Company reg. no.
34 70 30 19
Annual report
1 January - 31 December 2021
The annual report was submitted and approved by the general meeting on 23 March 2022.
Chairman of the meeting
Contents
Page
Reports
Management's report 1
Independent Auditor's Report 2
Management commentary
Company information 5
Management's Review 6
Financial statements 1 January - 31 December 2021
Statement of comprehensive income 7
Statement of financial position 8
Statement of changes in equity 10
Statement of cash flows 11
Accounting policies 12
Notes
18
Notes:
·
To ensure the greatest possible applicability of this document, IAS/IFRS English terminology has been used.
·
Please note that decimal points have not been used in the usual English way. This means that for instance
DKK
146.940 means the amount
of
DKK
146,940, and that 23,5 % means 23.5 %.
Samsung Denm ark Research Center ApS
·
Annual report
2021
Management's report
Managing Director
Board of directors
Samsung Denm ark Research Center ApS
·
Annual report
2021
1
Independent Auditor's Report
Opinion
Basis for Opinion
Statement on Management's Review
Samsung Denm ark Research Center ApS
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Annual report
2021
2
Independent Auditor's Report
Management's Responsibilities for the Financial Statements
Auditor’s Responsibilities for the Audit of the Financial Statements
Samsung Denmark Research Center ApS
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Annual report
2021
3
Independent Auditor's Report
PricewaterhouseCoopers
Statsautorisret Revisionspartnerselskab
CVR no.
Samsung Denmark Research Center ApS
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Annual report
2021
4
Company information
The company
c/o Novi 8
Company reg. no.
Established:
1 September 2012
Domicile:
Financial year:
1 January - 31 December
Board of directors
Joonsuk Kim
Jae Kyun Oh
Rajinder Gawera
Hwanbae Yoo
Managing Director Rajinder Gawera
Auditors PriceW aterhous eCoopers
Parent company
Ultimate parent company
Samsung Denmark Research Center ApS
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Annual report
2021
5
Management's Review
The principal activities of the company
Development in activities and financial matters
The statement of comprehensive income covers the period 1 January to 31 December 2021 and shows a
result of DKK 5.604.802 against a result of DKK 4.751.538 last year. The balance sheet shows equity of
DKK 132.522.152.
Management considers the result for the year to be satisfactory.
With the current global COVID-19 pandemic we have enabled employees to work remotely from home
where possible. There has been minimal impact on our ability to continue with our R&D activities and do
not expect any material impact on the projects we are working on.
Samsung Denmark Research Center ApS
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Annual report
2021
6
Statement of comprehensive income
1 January
-
31 December
All amounts in DKK.
Note
2021 2020
2
Revenue
3
Other external costs
-11.093.806
-9.538.421
Gross profit 68.180.385 57.721.421
4
Staff costs
-58.968.201
-49.249.404
5
Depreciation of tangible and intangible assets
-2.001.876
-2.365.066
Other operating costs
-8.063
-220
Operating profit 7.202.245 6.106.731
6
Financial costs
-12.852
-14.665
Pre-tax net profit or loss 7.189.393 6.092.066
7
Tax of the profit for the year
-1.584.591
-1.340.528
Net profit or loss for the year and total comprehensive
income 5.604.802 4.751.538
Proposed appropriation of net profit:
Transferred to retained earnings
Total allocations and transfers 5.604.802 4.751.538
Samsung Denmark Research Center ApS
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Annual report
2021
7
Statement of financial position
at
31 December
All amounts in DKK.
Assets
Note
2021 2020
Non-current assets
8
Goodwill
9
Property, plants and equipment
10
Lease assets
11
Other receivables
Total non-current assets
Current assets
Receivables from group enterprises
Other receivables
Deferred expenses
Cash and cash equivalents 66.330.221 64.708.223
Total current assets
Total assets 156.973.037 149.801.779
Samsung Denmark Research Center ApS
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Annual report
2021
8
Statement of financial position
at
31 December
All amounts in DKK.
Equity and liabilities
Note
2021 2020
Equity
13
Share capital
14
Share premium account
Retained earnings
Total equity
Liabilities
15
Deferred tax liability
Other non-current payables
Total non-current liabilities 11.155.898 8.514.833
Trade payables
Debt to group enterprises
Other liabilities
Total current liabilities 13.294.987 14.369.596
Total liabilities
Total equity and liabilities 156.973.037 149.801.779
Samsung Denmark Research Center ApS
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9
Statement of changes in equity
All amounts in DKK.
Contributed
capital Share premium
Retained
earnings Total
Equity 1 January 2020 90.000 97.177.412 24.898.400 122.165.812
Retained earnings for the year 0 0 4.751.538 4.751.538
Equity 1 January 2021 90.000 97.177.412 29.649.938 126.917.350
Retained earnings for the year 0 0 5.604.802 5.604.802
Samsung Denmark Research Center ApS
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2021
10
Statement of cash flows
1 January
-
31 December
All amounts in DKK.
Note
2021 2020
Operating profit
Depreciation and other operating costs
16
Change in working capital
-3.416.663
-3.842.821
Cash flows from operating activities before net financials 5.795.521 4.629.196
Interest paid, etc.
-12.852
-14.665
Corporate tax received
Cash flows from operating activities 6.786.815 4.614.531
Purchase of property, plant, and equipment
-5.170.093
-558.142
Sale of property, plant, and equipment
Change in deposits
-24.724
Cash flows from investment activities -5.164.817 -558.142
Repayments of lease debt
-527.923
Cash flow from financing activities 0 -527.923
Change in cash and cash equivalents 1.621.998 3.528.466
Cash and cash equivalents at
opening balance
Cash and cash equivalents at end of period 66.330.221 64.708.223
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents at end of period 66.330.221 64.708.223
Samsung Denmark Research Center ApS
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Annual report
2021
11
Accounting policies
Accounting policies used
The annual report for Samsung Denmark Research Center ApS is presented in accordance with the Inter-
national Financial Reporting Standards and additional disclosure requirements in the Danish Financial
Statements Act concerning companies identified as class B enterprises.
The annual report has been prepared according to the standards and interpretations which entered in
to
force for the financial year. Please refer to note 21 concerning implementation of new accounting stan-
dards.
The board of directors and management have on 23 March 2022 considered and adopted the an
nu
al re-
port for the year ended 31 December 2021 for Samsung Denmark Research Center ApS. The annual re-
port is presented to the shareholders of Samsung Denmark Research Center ApS for approval at the an-
nual general meeting on 23 March 2022.
Translation of foreign currency
Management has determined the functional currency to be Danish Kroner (DKK). The functional
currency is the currency used in the primary financial environments in which the Company conducts its
business. Transactions in currencies other than the functional currency are considered transactions in
foreign currency.
Transactions in foreign currency are translated by using the exchange rate prevailing at the date of the
transaction. Differences in the rate of exchange arising between the rate at the date of transaction and the
rate at the date of payment are recognised in the profit and loss account as an item under net financials.
Receivables, payables, and other monetary items in foreign currency are translated by using the closing
rate. The difference between the closing rate and the rate at the time of the occurrence or the recognition
in the latest annual accounts of the amount owed or the liability is recognised in the profit and loss
account under financial income and expenses.
Non-current assets acquired in foreign currency are measured at the exchange rate on the transaction
date.
Income statement
Revenue
The Company's revenue includes the sale of services, including research and development.
Revenue is recognized when control over the individual identifiable delivery obligation passes to the cu-
stomer.
The net turnover is recognised exclusive of VAT and taxes and with the deduction of any dis
counts
granted in connection with the sale.
Samsung Denmark Research Center ApS
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12
Accounting policies
Sales of services include research and development. The services typically include a delivery ob
li
ga
ti
on
that is recognized on a straight line basis in revenue over the period in which the services are provided.
For the sale of services, where there typically is a continuous transfer of control, the pay
ment terms is 30
days.
Other external costs
Other external costs comprise costs for sales, administration and premises.
Staff costs
Staff costs include salaries and wages including holiday allowances, pensions and other costs for social
security etc. for staff members.
Depreciation, amortisation and writedown
Depreciation, amortisation and writedown comprise depreciation on, amortisation of and writedown
relating to intangible and tangible fixed assets respectively.
Other operating costs
Other operating costs comprise accounting items of secondary nature in proportion to the principal
activities of the enterprise, including loss on disposal of intangible and tangible fixed assets.
Financial costs
Financial costs comprise interest, realised and unrealised capital losses concerning financial assets and
liabilities, amortisation of financial assets and liabilities, additions and reimbursements under the Danish
tax prepayment scheme, etc. Financial costs are recognised in the profit and loss account with the
amounts that relate to the financial year.
Tax of the profit for the year
The tax for the year comprises the current tax for the year and the changes in deferred tax, and it is
recognised in the profit and loss account with the share referring to the profit for the year and directly in
equity with the share referring to entries directly in equity.
The Company is subject to the Danish legislation concerning compulsory joint taxation with the Danish
group enterprises.
The current Danish corporate tax is allocated among the jointly taxed companies in proportion to their
respective taxable income (full allocation with reimbursement of tax losses).
Samsung Denmark Research Center ApS
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Annual report
2021
13
Accounting policies
The balance sheet
Goodwill
At the first recognition, acquired goodwill is measured in the balance sheet at cost. Subsequently,
goodwill is measured at cost with deduction of accumulated impairment. Goodwill is not amortized.
Goodwill impairment test
Goodwill is tested annually for impairments, the first time before the end of the acquisition year.
The carrying amount of goodwill is tested for impairment together with the other non-current assets in
the cash-generating unit to which goodwill is allocated and written down to the recoverable amount over
the income statement if the carrying amount is higher. The recoverable amount is generally computed as
the present value of the expected future net cash flows from the activity (cash-generating unit) to which
the goodwill is allocated.
An impairment is recognised if the carrying amount of an asset exceeds its recoverable amount. The im-
pairment is recognised in the income statement in a separate line. Impairment of goodwill is not reversed.
Property, plant and equipment
Property, plant and equipment are measured at cost with deduction of accrued depreciation and write-
down.
The basis of depreciation is cost with deduction of any expected residual value after the end of the useful
life of the asset. The amortisation period and the residual value are determined at the acquisition date and
reassessed annually. If the residual value exceeds the book value, the amortisation discontinues.
If the amortisation period or the residual value is changed, the effect on amortisation will in the future be
recognised as a change in the accounting estimates.
The cost comprises the acquisition cost and costs directly attached to the acquisition until the time when
the asset is ready for use.
The cost of a total asset is divided into separate components. These components are depreciated
separately to reflect the differences in the useful lives of each individual components.
Depreciation takes place on a straight line basis and based on an evaluation of the expected useful life
and the residual value of the individual assets:
Useful life Residual value
Property, plant and equipment 3-5 years 0 %
Samsung Denmark Research Center ApS
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Annual report
2021
14
Accounting policies
Subsequent costs, e.g. in connection with replacement of components of tangible assets, are recognised in
the carrying amount of the asset if it is probable that the cost will result in future economic benefits for
the company. The replaced components are removed from the balance sheet and recognised as an expen-
se in the income statement. All costs incurred for ordinary repairs and maintenance are recognised in the
income statement as incurred.
Profit or loss deriving from the sales of tangible fixed assets is measured as the difference between the
sales price reduced by the selling costs and the book value at the time of the sale. Profit or losses are
recognised in the profit and loss account as other operating income or other operating expenses.
Property, plant and equipment impairment test
The book values of property, plant and equipment is subject to annual impairment test in order to disclo-
se any indications of impairment beyond those expressed by amortisation and depreciation respectively.
If indications of impairment are disclosed, impairment tests are carried out for each individual asset or
group of assets respectively. Writedown takes place to the recoverable amount, if this value is lower than
the book value.
The recoverable value is equal to the value of the net selling price or the value in use, whichever is high-
er. The value in use is determined as the present value of the expected net cash flow deriving from the
use of the asset or the group of assets.
Previously recognised writedown is reversed when the condition for the writedown no longer exist.
Leases
A lease asset and a lease liability are recognized in the balance sheet when, under a lease agree
ment for a
specific identifiable asset, the lease asset is made available during the lease period, and when the
Company obtains a right to virtually all the economic benefits from the use of the identified asset and
right to decide on the use of the identified asset.
Lease liabilities are initially recognized at the present value of the future lease pay
ments dis
count
ed by
an alternative lender. The following lease payments are recognized as part of the lease liability:
· Fixed payments
· Variable payments that change in line with changes in an index or interest rate, based on the
applicable index or interest rate
· Payments owed under a residual value guarantee
· The exercise price of purchase options which management expects with high probability to exer-
cise.
· Payments subject to an extension option which the Company is likely to expect to exercise
· Penalties related to a termination option, unless the Company does not expect to exercise the
option
Samsung Denmark Research Center ApS
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Annual report
2021
15
Accounting policies
The lease liability is measured at amortized cost using the effective interest method. The lease lia
bi
li
ty is
recalculated when there are changes in the underlying contractual cash flows from changes in an index or
interest rate, if there are changes in the Company's estimate of a residual value guarantee or if the
Company changes its assessment of whether a purchase, extension or termination option with reasonable
probability is expected to be exercised.
On initial recognition, the lease asset is measured at cost, which corresponds to the value of the lease
liability adjusted for prepaid lease payments plus direct related costs and estimated costs for demolition,
redevelopment or similar and less any rebates or other types of incentive payments received from the
lessor.
Subsequently, the asset is measured at cost less accumulated depreciation and write-downs. The lease as-
set is depreciated over the shortest of the lease term and the useful life of the lease asset. Depreciation is
recognized on a straight line basis in the income statement.
The lease asset is adjusted for changes in the lease liability as a result of changes in the terms of the lease
or changes in the cash flow of the contract in line with changes in an index or interest rate.
The Company presents the lease asset and the lease liability separately in the balance sheet.
The Company has chosen not to include low-value lease assets and short-term lease agreements in the
balance sheet. Instead, lease payments relating to these leases are recognized on a straight line basis in
the income statement.
Receivables
Receivables are measured at amortised cost. In order to meet expected losses, writedown takes place at
the net realisable value.
Deferred expenses
Deferred expenses recognised under assets comprise incurred costs concerning the next financial year.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
Corporate tax and deferred tax
Current tax receivable and tax liabilities are recognised in the balance sheet at the amount cal
cu
la
ted on
the basis of the expected taxable income for the year adjusted for tax on previous years' taxable income
and prepaid taxes. Tax receivable and tax liabilities are set off to the extent that legal right of set-off
exists and if the items are expected to be settled net or simultaneously.
According to the rules of joint taxation, Samsung Denmark Research Center ApS is unlimited, jointly
and severally liable towards the Danish tax authorities for the total corporation tax, including
withholding tax on interest, royalties and dividends, arising within the jointly taxed group of companies.
Samsung Denmark Research Center ApS
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Annual report
2021
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Accounting policies
Deferred tax is measured on the basis of all temporary differences in assets and liabilities with a ba
lan
ce
sheet focus.
Deferred tax is measured based on the tax rules and tax rates applying under the legislation on the ba
lan-
ce sheet date and prevailing when the deferred tax is expected to be released as current tax.
Deferred tax assets are assessed annually and are recognised only to the extent that their utilisation is
probable.
Liabilities
Other liabilities concerning trade payables, group enterprises and other liabilities are measured at amor-
tised cost.
Samsung Denmark Research Center ApS
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Annual report
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Notes
All amounts in DKK.
1. Accounting estimates and judgements
As part of its application of the Company's accounting policies, management makes judgements, in
addition to estimates, which may materially affect the amounts recognised in the annual report.
Determining the carrying value of certain assets and liabilities requires judgements, estimates and
assumptions relating to future events.
The estimates and assumptions about future events are based on historical experience and other
factors which by management are considered reliable but by nature are associated with uncertainty.
The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may
arise. Furthermore, the company is subject to risks and uncertainties which may lead to actual re-
sults differing from these estimates.
It may be necessary to change previous estimates due to changes in the conditions on which they
were based or due to new information or subsequent events.
Estimates which are especially important for the financial reporting are made by applying the va-
luation of the impairment test for goodwill among others.
Impairment test for goodwill
At the annual impairment test for goodwill, or if there is an indication of impairment, an estimate
is made of whether the parts of the business to which the asset is allocated (cash generating units)
will be capable of generating sufficient positive net cash flows in the future to support the value of
goodwill and other net assets in the relevant part of the business.
Due to the nature of the business, an estimate must be made of expected cash flows for many years
in the future, which naturally leads to some uncertainty. It is not considered necessary to account
for impairment of goodwill at present.
The impairment test and the related sensitivities are described in more detail in note 8.
Samsung Denmark Research Center ApS
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Annual report
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Notes
All amounts in DKK.
2021 2020
2. Revenue
Sale of services
79.274.191
67.259.842
79.274.191 67.259.842
3. Other external costs
Travel and event expenses
145.292
378.943
Costs of premises
2.178.315
1.659.558
Administration costs
8.770.199
7.499.920
11.093.806 9.538.421
4. Staff costs
Salaries and wages
55.053.483
45.941.800
Pension costs
3.563.054
2.978.629
Other costs for social security
351.664
328.975
58.968.201 49.249.404
Average number of employees
Remuneration of key management personnel
In accordance with IAS 24, the Directors' have given consideration to who has authority and re-
sponsibility for planning, directing and controlling the activities of the entity. The Directors' have
determined that since strategic and operational decisions are ultimately made by personnel located
in the parent entity of the Company and that major decisions are always subject to parent company
approval, there are no key management personnel who are remunerated by the Company. Accor-
dingly, no amounts have been disclosed in respect of this since no recharge for these services is re-
ceived or receivable by the Company.
Directors' emoluments were as follows:
Key management compansation
Key management includes Board of Directors and Executive Management.
The compensation paid or payable to key management for employee service is shown below:
Samsung Denmark Research Center ApS
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Annual report
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19
Notes
All amounts in DKK.
2021 2020
4. Staff costs (continued)
Executive Management
Wage and salaries
876.393
724.463
Contribution plans and other social costs
138.940
113.895
Aggregate amounts (excluding shares) receivable under long-
term incentive schemes
87.765
106.279
Benefits-in-kind
7.658
6.063
Post-employment benefits
85.873
65.743
1.196.629 1.016.443
Board of Directors
Wage and salaries
682.492
544.418
Benefits-in-kind
54.219
130.527
736.711 674.945
The amounts above represent directors' emoluments paid or payable by Samsung Cambridge So
lu
ti-
on Centre Ltd multiplied by management's best estimate of time spent on services to the Company.
The remuneration are paid by other group companies which make no recharge to the Company.
5. Depreciation of tangible and intangible assets
Depreciation of property, plant and equipment
2.001.876
1.942.932
Depreciation of lease assets
0
422.134
2.001.876 2.365.066
6. Financial costs
(Amortized cost)
Calculated interest, leasing payables
0
5.153
Exchange differences
12.852
9.512
12.852 14.665
Samsung Denmark Research Center ApS
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Annual report
2021
20
Notes
All amounts in DKK.
2021 2020
7. Tax of the profit for the year
Adjustment of deferred tax for the year
1.584.591
1.340.528
1.584.591 1.340.528
Tax on profit for the year may be subdivised as follows:
Calculated 22% tax on profit for the year before tax
1.581.666
1.340.255
Tax effect of non-deductible costs
2.179
196
Correction
746
77
1.584.591
1.340.528
Effective tax rate
%
22,0
%
22,0
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Annual report
2021
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Notes
All amounts in DKK.
31/12 2021 31/12 2020
8. Goodwill
Cost
opening balance
65.778.798
65.778.798
Cost end of period 65.778.798 65.778.798
Writedown
opening balance
0
0
Amortisation and depreciation for the year
0
0
Writedown end of period 0 0
Book value end of period 65.778.798 65.778.798
As of 31 December 2021 management tested the carrying value of goodwill for impairment. The
Company acquired the activities of Cambridge Silicon Radio Denmark, a branch of Cambridge Sili-
con Radio Limited UK on 4 October 2012. In doing so, it recognised goodwill of DKK 65.779k,
which corresponds to the carrying amount as at 31 December 2021.
The recoverable amount is based on the value, which is determined using expected net cash flows
based on budgets for the years 2022-26 approved by the management and a discount rate after tax
of 9,00%.
The weighted average growth rate used for exploration of future net cash flows for the years after
2026 has been estimated at 3,2%.
The key assumptions are based on experiences from previous years, external sources and in
struc-
tions/calculations from the parent company.
Against this background, the carrying amount of goodwill is determined to be less than the re
cover-
able amount. Thus, no impairment is required.
Samsung Denmark Research Center ApS
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Annual report
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Notes
All amounts in DKK.
31/12 2021 31/12 2020
9. Property, plants and equipment
Cost
opening balance
14.610.534
14.183.088
Additions during the year
5.170.093
558.142
Disposals during the year
-101.159
-130.696
Cost end of period 19.679.468 14.610.534
Depreciation and writedown
opening balance
-10.694.342
-8.881.886
Amortisation and depreciation for the year
-2.001.876
-1.942.932
Reversal of depreciation, amortisation and impairment loss,
assets disposed of
63.096
130.476
Depreciation and writedown end of period -12.633.122 -10.694.342
Book value end of period 7.046.346 3.916.192
No changes have been made to significant estimates concerning property, plant and equipment.
10. Lease assets
Cost
opening balance
1.563.464
1.563.464
Cost end of period 1.563.464 1.563.464
Depreciation and writedown
opening balance
-1.563.464
-1.141.330
Amortisation and depreciation for the year
0
-422.134
Depreciation and writedown end of period -1.563.464 -1.563.464
Book value end of period 0 0
Costs relating to short-term lease agreements and lease
agreements with a low value
1.714.191
1.144.490
All lease assets relate to property.
Samsung Denmark Research Center ApS
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Annual report
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Notes
All amounts in DKK.
31/12 2021 31/12 2020
11. Other receivables
(Non-current)
Cost
opening balance
645.198
645.198
Additions during the year
24.724
0
Cost end of period 669.922 645.198
Book value end of period 669.922 645.198
Specified as follows:
Deposits
669.922
645.198
669.922 645.198
12. Financial instruments
(at amortized cost)
Receivables from group enterprises
15.526.630
13.497.759
Other receivables
1.788.976
1.310.698
Cash and cash equivalents
66.330.221
64.708.223
83.645.827 79.516.680
Provision for losses amounts to DKK 0.
Refer to note 18 for the Company's risk management.
13. Share capital
The share capital consists of 90.000 shares, each with a nominel value of DKK 1. No shares hold
particular rights.
All shares have been fully paid.
14. Share premium account
The share premium account includes amounts not included in the nominal share capital, which are
paid by the shareholders in connection with capital increase.
Pursuant to the Articles of Association, the share premium may be freely used for distribution of
dividend and bonus issue.
Samsung Denmark Research Center ApS
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Annual report
2021
24
Notes
All amounts in DKK.
31/12 2021 31/12 2020
15. Deferred tax liability
Deferred tax liability
opening balance
8.312.513
6.971.985
Deferred tax relating to the net profit or loss for the year
1.584.591
1.340.528
Tax losses used by the joint taxation
1.004.146
0
10.901.250 8.312.513
The following items are subject to deferred tax:
Intangible assets
14.471.335
14.471.335
Property, plant and equipment
-25.463
-170.154
Losses carried forward from previous years
-3.544.622
-5.988.668
10.901.250 8.312.513
Tax losses carried forward relate to amortisation of goodwill. Due to goodwill being fully
amortised at the end of 2018, it is probable that the tax losses will be realized in the foreseeable
future.
16. Change in working capital
Change in debtors
-2.394.382
-2.343.679
Change in trade creditors and other liabilities
-1.022.281
-1.499.142
-3.416.663 -3.842.821
17. Contingencies
Contingent assets
None.
Contingent liabilities
The Company has entered into a tenancy agreement with an annual rent of DKK 1,140k. The
agreement contains an annual rent regulation of minimum 2%. The tenancy may be terminated by
giving 6 months' notice.
The Company has entered into a tenancy agreement with an annual rent of DKK 592k. The tenan-
cy may be terminated by giving 3 months' notice.
Samsung Denmark Research Center ApS
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Annual report
2021
25
Notes
All amounts in DKK.
17. Contingencies (continued)
Joint taxation
Samsung Electronics branch of Samsung Electronics Nordic AB, Sweden, company reg. no 27 11
02 74 being the administration company, the Company is subject to the Danish scheme of joint ta-
xation and unlimited jointly and severally liable with the other jointly taxed companies for the to-
tal corporation tax.
The Company is unlimited jointly and severally liable with the other jointly taxed companies for
any obligation to withhold tax on interest, royalties and dividends.
The jointly taxed enterprises' total, known net liability to the Danish tax authorities appears from
the annual accounts of the administration company.
18. Financial risks
As a result of its operations, investments and financing, the Company is exposed to financial risks,
including market risks (currency risks) and credit risks.
The Company's financial instruments primarily consist of cash and cash equivalents, where the
carrying value as at 31 December 2021 amounts to DKK 66.330k. The carrying value is equivalent
to the fair value.
Market risk
The Company’s activities expose it primarily to the financial risks of changes in foreign currency
exchange rates. As most of the Company's transactions are in DKK the risk of changes in foreign
currency exchange rates is assessed low. Therefore no further action has been taken.
Credit risks
The Company is subject to the group's banking arrangements etc. and agreements on bank deposits
are only entered into with counterparties when management considers that there is no credit risk.
Based upon this, all counterparties are expected to be able to fulfill their obligations.
The maximum credit risk exposure relating to financial assets is the carrying amount of the assets
in the balance sheet.
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Notes
All amounts in DKK.
18. Financial risks (continued)
Financial assets are written off when there is no reasonable expectation of recovery, such as a deb-
tor failing to engage in a repayment plan with the Company. The Company categorises a loan or
receivable for write off when a debtor fails to make contractual payments more than 180 days past
due. Where recoveries are made, these are recognised in profit or loss.
At the year end, there were no financial assets deemed impaired. No financial assets were past due.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors. The Com-
pany manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The table below analyses the Company's financial assets and liabilities into relevant maturity based
on the remaining period at the balance sheet to the contractual maturity date. The amounts disclo-
sed in the table are the contractual undiscounted cash flows. Balances due after 12 months equal
their carrying balances as the impact of discounting is not significant.
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Notes
All amounts in DKK.
18. Financial risks (continued)
Less than 1 year
Over 1 year Total
31 December 2021
Receivables from group enterprises
15.526.630
0
15.526.630
Other receivables
1.119.054
669.922
1.788.976
Cash and cash equivalents
66.330.221 0 66.330.221
16.645.684 669.922 17.315.606
Deferred tax liability
0
10.901.250
10.901.250
Trade payables
209.755
0
209.755
Other liabilities
13.085.232 254.648 13.339.880
13.294.987 11.155.898 24.450.885
Amortized cost
31 December 2020
Receivables from group enterprises
13.497.759
0
13.497.759
Other receivables
665.501
645.198
1.310.699
Cash and cash equivalents
64.708.223 0 64.708.223
78.871.483 645.198 14.808.458
Deferred tax liability
0
8.312.513
8.312.513
Trade payables
297.726
0
297.726
Debt to group enterprises
120.713
0
120.713
Other liabilities
13.951.157 202.320 14.153.477
14.369.596 8.514.833 22.884.429
Capital risk management
The Company manages its capital to ensure that it will be able to continue as a going concern
while maximising the return to shareholders. The Company is not subject to any externally impo-
sed capital requirements. The Directors have ensured that future funding is assured for a period ex-
ceeding 12 months from the date of signing of these financial statements.
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Notes
All amounts in DKK.
19. Related parties
Controlling interest
Samsung Electronics Europe Holding Coöperatief U.A. Majority shareholder
Oluf Palmestraat 10
2616LR Delft
The Netherlands
(Ownership interest 100%)
Samsung Electronics Co. Ltd., South Korea Ultimate parent company
www.samsung.com (Investor relations)
Other related parties
Joonsuk Kim Board member
Jae Kyun Oh Board member
Rajinder Gawera Manager and board member
Hwanbae Yoo Board member
Samsung Electronics, branch of Samsung Electronics
Nordic AB, Sweden
Jointly taxed company
Harman Professional Denmark ApS Jointly taxed company
Samsung SDS Europe Limited Affiliated company
Samsung Cambridge Solution Centre Limited Affiliated company
Transactions
The Company re-invoices costs paid with an addition of 10% to Samsung Cambridge Solution
Centre Limited on a monthly basis. The transactions amounts to DKK 79.274k and have been re-
cognised in the income statement under revenue and in the balance sheet under receivables from
group companies which are settled on an ongoing basis pursuant to the Company's standard terms.
Transactions have taken place at arm's length.
The Company has acquired IT services of DKK 1.564k and property, plants and equipment of
DKK 808k from Samsung SDS Europe Limited. Transactions have taken place at arm's length.
The Company has received joint taxation contribution of DKK 1.004k from Harman Professional
Denmark ApS. Transactions have taken place at arm's length.
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Notes
All amounts in DKK.
20. Events after the balance sheet
No events have occurred after the balance sheet date which would have a material impact on the
Company's financial position or requires additional information.
21. New accounting standards
Samsung Denmark Research Center ApS has not implemented any amendments as none of the new
standards and interpretations have impact on recognition and measurement.
A number of new standards and interpretations have been issued, which are not mandatory for the
Company in relation to the preparation of the annual report for 2022. None of the new standards
and interpretations are expected to impact significantly on the presentation of the accounts of the
Company.
The adopted standards and interpretations, which are not yet in force, are implemented as they be-
come mandatory for the Company.
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2021
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