitalisations model are
measured at an average rate of return of 5.3% to 6.1%.
The average rate of return used is based on an assess-
ment of locations, usage, and condition. An increase
in the rate of return of 0.5% will impact the value of
rental property negatively by approx. DKK 17 million
before tax.
Fair value of the forest and agriculture land is esti-
mated at DKK 115,000 per hectare (2021: 115,000 per
hectare). A change of the price per hectare of 1% will
impact the value of the forest and agriculture land by
approx. DKK 0.6 million before tax.
It is management’s assessment that the assumptions
and estimates used are reasonable.
DKK (millions)
Investment Result
Realised Gains & Losses for the Year, Net ()
Unrealised Value Adjustments, Net ()
Total Vejle Investments ()
Invested Capital
Fjordenhus
Investment Properties, Fair Value
Investment Properties, Cost
Non Current Receivables
Other Equity Investments
Total Vejle Investments
05
51
Annual Report Financial Statements
Financial Risk
Management
06
Financial risk factors
The company’s financial risk exposure is mainly cen-
tred around its Strategic Investments and Financial
Investments. Financial risk management is managed
individually for each investment category by the
Strategic Investments team and Kirk Kapital Fonds-
mæglerselskab A/S. Overall risk analysis is performed
in connection with setting the company’s investment
strategy and capital allocation, which is discussed with
and approved by the board.
The company’s financial risk profile is mainly dom-
inated by market risk, where the company has high
exposure to security prices and long-term equity
market movements. The company has moderate ex-
posure to interest rates and currency rates. To a lesser
extent, the company is also exposed to credit risk and
liquidity risk.
Derivatives financial instruments are mainly used to
reduce financial risk exposure. Where all relevant cri-
teria are met, hedge accounting is applied to remove
the accounting mismatch between the hedging instru-
ment and the hedged item. This will effectively result
in recognising interest expense at a fixed interest rate
for the hedged floating rate loans or contracts and in-
vestment in foreign currency at the fixed foreign cur-
rency rate for the hedged investments.
For hedges of net investments in foreign currencies
and financial assets denominated in foreign currencies,
the company enters into hedge relationships where the
critical terms of the hedging instrument match exact-
ly with the terms of the hedged item. The company
therefore performs a qualitative assessment of effec-
tiveness. Under the company’s policy the critical terms
of the forwards must align with the hedged items.
Market risk
Share price risk
A portion of the company’s Financial Investments as-
sets is directly exposed to short-term movements in
security prices since DKK 854 million is listed equities
and valued using observable prices on stock-exchang-
es. 10% in short-term negative movement in stock pric-
es would affect the portfolio negatively with 11.1% in
the short term corresponding to DKK 95 million.
Strategic Investments at fair value DKK 6,181 million
and alternatives under Financial Investments of DKK
992 million are measured at fair value using non-ob-
servable data, but data which to some extent is related
to long-term market conditions. While these invest-
ments are thus not directly exposed to short-term
stock price movement, there remains risk related to
long-term market movements.
Foreign exchange risk
The company’s currency exposure can be divided into
two categories of exposure and risks.
52
Annual Report Financial Statements
One category is investments denominated in curren-
cies other that DKK/EUR. As per 31 December 2022,
investments denominated in currency other than
DKK/EUR amount to DKK 1,392 million and the
exposure is mainly related to USD and NOK. Derivatives
are used to hedge some of the currency risk in USD and the
net exposure is reduced to DKK 1,179 million. The overall
hedging rate is 15%, per 31 December 2022. The duration
of the hedging contracts has a total maturity of less than
three months following the end of the reporting period.
A change of 10% in exchange rates other than DKK/
EUR would have a short-term effect on the total com-
prehensive income by DKK 118 million.
The second category is the underlying currency risk in
any investment regardless of exchange rate denomina-
tion where the investments are operating in a global
market. Some of the investments are subject to curren-
cy exposure due to imbalances in revenue and expenses
generated in foreign currencies mostly related to USD.
The risk is managed by the portfolio companies and
fund managers and evaluated by the Strategic Invest-
ments team and Kirk Kapital Fondsmæglerselskab A/S.
Interest rate risk
The company’s interest exposure can be divided into
three categories of exposure and risks.
The first category is interest rate risk related to the com-
pany’s debt instruments of DKK 547 million. An in-
crease in interest rate of 1% would negatively affect other
financials with 1% corresponding to DKK 5 million.
The second category is interest rate risk related to the
company’s fixed income investments of DKK 347 mil-
lion. An increase in interest of 1% would negatively
affect the fixed income investments with 3.4% corre-
sponding to DKK 12 million.
The third category is the underlying interest rate risk
of debt instruments in the underlying investments
in each investment category. The risk is managed by
the portfolio companies and fund managers which is
evaluated by the Strategic Investments team and Kirk
Kapital Fondsmæglerselskab. In terms of Vejle Invest-
ments the interest rate risk is handled by management.
Debt instruments amount to DKK 450 million. An in-
crease in interest rate of 1% would positively affect the
Vejle Investments with 2.2% corresponding to DKK 10
million.
Credit risks
The company’s primary credit exposure is related to
fixed income investments, financial instruments and
cash positions. Major single exposures are either expo-
sures to counterparts with good credit ratings and/or
other supporting security measures in place. The over-
all credit risk is considered low.
Liquidity risk
The company manages its liquidity risk by continu-
ously monitoring and assessing the liquidity positions.
06
53
Annual Report Financial Statements
Maturity Analysis - Liabilities
DKK (millions)
Less than
Year
Between
and Years
More than
Years Total
2022 Non-Derivatives:
Credit Institutions
Trade Payables
Lease Liabilities
Other Payables
Total Liabilities as of 31.12.2022
2021 Non-Derivatives:
Credit Institutions
Lease Liabilities
Other Payables
Total Liabilities as of 31.12.2021
Based on the relatively liquid Financial In-
vestments and relatively low level of borrow-
ings and liabilities the liquidity risk is consid-
ered low.
Maturity analysis
The table collates the company’s financial li-
abilities in relevant maturity groupings based
on the remaining period at the balance sheet
date and contractual maturity date. The
amounts disclosed in the table are the contrac-
tual undiscounted cash flows.
06
Fair value of debt correspond approximately to amortised cost of debt.
54
Annual Report Financial Statements
Financial Assets per Measurement Category
DKK (millions)
Financial Assets at Fair Value:
Strategic Investments , ,
Financial Investments , ,
Vejle Investments
Financial Assets at Amortised Costs:
Non Current Receivables
Other Loans & Receivables
Cash & Cash Equivalents
Financial Liabilities per Measurement Category
DKK (millions)
Financial Liabilities at Amoritised Costs:
Lease Liabilities
Credit Institutions
Other Payables
Measurement and fair value hierarchy
Measurement and fair value hierarchy is specified un-
der each investment: please refer to note 3 (‘Strategic
Investments’), note 4 (‘Financial Investments’) and
note 5 (‘Vejle Investments’).
06
55
Annual Report Financial Statements
Expenses
07
DKK (millions) Note
Expenses Profit & Loss
Expenses Related to Subsidiaries () ()
Expenses Kirk Kapital
Staff Expenses
Other External Expenses & other Operating Expenses
Expenses Kirk Kapital
56
Annual Report Financial Statements
Accounting policy
Staff expenses comprise wages, salaries, social secu-
rity contributions, leave and sick leave, bonuses and
non-monetary employee benefits and are recognised
in the year in which the services are rendered. When-
ever Kirk Kapital provides long-term employee bene-
fits, the costs are aggregated to match the rendering of
the services by the employees.
Key management compensation
Executive Management only consists of one member
whereas the remuneration of the Executive Manage-
ment and the Board of Directors is disclosed collec-
tively with reference to §98b (3) of the Danish Finan-
cial Statements.
Incentive plans comprise a short-term incentive plan
based on yearly performance and a long-term incentive
plan related to long-term goals regarding value crea-
tion. Remuneration of key management amounts to
DKK 86 million in 2022 and DKK 70 million in 2021 .
Staff
Expenses
08
57
Annual Report Financial Statements
DKK
(millions)
2022 2021
Wages
&
Salaries
Pensions & Other Staff Expenses
155
3
122
3
Total
Staff
Expenses
158 125
Average
Number
of
Employees
20
Accounting policy
The company is jointly taxed with Danish Group com-
panies and acts as the administrative company. The
Danish income tax payable is allocated between the
jointly taxed Danish companies based on their propor-
tion of taxable income (full absorption including re-
imbursement of tax deficits). The jointly taxed compa-
nies are taxed under the Danish Tax Payment Scheme.
Additions, deductions and allowances are recognised
under financial income or financial costs.
The income tax expense or credit for the period is the
tax payable on the current period’s taxable income
based on the applicable income tax rate for each juris-
diction adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to
unused tax losses.
Deferred income tax assets are recognised only to the
extent that it is probable that future taxable profit will
be available, against which the temporary differences
can be utilised.
Tax
09
58
Annual Report Financial Statements
Income Tax Expense
DKK (millions)
Tax Comprehensive Income ()
Tax Related Subsidiaries & Associated
Total Tax Kirk Kapital ()
Breakdown of Total Tax:
Current Tax on Comprehensive Income
for the Year
()
Current Tax on Comprehensive Income
for Previous Years
()
Deferred Tax for the Year & Previous Years ()
Total Tax Kirk Kapital ()
Income Tax are Specified as Follows
DKK (millions)
Calculated 22.0% Tax on Comprehensive Income
for the Year Before Tax
Tax Effects of:
Income from Strategic Investments
(Subsidaries & Associates)
() ()
Income from Vejle Investments
(Subsidaries & Associates)
() ()
Adjustment from Previous Years ()
Other
Total Tax Kirk Kapital ()
Effective Tax Rate ()
09
59
Annual Report Financial Statements
Kirk Kapital’s related parties comprise Casper Kirk
Johansen, Marianne Fyhring Johansen, Anders Kirk
Johansen and close famlily members together with the
Board of Directors and the Executive Management of
Kirk Kapital. Related parties also comprise subsidiar-
ies. Related parties further comprise companies where
the mentioned shareholders have significant influ-
ence: Selmont A/S, M.Kirk A/S, A.Kirk A/S, Pil & Birk
Holding A/S, C2 A/S, CKKJ Cosmo ApS, JKJ Cosmo
ApS, Edith & Godtfred Kirk Christiansens Fond and
subsidiaries.
As major shareholders, Casper Kirk Johansen and
Anders Kirk Johansen have significant influence in
Kirk Kapital.
In the financial year, a limited number of transactions
related to services took place between Kirk Kapital and
its owners and between Kirk Kapital and its subsidar-
ies. These services were paid on normal market terms.
There were no transactions with the Board of Directors
or the Executive Management besides transactions re-
lated to employment.
For information about remuneration to the Board of
Directors and the Executive Management, see note 8.
Related
Parties
10
60
Annual Report Financial Statements
No other year-end balances or transactions have taken place during the year with
the Board of Directors, the Executive Management, shareholders or other related
parties.
DKK (millions)
Transactions with Related Parties:
Subsidiaries
Administration & Management Fee Income
Administration & Management Fee Expenses
Rental Expenses
Intercompany Interest Income
Intercompany Interest Expenses
Other Related Parties
Administration & Management Fee Income
Salaries
DKK (millions)
Year-End Balances Arising from Transactions
with Related Parties:
Subsidiaries
Receivables included in the balance sheet under:
Strategic Investments
Vejle Investments
Receivables
Payables included in the balance sheet under:
Strategic Investments
Vejle Investments
Payables
Other Related Parties
Receivables
Payables
10
61
Annual Report Financial Statements
Accounting policy
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a deduction, net of tax, from
the proceeds.
Proposed dividends are disclosed as a separate item un-
der equity and recognised as a liability when declared.
All shares have nominal value of DKK 1.
There have been no changes in the share capital during the last 5 years.
Each A share has 10 votes at the annual general meeting. Each B share
has 1 vote at the annual general meeting.
Share
Capital
11
The Share Capital Comprise
Number of Shares Nominal Value
()
A Shares ,,
B Shares ,,
Share Capital ,,
62
Annual Report Financial Statements
Commitments
& Contingent
Liabilities
12
Contingent liabilities
Remaining commitments regarding participation in in-
vestment projects amount to a maximum of DKK 897
million.
Security has been given in investment properties at a
net carrying amount of DKK 61 million for the mort-
gage loans.
Kirk Kapital has provided a guarantee of a maximum of
DKK 412 million to financial institutions in which the
company’s subsidiaries and associates have loans and
other engagements.
Kirk Kapital has entered into a cash pool agreement. As
per 31 December 2022 the net withdrawl on the cash-
pool aregreement was DKK 163m.
Joint taxation scheme
Kirk Kapital and its Danish group companies are joint-
ly and severally liable for tax on the jointly taxed in-
comes, etc. Kirk Kapital is the administrative company
of the joint taxation. Kirk Kapital and its Danish group
companies are jointly and severally liable for the joint
taxation liability. The joint taxation liability covers in-
come taxes and withholding taxes on dividends, royal-
ties and interest.
63
Annual Report Financial Statements
Investments in
Subsidiaries &
Accociates
13
64
Annual Report Financial Statements
Name
Place of
Registered Office
Share Capital
DKK (millions) Votes Ownership
Subsidiaries
Kirk Kapital Strategic Investments A/S Vejle, Denmark .
Kirk Kapital Fondsmæglerselskab A/S Vejle, Denmark .
KIRK Farm A/S Vejle, Denmark .
KIRK Shipping A/S* Vejle, Denmark .
Gunhild Kirk A/S* Vejle, Denmark .
Edith Kirk A/S* Vejle, Denmark .
Marie Kirk A/S* Vejle, Denmark .
Marianne Kirk A/S* Vejle, Denmark .
Anja Kirk A/S* Vejle, Denmark .
KIRK Aviation A/S* Vejle, Denmark .
KKAG Komplementarselskab ApS* Vejle, Denmark .
KA1 P/S* Vejle, Denmark .
KN Operating Ltd.* Dublin, Ireland .
KIRK Property A/S Vejle, Denmark .
Havneøen 1 P/S Vejle, Denmark .
Komplementarselskabet Havneøen 1 ApS Vejle, Denmark .
KIRK Suites ApS Vejle, Denmark .
Associates:
K/S Høje-Taast rup Bredsten, Denmark .
Høje-Taastr up ApS Bredsten, Denmark .
Virumgårdsvej 17 ApS Virum, Denmark .
*Financial Statements are presented in USD, which is the functional currency of the company.
13
65
Annual Report Financial Statements
Fees to Auditors
Appointed at the
General Meeting
14
DKK (millions)
Audit Fee
Tax Advisory Services
Non-Audit Services
Total Auditors Fee
66
Annual Report Financial Statements
No events materially affecting the assessment of the
Annual Report have occurred after the balance sheet
date.
Events after
the Balance
Sheet Date
15
67
Annual Report Financial Statements
Management’s
Statement
68
Annual Report Financial Statements
Executive Management
Board of Directors
69
Annual Report Financial Statements
Independent
Auditor’s Report
70
Annual Report Financial Statements
CVR No. 339 635 5 6
Identification No (MNE) mne 314 82
Identification No (MNE) mne 40 040
71
Annual Report Financial Statements
Turn to back
cover to read
the ESG Report
Turn to front
cover to read the
Annual Report
05
ESG
78 Letter from CEO
82 Kirk Kapital’s ESG Framework
83 ESG within Investment Activities
85 Strategic Investments
86 Financial Investments
88 Inside Kirk Kapital
ESG Report 2022
04
Financial Statements
36 Comprehensive Income Statement
37 Balance Sheet Statement
38 Changes in Equity Statement
39 Cash Flow Statement
40 Notes
68 Management’s Statement
70 Independent Auditor’s Report
02
Our Business Activities
18 Activities Overview
20 Strategic Investments
24 Financial Investments
26 Vejle Investments
28 Business & Financial Risk
03
Board & Management
Composition
32 Board of Directors &
Executive Management
01
Introduction
08 Our Heritage
08 What We Do
12 2022 at a Glance
14 Financial Highlights
Annual Report 2022
05
ESG
Kirk Kapital’s purpose is to create long-term prosperity
for our shareholders, partners, and employees. Prosper-
ity, in our view, is about much more than wealth crea-
tion. It is also about ensuring well-being in a broader
context. Our ambition is therefore also to do our part
in helping to build a better world.
Our heritage and legacy from LEGO, and a solid set
of family-based values, have ensured that Kirk Kap-
ital has always acted with a high degree of integrity,
responsibility, and honour. Today, these values can be
categorised as ESG.
In 2021, Kirk Kapital issued its first ESG Report which
was a first important step towards our more formalised
approach to ESG. I am happy to issue our second report
in 2022, and comment on the important progress we
have made.
Letter from
the CEO
Kim Gulstad
CEO
78
ESG Report ESG
We want to inspire
Kirk Kapital intends to showcase responsible behav-
iour in everything we do, both when it comes to invest-
ing our capital and within our own organisation.
With our capital, we want to exhibit responsible ESG
behaviour with the objective of increasing risk-adjust-
ed investment returns. Due to our defined investment
strategy, and limited size in a global context, Kirk Ka-
pital cannot dictate a specific ESG agenda within our
investments. However, we can positively select invest-
ments, and we can encourage and inspire others to act
responsibly. Furthermore, our ESG voice is more con-
vincing if we also apply our ESG principles internally,
which is what we have set out to do.
This is why Kirk Kapital wants to lead by example, and
proactively inspire external stakeholders to make sus-
tainable ESG changes.
Our sustainability commitment
Kirk Kapital joined the UN Global Compact in 2021,
and we have since been committed to doing business
responsibly and according to the ten principles of hu-
man rights, labour, environment, and anti-corruption.
With this letter, we are expressing our continued sup-
port for the UN Global Compact and renewing our on-
going commitment to the initiative.
In 2021, Kirk Kapital also selected four UN Sustaina-
ble Development Goals (SDG), which we focus on in-
ternally. These are: 5. Gender equality; 8. Decent work
and economic growth; 13. Climate action; and finally,
16: Peace, justice, and strong institutions. The struc-
tured focus on these areas has yielded early positive
results, as described in this ESG Report.
This year, Kirk Kapital has initiated the mapping of
our CO footprint. This will provide us with a trans-
parent overview of our current negative CO footprint,
and where the main negative contributions come from.
This, in turn, will better enable us to prioritise our CO
reduction initiatives, and tackle SDG item 13.
The ESG Report 2022
This report serves as our annual communication on
progress (CoP) as a signatory to the UN Global Com-
pact, and as our reporting on underrepresented gender
in management, data ethics and Corporate Social Re-
sponsibility.
79
ESG Report ESG
80
ESG Report ESG
“
With our capital, we want
to exhibit responsible ESG
behaviour with the objective
of increasing risk-adjusted
investment returns.
”
Kim Gulstad, CEO
81
ESG Report ESG
The UN Global Compact and the four SDGs highlight
the themes we focus on. As reported last year, we have
devised a tool that we call the Kirk Kapital ESG Com-
pass, which helps determine how we will work with
sustainability.
Our ESG Compass consists of four pillars: Screening
& Alignment; ESG Integration; Active Ownership &
Engagement; and Sustainable Development & Impact.
Through our ESG Compass and our commitment to
both the UN Global Compact and the four chosen
SDGs, we want to inspire companies to take respon-
sibility. Not just because it is a part of our legacy and
heritage, but also because it is the core of Kirk Kapital’s
values and purpose.
ESG
Framework
Kirk Kapital ESG Compass
Consisting of four pillars:
Screening & Alignment
ESG Integration
Active Ownership & Engagement
Sustainable Development & Impact
UN Sustainable Development Goals
17 goals – with our main focus on:
Gender equality
Decent work and economic growth
Climate action
Peace, justice, and strong institutions
UN Global Compact
10 principles within four themes:
Human rights
Labour
Environment
Anti-corruption
ESG
Compass
Kirk Kapital’s
82
ESG Report ESG
Kirk Kapital’s main investment activities consist of our
Strategic Investments and our Financial Investments
(see chapter 1 & 2 of this report for further informa-
tion about our business model). Within Strategic In-
vestments, we acquire larger minority shareholdings
(25-49%) in companies while applying an active own-
ership agenda through board representation. Within
Financial Investments, Kirk Kapital manages multiple
individual portfolios, where each portfolio is tailored
to our partners’ precise requirements and wishes. The
portfolios consist of a wide range of investments in-
cluding fixed income, listed equities and alternatives.
While the activities of our two main investment activi-
ties are different in nature, we have devised a common
ESG Compass strategy, which is the main framework
for our ESG approach. Hence, this serves as the main
framework for our ESG approach with regards to our
main investment activities.
ESG within
Investment
Activities
ESG
Compass
83
ESG Report ESG
84
ESG Report ESG
As the investment strategy is to conduct larger minori-
ty shareholdings, Kirk Kapital cannot dictate a specific
ESG agenda within our investments. However, we can
positively select investments, and we can encourage and
inspire others to act responsibly. This is our ESG strat-
egy, and our activities are aligned to fulfil this strategy.
ESG is an integral part of the due
diligence process
As a standard requirement prior to all new potential
investments, a specific ESG diligence is conducted in
connection with the due diligence. We adopt a dynam-
ic sustainability materiality framework in order to as-
sess key ESG factors relevant to the company and the
industry in which it operates.
Our sustainability due diligence process consists of
four steps: 1. Identify material ESG topics; 2. Request
ESG information and documentation from the target;
3. Q&A session; and 4. ESG Due Diligence Report.
Five sustainability criteria have been defined: 1.
Well-defined ESG management and resources; 2.
Alignment with UN Global Compact principles; 3. Im-
plemented material sustainability initiatives and KPIs;
4. Contribution to UN SDGs; and 5. Limited ESG risk
exposure. These will be assessed, and a score will be
concluded, which will lead to an overall sustainabili-
ty score. The overall sustainability score is included in
our overall investment recommendation.
In 2022, we carried out ESG due diligence process in
connection with new potential investments. All reviews
were concluded satisfactory, providing us with a clear
overview of each company’s total sustainability score.
ESG Board Engagement Policy
The objective of the ESG Board Engagement Policy
is to govern how Kirk Kapital representatives take an
active role on the boards of our Strategic Investments
portfolio companies.
Knowledge of best practice ESG and a sound under-
standing of ongoing ESG regulatory initiatives are
part of the expected skillset of our investment profes-
sionals. As board members in our portfolio companies,
they can inspire from the top and stress the impor-
tance of ambitious sustainability management. We are
committed to using our influence to encourage compa-
nies to improve their management of ESG topics. We
believe that such an approach can deliver benefits in
several ways, not least in obtaining better information
on ESG risks and opportunities.
In 2022, all board members serving on portfolio com-
pany boards employed by Kirk Kapital have signed the
ESG Board Engagement Policy, and everyone is adher-
ing to our company guidelines.
Strategic
Investments
85
ESG Report ESG
Our multiple individual portfolios consist of a wide
range of investments including fixed income, listed eq-
uities and alternatives. In a global context, Kirk Kapital’s
individual investments are limited in size and we can-
not dictate a specific ESG agenda within each of these
investments. However, we can positively select invest-
ments, and we can encourage and inspire others to act
responsibly. This is our ESG strategy, and our activities
are aligned to fulfil this strategy.
Responsible Investment Policy
In 2021, Kirk Kapital Fondsmæglerselskab A/S adopted
the Responsible Investment Policy (RI Policy). The RI
Policy serves as a framework to guide our investment de-
cisions – ultimately influencing our investment strategy.
Kirk Kapital Fondsmæglerselskab A/S has also been a
signatory of the UN PRI since 2021. The UN Principles
for Responsible Investment is the world’s leading pro-
ponent for responsible investment. It is a network com-
prised of investors (signatories), who are committed to
adopting six principles of operation. The PRI works to
achieve a sustainable global financial system by encour-
aging the adoption of its principles and collaboration
on implementation; by fostering good governance, in-
tegrity, and accountability; and by addressing obstacles
to a sustainable financial system that lie within market
practices, structures, and regulation.
ESG Committee
Kirk Kapital Fondsmæglerselskab A/S has an ESG
Committee with the purpose of supporting our jour-
ney towards more responsible and sustainable financial
investments. The ESG Committee meets three times a
year and draws on internal as well as external resources
to ensure a wider range of insights, competencies, and
perspectives in the sustainability field. The committee
continuously defines and challenges our level of ambi-
tion on sustainable investments to make sure we stay
ahead of the curve. It will monitor our surrounding
community and the sustainability field and review our
RI Policy. The committee also has practical responsibil-
ities such as evaluating external managers on sustaina-
bility performance.
In 2022, the ESG Committee has carried out its duties,
and it is generally satisfied with our ESG progress. The
ESG Comittee consists of both internal and external
members. The external members are represented by
both customers and experts.
Managing ESG evaluation framework
Kirk Kapital Fondsmæglerselskab A/S predominantly
invests through funds managed by external managers.
Hence, it is crucial that we evaluate their ESG policies
and actions continuously. Our external managers are
expected to be co-signatories of the UN PRI and to have
strong and/or improving ESG practices in place. For us
to monitor their work systematically, we have developed
a framework for evaluating their ESG performance. The
evaluation framework mixes feedback, reviews, and
classic assessment within five focus areas with an annual
questionnaire customised to fit listed equities, credit,
Financial
Investments
86
ESG Report ESG
sovereign bonds, liquid alternatives, and private mar-
kets. The questionnaires have been designed for each of
these asset classes to best reflect ESG practices informed
by leading sustainability bodies such as the UN PRI.
There are different options and levels of transparency
in our managers’ ESG performance across asset classes.
More and more ESG data is becoming available for list-
ed companies in very different shapes and sizes, allow-
ing us to complement our own due diligence framework
with quantitative sustainability data from the market
itself. However, this requires that we can navigate the
available data and focus on solid data from standarised
options. With unlisted companies, this kind of insight
is more limited, emphasising the need for an even more
thorough dialogue with the managers regarding deci-
sion-making and tools.
For 2022, we are generally pleased with the ESG sustain-
ability progress.
49%
Lower Water
Usage
57%
Lower CO
2
Emissions
*
42%
Lower Energy
Usage
90%
are UN PRI Signatories
91%
have an ESG Policy
24%
are SFDR Article 8 Managers
9%
are SFDR Article 9 Managers
We mapped our
environmental footprint
ESG impact of listed equality port-
folio p.a. relative to MSCI ACWI
per USD 1 million of revenue
We reviewed our external
managers’ sustainability
performance
* CO and other gases that are
recalculated into CO equivalent.
Source: LGT Capital Partners, Refinitiv Data
as of 30 June 2022.
87
ESG Report ESG
At Kirk Kapital, we are well aware of the fact that our
biggest impact on society is the impact and influence
we can have externally with the “voice of our capital”.
Hence, this is mainly through our investment activi-
ties. However, we would – also internally – very much
like to lead by example and serve as an inspiration to
our surroundings and stakeholders.
Our organisation consists of around 26 people working
in our offices in the Danish cities of Vejle and Hellerup.
Kirk Kapital is a signatory to the UN Global Com-
pact, the world’s largest voluntary initiative within
corporate responsibility. With this step, we commit to
aligning our business strategy and operations with ten
universally accepted principles within human rights,
labour, environment, and anti-corruption and to tak-
ing action to advance broader societal goals.
Employees
Our purpose is to create prosperity, not only for our
shareholders and partners, but also for our employees.
At Kirk Kapital, prosperity also means welfare. Since
the establishment of Kirk Kapital in 2007, employee
welfare has been at the core of our business, evidenced
by a family-like and trust-based working environment.
Our employee handbook is the manifestation of our pol-
icy and is available to all employees. It provides practical
guidance and rules on various relevant topics such as
workplace environment and professional development.
We have established a thorough feedback system and have
keen focus on the continued development of the individual
employee. Access to further education for employees is a
priority, and employees are encouraged to seek options.
Our 2022 employee survey concluded that employees
were very satisfied overall. We scored 93.9 out of 100
on overall satisfaction, and we received an average
score of 92.6 across all questions. This is an improve-
ment on last year’s result, and we will strive to keep a
high level going forward.
We are proud to have created a workplace with satis-
fied employees who can balance an ambitious career
with a life outside the workplace. Stress is an employ-
ee risk and we keep a close eye on signs of employees
being overworked. In a small and flat organisational
Inside
Kirk
Kapital
88
ESG Report ESG
structure such as ours, management is able to observe
the risks on a continuous basis, and we consider this
among the most important of management tasks.
Environment
Kirk Kapital, and its directly controlled subsidiaries,
have little risk of abnormal, negative environmental
impact, since Kirk Kapital, and its directly controlled
subsidiaries, conduct their main activities in Denmark
where legislation provides guidelines and restrictions
on good environmental practices. A review of our ac-
tivities in 2022 shows that no events have had an ab-
normal, negative environmental impact.
In 2022, we undertook several initiatives in order to
reduce Kirk Kapital’s own CO footprint:
• We established more charging stations for electric
vehicles at our carparks for our employees
• We have continued to CO compensate for our air
travel and use electric taxis, to the extent possible,
and encourage our employees to generally consider
CO friendly means of travel
• We have, to a large extent, eliminated the usage of
plastic bottles for water, and implemented reusable
solutions
• We have reduced the number of papers printed by
18%
Finally, in 2022,
we have taken the
initiative to map
Kirk Kapital’s CO
2
footprint.
With this mapping, we will be in a better
position to prioritise our CO reduction
initiatives more effectively still.
89
ESG Report ESG
Human rights
We conduct our business under Danish law, which is
highly regulated in relation to human rights. The risk
of violating human rights is therefore considered low.
A review of our activities in 2022 shows that no events
have violated any human rights. Kirk Kapital remains
very conscious of our human rights responsibilities to
employees, suppliers, and broader stakeholders, in line
with our commitments under the UN Global Com-
pact. In this light, in 2022 we have implemented our
ESG policy with human rights in focus and thereby an
increased employee awareness.
In 2023, we will continue to promote and monitor com-
pliance with human rights.
Anti-corruption
Kirk Kapital, and its directly controlled subsidiar-
ies, have a limited number of business partners, and
we always comply with current legislation regarding
anti-corruption issues. The risk of breaching current
anti-corruption legislation is considered low. In 2022
anti-bribery and corruption guidelines were imple-
mented in our ESG policy and the personnel handbook
to ensure employees are aware of their responsibilities
to act in accordance with the highest standards.
A review of the activities in 2022 shows that no events
have violated legislation and guidelines regarding an-
ti-corruption issues. In 2023, we will continue to pro-
mote responsible behaviour by our employees and in
our interactions with others, to minimise the risk of
unethical and corrupt behaviour.
90
ESG Report ESG
2023 and beyond
In 2023 and beyond, Kirk Kapital will continue to fo-
cus on how we develop our business and develop our
organisation with respect to the UN Global Compact
and with a focus on the four prioritised SDGs. The suc-
cessful implementation of our sustainability strategy is
key to our Kirk Kapital 2025 Strategic Ambition plan.
We will increasingly make the “voice of our capital”
heard in our investment activities. As our sustainabili-
ty strategy and our formalised sustainability processes
are relatively new, we will continue to focus on embed-
ding the processes within our organisation. The goal
is to embed our sustainability processes as an integral
part of how we manage Kirk Kapital on a daily basis.
Within our Strategic Investments, we will specifically
encourage portfolio companies to become signatories
to the UN Global Compact. Within Financial Invest-
ments, we will seek to expand on active ownership and
engagement, and focus on mitigating ESG risks, pur-
suing ESG opportunities and focusing on measurable
high-impact solutions whenever possible and relevant.
Internally, we will also focus on our four prioritised
SDGs. Regarding gender equality we will seek to
maintain a diverse employee base at all levels of the
organisation. With decent work and economic growth,
we will seek to maintain a high level of employee satis-
faction. Furthermore, regarding climate action, we will
increasingly examine and implement ways of reducing
our CO emissions. Specifically, in the coming years,
we will explore how we can measure CO emissions us-
ing the GHG protocol, to ensure reductions in a struc-
tured approach. Finally, with regard to peace, justice,
and strong institutions: we will formalise our policies,
further reducing the risk of compliance breaches.
In summary, Kirk Kapital is off to a
good start, but there is much more to do.
We look forward to working with and
fulfilling, our sustainability goals for the
years to come.
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ESG Report ESG