Samsung Denmark Research Center ApS
c/o Novi 8, Alfred Nobels Vej 27, 2., 9220 Aalborg Øst
Company reg. no.
34 70 30 19
Annual report
1 January - 31 December 2022
The annual report was submitted and approved by the general meeting on 15 March 2023.
Chairman of the meeting
Contents
Page
Reports
Management's statement 1
Independent Auditor's Report 2
Management's review
Company information 5
Financial highlights 6
Management´s review 7
Financial statements 1 January - 31 December 2022
Statement of comprehensive income 8
Statement of financial position 9
Statement of changes in equity 11
Statement of cash flows 12
Notes
13
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 Denmark Research Center ApS · Annual report 2022
Management's statement
Managing Director
Board of directors
Samsung Denmark Research Center ApS · Annual report 2022 1
Independent Auditor's Report
Samsung Denmark Research Center ApS · Annual report 2022 2
Independent Auditor's Report
Samsung Denmark Research Center ApS · Annual report 2022 3
Independent Auditor's Report
Company reg. no.
Samsung Denmark Research Center ApS · Annual report 2022 4
Company information
The company
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 PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Parent company
Ultimate parents company
Samsung Electronics Europe Holding Coöperatief U.A.
Samsung Electronics Co. Ltd., South Korea
Samsung Denmark Research Center ApS · Annual report 2022 5
Financial highlights
DKK in thousands.
2022
2021
2020
2019
2018
Income statement:
Revenue
99.461
79.274
67.260
67.848
53.665
Gross profit
84.660
68.180
57.721
58.091
46.638
Profit from operating activities
8.412
7.202
6.107
6.171
4.872
Net financials
-9
-13
-15
-31
-1
Net profit or loss for the year
6.593
5.605
4.752
4.787
3.814
Statement of financial position:
Balance sheet total
135.183
156.973
149.802
145.737
134.584
Investments in property, plant and
equipment
2.169
5.170
558
3.333
1.317
Equity
104.115
132.522
126.917
122.166
117.379
Cash flows:
Operating activities
16.028
6.787
4.615
11.896
6.008
Investing activities
-2.169
-5.165
-558
-3.333
-1.317
Financing activities
-35.000
0
-528
-1.036
0
Employees:
Average number of full-time employees
50
50
46
Key figures in %:
Profit margin (EBIT-margin)
8,5
9,1
9,1
9,1
9,1
Solvency ratio
77,0
84,4
84,7
83,8
87,2
Return on equity
5,6
4,3
3,8
4,0
3,3
Calculations of key figures and ratios follow the recommendations of the Danish Association of Finance
Analysts.
Samsung Denmark Research Center ApS · Annual report 2022 6
Management´s review
The principal activities of the company
Like previous years, the principal activity consists of activities related to development and commercial
exploitation of integrated circuits within the wireless communication business area and other similar bu-
siness areas.
Development in activities and financial matters
The profit and loss account covers 1 January to 31 December and shows a result of DKK 6.592.775
against DKK 5.604.802 last year. The balance sheet shows equity of DKK 104.114.927.
The result for the year of DKK 6.592.775 is in line with management’s expectations and is considered to
be satisfactory.
Expected developments
The Company has secured assurance of further funding from the ultimate parent Company (SEC) to con-
tinue to develop products as defined by the Company’s roadmap and management have noted that addi-
tional recruitment will be supported by group at a local level for the next 5 years, although those budgets
have not been approved yet. The Company expects the result for 2023 to be DKK 6-8 million in line with
the result for 2022.
Know how resources
The Company specializes in driving Bluetooth/WLAN standardization work with its customer, Sam
sung
Cambridge Solution Centre Ltd.
Environmental issues
The Company is very focused on reducing its CO2 footprint and prioritizes climate neutral solutions and
has climate certificates showing use of CO2 neutral energy with regards to electricity in its office and
data centre. The Company’s landlord, NOVI, is focused on the United Nations’ 17 world goals for Su-
stainable Development and is a member of “Network for Sustainable Business Development in Northern
Denmark”.
Financial risks and the use of financial instruments
Ultimate responsibility for liquidity risk management rests with the board of directors. The Company ma-
nages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual
cash flows and matching the maturity profiles of financial assets and liabilities.
Samsung Denmark Research Center ApS · Annual report 2022 7
Statement of comprehensive income
1 January
-
31 December
All amounts in DKK.
Note
2022 2021
3
Revenue
Other operating income
4
Other external expenses
-14.813.655
-11.093.806
Gross profit 84.660.429 68.180.385
5
Staff costs
-73.942.454
-58.968.201
6
Depreciation, amortisation, and impairment
-2.304.716
-2.001.876
Other operating expenses
-830
-8.063
Operating profit 8.412.429 7.202.245
7
Financial expenses
-8.823
-12.852
Pre-tax net profit or loss 8.403.606 7.189.393
8
Tax on net profit or loss for the year
-1.810.831
-1.584.591
9 Net profit or loss for the year and total comprehensive
income 6.592.775 5.604.802
Samsung Denmark Research Center ApS · Annual report 2022 8
Statement of financial position
at
31 December
All amounts in DKK.
Assets
Note
2022 2021
Non-current assets
10
Goodwill
11
Property, plants, and equipment
12
Lease assets
13
Other receivables
Total non-current assets 73.371.406 73.495.066
Current assets
Receivables from group enterprises
Other receivables
14
Prepayments
Cash and cash equivalents
Total current assets 61.811.575 83.477.971
Total assets 135.182.981 156.973.037
Samsung Denmark Research Center ApS · Annual report 2022 9
Statement of financial position
at
31 December
All amounts in DKK.
Equity and liabilities
Note
2022 2021
Equity
16
Share capital
17
Share premium
Retained earnings
Total equity 104.114.927 132.522.152
Liabilities
18
Provisions for deferred tax
Other payables
Total non-current liabilities 13.489.378 11.155.898
Trade payables
Other payables
Total current liabilities 17.578.676 13.294.987
Total liabilities 31.068.054 24.450.885
Total equity and liabilities 135.182.981 156.973.037
Samsung Denmark Research Center ApS · Annual report 2022 10
Statement of changes in equity
All amounts in DKK.
Contributed
capital Share premium
Retained
earnings Total
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
Equity 1 January 2022 90.000 97.177.412 35.254.740 132.522.152
Retained earnings for the year 0 0 -28.407.225 -28.407.225
Extraordinary dividend adopted
during the financial year 0 0 35.000.000 35.000.000
Distributed extraordinary
dividend adopted during the
financial year 0 0 -35.000.000 -35.000.000
Samsung Denmark Research Center ApS · Annual report 2022 11
Statement of cash flows
1 January
-
31 December
All amounts in DKK.
Note
2022 2021
Operating profit
Depreciation and other operating costs
19
Change in working capital
-3.416.663
Cash flows from operating activities before net financials 15.559.264 5.795.521
Interest paid, etc.
-8.823
-12.852
Income tax received
Cash flows from operating activities 16.027.515 6.786.815
Purchase of property, plant, and equipment
-2.168.687
-5.170.093
Sale of property, plant, and equipment
Purchase of fixed asset investments
-13.199
-24.724
Cash flows from investment activities -2.169.020 -5.164.817
Dividend paid
-35.000.000
Cash flows from financing activities -35.000.000 0
Change in cash and cash equivalents -21.141.505 1.621.998
Cash and cash equivalents at
opening balance
Cash and cash equivalents at end of period 45.188.716 66.330.221
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents at end of period 45.188.716 66.330.221
Samsung Denmark Research Center ApS · Annual report 2022 12
Notes
1.
Accounting policies
The annual report for Samsung Denmark Research Center ApS has been presented in accordance
with The International Financial Reporting Standards and additional disclosure requirements in the
Danish Financial Statements Act concerning reporting class C enterprises (medium sized enterpri-
ses).
The annual report has been prepared according to the standards and interpretations which entered
into force for the financial year. Please refer to note 24 concerning implementation of new ac-
counting standards.
The board of directors and management have on 15 March 2023 considered and adopted the annu-
al report for the year ended 31 December 2022 for Samsung Denmark Research Center ApS. The
annual report is presented to the shareholders of Samsung Denmark Research Center ApS for ap-
proval at the annual general meeting on 15 March 2023.
Foreign currency translation
Management has determined the functional currency to be Danish Kroner (DKK). The func
tio
nal
currency is the currency used in the primary financial environments in which the Company con-
ducts 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 transacti-
on and the rate at the date of payment are recognised in the profit and loss account as an item un-
der net financials.
Receivables, payables, and other foreign currency monetary items are translated using the clo
sing
rate. The difference between the closing rate and the rate at the time of the occurrence or initial re-
cognition in the latest financial statements of the receivable or payable is recognised in the income
statement under financial income and expenses.
Non-current assets acquired and paid for in foreign currency are measured at the exchange ra
te
prevailing at the date of the transaction.
Income statement
Revenue
The Company's revenue includes the sale of services, including research and development.
Revenue is recognised when control over the individual identifiable delivery obligation passes to
the customer.
Samsung Denmark Research Center ApS · Annual report 2022 13
Notes
1. Accounting policies (continued)
The net turnover is recognised exclusive of VAT and taxes and with the deduction of any dis-
counts granted in connection with the sale.
Sale of services include research and development. The services typically include a de
li
ve
ry ob
li-
gation that is recognized on a straight line bases in revenue over the period inn which the services
are provided.
For the sale of services, where there typically is a continuous transfer of control, the payment term
is 30 days.
Other operating income
Other operating income comprises items of a secondary nature as regards the principal activities of
the enterprise, including profit from the disposal of intangible and tangible assets.
Other external expenses
Other external expenses comprise expenses incurred for sales, administration, and premises.
Staff costs
Staff costs include salaries and wages, including holiday allowances, pensions, and other social se-
curity costs, etc., for staff members.
Depreciation, amortisation, and writedown for impairment
Depreciation, amortisation, and writedown for impairment comprise depreciation on, amor
ti
sa
ti
on
of, and writedown for impairment of intangible and tangible assets, respectively.
Other operating expenses
Other operating expenses comprise items of secondary nature as regards the principal activities of
the enterprise, including losses on the disposal of intangible and tangible assets.
Financial income and expenses
Financial income and expenses are recognised in the income statement with the amounts con
cer-
ning the financial year. Financial income and expenses comprise interest income and expenses, fi-
nancial expenses from financial leasing, realised and unrealised capital gains and losses relating to
transactions in foreign currency, amortisation of financial assets and liabilities as well as surchar-
ges and reimbursements under the advance tax scheme, etc.
Tax on net profit or loss for the year
Tax for the
year
comprises the current income tax for the
year
and changes in deferred tax and is
recognised in the income statement with the share attributable to the net profit or loss for the
year
and directly in equity with the share attributable to entries directly in equity.
Samsung Denmark Research Center ApS · Annual report 2022 14
Notes
1. Accounting policies (continued)
The Company is subject to Danish rules on compulsory joint taxation of Danish group enterprises.
The current Danish income tax is allocated among the jointly taxed companies proportional to
their respective taxable income (full allocation with reimbursement of tax losses).
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 amorti-
zed.
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 as-
sets 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 ge-
nerally 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 impairment 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 less accrued depreciation and writedown for
impairment.
The depreciable amount is cost less 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 carrying amount, the depreciation is disconti-
nued.
If the amortisation period or the residual value is changed, the effect on amortisation will, in fu
tu-
re, be recognised as a change in the accounting estimates.
The cost comprises acquisition cost and costs directly associated with the acquisition until the time
when the asset is ready for use.
Samsung Denmark Research Center ApS · Annual report 2022 15
Notes
1. Accounting policies (continued)
The cost of a total asset is divided into separate components. These components are depreciated
separately, the useful lives of each individual components differing, and the individual component
representing a material part of the total cost.
Depreciation is done on a straight-line basis according to an assessment 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 %
Subsequent costs, e.g. in connection with replacement of components of tangible assets, are re
cog-
nised in the carrying amount of the asset if it is probable that the cost will result in future econo-
mic benefits for the company. The replaced components are removed from the balance sheet and
recognised as an expense in the income statement. All costs incurred for ordinary repairs and
maintenance are recognised in the income statement as incurred.
Profit or loss derived from the disposal of property, land, and equipment is measured as the dif
fe-
rence between the sales price less selling costs and the carrying amount at the date of disposal.
Profit or loss is recognised in the income statement 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
disclose 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 as-
set 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
higher. 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 identi-
fied asset and right to decide on the use of the identified asset.
Samsung Denmark Research Center ApS · Annual report 2022 16
Notes
1. Accounting policies (continued)
Lease liabilities are initially recognized at the present value of the future lease payments dis
count-
ed by an alternative lender. The following lease payments are recognized as part of the lease liabi-
lity:
· 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
exercise.
· 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
The lease liability is measured at amortized cost using the effective interest method. The lease lia-
bility 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 gua-
rantee 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 re-
ceived from the lessor.
Subsequently, the asset is measured at cost less accumulated depreciation and write-downs. The
lease asset 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 ra-
te.
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, which usually corresponds to nominal value.
Samsung Denmark Research Center ApS · Annual report 2022 17
Notes
1. Accounting policies (continued)
In order to meet expected losses, impairment takes place at the net realisable value.
Prepayments
Prepayments recognised under assets comprise incurred costs concerning the following financial
year.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand.
Income tax and deferred tax
Current tax liabilities and current tax receivable are recognised in the statement of financial
position as calculated tax on the taxable income for the year, adjusted for tax of previous years'
taxable income and for tax paid on account.
The Company is jointly taxed with consolidated Danish companies. The current corporate income
tax is distributed between the jointly taxed companies in proportion to their taxable income and
with full distribution with reimbursement as to tax losses. The jointly taxed companies are
comprised by the Danish tax prepayment scheme.
Joint taxation contributions payable and receivable are recognised in the statement of financial
position as ”Income tax receivable” or “Income tax payable”.
According to the rules of joint taxation, Samsung Denmark Research Center ApS is unlimitedly,
jointly, and severally liable to pay the Danish tax authorities the total income tax, including
withholding tax on interest, royalties, and dividends, arising from the jointly taxed group of
companies.
Deferred tax is measured on the basis of temporary differences in assets and liabilities with a focus
on the statement of financial position. Deferred tax is measured at net realisable value.
Adjustments take place in relation to deferred tax concerning elimination of unrealised
intercompany gains and losses.
Deferred tax is measured based on the tax rules and tax rates applying under the legislation
prevailing in the respective countries on the reporting date when the deferred tax is expected to be
released as current tax. Changes in deferred tax due to changed tax rates are recognised in the
income statement, except for items included directly in the equity.
Deferred tax assets, including the tax value of tax losses allowed for carryforward, are recognised
at the value at which they are expected to be realisable, either by settlement against tax of future
earnings or by set-off in deferred tax liabilities within the same legal tax unit. Any deferred net tax
assets are measured at net realisable value.
Samsung Denmark Research Center ApS · Annual report 2022 18
Notes
1. Accounting policies (continued)
Liabilities
Other liabilities concerning payables to suppliers, group enterprises, and other payables are
measured at amortised cost which usually corresponds to the nominal value.
2. Accounting estimates and judgments
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 10.
Samsung Denmark Research Center ApS · Annual report 2022 19
Notes
All amounts in DKK.
2022 2021
3. Revenue
Sale of services
99.461.218
79.274.191
99.461.218 79.274.191
The Company only has sales to one segment and one customer.
4. Other external expenses
Travel and event expenses
1.632.151
145.292
Costs of premises
2.469.410
2.178.315
Administration expenses
10.712.094
8.770.199
14.813.655 11.093.806
5. Staff costs
Salaries and wages
68.792.255
55.053.483
Pension costs
4.736.090
3.563.054
Other costs for social security
414.109
351.664
73.942.454 58.968.201
Average number of employees 71 59
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.
Key management compensation
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 · Annual report 2022 20
Notes
All amounts in DKK.
2022 2021
5. Staff costs (continued)
Executive Management
Wage and salaries
1.096.628
876.393
Contribution plans and other social costs
181.659
138.940
Aggregate amounts (excluding shares) receivable under long-
term incentive schemes
108.097
87.765
Benefits-in-kind
7.859
7.658
Post-employment benefits
107.684
85.873
1.501.927 1.196.629
Board of Directors
Wage and salaries
1.044.863
682.492
Benefits-in-kind
179.457
54.219
1.224.320 736.711
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.
6. Depreciation, amortisation, and impairment
Depreciation of property, plant and equipment
2.304.716
2.001.876
2.304.716 2.001.876
7. Financial expenses
(Amortized cost)
Exchange differences
8.823
12.852
8.823 12.852
Samsung Denmark Research Center ApS · Annual report 2022 21
Notes
All amounts in DKK.
2022 2021
8. Tax on net profit or loss for the year
Adjustment of deferred tax for the year
1.810.831
1.584.591
1.810.831 1.584.591
Tax on profit for the year may be subdivised as follows:
Calculated 22% tab on profit for the year before tax
1.848.793
1.581.666
Tax effect of non-deductible costs
8.281
2.179
Correction
-46.243
746
1.810.831
1.584.591
Effective tax rate
%
21,5
%
22,0
9. Proposed appropriation of net profit
Extraordinary dividend adopted during the financial year
35.000.000
0
Transferred to retained earnings
0
5.604.802
Allocated from retained earnings
-28.407.225
0
Total allocations and transfers 6.592.775 5.604.802
Samsung Denmark Research Center ApS · Annual report 2022 22
Notes
All amounts in DKK.
31/12 2022 31/12 2021
10. Goodwill
Cost
opening balance
65.778.798
65.778.798
Cost end of period 65.778.798 65.778.798
Amortisation and writedown
opening balance
0
0
Amortisation and depreciation for the year
0
0
Amortisation and writedown end of period 0 0
Carrying amount, end of period 65.778.798 65.778.798
As of 31 December 2022 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 2022.
The recoverable amount is based on the value, which is determined using expected net cash flows
based on budgets for the years 2023-27 approved by the management and a discount rate after tax
of 9,0%.
The weighted average growth rate used for exploration of future net cash flows for the years after
2027 has been estimated at 3,9%.
The key assumptions are based on experiences from previous years, external sources and in
struc
ti-
ons/calculations from the parent company.
Against this background, the carrying amount of goodwill is determined to be less than the re
co
ver-
able amount. Thus, no impairment is required.
Management assess that probable changes in the basis assumptions will not cause the value of
goodwill to exceed the recoverable amount.
Samsung Denmark Research Center ApS · Annual report 2022 23
Notes
All amounts in DKK.
31/12 2022 31/12 2021
11. Property, plants, and equipment
Cost
opening balance
19.679.468
14.610.534
Additions during the year
2.168.687
5.170.093
Disposals during the year
-115.905
-101.159
Cost end of period 21.732.250 19.679.468
Depreciation and writedown
opening balance
-12.633.122
-10.694.342
Amortisation and depreciation for the year
-2.304.716
-2.001.876
Reversal of depreciation, amortisation and impairment loss,
assets disposed of
115.075
63.096
Depreciation and writedown end of period -14.822.763 -12.633.122
Carrying amount, end of period 6.909.487 7.046.346
No changes have been made to significant estimates concerning property, plant and equipment.
12. 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
-1.563.464
Amortisation and depreciation for the year
0
0
Depreciation and writedown end of period -1.563.464 -1.563.464
Carrying amount, end of period 0 0
Costs relating to short-term lease agreements and lease
agreements with a low value
1.800.608
1.714.191
All lease assets relate to property.
Samsung Denmark Research Center ApS · Annual report 2022 24
Notes
All amounts in DKK.
31/12 2022 31/12 2021
13. Other receivables
(Non-current)
Cost
opening balance
669.922
645.198
Additions during the year
13.199
24.724
Cost end of period 683.121 669.922
Carrying amount, end of period 683.121 669.922
Specified as follows:
Deposits
683.121
669.922
683.121 669.922
14. Prepayments
Prepaid IT costs and subscriptions
472.266
407.474
Prepaid insurance
63.507
46.530
Prepaid internet
24.263
11.659
Other prepayments
12.335
36.403
572.371 502.066
15. Financial instruments
(at amortized costs)
Receivables from group enterprises
15.778.968
15.526.630
Other receivables
954.642
1.788.976
Cash and cash equivalents
45.188.716
66.330.221
61.922.326 83.645.827
Provision for losses amounts to DKK 0.
Refer to note 21 for the Company's risk management.
Samsung Denmark Research Center ApS · Annual report 2022 25
Notes
All amounts in DKK.
16. Share capital
The share capital consists of 90,000 shares, each with a nominal value of 1 DKK. No shares hold
particular rights.
All shares have been fully paid.
17. Share premium
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.
31/12 2022 31/12 2021
18. Provisions for deferred tax
Provisions for deferred tax
opening balance
10.901.250
8.312.513
Deferred tax relating to the net profit or loss for the year
1.810.831
1.584.591
Tax losses used by the joint taxation
477.074
1.004.146
13.189.155 10.901.250
The following items are subject to deferred tax:
Intangible assets
14.471.335
14.471.335
Property, plant, and equipment
-837
-25.463
Losses carried forward from previous years
-1.281.343
-3.544.622
13.189.155 10.901.250
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.
19. Change in working capital
Change in receivables
524.890
-2.394.382
Change in trade payables and other payables
4.329.265
-1.022.281
4.854.155 -3.416.663
Samsung Denmark Research Center ApS · Annual report 2022 26
Notes
All amounts in DKK.
20. Contingencies
Contingent assets
None.
Contingent liabilities
The Company has entered into a tenancy agreement with an annual rent of DKK 1,252k. 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 612k. The tenan-
cy may be terminated by giving 3 months' notice.
Joint taxation
With Samsung Electronics branch of Samsung Electronics Nordic AB, Sweden, company reg. no
27 11 02 74 as administration company, the company is subject to the Danish scheme of joint tax-
ation and unlimitedly, jointly, and severally liable, along with the other jointly taxed companies,
for the total corporation tax.
The company is unlimitedly, jointly, and severally liable, along with the other jointly taxed compa-
nies, for any obligations to withhold tax on interest, royalties, and dividends.
The jointly taxed enterprises' total known net liability to the Danish tax authorities emerges from
the financial statements of the administration company.
21. 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 2022 amounts to DKK 45.189k. 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.
Samsung Denmark Research Center ApS · Annual report 2022 27
Notes
All amounts in DKK.
21. Financial risks (continued)
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.
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.
Samsung Denmark Research Center ApS · Annual report 2022 28
Notes
All amounts in DKK.
21. Financial risks (continued)
Amortized cost
Less than 1
year
Over 1 year
Total
31 December 2022
Receivables from group enterprises
15.778.968
0
15.778.968
Other receivables
271.520
683.121
954.641
Cash and cash equivalents
45.188.716
0
45.188.716
61.239.204 683.121 61.922.325
Provisions for deferred tax
0
13.189.155
13.189.155
Trade payables
235.579
0
235.579
Other payables
17.343.097
300.223
17.643.320
17.578.676 13.489.378 31.068.054
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
82.975.905 669.922 83.645.827
Provisions for deferred tax
0
10.901.250
10.901.250
Trade payables
209.755
0
209.755
Other payables
13.085.232
254.648
13.339.880
13.294.987 11.155.898 24.450.885
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.
Samsung Denmark Research Center ApS · Annual report 2022 29
Notes
All amounts in DKK.
22. Related parties
Controlling interest
Samsung Electronics Europe Holding Coöperatief U.A.
Oluf Palmestraat 10
2616LR Delft
The Netherlands
(Ownership interest 100%)
Majority shareholder
Samsung Electronics Co. Ltd., South Korea
www.samsung.com (Investor relations)
Ultimate parent
company
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
Samsung SDS German Branch 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 99.461k and have been re-
cognised in the income statement under revenue and in the balance sheet under receivables from
group enterprises 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 1.946k from Samsung SDS Europe Limited and of
DKK 6k from Samsung SDS German Branch. Transactions have taken place at arm's length.
The Company has received joint taxation contribution of DKK 477k from Harman Professional
Denmark ApS. Transactions have taken place at arm's length.
Consolidated financial statements
The company is included in the consolidated financial statements of Samsung Electronics Co. Ltd.,
South Korea.
Samsung Denmark Research Center ApS · Annual report 2022 30
Notes
All amounts in DKK.
23. 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.
24. 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.
Samsung Denmark Research Center ApS · Annual report 2022 31