With IT at the
basis of everything
{
WeAnalyse();
WeCode();
WeTrade();
}
Annual report for the financial year
1 July 2023 - 30 June 2024
The annual report was presented and
approved at the Company’s annual general
meeting
on 10 October 2024
chairman of the annual general meeting
Letter from our CEO
Financial Highlights
Annual report commentary
Reaching new depths
Steady (revenue generation) wins the race
A powerful platform facilitating growth
Green space for growth
Company information
03
07
08
08
09
11
13
16
17
18
20
21
22
23
50
51
53
54
55
56
73
74
Financial statement
Comprehensive income
Balance sheet
Changes in Equity
Cash flows
Notes
Parent company financial statement
Comprehensive income
Balance sheet
Changes in Equity
Cash flows
Notes
Management’s statement
Independent auditor’s report
GetContents();
PAGE 3
ANNUAL REPORT 2023-24YGGDRASIL
Continued growth
amid a challenging
backdrop
Letter from our CEO
During the financial year 2023-2024,
the average power price declined 50%
across our markets, which led to a lower
volatility environment. At the same time,
we managed to increase our traded
volume by 90%, the result of successful
strategy deployment, data utilization and
entry into new markets. We are proud of
our agility and scalability, and consider it
a fundamental differentiator.
In addition to its many challenges, the
2023-2024 financial year also provided
numerous opportunities: around the
world, renewable sources have increased
their market share of electricity markets,
making them more exposed to weather
patterns. Furthermore, power markets are
trending towards greater liberalization,
shorter delivery windows and enhanced
interconnectivity. These factors increase
the depth and breadth of opportunity for
Yggdrasil as a key player in matching and
balancing supply and demand in short-
term power markets.
None of this would have been possible
without the exceptional people who drive
the business to new heights every day.
The Yggdrasil team maintains a strong
entrepreneurial mindset, and our 90%
employee retention rate is a function of
the scope for learning and responsibility
in the hands of our team. The FTE count
stands at 31, up by just three since last
year, despite the markets newly entered
and traded volume expansion. As trading
scales, senior team members have
PAGE 4
ANNUAL REPORT 2023-24YGGDRASIL
embraced greater responsibilities, with
Yggdrasil’s co-founders leading overall
strategy, maintaining a particular focus
on growth.
We have remained a low-risk business,
engaged solely in short-term power
trading. As a result of i) clear risk
parameters, ii) inherently limited risk
in our short-exposure strategies, and
iii) global geographical diversification,
our profitability and risk KPIs paint a
consistent picture since inception: during
the financial year, 95% of all days ended
with positive earnings, and the largest
accumulated loss represented just 0.4%
of our equity.
We delivered an operating profit of DKK
372m for the financial year 2023-24,
growth of 34% vs the previous year, which
we under the given market conditions
consider to be within the financial target
for the year. The platform facilitated a 90%
uplift in volume traded and delivered a 91%
operating profit margin. Our operations
in APAC, established in 2021, experienced
strong growth in the year – a strong
indicator of the geographic transferability
of our strategy portfolio. Given the power
price backdrop, we consider the year’s
financial performance evidence that our
model of sustainable growth and data-led
algorithmic trading is demonstrating our
LETTER FROM OUR CEO
thesis. As a team, we are proud of these
results and the significant tax contribution
of more than DKK 100m on a global scale
these profits deliver to society.
Furthermore, our portfolio of renewable
assets under management increased
significantly during the financial year,
and we see this as a testament to our
continued value creation for our customers
and integration of green energy into the
power mix. Importantly, we achieved
the management of a sizeable portfolio
without the typical expansion of human
resources. This is again a testament to our
foundation as an IT company first.
Our scalable platform capability is
central to fast growth and to maintaining
a minimal cost base as we scale. Indicating
potential for wider opportunities, we will
be ramping up our short-term trading of
monthly capacity products – the right or
obligation to move power from one price
area to another over the coming month.
This represents a significant new pool of
value for Yggdrasil and is based on proven
trading strategies and back-testing against
our substantial data set, which has been
accumulated since our inception.
-0,4%
-0,7%
-1,5%
Largest accummulated
draw down vs. equity
FY 2021/2022FY 2022/2023FY 2023/2024
PAGE 5
ANNUAL REPORT 2023-24YGGDRASIL
LETTER FROM OUR CEO
Near-term outlook:
A clear path to growth in what
we know
Trading opportunities are naturally created
for us as the proportion of renewable
energy increases in each grid. Therefore,
the baseline growth in our trading volumes
benefits from a high level of visibility.
In addition to this baseline, over the next
twelve months, we anticipate continued
new market entries, with 14 new markets
earmarked for near-term entry. Our
current markets represent 24% of global
power production, and the anticipated
new market entries represent a further
14% of global power production. Each new
location entered adds significant benefits
to Yggdrasil: further risk diversification
is achieved, the tech-based scalability
immediately delivers net profit growth, and
the ability to utilize existing and proven
trading strategies in certain weather
patterns is multiplied. Due to external
factors we only managed to enter 50% of
the targeted new markets in the financial
year. But the great and extensive effort
that we have put in this task will help us
reach the ambitious goal for the coming
years.
We will also deepen trading in existing
markets, including some of our largest –
based on observed evidence that this is
achievable without any distortion in the
trading signals nor representing excessive
volume in any given location. This
deepening of trading is possible now that
we have a clear track-record of 95% daily
profitability, and global diversification from
trading in markets across three continents.
We expect the combination of these
drivers to result in a high double-digit
growth of earnings in the financial year
2024-2025 even in a continued lower price
and volatility environment. On costs, we
do not foresee any significant cost uplifts,
thanks to the efficiency of and early
investment in our technology platform
and team.
Gross profit
TDKK
FY 2022-23
308,182
TDKK
FY 2021-22
165,473
TDKK
FY 2023-24
409,013
PAGE 6
ANNUAL REPORT 2023-24YGGDRASIL
Kind regards,
Søren Agersbæk Jensen,
Founder and CEO
Looking forward:
Longer-term opportunities
With a solid, proven foundation, two
significant areas of further opportunity
excite us. The first is growth in what we
already know – short-term power trading.
In addition to the near-term expansion
and deepening outlined above, several
of the largest markets in the world could
become feasible for entry in the medium-
term – these would mark a step-change in
trading scale, and Yggdrasil is positioned
to capture an early-mover advantage.
The second area of opportunity is the
potential deployment of our algorithmic
trading platform to other markets,
within the power sphere where weather
prediction is a core competence. While
our focus remains on short-term power
markets, wider opportunities for the
application of our platform and data are
clear.
Through our activities, we look forward
to supporting the increased provision
of renewable energy to households and
businesses globally.
LETTER FROM OUR CEO
PAGE 7
ANNUAL REPORT 2023-24YGGDRASIL
2023-24 financial
year highlights
In thousands DKK 2023/24 2022/23 2021/22 2020/21 2019/20*
Key figures
Profit/loss
Revenue 267,646 0 0 0 14,417
Cost of sales -262,073 0 0 0 0
Gross profit 409,013 308,182 165,473 45,573 0
Operating profit before financial in-
come and expenses and tax (EBIT)
372,461 277,212 149,307 34,899 655
Net financials 7,617 8,638 -1,735 -55 220
Profit before tax (EBT) 380,079 285,850 147,572 35,534 6,071
Profit for the year 279,342 219,776 109,498 27,677 5,875
Balance sheet
Balance sheet total 723,329 470,844 249,882 81,429 32,655
Investment in property, plant and
equipment
0 0 0 0 0
Equity 386,335 353,352 145,856 35,319 20,112
Cash flows
Cash flows from operating activities 446,432 280,999 79,762 4,142 1,243
Cash flows from investing activities 0 0 0 718 586
Cash flows from financing activities -240,000 -6,000 -11,959 11,174 -1,603
Change in cash and cash equivalents
for the year
206,432 274,999 67,803 16,034 226
Number of employees - average for
the year
29 24 16 12 6
Key ratios
Return on assets 51.5% 58.9% 59.8% 42.9% 2.0%
Solvency ratio 53.4% 75.0% 58.4% 43.4% 61.6%
Return on equity 75.5% 88.1% 120.9% 99.9% 34.1%
*The implementation of IFRS as from 1 July 2020 had an impact on the financial statements and key ratios for
2020/21 and onwards. Comparative figures for 2019/20 have not been restated and were prepared in accordance
with Danish GAAP.
For definitions of financial key figures and ratios, please refer to note 1.
PAGE 8
ANNUAL REPORT 2023-24YGGDRASIL
Reaching new
depths
Annual report commentary
With a focused strategy to make the
world our “playground” for short-term
power trading, we managed over the past
years to set up operations from Japan to
California. Having achieved a high level
of global risk diversification, we are now
deepening trading in existing markets. As a
result, Yggdrasil continues to extract more
value from trading operations across the
US, Europe and APAC.
We trade in several vast markets, and
Yggdrasil’s position is currently insignificant
compared to overall volumes in many of
those markets.
We therefore estimate that we are far short
of the profit-optimised level of volumes
in almost all our markets, leaving ample
Traded volume increase
room for profitable growth. Our broad
geographic diversification allows us to do
this without introducing significant risk
into the Group.
This market deepening has already
commenced, with initial results supporting
our hypothesis that we can increase
volumes materially while maintaining
strong trading performance.
This source of growth has the potential
to have a material impact on trading
performance – it is a controlled deepening
of what we have proven successful at. The
existence of this opportunity, particularly
in the US power market, one of the most
mature, is a strong positive signal.
FY 2021-22FY 2022-23FY 2023-24
91
%
81
%
59
%
PAGE 9
ANNUAL REPORT 2023-24YGGDRASIL
ANNUAL REPORT COMMENTARY
Steady (revenue
generation) wins
the race
Yggdrasil holds a strong technology and data-
led DNA, free of any traditional trader mentality.
When we interact with power markets around
the world, we do so through a portfolio of
back-tested, proven, data-driven algorithms.
Yggdrasil’s trading engine picks up profits
across markets in a wide range of market
conditions, without reliance on specific market
events or individual trader knowledge.
This approach is true within each market, but
Yggdrasil’s simultaneous global trading means
the group-level results are particularly powerful:
consistent profitability 95% positive days, and
limited loss magnitudes (max drawdown on
equity over the past financial year of 0.4%, i.e.
losses have a minimal impact on equity).
The steady nature of trading profitability
is indicated in the figure below, showing a
large number of profitable trades, and overall
profitability not significantly impacted by
‘outlier’ trade outcomes.
This effect is further amplified by every new,
uncorrelated market, strategy or product
added to the portfolio. This risk diversification
supports Yggdrasil’s historical and future
success.
Daily PnL
distribution
15
39
47
94
98
6
2 2 22 2
15
42
0
Gross trading income
Number of days
+-
PAGE 10
ANNUAL REPORT 2023-24YGGDRASIL
Positive trading daysEBIT/FTE DKK(k)
FY 2023-24
12,414
FY 2022-23
11,551
FY 2021-22
9,332
ANNUAL REPORT COMMENTARY
FY 2023-24
95
%
FY 2022-23
93
%
FY 2021-22
89
%
PAGE 11
ANNUAL REPORT 2023-24YGGDRASIL
ANNUAL REPORT COMMENTARY
A powerful platform
facilitating growth
Yggdrasil’s operations are conducted
on our proprietary technology platform
that was built from scratch to be scalable
across global markets and regulatory
systems. Early investment in our platform
has proven worthwhile as trading has
Traded TWh
FY 2023-24
24
FY 2022-23
13
FY 2021-22
7
{
“dataVolumeStored.Aprox”: “1PB”
}
scaled, with adjustments to the strategy
or trading engine implemented entirely
in-house, without having to rely on, or wait
for external software vendors to update for
the newest addition to our portfolio.
PAGE 12
ANNUAL REPORT 2023-24YGGDRASIL
ANNUAL REPORT COMMENTARY
700,000
TDKK
600,000
500,000
400,000
300,000
200,000
100,000
Jan 2024
Jun 2024
Jan 2021
Jan 2022
Jun 2020
Jun 2021
Jun 2022
Jan 2023
Jun 2023
1,100,000
1,000,000
900,000
800,000
Daily PnL (Cumulative)
We currently see no platform or tech-
nology constraints to growth. Unlimited
cloud storage potential, vast algorithm
processing power and rapid adjustments
for new markets all support continued
growth in trading volumes in existing
markets, and deployment of our strategies
to new markets. The historical increase in
traded volumes evidences our platform’s
scalability and potential, see figure on
previous page.
Beyond facilitating growing volumes, the
platform continues to carefully manage
risk, based on conservative, Board-
approved parameters. It also allows
Yggdrasil’s power market and quantitative
experts to rapidly back-test new strategies
in active markets, and test existing
strategies in potential new markets. This
minimises costly in-market trial and error
and accelerates new market entry.
Yggdrasil’s efficient headcount of just 31
FTEs is made possible by efficiency of
the platform, and the fact that it handles
the full trade process from data handling
and analysis to risk management, trade
execution and reconciliation as well as
cash and collateral management with
virtually no human component in day-to-
day trading activities.
These platform attributes are why we
speak optimistically about the future
growth of our company: we can capture
opportunities in both active markets
(increasing volumes), and by entering new
markets without any constraints due to our
platform flexibility and scalability.
Markets
31
FTEs end of year
31
Cash to EBT ratio
128
%
PAGE 13
ANNUAL REPORT 2023-24YGGDRASIL
Green
space for
growth
Beyond the substantial headroom in our
existing markets, there is also opportunity
for growth beyond our existing markets.
These opportunities are driven by the
ever-increasing share of renewable energy
around the world, but also by the drive
towards liberalisation of energy markets
in various geographies.
ANNUAL REPORT COMMENTARY
PAGE 14
ANNUAL REPORT 2023-24YGGDRASIL
ANNUAL REPORT COMMENTARY
Looking forward, we see the potential to
apply our capability and platform to adjacent
products and markets. We categorise these
opportunities into two groups:
Firstly, existing products in new markets,
the cornerstone of our historical success.
An ongoing growth strategy is entry to
new markets. This includes both entry
into smaller markets with homogenous
regulatory systems we have experience in,
and preparation to enter several large power
markets. The abundance of geographies
available to Yggdrasil to repeat its successful
formula and understood steps to entry make
this a clear source of growth the Yggdrasil
team is actively pursuing.
Secondly, new products in existing
markets: trading adjacent products such
as capacities and structured products in
countries we are already active in short-
term markets. This new avenue of trading
complements our currently portfolio well,
utilising existing expertise and platform
infrastructure, and contributing to the risk
diversification of the portfolio.
Yggdrasil has also seen an increase in
managed assets in APAC over the financial
year, bringing generated power efficiently to
market. This business has proven successful
and is a potential source of global growth.
Upscaling this avenue would require
additional team members to interact with
9
8
%
FY 2023-24
9
6
%
FY 2022-23
9
5
%
FY 2021-22
local asset owners but unlocks multiple
large markets for trading and is therefore
also actively under consideration.
Volume traded
outside Denmark
We
are
PAGE 16
ANNUAL REPORT 2023-24YGGDRASIL
The Company
DK-9220 Aalborg Øst
CVR No: 40 30 06 43
Established: 28 February 2019
Registered office: Aalborg
Financial period: 1 July - 30 June
Board of Directors
Søren Agersbæk Jensen
Søren Bondo Andersen
Rasmus Nordestgaard Jensen
Executive Board
Søren Agersbæk Jensen
Søren Bondo Andersen
Thomas Tynor
Kei Shiraishi Bech
Auditors
Company
Information
PAGE 17
ANNUAL REPORT 2023-24YGGDRASIL
Financial
statements
1 July 2023 – 30 June 2024
PAGE 18
ANNUAL REPORT 2023-24YGGDRASIL
Consolidated statement of
comprehensive income
For the year ended 30 June 2024
Profit or loss
TDKK Notes 2023/24 2022/23
Net income from trading financial energy derivatives 3 403,441 308,182
Revenue 3 267,646 0
Cost of sales -262,073 0
Gross profit 409,013 308,182
Staff costs 4 -22,910 -18,923
Administrative expenses -13,642 -12,047
Operating profit 372,461 277,212
Financial income 5 14,002 12,935
Financial costs 5 -6,385 -4,297
Profit before tax 380,079 285,850
Tax on profit for the year 6 -100,736 -66,074
Profit for the year 279,342 219,776
Profit for the year is attributable to:
Owners of Yggdrasil Commodities ApS 279,342 219,776
Non-controlling interests 0 0
PAGE 19
ANNUAL REPORT 2023-24YGGDRASIL
Consolidated statement of
comprehensive income
For the year ended 30 June 2024
Comprehensive income
TDKK Notes 2023/24 2022/23
Profit for the year 279,342 219,776
Other comprehensive income that will be reclassified
subsequently to the profit or loss
Value adjustment of hedging instruments 0 258
Tax effect of equity adjustments 0 -56
Exchange rate adjustments on translation of subsidiaries -6,940 -12,573
Total comprehensive income 272,402 207,405
Total comprehensive income is attributable to:
Owners of Yggdrasil Commodities ApS 272,402 207,405
PAGE 20
ANNUAL REPORT 2023-24YGGDRASIL
Consolidated balance sheet
at 30 June
Balance sheet (asset)
TDKK Notes 30/6 2024 30/6 2023
Assets
Current assets
Receivables 16 112,304 37,881
Deposits 27,910 44,953
Other receivables 15,603 13,036
Total receivables 155,816 95,870
Cash and cash equivalents 8 567,513 374,974
Total current assets 723,329 470,844
Total assets 723,329 470,844
TDKK Notes 30/6 2024 30/6 2023
Equity and liabilities
Contributed capital 3,073 3,073
Hedge reserve 0 0
Retained earnings 383,262 110,279
Proposed dividend for the year 0 240,000
Total equity 386,335 353,352
Payables 202,718 24,192
Income tax payable 112,368 61,150
Other payables 21,908 32,150
Total current liabilities 336,994 117,492
Total liabilities 336,994 117,492
Total equity and liabilities 723,329 470,844
Balance sheet (equity and liabilities)
PAGE 21
ANNUAL REPORT 2023-24YGGDRASIL
Consolidated statement of
changes in equity
at 30 June
Changes in equity (fin. year) Changes in equity (prev. year)
TDKK
Contributed
capital
Retained
earnings
Proposed
dividends
for the year
Total equity
owners of
the parent
Non-con-
trolling
interests
Total
equity
Equity at 1 July 2023 3,073 110,279 240,000 353,352 0 353,352
Profit for the year 0 279,342 0 279,342 0 279,342
Value adjust. of
hedging
instruments
Tax effect, equity
adjust.
Exchange rate adjust.
subsidiaries
Total comprehensive
income
Paid ordinary
dividends
Warrants 0 581 0 581 0 581
Total transactions
with shareholders
Equity at 30 June
2024
TDKK
Con-
tributed
capital
Hedge
reserve
Retained
earnings
Proposed
dividends
for the year
Total equity
owners of
the parent
Non-con-
trolling
interests
Total
equity
Equity at 1 July 2022 3,073 -202 142,985 - 145,856 - 145,856
Profit for the year - - -20,224 240,000 219,775 - 219,775
Value adjust. of
hedging
instruments
Tax effect, equity
adjust.
Exchange rate adjust.
subsidiaries
Total comprehensive
income
Share-based
payments
Total transactions
with shareholders
Equity at 30 June
2023
PAGE 22
ANNUAL REPORT 2023-24YGGDRASIL
Consolidated statement of cash
flows
For the year ended 30 June
Cash flows
TDKK Notes 2023/24 2022/23
Profit/loss for the year 279,342 219,776
Adjustments 11 93,699 57,527
Changes in working capital 11 115,291 38,659
Cash flow from operating activities before
financials
Paid net finance income/finance costs 7,617 6,827
Cash flow from ordinary activities 495,950 322,789
Corporate tax paid -49,518 -41,790
Cash flow from operating activities 446,432 280,999
Cash flow from investment activities - -
Loan credit institution - -6,000
Dividend paid -240,000 -
Cash flow from financing activities -240,000 -6,000
Changes in cash and cash equivalents 206,432 274,999
Cash and cash equivalents at 1 January 368,021 105,595
Currency adjustment -6,940 -12,573
Cash and cash equivalents at 31 December 567,513 368,021
PAGE 23
ANNUAL REPORT 2023-24YGGDRASIL
Overview of
Notes
Contents of the notes to the
consolidated financial statements
Summary of significant accounting policies
Estimation uncertainties and judgements
Trading income and revenue
Staff costs
Financial income and costs
Tax on profit for the year
Group composition
Cash and cash equivalents
Share capital
Capital management
Cash flow specifications
Changes in liabilities from financing activities
Contractual obligations, contingencies, etc.
Financial risks and the use of derivative financial instruments
Market risk
Credit risk
Liquidity risk
Financial instruments by category
Fair value measurement
Related party transactions
Subsequent events
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
24
29
30
31
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
PAGE 24
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
The annual report for the financial year
1 July 2023 – 30 June 2024 has been
prepared in accordance with International
Financial Reporting Standards as adopted
by the EU and additional Danish disclosure
requirements. The Group is classified as a
reporting class c entity according to the
Danish Financial Statements Act.
Yggdrasil Commodities ApS’ annual report
is presented in TDKK unless otherwise
stated.
For all periods up to and including the year
ended 30 June 2024 the Group and its
subsidiaries prepared their separate and
individual financial statements in accor-
dance with IFRS.
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 subsidiaries’
equity at the beginning of the year at the
exchange rates at the balance sheet date
and from the translation of income state-
ments from the average exchange rates
for the currency exchange rates at the
balance sheet date are recognised directly
in other comprehensive income.
New standards and interpretations and
not yet adopted
The Group has adopted relevant new or
amended standards (IFRS) and interpre-
tations (IFRIC), which have been adopted
by the EU and which are effective for the
financial year July 1, 2023 – June 30, 2024.
The following has been adopted:
• Amendments to IAS 8 Accounting poli-
cies: Changes in Accounting Estimates
and Errors - Definition of Accounting
Estimates.
•
Amendments to IAS 12 Income Taxes:
Deferred Tax related to Assets and
Liabilities arising from a Single Trans-
action.
•
Amendments to IAS 1 Presentation of
Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting
policies.
•
Amendments to IAS 12 Income Taxes:
International Tax Reform - Pillar Two
Model Rules.
•
New standard; IFRS 17 Insurance
Contracts.
In assessment of the Group, the new or
amended standards and interpretations
have neither had a material impact on the
consolidated financial statements nor on
the separate financial statements in 2023-
24.
Certain new accounting standards,
amendments to accounting stand-
ards and interpretations that have been
published are not mandatory for the
financial year 2023-24 reporting peri-
ods and have not been early adopted
by the Group. These standards include:
•
Amendments to IAS 1 Presentation of
Financial Statements: Classification of
Liabilities as Current or Non-current and
Non- current liabilities with covenants
(January 1, 2024, not yet endorsed by
the EU).
•
Amendments to IAS 7 and IFRS 7:
Supplier Finance Arrangements (Janu-
ary 1, 2024, not yet endorsed by the EU).
•
Amendments to IAS 21, Lack of
Exchangeability (January 1, 2025, not
yet endorsed by the EU).
The listed amendments are not expected
to have a material impact on the recog-
nition and measurement of the balance
PAGE 25
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
sheet at July 1, 2024, neither in terms of
the consolidated financial statements nor
in terms of the separate financial state
-
ments.
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.
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 negative.
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 correspondingly.
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.
Income
statement
Net income from trading financial
energy derivatives
The Group routinely enters into exchange
traded sale and purchase transactions for
physical delivery of energy commodities.
A considerable part of these transactions
for physical delivery of a non-financial
item are considered within the scope
of IFRS 9 due to the fact that the Group
has a practice of entering into offsetting
contracts before the delivery date.
Consequently, they are measured at
fair value on initial recognition and
subsequently measured at fair value
through profit and loss.
For contracts whose fair value cannot be
determined solely based on observable
market data, any difference between the
transaction price and transaction date fair
value determined by applying a valuation
model is deferred and recognized over the
term of the contract.
A portion of the sale and purchase trans-
actions for physical delivery of energy
commodities takes the form of contracts
that were entered into and continue to be
held for the purpose of receipt or delivery
of the physical commodity in accordance
with the Group’s expected sale, purchase
or usage requirements (“own use”) and
are not within the scope of IFRS 9. The
assessment of whether a contract is
deemed to be “own use” is based on the
nature of the contract as well as facts
and circumstances of how the contract is
included in the Group’s activities.
Revenue from contracts with customers
Revenue from contracts with customers is
measured at the transaction price, which
is the contractually agreed price excl.
VAT and taxes charged on behalf of third
parties.
Revenue from the sale of power and
energy-related services comprises
the sale of power sourced from energy
producers and related services in terms
of e.g. production management and
balancing. Revenue is recognised when
control of the power is transferred to the
PAGE 26
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
buyer simultaneously with fulfilment of
the related services, ie. when the power
is delivered. Agreements for the sale of
power and energy-related services are
considered a series of identical goods and
services that are transferred over time and
revenue is recognised at the amount to
which the Group is entitled.
Yggdrasil Commodities determines
whether it is acting as principal or agent
in these arrangements, based on whether
it holds the main risks related to, and
controls the power and services delivered
before selling it in the market. The Group
has concluded that we in all material
aspects are acting as principal in these
arrangements.
The sale of power is settled daily.
Cost of sales
Cost of sales includes the purchase
of power for resale and transportation
thereof incurred to achieve revenue for
the year.
Staff costs
Staff expenses comprise direct wages
and salaries, pension contributions, social
security contributions, sick leave, bonuses,
and share-based payments which are
recognized in the year in which the associated
services are rendered by employees of the
Group.
Share-based payments
Employees of the Group receive re-
muneration 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 valuation
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 conditions are
fulfilled (the vesting period). The cumulative
expense recognised for equity-settled
transactions at each reporting date until
the vesting date reflects the extent to
which the vesting period has expired and
the best estimate of the number of equity
instruments that will ultimately vest. The
expense or credit in the income statement
Balance sheet
Leases
The Group assesses at contract inception
whether a contract is, or contains, a
lease, that is, if the contract conveys the
right to control the use of an identified
asset for a period of time in exchange for
consideration.
The Group applies a single recognition
and measurement approach for all leases,
except for short-term leases and leases of
low-value assets. The Group recognises
lease liabilities representing obligations
to make lease payments and right-of-use
assets representing the right to use the
underlying assets.
The Group 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
exemption to leases of office equipment
for a period represents the movement in
cumulative expenses recognised at the
beginning and at the end of that period.
Administrative expenses
Administrative expenses comprise
expenses incurred during the year for
management and administration of the
Group, including expenses for office
premises, marketing, office expenses etc.
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.
PAGE 27
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
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
recognised in the income statement,
statement of other comprehensive or
equity, respectively.
Liabilities
Financial liabilities are recognised at
the date of borrowing at fair value,
corresponding to the proceeds
received less transaction costs paid.
In subsequent periods, the financial
liabilities are measured at amortised
cost, corresponding to the capitalised
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
nominal value.
Fair value measurement
The Group uses fair value for certain
disclosures and measurement of financial
instruments. Fair value is the price that
would be received to sell an asset or
paid to transfer a liability in an orderly
transaction 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 advantageous market
for the asset or liability. The fair value of
an asset or a liability is measured using
the assumptions that market participants
would use when pricing the asset or
liability, presuming that they are acting in
their economic best interest.
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.
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 Group’s risk
policy.
Deposits and other receivables
Deposits and other receivables consist
of deposits related to trading, receivable
VAT and miscellaneous receivables.
Other receivables are measured at
amortized cost. Deposits represent
the amount of cash required for
trading positions with certain counter-
parties.
PAGE 28
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
Financial
Highlights
Return on assets
Profit before financials x 100
Total assets at year end
Solvency ratio
Equity at year end x 100
Total assets at year end
Return on equity
Net profit for the year x 100
Average equity
Cash flow
statement
The cash flow statement shows the
Group’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 Group’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 corporation
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 Group’s contributed capital and
costs in this respect as well as raising of
loans, instalments on interest-bearing
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.
The Group uses valuation techniques that
are appropriate in the circumstances and
for which sufficient data are available 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
liabilities.
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.
PAGE 29
ANNUAL REPORT 2023-24YGGDRASIL
2. Estimation uncertainties
and judgements
The preparation of financial statements
requires the use of accounting estimates
which, by definition, will seldom equal the
actual results. Management also needs
to exercise judgement in applying the
Company’s accounting policies.
This note provides an overview of the areas
that involved a higher degree of judgement
or complexity, and of items which are more
likely to be materially adjusted due to
estimates and assumptions turning out
to be wrong. Detailed information about
each of these estimates and judgements
is included in other notes together with
information about the basis of calculation
for each affected line item in the financial
statements. In addition, this note also
explains where there have been actual
adjustments this year as a result of an error
and of changes to previous estimates.
Judgements
Presentation of net and gross income
Management uses significant judgments
when determining presentation of income
from complex contracts that contain
certain sales of goods or services that are
not clearly defined within the IFRS frame-
work. In this assessment, management
takes into consideration both the indi-
vidual characteristics of the goods and
services and the nature of the promise
within the context of the contract, evaluat-
ing all the facts and circumstances relating
to the specific contract under the relevant
legal and regulatory framework as well as
assessing whether the Company acts as
principal or agent to determine the appro-
priate presentation of income.
Estimates
Valuation of derivatives and
commodity contracts not entered into
for the Company’s own use
In some cases, the fair values of deriva-
tives are estimated using internal models
due to the absence of quoted prices or
other observable, market-corroborated
data. This primarily applies to the Compa-
ny’s medium-term, structured derivative
contracts or contracts in illiquid markets.
The majority of these contracts are valued
using models with inputs that include price
curves for each of the different products.
These price curves are built up from
available active market pricing data
including volatility and correlation and
modelled using the maximum available
market-derived information. Addition-
ally, when limited data exist for certain
products or market areas, prices are
determined using historical and long-
term pricing relationships. The use of
alternative estimates or valuation meth-
odologies may result in significantly
different values for these derivatives. The
Company also trades capacities for which
no active market exists hence the price is
estimated. The estimate is based on the
future spreads between the given market
areas, which may result in different values
for these derivatives.
PAGE 30
ANNUAL REPORT 2023-24YGGDRASIL
3. Trading income and revenue
Trading income, net
Gains and losses arising from trading with
energy commodity derivatives includ-
ing futures, options, swaps and certain
forward sales and purchases are excluded
from revenue and presented separately.
Likewise, energy commodity contracts
with physical delivery with a net settle-
ment option or past practice of settlement
of contracts in net cash or other financial
instruments are also to be excluded from
revenue since these energy commodity
contracts and treated considered within
the scope of IFRS 9 Financial instruments.
Given the nature of the company’s busi-
ness model and contracts with counter-
parties all gains and losses arising from
trading with energy commodity deriva-
tives are accounted for using IFRS 9 Finan-
cial instruments.
Revenue from contracts with
customers
Revenue from contracts with customers is
measured at the transaction price, which is
the contractually agreed price excl. VAT and
taxes charged on behalf of third parties.
Revenue from the sale of power and ener-
gy-related services comprises the sale of
power sourced from energy producers and
related services in terms of e.g. production
management and balancing. Revenue is
recognised when control of the power is
transferred to the buyer simultaneously
with fulfilment of the related services, ie.
when the power is delivered. Agreements
for the sale of power and energy-related
services are considered a series of identi-
cal goods and services that are transferred
over time and revenue is recognised at the
amount to which the Group is entitled.
Yggdrasil Commodities determines
whether it is acting as principal or agent
in these arrangements, based on whether
it holds the main risks related to, and
controls the power and services deliv-
ered before selling it in the market. The
Group has concluded that we in all mate-
rial aspects are acting as principal in these
arrangements.
The sale of power is settled daily.
TDKK 2023/24 2022/23
Net income from trading financial energy derivatives 403,441 308,182
Revenue from contracts with customers 267,646 0
Trading income and revenue 671,087 308,182
PAGE 31
ANNUAL REPORT 2023-24YGGDRASIL
4. Staff costs
TDKK 2023/24 2022/23
Wages and salaries 20,490 17,563
Share-based payments 581 91
Pension cost (defined contribution plans) 1,429 1,116
Other social security costs 410 153
Total 22,910 18,923
Average number of full time employees 29 24
Key management personnel (Others) consists of the Board of Directors and the Executive Board.
The compensation paid or payables to key management personnel for employee services is
shown below:
TDKK 2023/24
Executive
Board
Board of
Directors
Total
Wages and salaries 2,684 200 2,884
Share-based payments 128 0 128
Pension cost (defined contribution plans) 236 - 236
Other personnel costs - - -
Other social security costs - - -
Total remuneration to Executive Management 3,048 200 3,248
TDKK 2022/23
Executive
Board
Board of
Directors
Total
Wages and salaries 1,303 75 1,378
Pension cost (defined contribution plans) 122 - 122
Other personnel costs - - -
Other social security costs - - -
Total remuneration to Executive Management 1,425 75 1,500
PAGE 32
ANNUAL REPORT 2023-24YGGDRASIL
4. Staff costs
Share-based payments
To incentivise employees the Group
established share-based payment incen-
tive plans for employees.
At 30 June 2022, the Group had estab-
lished a Warrant Incentive Program.
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
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 36
tranches with the following structure:
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 majority of the
Group’s assets or a listing of the Compa-
ny’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
program is 1.5 years.
The fair value of warrants granted in 2024
amounts to TDKK 1,759 (2022/23: TDKK
1,106). The employees that have been
given warrants have the option to buy
the predefined amount of shares at a
predefined value.
For warrants outstanding at the end of
the year, the remaining contractual life is
9 months.
The Executive Board is covered by a
comparable warrant program. The key
terms are the same as for the employees.
In June 2024, 14,000 warrants were
granted under the program (June 2023: 0).
The Board of Directors are not covered by
Warrant Incentive Program.
Measurement of fair value
Key input the valuation of warrants
includes excercise prices in a range of DKK
114-451.
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 2023/24 was TDKK 581
(2022/23: TDKK 91).
Employees
(number of warrants)
2023/24 2022/23
Outstanding at 1 July 46,150 17,297
Granted during the
year
36,730 33,953
Forfeited during the
year
-700 -5,100
Outstanding at
30 June
82,180 46,150
Reconciliation of outstanding
equity-settled awards:
PAGE 33
ANNUAL REPORT 2023-24YGGDRASIL
5. Financial income and costs
TDKK 2023/24 2022/23
Financial income
Interest income measured at amortised cost 9,401 11,098
Exchange rate adjustments, net 4,071 0
Other financial income 530 1,837
Total financial income 14,002 12,935
Financial costs
Interest expense measured at amortised cost 3,887 2,985
Exchange rate adjustments, net 0 26
Other financial expenses 2,497 1,286
Total financial expenses 6,385 4,297
PAGE 34
ANNUAL REPORT 2023-24YGGDRASIL
6. Tax on profit for the year
TDKK 2023/24 2022/23
Current tax
Current tax for the year -100,736 -66,074
Deferred tax adjustment for the year 0 -
Income tax expense -100,736 -66,074
Reconciliation of effective tax rate
TDKK 2023/24 % 2022/23 %
Tax at the Danish tax rate of 22% -83,617 22.0% -62,887 22.0%
Tax effects of amounts which are not
deductible (taxable) in calculating taxable
income:
Effect of foreign tax rates -17,066 4.5% -3,183 1.1%
Non-deductible items 0 0.0% -7 0.0%
Non-taxable income -53 0.0% 3 0.0%
Income tax expense -100,736 26.5% -66,074 23.1%
PAGE 35
ANNUAL REPORT 2023-24YGGDRASIL
7. Group composition
Name/legal form
Registrered
office
Equity
interest
Thordin ApS Aalborg 100%
Dvalin ApS Aalborg 100%
Nidhog ApS Aalborg 100%
Asgard ApS (formerly operating 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%
Yggdrasil India India 100%
PAGE 36
ANNUAL REPORT 2023-24YGGDRASIL
8. Cash and cash equivalents
TDKK 2023/24 2022/23
Cash at bank 536,222 318,194
Counterparty deposits which can be released with a short timeframe 31,291 49,827
Total cash at bank and cash equivalents in cash flow statement 567,513 368,021
Purchase price for shares deposited with bank 0 6,953
Carrying amount at 30 June 567,513 374,974
PAGE 37
ANNUAL REPORT 2023-24YGGDRASIL
9. Share capital
30 June 2024 30 June 2023
Number of
shares
Nominal
value DKK
Number of
shares
Nominal
value DKK
The share capital comprise:
A shares 2,818,554 2,818,554 2,818,554 2,818,554
B shares 254,446 254,446 254,446 254,446
All shares are fully paid. A shares carry one vote per share and right to dividends. B shares carry no
voting right or dividends.
DKK per share 30 June 2024 30 June 2023
Total dividend paid out for the year 240,000 0
Total dividend proposed for the year 85.2 0.0
Total dividend proposed for the year 0 240,000
PAGE 38
ANNUAL REPORT 2023-24YGGDRASIL
10. Capital management
The current level of contributed capital is
deemed to be sufficient and appropriate
to support the principal activities of the
Group.
During the financial year some of the
posted cash collateral with the TSOs have
been replaced by letter of credits. Letter
of credits have increased by EUR 8,168,153
(Bank guarantees totalled EUR 21,135,843 at
30 June 2024, 12.97m EUR FY 22/23). Letter
of credits are issued and governed by the
banking arrangements of the Yggdrasil
Group. These banking arrangements have
cross securities within the Yggdrasil Group
Cash management is managed on a group
level and management is responsible for
maintaining a comfortable cash buffer at
all times. If necessary the Company can
procure cash or letter of credit from the
holding company.
PAGE 39
ANNUAL REPORT 2023-24YGGDRASIL
11. Cash flow specifications
TDKK 2023/24 2022/23
Other adjustments
Warrants 581 91
Financial income -14,002 -12,935
Financial costs 6,385 4,297
Tax on profit for the year 100,736 66,074
93,699 57,527
Changes in net working capital
Changes in receivables -59,946 28,776
Changes in trade and other payables 168,284 -4,616
Changes in deposited cash 6,953 14,499
115,291 38,659
PAGE 40
ANNUAL REPORT 2023-24YGGDRASIL
12. Changes in liabilities from
financing activities
TDKK
Credit
institution
Shareholder
loan
Total
2023/24
Debt as at 1 July 2023 - - -
Proceeds
Repayments
Changes
Cash flows - - -
Currency adjustments
Other
Non-cash flows - - -
Debt as at 30 June 2024 - - -
2022/23
Debt as at 1 July 2022 6,000 - 6,000
Proceeds - - -
Repayments -6,000 - -
Changes - - -
Cash flows -6,000 - -6,000
Currency adjustments - - -
Other - - -
Non-cash flows - - -
Debt as at 30 June 2023 - - -
PAGE 41
ANNUAL REPORT 2023-24YGGDRASIL
13. Contractual obligations,
contingencies, etc.
Bank guarantees
Bank guarantees total TDKK 160,072 at 30
June 2024 (30 June 2023: TDKK 179,282).
Security and charges
As security for bank debt, two of the
Groups’ companies (Nidhog ApS & Dvalin
ApS) has issued a corporate mortgage of
TDKK 6,000 in the companies’ recievables,
the fixtures and fittings, tools and equip-
ment and intellectual property rights. The
total value of these assets as of 30 June
2024 constitutes TDKK 80,490.
Leases
Regarding lease liabilities refer to the
parent company financial statements.
PAGE 42
ANNUAL REPORT 2023-24YGGDRASIL
14. 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,
interest 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 diver-
sify our portfolio, which will enable us to
better manage risk exposure, minimise
losses, and create ongoing 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 management.
We focus on spreading investments in
many different power markets to avoid that
a single power market becomes too domi-
nant in our portfolio. Hence, for each single
market added to the portfolio, we dilute
market risk further and reduce the poten-
tial 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 depend-
ent on weather conditions, and big leaps
in prices are often caused by unforeseen
weather changes. Hence, markets located in
the same regions are affected by the same
weather conditions, which makes invest-
ments 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.
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 43
ANNUAL REPORT 2023-24YGGDRASIL
15. Market risk
Commodity price risk
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.
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 TDKK 2,032 (2022/23:
TDKK 587) whereof a 229 TDKK is related
to the settlement of derivative contracts
(2022/23: TDKK -38). In addition to the
above daily trading positions, the subsid-
iary 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 there-
fore assessed to represent 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, JPY and INR) through the operational
entities, and therefore no hedging of trad-
ing transactions and receivables/payables
is performed.
Interest rate risk
Due to the limited magnitude of
the loans as well as the short-term
nature of the business activities the
Group does not consider this risk to be
significant.
At 30 June, open positions including financial derivative contracts can be specified as:
Impact on
post tax profit
Impact on
equity
TDKK 2023/24 2022/23 2023/24 2022/23
DKK/USD +/- 10% 1,929 3,252 1,929 3,252
DKK/GBP +/- 10% 2,962 4,789 2,962 4,789
DKK/EUR +/- 10% 4,024 3,376 4,024 3,376
DKK/JPY +/- 10% -5,019 3,178 -5,019 3,178
DKK/INR +/- 10% 123 153 123 153
The development can be specified as:
TDKK 2023/24 2022/23
Fair value at 1 July -259
Settled during the year - 259
Fair value adjustments - -
Total -
Monetary items and sensitivity:
2023/24 2022/23
Net assets
Derivative
contracts
Net assets
Derivative
contracts
Currency
USD 3,549 0 6,124 0
GBP 6,917 0 7,123 0
EUR 4,310 0 5,818 0
JPY -1,482,600 0 863,093 0
INR 18,801 0 23,627 0
PAGE 44
ANNUAL REPORT 2023-24YGGDRASIL
16. Credit risk
Credit risk
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 Group uses banks and
clearing banks with an A category rating
from public rating agencies.
The credit risk of financial receivables
corresponds to the values of trade
receivables, 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 2024 and at 30 June 2023.
Due to the type of counterparties and as
commodity exchanges generally settle fair
values on a daily basis, the Group considers
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 (26 out of total 50
counterparties). Number of counterparties
rated in B category are limited (11 out of
total 50 counterparties). Ratings are not
available for 13 counterparties.
PAGE 45
ANNUAL REPORT 2023-24YGGDRASIL
17. Liquidity risk
Liquidity risk management implies main-
taining sufficient cash and marketable
securities and the availability of funding
through an adequate amount of commit-
ted credit facilities to meet obligations
when due and to close out market posi-
tions.
Management monitors rolling forecasts of
the Group’s liquidity reserve and cash and
cash equivalents on the basis of expected
cash flows. The Group aims to diligently
monitor balance sheet liquidity ratios,
aligning them with internal and external
regulatory requirements, while proactively
developing and executing effective debt
financing plans to sustain its operations
and foster continued growth.
The tables below classify the group’s
financial liabilities and commitments
into relevant maturity groupings
based on their contractual maturities.
The amounts disclosed in the table are
the contractual undiscounted cash flows.
Balances due within 12 months equal
their carrying balances as the impact of
discounting is not significant.
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.
Carrying
amount
Cash flows including interest
TDKK 0-1 year 1-5 years over 5 years Total
Maturities of liabilities and
commitments
2023/24
Forward currency derivates 0 0 0 0 0
Non-derivative financial
instruments:
Credit institution 0 0 0 0 0
Trade payables 202,718 202,718 0 0 202,718
Other payables 21,908 21,908 0 0 21,908
Total 224,626 224,626 0 0 224,626
2022/23
Forward currency derivates 0 0 0 0 0
Non-derivative financial
instruments:
Credit institution 0 0 0 0 0
Trade payables 24,192 24,192 0 0 24,192
Amounts owed to shareholders 0 0 0 0 0
Other payables 32,150 32,150 0 0 32,150
Total 56,342 56,342 0 0 56,342
PAGE 46
ANNUAL REPORT 2023-24YGGDRASIL
18. Financial instruments by
category
TDKK 2023/24 2022/23
The group holds the following financial instruments:
Financial assets
Carried at amortised cost
Receivables 155,816 95,870
Cash and cash equivalents 567,513 374,974
Financial assets at amortised cost 723,329 470,844
Financial liabilities
Carried at amortised cost
Credit institutions 0 0
Trade payables 202,718 24,192
Other payables 21,908 32,150
Financial liabilities at amortised cost 224,626 56,342
Total financial liabilities 224,626 56,342
Financial assets and financial liabilities above are not offset, and therefore gross
amounts are recognised in the balance sheet.
PAGE 47
ANNUAL REPORT 2023-24YGGDRASIL
19. Fair value measurement
TDKK
Level
1
Level
2
Level
3
Total
2023/24
Derivatives measured at fair value
Foreign exchange forward - - - -
Total - - - -
2022/23
Derivatives measured at fair value -
Foreign exchange forward - -259 - -259
Total - -259 - -259
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 Group has not transferred between
levels of the fair value hierarchy during
2023/24.
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.
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.
No assets or liabilities are measured to fair
value by using level 3 inputs at 30 June
2024 or 30 June 2023.
PAGE 48
ANNUAL REPORT 2023-24YGGDRASIL
20. Related party transactions
Yggdrasil Commodities ApS’ related parties
comprise the Board of Directors, Execu-
tive Board, their close family members,
subsidiaries (see note 7) and the following
controlling holding companies:
Søren Bondo Andersen Holding ApS
Leharparken 85
9200 Aalborg SV
Denmark
SAJ Finans ApS
Hornbækvej 6
9270 Klarup
Denmark
Transactions with related parties
Related party transactions include salaries
to Management (see note 4).
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 TDKK 0
(2022/23: TDKK 0).
PAGE 49
ANNUAL REPORT 2023-24YGGDRASIL
21. Subsequent events
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.
PAGE 50
ANNUAL REPORT 2023-24YGGDRASIL
Parent com-
pany financial
statements
1 July 2023 – 30 June 2024
PAGE 51
ANNUAL REPORT 2023-24YGGDRASIL
Parent company statement of
comprehensive income
For the year ended 30 June 2024
Profit or loss
TDKK Notes 2023/24 2022/23
Revenue 2 108,293 92,530
Staff costs 3 -19,803 -16,735
Administrative expenses -8,825 -8,952
Operating income/loss 79,665 66,843
Income from equity investments in subsidiaries 220,794 167,212
Financial income 4 10,189 1,611
Financial costs 4 -14,759 -1,033
Profit before tax 295,889 234,633
Tax on profit for the year 5 -16,546 -14,857
Profit for the year 279,343 219,776
PAGE 52
ANNUAL REPORT 2023-24YGGDRASIL
Parent company statement of
comprehensive income
For the year ended 30 June 2024
Comprehensive income
TDKK Notes 2023/24 2022/23
Profit for the year 279,343 219,776
Other comprehensive income that will be reclassi-
fied subsequently to the profit or loss
Value adjustment of hedging instruments 0 259
Tax effect of equity adjustments 0 57
Exchange rate adjustments on translation of
subsidiaries
-6,940 -12,573
Total comprehensive income 272,402 207,519
PAGE 53
ANNUAL REPORT 2023-24YGGDRASIL
Parent company balance sheet
at 30 June
Balance sheet (asset)
TDKK Notes 30/6 2024 30/6 2023
Assets
Non-current assets
Equity investments in subsidiaries 6 279,420 218,566
Total non-current assets 279,420 218,566
Current assets
Deposits 261 253
Amounts owed by subsidiaries 48,299 83,662
Other receivables 606 762
Total receivables 49,166 84,677
Cash and cash equivalents 7 353,608 137,012
Total current assets 402,774 221,689
Total assets 682,194 440,255
Balance sheet (equity and liabilities)
TDKK Notes 30/6 2024 30/6 2023
Equity and liabilities
Contributed capital 3,073 3,073
Reserve for net revaluation under equity method 0 29,220
Retained earnings 383,263 81,060
Proposed dividend for the year 0 240,000
Total equity 386,336 353,352
Amounts owed to subsidiaries 267,931 51,439
Derivative financial instruments 0 0
Income tax payable 23,787 14,068
Other payables 4,140 21,396
Total current liabilities 295,858 86,903
Total liabilities 295,858 86,903
Total equity and liabilities 682,194 440,255
PAGE 54
ANNUAL REPORT 2023-24YGGDRASIL
Parent company statement of
changes in equity
Changes in equity (fin. year)
TDKK
Contributed
capital
Reserve for net
revaluation
under the
equity method
Retained
earnings
Proposed
dividends
for the year
Total
equity
Equity at 1 July 2023 3,073 29,220 81,060 240,000 353,353
Profit for the year 0 -22,279 301,622 0 279,343
Value adjust. of hedging
instruments
0 0 0 0 0
Tax effect, equity adjust. 0 0 0 0 0
Exchange rate adjust.
subsidiaries
0 -6,940 0 0 -6,940
Total comprehensive
income
0 -29,220 301,622 0 272,402
Paid dividend 0 0 0 -240,000 -240,000
Warrants 0 0 581 0 581
Total transactions with
shareholders
0 0 581 -240,000 0
Equity at 30 June 2024 3,073 0 383,263 0 386,336
Changes in equity (fin. year)
TDKK
Con-
tributed
capital
Reserve for net
revaluation
under the
equity method
Hedge
reserve
Retained
earnings
Proposed
dividends
for the year
Total
equity
Equity at 1 July 2022 3,073 75,491 -202 67,494 0 145,856
Transfer 0 0 0 0 0 0
Profit for the year 0 -33,698 0 13,475 240,000 219,777
Value adjust. of hedging
instruments
0 0 258 0 0 258
Tax effect, equity adjust. 0 0 -56 0 0 -56
Exchange rate adjust.
subsidiaries
0 -12,573 0 0 0 -12,573
Total comprehensivein-
come
0 -46,271 202 13,475 240,000 207,406
Warrants 0 0 0 91 0 91
Total transactions with
shareholders
0 0 0 91 0 91
Equity at 30 June 2023 3,073 29,220 0 81,060 240,000 353,353
PAGE 55
ANNUAL REPORT 2023-24YGGDRASIL
Parent company statement of
cash flows
For the year ended 30 June
Cash flows
TDKK Notes 2023/24 2022/23
Profit/loss for the year 279,343 219,776
Other adjustments of non-cash operating items 8 -199,097 -152,842
Changes in working capital 8 -10,155 25,001
Cash generated from operations before
financials
70,091 91,935
Paid net finance income/finance costs -4,570 -345
Cash flow from ordinary activities 65,521 91,590
Paid taxes during the year -6,827 -246
Cash flow from operating activities 58,694 91,344
Equity investments in subsidiaries 0 -2,120
Dividends received 153,000 47,910
Cash flow from investment activities 153,000 45,790
Change in intercompany loan 251,855 -8,265
Dividend paid -240,000 0
Repayment of loan from shareholders 0 0
Cash flow from financing activities 11,855 -8,265
Changes in cash and cash equivalents 223,549 128,869
Cash and cash equivalents at 1 January 130,059 1,190
Cash and cash equivalents at 31 December 7 353,608 130,059
PAGE 56
ANNUAL REPORT 2023-24YGGDRASIL
Overview of
Notes
Contents of the notes to the parent
company financial statements
Summary of significant accounting policies
Revenue
Staff costs
Financial income and costs
Tax on profit for the year
Equity investments in subsidiaries
Cash and cash equivalents
Cash flow specifications
Liabilities
Contractual obligations, contingencies, etc.
Financial instruments by category
Financial risks
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
57
61
62
64
65
66
67
68
69
70
71
72
PAGE 57
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
The annual report for the financial year
1 July 2023 – 30 June 2024 has been
prepared in accordance with International
Financial Reporting Standards as adopted
by the EU and additional Danish disclosure
requirements. The Group is classified as a
reporting class c entity according to the
Danish Financial Statements Act.
Yggdrasil Commodities ApS’ annual report
is presented in TDKK unless otherwise
stated.
For all periods up to and including the year
ended 30 June 2023 the Company and its
subsidiaries prepared their separate and
individual financial statements in accord-
ance with IFRS.
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.
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 correspondingly.
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.
Income
statement
Revenue
Revenue comprises management fees and
royalties from the subsidaries within the
Group.
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.
Services provided to the subsidiaries typi-
cally include one performance obligation
that is recognized on a straight-line basis
as revenue over the period for which the
services are provided.
The transaction price is the contractually
agreed price excluding amounts collected
on behalf of third parties, e.g. VAT.
Staff costs
Staff expenses comprise direct
wages and salaries, pension contri-
butions, social security contributions,
sick leave, bonuses, and share-based
payments which are recognized in
the year in which the associated
services are rendered by employees of
the Group.
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
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.
PAGE 58
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
Administrative expenses
Administrative expenses comprise
expenses incurred during the year for
management and administration of the
Group, including expenses for office
premises, marketing, office expenses etc.
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.
The Company is jointly taxed with Danish
Group companies. The tax effect of the
joint taxation with the subsidiaries is allo-
cated to Danish enterprises showing prof-
its or losses in proportion to their taxable
incomes.
Balance sheet
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
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 carry-
ing amount and the tax value of assets and
liabilities measured on the planned use
PAGE 59
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
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, corre-
sponding to the proceeds received less
transaction costs paid. In subsequent
periods, the financial liabilities are meas-
ured at amortised cost, corresponding to
the capitalised 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-
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
liabilities.
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.
PAGE 60
ANNUAL REPORT 2023-24YGGDRASIL
1. Summary of significant
accounting policies
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 corporation
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 investing 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-bearing
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.
PAGE 61
ANNUAL REPORT 2023-24YGGDRASIL
2. Revenue
TDKK 2023/24 2022/23
Net revenue from management fee from subsidiaries 27,805 30,102
Royalty from subsidiaries 80,488 62,428
Revenue 108,293 92,530
Revenue consists of management fees and
royalties to the parent’s subsidiaries and
is recognised over time.
The consideration is partly fixed and partly
dependent on financial performance in the
subsidiaries, and the typically payment
terms are 1-30 days and without financing
components. Due to the nature of the
performance obligations there are no
return, refunds, warranty or other similar
obligations related to the revenue.
PAGE 62
ANNUAL REPORT 2023-24YGGDRASIL
3. Staff costs
TDKK 2023/24 2022/23
Wages and salaries 17,700 15,375
Share-based payments 581 91
Pension cost, defined contribution plans 1,300 1,116
Other social security costs 222 153
Total 19,803 16,735
Average number of full time employees 26 22
Key management personnel (Others) consists of the Board of Directors and the Executive Board.
The compensation paid or payables to key management personnel for employee services is shown
below:
TDKK 2023/24
Executive
Board
Board of
Directors
Total
Wages and salaries 2,684 200 2,884
Share-based payments 128 0 128
Pension costs 236 0 236
Other social security costs 0 0 0
Total remuneration to Executive Management 3,048 200 3,248
TDKK 2022/23
Executive
Board
Board of
Directors
Total
Wages and salaries 1,303 75 1,378
Pension costs 122 - 122
Other social security costs - - -
Total remuneration to Executive Management 1,425 75 1,500
PAGE 63
ANNUAL REPORT 2023-24YGGDRASIL
3. Staff costs
Share-based payments
To incentivise employees the Group
established share-based payment incen-
tive plans for employees.
At 30 June 2022, the Group had estab-
lished a Warrant Incentive Program.
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
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 majority of the
Group’s assets or a listing of the Compa-
ny’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
program is 1.5 years.
The fair value of warrants granted in 2024
amounts to TDKK 1,759 (2022/23: TDKK
1,106). The employees that have been
given warrants have the option to buy the
predefined amount of shares at a prede-
fined value.
Measurement of fair value
Key input the valuation of warrants
includes excercise prices in a range of DKK
114-451.
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 2023/24 was TDKK 581
(2022/23: TDKK 91).
Employees
(number of warrants)
2023/24 2022/23
Outstanding at 1 July 46,150 17,297
Granted during the
year
36,730 33,953
Forfeited during the
year
-700 -5,100
Outstanding at 30
June
82,180 46,150
Reconciliation of outstanding
equity-settled awards:
PAGE 64
ANNUAL REPORT 2023-24YGGDRASIL
4. Financial income and costs
TDKK 2023/24 2022/23
Financial income
Interest income measured at amortised cost 6,046 688
Interest income from subsidiaries 4,143 0
Exchange rate adjustments, net 0 923
Total financial income 10,189 1,611
Financial costs
Interest expense measured at amortised cost 934 947
Interest expense to subisidiaries 8,955 0
Exchange rate adjustments, net 4,755 0
Other financial expenses 115 86
Total financial expenses 14,759 1,033
PAGE 65
ANNUAL REPORT 2023-24YGGDRASIL
5. Tax on profit for the year
TDKK 2023/24 2022/23
Current tax
Current tax for the year 16,546 14,857
Deferred tax adjustment for the year 0 0
Income tax expense 16,546 14,857
Reconciliation of effective tax rate
TDKK 2023/24 % 2022/23 %
Tax at the Danish tax rate of 22% 65,096 22.0% 51,619 22.0%
Tax effects of amounts which are not
deductible (taxable) in calculating taxable
income:
Effect of foreign tax rates 0 0.0% 0 0.0%
Non-deductible items 25 0.0% 25 0.0%
Non-taxable income -48,575 20.7% -36,787 15.7%
Income tax expense 16,546 42.7% 14,857 37.7%
PAGE 66
ANNUAL REPORT 2023-24YGGDRASIL
6. Equity investments in
subsidiaries
TDKK 2023/24 2022/23
Cost at 1 July 36,345 34,225
Additions - 2,120
Dispossals - -
Cost at 30 June 36,345 36,345
Value adjustments at 1 July 182,220 75,491
Profit for the year 220,794 167,212
Dividends paid -152,999 -47,910
Currency adjustments -6,940 -12,573
Disposals - -
Value adjustments at 30 June 243,074 182,220
Carrying amount at 30 June 279,420 218,565
Name/legal form
Registrered
office
Equity
interest
Thordin ApS Denmark 100%
Dvalin ApS Denmark 100%
Nidhog ApS Denmark 100%
Asgard ApS Denmark 100%
Valhall GK Japan 100%
Future Electricity Trading (GK) Japan 100%
Japan Power Trading (GK) Japan 100%
Raijin Energy (GK) Japan 100%
Yggdrasil Commodities India Ptd. India 100%
PAGE 67
ANNUAL REPORT 2023-24YGGDRASIL
7. Cash and cash equivalents
TDKK 2023/24 2022/23
Cash at bank 353,608 130,059
Counterparty deposits which can be released with a short timeframe 0 0
Total cash at bank and cash equivalents in cash flow statement 353,608 130,059
Deposits secured for guarantees 0 0
Purchase price for shares deposited with bank 0 6,953
Carrying amount at 30 June 353,608 137,012
PAGE 68
ANNUAL REPORT 2023-24YGGDRASIL
8. Cash flow specifications
TDKK 2023/24 2022/23
Other adjustments
Warrants 581 91
Financial income -10,189 -1,611
Financial costs 14,759 1,033
Tax on profit for the year 16,546 14,857
Adjustment of subsidiary equity value -220,794 -167,212
-199,097 -152,842
Changes in net working capital
Changes in receivables 148 148
Changes in trade and other payables -17,256 10,354
Changes in deposited cash 6,953 14,499
-10,155 25,001
PAGE 69
ANNUAL REPORT 2023-24YGGDRASIL
9. Liabilities
TDKK
Carrying
amount
Cash flows
including interest
0-1 year
1-5
years
over 5
years
Total
Maturities of liabilities and commitments
2023/24
Derivative financial instruments
Forward currency derivates - - - - -
Non-derivative financial instruments:
Amounts owed to subsidiaries 267,931 267,931 - - 267,931
Other payables 4,140 4,140 - - 4,140
Total 272,071 272,071 - - 272,071
2022/23
Derivative financial instruments
Forward currency derivates - - - - -
Non-derivative financial instruments:
Amounts owed to subsidiaries 51,439 51,439 - - 51,439
Other payables 21,396 21,396 - - 21,396
Total 72,835 72,835 - - 72,835
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 (2022/23: six months) and aver-
age monthly lease payments of TDKK 62
(2022/23: TDKK 60), totalling TDKK 376
(2022/23: TDKK 360). The lease is not
recognised as an asset/liability as the
lease agreement is a short-term lease.
Furthermore, the Parent Company has
lease contracts regardindg equiptment
with remaining term up to 27 months
(2022/23: 24 months) and average monthly
lease payments of TDKK 13 totalling TDKK
135. The leases are not recognies as an
asset/liability as they comprise assets of
low value.
PAGE 70
ANNUAL REPORT 2023-24YGGDRASIL
10. Contractual obligations,
contingencies, etc.
Joint tax scheme
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 corpo-
ration 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.
Charges and security
The following assets have been placed as
security with bankers:
Shares of investment in certain subsidair-
ies. The value of these assets as of 30 June
2024 constitutes: TDKK 274,311.
Charges and security
Bank guarantees totals TDKK 143,739 at 30
June 2024 (2022/23: TDKK 166,417).
The Company has provided an unlimited
surety bond for the Group to Sydbank. The
total debt per 30 June 2023 is EUR 0.
Leases
Regarding leasing liabilities refer to disclo-
sures in note 11 (liabilities).
PAGE 71
ANNUAL REPORT 2023-24YGGDRASIL
11. Financial instruments by
category
TDKK 2023/24 2022/23
The group holds the following financial instruments:
Financial assets
Carried at amortised cost
Receivables 49,166 84,677
Cash and cash equivalents 353,608 137,012
Financial assets at amortised cost 402,774 221,689
Financial liabilities
Carried at amortised cost
Amounts owed to subsidiaries 267,931 51,439
Other payables 4,140 21,396
Financial liabilities at amortised cost 272,071 72,835
Carried at fair value through profit or loss (FVPL)
Financial derivatives - -
Financial liabilities at fair value through profit or loss (FVPL) - -
Total financial liabilities 272,071 72,835
Financial assets and financial liabilities above are not offset, and therefore gross amounts are
recognised in the balance sheet.
PAGE 72
ANNUAL REPORT 2023-24YGGDRASIL
12. Financial risks
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.
PAGE 73
ANNUAL REPORT 2023-24YGGDRASIL
Executive Board:
Board of Directors:
Executive Board
PAGE 74
ANNUAL REPORT 2023-24YGGDRASIL
Independent Auditor’s Report
PAGE 75
ANNUAL REPORT 2023-24YGGDRASIL
Independent Auditor’s Report
To the Shareholders of Yggdrasil Commodities ApS
CVR No 33 77 12 31
Annual
Report for the
financial year
{
“period”: “1 July 2023 - 30 June 2024”
}
Yggdrasil Commodities
Niels Jernes Vej 10
9220 Aalborg
Denmark
CVR: DK-40300643