1
Annual
report
2021
CVR No. 66945715
Approved at the Annual General Meeting,
2 March 2022
Conductor
> Accomplish More
Electronics Manufacturing Services Worldwide
GPV International A/S
2
Table of contents
Entity details ..................................................................................................................................................... 3
Statement by Management on the annual report ............................................................................................ 4
Independent auditor's reports ........................................................................................................................... 5
Financial highlights .......................................................................................................................................... 7
Management commentary ................................................................................................................................ 9
Consolidated financial statements ................................................................................................................. 14
Notes to the consolidated financial statements ............................................................................................. 20
Parent financial statements ............................................................................................................................ 50
Notes to the parent financial statements ....................................................................................................... 56
GPV International A/S
3
Entity details
Entity
Central Business Re
gistration No: 66945715
Registered in: V
ejle
Financi
al year: 01.01.2021 - 31.12.2021
Phone: +4572191919
Web Site: www.gpv - group. com
Board of Directors
Execut
ive Board
Enti
ty auditors
CVR-nr. 3 3 77 12 31
GPV International A/S
4
Statement by Management on the annual report
Executive Board
Bo Lybæk
Chief Executive Officer
Board of Directors
Jens Bjerg Sørensen Jørn Ankær Thomsen Poul Erik Schou-Pedersen
Chairman
Lars Aagaard Nielsen Bjarne Skaarup Jepsen Kirsten Cecilie Kristensen
Employee director Employee director
GPV International A/S
5
Independent auditor's reports
Opinion
Basis for Opinion
Statement on Management’s Review
Management’s Responsibilities for the Financial Statements
GPV International A/S
6
Auditor’s Responsibilities for the Audit of the Financial Statements
Pri
cewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
MNE-no. 23328 MNE-no. 32115
GPV International A/S
7
Financial highlights
202
1
tDKK
2020
tDKK
2019
tDKK
2018
tDKK
2017
tDKK
Key figures
Revenue
3,190,
517
2,886,803
2,855,514
1,218,303
1,147,519
Operating
profit before
depreciation and amortisation
(EBITDA)
342,
300
269,808
195,532
113,716
105,633
Operating
profit (EBIT)
228,
873
147,517
75,141
74,765
78,338
Net
financials
(13,926
)
(31,408)
(12,771)
(3,607)
5,643
Profit
for the year
194,
390
98,402
47,316
63,221
92,884
Total
assets
3,209,
342
2,350,090
2,444,483
2,317,904
910,771
Investments
in property,
plant and equipment
88,
303
41,812
87,078
113,800
76,166
Equity
1,187,
820
931,701
895,815
779,997
280,782
Net interest
-bearing debt
(NIBD)
823,
713
614,910
819,053
811,974
350,504
Employees
in average
3,
905
3,
611
3,621
1,453
1,302
Ratios
EBITDA margin (%)
10.
7
9.3
6.8
9.3
9.2
EBIT margin (%)
7.
2
5.1
2.6
6.1
6.8
Net margin (%)
6.
1
3.4
1.7
5.2
8.1
NIBD/EBITDA ratio
2.
4
2.3
4.2
7.
1
3.3
Return on equity (%)
18.
3
10.8
5.6
11.9
38.2
Return on invested capital (%)
14.
4
10.5
6.0
7.1
15.3
Equity ratio (%)
37.
0
39.6
36.7
33.7
31.0
GPV International A/S
8
Financial highlights
Financial highlights are defined and calculated as follows.
Calculation formula Ratio effect
EBITDA margin (%)
(
EBITDA
)
x 100
Revenue
The Entity’s profitability
before depreciation and
amortisation.
EBIT margin (%)
(
EBIT
)
x 100
Revenue
The Entity’s profitability
Net margin (%)
Profit/(loss) for the year x 100
Revenue
The Entity's operating
profitability
NIBD/EBITDA ratio
Net interest bearing debt
EBITDA
The Entity’s gearing based
on carrying amount
Return on equity (%)
Profit/(loss) for the year x 100
Average equity
The Entity's return on capital
invested in the Entity by the
owners
Return on invested
capital (%)
(
EBITA
)
x 100
Average invested capital
The Entity’s return on capital
invested
Equity ratio (%)
Equity x 100
Total assets
The Entity’s equity ratio and
financial strength
GPV International A/S
9
Management commentary
Management Commentary
2021 was a year highly influenced by the worldwide material supply shortage situation leading to significant
increases in material prices, lead-times on components and other raw materials as well as on electronic
components. Together with difficulties in logistics and the continuation of the COVID-19 pandemic this has led to a
challenging business landscape.
At the same time GPV have seen an increasing demand from a broad range of customers, and the whole
organisation have worked dedicated during 2021 to service customers in the best possible way in this very difficult
landscape.
GPV’s 2021 performance is despite the situation satisfactory showing an increase in net sales of 11%, and
operating profit before depreciation and amortisation (EBITDA) with an increase of 27%. Cash flow from operating
activities is influenced by a proactive decision in close corporation with our customers to invest in additional
inventories to support deliveries best possible, and that have led to a significant increase in net working capital
and a negative cash flow from operating activities at DKK -126 million.
During 2021, we have continued the work with optimization of our performance and to ensure a continued fit of our
footprint to our strategy, “Winning our Future”. We have during first half of 2021 closed our manufacturing activities
in China, and we have instead focused our Chinese activities further on a stronger procurement organization. With
this step we aim to secure an even stronger platform for serving the increasing demand from our existing
customers as well as from new customers.
In 2021 we have continued working with a range of strategic initiatives with the aim of further strengthening the
platform for our core business. During the year we have finalized the first implementation of a new global MES
(Manufacturing Execution System) to make sure GPV also in the future will be a relevant partner for our
customers and we have prepared for a full rollout. We have continued the work with automation and streamlining
administrative procedures also using automation tools.
GPV has a strong market position in Northern Europe, Central Europe and Americas with well-balanced customer
portfolio, and with service offerings within high-mix/low-medium volume EMS, product design & engineering, box
build, high precision mechanics and cable harness.
At the end of 2021, GPV stands as a healthy, well-developed business with a sound base of competent
employees and with an appropriate production footprint in Asia, Europe and the Americas – a strong platform as
the future basis for value-adding growth for our valued customers, for GPV, and for our owners.
Financial developments in the financial year 2021
Total net sales for FY 2021 came to DKK 3,191 million (FY 2020 DKK 2,887 million). Despite the present situation
with material shortage and logistic issues we have seen an increase in net sales of 11% from 2020.
For FY 2021, operating profit before depreciation and amortisation (EBITDA) amounted to DKK 342 million (FY
2020 DKK 270 million), which is at a satisfactory level.
Operating profit (EBIT) amounted to DKK 229 million (FY 2020 DKK 148 million), which is satisfactory level. Profit
for the year came to DKK 194 million (FY 2020 DKK 98 million).
The total cash flow from operating activities for FY 2021 amounted to DKK -126 million (FY 2020 DKK 252
million). Investments in production related equipment and facilities in total for FY 2021 equals DKK 93 million (FY
2020 DKK 48 million).
At year-end 2021, total assets amounted to DKK 3,209 million against DKK 2,350 million for the previous year.
At the financial year-end, total equity amounted to DKK 1.188 million (DKK 932 million at the financial year-end
2020) including a positive exchange-rate adjustment in the year of DKK 29 million and a positive adjustment from
defined benefit obligations of DKK 41 million.
GPV International A/S
10
COVID-19 pandemic
During 2021 only a limited number of GPV employees have been infected with COVID-19, which has enabled us
to maintain a high level of activity and service during the pandemic.
Since mid-March 2020 we have had a task force in place handling high frequency information to customers,
internal communication and operational adaptions to COVID-19 hygiene and distance requirements.
As many other global companies, GPV was, and still is, impacted by the COVID-19 pandemic. A few of GPV’s
sites have in 2021 in shorter periods been lacking employees however it has only had minor impact on the
available capacity. In some sites we have utilized the local possibilities for temporary adjustments of the workforce
to adapt to variations in demand from our customers.
For shorter periods part of our white-collar employees worked from home, but it has not impacted our operation or
the service to our customers. At the end of 2021, we have most of our employees back in the offices, and are
working with full capacity. Health and safety of our employees continue to be our first priority.
The unusual corona pandemic situation has also in 2021 moved our business model in a more digital direction
with a large portion of communication conducted on digital platforms – customer meetings, internal governance
and digitalization of processes like NPI (New Product Implementation), customer audits and compliance audits.
Events subsequent to the financial year-end
No material events have occurred after the end of the financial year.
Outlook 2022
GPV will in 2022 continue the development of the recurring business and continue to deliver high quality products
to all our customers. With the focus on investments in new automated production technology and with the current
footprint with manufacturing in Denm ark , Switzerland, Austria, Germany, Slovakia, Thailand, Sri Lanka and
Mexico, together with our global sales and procurement organisation, GPV have a strong position in our core
markets.
T
o further strengthen our footprint, we have in 2021 initiated the expansion of our manufacturing facilities in Sri
Lanka with a new and larger electronics site, and in Thailand with a new and larger mechanics site as step one,
followed by expansion of the electronics site. The expansions are planned to be finalized beginning of 2023.
Our service offerings towards our customers cover design & engineering, electronics and mechanics
manufacturing, cable harness assembly, box-build, mechatronics products together with strong logistic solutions
and total life cycle management approach. With this strong platform both geographical and service offering GPV
continue our focused efforts to increase the value creation for our customers and to explore the market potential.
The trend towards outsourcing of production, within the industries in which GPV is operating, is expected to
continue in 2022. The customers will focus further on their core competencies and reduce their investments in
capital equipment and inventories, and at the same time via GPV gain access to flexibility and an outsourcing
partner that can handle manufacturability studies, complex production and transfer of production sites, together
with product development, test design, testing and logistics.
GPV will in 2022 have a continued focus on capacity and invest in extended capacity when deemed a
requirement.
FY 2022 is expected to be characterised by the worldwide material supply shortage situation and the difficulties
with logistics. The present COVID-19 pandemic is expected to have a limited influence for our manufacturing sites
and for our customers, but some continued governmental restrictions will probably influence on the possibilities for
traveling also in 2022. Against this outlook, GPV expects to be able to cope with the challenges and expect a
stable development in net sales in the range of DKK 3.2 - 3.4 billion. Operating profit before depreciation and
amortisation (EBITDA) is expected in the range of DKK 300 - 340 million, and with a positive cash flow from
operating activities for 2022.
Management will closely follow developments in the current situation and take the steps necessary to secure
continued competitiveness and the required liquid resources.
GPV International A/S
11
Employee development and appraisal
It is an essential prerequisite for the continued development of our business that we are able to attract, retain,
develop and motivate employees who have the necessary skills and capability. Important elements to support this
include the delegation of responsibility and competencies as well as cross-organisational solutions.
Our focus on Service Excellence and environmental management
We have uncompromising focus on timely delivery of faultless, secure and functional products and services that
fulfil expectations and requirements from our customers. The competence and commitment of all employees are a
prerequisite for achieving this. In 2021 we have further tightened our measures, and together with the present
challenging material supply situation this have given a temporary decrease in delivery performance in especially
the second half of the year. We expect that our delivery performance will raise to a normal high level as the
material shortage situation will improve. During 2021 we have continued delivered a very high quality level.
GPV is also determined to ensure environmental management as well as responsible behaviour in all areas.
Because GPV is an international supplier, it is imperative that GPV makes sure that all environmental and quality
requirements are channelled to our partners and suppliers to ensure the same high levels of quality, environment,
safety and ethics throughout the value chain.
Quality management
GPV’s quality system is based on the standard ISO 9001. In addition, GPV has obtained a number of important
quality certifications as well as plant and workmanship approvals.
In all manufacturing sites, GPV holds a number of general as well as industry-specific certifications and
workmanship standards aiming to fulfil the needs of and requirements from our customers.
A total list of certificates and approvals can be found on GPV’s homepage at:
www.gpv-group.com/about-gpv/awards-certificates/
Environmental management
GPV makes continuous efforts to mitigate the environmental impact of our business activities. Our largest
environmental impact relates to the consumption of energy, raw materials and the derived materials waste.
Our policy is always to comply with the rules and regulations that apply and to commit to making progress at our
own initiative within environment, health and safety.
Corporate Responsibility
Corporate Social Responsibility (CSR)
For GPV’s statutory description of Corporate Social Responsibility, hereunder human rights, social and labour
conditions, climate, environment and anti-corruption, in accordance with §99a and b in the Financials Statements
act, please refer to Schouw & Co. at
GPV strives continually to improve our work environment. We aim to strengthen and implement a shared
corporate culture, which is to help us treat all colleagues equally.
Please refer to the statement in the annual report for 2021 of the ultimate parent company Schouw & Co., on
policies and targets regarding gender representation in management:
GPV International A/S
12
Working Environment
In GPV the number of working hours lives up to the local labour legislation. In situations where law or agreements
require overtime pay or other kind of nuisance bonus, such payment is paid. Further GPV in Thailand is certified
according to TLS 8001 on Social Accountability.
GPV ensures that all phases of the supply chain are planned and organised to promote a safe, healthy and
responsible working environment.
The purpose is to avoid accidents and to ensure that the physical and mental conditions of the employees will not
deteriorate. It is indeed important to GPV to have healthy employees. GPV ensures that efforts to improve the
general health are part of the GPV way to act.
GPV helps improving the health of our employees by combining the efforts to improve the work environment with
initiatives targeting a healthier lifestyle and an improved well-being.
Freedom of Association
GPV does not interfere with the employees‘ choice of union or other association and respects the employees‘ right
to organise and enter collective bargaining.
Child Labour
GPV does not accept child labour. GPV is aware of and respects the ban against child labour as expressed in the
EU Directive 94/33/EC of 22 June 1994 on the protection of young people in the workplace, the UN Convention on
Economic, Social and Cultural Rights of 16 December 1966, ILO Convention No. 138 of 26 June 1973 on
Minimum Age, ILO Convention No. 182 of 17 June 1999 on the Worst Forms of Child Labour as well as the UN
Convention on the Rights of the Child of 20 November 1989.
Conflict Minerals
GPV support Section 1502 of the 2010 Dodd-Frank Act Wall Street Reform and Consumer Protection Act that
promote transparency and customer awareness regarding the use of Conflict Minerals.
GPV does not directly purchase any Conflict Minerals from any source and does not knowingly procure any
product containing Conflict Minerals.
For our Conflict Minerals Statement, we refer to the Company’s website at:
https://www.gpv-group.com/media/1340/gpv-group-statement-on-conflict-minerals.pdf
Corruption
As a company operating and delivering globally GPV is exposed to different cultures primarily in Asia, Europe and
the Americas. As expressed in our Code of Conduct, we pride ourselves of acting credibly and with integrity in all
of our operations, and we do not accept or offer bribes.
GPV is aware of and observes all applicable laws, rules and regulations in the various countries in which we
operate. GPV is responsible for understanding these laws, rules and regulations and how they apply to our
business and jobs, and for preventing, detecting and reporting instances of non-compliance to the relevant
individuals, institutions or authorities.
GPV sources raw materials and services in different countries. Our ambition is for our suppliers to meet our
Supplier Code of Conduct which governs ethical, social and environmental responsibilities. GPV will continue to
conduct supplier audits in business ethics.
For a full CSR policy and achieved results we refer to the Company’s website at:
http://www.gpv-group.com/about-gpv/csr-business-continuity-plan-threat-analysis/
GPV International A/S
13
GPV has no material outstanding environmental issues
GPV operates in compliance with all existing environmental rules and regulations and has set up task forces to
handle the Company’s environmental affairs.
Data ethics
For GPV’s statutory description of data ethics, in accordance with §99d in the Financials Statements act, please
refer to the overall Data Ethics Policy published by Schouw & Co. at
Liquidity risk / capital resources
GPV Group is predominately financed by resources of the parent company Schouw & Co. as well as a number of
committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility, which in
December 2020 was refinanced with a total facility framework of DKK 3,275 million. The facility is for a three-year
period with the possibility of a one-year extension after year one and two. In connection with the refinancing of the
banking facility, the previous banking consortium, consisting of Danske Bank, DNB and Nordea, was expanded
with the international bank Hong Kong & Shanghai Banking Corporation (HSBC). The first extension option was
utilized in December 2021.
In addition, in April 2019, Schouw & Co. issued a Schuldschein issue totaling EUR 136 million, (DKK 1,011 million)
with expiration in 2024 (80%) and 2026 (20%), and in December 2021, a facility was established for a total
of DKK
400 million with Nordic Investment Bank. The facility is for a seven-year periode and issued for specific capacity-
and development investments in
GPV Group, like other major subsidiaries in the Schouw & Co. Group, co-guarantees the aforementioned facilities
totaling DKK 4.686 million, where of DKK 1,994 million is utilized. In addition a number of other smaller facilities
totaling DKK 136 million established with the Schouw & Co. Group's global banker HSBC, where of DKK 92.1
million is utilized.
Debtor risk
A major part of GPV’s production is delivered to customers that use GPV as an outsourcing partner. Such
customers are mostly world class in what they do, well-reputed and often large international companies.
Debtor creditworthiness is carefully monitored on an ongoing basis, and we perform an in-depth credit assessment
of new customers and ongoing assessment of existing customers. In recent years, no material debtor losses have
been recorded.
Furthermore, debtor insurance regarding the existing and new customer portfolios is being reviewed on a current
basis.
Consolidated Financial Statements
Consolidated financial statements
Income statement 2021 2020
1/1 - 31/12 1/1 - 31/12
Notes
tDKK tDKK
3 Revenue 3.190.517 2.886.803
4,7 Cost of sales -2.643.122 -2.463.283
Gross profit 547.395 423.520
6 Other operating income 3.167 6.335
4,7 Distribution costs -127.919 -111.330
4,5,7 Administrative expenses -191.746 -169.328
6 Other operating expenses -2.024 -1.680
Operating profit 228.873 147.517
8 Financial income 19.471 38.969
9 Financial expenses -33.397 -70.377
Profit before tax 214.947 116.109
10 Tax on profit for the year -20.557 -17.707
Profit for the year 194.390 98.402
Attributable to:
Minority interests 25 35
Shareholders of GPV International A/S 194.365 98.367
Statement of other comprehensive income
Notes
Profit for the year 194.390 98.402
Other comprehensive income
Exchange differences on translation of foreign operations 28.506 -47.584
Remeasurement of the defined benefit obligation 40.984 -14.879
Value adjustment of hedging instruments recognised during the year -2.761 0
Net other comprehensive income/(loss) to be reclassified to profit
or loss in subsequent periods, net of tax
Total recognised other comprehensive income 261.119 35.939
14
Consolidated Financial Statements
Balance sheet 2021 2020
Dec 31 Dec 31
Notes
tDKK tDKK
Assets
Non current assets
Goodwill 181.370 173.986
Development projects in progress 10.570 5.884
Other intangible assets 225.975 232.599
11 Intangible assets 417.915 412.469
Land and buildings 173.290 184.557
Plant and machinery 224.093 210.615
Other fixtures, tools and equipment 12.774 13.126
Assets under construction 60.896 55.818
12 Property, plant and equipment 471.053 464.116
13 Lease assets 76.475 98.097
10 Deferred tax 47.861 48.157
Receivables 8.326 6.756
Other non-current assets 132.662 153.010
Total non-current assets 1.021.630 1.029.595
Current assets
14 Inventories 1.376.206 675.520
15 Receivables 672.228 508.667
Income tax 6.048 3.235
Cash and cash equivalents 133.230 133.073
Total current assets 2.187.712 1.320.495
Total assets 3.209.342 2.350.090
15
Consolidated Financial Statements
Balance sheet 2021 2020
Dec 31 Dec 31
Notes
tDKK tDKK
Liabilities and equity
Equity
16 Share capital 50.000 50.000
Hedge reserve -2.774 0
Exchange adjustment reserve 43.671 15.148
Retained earnings 997.086 861.737
Proposed dividend 100.000 5.000
Share of equity attributable to the parent company 1.187.983 931.885
Minority interests -163 -184
Total equity 1.187.820 931.701
Non-current liabilities
17 Other liabilities 53.997 81.813
10 Deferred tax 43.057 39.847
20 Pension liabilities 61.853 106.282
17 Debt to ultimate parent company 349.511 349.722
17 Debt to credit institutions 58.418 0
Provisions 18.202 16.633
Non-current liabilities total 585.038 594.297
Current liabilities
17 Current portion of non-current debt 45.489 30.806
17 Debt to ultimate parent company 529.511 367.701
Trade payables 558.525 247.844
Prepayment received from customers 110.957 13.821
18 Other short-term payables 175.886 143.730
Income tax 16.116 20.190
Current liabilities total 1.436.484 824.092
Total liabilities 2.021.522 1.418.389
Total liabilities and equity 3.209.342 2.350.090
19 Financial risks
21 Contingent liabilities
22 Changes in working capital
23 Related parties
24 Events after the balance sheet
16
Consolidated Financial Statements
Cash flow statement 2021 2020
1/1 - 31/12
1/1 - 31/12
Notes
tDKK tDKK
Profit before tax 214.947 116.109
Adjustment for operating items of a non-cash nature, etc. -22.460 18.114
7 Depreciation and impairment losses 113.427 122.291
6 Other operating items, net 65.660 -12.136
8 Financial income -19.471 -38.969
9 Financial expenses 33.397 70.377
Cash flows from operating activities before changes in working
capital
22 Cash flow changes in net working capital -456.071 25.194
Cash flows from operating activities after changes in working
capital
-70.571 300.980
Interest income received 615 768
Interest expenses paid -21.421 -24.145
Cash flows from ordinary activities -91.377 277.603
Income tax paid -34.459 -25.239
Cash flows from operating activities -125.836 252.364
Investing activities:
Purchase of intangible assets -4.704 -6.475
12 Purchase of property, plant and equipment -79.047 -28.131
Sale of property, plant and equipment 10.716 2.656
Addition/disposal of other financial assets -1.401 -885
Cash flows from investing activities -74.436 -32.835
Financing activities:
Repayment of non-current liabilities -33.662 -33.846
Increase (repayment) of bank overdrafts -6 -28
Proceeds from incurring non current financial liabilities 71.556 0
Shareholders:
Change in payables to ultimate parent company 161.468 -213.527
Dividend paid -5.000 0
Cash flows from financing activities 194.356 -247.401
Cash flows for the year -5.916 -27.872
Cash and cash equivalents at the beginning of the year 133.073 167.571
Value adjustment of cash and cash equivalents 6.073 -6.626
Cash and cash equivalents at the end of the year 133.230 133.073
Cash and cash equivalents at the end of the year are composed of:
Cash 133.230 133.073
Cash and cash equivalents at the end of the year 133.230 133.073
17
Consolidated Financial Statements
Equity statement
Share
capital
Hedge
reserve
Exchange
adjustment
reserve
Retained
earnings
Proposed
dividend
Total
Non-
controlling
interests
Total
equity
tDKK tDKK tDKK tDKK tDKK tDKK tDKK tDKK
Equity at Jan 1, 2021 50.000 0 15.148 861.737 5.000 931.885 -184 931.701
Other comprehensive income in 2021
Exchange rate adjustment of foreign subsidiaries 0 -13 28.523 0 0 28.510 -4 28.506
Value adjustment of hedging instruments recognised during the y
Remeasurement of the defined benefit obligation 0 0 0 40.984 0 40.984 0 40.984
Profit for the year 0 0 0 94.365 100.000 194.365 25 194.390
Total recognised comprehensive income 0 -2.774 28.523 135.349 100.000 261.098 21 261.119
Transactions with the owners
Capital increase 0 0 0 0 0 0 0 0
Dividend distributed 0 0 0 0 -5.000 -5.000 0 -5.000
Addition/disposal of minority interests 0 0 0 0 0 0 0 0
Transactions with the owners for the period 0 0 0 0 -5.000 -5.000 0 -5.000
Equity at Dec 31, 2021 50.000 -2.774 43.671 997.086 100.000 1.187.983 -163 1.187.820
18
Consolidated Financial Statements
Equity statement
Share
capital
Hedge
reserve
Exchange
adjustment
reserve
Retained
earnings
Proposed
dividend
Total
Non-
controlling
interests
Total
equity
tDKK tDKK tDKK tDKK tDKK tDKK tDKK tDKK
Equity at Jan 1, 2020 50.000 0 62.732 783.249 0 895.981 -166 895.815
Other comprehensive income in 2020
Exchange rate adjustment of foreign subsidiaries 0 0 -47.584 0 0 -47.584 -53 -47.637
Remeasurement of the defined benefit obligation 0 0 0 -14.879 0 -14.879 0 -14.879
Profit for the year 0 0 0 93.367 5.000 98.367 35 98.402
Total recognised comprehensive income 0 0 -47.584 78.488 5.000 35.904 -18 35.886
Transactions with the owners
Capital increase 0 0 0 0 0 0 0 0
Dividend distributed 0 0 0 0 0 0 0 0
Addition/disposal of minority interests 0 0 0 0 0 0 0 0
Transactions with the owners for the period 0 0 0 0 0 0 0 0
Equity at Dec 31, 2020 50.000 0 15.148 861.737 5.000 931.885 -184 931.701
19
Consolidated Financial Statements
20
Notes to the consolidated financial statements
1. Accounting policies..................................................................................................................................... 21
2. Significant accounting judgements, estimates and assumptions .............................................................. 28
3. Revenue from contracts with customers .................................................................................................... 30
4. Costs .......................................................................................................................................................... 31
5. Fees to the auditor appointed by the Annual General Meeting ................................................................. 33
6. Other operating income and expenses ...................................................................................................... 33
7. Depreciation, amortisation and impairment losses .................................................................................... 33
8. Financial income ........................................................................................................................................ 33
9. Financial expenses .................................................................................................................................... 33
10. Tax on the profit for the year .................................................................................................................... 34
11. Intangible assets ...................................................................................................................................... 35
12. Property, plant and equipment ................................................................................................................. 37
13. Lease assets ............................................................................................................................................ 38
14. Inventories ................................................................................................................................................ 40
15. Receivables .............................................................................................................................................. 40
16. Equity ....................................................................................................................................................... 41
17. Credit institutions and borrowings ............................................................................................................ 41
18. Other short-term payables ....................................................................................................................... 42
19. Financial risks .......................................................................................................................................... 43
20. Pensions and other post-employment benefit plans ................................................................................ 45
21. Collaterals and Contingent liabilities ........................................................................................................ 48
22. Cash flow changes in net working capital ................................................................................................ 48
23. Related parties ......................................................................................................................................... 49
24. Events after the balance sheet date ........................................................................................................ 49
25. Standards issued but not yet effective ..................................................................................................... 49
Consolidated Financial Statements
21
Notes to the consolidated financial statements
1. Accounting policies
Basis of preparation
GPV International A/S (the Company) is a limited company incorporated and domiciled in Denmark.
relationships of the Group is provided in note 23
.
The consolidated financial statements of GPV International A/S and its subsidiaries have been prepared in
accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and
additional Danish disclosure requirements.
The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial
instruments that are measured at fair value.
The consolidated financial statements are presented in Danish Kroner (DKK) and all values are rounded to the
nearest thousand (tDKK) except when otherwise indicated.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries at 31
December 2021.
Subsidiaries are entities over which GPV has control. GPV has control over an entity, when the Group is exposed to
or has rights to variable returns from its involvement in the entity and has the ability to affect those returns through
its power over the entity.
Only potential voting rights that are considered to be substantive at the balance sheet date are included in the
control assessment.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the
Group loses control of the subsidiary.
The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group
income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between
the consolidated enterprises are eliminated. Assets, liabilities, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated financial statements from the date the Group gains
control until the date the Group ceases to control the subsidiary.
Subsidiaries’ financial statement items are fully recognised in the consolidated financial statements. Minority
interests’ pro rata shares of the profit/loss and the net assets are disclosed as separate items in the income
statement and the balance sheet, respectively.
New and amended standards and interpretations
GPV has implemented all new standards, changes to standards and implementations in the year but none of these
are relevant for GPV.
Foreign currency translation
The Group’s consolidated financial statements are presented in Danish Kroner (DKK), which is also the Parent
Company’s functional currency. For each entity, the Group determines the functional currency and items included in
the financial statements of each entity are measured using that functional currency.
On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction
date. Receivables, payables and other monetary items denominated in foreign currencies that have not been
settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange
differences that arise between the exchange rate at the transaction date and the exchange rate at the payment
date, as well as the exchange rate at the balance sheet date are recognised in the income statement as financial
income or financial expenses.
Consolidated Financial Statements
22
Property, plant and equipment, intangible assets, inventories and other non-monetary assets that have been
purchased in foreign currencies are translated using historical exchange rates.
On consolidation, the assets and liabilities of foreign operations are translated into DKK at the rates of exchange
prevailing at the reporting date and their statement of profit or loss are translated at monthly average exchange
rates prevailing at the dates of the transactions. The exchange differences arising on the translation are recognised
in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive relating
to that particular foreign operation is recognised in the income statement.
Derivative financial instruments
The Group uses derivative financial instruments such as forward currency contracts to hedge its foreign currency
risks (cash flow hedges). Such derivative financial instruments are initially recognised at cost value on the date on
which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are
recognised as financial assets when the fair value is positive and as financial liabilities when the fair value is
negative.
At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to
which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking
the hedge.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to the income statement,
except for the effective portion of cash flow hedges, which is recognised in other comprehensive income and later
reclassified to profit or loss when the hedged item affects profit or loss.
The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income in
the cash flow hedge reserve, while any ineffective portion is recognised immediately in the income statement as
financial expenses. Amounts recognised as other comprehensive income are transferred to profit or loss when the
hedged transaction affects profit or loss. When the hedged item is the cost of a non-financial asset or non-financial
liability, the amounts recognised as other comprehensive income are transferred to the initial carrying amount of the
non-financial asset or liability.
If the forecast transaction is no longer expected to occur, the cumulative gain or loss previously recognised in equity
is transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without
replacement or rollover (as part of the hedging strategy), or if its designation as a hedge is revoked, or when the
hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognised in other
comprehensive income remains separately in equity until the forecast transaction occurs or the foreign currency
firm commitment affects profit or loss.
Shareholders' Equity
Reserve for net revaluation according to the equity method: Net revaluation of investments in subsidiaries and
associates is recognised at cost in the reserve for net revaluation according to the equity method.
The reserve can be eliminated in case of losses, realisation of investments, or a change in accounting estimates.
The reserve cannot be recognised as a negative amount.
Dividend: Dividend proposed for the year is recognised as a liability in the financial statements at the time of
adoption by the shareholders at the Annual General Meeting. The dividend proposed in respect of the financial year
is stated as a separate item under equity.
The hedge transaction reserve contains the accumulated net change in the fair value of hedging transactions that
meet the criteria for hedging future cash flows and for which the hedged transaction has yet to be realised. The
exchange adjustment reserve in the consolidated financial statements comprises exchange differences arising on
the translation of the financial statements of foreign enterprises from their functional currencies into Danish kroner
including exchange differences on financial instruments considered to be a part of the net investment or as hedging
of the net investment. On realisation, accumulated value adjustments are taken from equity to financial income and
expenses in the income statement.
Consolidated Financial Statements
23
Income statement
Revenue
Revenue from contracts with customers is recognised when control of the goods is transferred to the customer at
an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods.
The Group has concluded that it is the principal in all of its revenue arrangements.
Sale of goods
Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the
customer, generally on delivery of the goods. The normal credit term is 30 to 75 days upon delivery.
The Group considers whether there are other promises in the contract that are separate performance obligations to
which a portion of the transaction price needs to be allocated.
In determining the transaction price for the sale of goods, the Group considers the effects of variable consideration.
Variable consideration
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to
which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is
estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the
amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable
consideration is subsequently resolved.
Revenue is measured excluding VAT and other taxes and duties charged on behalf of third parties. All discounts
granted are deducted from revenue.
Production costs
Production costs comprise costs, including depreciation, wages and salaries, incurred in generating the revenue for
the year. Production costs include direct and indirect costs for raw materials and consumables, wages and salaries,
maintenance, depreciation and impairment of production plant as well as costs and expenses relating to the
operation, administration and management of factories. Also included are inventory impairment.
Distribution costs
Distribution costs comprise expenses incurred in connection with the distribution of goods sold during the year and
in connection with sales campaigns, etc. launched during the year under review, including cost of sales and
logistics staff, advertising and exhibition costs, as well as depreciation/amortisation and impairment losses.
Administrative expenses
Administrative expenses comprise expenses incurred during the year for management and administration, including
expenses for administrative staff, office premises and office expenses, and depreciation and impairment losses.
Administrative expenses also comprise impairment on receivables.
Employee benefits
Equity-settled share options are measured at fair value at the grant date and their value is recognised in the income
statement under staff costs over the vesting period. The balancing item is recognised directly in equity as a
shareholder transaction.
On initial recognition of the share options, the number of options expected to vest is estimated. Subsequently,
changes in the estimated number of vested options are adjusted to the effect that the total amount recognised is
based on the actual number of vested options.
The fair value of options granted is estimated using a valuation model that takes into account the terms and
conditions of the options granted.
Consolidated Financial Statements
24
Other operating income and expenses
Other operating income and expenses comprise items of a secondary nature relative to the companies’ activities,
including gains and losses on replacement of intangible assets and property, plant and equipment. Gains and
losses on the disposal of intangible assets and property, plant and equipment are computed as the difference
between the selling price and the carrying amount at the date of disposal.
Financial income
Other financial income comprises dividends etc. received on other investments, interest income, including interest
income on receivables from group enterprises, net capital gains on securities, payables and transactions in foreign
currencies, amortisation of financial assets as well as tax relief under the Danish Tax Prepayment Scheme etc.
Financial expenses
Other financial expenses comprise interest expenses, including interest expenses on payables to group enter-
prises, net capital losses on securities, payables and transactions in foreign currencies, amortisation of financial
liabilities as well as tax surcharge under the Danish Tax Prepayment Scheme etc.
Income tax and deferred tax
The tax for the year consists of current tax and changes in deferred tax for the year. The tax for the year is
recognised in the income statement, other comprehensive income or equity.
Deferred tax is measured using the balance sheet liability method on temporary differences between the carrying
amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences
relating to goodwill, which is not deductible for tax purposes and on other items where temporary differences, apart
from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable
income. Deferred tax is measured at the tax rates (and in accordance with the tax rules) applicable in the respective
countries at the date when the deferred tax is expected to be realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available
against which the temporary differences can be used. Adjustment is made for deferred tax concerning unrealised
intercompany profits and losses eliminated. Changes in deferred tax due to changed tax rates are recognised in the
income statement.
Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of
the reversal of the temporary difference is controlled by the GPV Group, and it is probable that the temporary
difference will not reverse in the foreseeable future.
Balance sheet
Intangible assets
The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition.
Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and
accumulated impairment losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortisation period and the
amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting
period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated
as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in
the statement of profit or loss in the expense category that is consistent with the function of the intangible assets.
Consolidated Financial Statements
25
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine
whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is
made on a prospective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when
the asset is derecognised.
A summary of the policies applied to the Group’s intangible assets is, as follows:
Goodwill Indefinite useful lives No amortisation
Other intangibles Finite useful live (5-20 years) Amortised on a straight-line basis
Property, plant and equipment
Land and buildings, plant and machinery as well as other fixtures, tools and equipment are measured at cost, net of
accumulated depreciation and accumulated impairment losses.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset
until the time when it is ready to be put into operation. For self-manufactured assets, cost comprises direct and
indirect costs of materials, components, sub suppliers and labour costs. For assets held under finance leases, cost
is the lower of the asset’s fair value and present value of future lease payments.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
Buildings 10-25 years
Plant and machinery 5-10 years
Other fixtures and fittings, tools and equipment 3-8 years
Land is not depreciated.
The cost of an asset is divided into separate components which are depreciated separately if their useful lives differ.
The residual values and useful lives are reviewed at each financial year end and adjusted prospectively, if
appropriate.
Depreciation is recognised in the income statement as production costs, distribution costs or administrative
expenses.
Lease assets and lease commitments
Leased assets and lease commitments are recognised in the balance sheet when the leased asset under a lease
entered into regarding a specific identifiable asset is made available to the Group in the lease term, and when the
Group obtains the right to almost all economic benefits from the use of the identified asset and the right to control
the use of the identified asset.
On initial recognition, lease commitments are measured at the present value of the future lease payments
discounted by an incremental borrowing rate. The following lease payments are recognised as part of the lease
commitment:
• Fixed payments.
• Variable payments that change concurrently with changes to an index and an interest rate based on said
index or interest rate.
• Payments overdue subject to a residual value guarantee.
• Exercise price of call options that it is highly probable that Management will exercise.
• Payments subject to an extension option that it is highly probable that the Group will exercise.
• Penalty related to a termination option unless it is highly probable that the Group will not exercise the
option.
Consolidated Financial Statements
26
The lease commitment is measured at amortised cost according to the effective interest method. The lease
commitment is recalculated when the underlying contractual cash flows change due to changes in an index or an
interest rate if the Group's estimate of a residual value guarantee changes or if the Group changes its assessment
of whether call options, extension options or termination options can reasonably be expected to be exercised.
On initial recognition, the leased asset is measured at cost, corresponding to the value of the lease commitment
adjusted for prepaid lease payments plus directly related costs and estimated costs for demolition, repairs or the
like and less discounts or other types of incentive payments received from the lessor.
Subsequently, the asset is measured at cost less accumulated depreciation and impairment losses. The leased
asset is depreciated over the shorter of the lease term and the useful life of the leased asset. Depreciation charges
are recognised on a straight-line basis in the income statement.
The leased asset is adjusted for changes to the lease commitment due to changes to the terms of the lease or
changes to the cash flows of the lease concurrently with changes to an index or an interest rate.
Leased assets are depreciated on a straight-line basis over the expected lease term, which is:
Property 5-10 years
Equipment 5-8 years
Cars 3-6 years
Other asset 3-8 years
The Group presents the leased asset and the lease commitment separately in the balance sheet.
The Group has chosen not to recognise leased assets of a low value and short-term leases in the balance sheet.
Instead, related lease payments are recognised on a straight-line basis in the income statement.
The related lease liability is disclosed in current and non-current other liabilities in the financial statement.
Impairment of non-current assets
Non-current assets with definite useful lives are tested for impairment when there is an indication that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to
sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows (cash-generating units).
Goodwill is tested for impairment annually as at 31 December and when circumstances indicate that the carrying
value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of each cash generating unit (CGU) (or
group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying
amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future
periods.
Intangible assets with indefinite useful lives are tested for impairment annually as at 31 December at the CGU level,
as appropriate, and when circumstances indicate that the carrying value may be impaired.
Inventories
Inventories are measured at the lower of cost using the FIFO method and net realisable value. Cost consists of
purchase price plus delivery costs. Cost of manufactured goods and work in progress consists of costs of raw
materials, consumables, direct labour costs and indirect production costs, based on a normal operating activity.
Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation on and
impairment losses relating to machinery, factory buildings and equipment applied for the manufacturing process as
well as costs of factory administration and management. Financing costs are not included in cost.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and costs
incurred to execute sale.
Consolidated Financial Statements
27
Trade receivables
Receivables are recognised at the trade date, initially measured at fair value and subsequently at amortised cost
using the effective interest method, less provision for impairment. Impairment of trade receivables is calculated
using the simplified expected credit loss method, based on historical loses adjusted for forward looking information.
Impairment on receivables, after initial recognition of the receivables, are recognised in the income statement under
administrative expenses.
Employee obligations
Pension obligations and similar non-current liabilities
The Group has entered into pension schemes and similar arrangements with the Swiss part of the Group's
employees.
Contributions to defined contribution plans where the Group makes fixed pension contributions to independent
pension funds are recognised in the income statement in the period to which they relate, and any outstanding
contributions are recognised as other payables in the balance sheet.
For defined benefit plans, an annual actuarial calculation (the projected unit credit method) is made of the value in
use of future benefits earned by employees under the defined benefit plan. The value in use is determined on the
basis of assumptions about the future development in variables such as salary levels, interest rates, inflation,
retirement age and mortality. The value in use is determined only for benefits earned by employees from their
employment with the Group. The actuarially calculated value in use less the fair value of any plan assets is
recognised as pension obligations in the balance sheet.
Pension costs for the year are recognised in profit or loss based on actuarial estimates at the beginning of the year.
Any difference between the calculated development in plan assets and pension obligations and realised amounts
determined at year end constitutes actuarial gains or losses and is recognised in other comprehensive income.
If changes or reductions in benefits relating to services rendered by employees in previous years result in changes
in the actuarially calculated value in use, the changes or reductions are recognised as past service costs. Past
service costs are recognised as costs immediately at the earlier of the date of the change or reduction and the date
when a related restructuring or termination benefit is recognised.
If a net pension plan constitutes an asset, the asset is recognised only in so far as it equals future refunds from the
plan or will lead to reduced future contributions to the plan.
Long-term employee benefits are recognised based on an actuarial calculation. Actuarial gains and losses are
recognised immediately in profit or loss. Other long-term employee benefits include jubilee benefits, etc.
Further details are disclosed in note 20.
Income tax payable or receivable
Current tax payable or receivable is recognised in the balance sheet, stated as tax calculated on this year's taxable
income, adjusted for prepaid tax.
Cash
Cash comprises cash in hand and bank deposits.
Financial liabilities
Financial liabilities are initially recognised at fair value (typically the amount of the proceeds received), net of
transaction costs incurred. In subsequent periods, the financial liabilities are measured at amortised cost; any
difference between the cost (the proceeds) and the redemption value is recognised in the income statement over
the period of the borrowings using the effective interest method.
Financial liabilities also include the outstanding obligation under finance leases, measured at amortised cost.
Financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement
of the liability for at least 12 months after the balance sheet date.
Consolidated Financial Statements
28
Other provisions
These comprise the anticipated costs of warranty obligations. Provisions are recognized when, as a consequence
of a past event, the company has a legal or constructive obligation and it is likely that the obligation will materialize.
Other liabilities
Other liabilities are measured at net realisable value.
Cash flow statement
The cash flow statement shows cash flows from operating, investing and financing activities as well as cash and
cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the profit/loss before
tax adjusted for non-cash operating items, working capital changes and income taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments as well as purchase, development, improvement and sale, etc. of
intangible assets and property, plant and equipment, including acquisition of assets held under finance leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital and
related costs as well as the raising of loans, inception of finance leases, instalments on interest-bearing debt,
purchase of treasury shares, and payment of dividend.
Cash and cash equivalents comprise cash less short-term bank debt.
2. Significant accounting judgements, estimates and assumptions
The preparation of the Group’s consolidated financial statements requires Management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods. Management continuously reassesses these estimates and judgements based on a
number of factors in the given circumstances. The following accounting estimates are considered significant for the
financial reporting.
Impairment testing
At the yearly impairment test of goodwill, or if indications of impairment, judgements are applied to assess to which
extend the CGU, that the goodwill is related to, can generate sufficient positive cash flows in the future to support
the carrying amount of goodwill and the other net assets in the respective entities.
Further details on impairment testing of goodwill are disclosed in note 11.
Trade receivables
Management applies estimates in the assessment of the likelihood that receivables at the balance sheet date will
be received.
Debtor creditworthiness is monitored on an ongoing basis, and we perform an in-depth credit assessment of new
customers and ongoing assessment of existing customers. In recent years, no material debtor losses have been
recorded.
Furthermore, debtor insurance with regard to the existing and new customer portfolios is being reviewed on a
current basis.
Inventories
The uncertainty attaching to estimating inventories is related to any impairment to net realisable value.
Consolidated Financial Statements
29
Pension obligations
Pension obligations are the net liabilities of defined benefit obligations and the dedicated assets adjusted for the
effect of minimum funding and asset ceiling requirements. Plans with a funding surplus are presented as net assets
on the balance sheet. The defined benefit obligations are measured at the present value of expected future
payments to be made in respect of services provided by employees up to the balance sheet date. Plan assets are
measured at fair value. The pension cost charged to the income statement consists of calculated amounts for
vested benefits and interest in addition to settlement gains or losses, etc. Interest on plan assets is calculated with
the same rates as used for discounting the obligations. Actuarial gains/losses are recognised in other
comprehensive income.
Deferred tax assets
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits, together with future tax planning strategies.
The primarily part of the net deferred tax assets are tax losses carried forward. These losses relate to the Parent
Company and do not expire. The losses may not be used to offset taxable income elsewhere in the Group. The tax
value of tax loss carry forwards has been recognised, as it has been considered sufficiently probably that the losses
will be utilised within five years.
Further details on taxes are disclosed in note 10.
Consolidated Financial Statements
Notes
Note 3 - Revenue from contracts with customers
Disaggregated revenue information
Segments
Denmark Rest of Europe Rest of world
Total
tDKK tDKK tDKK tDKK
Type of goods or service
Sale of goods 452.044 2.179.720 558.753 3.190.517
Total revenue from contracts with customers 452.044 2.179.720 558.753 3.190.517
Segments
Denmark
Rest of
Total
tDKK tDKK tDKK tDKK
Type of goods or service
Sale of goods 352.220 1.900.425 634.158 2.886.803
Total revenue from contracts with customers 352.220 1.900.425 634.158 2.886.803
Performance obligations
Sale of goods:
Information about the Group's performance obligations are summarised below:
The performance obligation is satisfied upon delivery and payment is generally due within 30 to 75 days from
delivery. Some contracts provide customers with a right of return and volume rebates which give rise to variable
consideration subject to constraint.
Set out below is the disaggregation of the Group's revenue from contracts with customers:
Trade receivables are non-interest bearing and are generally on terms of 30 to 75 days.
For the year ended 31 December 2021
For the year ended 31 December 2020
30
Consolidated Financial Statements
Notes
2021 2020
1/1 - 31/12 1/1 - 31/12
tDKK tDKK
Note 4 - Costs
Cost of sales:
Cost of goods sold
-1.937.097 -1.823.603
Inventory impairments
-31.663 -34.377
Reversed inventory impairments
21.868 21.276
Total cost of sales
-1.946.892 -1.836.704
Staff costs:
Wages and salaries
-535.104 -486.341
Defined contribution pension plans
-10.196 -13.714
Defined benefit pension plans
-18.583 -14.807
Other social security costs
-47.644 -43.656
Share-based payment
-3.532 -2.461
Total staff costs
-615.059 -560.979
Staff costs are recognised as follows:
Production
-459.533 -409.686
Distribution
-59.972 -58.062
Administration
-95.554 -93.231
Staff costs recognised in the income statement
-615.059 -560.979
Average number of employees
Determination of remuneration to the Board of Directors and the Executive Board
Staff costs to the Board of Directors and the Executive Board of tDKK 7,344 (2020 tDKK 6,732), includes share-
based payment of tDKK 1,495 (2020 tDKK 1,201).
31
Consolidated Financial Statements
32
Share-based payments
Executive Management and senior managers in GPV are covered by the parent company Schouw & Co.'s share option program.
The program entitles participants to acquire shares in Schou w & Co. at a price based on the officially quoted price at the time for
granting (2021: DKK 666,40) plus a premium (2021 allocation:
2%) from the date of grant until the date of exercise. The exercise
price is adjusted less ordinary dividends, which, however, cannot exceed the accrued premium.
The costs related to the program are calculated according to "Black & Scholes" and are expensed as staff costs linearly over the
period of the option and settled to the parent company.
OUTSTANDING OPTIONS
Executive
management
Others
Total
Average
exercise
price in
DKK (1)
Fair
value
(DKK)
per
option (2)
Total fair
value in
DKK (2)
Exercisable
from
Exercisable
until
Granted in 2017
20.000
14.000
34.000
671,93
68,45
2.327
March 2020
March 2021
Granted in 2018
20.000
18.000
38.000
705,58
58,51
2.223
March
2021
March
2022
Granted in 2019
20.000
20.000
40.000
574,35
71,47
2.859
March 2022
March 2023
Granted in 2020
20.000
32.000
52.000
523,42
44,10
2.293
March
2023
March
2024
Total outstanding options at
December 31
st
2020
80.000
84.000
164.000
Granted in 2021
20.000
32.000
52.000
678,19
125,37
6.519
March 2024
March 2025
Lapsed (from 2017 grant)
-20.000
-14.000
-34.000
Total outstanding options at
31 December 2021
80.000
102.000
182.000
(1) exercised after 4 years (at the latest possible date)
(2) at the date of grant
In 2021 no options are exercised.
Fair value assumptions:
2021
grants
2020
grants
2019 grants
2018 grants
Expected volatility
31,58%
22,21%
29,23%
21,10%
Expected term
49 mo.
48 mo.
48 mo.
48 mo.
Expected dividend per share
14 DKK
13 DKK
13 DKK
12 DKK
Risk-free interest rate
-0,54%
-0,97%
-0,52%
-0,38%
The expected volatility is calculated as 12 months' historical volatility based on average prices. If the option holders have not exercised their share
options within the specified period, the share options will lapse without any compensation to the holders. Exercise of the share options is contingent
on the holder being in continuing employment during the above-mentioned periods. If the holder leaves the company before a share option vests, the
holder may in some cases have a right to exercise the share option early during a four-week period following Schouw & Co.'s next stock
announcement. In the event of early exercise the number of share options will be reduced proportionally.
Consolidated Financial Statements
Notes
2021
2020
1/1 - 31/12 1/1 - 31/12
tDKK tDKK
Note 5 - Fees to auditors appointed by the general meeting
Audit fees
-2.322 -2.020
Fees for other services
-251 -525
Total fee
-2.573 -2.545
Note 6 - Other operating income and expenses
Gains on the disposal of property, plant and equipment and intangible assets
331 1.818
Other operating income
2.836 4.517
Total other operating income
3.167 6.335
Losses on the disposal of property, plant and equipment and intangible assets
-917 -1.676
Other operating expenses
-1.107 -4
Total other operating expenses
-2.024 -1.680
Note 7 - Depreciation, amortisation and impairment losses
Depreciation is recognised in the income statement as follows:
Cost of sales
-87.899 -93.794
Distribution costs
-13.501 -13.716
Administrative expenses
-12.027 -14.781
Total depreciation, amortisation and impairment losses
-113.427 -122.291
Note 8 - Financial income
Interest income
0 38
Exchange rate adjustments
18.856 38.163
Other financial income
615 768
Total financial income
19.471 38.969
Note 9 - Financial expenses
Interest expense
-2.707 -3.040
Interests on loans from ultimate parent
-17.417 -20.818
Exchange rate adjustments
-11.975 -46.232
Other financial expenses
-1.298 -287
Total financial expenses
-33.397 -70.377
33
Consolidated Financial Statements
Notes
2021
2020
1/1 - 31/12 1/1 - 31/12
tDKK tDKK
Note 10 - Tax on the profit for the year
Tax for the year is composed as follows:
Tax on the profit for the year
-20.557 -17.707
Tax on other comprehensive income
-8.812 2.528
Tax on the profit for the year has been calculated as follows:
Current tax
-24.498 -24.233
Deferred tax
7.024 6.526
Adjustment of prior-year tax charge
-3.083 0
-20.557 -17.707
Effective tax rate:
Calculated 22.0% tax of the profit for the year
-47.288 -25.589
Adjustment of calculated tax in foreign subsidiaries relative to 22%
23.087 0
Adjustment on deferred tax assets
6.650 4.071
Non-deductible costs and non-taxable income
162 817
Adjustment of prior-year tax charge
-3.168 2.994
Recognised tax income
-20.557 -17.707
Effective tax rate
9,6% 15,3%
Deferred tax asset
Intangible assets
-37.942 -39.056
Property, plant and equipment
15.922 11.917
Inventories
3.388 3.933
Receivables
-7.294 -11.199
Equity
-6.608 2.500
Provisions
4.213 30.647
Liabilities including provisions
28.305 -3.959
Tax losses carried forward
4.820 13.527
4.804 8.310
Deferred tax not recognised
40.758 48.291
45.562 56.601
Deferred tax is recognised in the balance sheet as follows:
Deferred tax (asset)
47.861 48.157
Deferred tax (liability)
-43.057 -39.847
Net deferred tax at 31 December
4.804 8.310
The tax value of tax loss carry forwards that may be carried forward for an unlimited period has been recognised
as it has been considered sufficiently probably according to the budgets, and the losses is expected to be utilised
within three to five years.
34
Consolidated Financial Statements
Notes
Note 11 - Intangible assets
tDKK
Goodwill
Development
projects in
progress
Other
intangible
assets
Total
Cost at Jan 1, 2021
173.986 5.884 272.648 452.518
Foreign exchange adjustment
7.384 -1 11.467 18.850
Additions - by purchase
0 4.687 437 5.124
Disposals
0 0 -137 -137
Cost at Dec 31, 2021
181.370 10.570 284.415 476.355
Amortisation and impairment at Jan 1, 2021
0 0 40.049 40.049
Foreign exchange adjustment
0 0 2.162 2.162
Amortisation
0 0 16.333 16.333
Amortisation and impairment of disposed assets
0 0 -104 -104
Amortisation and impairment at Dec 31, 2021
0 0 58.440 58.440
Carrying amount at Dec 31, 2021
181.370 10.570 225.975 417.915
Amortised over (years)
5-20
Cost at Jan 1, 2020
173.576 0 271.475 445.051
Foreign exchange adjustment
410 -3 585 992
Additions - by purchase
0 5.887 588 6.475
Cost at Dec 31, 2020
173.986 5.884 272.648 452.518
Amortisation and impairment at Jan 1, 2020
0 0 23.398 23.398
Foreign exchange adjustment
0 0 -126 -126
Amortisation
0 0 16.777 16.777
Amortisation and impairment at Dec 31, 2020
0 0 40.049 40.049
Carrying amount at Dec 31, 2020
173.986 0 232.599 412.469
Amortised over (years)
5-20
35
Consolidated Financial Statements
36
Notes
11. Intangible assets
Goodwill
The Management of GPV Group has tested the value in use of the carrying amount against goodwill in the group
companies. In the tests performed, the Management has estimated the expected free cash flow for a five-year
budget - and forecast period of the years 2022-2026. The free cash flow after tax has been applied to a discounted
cash flow model (the “value in use” principle) for the purpose of assessing each company’s value which
subsequently is compared against the carrying amount recognised in the GPV Group consolidated financial
statements. As of 31 December 2021, GPV Group has recognised goodwill at a total value of DKKm 181 (2020:
DKKm 174) where DKKm 10 are allocated to BHE and DKKm 171 are allocated to GPV DACH Group.
The required rate of return is based on a WACC consisting of a 10-year unit bond plus a premium reflecting the
industry/geography specific risks, illiquidity premium and capital structure. The rate of growth used to extrapolate
company cash flow is in the terminal period was fixed at 1,5%, a rate not expected to exceed the long-term inflation
rate.
Goodwill is ascribed to purchase of the BHE company in 2017 and the GPV DACH Group in 2018. BHE is fully
integrated in to the GPV Group, and is impairment tested based on the GPV group CGU.
The estimates are based on a bottom-up-forecasts, the expected sales from our biggest customers and new
revenue. The WACC after tax used is 8,0 for GPV Group and 7,8% for GPV DACH Group. The sensitivity analysis
for EBIT margin allows a decrease of 1-4pp and for the WACC the analysis allows an increase of 1-4pp. The
Management deems therefore that no impairment is need on the goodwill for GPV Group or GPV DACH Group.
Consolidated Financial Statements
Notes
Note 12 - Property, plant and equipment
tDKK
Land and
buildings
Plant and
machinery
Other
fixtures,
tools and
equipment
Assets
under con-
struction
Total
Cost at Jan 1, 2021
231.450 459.604 61.856 55.924 808.834
Foreign exchange adjustment
-4.090 -1.303 -136 -750 -6.279
Additions
957 62.814 4.529 20.003 88.303
Disposals
-188 -5.301 -3.695 -9.680 -18.864
Transferred/reclassified
0 3.819 676 -4.495 0
Cost at Dec 31, 2021
228.129 519.633 63.230 61.002 871.994
Depreciation at Jan 1, 2021
46.893 248.989 48.730 106 344.718
Foreign exchange adjustment
-695 -1.457 -212 0 -2.364
Reversal of impairment
0 -2.246 0 0 -2.246
Depreciation
8.737 54.220 5.577 0 68.534
Depreciation of disposed assets
-96 -3.966 -3.639 0 -7.701
Depreciation at Dec 31, 2021
54.839 295.540 50.456 106 400.941
Carrying amount at Dec 31, 2021
173.290 224.093 12.774 60.896 471.053
Depreciated over (years)
10-25 5-10 3-8
Cost at Jan 1, 2020
252.428 460.043 63.853 47.889 824.213
Foreign exchange adjustment
-21.239 -20.689 -2.996 -4.178 -49.102
Additions
221 25.712 2.204 13.675 41.812
Disposals
0 -6.391 -1.698 0 -8.089
Transferred/reclassified
40 929 493 -1.462 0
Cost at Dec 31, 2020
231.450 459.604 61.856 55.924 808.834
Depreciation at Jan 1, 2020
41.020 212.747 44.885 106 298.758
Foreign exchange adjustment
-3.346 -11.957 -2.346 0 -17.649
Impairment
0 2.273 522 0 2.795
Depreciation
9.219 52.734 6.418 0 68.371
Depreciation of disposed assets
0 -6.360 -1.197 0 -7.557
Transferred/reclassified
0 -448 448 0 0
Depreciation at Dec 31, 2020
46.893 248.989 48.730 106 344.718
Carrying amount at Dec 31, 2020
184.557 210.615 13.126 55.818 464.116
Depreciated over (years)
10-25 5-10 3-8
37
Consolidated Financial Statements
Notes
Note 13 - Lease assets
tDKK
Property
Cars
Other
assets
Total
Cost at Jan 1, 2021
151.486 7.494 3.278 162.258
Foreign exchange adjustment
2.869 -23 -5 2.841
Additions
7.079 2.917 245 10.241
Disposals
-5.490 -2.009 -519 -8.018
Cost at Dec 31, 2021
155.944 8.379 2.999 167.322
Amortisation and impairment at Jan 1, 2021
59.269 3.300 1.592 64.161
Foreign exchange adjustment
1.687 0 26 1.713
Reversal of impairment
-829 0 0 -829
Amortisation
28.999 2.051 584 31.634
Amortisation and impairment of disposed assets
-3.691 -1.622 -519 -5.832
Amortisation and impairment at Dec 31, 2021
85.435 3.729 1.683 90.847
Carrying amount at Dec 31, 2021
70.509 4.650 1.316 76.475
Lease agreement not recognised in the balance sheet
Service
Small value
assets
Short term
leases
Total
Due for payment within 1 year
2.856 612 104 3.572
Due for payment within >1-5 years
1.050 1.185 0 2.235
Due for payment after 5 years
0 211 0 211
Total commitments of service / small value / short
term leases at Dec 31, 2021
3.906 2.008 104 6.018
Recognised in the profit and loss statement in 2021
Service
Small value
assets
Short term
leases
Total
Expensed in the year
4.273 344 281 4.898
There has not been any COVID-19 related rent concessions in 2021
38
Consolidated Financial Statements
Notes
Note 13 - Lease assets
tDKK
Property
Cars
Other
assets
Total
Cost at Jan 1, 2020
148.502 6.371 1.936 156.809
Foreign exchange adjustment
-1.114 -153 -43 -1.310
Additions
6.331 2.892 1.385 10.608
Disposals
-2.233 -1.616 0 -3.849
Cost at Dec 31, 2020
151.486 7.494 3.278 162.258
Amortisation and impairment at Jan 1, 2020
29.336 2.233 777 32.346
Foreign exchange adjustment
-598 -58 -9 -665
Impairment
1.897 0 0 1.897
Amortisation
29.204 2.423 824 32.451
Amortisation and impairment of disposed assets
-570 -1.298 0 -1.868
Amortisation and impairment at Dec 31, 2020
59.269 3.300 1.592 64.161
Carrying amount at Dec 31, 2020
92.217 4.194 1.686 98.097
39
Consolidated Financial Statements
Notes
2021
2020
Dec 31 Dec 31
tDKK tDKK
Note 14 - Inventories
Raw materials and consumables 1.024.050 441.320
Work in progress 269.706 148.626
Finished goods and goods for resale 82.450 85.574
Inventories total at the lower of cost and net realisable value 1.376.206 675.520
Cost of inventories for which impairment losses have been recognised 242.718 194.753
Accumulated impairment losses on inventories -102.084 -91.909
Net sales value 140.634 102.844
Note 15 - Receivables
Receivables from ultimate parent company
74.712 72.398
Trade receivables
547.989 400.207
Other receivables
36.269 26.901
Prepayments
13.258 9.161
Receivables in total
672.228 508.667
Trade receivables can be specified as follows:
2021 Not due 1-30 days 31-90 days >91 days Total
Trade receivables before allowance
466.074 73.534 11.126 5.315 556.049
Impairment losses on trade receivables
0 0 -4.400 -3.660 -8.060
Trade receivables in total
466.074 73.534 6.726 1.655 547.989
Impairment percentage
0,0% 0,0% 39,5% 68,9% 1,4%
2020 Not due 1-30 days 31-90 days >91 days Total
Trade receivables before allowance
317.258 61.736 20.220 6.964 406.178
Impairment losses on trade receivables
0 -239 -470 -5.262 -5.971
Trade receivables net
317.258 61.497 19.750 1.702 400.207
Impairment percentage
0,0% 0,4% 2,3% 75,6% 1,5%
Due between (tDKK)
Due between (tDKK)
During 2021, tDKK 31,663 (2020: tDKK 32,737) was recognised as an expense for inventories carried at net
realisable value. This is recognised in cost of sales.
40
Consolidated Financial Statements
Notes
2021
2020
Dec 31 Dec 31
tDKK tDKK
Note 16 - Equity
The share capital consist of 2,500 shares of each DKK 20,000 50.000 50.000
Aktieselskabet Schouw & Co., Aarhus, Denmark
2021 2020
Dec 31 Dec 31
tDKK tDKK
Note 17 - Credit institutions and borrowings
Non-current borrowings
Non-current debt to the ultimate parent company
349.511 349.722
Credit institutions
58.418 0
Other liabilities
53.997 81.813
Total credit institutions and borrowings
461.926 431.535
Current borrowings
Bank loans
13.501 25
Lease liabilities
31.988 30.781
Debt to the ultimate parent company
529.511 367.701
Total current borrowings
575.000 398.507
Total borrowings
1.036.926 830.042
Nominal value
1.036.926 830.042
Maturity of non-current and current borrowings
Less than one year
575.000 398.507
Between one and five years
458.164 426.128
More than five years
3.762 5.407
Total maturity of non-current and current borrowings
1.036.926 830.042
GPV International A/S' borrowings are mainly in DKK, EUR and THB and with floating interest rates. The fair value
of the floating rate loans approximates the carrying amount.
The shares have not been divided into classes.
The Company has registered the following shareholder to hold 100 % of the voting capital or of the nominal value
of the Company:
Proposed dividends for the year is tDKK 100,000 (2020: tDKK 5,000), equivalent to DKK 40,000 per share.
Proposed dividends are showed in a separated column in the equity statement (page 18) until the Annual General
Meeting approval.
41
Consolidated Financial Statements
Notes
Note 17 - Credit institutions and borrowings
Capital gain
(loss)
recognised in
equity
Maximum
number of
months to
expiry
Hedging agreements regarding future transaction recognised in equity
Currency hedging
-2.761 50
Hedging agreements before tax
-2.761
Tax on hedging agreements
0
Hedging agreements after tax
-2.761
Capital gain
(loss)
recognised in
equity
Maximum
number of
months to
expiry
Hedging agreements regarding future transaction recognised in equity
Currency hedging
0 0
Hedging agreements before tax
0
Tax on hedging agreements
0
Hedging agreements after tax
0
2021 2020
Dec 31 Dec 31
tDKK tDKK
Note 18 - Other short-term payables
VAT and duties
8.930 18.563
Wages and salaries, personal income taxes, social security costs, etc., payable
53.549 53.373
Holiday pay obligation
13.519 9.742
Current provisions
16.164 4.346
Other costs payable
83.724 57.706
Total other short-term payables
175.886 143.730
2021 (tDKK)
2020 (tDKK)
42
Consolidated Financial Statements
Notes
Liquidity risk
Interest rate risk
Currency risk
Note 19 - Financial risks
GPV Group is predominately financed by resources of the parent company Schouw & Co.
The parent company’s source of financing is primarily composed of a syndicated banking facility, which in
December 2020 was refinanced with a total facility framework of DKK 3,275 million. The facility is for a three-year
period with the possibility of a one-year extension after year one and two. In connection with the refinancing of the
banking facility, the previous banking consortium, consisting of Danske Bank, DNB and Nordea, was expanded
with the international bank Hong Kong & Shanghai Banking Corporation (HSBC). The first extension option was
utilized in December 2021.
In addition, in April 2019, Schouw & Co. issued a Schuldschein issue totaling EUR 136 million, (DKK 1,011 million)
with expiration in 2024 (80%) and 2026 (20%), and in December 2021, a facility was established for a tota of DKK
400 million with Nordic Investment Bank. The facility is for a seven-year periode and issued for specific capacity-
and development investments in Denmark.
In considerable extent, the interest-bearing assets and liabilities are exposed to interest risk. In the Parent
Company all interest-bearing assets and liabilities is financed though the ultimate parent company Schouw & Co.
A/S and at both fixed and floating rates.
GPV actively monitors and manages interest rate and foreign exchange risks with the purpose of minimizing
overall risks. GPV Group does not engage in any speculation in financial instruments.
The primary exposure for GPV is related to unrealised deviations in the valuation of equity of our subsidiaries in
especially Thailand (THB), Sri Lanka (CHF) and Switzerland (CHF).
A 5% depreciation of each currency to which the entities in the Group has significant exposure based on the
entities functional currency would have a positive impact on profit (loss) for the year at approximately tDKK 13,151
(2020: tDKK 5,079). These numbers are based on the balance sheet amounts in foreign currencies in the entities
per December 31.
43
Consolidated Financial Statements
Notes
Currency, tDKK
Securities
and cash/
equivalents
Receivables Debt
Net position
before
hedging
Hedged by
financial
instruments
Net position
after hedging
EUR/DKK 0 35.412 -378.638 -343.226 0 -343.226
USD/DKK 0 25.394 -61.689 -36.295 0 -36.295
NOK/DKK 0 50 -281 -231 0 -231
EUR/CHF 11.063 82.858 -51.790 42.131 0 42.131
EUR/CNY 2.397 0 -15 2.382 0 2.382
USD/CHF 7.265 74.225 -66.320 15.170 0 15.170
USD/CNY 27.797 0 -2 27.795 0 27.795
USD/EUR 1 0 -17.458 -17.457 0 -17.457
DKK/THB 1.516 6.215 -8.720 -989 0 -989
EUR/THB 8.373 96.344 -36.206 68.511 2.774 71.285
USD/THB 5.286 127.766 -170.380 -37.328 0 -37.328
USD/MXN 2.121 0 0 2.121 0 2.121
Other 3.713 13.187 -5.286 11.615 0 11.615
69.532 461.451 -796.785 -265.801 2.774 -263.028
Currency, tDKK
Securities
and cash/
equivalents
Receivables Debt
Net position
before
hedging
Hedged by
financial
instruments
Net position
after hedging
EUR/DKK 1 31.136 -366.565 -335.428 0 -335.428
USD/DKK 0 9.454 -20.137 -10.683 0 -10.683
NOK/DKK 0 0 -375 -375 0 -375
EUR/CHF 24.939 61.454 -39.298 47.095 0 47.095
EUR/CNY 16.595 2.034 -1.647 16.982 0 16.982
USD/CHF 13.961 93.058 -27.885 79.134 0 79.134
USD/CNY 14.037 4.422 -3.768 14.691 0 14.691
USD/EUR 0 125 -7.029 -6.904 0 -6.904
DKK/THB 2.345 5.365 -3.666 4.044 0 4.044
EUR/THB 18.026 50.093 -21.710 46.409 0 46.409
USD/THB 21.496 63.710 -46.945 38.261 0 38.261
USD/MXN 1.220 0 0 1.220 0 1.220
Other 2.518 4.520 -3.063 3.975 0 3.975
115.138 325.371 -542.088 -101.579 0 -101.579
For trade receivables and payables as well as other receivables and payables the fair value approximates the
carrying amount due to the short term nature of these balances.
The Group's foreign exchange risks recognised in the balance sheet at December 31, 2021
The group's foreign exchange risks recognised in the balance sheet at December 31, 2020
Note 19 - Financial risks
44
Consolidated Financial Statements
Note 20 - Pensions and other post-employment benefit plans
Participants are insured against the financial consequences of retirement, disability and death. The pension plans
guarantee a minimum interest credit and fixed conversion rates at retirement. Contributions are paid by both the
employee and the employer. The plans must be fully funded. In case of underfunding, recovery measures must be
taken, such as additional financing from the employer or from the employer and employees, reduction of benefits
or a combination of both. The pension plans include a risk-sharing element between GPV Switzerland SA and the
plan participants.
The latest actuarial assessments of pension liabilities and assets in Switzerland have been made by Prevanto AG.
The asset valuations are based on their composition and investments returns delivered by the pension
foundations. The present value of the scheme's liabilities and the related pension costs relating to the current and
previous financial years have been calculated using the Projected Unit Credit Method.
The principal assumptions used in determining pension and post-employment medical benefit obligations for the
Group’s plans are shown below:
The Groups Danish pension obligations are covered by insurance. For employees in GPV Switzerland SA the
company has two defined benefit pension plans (funded). The defined benefit pension plans for Swiss employees
require contributions to be made to separately administered funds. The obligation is calculated actuarially at
present value at the balance sheet date.
These two plans are governed by the employment laws of Switzerland. The level of benefits provided depends on
the member’s and the employer's annual contributions and the annuity factor at retirement age. The funds have
the legal form of a foundation and they are governed by the Board of Trustees, which consists of an equal number
of employer and employee representatives. The Board of Trustees is responsible for the administration of the plan
assets and for the definition of the investment strategy.
Each year, the Board of Trustees reviews the level of funding in the Euroland pension plan as required by
Euroland’s employment legislation. Such a review includes the asset-liability matching strategy and investment risk
management policy. This includes employing the use of annuities and longevity swaps to manage the risks. The
Board of Trustees decides its contribution based on the results of this annual review. Generally, it aims to have a
portfolio mix of a combined 40% in equity and property and 60% in debt instruments. Euroland’s employment
legislation requires the Group to clear any plan deficit (based on a valuation performed in accordance with the
regulations in Euroland) over a period of no more than five years after the period in which the deficit arises. The
Board of Trustees aims to keep annual contributions relatively stable at a level such that no plan deficits (based on
valuation performed in accordance with the regulations in Euroland) will arise.
The pension plans are exposed to Switzerland’s inflation, interest rate risks and changes in the life expectancy for
pensioners. As the plan assets include significant investments in Swiss equities. 20% of the assets are invested in
the 75 largest shares in the Swiss Performance Index (SPI), 30% are comprises in foreign shares and 30% are
invested in real estate portfolio comprises directly held residential properties in Switzerland and commercial
properties in Germany.
Notes
45
Consolidated Financial Statements
Note 20 - Pensions and other post-employment benefit plans
Notes
2021 2020
Dec 31 Dec 31
tDKK tDKK
Principal assumptions
Discount rate 0,30% 0,15%
Mortality table BVG 2020 GT BVG 2015 GT
Future salary increase 1% 1%
Reconciliation of defined benefit obligation
Present value of defined benefit obligation at Jan 1, 2021 -381.363 -363.741
Current service cost (employer) -8.731 -8.149
Employees' contributions -5.586 -5.449
Interest expense on defined benefit obligation -597 -1.088
Past service cost, curtailments, settlements, plan amendments 0 4.801
Benefits paid (incl. benefits paid directly by employer) 9.883 12.675
Experience gains (losses) on defined benefit obligation -994 -4.333
Actuarial gains (losses) arising from change in demographic assumptions 18.434 0
Actuarial gains (losses) arising from change in financial assumptions 8.386 -15.168
Currency gains (losses) -17.146 -911
Present value of defined benefit obligation at Dec 31, 2021 -377.714 -381.363
Reconciliation of fair value of plan assets
Fair value of plan assets at Jan 1, 2021 289.630 287.938
Interest income on plan assets 453 861
Employees' contributions 5.586 5.449
Employer's contributions (expected for following year) 5.586 5.456
Benefits paid by fund -9.883 -12.675
Administration cost (excluding asset management cost) -209 -241
Return on plan assets excl. interest income 26.281 2.122
Currency gains (losses) 13.022 721
Fair value of plan assets at Dec 31, 2021 330.466 289.631
Defined benefit obligations for Swiss employees 47.248 91.732
Other defined benefit obligations 14.605 14.550
Total 61.853 106.282
46
Consolidated Financial Statements
Note 20 - Pensions and other post-employment benefit plans
Notes
2021 2020
Dec 31
Dec 31
tDKK tDKK
Costs are includeded in the following accounts
Cost of sales 5.723 2.257
Distribution costs 1.465 633
Administrative expenses 1.355 695
8.543 3.585
Aggregation of assets
Cash and cash equivalents 30.680 26.203
Debt instruments - Fair value level 1 49.604 40.945
Equity instruments - Fair value level 1 138.918 126.354
Real estate located in Switzerland - Fair value level 3 95.787 83.419
Other 15.477 12.709
330.466 289.630
Sensitivities
Decrease of discount rate -0.5%
Effect on defined benefit obligation -29.044 -30.956
Effect on service cost -14.986 -15.216
Increase of discount rate +0.5%
Effect on defined benefit obligation 25.863 29.035
Effect on service cost -12.733 -12.723
Decrease of salary increases -0.5%
Effect on defined benefit obligation 2.188 3.417
Effect on service cost -13.590 -13.667
Increase of salary increases +0.5%
Effect on defined benefit obligation -2.282 -1.770
Effect on service cost -13.986 -14.114
The expected payments or contributions to the defined benefit plan during the next year amounts to tDKK 8,436.
The average duration of the defined benefit plan obligation at the end of the reporting period is 15.9 years (2020,
17.2 years).
A quantitative sensitivity analysis for significant assumptions as shown below:
The sensitivity analyses above have been determined based on a method that extrapolates the impact on the
defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the
reporting period. The sensitivity analyses are based on a change in a significant assumption, keeping all other
assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined
benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another.
47
Consolidated Financial Statements
Notes
Note 21 - Collaterals and Contingent liabilities
Collaterals
Contingent liabilities
2021 2020
Dec 31 Dec 31
tDKK tDKK
Note 22 - Cash flow changes in net working capital
Change in inventories
-697.813 21.630
Change in receivables
-156.496 -44.200
Change in trade payables and other payables
398.238 47.764
Cash flow changes in net working capital in total
-456.071 25.194
GPV Group is predominately financed by resources of the parent company Schouw & Co. as well as a number of
committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility, which in
December 2020 was refinanced with a total facility framework of DKK 3,275 million. The facility is for a three-year
period with the possibility of a one-year extension after year one and two. In connection with the refinancing of the
banking facility, the previous banking consortium, consisting of Danske Bank, DNB and Nordea, was expanded
with the international bank Hong Kong & Shanghai Banking Corporation (HSBC). The first extension option was
utilized in December 2021.
In addition, in April 2019, Schouw & Co. issued a Schuldschein issue totaling EUR 136 million, (DKK 1,011 million)
with expiration in 2024 (80%) and 2026 (20%), and in December 2021, a facility was established for a tota of DKK
400 million with Nordic Investment Bank. The facility is for a seven-year periode and issued for specific capacity-
and development investments in Denmark.
GPV Group, like other major subsidiaries in the Schouw & Co. Group, co-guarantees the aforementioned facilities
totaling DKK 4.686 million, where of DKK 1,994 million is utilized. In addition a number of other smaller facilities
totaling DKK 136 million established with the Schouw & Co. Group's global banker HSBC, where of DKK 92.1
million is utilized.
The Company is jointly taxed with the Danish consolidated companies of the Schouw & Co. According to the joint
taxation provisions of the Danish Corporation Tax Act, the Company is therefore liable for income taxes etc. for the
jointly taxed companies and also for obligations, if any, relating to the withholding of tax on interest, royalties and
dividends for these companies. Schouw & Co. serves as the administration company in a Danish joint taxation
agreement.
48
Consolidated Financial Statements
Notes
2021
2020
Dec 31 Dec 31
tDKK tDKK
Note 23 - Related parties
Sales of goods and services to related companies
0 0
Purchase of goods and services from related parties
0 -34
Management fee to ultimate parent company
-1.800 -1.750
Interest Income to ultimate parent company
0 38
Interest expenses to ultimate parent company
-17.417 -20.818
Receivables from ultimate parent company
74.712 72.398
Receivables from related companies
0 0
Payables to ultimate parent company
879.022 717.423
Payables to related companies
0 0
Note 24 - Events after the balance sheet
No material events have occured after the end of the financial year.
Note 25 - Standards issued but not yet effective
IASB has on the time of the publication of this annual report released several new accountings standards and
other pronouncements that are not applicable to GPV Group in 2021:
Amendment to IAS 1, IAS 8, IAS 12, IAS 16, IAS 37, IFRS 3, IFRS 16, IFRS 17 and annual improvement 2018-
2020 on IFRS 1, IFRS 9, IAS 41 and IFRS 16
GPV Group will disclose these new accountings standards and pronouncements as they become applicable to the
group according to EU’s dates of application. Our assessment concludes that none of the above accounting
standards and pronouncements will affect the recognition and measurement in GPV Group.
GPV International A/S is included in the consolidated financial statements of Aktieselskabet Schouw & Co.,
Aarhus, Denmark.
GPV International A/S’ related parties with controlling influence comprise the company’s shareholders, the
Supervisory Board, the Managing Board, as well as relatives of these persons. Related parties also comprise
companies in which the individuals have significant influence.
GPV International A/S trades on normal market conditions with companies in which the same individuals have
controlling influence.
49
Parent Company
Parent financial statements
Income statement 2021 2020
1/1 - 31/12 1/1 - 31/12
Notes
tDKK tDKK
3 Revenue 462.524 395.181
4,6 Cost of sales -424.607 -376.925
Gross profit 37.917 18.256
5 Other operating income 109.621 72.709
4,6 Distribution costs -19.560 -16.739
4,6 Administrative expenses -79.294 -58.438
5 Other operating expenses -24.578 -10.848
Operating profit 24.106 4.940
13 Investments in group enterprises 187.532 111.588
7 Financial income 3.041 4.136
8 Financial expenses -16.984 -26.414
Profit before tax 197.695 94.250
9 Tax on profit for the year -3.330 4.117
Profit for the year 194.365 98.367
Attributable to:
Shareholders of GPV International A/S 194.365 98.367
Statement of other comprehensive income
Notes
Profit for the year 194.365 98.367
Other comprehensive income
Exchange differences on translation of foreign operations 28.510 -47.584
Remeasurement of the defined benefit obligation 40.984 -14.879
Value adjustment of hedging instruments recognised during the year -2.761 0
Net other comprehensive income/(loss) to be reclassified to profit
or loss in subsequent periods, net of tax
66.733 -62.463
Total recognised other comprehensive income 261.098 35.904
Attributable to:
Shareholders of GPV International A/S 261.098 35.904
50
Parent Company
Balance sheet 2021 2020
Dec 31 Dec 31
Notes
tDKK tDKK
Assets
Non current assets
Goodwill 9.752 9.752
Development projects in progress 8.557 4.202
Other intangible assets 4.886 5.831
10 Intangible assets 23.195 19.785
Land and buildings 2.190 2.658
Plant and machinery 43.882 50.737
Other fixtures, tools and equipment 3.523 3.132
Assets under construction 1.423 285
11 Property, plant and equipment 51.018 56.812
13 Investments in group enterprises 1.299.353 1.248.063
12 Lease assets 16.237 21.704
9 Deferred tax 25.721 28.945
15 Receivables from related parties 77.305 0
Deposits 5.406 4.056
Other non-current assets 1.424.022 1.302.768
Total non-current assets 1.498.235 1.379.365
Current assets
14 Inventories 239.589 129.884
15 Receivables 285.373 166.948
Income tax 1.933 1.583
Cash and cash equivalents 4 4
Total current assets 526.899 298.419
Total assets 2.025.134 1.677.784
51
Parent Company
Balance sheet 2021 2020
Dec 31 Dec 31
Notes
tDKK tDKK
Liabilities and equity
Equity
16 Share capital 50.000 50.000
Exchange adjustment reserve 3.770 3.770
Reserve for net revaluation according to the equity method 547.309 496.019
Retained earnings 486.904 377.096
Proposed dividend 100.000 5.000
Total equity 1.187.983 931.885
Non-current liabilities
Other liabilities 15.286 25.676
17 Payables to ultimate parent company 349.511 349.722
Total non-current liabilities 364.797 375.398
Current liabilities
17 Current portion of non-current debt 7.284 6.679
17 Payables to ultimate parent company 262.355 263.634
Trade payables 101.331 65.769
Prepayment received from customers 49.449 2.998
18 Other short-term payables 51.935 31.421
Total current liabilities 472.354 370.501
Total liabilities 837.151 745.899
Total liabilities and equity 2.025.134 1.677.784
19 Financial risks
20 Contingent liabilities
21 Changes in working capital
22 Related parties
23 Events after the balance sheet
24 Standards issued but not yet effective
52
Parent Company
Cash flow statement 2021 2020
1/1 - 31/12
1/1 - 31/12
Notes
tDKK tDKK
Profit before tax 197.695 94.250
Adjustment for operating items of a non-cash nature, etc. 1.039 8.184
6 Depreciation and impairment losses 23.800 24.550
Other operating items, net -83 533
Income from investments in group enterprises after tax -187.532 -111.588
7 Financial income -3.041 -4.136
8 Financial expenses 16.984 26.414
Cash flows from operating activities before changes in working
capital
48.862 38.207
21 Changes in working capital -70.066 40.918
Cash flows from operating activities -21.204 79.125
Interest income received 2.900 3.049
Interest expenses paid -13.057 -19.497
Cash flows from ordinary activities -31.361 62.677
Income tax paid -457 659
Cash flows from operating activities -31.818 63.336
Investing activities:
10 Purchase of intangible assets -4.355 -4.202
11 Purchase of property, plant and equipment -8.650 -3.795
Sale of property, plant and equipment 120 578
Additions/disposals of other financial assets -1.350 28
Cash flows from investing activities -14.235 -7.391
Financing activities:
Repayment of non-current liabilities -7.092 -6.812
Increase (repayment) of interest bearing debt to group enterprises -144.142 83.694
Dividend received from group enterprises 202.975 0
Shareholders:
Change in payables to ultimate parent company -688 -132.859
Dividend paid -5.000 0
Cash flows from financing activities 46.053 -55.977
Cash flows for the year 0 -32
Cash and cash equivalents at the beginning of the year 4 36
Cash and cash equivalents at the end of the year 4 4
Cash and cash equivalents at the end of the year are composed of:
Cash 4 4
Cash and cash equivalents at the end of the year 4 4
53
Parent Company
Equity statement
Share
capital
Reserve for
net
revaluation
according to
the equity
method
Exchange
adjustment
reserve
Retained
earnings
Proposed
dividend
Total equity
tDKK tDKK tDKK tDKK tDKK tDKK
Equity at Jan 1, 2021 50.000 496.019 3.770 377.096 5.000 931.885
Other comprehensive income in 2021
Exchange rate adjustment of foreign subsidiaries 0 28.510 0 0 0 28.510
Value adjustment of hedging instruments recognised during the year 0 -2.761 0 0 0 -2.761
Remeasurement of the defined benefit obligation 40.984 0 0 0 40.984
Profit for the year 0 187.532 0 -93.167 100.000 194.365
Total recognised comprehensive income 0 254.265 0 -93.167 100.000 261.098
Transactions with the owners
Capital increase 0 0 0 0 0 0
Dividend distributed 0 -202.975 0 202.975 -5.000 -5.000
Addition/disposal of minority interests 0 0 0 0 0 0
Transactions with the owners for the period 0 -202.975 0 202.975 -5.000 -5.000
Equity at Dec 31, 2021 50.000 547.309 3.770 486.904 100.000 1.187.983
54
Parent Company
Equity statement
Share
capital
Reserve for
net
revaluation
according to
the equity
method
Exchange
adjustment
reserve
Retained
earnings
Proposed
dividend
Total equity
tDKK tDKK tDKK tDKK tDKK tDKK
Equity at Jan 1, 2020 50.000 446.894 3.770 395.317 0 895.981
Other comprehensive income in 2020
Exchange rate adjustment of foreign subsidiaries 0 -47.584 0 0 0 -47.584
Value adjustment of hedging instruments recognised during the year 0 0 0 0 0 0
Remeasurement of the defined benefit obligation -14.879 0 0 0 -14.879
Profit for the year 0 111.588 0 -18.221 5.000 98.367
Total recognised comprehensive income 0 49.125 0 -18.221 5.000 35.904
Transactions with the owners
Capital increase 0 0 0 0 0 0
Dividend distributed 0 0 0 0 0 0
Addition/disposal of minority interests 0 0 0 0 0 0
Transactions with the owners for the period 0 0 0 0 0 0
Equity at Dec 31, 2020 50.000 496.019 3.770 377.096 5.000 931.885
55
Parent Company
56
Notes to the parent financial statements
1. Accounting policies .................................................................................................................................... 57
2. Significant accounting estimates and judgements ..................................................................................... 57
3. Revenue from contracts with customers .................................................................................................... 58
4. Costs .......................................................................................................................................................... 59
5. Other operating income and expenses ...................................................................................................... 60
6. Depreciation, amortisation and impairment losses .................................................................................... 60
7. Financial income ........................................................................................................................................ 60
8. Financial expenses .................................................................................................................................... 60
9. Tax on the profit for the year ...................................................................................................................... 61
10. Intangible assets ...................................................................................................................................... 62
11. Property, plant and equipment ................................................................................................................. 64
12. Lease assets ............................................................................................................................................ 65
13. Investments in group enterprises ............................................................................................................. 67
14. Inventories ................................................................................................................................................ 68
15. Receivables .............................................................................................................................................. 68
16. Equity ....................................................................................................................................................... 69
17. Credit institutions and borrowings ............................................................................................................ 69
18. Other short-term payables ....................................................................................................................... 70
19. Financial risks .......................................................................................................................................... 70
20. Collaterals and Contingent liabilities ........................................................................................................ 71
21. Cash flow changes in net working capital ................................................................................................ 71
22. Related parties ......................................................................................................................................... 72
23. Events after the balance sheet ................................................................................................................ 72
24. Standards issued but not yet effective ..................................................................................................... 72
Parent Company
57
Notes to the parent financial statements
1. Accounting policies
For general information about the Parent Company, GPV International A/S including description of its principal
activities, reference is made to note 1 in the consolidated financial statements.
Basis of preparation
The separate financial statements of the Parent Company have been included in the Annual Report as required by
the Danish Financial Statements Act.
The separate financial statements of the Parent Company for 2021 are presented in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union and Danish disclosure requirements.
The financial statements of the Parent Company are presented in Danish Kroner (DKK) and all values are rounded
to the nearest thousand (tDKK) except when otherwise indicated.
The separate financial statements have been prepared on a historical cost basis.
Financial statements of the Parent Company
The accounting policies of the Parent Company are consistent with those applied in the consolidated financial
statements (refer to note 1 in the consolidated financial statements) with the following exceptions:
Investments in subsidiaries are measured under the equity method.
Investments in subsidiaries are measured at the proportionate share of the enterprises' net asset values calculated
in accordance with the Group's accounting policies minus or plus unrealised intra-group profits and losses and plus
or minus any residual value of positive or negative goodwill determined in accordance with the acquisition method.
Investments in subsidiaries with negative net asset values are measured at DKK 0 (nil), and any amounts owed by
such enterprises are written down if the amount owed is irrecoverable. If the Parent Company has a legal or
constructive obligation to cover a deficit that exceeds the amount owed, the remaining amount is recognised under
provisions.
Net revaluation of investments in subsidiaries is recognised in the reserve for net revaluation in equity under the
equity method to the extent that the carrying amount exceeds cost. Dividends from subsidiaries which are expected
to be adopted before the approval of the annual report of GPV International A/S are not recognised in the reserve
for net revaluation.
On acquisition of subsidiaries, the acquisition method is applied; see consolidated financial statements above.
Reserve for net revaluation according to the equity method
Net revaluation of investments in subsidiaries and associates is recognised at cost in the reserve for net revaluation
according to the equity method. The reserve may be eliminated in case of losses, realisation of investments or a
change in accounting estimates.
The reserve cannot be recognised at a negative amount.
2. Significant accounting estimates and judgements
In connection with the preparation of the parent company financial statements, Management has made accounting
estimates and judgements that affect the assets and liabilities reported at the balance sheet date as well as the
income and expenses reported for the financial period. Management continuously reassesses these estimates and
judgements based on a number of other factors in the given circumstances.
Management assesses that, in respect of the financial reporting for the Parent Company, no accounting estimates
or judgements are made when applying the Parent Company’s accounting policies which are significant to the
financial reporting apart from those disclosed in note 2 to the consolidated financial statements.
Parent Company
Notes
Note 3 - Revenue from contracts with customers
Disaggregated revenue information
Segments
Denmark Rest of Europe Rest of world
Total
tDKK tDKK tDKK tDKK
Type of goods or service
Sale of goods 188.924 180.047 93.553 462.524
Total revenue from contracts with customers 188.924 180.047 93.553 462.524
Segments
Denmark Rest of Europe Rest of world
Total
tDKK tDKK tDKK tDKK
Type of goods or service
Sale of goods 150.603 172.255 72.323 395.181
Total revenue from contracts with customers 150.603 172.255 72.323 395.181
Performance obligations
Sale of goods:
The performance obligation is satisfied upon delivery and payment is generally due within 30 to 75 days from
delivery. Some contracts provide customers with a right of return and volume rebates which give rise to variable
consideration subject to constraint.
Set out below is the disaggregation of the Group's revenue from contracts with customers:
For the year ended 31 December 2021
For the year ended 31 December 2020
Trade receivables are non-interest bearing and are generally on terms of 30 to 75 days.
Information about the Group's performance obligations are summarised below:
58
Parent Company
Notes
2021
2020
1/1 - 31/12 1/1 - 31/12
tDKK tDKK
Note 4 - Costs
Cost of sales:
Cost of goods sold
-419.404 -374.159
Inventory impairments
-5.203 -2.905
Reversed inventory impairments
0 139
Total cost of sales
-424.607 -376.925
Staff costs:
Wages and salaries
-112.958 -101.521
Remuneration to the Board of Directors
-625 -646
Defined contribution pension plans
-7.443 -7.024
Other social security costs
-2.011 -1.779
Share-based payment
-3.532 -2.461
Total staff costs
-126.569 -113.431
Staff costs are recognised as follows:
Production
-75.900 -68.966
Distribution
-10.313 -9.948
Administration
-40.356 -34.600
Staff costs recognised in the income statement
-126.569 -113.514
Average number of employees
231 221
Determination of remuneration to the Board of Directors and the Executive Board
Reference is made to note 4 in the consolidated financial statements.
59
Parent Company
Notes
2021
2020
1/1 - 31/12 1/1 - 31/12
tDKK tDKK
Note 5 - Other operation income and expenses
Gains on the disposal of property, plant and equipment and intangible assets
83 136
Charged to group enterprises
109.538 72.573
Charges from group enterprises
-24.578 -10.179
Losses on the disposal of property, plant and equipment and intangible assets
0 -632
Other losses
0 -37
Total other operating income, net
85.043 61.861
Note 6 - Depreciation, amortisation and impairment losses
Depreciation is recognised in the income statement as follows:
Cost of sales
-19.744 -19.691
Distribution costs
-1.166 -1.160
Administrative expenses
-2.890 -3.699
Total depreciation, amortisation and impairment losses
-23.800 -24.550
Note 7 - Financial income
Interest income
0 1
Interests from group loans
2.900 3.048
Exchange rate adjustments
141 1.087
Total financial income
3.041 4.136
Note 8 - Financial expenses
Interest expense
-588 -744
Interests from group loans
-12.364 -18.755
Exchange rate adjustments
-3.927 -6.917
Other financial expenses
-105 2
Total financial expenses
-16.984 -26.414
60
Parent Company
Notes
2021
2020
1/1 - 31/12 1/1 - 31/12
tDKK tDKK
Note 9 - Tax on the profit for the year
Tax for the year is composed as follows:
Tax on the profit for the year
-3.330 4.117
-3.330 4.117
Tax on the profit for the year has been calculated as follows:
Current tax
-106 578
Deferred tax
-3.224 3.539
-3.330 4.117
Effective tax rate:
Calculated 22.0% tax of the profit for the year
-2.236 3.815
Impairment on deferred tax assets
0 0
Non-deductible costs and non-taxable income
-1.094 302
Recognised tax income
-3.330 4.117
Effective tax rate
1,7% -4,4%
Deferred tax asset
Intangible assets
-1.075 -1.283
Property, plant and equipment
19.273 15.278
Inventories
4.107 2.963
Receivables
198 198
Liabilities other than provisions
762 611
Tax losses carried forward
2.456 11.178
25.721 28.945
Deferred tax not recognised
0 0
25.721 28.945
Deferred tax is recognised in the balance sheet as follows:
Deferred tax (asset)
25.721 28.945
Deferred tax (liability)
0 0
Net deferred tax at 31 December
25.721 28.945
The tax value of tax loss carry forwards that may be carried forward for an unlimited period has been recognised
as it has been considered sufficiently probably according to the budgets, and the losses is aspected to be utilised
within three to five years.
61
Parent Company
Notes
Note 10 - Intangible assets
tDKK
Goodwill
Development
projects in
progress
Other
intangible
assets
Total
Cost at Jan 1, 2021
9.752 4.202 9.451 23.405
Additions - by purchase
0 4.355 0 4.355
Cost at Dec 31, 2021
9.752 8.557 9.451 27.760
Amortisation and impairment at Jan 1, 2021
0 0 3.620 3.620
Amortisation
0 0 945 945
Amortisation and impairment at Dec 31, 2021
0 0 4.565 4.565
Carrying amount at Dec 31, 2021
9.752 8.557 4.886 23.195
Amortised over (years)
10
tDKK
Cost at Jan 1, 2020
9.752 0 9.451 19.203
Additions - by purchase
0 4.202 0 4.202
Cost at Dec 31, 2020
9.752 4.202 9.451 23.405
Amortisation and impairment at Jan 1, 2020
0 0 2.678 2.678
Amortisation
0 0 942 942
Amortisation and impairment at Dec 31, 2020
0 0 3.620 3.620
Carrying amount at Dec 31, 2020
9.752 4.202 5.831 19.785
Amortised over (years)
10
62
Parent Company
63
Notes
10. Intangible assets
Goodwill
The Management of GPV Group has tested the value in use of the carrying amount against goodwill in the group
companies. In the tests performed, the Management has estimated the expected free cash flow for a five-year
budget – and forecast period of the years 2022-2026. The free cash flow after tax has been applied to a discounted
cash flow model (the “value in use” principle) for the purpose of assessing each company’s value which
subsequently is compared against the carrying amount recognised in the GPV Group consolidated financial
statements. As of 31 December 2021, GPV Group has recognised goodwill at a total value of DKKm 10 (2020:
DKKm 10) where the goodwill is allocated to BHE.
The required rate of return is based on a WACC consisting of a 10-year unit bond plus a premium reflecting the
industry/geography specific risks, illiquidity premium and capital structure. The rate of growth used to extrapolate
company cash flow is in the terminal period was fixed at 1,5%, a rate not expected to exceed the long-term inflation
rate.
Goodwill is ascribed to purchase of the BHE company in 2017. BHE is fully integrated in to the GPV Group, and is
impairment tested based on the GPV group CGU.
The estimates are based on a bottom-up-forecasts, the expected sales from our biggest customers and new
revenue. The WACC after tax used is 8,0 for GPV Group. The sensitivity analysis for EBIT margin allows a
decrease of 1-4pp and for the WACC the analysis allows an increase of 1-4pp. The Management deems therefore
that no impairment is need on the goodwill for GPV Group.
Parent Company
Notes
Note 11 - Property, plant and equipment
tDKK
Land and
buildings
Plant and
machinery
Other
fixtures,
tools and
equipment
Assets
under con-
struction
Total
Cost at Jan 1, 2021
9.219 141.343 23.979 285 174.826
Additions
76 7.215 1.443 1.423 10.157
Additions on company acquisitions
0 0 0 0 0
Disposals
0 -220 0 0 -220
Transferred/reclassified
0 285 0 -285 0
Cost at Dec 31, 2021
9.295 148.623 25.422 1.423 184.763
Depreciation at Jan 1, 2021
6.561 90.606 20.847 0 118.014
Foreign exchange adjustment
0 0 0 0 0
Impairment
0 0 0 0 0
Depreciation
544 14.318 1.052 0 15.914
Depreciation of disposed assets
0 -183 0 0 -183
Transferred/reclassified
0 0 0 0 0
Depreciation at Dec 31, 2021
7.105 104.741 21.899 0 133.745
Carrying amount at Dec 31, 2021
2.190 43.882 3.523 1.423 51.018
Depreciated over (years)
10-25 5-10 3-8
tDKK
Cost at Jan 1, 2020
9.053 144.700 23.661 339 177.753
Additions
166 4.054 318 -54 4.484
Disposals
0 -7.411 0 0 -7.411
Cost at Dec 31, 2020
9.219 141.343 23.979 285 174.826
Depreciation at Jan 1, 2020
5.975 82.674 19.121 0 107.770
Impairment
0 0 522 0 522
Depreciation
586 14.269 1.204 0 16.059
Deprecitaion of disposed assets
0 -6.337 0 0 -6.337
Depreciation at December 31, 2020
6.561 90.606 20.847 0 118.014
Carrying amount at Dec 31, 2020
2.658 50.737 3.132 285 56.812
Depreciated over (years)
10-25 5-10 3-8
64
Parent Company
Notes
Note 12 - Lease assets
tDKK
Property Cars
Other
assets
Total
Cost at Jan 1, 2021
32.276 2.700 0 34.976
Additions
402 1.297 0 1.699
Disposals
0 -1.088 0 -1.088
Cost at Dec 31, 2021
32.678 2.909 0 35.587
Amortisation and impairment at Jan 1, 2021
11.973 1.299 0 13.272
Amortisation
6.140 800 0 6.940
0 -862 0 -862
Amortisation and impairment at Dec 31, 2021
18.113 1.237 0 19.350
Carrying amount at Dec 31, 2021
14.565 1.672 0 16.237
Lease agreement not recognised in the balance sheet
Service
Small value
assets
Short term
leases
Total
Due for payment within 1 year
234 0 97 331
Due for payment within >1-5 years
289 0 289
Due for payment after 5 years
0 0 0
Total commitments of service / small
value / short term leases at Dec 31, 2021
523 0 97 620
Recognised in the profit and loss statement in 2021
Service
Small value
assets
Short term
leases
Total
Expensed in the year
240 0 201 441
There has not been any COVID-19 realated rent concessions in 2021
Amortisation and impairment of disposed assets
65
Parent Company
Notes
Note 12 - Lease assets
tDKK
Property Cars
Other
assets
Total
Cost at Jan 1, 2020
32.276 2.216 0 34.492
Additions
0 1.160 0 1.160
Disposals
0 -676 0 -676
Cost at Dec 31, 2020
32.276 2.700 0 34.976
Amortisation and impairment at Jan 1, 2020
5.877 901 0 6.778
Amortisation
6.096 931 0 7.027
0 -533 0 -533
Amortisation and impairment at Dec 31, 2020
11.973 1.299 0 13.272
Carrying amount at Dec 31, 2020
20.303 1.401 0 21.704
Amortisation and impairment of disposed assets
66
Parent Company
Notes
2021
2020
Dec 31 Dec 31
tDKK tDKK
Note 13 - Investments in group enterprises
Cost at January 1
746.218 746.218
Cost at December 31
746.218 746.218
Adjustments at January 1
501.845 452.720
Foreign exchange adjustments
28.510 -47.584
Remeasurement of the defined benefit
40.984 -14.879
Dividend
-202.975 0
Value adjustment of hedging instruments
recognised during the year
-2.761 0
Share of the profit/loss for the year
187.532 111.588
Adjustments at December 31
553.135 501.845
Carrying amount at December 31
1.299.353 1.248.063
Name
Registered Office
Ownership
interest 2021
Ownership
interest 2020
Owned directly by parent company
GPV Asia (Thailand) Co. Ltd.
Thailand, Bangkok
100% 100%
GPV Americas México S.A.P.I de CV
Mexico, Guadalajara
100% 100%
GPV DACH AG Switzerland, Lachen 100% 100%
Owned indirectly by parent company
GPV DACH (Asia) AG Switzerland, Lachen 100% 100%
GPV Switzerland SA Switzerland, Mendrisio 100% 100%
GPV Austria GmbH Austria, Frankenmarkt 100% 100%
GPV Austria Cable GmbH Austria, Frankenmarkt 100% 100%
GPV Slovakia s.r.o
Slovakia, Hlohovec-Sulekovo
100% 100%
GPV Asia (Hong Kong) Ltd. China, Hong Kong 100% 100%
GPV Lanka (Private) Ltd. Sri Lanka, Kochchikade 100% 100%
GPV Zhongshan Co. Ltd China, Zhongshan 100% 100%
GPV Germany GmbH Germany, Hildesheim 100% 100%
GPV Property Solution (private) Limited*) Sri Lanka, Kochchikade 49% 49%
*) GPV International A/S has the majority in voting rights in GPV Property Solution (private) Limited.
67
Parent Company
Notes
2021
2020
Dec 31 Dec 31
tDKK tDKK
Note 14 - Inventories
Raw materials and consumables 184.979 90.544
Work in progress 39.988 25.905
Finished goods and goods for resale 14.622 13.435
Inventories total at the lower of cost and net realisable value 239.589 129.884
Cost of inventories for which impairment losses have been recognised 20.945 17.581
Accumulated impairment losses on inventories -18.669 -13.466
Net sales value 2.276 4.115
Note 15 - Receivables
77.305 0
Receivables from ultimate parent company
0 802
Receivables from group enterprises, current
161.690 87.913
Trade receivables
117.701 73.436
Other receivables
599 506
Prepayments
5.383 4.291
Receivables in total
362.678 166.948
Trade receivables can be specified as follows:
2021 Not due 1-30 days 31-90 days >91 days Total
Trade receivables before allowance
98.626 18.046 1.418 511 118.601
Impairment losses on trade receivables
0 0 -400 -500 -900
Trade receivables in total
98.626 18.046 1.018 11 117.701
Impairment percentage
0,0% 0,0% 28,2% 97,8% 0,8%
2020 Not due 1-30 days 31-90 days >91 days Total
Trade receivables before allowance
60.432 13.196 230 478 74.336
Impairment losses on trade receivables
0 -239 -183 -478 -900
Trade receivables in total
60.432 12.957 47 0 73.436
Impairment percentage
0,0% 1,8% 79,4% 100,0% 1,2%
Due between (tDKK)
Due between (tDKK)
Receivables from group enterprises, non-current
During 2021, tDKK 5,203 (2020: tDKK 2,766) was recognised as an expense for inventories
carried at net realisable value. This is recognised in cost of sales.
68
Parent Company
Notes
2021
2020
Dec 31 Dec 31
tDKK tDKK
Note 16 - Equity
The share capital consist of 2,500 shares of each tDKK 20 50.000 50.000
Aktieselskabet Schouw & Co., Aarhus, Denmark
2021 2020
Dec 31 Dec 31
tDKK tDKK
Note 17 - Credit institutions and borrowings
Non-current borrowings
Payables to ultimate parent company
349.511 349.722
Total credit institutions and borrowings
349.511 349.722
Current borrowings
Payables to the ultimate parent company
262.355 263.634
Total current borrowings
262.355 263.634
Total borrowings
611.866 613.356
Nominal value
611.866 613.356
Maturity of non-current and current
Less than one year
262.355 263.634
Between one and five years
0 349.722
More than five years
349.511 0
Total maturity of non-current and current borrowings
611.866 613.356
The shares have not been divided into classes.
Proposed dividends for the year is tDKK 100,000 (2020: tDKK 5,000), equivalent to tDKK 40 per share. Proposed
dividends are showed in a separated column in the equity statement (page 53) until the Annual General Meeting
approval.
The Company has registered the following shareholder to hold 100 % of the voting capital or of the nominal value
of the Company:
GPV International A/S' borrowings are mainly in DKK and EUR. Non-current borrowing is with fixed interest rate
and current borrowings are with floating interest rates. The fair value of the floating rate loans approximates the
carrying amount.
69
Parent Company
Notes
2021
2020
Dec 31 Dec 31
tDKK tDKK
VAT and duties
11 12
Wages and salaries, personal income taxes, social security costs, etc.,payable
22.806 18.927
Holiday pay obligation
4.580 4.215
Other costs payable
24.538 8.267
51.935 31.421
Liquidity risk
Interest rate risk
Currency risk
Note 18 - Other short-term payables
Total other short-term payables
Note 19 - Financial risk
GPV Group is predominately financed by resources of the parent company Schouw & Co.
The parent company’s source of financing is primarily composed of a syndicated banking facility, which in
December 2020 was refinanced with a total facility framework of DKK 3,275 million. The facility is for a three-
year period with the possibility of a one-year extension after year one and two. In connection with the
refinancing of the banking facility, the previous banking consortium, consisting of Danske Bank, DNB and
Nordea, was expanded with the international bank Hong Kong & Shanghai Banking Corporation (HSBC). The
first extension option was utilized in December 2021.
In addition, in April 2019, Schouw & Co. issued a Schuldschein issue totaling EUR 136 million, (DKK 1,011
million) with expiration in 2024 (80%) and 2026 (20%), and in December 2021, a facility was established for a
tota of DKK 400 million with Nordic Investment Bank. The facility is for a seven-year periode and issued for
specific capacity- and development investments in Denmark.
In considerable extent, the interest-bearing assets and liabilities are exposed to interest risk. In the parent
company all interest-bearing assets and liabilities is financed though the ultimate parent company Schouw &
Co. and at both fixed and floating rates.
GPV actively monitors and manages interest rate and foreign exchange risks with the purpose of minimizing
overall risks. GPV does not engage in any speculation in financial instruments.
The primary exposure for GPV is related to unrealised deviations in the valuation of equity of our subsidiaries in
especially Thailand (THB), Sri Lanka (CHF) amd Switzerland (CHF).
70
Parent Company
Notes
Currency, TDKK
Securities
and cash/
equivalents
Receivables Debt
Net position
before
hedging
Net position
after hedging
EUR / DKK 0 35.412 -378.638 -343.226 -343.226
USD / DKK 0 25.394 -61.689 -36.295 -36.295
Other 0 191 -360 -169 -169
0 60.997 -440.687 -379.690 -379.690
Currency, TDKK
Securities
and cash/
equivalents
Receivables Debt
Net position
before
hedging
Net position
after hedging
EUR / DKK 1 31.136 -366.565 -335.428 -335.428
USD / DKK 0 9.454 -20.137 -10.683 -10.683
Other 1 45 -556 -510 -510
2 40.635 -387.258 -346.621 -346.621
2021 2020
Dec 31 Dec 31
tDKK tDKK
Change in inventories
-114.909 -4.504
Change in receivables
-56.176 35.856
101.019 9.566
-70.066 40.918
Note 19 - Financial risk
Cash flow changes in net working capital in total
Change in trade payables and other payables
Note 20 - Collaterals and Contingent liabilities
Reference is made to note 21 in the consolidated financial statement.
For trade receivables and payables as well as other receivables and payables the fair value approximates the
carrying amount due to the short term nature of these balances.
The company's foreign exchange risks recognised in the balance sheet at 31 December, 2021
The company's foreign exchange risks recognised in the balance sheet at 31 December, 2020
Note 21 - Cash flow changes in net working capital
71
Parent Company
Notes
2021
2020
Dec 31 Dec 31
tDKK tDKK
Note 22 - Related parties
Sales of goods and services to group enterprises
5.491 3.976
Purchase of goods and service from group enterprises
-33.183 -55.141
Charges from group enterprises
-56.391 -10.179
Charged to group enterprises
109.538 72.573
Interest expenses to group enterprises
0 0
Interest income from group enterprises
2.900 3.036
Sales of goods and services to related companies
0 0
Purchase of goods and services from related parties
0 -34
Management fee to ultimate parent company
-1.800 -1.750
Interest income from ultimate parent company
0 12
Interest expenses to ultimate parent company
-12.364 -18.755
Receivables from ultimate parent company
0 802
Receivables from related companies
0 0
Receivables from group enterprises
238.995 87.913
Payables to ultimate parent company
611.866 613.356
Payables to related companies
0 0
Payables to group enterprises
5.314 16.771
Reference is made to note 23 in the consolidated financial statement.
Note 23 - Events after the balance sheet
No material events have occured after the end of the financial year.
Note 24 - Standards issued but not yet effective
Reference is made to note 25 in the consolidated financial statement.
72