PAGE 1
YGGDRASIL ANNUAL REPORT 2021-22
{
WeAnalyse();
WeCode();
WeTrade();
}
Annual report for the financial year
1 July 2021 - 30 June 2022
The annual report was presented and
approved at the Company’s annual
general meeting
on
chairman of the annual general meeting
2022
With IT at the
basis of everything
20 December
PAGE 2
YGGDRASIL ANNUAL REPORT 2021-22
Statement by the Board of Directors
and the Executive Board
Independent auditor’s report
Management’s review
Company details
Letter from the CEO
Financial highlights
Market risk management
The Yggdrasil company
What we do
How we work
Partner programme
External uncertainties
3
4
7
8
9
11
13
17
17
19
27
29
31
312
32
33
33
34
35
36
37
37
38
40
40
41
Financial statements
1 July 2021 – 30 June 2022
Income statement
Allocation
Statement of other comprehensive
income
Allocation
Balance sheet
Statement of changes in equity
Cash flow statement
Income statement
Statement of other comprehensive
income
Balance sheet
Statement of changes in equity
Cash flow statement
Notes
GetContents();
Executive Board:
Board of Directors:
Financial report 2022
Statement by the
Board of Directors and
the Executive Board
PAGE 3
YGGDRASIL ANNUAL REPORT 2021-22
Opinion
Independent
auditor’s report
Basis for opinion
PAGE 4
YGGDRASIL ANNUAL REPORT 2021-22
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YGGDRASIL ANNUAL REPORT 2021-22
Emphasis of matter in
the financial statements
Management’s responsibility
for the financial statements
Auditor’s responsibilities for the audit of
the financial statements
Statement on the Management’s review
PAGE 6
CVR no. 25 57 81 98
Steffen S. Hansen
ANNUAL REPORT 2021-22YGGDRASIL
Management’s review
Financial highlights
of the group
Principal activities
The principal activity of the Company is
to be a supportive owner of subsidiar-
ies within Yggdrasil Commodities Aps to
secure the needed resources, to support
the activity in the subsidiaries and to make
a growing positive impact by generating
attractive positive long-term returns on
DKK'000 2021/22 2020/21 2019/20* 2018/19*
Revenue 2,393,127 449,564 14,417 8,133
Gross profit 165,473 45,573 - -
Operating profit 149,307 34,899 655 191
Profit/loss from finance income and costs -1,735 -55 220 1,781
Profit for the year 109,498 27,677 5,875 1,931
Total assets 249,882 81,429 32,655 15,180
Equity 145,856 35,319 20,112 14,314
Cash flows from operating activities 79,762 4,142 1,243 69
Cash flows from investing activities 0 718 586 -200
Cash flows from financing activities -11,959 11,174 -1,603 300
Total cash flows 67,803 16,034 227 169
*Parent company figures (one-line consolidation)
PAGE 7
YGGDRASIL ANNUAL REPORT 2021-22
the assets of Yggdrasil Commodities Aps.
All employees of the Group are employed
in the Company, and services are rendered
to subsidiaries on an arm´s length basis.
The principal activity of the subsidiaries is
trading power in different markets.
Company details
CVR no. 40 30 06 4 3
Established: 28 February 2019
Registered office: Aalborg
Financial year: 1 July – 30 June
Board of Directors
Søren Agersbæk Jensen
Søren Jørgensen
Rasmus Nordestgaard Jensen
Jørgen Lindholm Lau
Søren Bondo Andersen
Executive Board
Søren Bondo Andersen
Søren Agersbæk Jensen
Auditor
KP
MG
Statsautoriseret Revisionspartnerselskab
Østre Havnegade 22D
9000 Aalborg
Denmark
CVR no. 25 57 81 98
Annual general meeting
The annual general meeting will be held on
20 December 2022.
PAGE 8
YGGDRASIL ANNUAL REPORT 2021-22
Company
details
PAGE 9
YGGDRASIL ANNUAL REPORT 2021-22
Yggdrasil quadrupled its operating profit to DKK 149m for the
financial year 2021-22. The quadruplication in growth for the
second year in a row was accomplished through increased
investments, activities in further power markets, expansion
of cross-border trading, and the introduction of short-term
financial trading.
The financial year 2021-22 at Yggdrasil has
been both successful and extraordinary.
We increased our business and earnings
throughout the year while navigating in
very volatile power markets during the
last two quarters of the financial year. In
March, the European energy crisis began
resulting in very volatile energy markets.
We have seen fluctuating power prices
like never before, and the combination of
a data-driven trading approach and risk
management has stood the test of time
and proven its value.
Despite the volatile power markets, our
performance has been steady throughout
the year. We have continued to finetune
the IT platform on which our business is
based. Our goal is to trade power 100%
data-driven and automated, and we are
ready to scale our business even further.
Letter from the CEO
Solid performance
and a scalable
business
DKK
Operating profit
149m
Our people
Yggdrasil is nothing without our people.
Our ambition is for each member of the
team to do what he or she does best. Our
goal is not to increase our headcount;
rather, we want the right person for every
position. We apply the same approach to
our core business as well as to each other
in the office: transparent and straight-to-
the-point.
We dedicate focus to developing our
talents and preserving our great culture
because we want to foster the best possi-
ble workplace. The start-up culture is a
key part of our business DNA, and we wish
to keep it that way while generating the
advantages of operating as a well-estab-
lished company.
Søren Agersbæk Jensen, Founder and CEO
{“
Four years into business,
Yggdrasil has established itself
among the top-performing
energy traders. Our ambitions
are high, and with a highly
scalable business and IT
platform, so is our potential.
PAGE 10
YGGDRASIL ANNUAL REPORT 2021-22
Positive outlook for the coming year
The focus for the next year at Yggdrasil is
to scale the business further and utilise
the knowledge and experience we have
accumulated in the existing markets. We
are ready to reap the benefits from the
power trading platform. Looking towards
the financial year 2022-23, we expect our
steady growth to continue and thus lead
to an increased operating profit and a
positive cash flow.
We will continue our growth focusing on
the following business opportunities:
•
Opening new markets and developing
existing markets – we are for instance
opening an office in Tokyo to support
one of our growth markets.
•
Increasing the volume of power per trade
and the total number of trades.
•
Further expanding the power trad-
ing product range, i.e. financial trading,
day-ahead, intraday, cross-border, area
spread, and time spread.
Yggdrasil achieved a strong quadruplication in growth in the
financial year 2021-22. Revenue grew to DKK 2,393m, and
we achieved an operating profit of DKK 149m, representing a
growth of 432% and 328%, respectively.
Highlights of the
year 2021-22
Financial highlights
The solid growth was accomplished
through a significant 59% increase in
traded MWh compared to 2020-21 and
an increase in our active power markets to
26, adding 8 power markets in the financial
year. Concurrently, we have reduced the
total earnings proportion from Yggdrasil’s
top five markets from 69% to 45%, thus
diversifying our trading activities and
significantly reducing market risk expo
-
sure.
We achieved a higher operating profit for
the financial year than expected in the
beginning of the year. We benefited from
an access to new power markets that was
easier and faster than anticipated, and
our business model using an automated
approach to trading power has proven its
worth, emphasised by the performance in
the volatile power markets.
PAGE 11
YGGDRASIL ANNUAL REPORT 2021-22
Total number of trades
FY 19/20
Remaining
markets
Top 5
markets
FY 20/21
FY 2019-20
438,591
FY 2020-21
816,760
FY 2021-22
1,070,376
2
2
%
3
1
%
Top markets & remaing markets
earnings before costs
FY 21/22
5
5
%
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YGGDRASIL ANNUAL REPORT 2021-22
Accumulated earnings before cost on a daily basis
300,000
DKK’000
250,000
200,000
150,000
100,000
50,000
0
6/30/2019
1/1/2020
1/1/2021
1/1/2022
6/30/2020
6/30/2021
6/30/2022
DKK’000
DKK
FY 2021-22
185,248
DKK
FY 2020-21
53,991
DKK
FY 2019-20
16,927
Accumulated earnings before cost
PAGE 13
YGGDRASIL ANNUAL REPORT 2021-22
Our highest priority at Yggdrasil is to diversify our portfolio,
which will enable us to better manage risk exposure, minimise
losses, and create on-going positive returns. We monitor our
power markets carefully to prevent substantial financial losses.
Managing
volatile markets
Risk management
YGGDRASIL ANNUAL REPORT 2021-22
In close cooperation with the two found-
ers, Yggdrasil’s CEO and COO, the Board
of Directors is responsible for the risk
strategy. Risk management is para
-
mount throughout the organisation and is
adhered to and implemented by everyone
in the company.
Our growth strategy involves adding
new markets to the portfolio and stead-
ily increasing investments. Each new
market adds to the market risk, but if the
price correlation to existing markets is
low, Yggdrasil’s combined risk exposure
decreases. To limit our risk exposure
when entering a new market, we follow a
well-defined risk management procedure.
Market risk management is divided into
the following focus areas:
• Market diversification
• Geographical spread
• Adding new markets
• Increasing investments
Market diversification
Market diversification is a very important
focus point in Yggdrasil’s risk manage-
ment. We focus on spreading investments
in many different power markets to avoid
that a single power market becomes too
dominant in our portfolio. Hence, for each
single market added to the portfolio, we
dilute market risk further and reduce
the potential of financial losses without
compromising the gains.
Søren Bondo Andersen, Founder and COO
The algorithms we use to
predict power prices are
very similar from one market
to another. Once we have
documented that our trad-
ing strategies work in one
market, and earnings start
to increase, we increase the
volume of trades.
{“
PAGE 14
Geographical spread
Yggdrasil is active in three continents, and
trading power in markets geographically
far apart is one of the greatest strengths
in our portfolio. Power prices are highly
dependent on weather conditions, and big
leaps in prices are often caused by unfore-
seen weather changes. Hence, markets
located in the same regions are affected
by the same weather conditions, which
makes investments correlate.
Therefore, when deciding on a new market,
the graphical market location is decisive.
By spreading investments in different
continents, the risk exposure to the same
weather systems is diluted. Uncorrelated
weather conditions lead to uncorrelated
investments.
YGGDRASIL ANNUAL REPORT 2021-22
Current markets
Upcoming markets
PAGE 15
PAGE 16
Adding new markets
To follow our growth strategy, we contin-
uously add new markets to the portfolio.
Each market has its own rules and require-
ments, so trading a new market is risky. To
manage the risk of selecting and entering
a new market, we go through some initial
steps.
Lars Weber, Partner
{“
Expanding our footprint to new
markets is key to our company.
Yggdrasil’s DNA is designed to
thrive quickly in a new area and
to keep expanding without limits
to growth.
YGGDRASIL ANNUAL REPORT 2021-22
1.
Initially, it is carefully analysed if the
influence of the weather is specific to
the new market only and not spilling
over into our existing markets.
2.
Secondly, test trades are conducted
in the new market to verify spec-
ific trading rules, the settlement
process with counterparties, collat-
eral requirements, and other market
-specific details.
3.
Thirdly, we need to experience how
the market reacts to our trading, so we
finetune our trading strategies.
When the above steps have been com-
pleted successfully, the new market is
included in the Yggdrasil portfolio.
Increasing investments
A new market gives Yggdrasil new invest-
ment opportunities. Once a new market
is included in the Yggdrasil portfolio, we
start trading the market and increasing
investments.
For our diversification strategy to work, the
investments in each of our markets should
be at the same risk level to balance the
total risk exposure. When the investments
in the new market reach the same level as
the existing portfolio, the market diversifi-
cation is higher than before and hence, the
overall risk exposure decreases, diluting
Yggdrasil’s risk profile.
Each new market supports growth in two
ways. It offers the potential of increased
investments and positive earnings without
the full impact of higher risk. Further, for
each new market added, we can increase
investments in all our markets as Yggdra-
sil’s overall risk profile is further diluted.
Positive trading days
and biggest accumulated
draw down
FY 2019-20FY 2020-21FY 2021-22
PAGE 17
YGGDRASIL ANNUAL REPORT 2021-22
77%
-0.7m DKK
82%
-0.7m DKK
89%
-1.4m DKK
PAGE 18
YGGDRASIL ANNUAL REPORT 2021-22
At Yggdrasil, we engage in short-term power trading; we buy
and sell power in power markets across the globe. Even though
Yggdrasil is a small power trading company, we take part in
increasing the share of renewables into the power markets
globally. Power trading companies add liquidity to the markets
and support the power price formation by predicting future
power prices, thus rendering more stable power prices
possible.
What we do
Our company
Headquartered in Denmark , Yggdrasil
gains from decades of local market expe-
rience in energy trading. We engage in
power markets across the globe, and we
are in close dialogue with our counterpar-
ties. We share our knowledge from trading
power in our different markets and thereby
help newly liberalised power markets to
develop.
We consider ourselves as much a tech
company as a power trading company
because IT is the foundation of everything
we do. Our goal is to trade power using a
purely automated approach.
The entire Yggdrasil team is dedicated to
our data-driven approach to power trad-
ing, which we have defined in our compa-
ny’s ‘what we do’.
24h
Power markets trade 24
hours per day. It accumu-
lates to 8,760 hours per year
where we can trade power in
each of our markets.
We define short-term power
as power that is delivered
within the next seven days. In
this timespan, the accuracy of
weather forecasts is optimal
for algorithmic trading.
PAGE 19
YGGDRASIL ANNUAL REPORT 2021-22
{
WhatWeDo
We analyse();
We code();
We trade();
With IT as
the basis
of everything
;
}
We analyse vast amounts of historic
weather data and how the weather
forecast is correlated to power
prices. This is the basis for the
algorithms on which we base our
power trading.
We code our framework for
data management and for
interaction with our counter-
parties in the market.
We trade power in short-term
markets across the globe.
YGGDRASIL ANNUAL REPORT 2021-22
How we work
Our company
Even though Yggdrasil is a young company,
we are proud of our strong and unique
culture, and we are determined to continue
being the great workplace we all cherish.
We focus both on a friendly work environ-
ment and on operating our company in an
environmentally friendly way.
Thomas Tynor, Partner and Head of IT
{“
Our organisation is growing, yet we
focus on preserving our great start-up
culture. We do not grow too fast, and
we ensure that our new colleagues are
the right fit for the team and the way
we work, and that they understand and
accept our values.
PAGE 20
We are committed to our five values. They
are the essence of our professional coop-
eration and how we treat each other. They
are our guideline for our daily life at the
office, and they define our approach to
power trading.
The Yggdrasil
values
PAGE 21
YGGDRASIL ANNUAL REPORT 2021-22
Above all
we execute
Financial
performers
Algo
before ego
Data
wizards
We are
humans
PAGE 22
YGGDRASIL ANNUAL REPORT 2021-22
Jacob Ulf Olsen,
Partner and Power Market Specialist
We automate and execute!
Our business is based on
our trading strategies, which
state how we trade.
We both take action and
make decisions. And we have
loads of fun doing it.
“We have tasks to do, not hours
to fill, and we are straight-to-the-
point. The size of our company
enables a very lean organisation,
and we work closely together
towards the same goal. We are a
strong team, and we all benefit
from being surrounded by highly
talented colleagues.”
{
“TotalTWhTraded”: 7
}
Above all
we execute
PAGE 23
YGGDRASIL ANNUAL REPORT 2021-22
We are serious about trading and
making a profit. Our business is all
about quantified predictions. We
track our results closely, and we
love the rush of winning.
Izabela Prokop,
Partner and Operations Manager
“To make a profit means, we
must make sure not to lose
more than we win. To minimise
financial losses, we dedicate IT
resources to monitor our mar
-
kets and manage market risks.
We focus on geographical
diversification to eliminate
correlated losses, and we
enter new markets following a
precautionary principle.
Constantly rebalancing market
risks, we can increase our
investments and our profits.”
Financial
performers
PAGE 24
YGGDRASIL ANNUAL REPORT 2021-22
At Yggdrasil, data rules.
We appreciate a quick discussion,
but the best P&L graph clears the
table. We enjoy coding and swift
execution over office meetings.
All decisions are taken where the
impact is felt.
Henrik Hansen,
Partner and Quantitative Analyst
“We trade power based on data analysis
and an algorithmic approach. Our goal is a
scalable trading platform where the full trade
life cycle is automated. It is a power trading
approach that keeps the organisation small
and agile with huge cost reductions as a
result. Automated trading is where the power
trading business is headed, and it is great to
be among the front runners.”
{
“dataVolumeStored”: “400TB”
}
Algo
before
ego
PAGE 25
YGGDRASIL ANNUAL REPORT 2021-22
We are serious about code,
and everyone uses their first-class
talent in every digit. Every day, we
develop top of the world
quantitative trading strategies to
maximise our growth.
Lasse Faarbæk,
Partner and Lead Architect
“We are convinced that
we can crack the code
and fully automate
power trading. We know
how to process and
visualise vast amounts
of data, and we know
how to turn it into know-
ledge and value. We look
for patterns in data and
let the machines do the
rest.”
Data
wizards
PAGE 26
YGGDRASIL ANNUAL REPORT 2021-22
Morten Flyger,
Partner and Software Architect
Trust is important at Yggdrasil,
and we support each other. Our
work environment is casual, with
a friendly tone of voice towards
each other, and our office
locations are flexible: first and
foremost, we are humans.
“It is not all data and
power trading strategies.
Going to work should be
fun. We always take the
time to help a colleague,
and we allow each other to
make mistakes. To be hap-
py and content in life, we
all need balance and flexi-
bility, and we expect each
other to choose family and
private life over work. One
size does not fit all; our
preferences are different.”
We are
humans
YGGDRASIL ANNUAL REPORT 2021-22
The Yggdrasil
talents
Yggdrasil’s partner programme
At the centre of it all is the Yggdrasil team. It is solely because
of our extremely gifted talents that our company exists;
talents who are credited with the great results in our fourth
annual report, and annual results that we are extremely proud
of. We want everyone to benefit from their contribution and
get a share of what everyone accomplishes together.
In the Yggdrasil team, we have accumu-
lated 90 years of experience in the global
energy markets and 60 years of experi-
ence with software development. But it is
not only about code and trading strategies.
We also employ great people in back-of-
fice and support functions, with everyone
doing their share of getting our business
to run smoothly.
We value all our employees equally much,
and each contribution is important to
pursue our great visions. Therefore, we
To maintain and foster Yggdrasil’s very
strong work culture and great values in
our international atmosphere, we have
increased focus on human resource
management. We wish to prioritise and
maintain high work satisfaction and a very
low staff turnover.
want to include all our employees in
our partner programme comprising of
warrants and shares.
No matter whether you are joining our
analytics team, our IT-team, our power
market team, or any of the other func
-
tions in our company, we strive to make
everyone a partner from day one. At the
end of our financial year 2021-22, Yggdrasil
counts 18 full-time employees, of which 17
are partners.
18
team
members
nationalities
End of year
End of year
5
PAGE 27
PAGE 28
YGGDRASIL ANNUAL REPORT 2021-22
{“
If you find your tasks interesting,
know what is expected of you, and feel
appreciated then you are motivated and
even better at your job. You need to feel
both capable and challenged at the same
time.
As a company our responsibility is to
foster a culture and an organisation that
enable our employees to be a success at
what they do. We must be transparent
about how everyone contributes to the
company’s overall objectives and what we
expect of each other.
Ann Sloth Hansen,
HR Partner and Partner
PAGE 29
The global energy markets are extremely
volatile as we enter the new financial
year. Despite our positive outlook for the
year and a risk-averse strategy, Yggdra-
sil is exposed to external risk factors and
uncertainties caused by the worldwide
energy crisis. Hence, the unprecedented
volatilities in the power markets add some
revenue uncertainty for the coming finan-
cial year.
One uncertainty to highlight for Yggdra-
sil’s coming year is the risk of the Danish
government imposing windfall profit taxes
on energy companies, and the potential
consequences.
YGGDRASIL ANNUAL REPORT 2021-22
External
uncertainties
PAGE 30
YGGDRASIL ANNUAL REPORT 2021-22
According to note 2.
In accordance with the shareholder agree-
ments for the subsidiaries Dvalin ApS and
Nidhog ApS, an event has occurred in
2020/21 which has had the outcome that
the Company has purchased shares held
by minority shareholders in the subsidi-
aries at a total purchase price of DKK 6.9
million. The minority shareholders have
objected to this, why the ownership of
the shares at year end is therefore legally
questioned.
For accounting purposes, the assess-
ment has been made that the Company,
based on the provisions laid down in the
shareholder agreements, exercises control
over the shares owned by minority share-
holders, and against this background, the
subsidiaries Dvalin ApS and Nidhog ApS
were recognised as fully-owned subsidiar-
ies at 1 April 2021, and the purchase prices
were recognised as liabilities.
The assessment that the Company exer-
cises control over the shares owned by
minority shareholders is supported by
updated opinion from external lawyer.
The outcome of the dispute with the
minority shareholders may have the
outcome that the provisions laid down in
the shareholder agreements are disre-
garded. This may have an impact on
whether the Company exercises control
over the shares owned by minority share-
holders and the purchase prices.
After balance sheet date, an arbitration
case has been initiated.
The consolidated income statement is
not impacted by the outcome of the legal
dispute.
The income statement of the Parent
Company can be impacted due to recog-
nition based on ownership. Recognised
results from shares acquired affect results
for the financial year 21/22 by DKK 11.6
million and for the financial year 2020/21
by less than DKK 1 million.
Events after the balance sheet date
No events have occurred after the balance
sheet date to this date that would influ-
ence the assessment and evaluation of
this annual report in any substantial way.
Uncertainty regarding
recognition and
measurement
of equity investments
PAGE 31
YGGDRASIL ANNUAL REPORT 2021-22
Financial
statements
1 July 2021 – 30 June 2022
DKK Note 2021/22 2020/21
Revenue from sale of power 3 2,393,127,045 449,564,212
Purchase of power -2,304,682,080 -434,007,574
Net income from trading commodity derivatives 77,028,518 30,016,594
Gross profit 165,473,483 45,573,232
Staff costs 4 -9,712,308 -6,811,027
Administrative expenses -6,454,319 -3,863,676
Operating profit 149,306,856 34,898,529
Income from equity investments in associates 7 0 689,994
Finance income 5 102,288 824,087
Finance costs 5 -1,837,167 -878,743
Profit before tax 147,571,977 35,533,867
Tax on profit for the year 6 -38,073,554 -7,856,438
Profit for the year 109,498,423 27,677,429
DKK 2021/22 2020/21
Parent Company 109,498,423 26,724,372
Minority interests 0 953,057
Consolidated financial statements
1 July 2021 – 30 June 2022
Income statement Allocation
PAGE 32
YGGDRASIL ANNUAL REPORT 2021-22
DKK 2021/22 2020/21
Profit for the year 109,498,423 27,677,429
Other comprehensive income that will be
reclassified subsequently to the profit or loss
Value adjustment of hedging instruments -1,904,880 -212,845
Tax effect of equity adjustments 419,074 46,826
Exchange rate adjustments on translation of subsidiaries 2,449,962 -662,337
Total comprehensive income 110,462,579 26,849,073
DKK 2021/22 2020/21
Parent Company 110,462,579 25,896,016
Minority interests 0 953,057
Consolidated financial statements
1 July 2021 – 30 June 2022
Statement of incomprehensive income Allocation
PAGE 33
YGGDRASIL ANNUAL REPORT 2021-22
DKK Note 30/6 2022 30/6 2021 1/7 2020
ASSETS
Non-current assets
Equity investments in associates 7 0 0 278,445
Deferred tax assets 0 22,518 29,649
Current assets
Receivables
Trade receivables 16 77,176,881 11,280,543 159,119
Deposits 45,139,820 27,371,795 7,558,689
Other receivables 518,383 280,269 53,164
Cash and cash equivalents 9 127,046,978 42,475,644 17,914,286
Total current assets 249,882,062 81,408,251 25,685,258
TOTAL ASSETS 249,882,062 81,430,769 25,993,352
Consolidated financial statements
1 July 2021 – 30 June 2022
Balance sheet
PAGE 34
YGGDRASIL ANNUAL REPORT 2021-22
DKK Note 30/6 2022 30/6 2021 1/7 2020
EQUITY AND LIABILITIES
Equity 10
Contributed capital 3,073,000 3,073,000 3,073,000
Hedge reserve -201,964 -432,514 -266,495
Retained earnings 142,985,037 32,678,909 17,305,874
Total equity 145,856,073 35,319,395 20,112,379
Non-current liabilities
Credit institution 11 0 6,000,000 0
Current liabilities
Credit institution 11 6,000,000 0 0
Trade payables 11 49,811,739 5,406,132 185,876
Derivative financial instruments 11,16 258,930 394,252 345,000
Income tax payable 36,810,288 9,456,536 1,599,740
Amounts owed to shareholders 11 0 11,959,003 0
Amounts owed to third parties 11 6,953,057 6,953,057 0
Other payables 11 4,191,975 5,942,394 3,750,257
Total current liabilities 104,025,989 40,111,374 5,880,873
Total non-current and
current liabilities
TOTAL EQUITY AND LIABILITIES 249,882,062 81,430,769 25,993,252
DKK
Con-
tributed
capital
Hedge
reserve
Retained
earnings
Total equity
Parent
Company
Minority
interests Total equity
Equity at 1 July 2020 3,073,000 -266,495 17,305,874 20,112,379 0 20,112,379
Comprehensive
income
Profit for the year 0 26,724,372 26,724,372 953,057 27,677,429
Value adjustment of
hedging instruments
-212,845 0 -212,845 0 -212,845
Tax effect of equity
adjustments
Exchange rate adjust,
subsi. in foreign curr.
Total comprehensive
income
Transactions with
owners
Sale of minority shares 0 0 0 6,000,000 6,000,000
Acqui. of minority
shares
Extraordinary
dividends
Total transactions with
owners
Equity at 30 June
2021
Consolidated financial statements
1 July 2021 – 30 June 2022
Statement of changes in equity
PAGE 35
YGGDRASIL ANNUAL REPORT 2021-22
DKK
Con-
tributed
capital
Hedge
reserve
Retained
earnings
Total equity
Parent
Company
Minority
interests Total equity
Equity at 1 July 2021 3,073,000 -432,514 32,678,909 35,319,395 0 35,319,395
Comprehensive
income
Transfer 124,999 -124,999 0 0 0
Profit for the year 0 109,498,423 109,498,423 0 109,498,423
Value adjust. of
hedging instruments
Tax effect, equity
adjust.
-29,771 448,845 419,074 0 419,074
Exchange rate adjust.
subsidiaries
Total comprehensive
income
Transactions owners
Share-based
payments
Total transactions
with owners
Equity at
30 June 2022
DKK
Note 2021/22 2020/21
Profit for the year 109,498,423 27,677,429
Other adjustments of non-cash operating items 12 39,882,534 7,221,099
Cash generated from operations before
changes in working capital
Changes in working capital 13 -55,746,564 -30,702,299
Cash generated from operations 93,634,393 4,196,229
Paid net finance income/finance costs -3,129,608 -54,655
Paid taxes during the year -10,742,320 0
Cash flows from operating activities 79,762,465 4,141,574
Sale of equity investments 0 718,009
Cash flows from investing activities 0 718,009
Loan credit institution 0 6,000,000
Loan from shareholders -11,959,003 -825,997
Sale of minority shares 0 6,000,000
Consolidated financial statements
1 July 2021 – 30 June 2022
Cash flow statement
PAGE 36
YGGDRASIL ANNUAL REPORT 2021-22
DKK
Note 2021/22 2020/21
Cash flows from financing activities 14 -11,959,003 11,174,003
Cash flows for the year 67,803,462 16,033,586
Cash and cash equivalents at the
beginning of the year
Currency adjustment cash and cash equivalents 2,268,600 1,574,715
Cash and cash equivalents at year end 9 105,594,649 35,522,587
DKK Note 2021/22 2020/21
Revenue 3 14,417,043 8,133,058
Staff costs 4 -9,712,308 -6,811,027
Administrative expenses -4,844,019 -3,172,631
Operating loss -139,284 -1,850,600
Income from equity investments in subsidiaries 109,295,386 27,869,574
Income from equity investments in associates 0 689,994
Finance income 5 871,705 0
Finance costs 5 -441,734 -245,218
Profit before tax 109,586,073 26,463,750
Tax on profit for the year 6 -87,650 260,622
Profit for the year 109,498,423 26,724,372
DKK Note 2021/22 2020/21
Profit for the year 109,498,423 26,724,372
Other comprehensive income that will be
reclassified subsequently to the profit or loss
Value adjustment of hedging instruments -1,904,880 -212,845
Tax effect of equity adjustments 419,074 46,826
Exchange rate adjustments on translation of
subsidiaries
2,449,962 -662,337
Total comprehensive income 110,462,579 25,896,016
Parent company financial statements
1 July 2021 – 30 June 2022
Income statement
Statement of other
comprehensive income
PAGE 37
YGGDRASIL ANNUAL REPORT 2021-22
DKK Note 2021/22 2020/21
ASSETS
Non-current assets
Equity investments in associates 7 0 0
Equity investments in subsidiaries 8 109,716,395 45,737,047
Deferred tax asset 0 11,675
Total non-current assets 109,716,395 45,748,722
Current assets
Receivables
Deposits 92,651 450,000
Amounts owed by subsidiaries 52,892,908 17,405,465
Income tax receivable 599,920 182,884
Other receivables 147,353 127,882
Total receivables 53,732,832 18,166,231
Cash and cash equivalents 9 22,642,559 10,068,064
Total current assets 76,375,391 28,234,295
TOTAL ASSETS 186,091,786 73,983,017
Balance sheet
PAGE 38
YGGDRASIL ANNUAL REPORT 2021-22
DKK Note 2021/22 2020/21
EQUITY AND LIABILITIES
Equity
Contributed capital 10 3,073,000 3,073,000
Reserve for net revaluation
under equity method
75,491,090 16,245,742
Hedge reserve -201,964 -432,514
Retained earnings 67,493,947 16,433,167
Total equity 145,856,073 35,319,395
Current liabilities
Amounts owed to subsidiaries 28,935,116 13,503,255
Derivative financial instruments 11 258,930 394,252
Income tax payable 0 0
Amounts owed to shareholders 11 0 11,959,003
Amounts owed to third parties 6,953,057 6,953,057
Other payables 4,088,610 5,854,055
Total current liabilities 11 40,235,713 38,663,622
TOTAL EQUITY AND LIABILITIES 186,091,786 73,983,017
Parent company financial statements
1 July 2021 – 30 June 2022
DKK
Contributed
capital
Reserve for net
revaluation under the
equity method
Hedge
reserve
Retained
earnings Total equity
Equity at 1 July 2020 3,073,000 3,638,734 -266,495 13,667,140 20,112,379
Comprehensive
income
Profit for the year 0 13,269,345 0 13,455,027 26,724,372
Value adjustment of
hedging instruments
0 0 -212,845 0 -212,845
Tax effect of equity
adjustments
0 0 46,826 0 46,826
Exchange rate adjust-
ment, subsidiary in
foreign currency
0 -662,337 0 0 -662,337
Total comprehensive
income
3,073,000 16,245,742 -432,514 27,122,167 46,008,395
Transactions with
owners
Extraordinary
dividends
0 0 0 -10,689,000 -10,689,000
Total transactions
with owners
0 0 0 -10,689,000 -10,689,000
Equity at 30 june
2021
3,073,000 16,245,742 -432,514 16,433,167 35,319,395
Statement of changes in equity
PAGE 39
YGGDRASIL ANNUAL REPORT 2021-22
DKK
Contributed
capital
Reserve for net
revaluation under the
equity method
Hedge
reserve
Retained
earnings Total equity
Equity at 1 july 2021 3,073,000 16,245,742 -432,514 16,433,167 35,319,395
Comprehensive
income
Transfer 0 0 124,999 -124,999 0
Profit for the year 0 56,795,386 0 52,703,037 109,498,423
Value adjustment of
hedging instruments
0 0 135,322 -2,040,202 -1,904,880
Tax effect of equity
adjustments
0 0 -29,771 448,845 419,074
Exchange rate adjust-
ment, subsidiary in
foreign currency
0 2,449,962 0 0 2,449,962
Total comprehensive
income
0 59,245,348 230,550 50,986,568 110,462,578
Transactions with
owners
Warrants 0 0 0 74,100 74,100
Total transactions
with owners
0 0 0 74,100 74,100
Equity at 30 June
2022
3,073,000 75,491,090 -201,964 67,493,947 145,856,073
Parent company financial statements
1 July 2021 – 30 June 2022
DKK
Note 2021/22 2020/21
Profit for the year 109,498,423 26,724,372
Other adjustments of non-cash operating items 12 -109,642,492 -28,574,972
Cash generated from operations before
changes in working capital
-144,069 -1,850,600
Changes in working capital 13 -15,926,836 -3,180,282
Cash generated from operations -16,070,905 -5,030,882
Paid net finance income/finance costs -1,605,284 -245,218
Paid taxes during the year 0 0
Cash flows from operating activities -17,676,189 -5,276,100
Equity investments in subsidiaries -4,734,000 -11,734,064
Sale of equity investments 0 6,718,009
Received dividends 52,500,000 13,000,000
Cash flows from investing activities 47,766,000 7,983,945
Change in intercompany loan -20,055,582 837,480
Loan from shareholders 11 -11,959,003 -825,997
Cash flows from financing activities -32,014,585 11,483
Cash flow statement
PAGE 40
YGGDRASIL ANNUAL REPORT 2021-22
DKK
Note 2021/22 2020/21
Cash flows for the year -1,924,774 2,719,328
Cash and cash equivalents at the
beginning of the year
3,115,007 395,679
Cash and cash equivalents at year end 9 1,190,233 3,115,007
Parent company financial statements
1 July 2021 – 30 June 2022
PAGE 41
Consolidated and parent company
financial statements
1 July 2021 – 30 June 2022
1. Accounting policies
2. Estimation uncertainties and judgements
3. Revenue
4. Staff costs
5. Finance income and costs
6. Tax on profit for the year
7. Equity investments in associates
8. Equity investments in subsidiaries
9. Cash and cash equivalents
10. Contributed capital and capital management
11. Liabilities
12. Other adjustments
13. Changes in working capital
14. Changes in liabilities from financing activities
15. Contractual obligations, contingencies, etc.
16. Financial risks and the use of derivative financial instruments
17. Classification of financial instruments and derivatives
18. Related party disclosures
19. Events after the balance sheet
20. New accounting regulation
Overview
of notes
YGGDRASIL ANNUAL REPORT 2022
PAGE 42
YGGDRASIL ANNUAL REPORT 2021-22
1. Accounting
policies
The annual report for the financial year
1 July 2021 – 30 June 2022 has been
prepared in accordance with International
Financial Reporting Standards as adopted
by the EU and additional Danish disclosure
requirements. The Company is classified
as a reporting class c entity according to
the Danish Financial Statements Act.
Yggdrasil Commodities ApS’ annual report
is presented in DKK.
For all periods up to and including the year
ended 30 June 2021 the Company and its
subsidiaries prepared their separate and
individual financial statements in accord-
ance with IFRS.
The consolidated financial statements
for the year ended 30 June 2021 are the
first consolidated financial statements
prepared by the Company. See below for
information on first-time adoption of IFRS
for the consolidated financial statements.
The accounting policies set out below have
been used consistently in respect of the
financial year.In 2021/22, the Company
implemented all new and amended
IFRSs that are applicable and which have
not affected the accounting policies.
The accounting policies are therefore
unchanged from previous year, except for
the preparation of consolidated financial
statements.
First-time adoption of IFRS for
consolidated financial statements
The Company has not previously prepared
consolidated financial statements. The
consolidated financial statements for
2021/22 are the first consolidated financial
statements prepared in accordance with
IFRS and comply with IFRSs adopted by the
EU applicable as at 30 June 2022, together
with the comparative period information
for the year ended 30 June 2021. In prepar-
ing the consolidated financial statements,
the opening statement of consolidated
financial position was prepared as at 1
July 2020, the date of adoption of IFRS
for the consolidated financial statements.
As all entities in the group have prepared
separate and/or individual financial state-
ments in accordance with IFRS in previous
years, the Group has applied the exemp-
tion in IFRS 1 D17 to measure the group’s
assets and liabilities at the same amounts
as those of the parent and subsidiaries,
except for consolidation adjustments.
Consolidated comparative figures for
2018/19 and 2019/20 have not been
prepared.
Consolidated financial statements
The consolidated financial statements
comprise the Parent Company, Yggdrasil
Commodities ApS, and its subsidiaries.
Subsidiaries are entities controlled by
the Group. The Group ‘controls’ an entity
when it is exposed to, or has rights to, vari-
able returns from its involvement with the
entity and has the ability to affect those
returns through its power over the entity.
The financial statements of subsidiaries
are included in the consolidated finan-
cial statements from the date on which
control commences until the date on
which control ceases. On consolidation,
intra-group income and expenses, share-
holdings, intra-group balances and divi-
dends and realised and unrealised gains
and losses on intra-group transactions are
eliminated.
The Group’s consolidated financial state-
ments 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 state-
ments of each entity are measured using
that functional currency.
Differences in exchange rates arising
from the translation of foreign subsidiar-
ies’ equity at the beginning of the year at
the exchange rates at the balance sheet
date and from the translation of income
statements from the average exchange
rates for the currency exchange rates at
the balance sheet date are recognised
directly in other comprehensive income
Foreign currency translation
Transactions in foreign currencies are
translated into the functional currency at
the exchange rates at the transaction date.
Monetary assets and liabilities denomi-
nated in foreign currencies are translated
into functional currency at the exchange
rates at the reporting date.
Foreign currency differences are gener-
ally recognised in profit and loss except
for certain equity instruments available
for sale, financial liabilities and hedging
instruments.
PAGE 43
YGGDRASIL ANNUAL REPORT 2021-22
Derivative financial instruments
Derivative financial instruments are
initially recognised at fair value on the date
on which a derivative contract is entered
into and are subsequently remeasured at
fair value.
Derivatives are carried as financial assets
when the fair value is positive and as finan-
cial liabilities when the fair value is nega-
tive.
The fair value adjustments of sales and
purchase commodity contracts that are
derivatives are recognised in the state-
ment of profit or loss as net income/loss
from commodity derivatives. Trading
costs and other costs directly related
to the net income are recognised corre-
spondingly.
The fair value adjustments of derivative
financial instruments, such as forward
currency contracts, that are designated
to hedge its foreign currency risks arising
from net investments in subsidiaries. are
recognised directly in equity.
Revenue from sale of power
Revenue from sale of power comprises of
sale of physical electricity to counterpar-
ties.
In the process of applying IFRS 15, the
Company identifies contracts, identifies
performance obligations, determines the
transaction price, allocate the transaction
price and recognise accordingly.
Each electricity agreement with the
counterparties are treated as individual
contracts.
A contract with a counterparty includes
a single performance obligation because
the Company has determined that the
contract does not provide distinct goods/
services and the promise is satisfied by
transferring control over the electricity to
the customer when it is delivered at the
point of delivery.
Income
statement
The transaction price is the contractually
agreed price excluding amounts collected
on behalf of third parties, e.g. VAT.
Revenue is recognised when control of the
electricity is transferred to the customer
simultaneously with fulfilment, that being
when the electricity is delivered.
Purchase of power
Purchases of physical electricity from
suppliers of electricity are included and
accrued in full after delivery. Trading costs
and other costs are recognised corre-
spondingly.
Net income from trading
commodity derivatives
The sales and purchase of commod-
ity contracts which includes options
and certain forward sales and forward
purchase are financially settled and are
considered in scope of IFRS 9 and corre-
spondently treated as derivatives. Any
gains or losses arising from changes in the
fair value of derivatives are taken directly
to profit or loss. As these contracts are
manged on a portfolio basis a practice
of net settlement is present and trading
costs and other costs directly related
to the net income are recognised corre-
spondingly.
Administrative and personnel expenses
Administrative expenses comprise
expenses incurred during the year for
management and administration of the
Company, including expenses for adminis-
trative staff, management, office premises,
office expenses and depreciation.
Share-based payments
Employees of the Parent Company receive
remuneration in share-based payments,
whereby employees render services as
consideration for warrants (equity-settled
transactions). The cost of equity-settled
transactions is determined by the grant
date fair value using option-pricing valua-
tion model. In the financial statements the
cost is recognised in staff costs together
with a corresponding increase in equity
over the period in which the service condi-
tions are fulfilled (the vesting period). The
cumulative expense recognised for equi-
ty-settled transactions at each report-
ing date until the vesting date reflects
the extent to which the vesting period
1. Accounting
policies
PAGE 44
YGGDRASIL ANNUAL REPORT 2021-22
has expired and the best estimate of the
number of equity instruments that will ulti-
mately vest. The expense or credit in the
income statement for a period represents
the movement in cumulative expenses
recognised at the beginning and at the
end of that period.
Finance income and costs
Finance income and costs comprise
interest income and expense, payables
and transactions denominated in foreign
currencies, amortisation of financial assets
and liabilities as well as surcharges and
refunds under the on-account tax scheme,
etc.
Tax on profit for the year
Tax for the year comprises current tax
for the year and changes in deferred tax,
including changes in tax rates. The tax
expense relating to the profit for the year is
recognised in the income statement at the
amount attributable to the profit for the
year and directly in equity at the amount
attributable to entries directly in equity.
Balance
sheet
Development projects
Costs of development at the Company’s
own expense are capitalised if the projects
are significant, clearly defined and iden-
tifiable, where the technical utilisation
degree and a potential future market or
development potential in the Company
are evidenced. It is also required that the
Company intends to use the outcome of
the project.
The cost of such projects includes direct
wages and a share of the Company’s indi-
rect costs.
Capitalised development costs are amor-
tised upon completion of the development
work on a straight-line basis over the esti-
mated useful lives.
For none significant projects development
costs are expensed.
IT equipment and software
IT equipment and software are measured
at cost, added net revaluations and less
accumulated depreciation and impair-
ment losses. The basis of depreciation is
cost, added net revaluations and less any
expected residual value after the end of
the useful life.
Cost comprises the purchase price and
any costs directly attributable to the
acquisition until the date when the asset
is available for use.
The basis of depreciation, which is calcu-
lated as cost less any residual value, is
depreciated on a straight-line basis over
the expected useful life.
None significant costs are expensed.
Leases
The Company assesses at contract incep
-
tion whether a contract is, or contains, a
lease, that is, if the contract conveys the
right to control the use of an identified
asset for a period of time in exchange for
consideration.
The Company applies a single recogni-
tion and measurement approach for all
leases, except for short-term leases and
leases of low-value assets. The Company
recognises lease liabilities representing
obligations to make lease payments and
right-of-use assets representing the right
to use the underlying assets.
The Company applies the short-term lease
recognition exemption to its short-term
leases of machinery and equipment (i.e.,
those leases that have a lease term of 12
months or less from the commencement
date and do not contain an extension or a
purchase option). It also applies the lease
of low-value assets recognition exemp-
tion to leases of office equipment that
are considered to be of low value. Lease
payments on short-term leases and leases
of low-value assets are recognised as
expense on a straight-line basis over the
lease term.
Investments
Equity investments in subsidiaries and
associates are measured at the propor-
tionate share of the entities’ net asset
value calculated in accordance with the
1. Accounting
policies
PAGE 45
YGGDRASIL ANNUAL REPORT 2021-22
Group’s accounting policies plus or minus
unrealised intra-group gains or losses and
plus or minus the residual value of posi-
tive and negative goodwill calculated in
accordance with the acquisition method.
Equity investments in subsidiaries and
associates with negative net asset values
are measured at DKK 0, and any receiv-
ables from these entities are written
down to the extent that the receivables
are deemed irrecoverable. To the extent
that the Parent Company has a legal or
constructive obligation to cover a nega-
tive balance exceeding the receivable, the
residual amount is recognised as provi-
sions.
Receivables
Receivables are measured at amortised
cost.
Write-downs are made to counter losses
on the basis of expected credit losses
using the simplified expected credit loss
model.
Receivables are monitored on an ongoing
basis in accordance with the Company’s
risk policy.
Prepayments
Prepayments comprise prepayment of
costs incurred relating to subsequent
financial years.
Equity
Dividends
The expected dividend payment for the
year is disclosed as a separate item under
equity.
Corporation tax and deferred tax
Current tax payable and receivable is
recognised in the balance sheet as tax
computed on the taxable income for
the year, adjusted for tax on the taxable
income of prior years and for tax paid on
account.
Deferred tax is measured using the balance
sheet liability method on all temporary
differences between the carrying amount
and the tax value of assets and liabilities
measured on the planned use of the asset
or settlement of the liability, respectively.
Deferred tax assets, including the tax value
of tax loss carryforwards, are recognised
at the expected value of their utilisation
within the foreseeable future; either as a
set-off against tax on future income or as
a set-off against deferred tax liabilities in
the same legal tax entity. Any deferred
net assets are measured at net realisable
value.
Deferred tax is measured in accordance
with the tax rules and at the tax rates
applicable at the balance sheet date when
the deferred tax is expected to crystallise
as current tax. Changes in deferred tax as
a result of changes in tax rates are recog-
nised in the income statement, statement
of other comprehensive or equity, respec-
tively.
Liabilities
Financial liabilities are recognised at the
date of borrowing at fair value, correspond-
ing to the proceeds received less transac-
tion costs paid. In subsequent periods, the
financial liabilities are measured at amor-
tised cost, corresponding to the capital-
ised value using the effective interest rate.
Accordingly, the difference between cost
and the nominal value is recognised in the
income statement over the term of the loan
together with interest expenses.
Other liabilities are measured at amortised
cost, which usually corresponds to nomi-
nal value.
Fair value measurement
The Company uses fair value for certain
disclosures and measurement of finan-
cial instruments. Fair value is the price that
would be received to sell an asset or paid
to transfer a liability in an orderly transac-
tion between market participants at the
measurement date.
The fair value measurement is based on
the assumption that the transaction to
sell the asset or transfer the liability takes
place either in the principal market for
the asset or liability or, in the absence of
a principal market, in the most advanta-
geous market for the asset or liability. The
fair value of an asset or a liability is meas-
ured using the assumptions that market
participants would use when pricing the
asset or liability, presuming that they are
acting in their economic best interest.
The Company uses valuation techniques
that are appropriate in the circumstances
and for which sufficient data are availa-
1. Accounting
policies
PAGE 46
YGGDRASIL ANNUAL REPORT 2021-22
ble to measure fair value, thus maximising
the use of relevant observable inputs and
minimising the use of unobservable inputs.
All assets and liabilities for which fair value
is measured or disclosed are categorised
within the fair value hierarchy (levels 1, 2
and 3), described as follows, on the basis
of the lowest level input that is significant
to the fair value measurement as a whole:
Level 1
Quoted (unadjusted) market prices in
active markets for identical assets or liabil-
ities
Level 2
Valuation techniques for which the lowest
level input that is significant to the fair
value measurement is directly or indirectly
observable
Level 3
Valuation techniques for which the lowest
level input that is significant to the fair
value measurement is unobservable
Cash flow
statement
The cash flow statement shows the
Company’s cash flows from operating,
investing and financing activities for the
year, the year’s changes in cash and cash
equivalents as well as the Company’s cash
and cash equivalents at the beginning and
end of the year.
Cash flows from operating activities
Cash flows from operating activities
are calculated as the profit for the year
adjusted for non-cash operating items,
changes in working capital and corpora-
tion tax paid.
Cash flows from investing activities
Cash flows from investing activities
comprise payments in connection with
acquisitions and disposals of entities and
activities, intangible assets, property, plant
and equipment and investments.
Cash flows from financing activities
Cash flows from financing activities
comprise changes in size or composition
of the Company’s contributed capital
and costs in this respect as well as raising
of loans, instalments on interest-bear-
ing debt and distribution of dividends to
owners.
Cash and cash equivalents
Cash and cash equivalents comprise cash
and short-term marketable securities with
a short term, which are easily convertible
into cash and which are subject to only an
insignificant risk of changes in value.
1. Accounting
policies
PAGE 47
YGGDRASIL ANNUAL REPORT 2021-22
2. Estimation uncertainties
and judgements
Fair value of financial
commodity derivatives
Short term Commodity derivatives, that
are open at the balance sheet date, are
measured at the cost price (fair value),
which was settled at purchase in the
market only few hours before the end
of the balance sheet date. No changes
in prices from the Day Ahead price are
observable until the balance sheet date.
Thus the open positions have no effect
on the profit for the financial year. Subse-
quent net income from daily settlement
supports this approach as an appropriate
approach and limited estimation uncer-
tainty.
In addition, options to supply power
in a specific geographical areas (other
markets) in July and August 2022 are are
purchased close to year end. No objective
price changes are observable for these
options between date of purchase and the
balance sheet date and the cost prices are
therefore assessed to represent fair value
at the balance sheet date. Consequently,
these options have no effect on the profit
for the financial year.
Dispute investments
In accordance with the shareholder agree-
ments for the subsidiaries Dvalin ApS and
Nidhog ApS, an event has occurred which
has had the outcome that the Company
has purchased shares held by minority
shareholders in the subsidiaries at a total
purchase price of DKK 6.9 million. The
minority shareholders have objected to
this, why the ownership of the shares at
year end is therefore legally questioned.
For accounting purposes, the assess-
ment has been made that the Company,
based on the provisions laid down in the
shareholder agreements, exercises control
over the shares owned by minority share-
holders, and against this background, the
subsidiaries Dvalin ApS and Nidhog ApS
were recognised as fully-owned subsidiar-
ies at 1 April 2021, and the purchase prices
were recognised as liabilities.
The assessment that the Company exer-
cises control over the shares owned by
minority shareholders is supported by an
opinion from two external lawyers.
The outcome of the dispute with the
minority shareholders may have the
outcome that the provisions laid down in
the shareholder agreements are disre-
garded. This may have an impact on
whether the Company exercises control
over the shares owned by minority share-
holders and the purchase prices.
After the balance sheet date, an arbitration
case has been initiated.
The consolidated income statement is
not impacted by the outcome of the legal
dispute.
The income statement for the Parent
Company can be impacted due to recog-
nition based on ownership. Recognised
results from shares acquired affect results
for the financial year 21/22 by DKK 11.6
million and for the financial year 2020/21
by less than DKK 1 million.
3. Revenue
DKK 2021/22 2020/21
Consolidated
financial
statements:
Revenue from sale
of power
Europe 2,181,781,300 444,726,385
Other markets 211,345,746 4,837,827
Total revenue
from sale of
power
2,393,127,045 449,564,212
Net income from
trading commodi-
ty derivatives
77,028,518 30,016,594
Total income 2,470,155,563 479,580,806
DKK 2021/22 2020/21
Parent Company
(DKK):
Net revenue from
management fee
from subsidiaries 14,417,043 8,133,058
Revenue is recognised when control of
electricity is transferred to the counter-
party simultaneously with fulfilment of
the related services, that being when the
electricity is delivered.
Commodity derivative trading transaction
not settled are specified in note 16.
The contractual consideration are always
fixed, and the typically payment terms are
1-60 days and without financing compo-
nents.
Due to the nature of the performance
obligations there are no return, refunds,
warranty or other similar obligations
related to the revenue.
Revenue
PAGE 48
YGGDRASIL ANNUAL REPORT 2021-22
settled in shares and with no option for
cash-settlement for neither the Company
nor the employee.
The key terms and conditions related to
vesting of the grant under this program
are as follows;
•
The granted warrants vest over up till
36 tranches. The program contains a
12-month cliff period which means that
12/36 vest when the employee has 12
months of seniority. Afterwards, the
warrants vest linearly each month, i.e.
if an employee has been employed for
6 months at the time of grant, 6 months
after the grant 6/36 of the warrants
vest. Following the cliff period, 1/36 of
the warrants vest linearly each month.
•
In the event of an exit, i.e. sale of all
or more than 50% of the outstanding
share capital, a sale of all or the major-
ity of the Group’s assets or a listing
of the Company’s shares (IPO), all
unvested warrants shall be considered
fully vested.
The warrants can be exercised at the
earlier of either an exit or in December
2026.
The remaining maximum term of the pro-
gram is 4.5 years.
4. Staff costs
DKK 2021/22 2020/21
Consolidated
financial state-
ments and parent
company financial
statements:
Wages (incl.
Management) 8,952,439 6,358,430
Pensions (defined
contribution plan) 581,910 394,856
Share-based
payments 74,100 0
Other social
security costs 103,859 57,741
9,712,308 6,811,027
Management
(Executive Board)
1,175,772 1,018,330
Thereof pension 149,100 281,259
Board of Directors
(no pension and
share based )
150,000 0
Average number
of full-time
employees
Staff costs
The Executive Board and the Board of Direc-
tors are not covered by Warrant Incentive
Program.
Share-based payment transactions
Description of the share-based payment
arrangement.
To incentivise employees the Group est-
ablished share-based payment incentive
plans for employees.
At 30 June 2022, the Group had estab-
lished the following share-based payment
arrangement.
Warrant Incentive Program
(equity-settled)
In March 2022 the Board of Directors
approved a share-based program which
the Company granted warrants free of
charge which give the warrant holders
right to buy a specific number of shares
in Yggdrasil at a pre-determined price
subject to the vesting conditions.
The program is classified as equity-settled
as the settlement is predetermined to be
YGGDRASIL ANNUAL REPORT 2021-22
PAGE 49
ANNUAL REPORT 2021-22
Employees
(number of
warrants)
Grant date fair
value (DKK)
Average exercise
price
(DKK)
Total fair value
(DKK)
Granted during the year 17,297 14.36 117.74 247,000
Outstanding at 30 June 2022 17,297 14.36 117.74 -
Exercisable at 30 June 2022 - - - -
For warrants outstanding at the end of
the year, the remaining contractual life is
2 years and 9 months.
Measurement of fair value
The fair value of granted warrants are
estimated using the methods used for tax
purposes taking into account the terms
and conditions upon which the warrants
were granted and an interest rate of 11%.
The total amount recognised in the income
statement during 2021/22 was 74,100 DKK.
Reconciliation of outstanding equity-settled awards
YGGDRASIL
PAGE 50
4. Staff costs
ANNUAL REPORT 2021-22
5. Finance income
and costs
Group Parent Company
DKK 2021/22 2020/21 2021/22 2020/21
Income:
Interest income measured
at amortised cost
102,288 0 828 0
Exchange rate
adjustments, net
0 824,087 870,877 0
102,288 824,087 871,705 0
Costs:
Interest expense measured at
amortised cost
956,590 485,723 282,034 174,104
Exchange rate
adjustments, net
389,521 0 0 71,114
Other financial costs 491,057 393,019 159,700 0
1,837,168 878,742 441,734 245,218
YGGDRASIL ANNUAL REPORT 2021-22
PAGE 51
6. Tax on profit
for the year
Group Parent Company
2021/22 2020/21 2021/22 2020/21
DKK
Current tax for the year -38,096,072 -7,863,569 -87,650 260,622
Deferred tax adjustment for the year 22,518 7,131 0 0
-38,073,554 -7,856,438 -87,650 260,622
Reconciliation of
effective tax rate:
Tax according to
Danish tax rate, 22.0%
-32,465,835 -7,817,451 -24,108,933 -5,822,025
Tax effect:
Effect of foreign tax rates -5,584,018 -38,987 0 0
Non-deductible items -23,702 0 -23,702 0
Non-taxable income 0 0 24,044,985 6,082,647
-38,073,554 -7,856,438 -87,650 260,622
Effective tax rate 25.8% 22.1% 0.4% 1%
YGGDRASIL
PAGE 52
ANNUAL REPORT 2021-22
PAGE 53
YGGDRASIL ANNUAL REPORT 2021-22
7. Equity investments
in associates
2021/22 2020/21
DKK
Cost at 1 July 0 30,000
Additions 0 0
Disposals -30,000
Cost at 30 June 0 0
Value adjustments
at 1 July
0 -1,985
Profit for the year 0 689,994
Reversed revaluations 0 -688,009
Value adjustments
at 30 June
0 0
Carrying amount
at 30 June
0 0
Name/legal
form
Registered
office
Equity
interest at
1 July 2020
Carbon
Projects ApS Aalborg 50%
Divested in
2020/21.
PAGE 54
YGGDRASIL ANNUAL REPORT 2021-22
8. Equity investments
in subsidiaries
2021/22 2020/21
DKK
Cost at 1 July 29,491,305 15,584,000
Additions to equity investments 4,734,000 18,687,121
Disposals of equity investments 0 -4,779,816
Cost at 30 June 34,225,305 29,491,305
Value adjustments at 1 July 16,245,742 3,258,689
Profit for the year 109,295,386 27,869,574
Dividends paid -52,500,000 -13,000,000
Equity adjustments, currency rate 2,449,962 -662,337
Disposals of equity investments 0 -1,220,184
Value adjustments at 30 June 75,491,090 16,245,742
Carrying amount at 30 June 109,716,395 45,737,047
Name/legal form
Registered
office
Equity
interest
Thordin ApS Aalborg 100%
Dvalin ApS Aalborg
*
100%
Nidhog ApS Aalborg
*
100%
Asgard ApS
(Formerly operat-
ing under the name
Valhall ApS)
Aalborg 100%
Valhall GK Japan 100%
Future Electricity
Trading (GK)
Japan 100%
Japan Power
Trading (GK)
Japan 100%
Raijin Energy (GK) Japan 100%
*
Including minority shares
not assigned due to dispute
PAGE 55
YGGDRASIL ANNUAL REPORT 2021-22
9. Cash and
equivalents
Group Parent Company
DKK 2021/22 2020/21 1/7 2020 2021/22 2020/21
Cash at bank 69,741,732 21,991,715 6,721,436 1,190,233 3,115,007
Counterparty deposits
which can be released
with a short timeframe
35,852,920 13,530,872 11,192,850 0 0
Total cash at bank and cash
equivalent in cash flow statement
105,594,652 35,522,587 17,914,286 1,190,233 3,115,007
Deposits secured
for guarantees
14,499,269 0 0 14,499,269 0
Purchase price for shares deposited
with bank
6,953,057 6,953,057 0 6,953,057 6,953,057
Total cash and cash
equivalents in balance sheet
127,046,978 42,475,644 17,914,286 22,642,559 10,068,064
PAGE 56
YGGDRASIL ANNUAL REPORT 2021-22
10. Contributed
capital and capital
management
Contributed capital
(all fully paid) consists of:
A shares of nom. DKK 2,818,554 each one
vote per share.
B shares of nom. DKK 254,446 have no
voting rights and do not carry dividend.
The current level of contributed capital is
deemed to be sufficient and appropriate
to support the principal activities of the
Company.
Distributed dividends per A share during
2020/21 amount to DKK 8.5 at the day of
adoption.
11. Liabilities
DKK’000
Carrying
amount
Contractual
cash flows
coming year
Cash
flows
year 1-5
Cash
flows
after
5 years
Total
contractual
cash flows
Derivative financial
instruments
258,930 258,930 0 0 258,930
Non-derivative financial instruments:
Credit institution 6,000,000 6,161,370 0 0 6, 712,389
Trade payables 49,811,739 49,811,739 0 0 49,811,739
Amounts owed to third parties 6,953,057 6,953,057 0 0 6,953,057
Other payables 4,191,975 4,191,975 0 0 4,191,975
67,215,701 67,377,071 0 0 67,928,090
DKK’000
Carrying
amount
30/6 2021
Contractual
cash flows
coming year
Cash
flows
year 1-5
Cash
flows
after
5 years
Total
contractual
cash flows
Derivative financial
instruments
394,252 394,252 0 0 394,252
Non-derivative financial instruments:
Credit institution 6,000,000 575,461 6,511,081 0 7,086,542
Trade payables 5,406,132 5,406,132 0 0 5,406,132
Amounts owed to shareholders 11,959,003 11,959,003 0 0 11,959,003
Amounts owed to third parties 6,953,057 6,953,057 0 0 6,953,057
Other payables 5,940,312 5,940,312 0 0 5,940,312
36,652,756 31,228,217 6,511,081 0 37,739,298
Consolidated financial statements:
YGGDRASIL ANNUAL REPORT 2021-22
PAGE 57
PAGE 58
YGGDRASIL ANNUAL REPORT 2021-22
DKK’000
Carrying
amount
1/7 2020
Contractual
cash flows
coming year
Cash
flows
year 1-5
Cash
flows
after
5 years
Total
contractual
cash flows
Derivative financial
instruments
345,000 345,000 0 0 345,000
Non-derivative financial
instruments:
Credit institution 0 0 0 0 0
Trade payables 185,876 185,876 0 0 185,876
Amounts owed to
shareholders
0 0 0 0 0
Amounts owed to third parties 0 0 0 0 0
Other payables 3,750,257 3,750,257 0 0 3,750,257
4,281,133 4,281,133 0 0 4,281,133
DKK’000
Carrying
amount
30/6 2022
Cash flows
coming year
Cash flows
year 1-5
Cash
flows
after
5 years
Total
contractual
cash flows
Derivative financial
instruments
258,930 258,930 0 0 258,930
Non-derivative financial
instruments:
Amounts owed to subsidiaries 0 0 0 0 0
Amounts owed to shareholders 0 0 0 0 0
Amounts owed to third parties 6,953,057 6,953,057 0 0 6,953,057
Other payables 4,088,610 4,088,610 0 0 4,088,610
11,300,597 11,300,597 0 0 11,300,597
11. Liabilities
Parent company financial statements:
PAGE 59
YGGDRASIL ANNUAL REPORT 2021-22
11. Liabilities
DKK’000
Carrying
amount
30/6 2021
Cash flows
coming year
Cash flows
year 1-5
Cash
flows
after
5 years
Total
contractual
cash flows
Derivative financial
instruments
394,252 394,252 0 0 394,252
Non-derivative financial
instruments:
Amounts owed to subsidiaries 13,503,255 13,503,255 0 0 13,503,255
Amounts owed to
shareholders
11,959,003 11,959,003 0 0 11,959,003
Amounts owed to third parties 6,953,057 6,953,057 0 0 6,953,057
Other payables 5,854,055 5,854,055 0 0 5,854,055
38,663,622 38,663,622 0 0 38,663,622
The analysis is based on contractual cash
flows including interest payments.
Fair value of trade payables and other
payables is determined to equal their
carrying amount.
The payment obligations are expected to
be settled through cash inflows from oper-
ating activities.
Leasing
The Parent Company has a lease contract
for property with a remaining term of six
months (2020/21: four months) and aver-
age monthly lease payments of DKK 22.5
thousand (2020/21: DKK 11.7 thousand),
totalling DKK 135 thousand (2020/21: DKK
47 thousand). The lease is not recognised
as an asset/liability as the lease agreement
is a short-term lease. After the balance
sheet date, the company has entered into
a new lease agreement for property with
a monthly leasing cost of DKK 60 thou-
sand. Recognition of the leasing contract
will be assessed in 2022/23, but impact on
financial statements is not considered to
be significant.
Furthermore, the Parent Company has
lease contracts regarding equipment with
remaining term up to 21 months (2021/21:
33 months) and average monthly lease
payments of DKK 20.7 thousand, total
-
ling DKK 257 thousand. The leases are not
recognised as an asset/liability as they
comprise assets of low value.
PAGE 60
YGGDRASIL ANNUAL REPORT 2021-22
12. Other
adjustments
Group Parent Company
DKK 2021/22 2020/21 2021/22 2020/21
Warrants 74,100 0 74,100 0
Finance income -102,288 -824,087 -871,705 0
Finance costs 1,837,168 878,742 441,734 245,218
Tax on profit for the year 38,073,554 7,856,438 87,650 -260,622
Adjustment of subsidiary equity value 0 0 -109,295,386 -27,869,574
Adjustment of associates equity value 0 -689,994 0 -689,994
39,882,534 7,221,099 -109,642,492 -28,574,972
PAGE 61
YGGDRASIL ANNUAL REPORT 2021-22
13. Changes in
work capital
Group Parent Company
DKK 2021/22 2020/21 2021/22 2020/21
Change in receivables -83,902,480 -31,161,635 337,878 71,522
Change in trade and other payables 42,655,185 7,412,393 -1,765,445 3,701,253
Change in deposited cash -14,499,269 -6,953,057 -14,499,269 -6,953,057
-55,746,564 -30,702,299 -15,926,836 -3,180,282
PAGE 62
YGGDRASIL ANNUAL REPORT 2021-22
14. Changes in
liabilities from
financing activities
DKK’000
Credit
institution
Shareholder
loan
Third party Total
1 July 2020 0 0 0 0
Proceeds from loan 6,000,000 0 0 6,000,000
Acquisition of minority shares (deposit-
ed and therefore non-cash impact)
0 0 6,953,057 6,953,057
Dividends and other debt not paid out 0 11,959,003 0 11,959,003
30 June 2021 6,000,000 11,959,003 6,953,057 24,912,060
Repayment in 2021/22 0 -11,959,003 0 -11,959,003
6,000,000 0 6,953,057 12,953,0057
DKK’000
Credit
institution
Shareholder
loan
Third party Total
1 July 2020 -4,739,690 0 0 -4,739,690
Change 837,480 0 0 837,480
Acquisition of minority shares (deposit-
ed and therefore non-cash impact)
0 0 6,953,057 6,953,057
Dividends and other debt not paid out 0 11,959,003 0 11,959,003
30 June 2021 -3,902,210 11,959,003 6,953,057 15,009,850
Change -20,055,582 0 0 -20,055,582
Repayment in 2021/22 0 -11,959,003 0 0
30 June 2022 -23,957,792 0 6,953,057 -5,045,732
Consolidated financial statements: Parent company financial statements:
PAGE 63
YGGDRASIL ANNUAL REPORT 2021-22
15. Contractual
obligations,
contingencies, etc.
The Company is jointly taxed with other
Danish companies in the Group. As a jointly
taxed company, the Company has joint
unlimited liability for Danish corporation
taxes and withholding taxes on dividends,
interest and royalties within the joint taxa-
tion unit. Any subsequent corrections of
income subject to joint taxation or with-
holding taxes could result in an increased
liability for the Company.
Bank guarantees totals 31,470,256 DKK
at 30 June 2022 (2020/21: 0 DKK). Cash
deposit amounting to DKK 14,499,269 is
pledged as collateral for balances with
credit institution.
Regarding leasing liabilities refer to dis-
closures in note 11.
PAGE 64
YGGDRASIL ANNUAL REPORT 2021-22
16. Financial risks and
the use of derivative
financial instruments
As a result of its operations, the Group
is exposed to number of financial risks,
including commodity price, currency, in-
terest rate, liquidity and credit risks via
the operational entities, whom all trade
in power.
The Group has ensured that a comprehen-
sive risk framework is in place to manage
these risks.
Our growth strategy involves adding
new markets to the portfolio and stead-
ily increasing investments. Each new
market adds to the market risk, but if the
price correlation to existing markets is
low, Yggdrasil’s combined risk exposure
decreases. To limit our risk exposure
when entering a new market, we follow a
well-defined risk management procedure.
Market risk management is divided into
the following focus areas:
• Market diversification
• Geographical spread
• Adding new markets
• Increasing the portfolio / investments
Market risk management
Our highest priority at Yggdrasil is to
diversify our portfolio, which will enable
us to better manage risk exposure, mini-
mise losses, and create on-going positive
returns. We monitor our power markets
carefully to prevent substantial financial
losses.
Market diversification
Market diversification is a very important
focus point in Yggdrasil’s risk manage-
ment. We focus on spreading investments
in many different power markets to avoid
that a single power market becomes too
dominant in our portfolio. Hence, for each
single market added to the portfolio, we
dilute market risk further and reduce
the potential of financial losses without
compromising the gains.
Geographical spread
Yggdrasil is active in three continents, and
trading power in markets geographically
far apart is one of the greatest strengths
in our portfolio. Power prices are highly
dependent on weather conditions, and big
leaps in prices are often caused by unfore-
seen weather changes. Hence, markets
located in the same regions are affected
by the same weather conditions, which
makes investments correlate.
Therefore, when deciding on a new market,
the graphical market location is decisive.
By spreading investments in different
continents, the risk exposure to the same
weather systems is diluted. Uncorrelated
weather conditions lead to uncorrelated
investments.
Adding new markets
To follow our growth strategy, we contin-
uously add new markets to the portfolio.
Each market has its own rules and require-
ments, so trading a new market is risky. To
manage the risk of selecting and entering
a new market, we go through some initial
steps.
Initially, it is carefully analysed if the influ-
ence of the weather is specific to the new
market only and not spilling over into our
existing markets.
Secondly, test trades are conducted in the
new market to verify specific trading rules,
the settlement process with counterpar-
ties, collateral requirements, and other
market-specific details.
Thirdly, we need to experience how the
market reacts to our trading, so we fine-
tune our trading strategies.
When the above steps have been
completed successfully, the new market
is included in the Yggdrasil portfolio.
Increasing portfolio and investments
A new market gives Yggdrasil new invest-
ment opportunities. Once a new market
is included in the Yggdrasil portfolio, we
start trading the market and increasing
investments.
For our diversification strategy to work, the
investments in each of our markets should
be at the same risk level to balance the
total risk exposure. When the investments
in the new market reach the same level as
the existing portfolio, the market diversifi-
cation is higher than before and hence, the
overall risk exposure decreases, diluting
Yggdrasil’s risk profile.
Each new market supports growth in two
ways. It offers the potential of increased
investments and positive earnings without
the full impact of higher risk. Further, for
each new market added, we can increase
investments in all our markets as Yggdra-
sil’s overall risk profile is further diluted.
PAGE 65
YGGDRASIL ANNUAL REPORT 2021-22
16. Financial risks and
the use of derivative
financial instruments
Commodity price risks
There is a risk related to open trading
positions including financial derivative
contracts due to changes in market prices.
The fluctuation risk is limited due to short
term positions.
At 30 June open positions including finan-
cial derivative contracts can be specified
as:
2021/22 2020/21
Gwh
Total open
positions
Hereof deriva-
tive contracts
Total open
positions
Hereof deriva-
tive contracts
Europe 5,231 0 3.247 0
Other markets 4,695 0 114 0
US 10,625 10,625 7,500 7,500
20,551 10,625 10,861 7,500
2021/22 2020/21
Currency
Net assets
Derivative
contracts Net assets
Derivative
contracts
USD 4,482,831 400,000 2,790,249 1,900.000
GBP 6,605,988 600,000 2,684,127 1,890,000
EUR 5,131,573 0 3,061,569 0
JPY 604,486,356 0 27,369,815 0
All positions are settled at 1 July.
The fair value of financial derivative com-
modity contracts is assessed at 0 based
on a level 2 fair value assessment.
The open positions are settled at 1 July
with net results of a negative of DKK 42
thousand (2020/21: DKK 170 thousand)
whereof a negative of DKK-219 thousand
is related to the settlement of derivative
contracts (2020/21: DKK 3 thousand). In
addition to the above daily trading posi-
tions, the subsidiary has agreed options
to supply power in a special area (other
markets) until end of August. The options
are purchased close to year end, and the
cost price is therefore assessed to repre-
sent fair value and consequently a market
value of DKK 0.
Foreign exchange risks
The currency risk is low due to trading are
carried out in same currencies (USD; GBP,
Euro and JPY) through the operational
entities, and therefore no hedging of trad-
ing transactions and receivables/payables
is performed.
For the Group as a whole, DKK is functional
currency and therefore net equity invest-
ments in subsidiaries are partly hedged
through forward currency derivatives.
At 30 June, open positions including finan-
cial derivative contracts can be specified
as:
PAGE 66
YGGDRASIL ANNUAL REPORT 2021-22
16. Financial risks and
the use of derivative
financial instruments
Fair value of currency derivatives used for
this hedging amounts DKK 258 thousand
at 30 June 2022 (30 June 2021: negative
fair value of DKK 394 thousand) based on
a level 2 fair value assessment comprising
USD and GBP forward contracts, which
falls due within 1 year from the balance
sheet date.
The development can be specified as:
DKK 2021/22 2020/21
Consolidated finan-
cial statements and
parent company
financial statements:
Fair value at 1 July -394,252 -345,000
Settled during the
year
2,040,202 163,593
Fair value
adjustments
-1,904,880 -212,845
Fair value of deriva-
tive financial instru-
ments at 30 June
-258,930 -394,252
Potential net impact on net income and
other comprehensive income from 10%
movement in USD, GBP, EUR and JPY is not
significant.
Going forward from 2022/23, the currency
risk will not be hedged.
Interest rate risks
Exposure to the risk of changes in market
interest rates relates primarily to inter-
est-bearing liabilities. The exposure is not
material, however.
Liquidity risks
Cash flow forecasts are produced ensur-
ing availability of required liquidity of
the Group by appropriate cash manage-
ment and maintaining adequate liquidity
reserves at any time through maintain-
ing a capital structure with strong equity
financing.
The table in note 11 shows the Groups
financial liabilities divided into relevant
maturity buckets based on their contrac-
tual maturities. The amounts disclosed are
the contractual undiscounted cash flows.
Credit risks
There is a risk that a counterparty to a
financial instrument is unable to fulfil its
obligations and thereby will inflict a loss
on the Company.
Counterparties comprise of clearing-
houses, clearings banks, transmission
system operators, independent system
operators and regional transmission
organizations.
The credit risk of financial receivables
corresponds to the values of trade receiv-
ables, deposits, other receivables and
cash recognised on the balance sheet.
No historical loss has occurred and no
provision for loss was recognised at 30
June 2022 and at 30 June 2021.
Due to the type of counterparties and as
commodity exchanges generally settle fair
values on a daily basis, the Group consid-
ers its credit exposure to be insignificant.
Individual counterparty’s ratings with
public rating agencies are supporting this
as a significant part of counterparties
are rated in A category (13 out of total 28
counterparties). Number of counterparties
rated in B category are limited (3 out of
total 28 counterparties). Ratings are not
available for 10 counterparties.
Parent Company:
The Company is exposed to a number of
financial risks via its subsidiaries who all
trade in power according to the section
above. In case equity investments in
subsidiaries are made in other currencies
than DKK, the Company is exposed to
currency risk. This risk is partly mitigated
by the use of financial derivatives accord-
ing to the above disclosures.
PAGE 67
YGGDRASIL ANNUAL REPORT 2021-22
17. Classification of
financial instruments
and derivatives
Group Parent Company
DKK 2021/22 2020/21 1/7-2020 2021/22 2020/21
Assets measured to amortised
to cost:
Receivables 122,835,087 38,932,607 7,770,972 53,752,832 18,177,906
Cash and cash equivalents 127,046,970 42,475,644 17,914,286 22,642,559 10,068,064
Total amortised cost
Assets measured at fair values
through profit or loss
0 0 0 0 0
Total financial assets 249,882,057 81,408,251 25,685,258 76,395,391 28,245,970
Group Parent Company
DKK 2021/22 2020/21 1/7-2020 2021/22 2020/21
Liabilities measured to amortised
cost:
Credit institution 6,000,000 6,000,000 0 0 0
Trade payables 49,811,739 5,406,132 185,876 0 0
Amounts owed to third parties 6,953,057 6,953,057 0 6,953,057 6,953,057
Other payables 4,191,972 5,942,394 3,750,257 4,088,610 5,854,055
Total amortised cost
Liabilities measured at fair values
through profit or loss:
Financial derivatives 258,930 394,252 345,000 258,930 394,252
Total financial liabilities 67,215,698 24,695,835 4,281,133 11,300,597 13,201,364
Financial assets and financial liabilities
above are not offset, and therefore gross
amounts are recognised in the balance
sheet.
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YGGDRASIL ANNUAL REPORT 2021-22
17. Classification of
financial instruments
and derivatives
Fair value hierarchy
All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorised within the
fair value hierarchy, described as follows,
based on the lowest level input that is
significant to the fair value measurement
as a whole.
The Company has not transferred between
levels of the fair value hierarchy during
2021/22.
The fair values are based on following
methods:
Level 1: Quoted (unadjusted) market prices
in active markets for identical assets or
liabilities.
Exchange-traded derivatives are valued
using closing prices provided by the
exchanges at the balance sheet date.
These derivatives are categorised within
level 1 of the fair value hierarchy. Exchange-
traded derivatives are typically consid
-
ered settled through the payment or
receipt of variation margin.
2021/22
DKK Level 1 Level 2 Level 3 Total
Derivatives financial assets/liabilities
measured at fair value
Foreign exchange forward
(Parent Company)
N/A -258,930 N/A -258,930
Commodity derivatives N/A 0 0 0
Total N/A -258,930 0 -258,930
2020/21
DKK Level 1 Level 2 Level 3 Total
Derivatives financial assets/liabilities
measured at fair value
Foreign exchange forward
(Parent Company)
N/A -394,252 N/A -394,252
Commodity derivatives N/A 0 N/A 0
Total N/A -394,252 N/A -394,252
1 July 2021
DKK Level 1 Level 2 Level 3 Total
Derivatives financial assets/liabilities
measured at fair value
Foreign exchange forward
(Parent Company)
N/A -345,000 N/A -345,000
Commodity derivatives N/A 0 N/A 0
Total N/A -345,000 N/A -345,000
Level 2: Valuation techniques for which the
lowest level input that is significant to the
fair value measurement is directly or indi-
rectly observable.
Derivatives designated to level 2 include
power trades on markets which do not
have an intraday market, on markets with
intraday market but with low liquidity
and on markets with significant spread
between bid and ask prices. Financial
swaps and physical commodity sale and
purchase contracts including commodity
forwards and options are generally valued
using readily available information in the
public markets and if necessary, quota-
tions provided by brokers and price index
developers. These quotes are corrobo-
rated with market data and are predomi-
nately categorised within level 2 of the fair
value hierarchy.
The method applied is consistent with
prior periods.
Level 3: Valuation techniques for which the
lowest level input that is significant to the
fair value measurement is unobservable.
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YGGDRASIL ANNUAL REPORT 2021-22
18. Related party
disclosures
Yggdrasil Commodities ApS’ related par-
ties comprise the Board of Directors, Exec-
utive Board, their close family members,
subsidiaries (see note 8) and the following
controlling holding companies:
Søren Bondo Andersen Holding ApS
Leharparken 85
9200 Aalborg SV
Denmark
SAJ Finans ApS
Klarup Kirkevej 34
9270 Klarup
Denmark
Related party transactions
Related party transactions include salaries
to Management (see note 4), management
fee paid by subsidiaries (see note 3) and
capital increases (see note 8).
Amounts owed by and to subsidiaries
are specified in the balance sheet of the
Parent Company.
The controlling holding companies have
provided guarantees to secure loan from
credit institution amount to DKK 6,000
thousand (2021/21: DKK 6,000 thousand).
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YGGDRASIL ANNUAL REPORT 2021-22
19. Events after the
balance sheet date
No events have occurred after the balance
sheet date to this date that would influ-
ence the assessment and evaluation of
this annual report in any substantial way.
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YGGDRASIL ANNUAL REPORT 2021-22
20. New accounting
regulation
At the date of the presentation of this
annual report, a number of new or
amended standards and interpretations
exist that have not yet become effec-
tive and therefore are not applied when
preparing the financial statements for
2021/22.
The new standards and interpretations will
be implemented as they become manda-
tory.
It is Management’s assessment that
none of these will significantly affect the
Company’s financial statements.
PAGE 72
YGGDRASIL ANNUAL REPORT 2021-22
{
“period”: “1 July 2021 - 30 June 2022”
}
Yggdrasil Commodities
CVR: DK-40300643
Annual
Report for the
financial year