ᚢ
ᚴ
ᛏ
ᚱᛅ
Approved at the Company’s
Annual General Meeting
on 28th February 2023
ldavang A/S
Tofthøjvej 41, DK-7321 Gadbjerg
CVR 20 95 61 43
2
Contents
Independent
auditors’ report
Management's review
Company Details
Group Chart
Historical Development
Business Review 2022
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
9
10
15
20
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27
29
29
31
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65
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6428
3
Tofthøj, 28 February 2023
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 2022.
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 2022 of the
Group and the Parent Company and of the results of the Group and Parent Company
operations and cash flows for 2022.
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 2022 with the file name IDAVANG-2022-12-31-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
Emphasis of matter
As mentioned in note 2 Critical Accounting
Estimates and Judgements Russia's "special
military operation" into Ukraine results in
uncertainties related to assessing the future
control of - and potential writedowns - of the
Russian activities.
Without modification of our opinion, we refer to
note 2 for description of the uncertainties.
Key Audit Matters
In addition to matter described in the Emphasis
matter section, we have determined the matters
decribed below to be the key audit matters to be
communicated in our report.
Key audit matters are those matters that, in our
professional judgement, were of most
significance in our audit of the Financial
Statements for 2022. 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.
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 2022 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
2022 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 2022 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
We were first appointed auditors of Idavang A/S on 25 May
2020 the financial year 2020. We have been reappointed
annually by shareholder resolution for a total period of
uninterrupted engagement of 3 years including the financial
year 2022.
I
ndependent Auditor Reports
to the shareholders of ldavang A/S
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.
Independent Auditor Report
to the shareholders of ldavang A/S
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 2022 the fair value
of the Group’s herd amounts
to EUR 40.099 thousand (2021:
EUR 26.982 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 15 in the
Consolidated Financial
Statements.
How our audit addressed
the key audit matter
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.
6
Independent Auditor Report
to the shareholders of ldavang A/S
As part of an audit in accordance with ISAs and the
additional requirements applicable in Denmark, we
exercise professional judgement and maintain professional
scepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of
the Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the
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 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.
Esbjerg, 28 February 2023
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Birgitte Larsen
State Authorised
Public Accountant
mne16564
7
Independent Auditor Report
to the shareholders of ldavang A/S
Palle H. Jensen
State Authorised
Public Accountant
mne32115
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 2022 with the filename IDAVANG-2022-12-
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
Consolidated Financial Statements including notes.
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 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 including notes;
• 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 2022 with the
file name IDAVANG-2022-12-31-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
2018
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 16 (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
2022
115.2
30.2
22.3
-3.8
15.7
80.9
41.4
158.4
61.7
66.5
63.9
32.7
17.7
-4.4
-15.0
-4.0
26%
188%
39%
26%
92
17%
770
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 AY
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 8 on page 70 for details.
IDAVANG LUGA
LLC
Leningrad Oblast, Russia
Lithuania
Revenue for the ldavang group was EUR 115.2m in 2022 against EUR
100.2m in 2021. EBITDA was EUR 30.2m against EUR 14.6m (at fixed herd
prices – see below in table, it was EUR 21.8m against 2021 of EUR 14.4m),
and profit after tax was EUR 15.7m against EUR 2.4m in 2021.
In Q1 2022, Ostrov farm in Russia received the first pigs for the
repopulation. First sales normal sales happened in November. Hence,
production volume in Russia during 2022 have been 29 MT, which is 26%
below normal volume. In Lithuania, production was unchanged at 55 MT
compared to 2021.
The Lithuanian sales prices have increased significant twice during 2022, but
as sales prices were below cost prices in the beginning of the year, prices
have only during the year increased above EBITDA cost price.
The extended period where sales prices have been below production cost
prices, have continued the reductions in EU herd seen in 2021. The last two
years have been historical in relation to how much production have been
reduced in Northern Europe, and expectation is that reductions are going to
continue in 2023.
Example of reduction of production is Germany and Poland is down with
18%/21% over two years and 11%/12% during 2021.
11
Management's Review
In Russia, supply and demand balance, with a slight oversupply. 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 have led to significant increase in sales
price (to 1,42 EUR/kg) for the whole year compared to 2021 (+36% in
Lithuania and +22% in Russia).
Although feed average prices were 25% higher than in 2021 (effecting
negative with EUR 15.0m), the underlying market increases have been even
higher, which was migrated by hedging efforts.
Field activities had normal harvest in 2022, nevertheless prices were below
2021 (EBITDA EUR 4.4m), similar to 2021 (EUR 5.2m).
The group invested EUR 4.4m in 2022, which is significant less than the
depreciation of EUR 8.0m. This is due to investment stop in Russia from end
February.
The equity on 31st December 2022 amounted to EUR 61.7m at an equity
ratio of 39% (27% 2021). The equity increased with EUR 22,0m partly due to
stronger RUB (EUR 5,6m) and strong result in 2022 especially due to write
up of the herd with EUR 8,4m.
Net interest-bearing debt (NIBD) decreased to EUR 66.5m in 2022, being
EUR 12.0m lower than in 2021 (78.5 mEUR). Nevertheless, the following
need to be considered EUR 4,8 from hedging transactions which will be
included in EBITDA in 2023. Idavang has almost three 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 2022
22,251
7,992
30,243
-8,430
21,813
2021
7,497
7,132
14,629
-271
14,358
EBITDA at fixed herd prices reflects that the normal EBITDA has been adjusted for the unrealized
value adjustments related to the biological assets required by IFRS.
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 AY
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
7%
#2
Pig Producer
29k
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.
2022
EUR/kg
0.1
0.2
0.3
Q1 Q2 Q3 Q4
0.24
0
0.28
0.32
0.30
EUR/kg
2022
0.2
0.4
0.6
0.8
1.0
1.2
0
1.4
1.6
Q1 Q2 Q3 Q4
1.01
1.38
1.51
1.48
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 2022 amounted to 14,041 kEUR, corresponding to an EBITDA margin of 19.2% (2021:
1,441 kEUR and EBITDA margin 2.7 %). Hence, the EBITDA fixed herd price increased compared to 2021 of EUR 12,6m.
The sales price increased 36 % compared to 2021 to an average 1,35 EUR per kilo slaughter pigs’ live weight in 2022
(2021: 0,99 EUR per kilo live weight slaughter pigs) with an effect of EUR 18,8m, whereas higher feed prices impact
negative (with EUR 7.9m). Cost per kg. (excluding feed) increased 7% compared to 2021.
Idavang Lithuania did during 2022 receive one-off subsidies to support meat production in difficult times of 5,1 mEUR.
Management's Review
15
Business Review 2022
Development in Segments
Live weight sales price
Feed price
Lithuania
accounted for
63%
of Group revenue
in FY2022
(54% in FY2021).
Lithuania
EUR’000 FY2022
Lithuania
Lithuania
72963
8176
−66526
−2124
7167
0
19656
249
−1295
18610
−2593
16017
2561
22217
14041
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)
FY2021
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
2021
Q1 Q2 Q3 Q4
0.97
1.14
1.02
0.85
2021
Q1 Q2 Q3 Q4
0.22
0.24 0.24
0.25
2022
EUR/kg
Q1 Q2 Q4
0.34
0.1
0.2
0.3
0
0.26
Q3
0.39
0.32
EUR/kg
0.2
0.4
0.6
0.8
1.0
1.2
0
1.4
1.6
1.19
2022
Q1 Q2 Q3 Q4
1.42
1.86
1.66
Management's Review
16
Business Review 2022
Development in Segments
Live weight sales price
Feed price
Russia
accounted for
37%
of Group revenue
in FY2022
(46% in FY2021).
Russia
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 2022 amounted to 8,458 kEUR, corresponding to an EBITDA margin of 20.0% (2021:
13,543 kEUR and EBITDA margin 29.3 %). The EBITDA fixed herd price decreased compared to 2021 of EUR 5,1m is
negatively influenced by limited production in Ostrov.
The sales price increased 22 % compared to 2021 to an average 1,56 EUR per kilo slaughter pigs’ live weight in 2022
(2021: 1,28 EUR/kg) with a positive effect of EUR 7,4m, whereas higher feed prices impact negative (with EUR 6.8m),
and lower volumes negative (EUR 1,3 m) – but more compared to full production as 2021 also missed Q4 in Ostrov.
Feed prices increased 33% in 2022 (with effect of EUR -6.8m), driven especially by price increases in Q1/Q2.
Furthermore, grain and rape prices reduced significant in Q3/Q4, hence harvest result is decreased (with EUR 0.8m).
FY2022
42256
254
−38195
−1446
412
0
3281
4590
−3268
4603
−85
4518
5431
8712
8458
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)
1.12
2021
Q1 Q2 Q3 Q4
1.27
1.42
1.35
2021
Q1 Q2 Q4
0.24
0.23
Q3
0.27
0.28
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
Product mix
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 increased from EUR 100.2 m to EUR 115.2 m (15%). The change comprise of higher prices EUR
26,2m and a decrease of EUR 11.2m was due to lower volume. The lower volume mainly due to Ostrov had
limited sales in Q4 whereas it had 8 months of sales in 2021.
Herd value adjustment
In 2022, the fair value adjustment for herd is driven by the increasing prices in EU and comprised EUR
+8.4m. Therefore, the adjustment mainly consists in increase in Lithuania with EUR +8.2m.
Production cost
Production costs increased by EUR 6.4m to EUR 104.7m from 98.3m (6.5%), but when all cost relating to
Ostrov insurance case in 2021 (EUR 6,1m) has been reversed the increase is EUR 12,5m.
The increase was mainly due to the following four factors:
• Feed cost impacted production cost with EUR -9.5m – an increase compared to 2021 equals 15.1%
(volume is -8.2% and price 25.3%)
• General higher cost level partly due to 28% stronger average RUB in 2022 compared to 2021 (Russia
variable and fixed cost was EUR 19,7m excluding feed in 2022) and general inflation.
• Increases in energy was highest increase with 79% higher (EUR -2,1 m).
• Field impacted positive (partly due to higher prices) with EUR -0.8m
• The change in herd compared to 2021 is EUR +5.1m (EUR 4.0 m in 2022 vs. EUR -1.1m in 2021), this is
driven by repopulation of the Ostrov herd.
Grant
The Government level of direct subsidies for meat and grain (excluding interest subsidies) is
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
2019
1.23
71
1.23
49
2020
1.13
87
1.10
45
significant higher in 2022 (EUR 5.3m) due to support for meat producers in
Lithuania compared to 2021 (EUR 2.1m mainly COVID subsidy). Furthermore, the
harvest result includes grants of EUR 0.4m, similar to 2021 (EUR 0.2m).
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. Hence, it is not subsidy.
2020
2021
0.99
-
1.28
-
2021
2022
1.35
-
1.56
-
2022
18
Outlook 2023
The company expects an EBITDA at fixed herd prices for 2023 around EUR 23-25m, supported by Ostrov
production is expected to operate almost normal in 2023.
• Lithuanian EBITDA (at fixed herd prices) is expected to be between EUR 10-14m (with last 7 years being
8,5 mEUR)
• Russia EBITDA (at fixed herd prices) is expected to be between RUB 1,2-1,3b (with last 7 years being
1,0b if corrected for Ostrov ASF repopulation)
Meat prices
Sales price is expected to be higher than in 2022, but a potential weaker RUB will decrease this.
• Lithuanian sales price is expected to increase with 15-25% from 2022 level of 1,35 EUR/kg
• Russian sales price is expected to be stable/increase 0-5% from 2022 level of 107 RUB/kg
Feed price
Feed price is expected to be higher than in 2022, but a potential weaker RUB will decrease this.
• Lithuanian feed price is expected to increase with 5-10% from end 2022 level of 0,319 EUR/kg
• Russian feed price is expected to be stable from end 2022 level of 20 RUB/kg
EURRUB exchange rate
Management expects the EURRUB to continuously become higher during the year, and is expect the
2023 average of the EURRUB to be in the high end of the range 75-90 (average in 2022 was 69 with a
monthly average range of 57-105).
Management's Review
Follow-up on 2022 outlook
The EBITDA fixed herd price 2022 (EUR 21.8m) was higher than historical average 2021
(EBITDA EUR 19.9 m) not as expected, this was nevertheless primarily due to the
significant subsidies received in Lithuania (EUR 5.1m), hence normal operations without
the one-off subsidies were as expected.
Therefore, when adjusting for the subsidy of EUR 5,1m the EBITDA would be EUR 16,7m,
or exactly on midpoint of expectation of EUR 13,0-19,9m.
Meat prices
EU/Lithuania average prices for 2022 were significantly higher than expected with 1,35
EUR/kg, and fulfills the management expectations of being above 2021 (0,99 EUR/kg).
Russian average prices for 2022 were significantly higher than expected with 1,56 EUR/kg,
and fulfills the management expectations of being above 2021 (1,28 EUR/kg). This was
nevertheless mainly driven by the stronger RUB exchange rate.
Feed price
Feed price was higher than 2021 as expected with 311 EUR/T compared to 244 EUR/T (in
2021), the level is nevertheless also impacted by the very strong EURRUB political
exchange rate.
EURRUB exchange rate
EURRUB has in 2022 been highly volatile, but also impacted by that European Central
Bank (ECB) 1st Marts 2022 stopped to publish FX rates on EURRUB (last 117,20) and
European banks in general have making transactions in EUR.
The fluctuation of monthly averages (57-105), but peaks have during March reached 150.
The annual average (from the Russian central bank) ended with 69, which is significant
below the expected range of 83-90. Nevertheless, management consider the exchange
to be political created by Russia and not market denominated, but has used it for the
annual report in lack of better alternatives (as no published FX rates from ECB).
19
Management's Review
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
Member
Jytte Rosenmaj
BOARD MEMBER
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, Cerca A/S,
Meta Mariehjemmet,
Premium Pork International A/S,
Danish Pig Genetics P/S,
Komplementarselskabet
Danish Pig Genetics Aps,
CubAgro Holding Aps,
DCH International A/S
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,
Agreena Aps,
Gadbjerg Butikshus og Cafe Aps
Slovakian Farm Invest A/S,
Akset A/S,
UV-Agri Aps,
Naturbiogas, Sode A/S
Jast Holding Aps,
Ejendomsselskabet Niels
Bugges Kro og Hotel A/S,
Jast Holding Aps
2) Include all shares controlled
Management
20
The Russian economy is particularly sensitive to oil
and gas prices.
Considering the sensitivity of the economy to oil
and gas prices, the economic situation in the future
is difficult to predict, as the country’s ability both to
produce and to sell its oil and gas is expected to be
negatively impacted by both current and future
sanctions from Western countries.
Furthermore, Russia has allocated massive part of
Russian budget towards military (e.g., special
military operation in Ukraine), which negatively
impact both now and in the future wealth in Russia.
Hence, both purchase power and inflation levels
(2022 11.8 % and 2021 8.4 %) are expected to be
further negative impacted.
Conclusion, on emerging market risk, is that it is
increasing in the Russian economy, and impacting
Russian both consumers' purchase power and
inflation negative.
Emerging market risk is
increasing in Russia
Political tension and international sanctions
against Russian interest have increased
continuously after “special military operation”
into Ukraine started in February 2022,
negatively impacting the Russian economy.
It is expected that full impact of current
sanctions, have not been seen. Hence, the total
negative impact by current and future sanctions
from Western countries on Russian economy is
difficult to quantify currently.
The Russian legal, tax and regulatory
frameworks continue to develop in a fast pace
towards countries behind sanctions (“unfriendly
countries”)) with frequent negative changes.
Conclusion, on legal environment (in both
Russia and internationally) is that it may
potentially have a negative impact on Idavang's
operations in Russia and the financial position
in the future.
Russian international political risk
and Russian legislation 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 Risks (I)
Management's Review
Pigs are fed by 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
The Board of Directors and Executive Board of Idavang are taking these issues into account in
the ongoing strategic review of Idavang's Russia business. When evaluating the different strategic
options for the future of Idavang's Russian business, including a potential sale of the business.
(Company Announcement No. 19/2022)
No conclusion of the process has been reached, at the date of signing the annual account.
21
During 2022, the RUB has fluctuated within a
range of 57% against the EUR.
As a result, the total effect for 2022 was an 10%
appreciation EUR/RUB, which positively affected
equity by EUR 5.6m, 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
Current Risks (II)
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:
22
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
2022, and does not expect to identify any corruption
cases in 2023.
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
2022, and does not expect to identify any corruption
cases in 2023.
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).
Closed lagoons also ensure that no odour will be
released into the air.
23
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 replacing the maximum volume of mineral
fertilizer, with organic fertilizer. In 2023 our work related to
environmental matters will continue unchanged from 2022.
KPI is the price paid for organic fertilizer as we assume it equals
mineral fertilizer volume reduced. Revenue in 2022 was EUR 1.443k
(2021 - EUR 825k). Higher prices illustrate higher fertilizer value, partly
due to increasing energy prices.
Management's Review
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
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
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.
Animal welfare is universal difficult to measure, hence indirectly
measuring is best indicators for animal welfare, and we (in Idavang)
say “a happy pig is a well performing pig”. Good animal welfare
produce good production results as well, therefore Idavang
benchmark towards EU averages on the two KPI’s: daily live gain
for slaughter pigs (DLG – higher is better) and Feed conversion rate
(FCR – lower is better).
KPI Idavang measure as follows DLG 931g/day (vs. EU norm 829g/day)
and FCR 2,83 kg feed/kg gain (vs. EU average 2,83)
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.
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
0
24
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 2022, there were no identified violations of
Idavang standards, and do not expect to identify violations of Idavang
standards in 2023.
-5,000
-10,000
-15,000
-20,000
Management's Review
'15
'16
'18
'17
'20
'14
-25,000
'19
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 14 in 2022 (compared to 23 (2021) and expect fewer
work accidents than 14 in 2023
Work accident are defined as “a person was injured and he or she had
sick leave or missed one or more working days”
-30,000
'21
2022
25
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 page 19.
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
26
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 2022 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
27
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 2022). The
gender representation is unchanged compared to the
end of 2021 (1 female of 9).
Idavang Group's objective regarding diversity at the
Board of Directors level is that at least one of the
boardmembers / management team should be of the
under-represented gender.
Idavang has fulfilled the ambition in 2022 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
No events materially affecting the Group and the
Company's financial position have occurred
subsequent to the financial year-end.
Management's Review
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
29
29
30
31
32
33
Statement Of Other Comprehensive Income
Profit for the year
Other comprehensive income
Exchange adjustment, foreign
subsidiaries (after-tax)
Hedge accounting transferred
to production cost (after-tax)
Value adjustment at hedge
instrument of the year (
after-tax)
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
2022EUR’000
15
NOTE
29
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
2022
Financial Statements for the period January 1 - December 31
5
3
6
4 5 6
9
8
9
11
15,736
5,644
-4,274
4,856
6,226
0
115,219
8,430
-104,721
-4,256
7,579
0
22,251
3,457
-
7,294
18,414
-2,678
15,736
Total comprehensive income 21,962
Profit for the year 15,736
Attributable to:
2021
100,163
271
-98,348
-
3,721
9,683
-
551
7,497
1,849
-
7,318
2,028
385
2,413
2,413
2021
2,413
3,737
-548
4,274
7,463
0
9,876
22
17
10
23
11
23
23
19
15
18
17
15
14
12
30
Balance Sheet
Assets
Total assets
2022EUR’000
Group
Financial Statements for the period January 1 - December 31
NOTE NOTE Equity & Liabilities
Total equity & liabilities
2022EUR’000
20
158,373 158,373
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
Cash
Total current assets
1,221
80,880
13,543
761
445
1,206
96,850
17,395
27,888
3,471
1,723
692
392
6,278
9,962
61,523
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
-29,196
4,855
85,247
61,706
58,718
1,697
2,957
0
554
63,926
17,734
9,741
829
745
3,692
32,741
96,667
2021
146,166
1,222
79,403
12,094
761
446
1,207
93,926
15,007
15,892
4,404
494
2,280
618
7,796
13,545
52,240
2021
146,166
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
31
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
Equity at 31 December 2020
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
2Equity at 31 December 20 1
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
2Equity at 31 December 20 2
800
0
800
0
800
29,868
2,413
3,737
-548
4,274
9,876
39,744
15,736
5,644
-4,274
4,856
21,962
61,706
67,098
2,413
2,413
69,511
15,736
15,736
85,247
547
-548
4,274
3,726
4,273
-4,274
4,856
582
4,855
-38,577
3,737
3,737
-34,840
5,644
5,644
-29,196
32
Cash Flow Statement
Group
Financial Statements for the period January 1 - December 31
15
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
Addition/disposal of biological assets
Value adjustment, biological assets
Total
Interest received
Interest paid
Corporation tax paid
Cash flows from operating activities
2022 2022EUR’000NOTE EUR’000
Acquisition of intangible assets
Acquisition of property, plant and equipment
Addition/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
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
6
15
12
14
20
23
The Group owns EUR 12.7m (2021: EUR 3.7m) Idavang A/S bonds year end,
furthermore the Group has EUR 9.0m overdraft (2021: EUR 9.0m).
22,251
7,992
-37
582
-1,030
1,729
2,354
388
-1,664
-8,430
24,135
458
-7,063
220
17,750
-5
-4,388
133
-2,532
0
-6,792
11,615
-26,617
0
-15,002
-4,044
13,545
461
9,962
2021
7,497
7,132
-203
3,726
-1,916
-2,363
-691
911
4,617
-271
18,439
1,327
-7,086
-1,284
11,396
2021
-6
-3,942
445
2,381
0
-1,122
13,066
-24,296
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, as the majority of the group i EUR related.
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
1
EUR at 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 matif 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.
33
EUR/RUB
EUR/DKK
31.12.2022
75.66
7.4365
31.12.2021
84.07
7.4365
Exchange rate
2021 average
87.71
7.4365
2022 average
68.70
7.4365
NOTES: Group
Financial Statements for the period January 1 - December 31
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 historical received government grants in the form of reimbursement of interest
expenses on loans, when constructing farms. These grants are recognised together with depreciations
of the assets.
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.
34
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.
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.
Useful life, years
25-40
8-15
3-10
Buildings
Plant and machinery
Other fixtures and fittings, tools and equipment
Fixed assets
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 put into operation.
Depreciation is calculated on the basis of cost price reduced by the residual value and any impairment
Useful life, years
20-25
Intangible assets
Rights
NOTES: Group
Financial Statements for the period January 1 - December 31
35
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.
The Group recalculate lease liabilities and the right to use asset, when modifications of leases are made.
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).
NOTES: Group
Financial Statements for the period January 1 - December 31
Short-term leases and leases of low value assets. The Group applies the recognition exemption to its
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
Breeding herds are classified as non-current. Commercial herd (slaughter pigs) are classified as current.
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.
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.
36
Useful life, years
Leasing assets
Buildings - office
Buildings - production
Other (contract length)
5
10
3-70
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.
Board approval
The annual account has been reviewed and approved by the board on the 28th February 2023, and will
be presented to the shareholders on the Annual General Meeting later on the 28th February 2023.
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, or whose fair value is disclosed, are classified based on the fair value hierarchy, see below:
37
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 (average for the year)
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
38
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.
2
39
Breeding herd, fair value prices for the herd are estimated in the following way:
Gilts.
The fair value price of gilts is estimated using the following principle. 22-week (PRRS negative) gilt
quotes are obtained from a reputable Danish genetic company. The quote is in DKK. So it is converted
to EUR using the exchange rate at the end of the reporting period (e.g., Dec22A).
The current quote in EUR is the adjusted with the following two adjustments: (i) the current quote is
reduced by the current year’s market sale price for the 93 kg slaughter pigs (that is the assumed weight
of a 22 week pig), and (ii) reduced price is then increased by the 2.5-year weighted average price of a 93
kg (or 22 week) pig. The weighted 2.5-year average price is estimated assigning 40% weights to the
current and previous year prices and 20% to the price two years back.
After applying the two adjustments, the long-term gilt value. The long-term gilt value is used to derive
average gilt price. Specifically, the long-term gilt value is first increased by adjusting for growing 5
additional weeks (total of 27 weeks). This adjustment is based on the quoted premium for gilts above
the age of 22 weeks as per a reputable Danish genetic company.
Secondly, the long-term gilt value is reduced by estimate of genetics. This adjustment is estimated as ½
of the difference between 22-week (PRRS negative) gilts and current year slaughter pig price. As per
Management, the estimate of price reduction is conservative. Hence, the Management treats this
conservative adjustment sufficient to also cover the transport expenses. After all these adjustments, the
Management derives the average price for 27-week (PRRS negative) gilt.
Sows.
The fair value price for sows is based on the average gilt price. To arrive at the fair value estimate of
base sow, the value is adjusted for growing the gilt by additional 5 weeks (total of 32 weeks). This
adjustment is based on the quoted premium for gilts between 26 and 32 weeks as per a reputable
Danish genetic company.
Next, the estimated value of piglets per sows per year. The fair value estimate of piglets per sow is
made using actual current year piglets weaned per litter per sow multiplied by the 2.5-year average
price of piglets and divided with 2 (assuming all sows are half way in pregnancy).
The 2.5-year average price of piglets is determined using monthly quotes obtained from the SPF-
Danmark after converting from DKK to EUR. Fair value per sow is determined by adding fair value of
piglets per sow to the fair value of gilt at 32-weeks of age.
NOTES: Group
Financial Statements for the period January 1 - December 31
The carrying amount at 31 December 2022 is EUR 40,099 thousand (2021 EUR 26,982 thousand). Please
refer to note 15.
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.
Tangible assets depreciations periods are based on decline in value of assets. Idavang business model
means that assets typically continue to use assets which has very limited market value. The old tangibles
assets are maintained extensively with higher than normal maintenance cost as consequence. The fully
depreciated assets still in use of EUR 35,916 thousand, is estimated to have sales value approximate
equal to scrap metal.
40
Commercial herd, fair value prices for the commercial herd are determined in the following way:
Piglets.
Fair value price per piglet is determined based on the SPF-Danmark quotes for SPF-PRRS negative
piglets at 7 kg for region 2 or 3. The quoted price is adjusted for the difference in the average weight of
the commercial stock of piglets. (see all info quotes on spf.dk)
The adjustment is based on the SPF-Danmark quotes for piglet that are less than 7 kg. The
Management makes the assumption that an average piglet on commercial stock is approx. 3.75 kg. The
fair value price per piglet of 7 kg is adjusted for the quote differential between a 7 kg and a 3.75 kg
piglet as per SPF-Danmark. This adjusted fair value price per piglet is used to value the commercial
stock of piglets.
Weaners.
Fair value price per weaner is determined by the sum of a SPF-Danmark quote for SPF-PRRS negative
weaners at 30 kg for region 2 or 3. Similarly as with piglets, the fair value price for weaners is adjusted
for the difference in the average weight of the commercial stock of weaners. The adjustment is also
based on the SPF-Danmark quotes for weaner that are less than 30 kg. The Management makes the
assumption that an average weaner on commercial stock is approx. 18.5 kg. The fair value quote per
weaner of 30 kg is adjusted for the quote difference between a 30 kg and an 18.5 kg weaner as per
SPF-Danmark. The adjusted fair value price per weaner is used to value the commercial stock of
weaners.
Slaughter pigs
For slaughter pigs between 30 kg and 60 kg, the fair value price per unit is determined by adjusting the
30 kg weaner price by the SPF-Danmark quotes for weaner that are above 30 kg. The Management
makes the assumption that approx. 40% of all the slaughter pigs on commercial stock are between 30
kg and 60 kg, with the average weight of 45 kg. Hence, the fair value quote per weaner of 30 kg is
adjusted for the quote differential between 45 kg and 30 kg.as per SPF-Danmark. The adjusted fair
value price is used to value the commercial stock of slaughter pigs that are between 30 and 60 kg.
For slaughter pigs above 60 kg, the actual market sale price of slaughter pigs. Furthermore, the model
assumes that a good approximate for average weight of slaughter pigs above 60 kg is the average
between 60 kg and the actual average weight of slaughter pig sales (for FY22A this was 112.89 kg). In
FY22A, the assumed that the average weight of slaughter pigs above 60 kg was approx. 86.44 kg.
Fair value assessment of commercial stock in Lithuania and Russia are conceptually identical. The key
differences are that adjusted fair value prices for piglets, weaners and slaughter pigs between 30 kg
and 60 kg are multiplied by a country risk factor (differences in sales prices in December between
Russia and Lithuania on slaughter pigs). In FY22A this factor for Russia was set at 0.82 (and FY21 1.30).
Actual Russian market price is used as a fair market value price for slaughter pigs above 60 kg.
EUR
Slaughterpig sales price liveweight (per kg) – Russia end year
Slaughterpig sales price liveweight (per kg) – 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
2022
1.30
1.58
65
30
-18%
552
429
2021
1.25
0.96
27
12
30%
559
472
NOTES: Group
Financial Statements for the period January 1 - December 31
41
Russian Activities
As of the date of signing this annual report, Russian military forces "special military operation" into
Ukraine has limited direct on Group operations in Russia. The Idavang groups operation in Russia of
cropping 8.2 thousand hectares and production of 340 thousand pigs has significant distance to areas
impacted by the "special military operation".
Until now, overall the Russian "special military operation" into Ukraine has not impacted the Group's
activities in Russia and Management assesses that the Group continues to be able to control and
operate the Russian activities. Therefore, the Russian activities, assets and liabilities are consolidated
in the Consolidated Financial Statements. Ordinary impairment tests have been performed and it has
been concluded that no impairment write downs are needed on the Russian Activities.
Based on the risks mentioned in "Risk Section" and the present business enviroment in Russia, there
are uncertainties related to assessing the future control of - and potential writedowns of - the Russian
activities.
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
42
2022
Definition of other is Idavang A/S, Rurik A/S, Rus Invest Aps and elimination (of intercompany debt, cash pool and interest).
Eliminations made are 3.290 kEUR between Financial income/expense and 17.660 kEUR between Total assets and Liabilities.
Russian revenue
Lithuanian revenue
Russian operation is full line; hence
revenue mainly consists of live slaughter pigs
sold to 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.
98%
Slaughter
pigs
52%
Fields
2%
Other
pigs
48%
Pigs
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
72,963
8,176
-66,526
-2,124
7,167
0
19,656
249
-1,295
18,610
-2,593
16,017
2,562
22,218
14,042
69,208
-35,691
33,517
42,256
254
-38,195
-1,446
412
0
3,281
4,590
-3,268
4,603
-85
4,518
5,431
8,712
8,458
82,366
-17,395
64,971
0
0
0
-686
0
0
-686
-1,382
-2,731
-4,799
0
-4,799
0
-686
-686
6,799
-43,581
-36,782
115,219
8,430
-104,721
-4,256
7,579
0
22,251
3,457
-7,294
18,414
-2,678
15,736
7,993
30,244
21,814
158,373
-96,667
61,706
Idavang Group did in 2022 have 3 customers above 10%, with 15%, 11% and 10%.
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
43
2021
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
+
Definition of other is Idavang A/S, Rurik A/S, Rus Invest Aps and elimination (of intercompany debt, cash pool and interest).
Eliminations made are 637 kEUR between Financial income/expense and 37.774 kEUR between Total assets and Liabilities
Idavang Group did in 2021 have 2 customers above 10% with 13% and 11%
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
2022
109
0
0
0
1
09
5
EUR’000
Wages and salaries
Other social security costs
Other staff costs
Total
2022
13,946
1,497
320
15,763
Note 5.
Staff Costs
Note 4.
Fees Paid To Auditors Appointed At The Annual General Meeting
44
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
Total
Average number of full-time employees
2022
13,226
0
2,537
15,763
586
607
235
1,428
770
EUR’0002021
130
7
0
0
137
2021
12,159
1,129
542
13,830
2021
11,485
13
2,332
13,830
583
559
235
1,377
769
Note 7.
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
2022
224
5,062
1,443
454
37
0
359
7,579
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 6.
Amortization, Depreciation And Impairment
6
2022
4,157
218
3,155
149
114
171
28
7,992
45
EUR’000
EUR’000
7
2021
3,737
296
2,797
50
227
0
25
7,132
2021
566
1,398
831
447
203
6,153
85
9,683
Buildings & Land
Buildings & Land IFRS16
Plant and machinery
Plant and machinery IFRS16 & financial leasing
Other fixtures and fittings, tools and equipment
Other fixtures and fittings, tools and equipment Financial lease
Intagible assets
Total
Note 10.
Government Grants
The Group receives government grants in the form of reimbursement of interest on loans, grants
for crop production and compensation for high grain prices.
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.
Government grants relating to interest on loans from credit institutions have been deducted in
financial expenses.
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
2022
1,563
95
5,822
-61
-5,822
100
1,697
NOTES: Group
Financial Statements for the period January 1 - December 31
8
Note 8.
Financial Income
9
Note 9.
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
2022
0
0
-1,094
-6,021
-70
-109
-7,294
10
46
> 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
2022
128
201
222
2,798
108
3,457
EUR’000
EUR’000
2021
0
0
-1,481
-5,659
-70
-108
-7,318
2021
142
522
1,037
0
148
1,849
2021
1,597
55
2,251
-155
-2,251
66
1,563
Purchase of bonds below par
NOTES: Group
Financial Statements for the period January 1 - December 31
11
Note 11.
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
2022
-918
168
-1,928
-2,678
22%
-14%
7%
15%
-618
221
750
0
353
12
Note 12.
Intangible Assets
EUR’000
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
Cost at 1 January 2022
Additions
Disposals
Exchange adjustments
Cost at 31 December 2022
Amortization at 1 January 2022
Amortization
Disposals
Impairments
Exchange adjustments
Impairment losses and amortization at 31 December 2022
Carrying amount at 31 December 2022
Total
2,542
6
0
29
2,577
1,315
25
0
0
15
1,355
1,222
2,577
5
0
44
2,626
1,355
28
0
0
22
1,405
1,221
47
Right
575
6
0
29
610
367
25
0
0
15
407
203
610
5
0
44
659
407
28
0
0
22
457
202
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
2021
-107
0
492
385
22%
82%
41%
-
19%
559
-1927
750
0
-618
Note 13.
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
2022
9.7%
2%
Lithuania
EUR’000
2022
1,019
NOTES: Group
Financial Statements for the period January 1 - December 31
13
48
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 1.1m in 2023, but in from 2024 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.
Safety margin in performed impairment test
Management estimate the safety margin in 2022 impairment test to be 32% (compared to safety
margin of 15% in 2021).
2021
8.5%
2%
2021
1,019
EUR’000
Cost at 1 January 2022
Additions
Disposals
Transfers
Exchange adjustments
Cost at 31 December 2022
Impairment losses and depreciations at 1 January 2022
Depreciations
Reversed depreciation on disposals
Transfers
Exchange adjustments
Impairment losses and depreciations at 31 December 2022
Carrying amount at 31 December 2022
Land which is not depreciated
Note 14.
Property,
Plant And
Equipment
Total
Cost amount of assets
written off but still in use
is EUR 35,916 thousand.
The amount of borrowing
costs capitalised during
the year ended
31 December 2022 was
EUR 0k (2021: EUR 63k).
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
14
Plant
and
machinery
Fixtures,
fittings,tools
IFRS16 and
Financial lease
Plants
under
construction
49
2022
Land
and
buildings
IFRS16
Fixtures,
fittings
and tools
3,194
1,578
-2
-2,952
465
2,283
0
0
0
0
0
0
2,283
156,700
4,917
-559
-531
8,462
168,989
77,297
7,964
-464
0
3,312
88,109
80,880
106,593
260
0
1,971
5,360
114,184
42,409
4,157
0
0
1,547
48,113
66,071
3,436
2,407
20
-54
0
72
2,445
640
218
0
0
14
872
1,573
38,103
1,409
-394
874
2,515
42,507
29,405
3,155
-375
300
1,701
34,186
8,321
2,203
416
-63
101
49
2,706
1,875
114
-50
37
50
2,026
679
1,717
342
-46
-77
1
1,937
1,181
171
-39
-42
0
1,271
667
Plant
and
machinery
Financial lease
2,483
892
0
-448
0
2,927
1,787
149
0
-295
0
1,641
1,286
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
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
Note 14.
Property,
Plant And
Equipment
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.
NOTES: Group
Financial Statements for the period January 1 - December 31
50
2021
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
35,804
989
-536
146
1,700
38,103
26,121
2,626
-534
1,192
29,405
8,698
2,112
80
-106
86
31
2,203
1,735
155
-80
32
33
1,875
328
1,595
217
-11
-84
0
1,717
1,097
122
-6
-32
0
1,181
536
+
Total
Land
and
buildings
Plant
and
machinery
Fixtures,
fittings,tools
IFRS16 and
Financial lease
Plants
under
construction
Land
and
buildings
IFRS16
Fixtures,
fittings
and tools
Plant
and
machinery
Financial lease
2,290
193
0
0
0
2,483
1,616
171
0
0
0
1,787
696
EUR’000
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
Carrying amount at 1 January 2022
Gains/losses from fair value changes
Additions
Disposals
Transfers
Exchange adjustments
Carrying amount at 31 December 2022
Biological assets provided as security for loans
Note 15.
Biological
Assets
Value adjustment
of biological assets.
NOTES: Group
Financial Statements for the period January 1 - December 31
15
51
2021
2022
Non current
/ Breeding Herd
1,099
0
3,053
-3,228
0
80
1,004
0
1,004
0
4,417
-4,178
0
89
1,332
0
17,116
1,670
80,815
-83,706
-1,552
545
14,888
0
14,888
9,792
103,443
-100,627
-1,391
451
26,556
0
18,215
1,670
83,868
-86,934
-1,552
625
15,892
0
15,892
9,792
107,860
-104,805
-1,391
540
27,888
0
15,469
-1,399
3,806
-7,739
1,552
405
12,094
0
12,094
-1,362
5,483
-4,341
1,391
278
13,543
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.
2022
Breeding herd
Commercial
herd
Crops
2021
An area of 8,269 ha
was harvested mainly wheat,
and by the end of 2022
6,060 ha were seeded
Stock decreased
and at year-end stock
was 363,728 pigs.
During the year
703,924 slaughter pigs,
0 weaners and
11,269 sows
were sold
Stock decreased and
the year ended with
a total of 30,415 sows,
gilts and boars
Crops are based on cost of seed, fertilizer, chemical, variable cost and salary to field production. Revaluation of consuma-
ble biological assets was made based on the prices of the most recent sales prices and official quotes.
Commercial and breeding herd are measured at fair value level 2, due to significant links to observable quates on pigs and
recent sales prices See calculation method in note 2 Accounting estimates
52
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
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 16.
Loans, Receivables And Liabilities
Measured At Amortised Cost
EUR’000
16
53
Carrying
amount
Fair
value
2022
Carrying
amount
Fair
value
2021
Financial assets
Trade receivables
Other receivables (normal)
Other receivables (hedging)
Prepayments
Cash
Total financial liabilities
measured at amortised cost
Payables to credit institutions
Payables IFRS 16
Trade payables
Prepayments from customers
Other payables (normal)
Other payables (hedging)
445
3,471
1,723
-
692
9,962
16,
293
74,808
1,644
9,741
829
3,692
-
90,714
445
3,471
1,723
-
692
9,962
16,
293
62,814
1,644
9,741
829
3,692
-
78,720
446
4,404
494
-
2,280
13,545
21,169
90,056
1,945
6,855
1,082
3,132
79
103,149
446
4,404
494
-
2,280
13,545
21,169
90,056
1,945
6,855
1,082
3,132
79
103,149
Total cash and receivables
measured at amortised cost
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. Nevertheless in 2022 bonds are classified as
level 2 due to high spread.
EUR’000
Carrying
amount
Fair
value
2022
Carrying
amount
Fair
value
2021
Level 1
Level 2
Level 3
9,962
-
6,331
16,293
-
76,452
14,262
90,714
13,545
-
7,624
21,169
70,435
21,645
11,069
103,149
13,545
-
7,624
21,169
70,435
21,645
11,069
103,149
Total cash and receivables
measured at amortised cost
Level 1
Level 2
Level 3
Total financial liabilities
measured at amortised cost
9,962
-
6,331
16,293
-
64,458
14,262
78,720
Fair value on outstanding bonds end year is difficult to evaluate due to high spread, sellers wanted @ 90.00
and buyers offered @ 67.50. It is included with 80 above, which is assumed to be fair market value.
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 17.
Deferred Tax
17
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
-775
-753
1
8
760
-759
760
1,519
-759
2022
-595
-919
0
0
-414
-1,928
Tax losses carry forward
not capitalized are
EUR 4.491 thousand (2021
EUR 3.542 thousand)
due to uncertainties of
utilizing it in the future.
The tax loss carry forward
isunlimited.
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
54
2022
-1,337
-1,629
1
8
761
-2,196
761
2,957
-2,196
-268
-1,928
0
-2,196
2021
-742
-710
1
8
1,175
-268
761
1,029
-268
-759
490
1
-268
2021
33
43
0
0
414
490
EUR’000
Raw materials and consumables
Cost of sales recognised in profit or loss (feed)
2022
17,395
74,077
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 19.
Trade Receivables
19
Trade receivables at 31 December 2022 include receivables at a nominal value of EUR 3,471 thousand
(2021: EUR 4,403 thousand), the carrying amount of which has been reduced by EUR 0 thousand (2021:
EUR 0 thousand) regarding write downs. Trade receivables overdue by more than 30 days are EUR 172
thousand (2021: EUR 98 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.
20
Note 20.
Cash
EUR’000
Cash - Denmark / Lithuania
Cash - Russia
Total
2022
6,077
3,885
9,962
55
18
Note 18.
Inventories
21
Note 21.
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
2021
548
(142)
(1,107)
(548)
5,522
4,273
-
79
2021
15,007
64,350
2021
832
12,713
13,545
Contracting grain in Lithuania
Typical contacts buying grain in LT is split into two parts: Matif price and discount (for feed wheat).
The price is fixed using matif contracts, before physical contract is closed, hence gain/loss on matif
contract and physical contract combined equals grain expense. Contracts are reviewed and unefficient
parts of hedging transaction are classified as financial income/expense (e.g. 142 kEUR unefficient in
2022). The efficiency in 2022 was 98% and 98% in 2021, the efficiency percentages are calculated by
comparing contracts with matif transactions.
In 2023 has hedging had effect on comprehensive income of 4.856 kEUR (4.274 kEUR in 2022).
Tax of other comprehensive income amount to 0kEUR, as tax on hedging is included when the gain/
loss is transferred to the profit and loss.
2022
4,273
(128)
(1,925)
(4,352)
6,987
4,855
-
-
NOTES: Group
Financial Statements for the period January 1 - December 31
56
22
Note 22.
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
(hence total 800.000 shares). 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.
Note 23.
Financial Risks
23
Sales price risk
Idavang policy is selling on weekly auctions, but a minor percentage of sales to Lithuanian customers is
linked to national price index.
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 0.7m (2021: EUR 0.5m),
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 (2021: EUR 0.5m), all other things being
equal.
Raw material price risk
Board and management does quarterly on board meetings reconcile mandates for hedging.
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 4.2m in 2022
(based on current years purchase * 10%) (2021: EUR 4.6m), all other things being equal. Furthermore, a
similar 10% change in protein prices is estimated to affect profit by +/- EUR 1.1m in 2022 (based on
current years purchase * 10%) (2021: EUR 1.1m), all other things being equal.
Credit risk
The Group policy is to to minimise its credit risks. 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.
The Group overdraft facility of 9 mEUR function mainly function as liquidity reserve.
Foreign exchange risk
Idavang policy is not to hedge EURRUB exposure.
Interest rate risk
Idavang policy is to have long funding of loans, and all changes in funding need board approval.
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 0.6m (2021: EUR 0.8m).
The following assumptions are made in the overview above: revenue in Russia is RUB-denominated. Grain and soy in
Russia are from 1st January 2022 assumed RUB exposure as invoiced in RUB. EUR includes DKK as it's tied to the EUR.
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
57
EUR’000
Revenue
Production cost
Administration expenses
Net exposure
Payables to credit institutions
Net exposure
2022
RUB
42,256
-38,195
-1,446
2,615
12,746
12,746
USD
0
0
0
0
0
0
EUR
72,963
-66,526
-2,124
4,313
63,706
63,706
12/31
115,219
-104,721
-3,570
6,928
76,452
76,452
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
100,163
-92,195
-3,721
4,247
92,001
92,001
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.
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.
58
EUR
EUR
RUB
Total
2022
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:
2022
24,007
68,871
599
93,477
Currency Interest
9.1%
0.7-6.5%
3.5%-4.25%
Payables to credit institutions, IFRS 16
Issued bonds
Payables to credit institutions
Total
EUR’000 Cash flow
FX/Non cash
1/1 12/31
1,945
70,356
19,700
92,001
2022
59,969
3,737
12,746
76,452
Quoted bond is included with EUR 9,476k with 1 year and 66,413k 1-5 year
Issued bonds include prepaid cost of EUR 700k 31.12.2022, which is written off over the tenor of the loan.
-328
-7,821
-6,853
-15,002
27
-2,566
1,992
-547
1,644
59,969
14,840
76,452
3,887
1,101
12,746
17,734
56,082
2,257
0
58,339
0
379
0
379
EUR
EUR
RUB
Total
Currency
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. Outflow in Russia is expected to be fully covered by operational cash flow
(EBITDA and reduction in inventories), hence Russia is expected to debt free end 2023.
Payables to credit institutions, IFRS 16
Issued bonds
Payables to credit institutions
Total
EUR’000 Cash flow
FX/Non cash
1/1 12/31
2,267
73,824
25,458
101,549
2021
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
2021
Within
1 year
1-5
years
More than
5 years
Interest
7.5%
0.7-3.5%
3.5%-4.25%
70,356
3,491
18,154
92,001
0
1,201
16,643
17,844
70,356
1,795
1,511
73,662
0
495
0
495
2021
23,763
89,707
686
114,156
Note 23.
Leases
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
59
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:
2022
As at 31 December
Lease obligations are
accounted for as:
331
1,049
890
2,269
-626
1,644
279
1,364
1,644
EUR’000
As at 1 January
Additions
Accretion of interest
Payments
Disposals
Modifications
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
1,945
49
43
-328
-113
23
24
1,644
311
56
-210
-148
8
854
1,397
19
-963
-26
-
-
1,281
158
19
-
-
177
2,799
1,446
62
-1,291
-139
23
24
2,925
469
75
-210
-148
185
439
992
-
1,431
-150
1,281
383
898
1,281
770
2,041
890
3,700
-776
2,925
662
2,262
2,925
2022
As at 31 December
IFRS 16 Regular Total
IFRS 16 Regular Total
IFRS 16 Regular Total
IFRS 16 Regular Total
As at 31 December 2022 and 2021 all regular lease liabilities are denominated in euro. Negotiated by management to provide flexibility in managing the leased-asset portfolio and align the Company's
business needs. As at 31 December 2022 where no contracts which extensions options were expected not be exercised
nor any contracts which termination options were expected to be exercised.
+
Note 23.
Leases
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
60
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. 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 24.
Related Party
Transactions
24
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
61
EUR’000
Shareholders in JAST Holding Aps
(excluding Executive Board)
Total
Shareholders in JAST Holding Aps
(excluding Remuneration for Board of Directors and Executive Board)
Total
2021
2022
16
16
16
16
0
0
0
0
Dividend Management Fee and Salary
Note 25.
Bond
25
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
62
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 0.0b per 31/12/2022
Note 26.
Contingent Liabilities, Securities And Other Financial Obligations
Contingent liabilities
Securities
The following assets have been provided as security for the group's bankers:
Other obligations
Purchase contracts of grain, soy and sunflower in Lithuania and Russia of EUR 40.3m (2021 EUR 28.1m).
The Idavang Group is party of a credit facility agreement with Jyske Bank and Nordic Trustee. See details
in Parent Company Note 14.
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
2022
50,278
0
0
0
50,278
26
Note 27.
Post Balance Sheet Events
No events materially affecting the Group's financial position have occurred subsequent to the financial
year-end.
27
63
2021
39,747
0
0
0
39,747
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
65
65
66
67
68
69
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
2022EUR’000
-732
0
0
0
0
-732
NOTE
65
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 2022
0
-686
-686
5,975
-6,021
-732
0
-732
-732
Financial Statements for the period January 1 - December 31
5
6
7
3 4
2021
0
-626
-626
4,119
-5,659
-2,166
0
-2,166
-2,166
2021
-2,166
2
0
2
744
-1,420
Parent Company
NOTE
66
M E N U
Non-current assets
Other non-current assets
Shares in subsidiaries
Deferred tax
Other receivables
Total non-current assets
Current assets
Receivables
Receivables from group companies
Total receivables
Cash
Total current assets
EUR’000 2022
Financial Statements for the period January 1 - December 31
Total assets
Balance Sheet
Assets
Equity & Liabilities
10
NOTE
Equity
Share capital
Exchange adjustments
Retained earnings
Total equity
Non-current liabilities
Credit institutions and issued bonds
Total non-current liabilities
Current liabilities
Credit institutions
Other payables
Total current liabilities
Total liabilities
EUR’000 2022
Total equity & liabilities64,320
10
11
8
12
24,016
280
441
24,737
16,459
16,459
23,124
39,583
2021
75,024
21,850
280
441
22,571
20,735
20,735
31,718
52,453
75,024
800
22
2,991
3,813
70,356
70,356
0
855
855
71,211
800
22
2,259
3,081
56,082
56,082
3,887
1,270
5,157
61,239
64,320
2021
9 10
67
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
5,233
-2,166
746
-1,420
3,813
-732
0
-732
3,081
Parent Company
4,413
-2,166
744
-1,422
2,991
-732
0
-732
2,259
20
2
2
22
0
22
800
0
800
0
800
Equity at 31 December 2020
Profit/loss for the year
Other comprehensive income
Total comprehensive income
Equity at 31 December 2021
Profit/loss for the year
Other comprehensive income
Total comprehensive income
Equity at 31 December 2022
68
M E N U
Cash Flow Statement
Financial Statements for the period January 1 - December 31
Parent Company
NOTE EUR’000 2022
Operating profit/loss
Changes in receivables
Changes in non-current receivables
Changes in other current liabilities
Total
Interest received
Dividend received
Interest paid
Corporation tax paid
Cash flows from operating activities
NOTE EUR’000 2022
13
-686
1,924
-
653
1,891
2,974
151
-5,778
-
-762
0
0
-7,832
-7,832
-8,594
31,718
0
23,124
Cash flows from investing activities
Proceeds from borrowings
Repayments of borrowings
Cash flows from financing activities
investing and financing activities
Cash and cash equivalents at 1 January
Exchange adjustments
Cash and cash equivalents at 31 December
2021 2021
-626
35,254
54
-254
34,428
3,405
0
-5,395
0
32,438
0
0
-3,731
-3,731
28,707
3,011
0
31,718
Net cash flows from operating,
69
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. Indication of
impairment of investments in subsidiaries are assessed annually by management. Impairment tests
are conducted in the same way as for goodwill in the Group, in the consolidated financial statements
The receivables from group companies are included in impairment tests.
It is management’s assessment that no further indications of impairment existed at year-end 2023.
Impairment tests have therefore not been carried out for investments in other subsidiaries.
The fair value of receivables in subsidiaries corresponds to the carrying amount in all material
respects, as receivables from group companies has market terms.
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
2022
78
0
0
0
78
Audit fees are recognised
under administration expenses.
3
2021
54
7
0
0
61
EUR’000
Other fixtures and fittings, tools and equipment
Note 5.
Amortisation, Depreciation And Impairment Losses
2021
0
Amortisation, depreciation
and impairment losses
are recognised under
administration expenses.
2020
2
70
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
Total
Production
Fixed assets
Administration
Of which:
Remuneration for executive board
Salaries to other executive officers
Remuneration for board of directors
Total
Average number of full-time employees
Note 4.
Staff Costs
2022
420
0
420
0
0
420
185
0
235
420
2
Staff costs are recognised
under administration
expenses.
4
EUR’000
Exchange gains
Interest income from credit institutions
Interest income from related parties
Dividend
Purchased bond below par
Total financial income
Note 5.
Financial Income
2022
52
854
2,120
151
2,798
5,975
Financial income originating
from loans and receivables
measured at amortised cost.
EUR’000
Exchange losses
Interest payables to credit institutions
Interest, relating to IFRS 16
Other
Total financial expenses
Note 6.
Financial Expenses
2021
0
6,021
0
0
6,021
Financial expenses originating
from financial liabilities
measured at amortised cost.
5
6
2021
415
0
415
0
0
415
180
0
235
415
2
2021
714
820
2,585
0
0
4,119
2021
0
5,659
0
0
5,659
Note 7.
Income Taxes
2022
0
0
0
0
0
22%
0%
-22%
0%
0%
71
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 8.
Investments
In Subsidiaries
Of The Group
2022
21,850
2,166
0
0
0
24,016
7
8
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
2021
28,623
0
0
-6,782
9
21,850
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 2021
28,507
0
0
0
116
28,623
2021
0
0
0
0
0
22%
0%
0%
-22%
0%
Active / No activities
72
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
59,969
59,969
70,356
70,356
Interest
period
Currency
EUR
EUR
EUR
Avg. nominal
interest
Avg. effective
interest
9.1%
7.3%
Note 9.
Payables
to credit
institutions
and issued
bonds
9
2.75 years
3.75 years
9.4%
7.6%
2022
2021
EUR’000
Non-current liability
Current liability
Book value in total
2022
56,082
3,887
59,969
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
2022
9,476
66,413
0
75,889
Quoted bond is included with EUR 3,887k with 1 year
and 56,082k 1-5 year
2021
70,356
0
70,356
2021
5,491
86,206
0
91,697
Interest rate on issued bond is 3m EURIBOR + 725 bps p.a., quarterly interest payments, EURIBOR floor of 0%.
See Group account note 27 for all bond terms and group account note 25 for repayment profile.
73
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Loans and receivables at amortised cost:
Financial assets
Receivables from group entities
Other receivables
Cash
Total receivables and cash measured at amortised cost
Total financial assets
Financial liabilities measured at amortised cost:
Payables to credit institutions
Other payables
Total financial liabilities measured at amortised cost
Total financial liabilities
Note 10.
Financial Assets
And Liabilities
Receivables from group
entities are based on
agreements with 3rd party,
hence assumed equal to
fair value.
Fair value on outstanding
bonds end year is difficult
to evaluate due to high
spread, sellers wanted
@ 90.00 and buyers offered
@ 67.50. It is included with
80 above, which is assumed
to be fair market value.
Fair value 2022
441
16,459
0
23,124
39,583
39,583
47,975
1,270
49,245
49,245
Carrying amount 2022
441
16,459
0
23,124
39,583
39,583
59,969
1,270
61,239
61,239
EUR’000
Payables to credit institutions
Issued bonds
Payable to credit institutions
Total
10
12/31
0
59,969
0
59,969
Other
0
-2,555
0
-2,555
Cash flow
0
-7,832
0
-7,832
2022 20211/1
0
70,356
0
70,356
Fair value 2021
441
20,735
0
31,718
52,453
52,453
70,356
855
71,211
71,211
Carrying amount 2021
441
20,735
0
31,718
52,453
52,453
70,356
855
71,211
71,211
12/31
0
70,356
0
70,356
Other
0
264
0
264
Cash flow
0
-3,731
0
-3,731
1/1
0
73,823
0
73,823
Other consist of
Non cash items being
gain from purchase of
bonds (see Note 5) and
expenses on bond
from issue of it.
74
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Cash
Group cash pool
Total
Note 11.
Cash
2022
9,065
14,059
23,124
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 12.
Deferred Tax
2021
280
0
280
0
280
194
86
0
0
280
11
12
2022
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 2021
194
0
194
0
194
180
0
14
0
194
2021
14
0
2022
280
0
280
0
280
280
0
0
0
280
2021
9,197
22,521
31,718
Group cashpool,
hence maximum
fully available
amount is limited.
75
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 13.
Related Party
Transactions
EUR’000
Subsidiaries:
Idavang Agro LLC
Rus Invest ApS
Total
371
1,749
2,120
Interest
net
132
16,327
16,459
Loan
to/from
2022
EUR’000
Owners:
Shareholders
in JAST Holding ApS
Total
Dividend
Management
fee & salary
+13
Note 13.
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.
2021
(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 8
and executive board
and board of directors.
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
EUR’000
Owners:
Shareholders
in JAST Holding ApS
Total
Dividend
Management
fee & salary
Repurchase
of shares
0
0
(excluding Remuneration
for Board of Directors
and Executive Board)
0
0
16
16
76
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 14.
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 2022.
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 132K
> 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 82,374
thousand at 31 December 2022.
Other obligations
None
14
Note 15.
Post Balance Sheet Events
No events materially affecting the Company's financial position have occurred subsequent to the
financial year-end.
15
77
Information on reporting entity:
LEI code of reporting entity
Name of reporting entity or other means of identification
Class of reporting entity
Identification number [CVR] of reporting entity
Domicile of entity
Legal form of entity
Country of incorporation
Address of entity's registered office
Telephone number of reporting entity
Homepage of reporting entity
Principal place of business
Description of nature of entity's
operations and principal activities
Name of parent entity
Name of ultimate parent of group
Name and surname of chairman of general meeting
Average number of employees
Dates/locations:
Place of signature of statement by management
Date of approval of annual report
Executive board & Supervisory board:
Name and surname of member of executive board 1
Title of member of executive board 1
Name and surname of member of executive board 2
Title of member of executive board 2
Name and surname of member of supervisory board 1
Title of member of supervisory board 1
Name and surname of member of supervisory board 2
Name and surname of member of supervisory board 3
Name and surname of member of supervisory board 4
Name and surname of member of supervisory board 5
Dates/locations:
Signature of auditors, place
Signature of auditors, date
Auditor 1:
Name and surname of auditor 1
Description of auditor 1
Identification number of auditor 1
Name of audit firm 1
Address of auditor
Auditor 2:
Name and surname of auditor 2
Description of auditor 2
Identification number of auditor 2
5493000WVOJNMTISMP12
ldavang A/S
Tofthøjvej 41, DK 7321 Gadbjerg
A/S
Denmark
Tofthøjvej 41, DK-7321 Gadbjerg
Lithuania & Russia
Idavang's core activity is the production
and sale of high-quality slaughter pigs
and Weaners in Russia and Lithuania.
Jast Holding ApS
Jast Holding ApS
ldavang A/S
Tofthøjvej 41, DK 7321 Gadbjerg
A/S
Denmark
Tofthøjvej 41, DK-7321 Gadbjerg
Lithuania & Russia
Idavang's core activity is the production
and sale of high-quality slaughter pigs
and Weaners in Russia and Lithuania.
Jast Holding ApS
Jast Holding ApS
5493000WVOJNMTISMP12
ldavang A/S
Reporting class D
20956143
Tofthøjvej 41, DK 7321 Gadbjerg
+45 75 87 64 15
www.idavang.com
Michael Henriksen
770
Tofthøj
2023-02-28
Claus Baltersen
CEO
Michael Henriksen
CFO
Niels Hermansen
Chairman
Jytte Rosenmaj
Claus Baltersen
Ole Bjerremand Hansen
Carsten Lund Thomsen
Esbjerg
2/28/2023
Palle H. Jensen
State Authorised Public Accountant
mne32115
Pricewaterhousecoopers
Statsautoriseret Revisionspartnerselskab
Esbjerg Brygge 28, DK 6700 Esbjerg
Birgitte Larsen
State Authorised Public Accountant
mne16564
5493000WVOJNMTISMP12
ldavang A/S
Reporting class D
20956143
Tofthøjvej 41, DK 7321 Gadbjerg
Tofthøjvej 41, DK-7321 Gadbjerg
+45 75 87 64 15
www.idavang.com
Michael Henriksen
770
Tofthøj
2/28/2023
Claus Baltersen
CEO
Michael Henriksen
CFO
Niels Hermansen
Chairman
Jytte Rosenmaj
Claus Baltersen
Ole Bjerremand Hansen
Carsten Lund Thomsen
Esbjerg
2/28/2023
Palle H. Jensen
State Authorised Public Accountant
mne32115
Pricewaterhousecoopers
Statsautoriseret Revisionspartnerselskab
Esbjerg Brygge 28, DK 6700 Esbjerg
Birgitte Larsen
State Authorised Public Accountant
mne16564
General data ESEF ESEF hypertags General data DKGAAP DKGAAP hypertags
ESEF page
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