ldavang A/S
Tofthøjvej 41, DK-7321 Gadbjerg
CVR 20 95 61 43
Approved at the Company's
Annual General Meeting
on 28th February 2022
2
Contents
Independent
auditors’ report
Management's review
Company Details
Group Chart
Historical Development
Business Review 2021
Current Risks
Environmental Matters
Human Resource Policy
Parent Company
Financial statements
for the period
1 January - 31 December
Income statement
Statement of other
comprehensive income
Balance sheet
Statement of
changes in equity
Cash flow statement
Notes
Group
Financial statements
for the period
1 January - 31 December
Income statement
Statement of other
comprehensive income
Balance sheet
Statement of
changes in equity
Cash flow statement
Notes
Statement by the
Board of Directors and
the Executive Board
4
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18
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5926
3
Tofthøj, 28 February 2022
The Board of Directors and Executive Board have today considered and adopted the
Annual Report of Idavang A/S for the financial year 1 January – 31 December 2021.
The Annual Report has been prepared in accordance with International Financial Reporting
Standards as adopted by the EU and further requirements in the Danish Financial
Statements Act.
In our opinion, the Consolidated Financial Statements and the Parent Company Financial
Statements give a true and fair view of the financial position at 31 December 2021 of the
Group and the Parent Company and of the results of the Group and Parent Company
operations and cash flows for 2021.
In our opinion, Management’s Review includes a true and fair account of the development
in the operations and financial circumstances of the Group and the Parent Company, of the
results for the year and of the financial position of the Group and the Parent Company as
well as a description of the most significant risks and elements of uncertainty facing the
Group and the Parent Company.
In our opinion, the Annual Report of Idavang A/S for the financial year 1 January - 31
December 2021 with the file name 5493000WVOJNMTISMP12-2021-12-31-en.zip is
prepared, in all material respects, in compliance with the ESEF Regulation.
We recommend that the Annual Report be adopted at the Annual General Meeting.
Statement
by the Board of Directors and the Executive Board
Executive Board
Claus Baltersen
CEO
Michael Henriksen
CFO
Board of Directors
Claus Baltersen Ole Bjerremand Hansen
Carsten Lund Thomsen
Niels Hermansen
Chairman
Jytte Rosenmaj
4
Report On The Audit Of The Financial Statement
Our Opinion
In our opinion, the Consolidated Financial Statements and
the Parent Company Financial Statements give a true and
fair view of the Group’s and the Parent Company’s
financial position at 31 December 2021 and of the results
of the Group’s and the Parent Company’s operations and
cash flows for the financial year 1 January to 31 December
2021 in accordance with International Financial Reporting
Standards as adopted by the EU and further requirements
in the Danish Financial Statements Act.
Our opinion is consistent with our Auditor’s Long-form
Report to the Audit Committee and the Board of Directors.
What we have audited
The Consolidated Financial Statements and Parent
Company Financial Statements of Idavang A/S for the
financial year 1 January to 31 December 2021 comprise
income statement and statement of comprehensive
income, balance sheet, statement of changes in equity,
cash flow statement and notes, including summary of
significant accounting policies for the Group as well as for
the Parent Company. Collectively referred to as the
“Financial Statements”.
Basis for Opinion
We conducted our audit in accordance with International
Standards on Auditing (ISAs) and the additional
requirements applicable in Denmark. Our responsibilities
under those standards and requirements are further
described in the Auditor’s responsibilities for the audit of
the Financial Statements section of our report. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants
(IESBA Code) and the additional ethical requirements
applicable in Denmark. We have also fulfilled our other
ethical responsibilities in accordance with these
requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited non-
audit services referred to in Article 5(1) of Regulation (EU)
No 537/2014 were not provided.
Appointment
Following the admission of the bonds of Idavang A/S for
listing on Nasdaq Copenhagen Stock Exchange, we were
first appointed auditors of Idavang A/S on 25 May 2020.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgement, were of most significance in our
audit of the Financial Statements for 2021. These matters
were addressed in the context of our audit of the Financial
Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion
on these matters.
Independent Auditor Report
to the shareholders of ldavang A/S
Key audit matter
How our audit addressed
the key audit matter
Fair value of commercial
and breeding herd
The Group's biological assets
in terms of commercial and
breeding herd are measured
at fair value less selling costs
at the balance sheet date.
At 31 December 2021 the fair
value of the Group's herd
amounts to EUR 26.982
thousand (2020: EUR 32.585
thousand).
The Group applies a model
includes data on number of
pigs, quotations and prices
from recognized markets and
assumptions on necessary
adjustments appropriate for
the local markets.
We focused on the
measurement of fair value
because the model applied
for determining the fair value
is complex and involves
significant judgements, as
local prices are not available
in all relevant markets for the
various stages in the
production from piglets to
slaughter pigs and from
young females to sows.
We refer to note 16 in the
Consolidated Financial
Statements.
We evaluated and tested
the appropriateness of the
Group's model for
determining the fair value
of the herd throughout the
stages of the production.
We tested the Group's
model for consistency with
previous years.
We challenged the
assumptions applied in the
model with reference to
historical data and external
documented quotations
and sales prices based on
age, weight, breed and
genetic heritage, where
applicable.
We evaluated the
appropriateness of the
related disclosures
provided.
5
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the Financial Statements does not cover
Management’s Review, and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Financial Statements,
our responsibility is to read Management’s Review and, in
doing so, consider whether Management’s Review is
materially inconsistent with the Financial Statements or
our knowledge obtained in the audit, or otherwise appears
to be materially misstated.
Moreover, we considered whether Management’s Review
includes the disclosures required by the Danish Financial
Statements Act.
Based on the work we have performed, in our view,
Management’s Review is in accordance with the
Consolidated Financial Statements and the Parent
Company Financial Statements and has been prepared in
accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material
misstatement in Management’s Review.
Management’s Responsibilities For The Financial
Statements
Management is responsible for the preparation of
consolidated financial statements and parent company
financial statements that give a true and fair view in
accordance with International Financial Reporting
Standards as adopted by the EU and further requirements
in the Danish Financial Statements Act, and for such
internal control as Management determines is necessary to
enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is
responsible for assessing the Group’s and the Parent
Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless
Management either intends to liquidate the Group or the
Parent Company or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities For The Audit Of The
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is
not a guarantee that an audit conducted in accordance
with ISAs and the additional requirements applicable in
Denmark will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
Financial Statements.
As part of an audit in accordance with ISAs and the
additional requirements applicable in Denmark, we
exercise professional judgement and maintain
professional skepticism throughout the audit. We
also:
● Identify and assess the risks of material
misstatement of the Financial Statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
● Obtain an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the
Group’s and the Parent Company’s internal control.
● Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures made
by Management.
● Conclude on the appropriateness of
Management’s use of the going concern basis of
Independent Auditor Report
to the shareholders of ldavang A/S
6
Independent Auditor Report
to the shareholders of ldavang A/S
accounting and based on the audit evidence obtained,
whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s
and the Parent Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report
to the related disclosures in the Financial Statements or, if
such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the Group or the Parent
Company to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content
of the Financial Statements, including the disclosures, and
whether the Financial Statements represent the underlying
transactions and events in a manner that gives a true and
fair view.
● Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business
activities within the Group to express an opinion on the
Consolidated Financial Statements. We are responsible for
the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to
communicate with them all relationships and other matters
that may reasonably be thought to bear on our
independence and, where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Financial Statements
of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in
our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public
interest benefits of such communication.
Report On Compliance With The ESEF Regulation
As part of our audit of the Financial Statements we
performed procedures to express an opinion on whether
the annual report of Idavang A/S for the financial year
1 January to 31 December 2021 with the filename
5493000WVOJNMTISMP12-2021-12-31-en.zip is prepared,
in all material respects, in compliance with the Commission
Delegated Regulation (EU) 2019/815 on the European
Single Electronic Format (ESEF Regulation) which includes
requirements related to the preparation of the annual
report in XHTML format and iXBRL tagging of the Consoli-
dated Financial Statements. Management is
responsible for preparing an annual report that
complies with the ESEF Regulation. This
responsibility includes:
● The preparing of the annual report in XHTML
format;
● The selection and application of appropriate
iXBRL tags, including extensions to the ESEF
taxonomy and the anchoring thereof to elements
in the taxonomy, for all financial information
required to be tagged using judgement where
necessary;
● Ensuring consistency between iXBRL tagged data
and the Consolidated Financial Statements
presented in human-readable format; and
● For such internal control as Management
determines necessary to enable the preparation of
an annual report that is compliant with the ESEF
Regulation.
Our responsibility is to obtain reasonable
assurance on whether the annual report is
prepared, in all material respects, in compliance
with the ESEF Regulation based on the evidence we
have obtained, and to issue a report that includes
our opinion. The nature, timing and extent of
procedures selected depend on the auditor’s
judgement, including the assessment of the risks of
Esbjerg, 28 February 2022
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 3377 1231
Henrik Forthoft Lind
State Authorised
Public Accountant
mne34169
7
Independent Auditor Report
to the shareholders of ldavang A/S
Palle H. Jensen
State Authorised
Public Accountant
mne32115
material departures from the requirements set out in the
ESEF Regulation, whether due to fraud or error. The
procedures include:
● Testing whether the annual report is prepared in XHTML
format;
● Obtaining an understanding of the company’s iXBRL
tagging process and of internal control over the tagging
process;
● Evaluating the completeness of the iXBRL tagging of the
Consolidated Financial Statements;
● Evaluating the appropriateness of the company’s use of
iXBRL elements selected from the ESEF taxonomy and the
creation of extension elements where no suitable element
in the ESEF taxonomy has been identified;
● Evaluating the use of anchoring of extension elements
to elements in the ESEF taxonomy; and
● Reconciling the iXBRL tagged data with the audited
Consolidated Financial Statements.
In our opinion, the annual report of Idavang A/S for the
financial year 1 January to 31 December 2021 with the file
name 5493000WVOJNMTISMP12-2021-12-31-en.zip is
prepared, in all material respects, in compliance with the
ESEF Regulation.
Management's
Review
9
Management's Review
Company Details Financial Highlights
Name
Address, zip code, city
CVR no.
Established
Financial year
Website
Telephone
Board of Directors*
Executive Board*
Shareholders
Ultimate parent company
Auditors
ldavang A/S
Tofthøjvej 41
DK 7321 Gadbjerg
20 95 61 43
1998
1 January - 31 December
www.idavang.com
+45 75 87 64 15
Niels Hermansen, Chairman
Jytte Rosenmaj
Claus Baltersen
Ole Bjerremand Hansen
Carsten Lund Thomsen
Claus Baltersen, CEO
Michael Henriksen, CFO
Jast Holding ApS,
Tofthøjvej 41, DK-7321 Gadbjerg,
100%
Jast Holding ApS, Tofthøjvej 41, DK-7321 Gadbjerg, 100%
Pricewaterhousecoopers
Statsautoriseret Revisionspartnerselskab
Esbjerg Brygge 28,
DK 6700 Esbjerg
Revenue
EBITDA (*)
Profit/loss before net financials (EBIT)
Net financials
Profit/loss for the year
Tangible assets
Biological assets (herd and crop)
Total assets
Equity
Net interesting-bearing debt (NIBD)
Non-current liailities
Current liabilities
Cash flows from operating activities
Investment in property, plant and equipment
Cash flows lrom financing activities
Total cash flows
EBITDA margin
Current ratio
Equity ratio
Return on equity
Sold volume liveweight (kMT)
Return on average invested capital (ROIC)
Average number of full-time employees
Key Fiqures
Financial Ratios
99.5
17.6
10.1
-9.3
1.2
86.8
37.4
181.0
50.4
78.3
100.1
30.4
5.3
-12.6
9.8
3.2
19%
255%
28%
2%
88
7%
809
109.6
21.6
13.8
-5.9
6.1
88.6
37.3
179.1
54.1
73.0
95.3
29.7
19.6
-6.3
-11.4
2.0
20%
254%
30%
10%
86
10%
807
2018 2017
EUR'000,000
(*) Refer to note 3 Segments. Financial ratios are calculated in accordance with the recommendations
of the Danish Finance Society. For terms and definitions, please see the accounting policies in note 1.
Historical figures have not been adjusted for IFRS 9,15 (2016-2017) and 16 (2016-2018).
(*) See note 23 for further information
2019
110.5
26.9
18.4
−4.8
11.0
96.7
45.0
200.1
67.3
90.1
98.0
34.8
2.7
−9.3
-2.8
-9.7
24%
245%
34%
16%
89
13%
830
2020
101.8
10.5
2.8
-11.2
-7.8
79.5
33.7
146.4
29.9
87.8
83.4
33.1
21.8
-4.6
-6.0
11.6
10%
148%
20%
-26%
92
2%
799
2021
100.2
14.6
7.5
−5.5
2.4
79.4
28.0
146.2
39.7
78.5
77.5
28.9
11.4
−3.9
−11.2
−1.0
15%
181%
27%
6%
92
6%
769
L A T V I A
E S T O N I A
F I N L A N D
S W E D E N
N O R W A Y
D E N M A R K
G E R M A N Y P O L A N D
B E L A R U S
R U S S I A
L I T H U A N I A
10
Management's Review
Group Chart
Russian
pig operation
Lithuanian
pig operation
IDAVANG AGRO
LLC
Leningrad Oblast, Russia
IDAVANG
LLC
Pskov Oblast, Russia
UAB
IDAVANG
IDAVANG
A/S
Denmark
Above group chart shows only operational entities. All group enterprises are 100% directly or indirectly owned by Idavang A/S.
Please see Parent Company Note 9 on page 66 for details.
IDAVANG LUGA
LLC
Leningrad Oblast, Russia
Lithuania
Revenue for the ldavang group was EUR 100.2m in 2021 against EUR 101.8m in
2020. EBITDA was EUR 14.6m against EUR 10.5m (at fixed herd prices, it was EUR
14.4m against 2020 of EUR 19.7m), and profit after tax was EUR 2.4m against EUR
-7.8m loss in 2020.
In Q3 2021, Ostrov farm in Russia was impacted by ASF outbreak, and the herd
was utilized in September. However, insurance payment received covered all
costs except inventories in the feed kitchen (expensed) and the production of a
new breeding herd started in Idavang Agro in January 2022. Overall is, the ASF
outbreak estimated to have impacted 2021 EBITDA (FHP) negative with around
EUR 2,5m (hereof EUR 0,5m feed kitchen).
The utilized herd in Ostrov (2.9 MT) equals three months' average production of
tons of meat (insurance sum is included as other revenue), whereas four months
of missing production is impacting revenue. Therefore, production volume in
Russia during 2021 decreased (from 39,5 to 35,6 MT or -10%). The 10% reduction
equals lost production for four months in Ostrov. In Lithuania, production was
unchanged at 55,1MT compared to 2020.
The massive outbreaks of African Swine Fever (ASF) in China seem to have come
under control. Hence China has significantly decreased pork import from the EU,
creating a massive oversupply in the EU of pork meat, especially as the covid
situation has not normalized either, giving a downwards pressure on prices for
live pigs in 2nd half of 2020.
The Lithuanian sales prices are impacted massively by development in markets
close by (Germany, Benelux, Polish and Latvian), and they have seen significant
reductions in production during 2021. The ASF outbreak in Germany still reduces
11
Management's Review
export. Hence production has been reducing quite significantly, and the outlook
for 2022 is that reduction continues. Poland has, during 2021, been heavily
impacted by ASF, which, combined with high feed prices, have given significant
decreases in polish pork production. The Netherlands has again introduced new
subsidies to close pork production near Natura 2000 areas, so considerable
reductions are expected here. Hence, pork production in Northern Europe is
being reduced, which is expected to impact sales prices from mid-2022 positively.
In Russia, supply and demand balance, with a slight undersupply. Idavang does
not expect the government to introduce subsidy programs to increase
production further. As construction prices of new stables are not justified by cash
flow, no significant expansion is expected. Therefore, reasonably sales prices in
the following years are expected.
Overall, these market developments generated a stable sales price of 1,11
EUR/kg for the whole year compared to 2020 (-12% in Lithuania and +16% in
Russia). Although feed average prices were 6% higher than in 2020 (effecting
negative with EUR 3.8m), the underlying market increases have been even higher,
which was migrated by hedging efforts.
Field activities had another strong harvest in 2021 (EBITDA EUR 5.2m), similar to
2020 (EUR 3.9m), where especially the increasing prices of rape (from 311 EUR to
507 EUR/T) improved EBITDA.
The group invested EUR 3.9m in 2021, which is less than the depreciation of EUR
7.1m. This is similar to 2020 (EUR 4.0 m) as no stables have been constructed in
the last years.
The equity on 31st December 2021 amounted to EUR 39.7m at an equity ratio of
27% (20% 2020). The equity increased with EUR 9,8m partly due to stronger RUB
and hedging gains of EUR 8,0m.
Net interest-bearing debt (NIBD) decreased to EUR 78.5m in 2021, being EUR
9.2m lower than in 2020 (87.9 mEUR). Nevertheless, the following need to be
considered EUR 4,3m from hedging transactions which will be included in EBITDA
in 2022 and cost to repopulate Ostrov, which will be made in 2022. Idavang has
almost four years duration with the EUR 75m bond left, hence having very stable
financing.
Our vision is to achieve
and maintain the highest
quality of pigs while strictly
adhering to all ethical and
environmental standards.
Our mission is to be the top
producer of pigs in the
Baltic states and North Western
Russia, renowned for high
quality pigs produced in
accordance with top ethical and
environmental standards.
We strive to be an important
and dependable partner to our
clients, an actively benevolent
member of the surrounding
communities, an employer who
provides an exciting and
appealing workplace
environment while offering
our employees personal and
professional development
opportunities, as well as steady
career possibilities.
Operating profit as per profit and loss
Depreciations
EBITDA
Value adjustment biological assets (reversed)
EBITDA at fixed herd prices
EUR’000 2020
2,782
7,698
10,480
9,263
19,743
2021
7,497
7,132
14,629
-271
14,358
L A T V I A
E S T O N I A
F I N L A N D
S W E D E N
N O R W A Y
D E N M A R K
G E R M A N Y P O L A N D
B E L A R U S
R U S S I A
L I T H U A N I A
Group activitiesRegion / market
Core Activity
Idavang's core activity is the production and sale of high-quality slaughter pigs and
weaners in Russia and Lithuania.
ldavang specialises in both brown field and green field pig production projects in
Lithuania and Russia.
We acquire and invest in larger production sites. We refurbish the facilities and renew
the technology and knowhow with the companies well-developed production solutions.
Production sites are within a reasonable geographic area to enhance synergies.
12
Key Market Facts
31%
#1
Pig Producer
55k
tonnes/year
Market
Share
Lithuania
8%
#2
Pig Producer
36k
tonnes/year
Market
Share
North Western Russia
Management's Review
ldavang A/S started operating the first farm Šalnaičiai (Lithuania) with an initial
investment of EUR 800 thousand.
Rupinskai farm was acquired; in total, 3,000 sows were held.
Mūša, Sajas and Kalvarija farms were acquired, and the production volume exceeded
11 kMT by 2005. ldavang paired off with IØ Fund (Danish Government) in Lithuanian
operations from 2001-2005.
Activities were expanded to Russia as Farm Vostochny (Idavang Agro LLC) was
acquired and reached a total of 6,600 sows the next year.
Skabeikiai, Lekėčiai and Pasodėlė farms were bought, bringing sows in operation up to
19,000.
Construction of Farm ldavang Ostrov, a green field farm, began in Russia and in
Lithuania Joniškis, Šeduva and Šešupė farms were acquired. Furthermore, the
International Finance Corporation (part of World Bank Group) became a ldavang A/S
shareholder.
Russian expansion continued. Farm Ostrov went into operation, and field operations
increased significantly.
Construction of biogas sites in Lithuania in cooperation with Modus Energy and
establishment of contracting in Poland. ldavang Lithuania started to use as a boars
station.
Idavang Group issues re-financing using a EUR 85m bond.
Bond was listed on Nasdaq and construction on Luga site in Russia started.
Luga slaughter pig stables in operation, and Berzai farm was rented in Lithuania to
reduce contracting in Poland.
Refinanced 85 mEUR bond with 75 mEUR bond and reduced share capital with 20% by
acquiring IFC shares.
13
1999
2002
2006
2010
2011
2013
2014
2018
Historical Development Knowledge Resources
Management's Review
ldavang produces commodities in an international, competitive
environment.
One of the only ways we can secure our position as market leader in
regard to productivity and quality is to retain our employees, develop
their skills and enable them to constantly improve.
2017
2019
2008
2020
Grain
Production
Pig
Production
Slaughter
House
Farmlands
Grain
Production
Pig
Production
Slaughter
House
Farmlands
Lithuania Value Chain
14
Management's Review
Lithuania
Lithuania, our focus is on pig production
within brown field projects, as it utilize our
core competencies and superior efficiency
in pig production.
Sales is made weekly auctioneering of
slaughter pigs for the best possible prices
based on demand and supply in the
Lithuanian and Polish market.
Production, utilize our core competencies
and superior efficiency in pig production.
> Sourcing of feed component is done
predominantly from a limited number of
larger local agricultural companies, to
which we have long relations.
> Manure is sold to local farmers as
fertilizer instead of cultivating the fields,
but Idavang spread most of it on the
farmer’s fields to secure the correct
handling.
Business Model Value Chain
Russia Value Chain
Russia
Russia, our focus has an extended value
chain as it include farmland, grain
production and pig production in both
green field and brown field projects.
Sales is made weekly auctioneering of
slaughter pigs for the best possible prices
based on demand and supply in the
Leningrad and Pskov Oblast market.
Production, utilize our core competencies
and superior efficiency in pig production.
> Grain production on own fields supply
significant part of feed removing
dependency on Russian Farmers. Sourcing
of remaining of feed is done from a
number of medium and larger agriculture
companies predominant in Russia.
> Manure is used on own fields as
fertilizer, but some part is also supplied to
local farmers for their fields as fertilizer.
2021
EUR/kg
0.1
0.2
0.3
Q1 Q2 Q3 Q4
0.22
0
2020
Q1 Q2 Q3 Q4
0.22
0.23 0.23
0.22
0.24 0.24
0.25
EUR/kg
2021
0.2
0.4
0.6
0.8
1.0
1.2
0
1.4
1.6
Q1 Q2 Q3 Q4
2020
Q1 Q2 Q3 Q4
1.44
1.20
1.05
0.92
0.97
1.14
1.02
0.85
EBITDA fixed herd prices reflect that the above EBITDA has been adjusted for the unrealized value
adjustment related to biological assets.
The EBITDA fixed herd price for 2021 amounted to 1,441 kEUR, corresponding to an EBITDA margin of 2.7%
(2020: 10,408 kEUR and EBITDA margin 17.2 %). Hence, the EBITDA fixed herd price decreased compared to
2020 of EUR 8,9m.
The sales price decreased 12 % compared to 2020 to an average 0,99 EUR per kilo slaughter pigs’ live weight
in 2020 (2020: 1,13 EUR per kilo live weight slaughter pigs) with an effect of EUR 7,2m, whereas higher feed
prices impact negative (with EUR 1.7m). Cost per kg. (excluding feed) was slightly lower than 2020.
Management's Review
15
Business Review 2021
Development in Segments
Live weight sales price
Feed price
Lithuania
accounted for
54%
of Group revenue
in FY2021
(60% in FY2020).
Lithuania
EUR’000 FY2021
Lithuania
Lithuania
53,864
159
−56,338
−1,808
2,818
0
−1305
304
−1,259
−2,260
492
−1,768
2,905
1,600
1,441
FY2020
60,551
-11,270
-53,098
-1,844
1,615
2
-4,044
195
-1,251
-5,100
765
-4,335
3,182
-862
10,408
Revenue
Value adjustment, biological assets
Production costs
Administrative costs
Other income
Other expense
Operating profit
Financial income
Financial expenses
Profit before tax
Tax on profit for the year
Profit for the year
Depreciations included in production cost
EBITDA
EBITDA fixed herd prices (excl. value adjustment)
2021
EUR/kg
Q1 Q2 Q4
0.24
0.1
0.2
0.3
0
0.23
Q3
2020
Q1 Q2 Q4Q3
0.24
0.23
0.23
0.22
0.27
0.28
EUR/kg
0.2
0.4
0.6
0.8
1.0
1.2
0
1.4
1.6
2020
Q1 Q2 Q3 Q4
1.12
1.05
1.21
1.02
1.12
2021
Q1 Q2 Q3 Q4
1.27
1.42
1.35
16
Live weight sales price
Feed price
Russia
accounted for
46%
of Group revenue
in FY2021
(40% in FY2020).
Russia
Management's Re
view
Business Review 2021
Development in Segments
EUR’000
Russia
Russia
EBITDA fixed herd prices reflect that the above EBITDA has been adjusted for the unrealized value
adjustment related to biological assets.
The EBITDA fixed herd price for 2021 amounted to 13,543 kEUR, corresponding to an EBITDA margin of
29.3% (2020: 9,917 kEUR and EBITDA margin 24.1%). The EBITDA fixed herd price increased compared to
2020 of EUR 3,0m is negatively influenced by the ASF outbreak in Ostrov with approximately EUR 2,5m.
The sales price increased 16% compared to 2020 to an average 1,28 EUR per kilo slaughter pigs' live weight
in 2020 (2020: 1,10 EUR/kg) with a positive effect of EUR 6,4m, whereas higher feed prices impact negative
(with EUR 2.2m), and lower volumes negative (EUR 0,9 m).
Feed prices increased 9% in 2021 (with effect of EUR -2.2m), but at the same time, high prices positively
influenced the harvest, which increased in price (with EUR 1.2m).
FY2021
46,299
112
-42,010
-1,287
6,865
-551
9,428
916
-2,328
8,016
-107
7,909
4,227
13,655
13,543
FY2020
41,203
2,006
-35,516
-1,038
821
-67
7,409
1,071
-2,643
5,837
-83
5,754
4,514
11,923
9,917
Revenue
Value adjustment, biological assets
Production costs
Administrative costs
Other income
Other expense
Operating profit
Financial income
Financial expenses
Profit before tax
Tax on profit for the year
Profit for the year
Depreciations included in production cost
EBITDA
EBITDA fixed herd prices (excl. value adjustment)
Product mix
2014 2015 2016 2017 2018 2019
0
Slaughterpigs LT Slaughterpigs RU 30 kg LT 30 kg RU Sows
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Management's Review
17
Revenue
Revenue decreased from EUR 101.8 m to EUR 100.1 m (-2%). The decrease of EUR 1.7 m was due to
lower volume (ASF Ostrov) as average prices were unchanged. The lower volume in Ostrov isolated
impacted revenue negatively with approximately EUR 5.6 m.
Herd value adjustment
In 2021, the fair value adjustment for herd comprised EUR +0.3m. Therefore, the adjustment
consists in both countries of minimal increase between EUR 0.1-0.2m.
Production cost
Production costs increased by EUR 5.1m to EUR 88.6m from EUR 88.6m (5.4%). The decrease was
mainly due to the following four factors:
> Feed cost impacted production cost with EUR-0.8m (a decrease compared to 2019 equals -1.0%,
of which volume is +6.1% and price -5.1%)
> Lower maintenance cost of EUR -0.9m
> Increase in herd of EUR -1.7m higher (EUR 2.6 m in 2020 – EUR 0.9m in 2019), as size of slaughter
pigs on stock is higher (as sale of weaners have finished), which reduce production cost
> Devaluation of RUB by 11% (average 2019 EUR/RUB rate compared to average 2020 improved)
Grant
The Government level of direct subsidies for meat and grain (excluding interest subsidies) is slightly
higher in 2021 (EUR 2.1m) due to covid payments compared to 2020 (2020: EUR 1.0m).
Furthermore, the harvest result includes grants of EUR 0.2m, similar to 2020 (EUR 0.3m).
Slaughter pigs Lithuania - Price / Kg live weight
Weaners Lithuania - Price / Unit
Slaughter pigs Russia - Price / Kg live weight
Weaners Russia - Price / Unit
Sales prices in EUR / Averages
2018
1.01
53
1.33
53
2019
1.23
71
1.23
49
2020
1.13
87
1.10
45
The interest subsidy structure is so that the subsidy goes directly to the bank
from the government, and the bank then provides loans with lower interest
instead. As a result, all Russian loans have fixed interest rates of approximately
3,5% in RUB.
2020
2021
0.99
-
1.28
-
2021
18
Import has been closed for European
due to veterinarian reasons (from
2014) and embargo (from 2015).
Therefore, the main competitive
product is imported chilled and
frozen meat within or outside quotas
from Brazil. The quota system
changed from January 1st 2020, and
replaced with a flat rate, but as
Russia is self supplied it has limited
effect.
Interest subsidies of apx. 7% on
loans, which fulfil a number of
criteria, typical a net interest of 3.5%.
Current situation regarding
support from the Russian
government
Periodic political tension and
international sanctions against
Russian interest might negatively
impact the Russian economy.
Therefore, this environment may
potentially have a negative impact on
Idavang's operations in Russia and
the financial position.
Especially as negative impact on the
Russian economy is expected to
negatively influence russian
consumers' purchase power, hence
reducing pork consumption.
Russian political risk
As pork is a global commodity. global
supply and demand influences prices
in all markets to a higher or lower
degree, ldavang mitigates this by
focusing on markets where there is an
undersupply of pork.
Thereby, we compete with producers
in other markets. which need to
transport the pork to North Western
Russia or Lithuania.
Fluctuations in prices
of pork
Current RisksOutlook
The company expects an EBITDA at fixed herd prices for 2022 below eight-
year historical average EUR 19,9m because Ostrov production will still be
missing part of 1st half 2022, but unlikely below 13 mEUR.
Meat prices
Assumptions below are based on the continuation of the current USD/EUR
level, and demand from China/Asia from Europe does not further reduce
compared to 2021 levels.
EU/Lithuania average prices for 2021 are expected to be higher than in 2021
(0,99 EUR/kg)
Russian pork prices 2021 are expected to be higher than in 2021 (1,28
EUR/kg)
Feed price
Feed price is expected to be higher than in 2021, mainly due to grain prices.
EURRUB exchange rate
Management expects the EURRUB average in 2022 to be in the range of
83-
100 (average in 2021 was 87,71 with a monthly average range of
82,06-90,91).
Management's Review
The EBITDA fixed herd price 2021 (EUR 14.4m) was lower compared to 2020
(EBITDA EUR 19.7 m) as expected, precisely in the middle (of range EUR 13,0-19,7m)
if adjusted for the unexpected loss of EUR 2,5m due to ASF outbreak in Ostrov.
Meat prices
EU Lithuanian prices of 0,99 EUR/kg were 0,14 EUR below (2020 1,13 EUR), hence
more than slightly below expected. Nevertheless, this was due to the assumption
that demand from China/Asia on the same level was not fulfilled (it was significantly
below 2020). Russian pork average price was above expectations of 1,10 EUR/kg
(with 1,28 EUR/kg), as the balance of supply and demand have been re-established
in the Russian market.
Feed price
Feed price was higher than 2020, mainly due to grain prices as expected.
Follow up on 2020 outlook
19
Current Risks
During 2021, the RUB has
fluctuated within a range of 8%
against the EUR. As a result, the
total effect for 2021 was an 8%
appreciation EUR/RUB, which
positively affected equity by EUR
3.7m, as all Russian tangible
assets are measured in RUB.
Financial risks
An outbreak of a serious disease
could potentially cause a loss of
earnings from the relevant farm for a
period during which a replacement
herd would be put into operation.
Production management places high
focus on the risk, and the highest
biosecurity measures are taken.
Furthermore, the herd is insured for
all diseases to mitigate the risk to the
highest possible degree.
Diseases
An economic downturn or an
uncertain economic outlook in the
Russian economy could adversely
affect consumers‘ meat and pork
consumption habits.
Similarly, a global economic
downturn or an uncertain economic
outlook in the world economy could
adversely affect global consumers‘
meat and pork consumption habits.
With pork being a global commodity,
the individual regions as EU or Russia
will also be effect, but the effects
might be lower as regional markets
have own fluctuations.
Russian, EU and global
economic conditions
The concentration of production
facilities in North Western Russia and
Lithuania means that ldavang's
operations are dependent on the
degree to which raw materials can be
imported and the possibility of
exporting from Lithuania to EU and
especially Russia (if it opens up
borders) ensures the best prices for
Lithuanian live pigs.
Two areas can disrupt this export
possibility: the political situation and
outbreaks of diseases.
Currently, Russian borders are closed
for all imports of live commercial pigs
and for chilled and frozen meat from
a number of countries due to
veterinarian and/or political reasons
(embargo).
Polish borders are closed for all
imports of live commercial pigs from
ASF Zone 2+3 in Lithuania, whereas
pork meat from ASF Zone 2 can be
sold in Poland, chilled and frozen.
Concentration of production
facilities in North Western
Russia and Lithuania
Pigs are fed grain, protein (e.g. soya
and sunflower) and premixes (vitamin
and minerals), which account for a
significant part of production costs.
An increase in these prices, together
with an inability to transfer such
increased costs to
slaughterhouses, may have a material
adverse effect on ldavang's profit.
Over time, such an imbalance will
lead to inefficient producers and
closed productions; hence supply will
be reduced, which will increase prices
again.
ldavang mitigates this exposure by
being a cost-efficient producer with
high productivity and operations in
markets with natural premiums.
Fluctuations in prices of
raw materials
Management's Review
Corporate Social Responsibility
ldavang's CSR policy covers the four areas of the UN
Global Compact:
The CSR policy also has special focus on climate
change, occupational health and safety, animal welfare
and community development.
The company focuses on the following five values:
20
The ldavang group is constantly working on safe-
guarding these values throughout our organization.
Historically, the ldavang group has always focused on
CSR, including animal welfare. Consequently, ldavang
has had group-housed sows and used partly slatted
floors since its establishment in 1999.
The company business model can be seen on page 12
In corruption cases, contracts with employees and
suppliers are terminated without any limitation.
ldavang has not identified any corruption cases in
2021, and does not expect to identify any corruption
cases in 2022.
Intellectual Capital Resources
ldavang considers the employees and the organizatio-
nal culture as the most important assets of the
company. The Company's long term success is highly
linked to attracting, retaining and developing the
employees. which is why both internal and external
training and education are priorities of ldavang.
Anti-corruption Policy
The aim of the company's anti-corruption policy is to
define ldavang's business practice for countering
corruption and bribery and to provide guidance to
employees. ldavang has a zero tolerance policy
towards bribery and corruption.
All our partners and employees are informed about
our attitude and principles towards corruption.
Warning signs are place on walls, doors and info
boards around on the farms as well as in the country
headquarters.
This policy extends to all ldavang's business dealings
and transactions in all countries in which we operate.
The policy is fully implemented in both Lithuania and
Russia. Suppliers and business contacts are
periodically being informed about requirements.
Risk identified
Small gifts and corruption from suppliers
Actions
Small gifts (especially around Christmas) are mainly consumed at
work.
In corruption cases, contracts with employees and
suppliers are terminated without any limitation.
ldavang has not identified any corruption cases in
2021, and does not expect to identify any corruption
cases in 2022.
Respect & Trust
Quality & Ethic
Environmental Responsibility
Constant Development
Management's Review
Human Rights
Environment Anti-corruption
Labour Rights
Transparency
Environmental Matters
Environmental matters are an integrated part of
ldavang's mission and we make no compromises. We
constantly strive to take care of the environment in all
everyday actions, and we acknowledge the need to
take care of natural resources to the benefit of future
generations.
Our focus is to reduce any negative impact that our
production may have on the environment. We do not
have full ownership of the entire value chain. However,
we urge all our business partners to help us take care
of the environment.
The manure is a valuable fertilizer which, however, has
a specific odor. Putting the fertilizer to efficient use
and causing no inconveniences to our neighbors, we
carry out careful maintenance and continuous
improvements of the manure collection, storage and
fertilization systems.
Many of our complexes in Lithuania and Russia have
successfully functioning manure management
equipment that separates the liquid and solid faction
of manure and removes excess phosphorus and
ammonia. Furthermore is there closed Lagoons on
every farm with top and double liners to prevent the
emission of ammonia, nitrogen (greenhouse gas).
21
Closed lagoons also ensure that no odour will be
released into the air.
Key risk/targets identified
Reducing the amount of mineral fertilizer by supplying organic
fertilizer (manure) to farmers on the optimal time.
Actions
Improve coordination with farmers so that the organic fertilizer has
the highest effect hence reducing the volume of mineral fertilizer.
In 2022 our work related to environmental matters will continue
unchanged from 2021
KPI is the price paid for organic fertilizer as we assume it equals
mineral fertilizer reduced. Revenue in 2021 was EUR 825k (EUR 662k).
Higher prices illustrate higher fertilizer value, partly due to increasing
energy prices.
Animal Welfare
The ethical treatment of animals is one of our
fundamental values. Our work is based on the criteria
of fairness, transparency and European and national
legislation on animal welfare. We carry out regular
reviews and assessments of our activities to ensure
top-level animal welfare and efficiency of production.
Health and Safety Policy
The main purpose of the Occupational Health and
Safety system is to protect employees' life and health
and to ensure good working conditions by avoiding
Management's Review
injuries and accidents. The Occupational health and
Safety tasks are structured in seven main tasks:
1. Strengthen and develop health and safety systems by forming
socially responsible approach to the employees' health and safety
2. Perform an occupational risk assessment of all workplaces
3. Improve the system of training certification and instruction of
employees on issues of the employees safety and health
4. Increase preventive efficiency of the employees health care
5. Increase fire safety
6. Improve safety of employees performing dangerous work
7. Providing safe, healthy work conditions for every employee
Key risk/targets identified
Work accident
Actions
Activities within this area has top priority, therefore after every accident
happens an e-mail is sent to all users, to ensure learning from the case.
Accident reports include all details, for example "During pig
vaccination, the pig climbed on employee’s left foot", followed by
pictures, employee account, etc. We will continue to improve and
strength our health and safety systems in order to reduce the number
of work accidents.
KPI is accidents 23 in 2021 (compared to 17 (2020) and expect fewer
work accidents than 23 in 2022
Work accident are defined as “a person was injured and he or she had
sick leave or missed one or more working days”
Climate
Focus in our business relates not only to our
production facility, but also to our partner companies.
Focus is on reducing energy consumption, which is
done in many areas implementing efficient straw
boilers as source of heat, ensuring that our partners
use new EURO4/EURO5 trucks that use AdBlue
technology and utilizing gas in manure though biogas.
Biogas, where we use our efforts together with a
business partner (Modus Energy) we have established
biogas plants with the aim to improve environmental
targets.
In 2016 we managed to become net supplier of
energy, as you can see in the graph we have increased
the net supply the latest years.
Net consumption
kWh
5,000
10,000
15,000
20,000
25,000
0
22
Human Rights
We care about human rights, hence we do not tolerate
discrimination of any kind, be it about nationality,
gender, age, sexual orientation or other. Neither do
we tolerate violence physical nor psychological against
employees or management.
Key risk/targets identified
Child labor and discrimination in our company / supply chain
Actions
Suppliers are periodically reviewed for fulfilling Idavang standards of,
among others, anti-corruption, human rights (including child labor
and discrimination), and animal welfare.
During reviews done in 2021, there were no identified violations of
Idavang standards, and do not expect to identify violations of Idavang
standards in 2022.
Community Relationships
We will continue our work on supporting the
neighboring communities, paying special attention to
educational initiatives, social issues and sustainable
development of rural territories.
-5,000
-10,000
-15,000
-20,000
Management's Review
2015
2016
2018
2017
2020
2014
2013
-25,000
2019
2021
23
Corporate Governance
Shareholders
Shareholders can exercise their rights at the general
meeting of shareholders, which is the company’s
supreme governing body.
Board of Directors
The overall task of Idavang’s Board of Directors is to
create value for the shareholders by managing the
company.
The Board resolves matters relating to Idavang’s
strategic development, budgets, risk factors,
acquisitions and divestments as well as major
development and investment projects. Furthermore,
the Board of Directors supervises the Executive Board.
Executive Board
The Executive Board of Idavang is appointed by the
Board of Directors and is responsible for the
company’s day-to-day management, including the
development and results of the company’s operations
as well as the company’s internal development.
The Executive Board is responsible for implementing
Idavang’s strategy and the overall resolutions
approved by the Board of Directors.
For details on the Board of Directors or Executive Board see
note 23.
Audit Committee
The Board of Directors has set up an Audit Committee
to assist it in supervising the financial reporting
process and the efficiency of ldavang's internal control
and risk management systems.
The Executive Board is responsible for maintaining
controls and an effective risk management system and
it has taken the necessary steps to address the risks
identified in relation to financial reporting.
The composition of the Board of Directors, Audit
Committee and Executive Board ensures the
availability of relevant competencies with respect to
internal controls and risk management.
Financial reporting
In relation to its financial reporting process, Idavang
has set up a number of internal controls to ensure that
the company’s financial reporting gives a true and fair
view free from material misstatement. The internal
control and risk management systems also ensure that
the financial reporting complies with applicable laws
and standards.
The financial reporting process is subject to systematic
assessment on an ongoing basis in collaboration with
the Audit Committee. The tasks and focus areas of the
Audit Committee are updated every year in the form
of an annual wheel. According to the annual wheel,
the tasks of the Audit Committee include monitoring
the financial reporting process in connection with the
publication of annual and interim reports, including a
review of accounting policies and significant
accounting estimates and judgments.
Internal controls and risk management systems in
relation to the financial reporting
Corporate Finance conducts regular control
inspections at Lithuanian and Russian subsidiaries to
ensure that corporate standards for internal controls
have been implemented and operate effectively.
Any proposals for improvement are reported to the
audit committee. The audit committee chairman is the
board member Jytte Rosenmaj.
The duties of the audit committee are to monitor the
following:
> The financial reporting process.
> The company’s internal control systems and risk
management systems, including insurance matters.
> The statutory audit of the financial statements.
> The independence of the auditors, including in particular
the provision of non-audit services to the Group.
Management's Review
24
Remuneration
Remuneration of members of the Board of
Directors and the Executive Board
Idavang seeks to ensure that the remuneration of the
Board of Directors and the Executive Board is at a
competitive and reasonable level compared with
companies of the same size and with the same
complexity as that of Idavang to ensure that Idavang is
able to attract and retain competent executives.
The members of the company's Board of Directors
receive a fixed fee, the amount of which is subject to
shareholder approval.
The remuneration and employment terms of the
members of the Executive Board are determined by
the Board of Directors, which also evaluates the work
of the Executive Board.
The members of the Executive Board receive a fixed
annual salary, and either have a performance-related
cash bonus or a share-based long-term incentive
program.
The remuneration paid for 2021 is specified in note 5
in the Group Notes.
Remuneration General
Idavang has a competitive remuneration system for all
employees.
Idavang pays competitive salaries to our employees.
The salary structure has standardized principles and is
transparent to all employees.
Furthermore do we provide free meals, working
clothes and footwear for our employees.
Intellectual Capital Resources
ldavang considers the employees and the
organizational culture as the most important assets of
the company.
The Company's long-term success is highly linked to
attracting, retaining and developing the employees,
which is why both internal and external training and
education are priorities of ldavang.
Management's Review
25
Human Resource Policy
The company's goal is to ensure that both genders are
always represented on the Board of Directors, which
they currently are.
The company is committed to observing the group's
human resource policy, which first key principles are
the equality of employees.
The Board of Directors has one female board member
out of five, equal to 20% (1 of 5), and non in the
management are female (by the end of 2021). The
gender representation is unchanged compared to the
end of 2020 (1 female of 9).
Idavang Group's objective has been updated so that
the target regarding diversity at the Board of Directors
level is that at least one of the board
members/management team should be of the under-
represented gender (from a target of 25%, the reason
for changing is that none of the leadership position
has changed during the recent years and none are
planned, hence have the company’s management
acknowledged that the 25% ambition is too high)
Idavang has fulfilled the ambition in 2021 and also
expects to do so in future years.
The company wishes to honor diversity and equal
gender representation in management.
When selecting new board members or new
management members, the company strives to
represent both genders among the last three
candidates.
We want the company's employees to experience
equal opportunities for employment, improvement,
career-making, and gaining management positions
regardless of gender, age or nationality.
Data Ethics Policy
The company has no policy as external data is
extremely limited, but follows all applicable laws.
Post Balance Sheet Events
Tensions between Russia and Ukraine increased
during February, as first Russia mobilized its military
on the borders, and afterward, on the 24th
February, Russia entered into Ukraine.
EU, USA and other countries applied sanctions on
Russia twice during this period. Idavang is currently
not aware of any sanctions that will directly
negatively impact Russia's operations. Nevertheless,
Idavang might be negatively affected with either
sanction unknown to Idavang already approved or
future sanctions.
Management's Review
Idavang did withdraw 4,1 mEUR from Russia to
Denmark at the begininng of February of the
intercompany loan (after approval from Nordic
Trustee and Jyske Bank). The withdrawn amount
was for February/May interest on bonds and
excess cash repayment on bonds after annual
account release. After the transfer, the
management considers the short-term liquidity
reserve in both Russia and Lithuania/Denmark
strong. Still, it has further reserves in working
capital e.g., implementing factoring in Lithuania
(3 mEUR allowed in bond terms).
Focus has also been on increasing operational
stability, increasing inventories of everything
from spare parts to feed components. Idavang
Lithuania has hedged around half of the grain
consumption for next harvest season (September
2022 - August 2023), limiting the impact of
volatile world markets.
Group
Financial Statements
Income statement
Statement of other comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the financial statements
27
27
28
29
30
31
Statement Of Other Comprehensive Income
Profit for the year
Other comprehensive income
Exchange adjustment,
foreign subsidiaries
Hedge accounting transferred
to production cost
Value adjustment at hedge
instrument of the year
Other comprehensive income
to be reclassified to profit or loss
in subsequent periods
Other comprehensive income
not be reclassified to profit or loss
in subsequent periods
2021EUR’000
16
NOTE
27
Income Statement
Revenue
Value adjustment, biological assets
Production costs
Administrative costs
Other income
Other expense
Operating profit
Financial income
Financial expenses
Profit before tax
Tax on profit for the year
Owners of the parent
EUR’000
Group
2021
Financial Statements for the period January 1 - December 31
5
3
7
4 5 6 7
8
9
10
12
2,413
3,737
-548
4,274
7,463
0
100,163
271
-98,348
-3,721
9,683
-551
7,497
1,849
-7,318
2,028
385
2,413
Total comprehensive income 9,876
Profit for the year 2,413
Attributable to:
2020
101,754
-9,263
-88,616
-3,464
2,436
-65
2,782
410
-11,635
-8,443
682
-7,761
-7,761
2020
-7,761
-12,349
-13
548
-11,814
0
-19,575
22
18
11
24
12
24
24
20
16
19
18
16
15
13
28
Balance Sheet
Assets
Total assets
2021EUR’000
Group
Financial Statements for the period January 1 - December 31
NOTE NOTE Equity & Liabilities
Total equity & liabilities
2021EUR’000
21
146,166 146,166
Non-current assets
Intangible assets
Property, plant and equipment
Biological assets
Other non-current assets:
Deferred tax
Financial assets
Total other non-current assets
Total non-current assets
Current assets
Inventories
Biological assets
Receivables
Trade receivables
Other receivables
Prepayments
Income tax
Total receivables
Assets held for sale
Cash
Total current assets
1,222
79,403
12,094
761
446
1,207
93,926
15,007
15,892
4,404
494
2,280
618
7,796
0
13,545
52,240
Equity
Share capital
Exchange adjustments
Other reserves
Retained earnings
Total equity
Non-current liabilities
Credit institutions and issued bonds
Government grants
Deferred tax
Provisions
Other non-current liabilities
Total non-current liabilities
Current liabilities
Credit institutions
Trade payables
Prepayments from customers
Income taxes
Other payables
Total current liabilities
Total liabilities
800
-34,840
4,273
69,511
39,744
74,157
1,563
1,029
0
760
77,509
17,844
6,855
1,082
0
3,132
28,913
106,422
2020
146,369
1,227
79,452
15,469
760
446
1,206
97,354
12,195
18,215
3,369
429
900
0
4,698
150
13,757
49,015
2020
146,369
800
-38,577
547
67,098
29,868
80,282
1,597
1,519
0
39
83,437
21,268
6,885
1,511
559
2,841
33,064
116,501
29
Statement Of Changes In Equity
TotalEUR’000
Share
Capital
Exchange
Adjustment
Other
Reserves
Retained
Earnings
Group
Financial Statements for the period January 1 - December 31
9Equity at 31 December 201
Profit/loss for the year
Exchange rate adjustments, foreign subsidiaries
Hedge instrument transferred to production cost
Value adjustment of hedge instrument of the year
Total comprehensive income
Buyback of own shares
20Equity at 31 December 20
Profit/loss for the year
Exchange rate adjustments, foreign subsidiaries
Hedge instrument transferred to production cost
Value adjustment of hedge instrument of the year
Total comprehensive income
21Equity at 31 December 20
1,000
0
-200
800
0
800
67,348
-7,761
-12,349
-13
548
-19,575
-17,905
29,868
2,413
3,737
-548
4,274
9,876
39,744
92,564
-7,761
-7,761
-17,705
67,098
2,413
2,413
69,511
12
-13
548
535
547
-548
4,274
3,726
4,273
-26,228
-12,349
-12,349
-38,577
3,737
3,737
-34,840
30
Cash Flow Statement
Group
Financial Statements for the period January 1 - December 31
16
NOTE
Operating profit/loss
Depreciation and amortisation
Profit from sale of tangible assets
Accrual of hedging accounting
Changes in inventories
Changes in receivables
Changes in trade payables & prepayments from customers
Changes in other current liabilities
Share-based payments
Addition of biological assets
Value adjustment, biological assets
Total
Interest received
Interest paid
Corporation tax paid
Cash flows from operating activities
2021 2021EUR’000NOTE EUR’000
Acquisition of intangible assets
Acquisition of property, plant and equipment
Disposal of property, plant and equipment
Acquisition/disposal of biological assets (non-current*)
Acquisition of investments
Cash flows from investing activities
Proceeds from borrowings
Repayment of borrowings
Surplus from IFC escrow account*
Dividends paid
Cash flows from financing activities
Net cash flows from operating,
investing and financing activities
Cash and cash equivalents at 1 January
Exchange adjustments
Cash and cash equivalents at 31 December
7
6
16
13
15
21
24
24
The Group owns EUR 3.7m (2020: EUR 0.0m) Idavang A/S bonds year end, furthermore the Group has EUR 9.0m overdraft (2020: EUR 4.9m).
* Idavang established in 2017 an escrow account with 25 mEUR dedicated for repurchasing 20% Idavang A/S shares, the repurchase was made in 2020 and surplus of escrow account less purchase price was returned to general purposes.
2020
2,782
7,698
-18
535
862
4,661
4,036
991
-134
-2,078
9,263
28,598
410
-7,279
39
21,768
2020
-15
-4,012
221
-411
0
-4,217
88,578
-101,296
6,722
0
-5,996
11,555
5,524
-3,322
13,757
7,497
7,132
-203
3,726
-1,916
-2,363
-691
911
0
4,617
-271
18,439
1,327
-7,086
-1,284
11,396
-6
-3,942
445
2,381
0
-1,122
13,066
-24,296
0
0
-11,230
-956
13,757
744
13,545
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 1.
Significant Accounting Policies
Basis of preparation
The consolidated financial statements are prepared in accordance with International Financial Reporting
Standards ('IFRS') as adopted by the EU and additional Danish disclosure requirements for financial
statements prepared by large reporting class D enterprises.
The consolidated financial statements are presented in EUR. The parent's functional currency is DKK.
The financial statements have been prepared on the historical cost basis except for biological assets and
hedging contracts, which are measured at fair value, and amortized cost for loans were relevant.
The accounting policies remain unchanged from previous year.
Consolidated financial statements
Subsidiaries are all entities (including structured entities) over which the group has control. The group
controls an entity where the group is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are
deconsolidated from the date that control ceases.
The consolidated financial statements are prepared by aggregating the parent's and the subsidiaries' financial
statements, prepared in accordance with the accounting policies applied by the group. Intra-group income
and expenses, shareholdings, etc., intra-group balances and dividends and realized and unrealized gains on
transactions between the consolidated entities are eliminated on consolidation.
Currency translation
Transactions denominated in foreign currencies are translated into EUR at the exchange rates at the date of
the transaction. Monetary items denominated in foreign currencies are translated into EUR at the exchange
rates at the balance sheet date. Realized and unrealized exchange gains and losses are recognized in profit or
loss as financial income/expenses.
Non-monetary assets and liabilities measured at historic cost in foreign currencies are translated into EUR at
1
the exchange rates at the date of recognition. Non-monetary assets and liabilities measured at fair
value in foreign currencies are translated into EUR at the exchange rates at the date of determination
of the fair value.
Derivative financial instruments
The Group enters into commodity contracts with respect to grain in order to secure future supply.
Derivate financial instruments are initially measured at fair value at the time of conclusion of the
contract and subsequently at fair value at the balance sheet date. They are recognised in other
receivables when the fair value is positive and in other payables when the fair value is
negative.Changes in the fair values of derivate financial instruments that are designated and qualify
as hedges of future commodity purchases are recognised in other comprehensive income. Income
and expenses relating to such hedging transactions are transferred from other comprehensive
income on realisation of the hedged item and are recognised in the same entry as the hedged item.
Any gains or losses arising from changes in the fair value of derivative financial instruments that not
qualify as hedges are recognised under net financials in the income statement.
Purchase contracts
The company enters into purchase contracts on feed components, for future delivery, for use in pig
production (executory contracts). The cost price for the grain is the agreed contract price which is
recognised in the books at time of delivery.
An onerous executory contract is a contract in which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received under it. An
executory contract for purchase of inventory is deemed onerous if the economic benefit expected to
be received from the products produced with it (net realisable value of the inventories to be
obtained) is lower than the costs. For onerous contract a provision is recognised.
31
EUR/RUB
EUR/DKK
31.12.2021
84.0695
7.4365
31.12.2020
90.68
7.4393
Exchange rate
2020 average
82.07
7.4393
2021 average
87.71
7.4365
NOTES: Group
Financial Statements for the period January 1 - December 31
Share-based payments
Employees in the Group receive compensation in the form of share-based payments with the employees
providing services as consideration for equity instruments ('equity-settled share-based payments').
Expenses incurred in connection with equity-settled share-based payments to employees are measured
on the basis of the fair value at the grant date. The fair value is determined using an appropriate pricing
model, see note 6.
Expenses related to equity-settled share-based payments are recognised over the vesting period. The
total expenses recognised in respect of equity-settled share-based payments at the balance sheet date
reflect the share of the vesting period that has passed and the group's best estimate of the number of
equity instruments that will eventually vest.
The amount recognised in profit or loss represents the change in the total expenses recognised at the
beginning and at the end of the year.
Income statement
Revenue
Revenue from sale of slaughter pigs and weaners are recognised in the income statement when the
delivery and transfer of risk to the buyer has been made before year end. Revenue is recognised exclusive
of VAT and is measured at the fair value of the consideration received or receivable.
Production costs
Production costs comprise expenses incurred in generating the revenue for the year.
Such costs include direct and indirect production costs relating to raw materials and consumables, wages
and salaries, rent and leases, and depreciation, amortisation and impairment losses in respect of
production plant.
Dividend
Dividend revenue is recognised when the Group's right to receive the dividend has been established.
Net financials
Financial income and expenses are recognised in profit or loss at the amounts that relate to the
reporting period. Net financials include interest income and expenses, realised and unrealised capital
and exchange gains and losses on securities and foreign currency transactions and surcharges and
allowances under the advance-payment-of-tax scheme, etc.
Government grants
The Group's government grants are subject to IAS 20 and comprise:
Government grants related to expenses
In Russia, the Group receives government grants in the form of reimbursement of interest expenses
on loans, cost recovery for cost related to the production of crops and compensation for high grain
prices.
Government grants related to expenses are recognised as income as the right to the grant is earned
and received, i.e. as the eligible expenses are incurred and the grant is deposited in a bank account.
Government grants related to property, plant and equipment
In Lithuania, the Group receives government grants for the investment of property, plant and equip-
ment in return for the Group's commitment to carry on pig production for a certain number of years.
Government grants for assets are recognised as deferred income, which is reduced in step with the
depreciation of the related asset and recognised in profit or loss under depreciation.
Income taxes
Income taxes include current tax on the year's expected taxable income and the year's deferred tax
adjustments less the share of the tax for the year that concerns changes in equity.
Current and deferred taxes related to items recognised directly in equity are taken directly to equity.
32
put into operation.
Depreciation is calculated on the basis of cost price reduced by the residual value and any
impairment losses. The residual value is determined at the date of acquisition and is reviewed on an
annual basis. If the residual value exceeds the carrying amount of the asset, depreciation is
discontinued. Where the depreciation period or the residual value changes, the effect on depreciation
is recognized prospectively as a change in accounting estimates.
Property, plant and equipment are depreciated using the straight-line method on the basis of the
cost over the following useful lives:
Land is not depreciated. Gains and losses from the sale of property, plant and equipment are
calculated as the difference between the selling price less selling costs and the carrying amount at
the time of sale. Gains or losses are recognised in profit or loss.
Property, plant and equipment are tested for impairment whenever there is an indication that an
asset might be impaired. The impairment test is performed for each individual asset or group of
assets, respectively.
The carrying amount of the assets is reduced to the higher of the value in use and the fair value less
costs to sell of the asset or group of assets (recoverable amount) if it is lower than the carrying
amount.
Balance sheet
Intangible assets
Intangible assets with indefinite lives comprise goodwill. Goodwill is not amortised but is tested for
impairment on an annual basis. The impairment test is performed for the cash-generating unit to which
the goodwill belongs. The carrying amount of goodwill is reduced to the higher of the value in use and
the fair value less costs to sell of the activity or the business area to which the assets relate (recoverable
amount) if it is lower than the carrying amount.
Intangible assets with definite lives
Intangible assets with definite lives comprise electricity rights and the right to buy leased land in Russia.
The rights are measured at cost less accumulated amortisation and impairment.
Rights are depreciated using the straight-line method on the basis of the cost over the following
useful lives:
The rights are tested for impairment whenever there is an indication that they might be impaired. The
impairment test is performed for each individual asset or group of assets, respectively. The carrying
amount of the assets is reduced to the higher of the value in use and the fair value less costs to sell of the
asset or group of assets (recoverable amount) if it is lower than the carrying amount.
Property, plant and equipment
Property, plant and equipment include land and buildings, plant and machinery and other fixtures and
fittings, tools and equipment. Property, plant and equipment are measured at cost less accumulated
depreciation and impairment. The cost includes the cost of acquisition, expenses directly attributable to
the acquisition of the asset and expenses incurred to prepare the asset until such time as it is ready to be
Useful life, years
20-25
Intangible assets Rights
NOTES: Group
Financial Statements for the period January 1 - December 31
33
Useful life, years
25-40
8-15
3-10
5
10
3-70
Buildings
Plant and machinery
Other fixtures and fittings, tools and equipment
Fixed assets
Buildings - office
Buildings - production
Other (contract length)
Leasing assets
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset,
which is an asset which requires a substantial period of time to get ready for its intended use or sale, are
capitalised as part of the cost of the asset concerned until such time as it is essentially ready for its
intended use or sale. Borrowing costs comprise interest and other expenses incurred in connection with
borrowing.
Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. The Group applies a single recognition and measurement approach for all leases, except
for short-term leases and leases of low value assets. The Group recognizes lease liabilities to make lease
payments and right-of-use assets representing the right to use the underlying assets.
Right-of-use-assets. The Group recognizes right-of-use assets at the commencement date of the lease.
Initially right-of-use assets are measured at the present value of the future lease payment plus the cost of
obligations to refurbish the assets. Payments mainly consist of fixed payment and is adjusted for any
remeasurement of lease liabilities. The leased assets are depreciated on a straight-line basis over the
shorter of the lease term and the estimated useful lives of the assets.
Right-of-use assets are tested for impairment whenever there is an indication that the asset may be
impaired.
Lease liabilities. At the commencement date of the lease, the Group recognize lease liabilities measured
at the present value of lease payment to be made over the lease term. The lease payments include fixed
payments. In calculating the present value of the lease payments, the Group uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the lease is not
readily determinable.
After the commencement date, the amount of lease liabilities is reduced for the lease payments made and
the carrying amount of the lease liability is re-measured if there is a modification, a change in the lease
payments or a change in the assessment of an option to either extend or terminate the contract. The
Group’s lease liabilities are included in interest bearing debt (see note 25).
Short-term leases and leases of low value assets. The Group applies the recognition exemption to its
NOTES: Group
Financial Statements for the period January 1 - December 31
short-term (lease term of less than 12 months that do not contain a purchase option) and low value
asset leases. Lease payments on these contracts are recognized as expenses.
Biological assets
Biological assets are recognized when the Group controls the asset and it is probable that future
economic benefits associated with the asset will flow to the Group and the cost or fair value of the asset
can be measured reliably. Biological assets are measured at fair value less selling costs.
Value adjustments of biological assets are recognized in profit or loss for the period to which they relate.
The value of crops is calculated at cost plus production overheads. At the time of harvest, crops are
reclassified from biological assets to inventories, measured at fair value less the cost of transportation,
which subsequently makes up the cost.
Breeding herds are classified as non-current. Commercial herd (slaughter pigs) are classified as current.
Inventories
Inventories are measured at cost by reference to the FIFO method. Where the net realizable value is less
than the cost, the carrying amount is reduced to such lower value.
Receivables
Receivables are recognized initially at fair value and subsequently measured at amortized cost less
impairment assessment is based on the Expected Credit Loss model (ECL).
The ECL model involves a three-stage approach under which financial assets move through the stages as
their credit quality changes.
The stages determine how impairment losses are measured and the effective interest is applied. For
trade receivables, the Group applies the simplified approach, which permits the use of lifetime ECL.
Provisions rates are determined based on groupings of trade receivables sharing the same credit risk
characteristics and days past due.
Prepayments
Prepayments comprise prepaid expenses.
34
or whose fair value is disclosed, are classified based on the fair value hierarchy, see below:
Level 1:
Value in an active market for similar assets/liabilities
Level 2:
Value based on recognized valuation methods on the basis of observable market information
Level 3:
Value based on recognized valuation methods and reasonable estimates (non-observable market
information).
Cash flow statement
The cash flow statement shows the Group's and the parent company's net cash flow during the year,
the year's changes in cash and cash equivalents and the cash and cash equivalents at the beginning
and at the end of the year.
Cash flows from operating activities are presented using the indirect method and are calculated as the
profit or loss for the year, adjusted for non-cash operating items, changes in working capital, paid
financial expenses and paid income taxes.
Cash flows from investing activities comprise payments related to additions and disposals of fixed
assets, securities related to investing activities and dividends received from subsidiaries. Cash flows
from financing activities comprise dividends paid to shareholders, borrowings and repayments of
interest-bearing debt.
Cash and cash equivalents comprise cash.
Financial highlights
Financial ratios are calculated in accordance with the recommendations of the Danish Finance Society.
Segment information
Revenue, result, total assets and liabilities has been allocated according to geographical markets.
NOTES: Group
Financial Statements for the period January 1 - December 31
Equity
Foreign currency translation adjustments
Foreign currency translation adjustments comprise exchange adjustments in connection with the
translation of foreign subsidiaries' balance sheets from their functional currency into the Group's
presentation currency.
Other reserves
Other reserves comprise hedge accounting in Lithuania.
Income taxes
Current taxes are recognized in the balance sheet as the estimated tax in respect of the expected taxable
income for the year, adjusted for tax on prior years' taxable income and tax paid in advance.
Provisions for deferred tax are calculated at local rates of all temporary differences between carrying
amounts and tax values, with the exception of temporary differences occurring at the time of acquisition
of assets and liabilities neither affecting the results of operations nor the taxable income, and temporary
differences on goodwill.
Deferred tax assets are recognized at the value at which they are expected to be utilized, either through
elimination against tax on future earnings or a set-off against deferred tax liabilities.
Financial liabilities
Financial liabilities comprise mortgage debt, payables to other credit institutions and subordinated loans.
Financial liabilities are recognized at the inception of the loan at the proceeds received, net of transaction
costs incurred. Financial liabilities are subsequently measured at amortized cost, determined by reference
to the effective interest rate at the time of borrowing.
Fair value
Fair value measurements are based on the principal market. If no principal market exist, the measurement
is based on the most advantageous market, i.e. the market that maximizes the price of the asset or
liability less transaction and/or transport costs. All assets and liabilities which are measured at fair value,
35
Earnings before interest, tax, depreciation and amortization
EBITDA x 100 / Revenue
Current assets x 100 / Current liabilities
Total equity x 100 / Total assets
Profit for the year x 100 / Equity
Weight of slaughter pigs, piglets, weaners and sows sold
1,000,000 kg
Assets less cash, less bonds less non-interest-bearing debt including provisions
EBIT (Operating profit) x 100 / Average invested capital
Non-current interest-bearing liabilities plus debt to credit institutions less cashless bonds
EBITDA adjusted for the unrealized value adjustment related to biological assets.
Description
NOTES: Group
Financial Statements for the period January 1 - December 31
36
Ratios
EBITDA
EBITDA margin
Current ratio
Equity ratio
Return on equity
Sold volume live weight
kMT
Average invested capital
Return on average invested capital
Net interest-bearing debt
EBITDA fixed herd prices
Term
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 2.
Critical Accounting Estimates And Judgements
In preparing the Group’s Consolidated Financial Statements, Management makes various accounting
estimates, judgments and assumptions, which form the basis of presentation, recognition and
measurement of the Group’s assets and liabilities.
Material accounting estimates and judgments relate primarily to the Group’s biological assets in the fields,
which in a large part of the year are covered by snow and commercial pigs below 60 kg. in Russia.
When assessing the fair value of crops, the Group estimates that there was no material biological
transformation from the time of sowing until the field work starts 1 July, and therefore these biological
assets are measured at cost, which corresponds to the fair value.
Assessing the fair value of commercial herd below 60 kg it is based on multiplied a discretionary factor
(calculated as the Russian sales price for slaughter pigs in EUR last month / Lithuanian sales price for
slaughter pigs last month) on the values per category calculated for the Lithuanian market.
Estimation Uncertainty
Determining the carrying amount of some assets and liabilities requires judgments, estimates and
assumptions concerning future events.
The judgments, estimates and assumptions made are based on historical experience and other factors,
which Management assesses to be reliable, but which by their very nature are associated with uncertainty
and unpredictability. These assumptions may prove incomplete or incorrect, and unexpected events or
circumstances may arise.
The Group is also subject to risks and uncertainties, which may lead to actual results differing from these
estimates, both positively and negatively. Assumptions about the future and estimation uncertainty on the
balance sheet date is described in the notes where there is a significant risk of changes that could result in
material adjustments to the carrying amount of assets or liabilities within the next financial year.
Management regards biological assets to include the key accounting estimates and assumptions used in
the preparation of the Consolidated Financial Statements.
The Group's biological assets are measured at fair value less estimated costs to sell at each balance sheet
date.
The fair value of sales herd (slaughter pigs) is based on the existence of an active market for these,
including quotations and prices. The market price is based on the Group's realized sales prices per kilo live
weight at December on the local existing markets, and all finishers’ pigs above 60 kg. are valued at this
price per kilo based on their average weight.
2
2021
1.25
0.96
27
12
30%
559
472
37
EUR
Slaughterpig sales price liveweight – Russia end year
Slaughterpig sales price liveweight – Lithuania end year
Weaners (30 kg) sales price – Lithuania end year
Piglets (7 kg)
Premium/discount for Russian meat (relation between slaughter pig prices)
Sows unit price – Russia
Sows unit price – Lithuania
2020
1.00
0.82
29
15
22%
639
487
The sales price for weaners (and finishers below 60 kg) in Lithuania is based on official SPF quotes
(PRRS Negativ/spf.dk) plus volume fee. The valuation of piglets is based on official quotes.
The fair value of the breeding herd is measured on the basis of current market prices for animals of
the same age, breed and genetic heritage on the nearest market place.
The carrying amount at 31 December 2021 is EUR 26,982 thousand (2020: EUR 32,585 thousand).
Please refer to note 16.
The Group’s financial departments are responsible for performing the valuation of fair value
measurements including level 2 fair values of biological assets.
Same valuation model and techniques are used every month. The valuation model includes market
inputs from official prices and actual own sales prices in local markets. The valuation process and
results for recurring measurement are reviewed and approved by Group Management at least once
every quarter.
For crops sown in autumn, the Group generally estimate that there was no material biological
transformation at 1 January till 30 June compared with the time of sowing, and therefore, these
biological assets are measured at cost occurred in the process, which corresponds to the fair value.
If assumptions for biological transformation have changed, additional adjustments to the fair value
are made at the end of each reporting period till the end of harvesting.
NOTES: Group
Financial Statements for the period January 1 - December 31
3
EUR’000
Revenue
Value adjustment, biological assets
(non-cash item)
Production costs
Administrative costs
Other income
Other expense
Operating profit
Financial income
Financial expense
Profit before tax
Tax on profit for the year
Profit for the year
Depreciations included in production cost
EBITDA
EBITDA fixed herd prices
(excluding value adjustment)
Total assets
Liabilities
Net assets
GroupRussiaLithuania Other
Note 3.
Segments
38
2021
Definition of other is Idavang A/S, Rurik A/S, Rus Invest Aps and elimination
Russian revenue
Lithuanian revenue
Russian operation is full line; hence
revenue mainly consists of live slaughter pigs
soldto slaughterhouses. Volume produced
is relative linear between months.
All sales are made in Western part of
Russia and mainly around Skt. Petersburg.
EBITDA (at fixed herd prices) comes from
pig operation and field operation.
Field output is traditional used as feed;
calculation of EBITDA is based on prices
on output in harvest.
97%
Slaughter
pigs
62%
Pigs
3%
Other
pigs
38%
Fields
Russian EBITDA
Lithuanian operation is full line; hence
revenue mainly consists of live slaughter pigs
sold to slaughterhouses. Volume produced is
relative linear between months.
Minor part of revenue is slaughter pigs
combined with killing services
(included on the graph as slaughter pigs)
Sales are mainly made in Lithuania,
but sales also made done to
neighboring countries e.g., Poland and Latvia.
All EBITDA (at fixed herd prices) comes
from pig operation.
98%
Slaughter
pigs
10
0%
Pigs
2%
Other
pigs
Lithuanian EBITDA
53,864
159
-56,338
-1,808
2,818
0
-1,305
304
-1,259
-2,260
492
-1,768
2,905
1,600
1,441
61,857
-44,940
16,917
46,299
112
-42,010
-1,287
6,865
-551
9,428
916
-2,328
8,016
-107
7,909
4,227
13,655
13,543
83,006
-28,045
54,961
0
0
0
-626
0
0
-626
629
-3,731
-3,728
0
-3,728
0
-626
-626
1,303
-33,437
-32,134
100,163
271
-98,348
-3,721
9,683
-551
7,497
1,849
-7,318
2,028
385
2,413
7,132
14,629
14,358
146,166
-106,422
39,744
NOTES: Group
Financial Statements for the period January 1 - December 31
+
EUR’000
Revenue
Value adjustment, biological assets
(non-cash item)
Production costs
Administrative costs
Other income
Other expense
Operating profit
Financial income
Financial expense
Profit before tax
Tax on profit for the year
Profit for the year
Depreciations included in production cost
EBITDA
EBITDA fixed herd prices
(excluding value adjustment)
Total assets
Liabilities
Net assets
GroupRussiaLithuania Other
Note 3.
Segments
39
2020
60,551
-11,270
-53,098
-1,844
1,615
2
-4,044
195
-1,251
-5,100
765
-4,335
3,182
-862
10,408
61,218
-46,259
14,959
41,203
2,006
-35,516
-1,038
821
-67
7,409
1,071
-2,643
5,837
-83
5,754
4,514
11,923
9,917
80,884
-37,581
43,303
0
1
-2
-582
0
0
-583
-856
-7,741
-9,180
0
-9,180
2
-581
-582
4,267
-32,661
-28,394
101,754
-9,263
-88,616
-3,464
2,436
-65
2,782
410
-11,635
-8,443
682
-7,761
7,698
10,480
19,743
146,369
-116,501
29,868
Definition of other is Idavang A/S, Rurik A/S, Pskov Invest Aps, Idavang Russia A/S and Rus Invest Aps
Russian revenue
Lithuanian revenue
Russian operation is full line; hence
revenue mainly consists of live slaughter pigs
soldto slaughterhouses. Volume produced
is relative linear between months.
All sales are made in Western part of
Russia and mainly around Skt. Petersburg.
EBITDA (at fixed herd prices) comes from
pig operation and field operation.
Field output is traditional used as feed;
calculation of EBITDA is based on prices
on output in harvest.
97%
Slaughter
pigs
62%
Pigs
3%
Other
pigs
38%
Fields
Russian EBITDA
Lithuanian operation is full line; hence
revenue mainly consists of live slaughter pigs
sold to slaughterhouses. Volume produced is
relative linear between months.
Minor part of revenue is slaughter pigs
combined with killing services
(included on the graph as slaughter pigs)
Sales are mainly made in Lithuania,
but sales also made done to
neighboring countries e.g., Poland and Latvia.
All EBITDA (at fixed herd prices) comes
from pig operation.
98%
Slaughter
pigs
10
0%
Pigs
2%
Other
pigs
Lithuanian EBITDA
NOTES: Group
Financial Statements for the period January 1 - December 31
4
EUR’000
Fee regarding statutory audit
Assurance engagements
Tax assistance
Other assitance
Total
2021
130
7
0
0
137
5
EUR’000
Wages and salaries
Other social security costs
Share-based payments (note 6)
Other staff costs
Total
2021
12,159
1,129
0
542
13,830
Note 5.
Staff Costs
Note 4.
Fees Paid To Auditors Appointed At The Annual General Meeting
40
Staff costs are recognized as follows in the financial statements:
Production
Fixed assets
Administration
Of which:
Remuneration for executive board
Salaries to other executive officers
Remuneration for board of directors
Share-based payments (note 6),
executive board and officers
Total
Average number of full-time employees
2021
11,485
13
2,332
13,830
583
559
235
0
0
1,377
769
EUR’000
Shareholders in JAST Holding Aps (excluding fee
in Executive Board and remuneration for board of directors)
2020
112
7
0
0
119
2020
12,203
1,180
-134
581
13,830
2020
11,462
51
2,317
13,830
602
695
113
261
-134
1,537
799
Note 8.
Other Income
Grants in Russia on meat and grain
Grants in Lithuania (COVID related)
Sale of slurry
Delivery of pigs
Sale of fixed assets
Insurance payment, Ostrov
Miscellaneous
Total
2021
566
1,398
831
447
203
6,153
85
9,683
Note 6.
Share-based Payments
Idavang A/S has in 2013 set up an equity-based compensation plan under which options are granted to
one group executive. The options vests on 31 December 2022 or on an earlier change in the Company's
ownership structure (exit).
Management has estimated the expected vesting period.
If all the options vest, the executives become entitled to subscribe for shares in the Company worth a
total nominal amount of up to EUR 24,000. Each option granted provides the owner with a right, but not
an obligation, to purchase one share with a value of EUR 84.00 in the Company in 2015 indexed up to
EUR 269.56 in 2022.
The market value of the options is calculated using the Black-Scholes model. The calculation of present
market values is based on the following assumptions:
Volatility 22.3%, risk-free interest rate 1.0%, exercise price up to EUR 269.56, and no dividend before after
2022.
The volatility is calculated on the basis of a peer group of comparable enterprises. These peers were
analyzed over a period, following which the volatility for purposes of the valuation was calculated as the
median. As at 31 December 2021, the fair value amounts to EUR 0 (2020: EUR 0).
NOTES: Group
Financial Statements for the period January 1 - December 31
6
Note 7.
Amortization, Depreciation And Impairment
7
Buildings & land
Buildings & land IFRS16
Plant and machinery
Plant and machinery IFRS16
Other fixtures and fittings, tools and equipment
Plants under construction (impairment)
Intagible assets
Total
2021
3,737
296
2,797
50
227
0
25
7,132
41
EUR’000
EUR’000
8
2020
985
662
507
18
0
264
2,436
2020
3,750
229
3,190
165
132
200
32
7,698
Note 11.
Government Grants
The Group receives government grants in the form of grants for crop production and compensation
for high grain prices etc.
The Group also receives grants for the maintenance of property, plant and equipment in return for a
commitment to carry on pig production for a certain number of years.
The carrying amount of the grants partly relates to the EU SAPARD. The carrying amount is no
longer subject to non-fulfilment terms if the underlying assets are not used.
EUR’000
Carrying amount 1/1
Received in the year - investments
Received in the year - operations
Recognised in profit or loss in the year investments
Recognised in profit or loss in the year operations
Exchange adjustment
Carrying amount 31/12
2021
1,597
55
2,251
-155
-2,251
66
1,563
NOTES: Group
Financial Statements for the period January 1 - December 31
9
Note 9.
Financial Income
10
Note 10.
Financial Expenses
> Financial expenses from financial assets and liabilities at fair value through profit or loss:
Interest, derivative financial instruments
> Financial expenses originating from loans and receivables measured at amortized cost:
Exchange losses
Interest payables to credit institutions
Interest, bonds
Interest, relating to IFRS 16
Other
Total financial expenses
2021
0
0
-1,481
-5,659
-70
-108
-7,318
11
42
> Financial income from financial assets and liabilities at fair value through profit or loss:
Interest, derivative financial instruments
Exchange gains
Interest income, banks
Other
Total financial income
2021
142
522
1,037
148
1,849
EUR’000
EUR’000
2020
0
-3,574
-800
-7,060
-69
-132
-11,635
2020
15
0
202
193
410
2020
2,003
60
667
-183
-667
-283
1,597
NOTES: Group
Financial Statements for the period January 1 - December 31
12
Note 12.
Income Taxes
EUR’000
Income tax expense recognized in profit or loss:
Estimated tax on the taxable income for the year
Adjustment regarding prior year
Change in deferred tax
Income taxes
Reconciliation of tax rate:
Danish tax rate
Difference, tax rate in foreign subsidiaries
Tax loss carry forward not capitalized
Effective tax rate
Income taxes:
Carrying amount 1/1
Payment
Tax on taxable income for the year
Exchange rate adjustment
Carrying amount 31/12
2021
-107
0
492
385
22%
-82%
41%
-19%
559
-1,284
107
0
-618
13
Note 13.
Intangible Assets
EUR’000
Cost at 1 January 2020
Additions
Disposals
Exchange adjustments
Cost at 31 December 2020
Amortization at 1 January 2020
Amortization
Disposals
Impairment
Exchange adjustments
Impairment losses and amortization at 31 December 2020
Carrying amount at 31 December 2020
Cost at 1 January 2021
Additions
Disposals
Exchange adjustments
Cost at 31 December 2021
Amortization at 1 January 2021
Amortization
Disposals
Impairments
Exchange adjustments
Impairment losses and amortization at 31 December 2021
Carrying amount at 31 December 2021
Total
2,640
15
0
-113
2,542
1,335
32
0
0
-52
1,315
1,227
2,542
6
0
29
2,577
1,315
25
0
0
15
1,355
1,222
43
Right
673
15
0
-113
575
387
32
0
0
-52
367
208
575
6
0
29
610
367
25
0
0
15
407
203
Goodwill
1,967
0
0
0
1,967
948
0
0
0
0
948
1,019
1,967
0
0
0
1,967
948
0
0
0
0
948
1,019
2020
-868
0
1,550
682
22%
-6%
-24%
-8%
0
-309
868
0
559
Note 14.
Impairment Test, Intangible Assets
Intangible assets with indefinite lives (goodwill) are tested for impairment on an annual basis.
Goodwill
Goodwill relates to Lithuania: Šalnaičių (1999) and Skabeikių (2006).
Goodwill is tested for the smallest group of cash-generating units in respect of which goodwill is
monitored by Management and which is not larger than the group's operating segments.
As sales and production are managed centrally in each individual country, goodwill is monitored at
country level. Goodwill has been allocated to Lithuania, the carrying amount of goodwill at 31 December
totaled:
The recoverable amount is determined on the basis of a calculation of the value in use using cash flow
calculations based on budgets and forecasts for 2022-2024 (2020: 2021-2023), as approved by
management. The calculation of the value in use is based on the following estimates:
Lithuania
Discount factor before tax
Growth rate in terminal period
2021
8.5%
2%
Lithuania
EUR’000
2021
1,019
NOTES: Group
Financial Statements for the period January 1 - December 31
14
44
The key assumptions used in cash flow projections are as follows:
Selling price per kilo pork compared with cost price per kilo grain
For Lithuania, an expectation as to average sales prices and grain prices has been used, based on
2022 budget. Forward estimates are based on historical averages and EU forecasts.
Investments
Lithuania's investments are expected to be EUR 2.1m in 2022, but in from 2023 and in terminal
value investment is included equal to depreciations to be conservative. It is therefore
Management's judgement that investments will be lower than depreciation charges going forward.
Working capital
In Management's opinion, working capital reached a normal level in 2022 in the cash generating
units. Management does not expect significant changes to the level of working capital in future.
As the estimated value in use is considerably higher than the carrying amount, the impairment test
shows no indication of impairment of goodwill.
2020
8.5%
2%
2020
1,019
EUR’000
Cost at 1 January 2021
Additions
Disposals
Transfers
Exchange adjustments
Cost at 31 December 2021
Impairment losses and depreciations at 1 January 2021
Depreciations and impairments
Reversed depreciation on disposals
Transfers
Exchange adjustments
Impairment losses and depreciations at 31 December 2021
Carrying amount at 31 December 2021
Land which is not depreciated
Of which is financial leased
Note 15.
Property,
Plant And
Equipment
Total
Cost amount of assets
written off but still in use
is EUR 32,257 thousand.
The amount of borrowing
costs capitalised during
the year ended
31 December 2021 was
EUR 63k (2020: EUR 329k).
See note 25 for financial
liabilities relating to
right-to-use assets.
Land and
buildings
NOTES: Group
Financial Statements for the period January 1 - December 31
15
Plant and
machinery
Fixtures,
fittings, tools
Plants under
construction
45
2021
IFRS16
Land and
buildings
IFRS16
Fixtures,
fittings, tools
1,945
2,220
0
-1,144
173
3,194
0
0
0
0
0
0
3,194
147,919
3,942
-712
0
5,551
156,700
68,467
7,107
-620
0
2,343
77,297
79,403
101,746
225
0
996
3,626
106,593
37,562
3,737
0
0
1,110
42,409
64,184
3,106
2,427
18
-59
0
21
2,407
336
296
0
0
8
640
1,767
38,094
1,182
-536
146
1,700
40,586
27,737
2,797
-534
1,192
31,192
9,394
2,859
447
50
-11
0
0
486
274
50
-6
0
0
318
168
3,260
247
-106
2
31
3,434
2,558
227
-80
33
2,738
696
EUR’000
Cost at 1 January 2020
Additions
Disposals
Transfers
Exchange adjustments
Cost at 31 December 2020
Impairment losses and depreciations at 1 January 2020
Depreciations and impairments
Reversed depreciation on disposals
Transfers
Exchange adjustments
Impairment losses and depreciations at 31 December 2020
Carrying amount at 31 December 2020
Land which is not depreciated
Of which is financial leased
Note 15.
Property,
Plant And
Equipment
111,113
316
-12
3,896
-13,567
101,746
37,423
3,750
-14
-3,597
37,562
64,184
2,945
Cost amount of assets
written off but still in use
is EUR thousand. 22,489
The amount of borrowing
costs capitalised during
the year ended
31 December 20 was 20
EUR (201 : EUR k).329k 9 335
See note 2 for financial5
liabilities relating to
right-to-use assets.
2020
3,357
70
-65
18
-120
3,260
2,600
132
-46
-128
2,558
702
42,853
936
-68
617
-6,244
38,094
28,509
3,190
-67
-3,895
27,737
10,357
3,713
391
56
447
109
165
274
173
6,412
2,067
0
-5,633
-901
1,945
712
200
0
-912
0
0
1,945
166,218
4,014
-330
-1,063
-20,920
147,919
69,473
7,666
-127
-912
-7,633
68,467
79,452
2,092
608
-185
0
-88
2,427
120
229
0
-13
336
2,091
NOTES: Group
Financial Statements for the period January 1 - December 31
46
+
Total
Land and
buildings
Plant and
machinery
Fixtures,
fittings, tools
Plants under
construction
IFRS16
Land and
buildings
IFRS16
Fixtures,
fittings, tools
EUR’000
Carrying amount at 1 January 2020
Gains/losses from fair value changes
Additions
Disposals
Transfers
Exchange adjustments
Carrying amount at 31 December 2020
Biological assets provided as security for loans
Carrying amount at 1 January 2021
Gains/losses from fair value changes
Additions
Disposals
Transfers
Exchange adjustments
Carrying amount at 31 December 2021
Biological assets provided as security for loans
Note 16.
Biological
Assets
Value adjustment
of biological assets.
NOTES: Group
Financial Statements for the period January 1 - December 31
16
47
2020
2021
Non current
/ Breeding Herd
1,589
0
3,512
-3,640
0
-362
1,099
0
1,099
0
3,053
-3,228
0
80
1,004
0
27,662
-10,403
81,052
-76,203
-2,643
-2,349
17,116
0
17,116
1,670
80,815
-83,706
-1,552
545
14,888
0
29,251
-10,403
84,564
-79,843
-2,643
-2,711
18,215
0
18,215
1,670
83,868
-86,934
-1,552
625
15,892
0
15,772
1,140
3,412
-5,644
2,643
-1,854
15,469
0
15,469
-1,399
3,806
-7,739
1,552
405
12,094
0
Total Current
Assets
Commercial
Herd
Crops
NOTES: Group
Financial Statements for the period January 1 - December 31
Idavang uses the following hierarchy for determining and disclosing the fair value:
Level 1:
Quoted (unadjusted) prices in active markets for identical assets
Level 2:
Significant observable inputs
Level 3:
Significant unobservable inputs
Commercial and breeding herd are measured at fair value level 2 due to significant links to observable
quotes on pigs and recent sales prices.
2021
Breeding herd
Commercial
herd
Crops
2020
An area of 8,117 ha
was harvested mainly wheat,
and by the end of 2021
7,385 ha were seeded
Stock decreased
and at year-end stock
was 330,293 pigs.
During the year
782,904 slaughter pigs,
0 weaners and
13,994 sows
were sold
Stock decreased and
the year ended with
a total of 25,981 sows,
gilts and boars
Crops are based on cost of seed, fertilizer, chemical, variable cost and salary to field production. Revaluation of
consumable biological assets was made based on the prices of the most recent sales prices and official quotes.
Note 17.
Loans, Receivables And Liabilities
Measured At Amortised Cost
EUR’000
> Loans and receivables at amortised cost:
Other receivables (normal)
Other receivables (hedging)
Cash
Total cash and receivables
measured at amortised cost
> Financial liabilities measured at amortised cost:
Payables to credit institutions
Other payables (hedging)
Total financial liabilities
measured at amortised cost
17
Idavang uses the following hierarchy for determining and disclosing the fair value:
Level 1:
Quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2:
Other techniques for which all input that have a significant effect on the recorded fair value are
observable, either directly or indirectly. All financial assets and liabilities are classified as level 2 except
bonds and matif contracts (hedging), which are level 1.
48
Carrying
amount
Fair
value
2021
Payables to IFRS16
Carrying
amount
Fair
value
3,369
429
13,757
17,555
99,282
2,267
6,885
2,832
9
111,275
2020
An area of 7,604 ha
was harvested mainly wheat,
and by the end of 2020
6,895 ha were seeded
Stock increased
and at year-end stock
was 396,971 pigs.
During the year
778,848 slaughter pigs,
9,116 weaners and
15,182 sows
were sold
Stock increased and
the year ended with
a total of 30,690 sows,
gilts and boars
Other payables (normal)
3,369
429
13,757
17,555
99,282
2,267
6,885
2,832
9
111,275
4,404
494
13,545
18,443
90,056
1,945
6,855
3,132
79
102,067
4,404
494
13,545
18,443
90,056
1,945
6,855
3,132
79
102,067
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 18.
Deferred Tax
18
EUR’000
Property, plant and equipment
Biological assets
Other non-current assets
Current assets and liabilities
Tax loss carry forward
Deferred tax income/(expense)
Deferred tax asset/(liability)
Deferred tax asset/liability is recognised in the balance sheet as follows:
Deferred tax asset
Deferred tax liability
Deferred tax, net
Reconciliation of deferred tax, net:
At 1/1
The year’s tax income/expense recognized in profit or loss
Exchange adjustments
At 31/12
1/1 2020
-802
-2,276
1
8
757
-2,312
757
3,069
-2,312
2021
33
43
0
0
414
490
Tax losses carry forward
not capitalized are
EUR 4.491 thousand (2019
EUR 3.542 thousand)
due to uncertainties of
utilizing it in the future.
Deferred tax assets
(tax loss carry forward)
are recognised when
it is assumed highly
probably that the assets
will be utilised.
Effect of income statement
is the difference of opening
and closing deferred tax.
Consolidated balance sheet Income statement
49
2020
-775
-753
1
8
760
-759
760
1,519
-759
-2,312
1,550
3
-759
2020
27
1,523
0
0
0
1,550
2021
-742
-710
1
8
1,175
-268
761
1,029
-268
-759
490
1
-268
EUR’000
Raw materials and consumables
Cost of sales recognised in profit or loss (feed)
2021
15,007
64,350
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 20.
Trade Receivables
20
Trade receivables at 31 December 2021 include receivables at a nominal value of EUR 4,403 thousand
(2020: EUR 3,369 thousand), the carrying amount of which has been reduced by EUR 0 thousand (2020:
EUR 0 thousand) regarding write downs. Trade receivables overdue by more than 30 days are EUR 98
thousand (2020: EUR 70 thousand).
The reason why trade receivables are low compared to revenue is that all sales in Russia are prepaid by
the customer and sales in the EU (mainly Lithuania) have been covered th ough r credit insurance
agreements since 2006.
As all sales in Russia are prepaid and all other sales have been covered by credit insurance the write-down
according to the expected credit loss model is insignificant. Therefore there have not been recognized any
write-downs on the receivables.
21
Note 21.
Cash
EUR’000
Cash
Escrow account
Total
2021
13,545
0
13,545
23
Note 23.
Capital Structure
Capital management
The Group aims to create the room required to secure its strategic development activities and be
able to provide a competitive return for its shareholders. The Board of Directors generally intends to
distribute excess cash to the shareholders by way of dividends. However, dividends will always take
into account the Group’s growth plans and funding requirements.
Share and authorisations
Idavang A/S has only one share class with equal rights. Shares have a denomination of EUR 1 per
share. The shares are non-negotiable instruments.
Capital Structure
The share capital has been paid in full and 100% owned by JAST Holding Aps. All resolutions at the
general meetings of shareholders must be adopted by a simple majority of the votes of the shares
present at the meeting, unless one of the listed voting right restrictions or the Danish Companies Act
provides otherwise. In the event of a tie, the proposal will lapse.
50
19
Note 19.
Inventories
2020
12,195
62,004
2020
13,757
0
13,757
22
Note 22.
Derivatives
EUR’000
Derivatives designated for hedge reserve primo
Current year hedges accounted as income (expenses) in financial activities
Decrease (increase) of feed cost related to current year hedge
Decrease (increase) of feed cost related to previous year hedge
Gain (loss) on hedging transactions
Derivatives designated for hedge reserve ultimo
Non realized profit/loss included in
Other receivables
Other payables
2020
13
(15)
(84)
(13)
646
548
-
9
2019
365
-
90
(365)
(77)
13
230
-
2021
548
(142)
(1,107)
(548)
5,522
4,273
-
79
Management hedge future grain usage using both physical and matif contracts based on relevant
criteria's e.g. supply certainty. In 2021 the main matif contract used was Dec2021 with 80.900T, which
gave a profit of 5,3 mEUR or 66 EUR/T.
Note 24.
Management
24
NOTES: Group
Financial Statements for the period January 1 - December 31
51
Niels Hermansen
CHAIRMAN
1953
Male
Danish
2013
Yes
Member
0
0
Name
Role
Born
Gender
Nationality
First elected
Employed since
Independent
Audit Committee
Securities 31.12.2020
1)
JAST Holding
Chairman
Deputy Chairman
Member
Jytte Rosenmaj
DEPUTY CHAIRMAN
1964
Female
Danish
1999
No
Chairman
0
0
Ole Bjerremand Hansen
BOARD MEMBER
1960
Male
Danish
1999
No
Member
0
2)
125,000
Carsten Lund Thomsen
BOARD MEMBER
1967
Male
Danish
1999
No
Member
0
83,332
Claus Baltersen
CEO & BOARD MEMBER
1971
Male
Danish
2017
1998
No
0
41,668
Michael Henriksen
CFO
1974
Male
Danish
2009
0
0
Directorships
Board Of Directors Executive Board
1) JAST Holding A/S is Idavang A/S's sole shareholder with 100%, and the company has issued 200,000 shares in total.
Jast Holding Aps,
Meta Mariehjemmet,
DCH International A/S,
Premium Pork International A/S
Cerca A/S
Danish Pig Genetics Aps
Komplementarselskabet Danish Pig Genetics Aps
Stjerneskansen Holding Aps,
Vissing Holding A/S,
Vissing Fonden
Jast Holding Aps,
Tofthøj Agro Aps
Fredericia Furniture A/S,
Vikan A/S
Tofthøj Agro Aps,
Danish Farmers Abroad,
Agreena Aps
AgroSkandia Holding A/S
Slovakian Farm Invest A/S,
Danish Pig
Consulting Group A/S,
Akset A/S,
UV-Agri Aps
Jast Holding Aps,
Ejendomsselskabet Niels
Bugges Kro og Hotel A/S,
Naturbiogas, Sode A/S
Jast Holding Aps
2) Include all shares controlled
EUR’000
Revenue
Production cost
Administration expenses
Net exposure
Payables to credit institutions
Net exposure
The following assumptions are made in the overview above: revenue in Russia is RUB-denominated. Grain and soy in
Russia are linked to USD also when formally invoiced in RUB. EUR includes DKK as it is tied up to the EUR.
2020
RUB
41,203
-16,661
-1,038
23,504
20,548
20,548
USD
0
-18,855
0
-18,855
0
0
EUR
60,551
-53,100
-2,425
5,026
81,001
81,001
Interest rate risk
The Group's funding from bonds has variable interest rates and the remaining have fixed rates. It is the
Group's policy not to enter into interest rate swaps. A 1% change in Euribor 3 months would, all other
things being equal, affect P/L by EUR 0.8m (2019: EUR 0.9m), but as it has a floor of 0% is the increase
from negative 0.4% to 0% without effect.
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 25.
Financial Risks
25
Sales price risk
The Group is highly exposed to global and EU developments in the price of pork.
Lithuanian sales are fully
linked to EU and German prices. A 1% change would affect profit by EUR 0.6m (2019: EUR 0.6m, all other
things being equal. Russian sales due to closed borders towards the EU more linked to the global market.
A 1% change would affect profit by EUR 0.4m (2019: EUR 0.5m, all other things being equal.
Raw material price risk
The Group is highly exposed to global and EU developments in the price of grain and protein (soy and
sunflower). A change of 10% on grain prices is estimated to affect profit by +/- EUR 3.5m in 2021 (2020
EUR 2.8m), all other things being equal. Furthermore, a similar 10% change in protein prices is estimated
to affect profit by +/- EUR 1.1m in 2021 (2020: EUR 1.5m), all other things being equal.
Credit risk
The Group positively wants to minimise its credit risks, which mainly relate to sales transactions and
bonds/cash holdings. Sales transactions should therefore for all Russian customers be carried through up-
front in cash, and for EU clients, credit insurance need to be taken out in advance.
Liquidity risk
The Idavang Group has its main financing in a 5 year bond with bullet payment on expiry in December
2025, hence limited debt service. The Group monitors its risk to a shortage of funds, high-level liquidity
planning tool and detailed budgets. The Group's objective is to maintain a balance between continuity of
funding and flexibility through the use of bank overdrafts, bank loans, cash and bonds.
The Group have targets for reduction of net interest bearing debt during the next 4 years, so that
refinancing the bond will be unproblematic. The Bond loan agreements is not subject to financial
covenants.
Foreign exchange risk
The Group's indebtedness is roughly split evenly between Lithuanian and Russia currencies to make
natural hedge against fluctuations in revenue streams. Consolidated profit and loss and financial debt
divided by foreign exchange risk (without change in herd and depreciation.
52
EUR’000
Revenue
Production cost
Administration expenses
Net exposure
Payables to credit institutions
Net exposure
2021
RUB
46,298
-17,700
-1,287
27,311
18,154
18,154
USD
0
-18,156
0
-18,156
0
0
EUR
53,864
-56,338
-
2,434
-4,908
73,847
73,847
12/31
101,754
-88,616
-3,464
9,675
101,549
101,549
12/31
100,163
-92,195
-3,721
4,247
92,001
92,001
Within 1 year
1-5 years
More than 5 years
Total
EUR’000
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
The Group's policy is to minimize current payables to credit institutions. The Group has assessed
the concentration of risk with respect to refinancing of its debt, finding it to be low and spread
among a number of banks.
Access to sources of funding is sufficiently available and debt maturing within 12 months is
expected to a high degree to be rolled over with existing lenders.
53
EUR
EUR
RUB
Total
2021
Within
1 year
1-5
years
More than
5 years
Payables to credit institutions are recognised in the balance sheet as follows:
Payables to credit institutions and bonds including interest have the following maturity terms:
2021
23,763
89,707
686
114,156
Currency Interest
7.5%
0.7-3.5%
3.5%-4.25%
Payables to credit institutions, IFRS 16
Issued bonds
Payables to credit institutions
Total
EUR’000 Cash flow
FX/Other
1/1 12/31
2,267
73,824
25,458
101,549
2021
70,356
3,491
18,154
92,001
Quoted bond is included with EUR 5,241k with 1 year and 86,204k 1-5 year
Issued bonds include prepaid cost of EUR 944k 31.12.2021, which is written off over the tenor of the loan.
-389
-3,700
-7,142
-11,230
67
232
1,383
1,682
1,945
70,356
19,700
92,001
0
1,201
16,643
17,844
70,356
1,795
1,511
73,662
0
495
0
495
2020
Payables to credit institutions, IFRS 16
Issued bonds
Payables to credit institutions
Total
EUR’000 Cash flow
FX/Other
1/1 12/31
2,233
83,153
35,043
120,429
2020
Issued bonds include prepaid cost of EUR 1.176k 31.12.2020, which is written off over the tenor of the loan.
For 2020 the Group has paid EUR 370k regarding lease contracts of which EUR 69k is related to interest
and EUR 301k is related to repayment of lease debt.
114
-9,976
-2,856
-12,718
-80
647
-6,728
-6,162
2,267
73,824
25,458
101,549
EUR
EUR
RUB
Total
2020
Within
1 year
1-5
years
More than
5 years
Currency Interest
7.5%
2.5-4.0%
3.5%-4.0%
73,824
7,177
20,548
101,549
0
942
20,326
21,268
73,824
5,594
223
79,641
0
641
0
641
27,465
101,584
777
129,827
Loans for feed elidable for subsidy loans has maximum duration for 365 days, hence these loans are re-financed
annually with new purchases of feed.
Note 25.
Leases
+
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
54
EUR’000
Within one year
From one to five years
After five years
Total lease obligations
Interest
Present value of lease obligation
- Current
- Non-Current
Present value of lease obligation
Future lease payments
are as follows:
2021
As at 31 December
Lease obligations are
accounted for as:
431
1,172
845
2,449
-504
1,945
383
1,562
1,945
EUR’000
As at 1 January
Additions
Accretion of interest
Payments
Disposals
Exchange adjustments
As at 31 December
Set out below are the carrying amounts of lease
liabilities and the movements during the period:
The following are the amounts
recognized in profit or loss:
Depreciation expense of right-of use assets
Interest expense on lease liabiilities
Expenses relating to short-term leases (production)
Expenses relating to short-term leases (Admininstation)
Total amount recognized in profit or loss
2,267
93
-25
-389
-16
14
1,945
360
70
-207
-214
9
999
397
27
-515
-54
-
854
161
27
-1
-25
162
3,266
490
2
-904
-70
14
2,799
521
97
-208
-239
171
458
424
-
882
-28
854
441
413
854
889
1,596
845
3,331
-532
2,799
824
1,975
2,799
2021
As at 31 December
IFRS 16 Regular Total
IFRS 16 Regular Total
IFRS 16 Regular Total
IFRS 16 Regular Total
As at 31 December 2021 and 2020 all regular lease liabilities are denominated in euro.
Set out below are the carrying amounts of lease liabilities and the movements during the period.
The company has several lease contracts that include extension and termination options.
These options are negotiated bymanagement to provide flexibility in managing the leased-asset portfolio
and align the Company's business needs. As at 31 December 2021 where no contracts which extensions options
were expected not be exercised nor any contracts which termination options were expected to be exercised.
Note 25.
Leases
+
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
55
EUR’000
Within one year
From one to five years
After five years
Total lease obligations
Interest
Present value of lease obligation
- Current
- Non-Current
Present value of lease obligation
Future lease payments
are as follows:
2020
As at 31 December
Lease obligations are
accounted for as:
438
1,374
862
2,674
-407
2,267
390
1,877
2,267
EUR’000
As at 1 January
Additions
Accretion of interest
Payments
Disposals
Exchange adjustments
As at 31 December
Set out below are the carrying amounts of lease
liabilities and the movements during the period:
The following are the amounts
recognized in profit or loss:
Depreciation expense of right-of use assets
Interest expense on lease liabiilities
Expenses relating to short-term leases (production)
Expenses relating to short-term leases (Admininstation)
Total amount recognized in profit or loss
2,233
618
53
-388
-169
-80
2,267
394
69
-218
-219
27
1,540
95
32
-668
-
-
999
180
32
-45
-19
148
3,773
713
85
-1,056
-169
-80
3,266
574
101
-263
-238
175
443
595
-
1,038
-39
999
419
580
999
881
1,969
862
3,712
-446
3,266
809
2,457
3,266
2020
As at 31 December
IFRS 16 Regular Total
IFRS 16 Regular Total
IFRS 16 Regular Total
IFRS 16 Regular Total
As at 31 December 2021 and 2020 all regular lease liabilities are denominated in euro.
Set out below are the carrying amounts of lease liabilities and the movements during the period.
The company has several lease contracts that include extension and termination options.
These options are negotiated bymanagement to provide flexibility in managing the leased-asset portfolio
and align the Company's business needs. As at 31 December 2021 where no contracts which extensions options
were expected not be exercised nor any contracts which termination options were expected to be exercised.
Note 26.
Related Party
Transactions
26
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
56
EUR’000
Shareholders in JAST Holding Aps
(excluding Executive Board)
IFC
Total
Shareholders in JAST Holding Aps
(excluding Remuneration for Board of Directors and Executive Board)
Total
2020
2021
0
17,905
17,905
0
0
297
0
297
16
16
0
0
0
0
0
Dividend Management Fee
and Salary
Repurchase
of Shares
Note 27.
Bond
27
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
57
Issuer
Security package:
Original Guarantors:
Status of the bond:
Currency:
Initial debt amount:
Other facilities:
Tenor
Pricing:
Rating:
Call options:
Incurrence test
Restricted payments
Information covenants:
Change of control:
Listing of bonds:
Trustee:
Governing law:
Idavang A/S
(i) share pledges over Guarantors and Russian operating companies (ii) mortgages over substantially Lithuanian real estate,
(iii) Danish registered negative pledges, (iv) assignment over intra-group loan (RUB 0.9bn*) from the Issuer to Idavang Agro LLC
Rus Invest Aps, Rurik A/S, Pskov Invest Aps, Idavang Russia A/S and UAB Idavang
Senior secured
EUR
EUR 75 millions
Super senior RCF up to 9 mEUR, governed under an inter-creditor agreement with bondholders.
Basket of leasing, factoring and other of 6,5 mEUR and permitted indebteness of RUB 1,750m in Russia (apx. EUR 19m)
5 years
3m EURIBOR + 725 bps p.a., quarterly interest payments, EURIBOR floor of 0%
Unrated
Non call during the first 30 months, then 50/33/25/10/0 after 30/36/42/48/57
"NIBD/EBITDA LTM fixed herd price (net leverage) of 3.00 and No Event of Default is continuing or occurring upon the incurrence or payment"
No financial support (by way of loans, capital or similar) by the Issuer to Russian subsidiaries, except if funded by the super senior facility
or if the incurrence test is met (excluding the IFC Deposit from Net Interest Bearing Debt)
Annual audited statements, quarterly unaudited reports
Investor put at 101%
Nasdaq Copenhagen
Nordic Trustee
Danish law
*Assignment over intra-group loans reduced from RUB 0.9b to RUB 0.5b 31/12/2021 and to RUB 0.2b per 25/02/2022
Note 28.
Contingent Liabilities, Securities And Other Financial Obligations
Contingent liabilities
Securities
The following assets have been provided as security for the group's bankers:
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
EUR’000
Land, buildings and machinery
Herd
Inventories
Cash and cash equivalents
Total
2021
39,747
0
0
0
39,747
28
Other obligations
Purchase contracts of grain, soy and sunflower in Lithuania and Russia of EUR 28.1m (2020: EUR 19.3m).
The Idavang Group is party of a credit facility agreement with Jyske Bank and Nordic Trustee. See details
in Parent Company Note 16.
Note 29.
Post Balance Sheet Events
Tensions between Russia and Ukraine increased during February, as first Russia mobilized its military on
the borders, and afterward, on the 24th February, Russia entered into Ukraine.
29
58
2020
40,630
0
0
0
40,630
EU, USA and other countries applied sanctions on Russia twice during this period. Idavang is
currently not aware of any sanctions that will directly negatively impact Russia's operations.
Nevertheless, Idavang might be negatively affected with either sanction unknown to Idavang
already approved or future sanctions.
Idavang did withdraw 4,1 mEUR from Russia to Denmark at the beginning of February of the
intercompany loan (after approval from Nordic Trustee and Jyske Bank). The withdrawn
amount was for February/May interest on bonds and excess cash repayment on bonds after
annual release. After the transfer, the management considers the short-term liquidity reserve
in both Russia and Lithuania/Denmark strong. Still, it has further reserves in working capital
e.g., implementing factoring in Lithuania (3 mEUR allowed in bond terms).
Focus has also been on increasing operational stability, increasing inventories of everything
from spare parts to feed components. Idavang Lithuania has hedged around half of the grain
consumption for next harvest season (September 2022 - August 2023), limiting the impact of
volatile world markets.
Parent Company
Financial Statements
Income statement
Statement of other comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the financial statements
60
60
61
62
63
64
Parent Company
Statement Of
Other Comprehensive Income
Profit for the year
Other comprehensive income:
Exchange adjustment, foreign subsidiaries
Other comprehensive income not be reclassified
to profit or loss in subsequent periods
Other comprehensive income
Other comprehensive income not be reclassified
to profit or loss in subsequent periods
Total comprehensive income
2021EUR’000
-2,166
2
0
2
744
-1,420
NOTE
60
Income Statement
Revenue
Administration costs
Operating profit
Financial income
Financial expenses
Profit before tax
Tax on profit for the year
Profit for the year
Attributable to:
Transferred to equity
EUR’000 2021
0
-626
-626
4,119
-5,659
-2,166
0
-2,166
-2,166
Financial Statements for the period January 1 - December 31
6
7
8
53 4
2020 2020
0
-583
-583
33,630
-12,624
20,423
14
20,437
20,437
20,437
59
0
59
0
20,496
Parent Company
NOTE
61
M E N U
Non-current assets
Property, plant and equipment
Other non-current assets
Shares in subsidiaries
Deferred tax
Other receivables
Total non-current assets
Current assets
Receivables
Receivables from group companies
Other receivables
Total receivables
Cash
Total current assets
EUR’000 2021
Financial Statements for the period January 1 - December 31
10
Total assets
Balance Sheet
Assets
Equity & Liabilities
12
NOTE
Equity
Share capital
Exchange adjustments
Retained earnings
Total equity
Non-current liabilities
Credit institutions and issued bonds
Provisions
Total non-current liabilities
Current liabilities
Payable to group companies
Other payables
Total current liabilities
Total liabilities
EUR’000 2021
Total equity & liabilities
11
75,024 75,024
12
13
12
9
14
0
21,850
280
441
22,571
20,735
0
20,735
31,718
52,453
800
22
2,991
3,813
70,356
0
70,356
0
855
855
71,211
2020
87,605
0
28,623
194
441
29,258
55,282
54
55,336
3,011
58,347
2020
87,605
800
20
4,413
5,233
73,823
0
73,823
7,440
1,109
8,549
82,372
62
M E N U
Statement Of Changes In Equity
Total
EUR’000
Share
Capital
Exchange
Adjustment
Retained
Earnings
Financial Statements for the period January 1 - December 31
2,642
20,437
59
20,496
-17,905
5,233
-2,166
746
-1,420
3,813
Parent Company
1,681
20,437
20,437
-17,705
4,413
-2,166
744
-1,422
2,991
-39
59
59
20
2
2
22
1,000
0
-200
800
0
800
Equity at 31 December 2019
Profit/loss for the year
Other comprehensive income
Total comprehensive income
Buyback of own shares
Equity at 31 December 2020
Profit/loss for the year
Other comprehensive income
Total comprehensive income
Equity at 31 December 2021
63
M E N U
Cash Flow Statement
Financial Statements for the period January 1 - December 31
Parent Company
NOTE EUR’000 2021
Operating profit/loss
Depreciation and amortisation
Changes in receivables
Changes in non-current receivables
Changes in other current liabilities
Share-based payments
Total
Interest received
Dividend received
Interest paid
Corporation tax paid
Cash flows from operating activities
NOTE EUR’000 2021
5
4
10
13
-626
0
35,254
54
-254
0
34,428
3,405
0
-5,395
0
32,438
0
0
0
0
-3,731
0
-3,731
28,707
3,011
0
31,718
Acquisition of property, plant and equipment
Disposal of property, plant and equipment
Cash flows from investing activities
Proceeds from borrowings
Repayments of borrowings
Excess cash after repurchase of IFC shares*
Cash flows from financing activities
Net cash flows from operating,
investing and financing activities
Cash and cash equivalents at 1 January
Exchange adjustments
Cash and cash equivalents at 31 December
2020
-583
2
-7,442
0
-4,437
-134
-12,594
3,420
29,694
-8,395
0
12,125
2020
0
11
11
73,794
-89,743
6,722
-9,227
2,909
102
0
3,011
* Idavang established in 2017 an escrow account with 25 mEUR dedicated for repurchasing 20% Idavang A/S shares,
the repurchase was made in 2020 and surplus of escrow account less purchase price was returned to general purposes.
64
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 1.
Significant Accounting Policies
The financial statements of Idavang A/S are prepared in accordance with International Financial Reporting
Standards (’IFRS’) as adopted by the EU and additional Danish disclosure requirements for financial
statements.
The financial statements are presented in EUR. The company’s functional currency is DKK.
The accounting policies applied by Idavang A/S are consistent with those applied by the group, cf. note 1
to the consolidated financial statements and the below.
The accounting policies remain unchanged from previous year.
Revenue
Revenue consists of management fee allocated to subsidiaries in the group and is recognized on a
straight-line bases as the services are provided.
Revenue is measured at the fair value of the agreed consideration excl. VAT and taxes charged on behalf
of third parties.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. If the cost exceeds the recoverable amount, the carrying
amount is reduced to such lower value.
Dividends
Dividends from investments in subsidiaries are recognised in the parent company’s income statement in
the reporting year in which the dividends are declared.
1
Note 2.
Critical Accounting Estimates And Judgements
In preparing the Parent Company Financial Statements, Management makes limited accounting
estimates, judgments and assumptions, which form the basis of presentation, recognition and
measurement of the Parent Company’s assets and liabilities.
Investments in subsidiaries constitute a significant part of Idavang A/S total assets. Impairment tests
of subsidiaries are carried out where events or changed conditions indicate that the carrying amount
may not be recoverable.
2
EUR’000
Fee regarding statutory audit
Assurance engagements
Tax assistance
Other assistance
Total
Note 3.
Fees Paid To
Auditors Appointed
At The Annual
General Meeting
2021
54
7
0
0
61
Audit fees are recognised
under administration expenses.
3
2020
34
7
0
0
41
EUR’000
Other fixtures and fittings, tools and equipment
Note 5.
Amortisation, Depreciation And Impairment Losses
2021
0
65
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Wages and salaries
Other social security costs
Share-based payments (Group Note 6)
Total
Production
Fixed assets
Administration
Of which:
Remuneration for executive board
Salaries to other executive officers
Remuneration for board of directors
Share-based payments (Group Note 6), board & officers
Total
Average number of full-time employees
Note 4.
Staff Costs
2021
415
0
0
415
0
0
415
180
0
235
0
415
2
Staff costs are recognised
under administration
expenses.
5
4
Amortisation, depreciation
and impairment losses
are recognised under
administration expenses.
EUR’000
Exchange gains
Interest income from credit institutions
Interest income, related parties
Dividend
Other
Total financial income
Note 6.
Financial Income
2021
714
820
2,585
0
0
4,119
Financial income originating
from loans and receivables
measured at amortised cost.
EUR’000
Exchange losses
Interest payables to credit institutions
Interest payables to related parties
Interest, relating to IFRS 16
Other
Total financial expenses
Note 7.
Financial Expenses
2021
0
5,659
0
0
0
5,659
Financial expenses originating
from financial liabilities
measured at amortised cost.
6
7
2020
2
2020
572
0
-134
438
0
0
438
61
0
113
0
174
2
2020
0
0
3,420
29,694
516
33,630
2020
3,414
7,725
1,485
0
0
12,624
Note 8.
Income Taxes
2021
0
0
0
0
0
22%
0%
-22%
0%
0%
66
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Cost 1/1
Additions
Disposals
Merger
Exchange adjustments
Cost 31/12
Note 9.
Investments
In Subsidiaries
Of The Group
2021
28,623
0
0
-6,782
9
21,850
8
9
Subsidiary
UAB Idavang
Rus Invest Aps
Rurik A/S
Idavang Agro LLC
Idavang LLC
Nordrik Invest LLC
Idavang Luga LLC
Rurik Russia LLC
MPK-Vostochny LLC
Sovhoz Vostochny LLC
Ownership
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Idavang Russia A/S and Pskov Invest Aps are
in 2021 merged into Idavang A/S
Russia
Denmark
Lithuania
Subsidiaries Of The Group
2020
28,507
0
0
0
116
28,623
EUR’000
Income tax expense recognised in profit or loss:
Estimated tax on the taxable income for the year
Group taxation contribution
Adjustment regarding prior year
Changes in deferred tax
Income taxes
Reconciliation of tax rate:
Danish tax rate
Ajustment regarding prior year
Not reconnized tax assets
Tax free income
Effective tax rate
1/1 2020
28,516
0
0
0
-9
28,507
2020
0
0
0
14
14
22%
0%
0%
-22%
0%
Active / No activities
67
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 10.
Property,
Plant And
Equipment
Carrying amount of
assets written off but
still in use is EUR 0.
The amount of
borrowing costs
capitalised during
the year ended
31/12 2021 was EUR 0
(2020 - EUR 0).
Note 10.
Property,
Plant And
Equipment
+10
EUR’000
Cost at 1/1 2021
Additions
Disposals
Cost at 31/12 2021
Impairment losses and depreciation 1/1 2021
Depreciation
Reversed depreciation on disposal
Impairment losses and depreciation 31/12 2021
Carrying amount 31/12 2021
Fixtures, fittings,
tools, equipment Total
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2021
Fixtures, fittings,
tools, equipment
2020
EUR’000
Cost at 1/1 2020
Additions
Disposals
Cost at 31/12 2020
Impairment losses and depreciation 1/1 2020
Depreciation
Reversed depreciation on disposal
Impairment losses and depreciation 31/12 2020
Carrying amount 31/12 2020
Total
26
0
-26
0
-13
-2
15
0
0
26
0
-26
0
-13
-2
15
0
0
68
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Issued bonds
Total
Issued bonds
Total
Book value
70,356
70,356
73,823
73,823
Interest
period
Currency
EUR
EUR
EUR
Avg. nominal
interest
Avg. effective
interest
7.3%
7.3%
Note 11.
Payables
to credit
institutions
and issued
bonds
11
3 years
4 years
7.6%
7.6%
2021
2020
EUR’000
Non-current liability
Current liability
Book value in total
2021
70,356
0
70,356
Payables to credit institutions
and bonds including interest have
the following maturity terms:
EUR’000
Within 1 year
1-5 years
More than 5 years
Total
2021
5,491
86,206
0
91,697
Quoted bond is included with
EUR 5,491k with 1 year and 95,100k 1-5 year.
2020
73,823
0
73,823
2020
5,491
95,100
0
100,591
69
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Loans and receivables at amortised cost:
Receivables from group entities
Other receivables
Cash
Total loans and receivables measured at amortised cost
Total financial assets
Financial liabilities measured at amortised cost:
Payables to credit institutions
Payable to group entities
Other payables
Total financial liabilities measured at amortised cost
Total financial liabilities
Note 12.
Financial Assets
And Liabilities
Receivables from
group entities are
based on agreements
with 3rd party,
hence assumed
equal to fair value.
Fair value 2021
20,735
0
31,718
52,453
52,453
70,356
0
855
71,211
71,211
Carrying amount 2021
20,735
0
31,718
52,453
52,453
70,356
0
855
71,211
71,211
EUR’000
Payables to credit institutions
Issued bonds
Payable to credit institutions
Total
12
12/31
0
70,356
0
70,356
FX/other
0
264
0
264
Cash flow
0
-3,731
0
-3,731
2021 20201/1
0
73,823
0
73,823
Fair value 2020
55,282
54
3,011
58,347
58,347
73,823
7,440
1,109
82,372
82,372
Carrying amount 2020
55,282
54
3,011
58,347
58,347
73,823
7,440
1,109
82,372
82,372
12/31
0
73,823
0
73,823
FX/other
0
163
0
163
Cash flow
-6,457
-9,492
0
-15,949
1/1
6,457
83,152
0
89,609
70
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Cash
Group cash pool
Total
Note 13.
Cash
2021
9,197
22,521
31,718
EUR’000
Loss bought forward/group taxation
Deferred tax income/(expense)
Deferred tax asset/(liability)
Deferred tax asset/liability is recognised in the balance sheet as follows:
Deferred tax asset
Deferred tax liability
Deferred tax, net
Reconciliation of deferred tax, net:
At 1/1
Transferred in connection with the group taxation
The year’s tax income/expense recognised in profit or loss
The year’s tax income/expense recognised in other comprehensive income
At 31/12
Note 14.
Deferred Tax
2020
194
0
194
0
194
180
0
14
0
194
13
14
2020
0
0
Income statementBalance sheet
Tax losses carry forward
are capitalized with
EUR 203 thousand (out of
EUR 2,941 thousand) due
to uncertainties of utilizing
it in the future.
1/1 2020
180
0
180
0
180
0
180
0
0
180
2019
14
0
2020
3,011
0
3,011
2021
280
0
280
0
280
194
86
0
0
280
71
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 15.
Related Party
Transactions
EUR’000
Subsidiaries:
UAB Idavang
Idavang Agro LLC
Rus Invest ApS
Total
279
744
1,562
2,585
Interest
net
0
6,158
14,577
20,735
Loan
to/from
0
0
0
0
Management
fee
2021
EUR’000
Owners:
Shareholders
in JAST Holding ApS
Total
Dividend
Management
fee & salary
+15
Note 15.
Related Party
Transactions
In addition to the related
parties mentioned in
the consolidated financial
statements, Idavang A/S's
related parties include the
subsidiaries set out in Note 9
and executive board
and board of directors.
The tables show transactions
with related parties in
the financial year.
Transactions with executive
board and board of directors
are enclosed in Note 4.
All transactions with
related parties are carried
out on an arm's length basis.
Rus Invest Aps and Idavang
Agro LLC’s creditworthiness
have been evaluated due
to high equity ratio, it has
been concluded that
the receivables do not have
any risk for losses, hence
they are not written down.
Repurchase
of shares
0
0
EUR’000
Subsidiaries:
UAB Idavang
Idavang Agro LLC
Idavang LLC
Pskov Invest ApS
Rus Invest ApS
Total
938
1,085
0
-1,486
1,394
1,931
Interest
net
30,000
12,197
75
-7,440
13,010
47,842
Loan
to/from
0
0
0
0
0
0
Management
fee
2020
EUR’000
Owners:
Shareholders
in Jast Holding ApS
IFC
Total
Dividend
297
0
297
Management
fee & salary
0
0
0
(excluding Executive Board)
Repurchase
of shares
0
17,905
17,905
(excluding Remuneration
for Board of Directors
and Executive Board)
0
0
16
16
In addition to the related
parties mentioned in
the consolidated financial
statements, Idavang A/S's
related parties include the
subsidiaries set out in Note 9
and executive board
and board of directors.
72
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 16.
Contingent Liabilities, Securities And Other Financial Obligations
Contingent liabilities
The Company is taxed on a joint basis with its parent, Jast Holding ApS. The Company is thus jointly and
severally liable for all tax liabilities under the joint taxation arrangement until and including the financial
year ended 31 December 2021.
Securities
The Idavang Group is party of a credit facility agreement with Jyske Bank and Nordic Trustee. Under this
agreement, the following assets are held collateral:
> Receivables from group entities:
- Idavang Agro LLC (Russia) EUR 6.158K
> Shares in:
- Rus Invest ApS (Denmark)
- Rurik A/S (Denmark)
- Idavang Agro LLC (Russia)
- Idavang Luga LLC (Russia)
- UAB Idavang (Lithuania)
In addition, the following companies in the Idavang group participate in a cross guarantee to Jyske Bank
as the lender of this agreement: all except Russians.
The above mentioned securities have been provided as collaterals for bank mortgages of EUR 84,000
thousand at 31 December 2021.
Other obligations
None
16
Note 17.
Post Balance Sheet Events
No events materially affecting the Company's financial position have occurred subsequent to the
financial year-end.
17
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