| Annual report 2021 Page 1
ANNUAL
REPORT
2021
SKAKO A/S
CVR: 36440414
Bygmestervej 2
5600 Faaborg
Denmark
Accounting period:
1 January – 31 December 2021
Order backlog
(DKKm)
122.4
Up from 91.9
Revenue
(DKKm)
363.7
Up from 335.9
Conductor:
Solicitor Jan Bruun Jørgensen
EBIT
(DKKm)
20.3
Up from 15.2
EBIT margin
5,6%
Up from 4.5%
ROIC
10.3%
Up from 8.3%
| Annual report 2021 Page 2
CONTENTS
Management review
1. Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1 Letter to our shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2 Key events 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.3 Financial key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.4 Financial review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.5 Financial ambitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
1.6 Guidance 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.7 Why invest in SKAKO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
2. Business unit Concrete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.1 Partners choose SKAKO to improve their sustainability . . . . . . . . . 24
2.2 Financial performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
3. Business unit Vibration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.1 Strategy & business model . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.2 Financial performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
4. Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
4.1 Company announcements 2021 . . . . . . . . . . . . . . . . . . . . . . . 40
4.2 Corporate social responsibility . . . . . . . . . . . . . . . . . . . . . . . . 41
4.3 Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
4.4 Corporate governance and remuneration report . . . . . . . . . . . . . 50
4.5 Executive management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
4.6 Board of directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
4.7 Shareholder information . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
5. Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
5.1 Statement by Management . . . . . . . . . . . . . . . . . . . . . . . . . . 57
5.2 Independent auditor’s reports. . . . . . . . . . . . . . . . . . . . . . . . .58
5.3 Consolidated financial statements . . . . . . . . . . . . . . . . . . . . . 63
5.4 Consolidated notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
5.5 Parent company financial statements . . . . . . . . . . . . . . . . . . . 117
5.6 Parent company notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Important notice about this document
This document contains forward-looking statements. Words such as believe, expect, may, will, plan, strategy, prospect, foresee, estimate, project, anticipate, can,
intend, outlook, guidance, target and other words and terms of similar meaning in connection with any discussion of future operation of financial performance identify
forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set
forth. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect. The Covid-19 pandemic has increased
uncertainties in estimates and expectations to the future.
| Annual report 2021 Page 3
2021 IN BRIEF
Revenue split by
Concrete & Vibration
Revenue split
by plant orders
and aftersales
SKAKO Concrete
(DKK) 165.027
EBIT margin 3.7%
Plant orders
(DKK) 215.943
SKAKO Vibration
203.246
(DKK)
EBIT margin 8.5%
Aftersales
147.763
(DKK)
Order intake Order backlog Revenue EBIT EBIT margin Earnings per share Employees ROIC
(DKKm) (DKKm) (DKKm) (DKKm) (DKK)
394.2 122.4 363.7 20.3 5.6% 4.28 199 10.3%
Up from 304.1 Up from 91.9 Up from 335.9 Up from 15.2 Up from 4.5% Up from 3.52 Up from 195 Up from 8.3%
| Annual report 2021 Page 4
1. HIGHLIGHTS
| Annual report 2021 Page 5
In 2021 markets recovered
after the Covid-19 downturn. SKAKO
has proven to have the ability to
navigate in very dynamic conditions
and was able to strengthen our
performance.
| Annual report 2021 Page 6
Both business units are increasing service and aftersales to existing customers in all core
markets. The continuing customer demand for spare parts, retrofit and aftersales service
forms a stable foundation for the businesses. This part of the business is less volatile to the
changing market conditions, compared to plant sales.
With the publication of our Annual Report 2020, we announced the 2024 ambitions for both
business units and the SKAKO Group. The medium-term financial ambitions comprise of an
organic annual revenue growth of 8% from 2020 to 2024 and an EBIT margin of 7-9% in 2024.
This corresponds to a revenue of approximately DKK 460m with an EBIT result of DKK 32 –
42m in in 2024. The strong performance in 2021 and the expectations for 2022 make us
confident that we will fulfil these ambitions.
We are guiding for an EBIT of DKK 22-27m for 2022 with a slight back-end profile. This is
based on the delivery pattern we see for current orders.
All businesses are people businesses. Therefore, we would like to thank all SKAKO
employees who did a great job getting us through 2021 in good shape, despite all the
difficulties the pandemic gave us.
We would also like to thank our valuable customers and partners for choosing SKAKO.
1.1 Letter to our shareholders
Getting the job done in constantly changing business conditions !
2021 was a satisfactory year for SKAKO. We were impacted by Covid-19 going into the year
and this was anticipated. However, the continuing development of the pandemic, the
resulting supply chain shortages and the freight price increases were unpleasant surprises.
We need to be prepared for a more turbulent business climate in future.
Despite the external challenges, we managed to execute the plan we had prepared for the
year. Going into 2021 with a lower-than-normal order book, we knew that we had to
perform a strong order intake during the year and execute a solid production in the second
half of the year. With an EBIT in 2021 of DKK 20.3m (5.6%), we landed the result in the
middle of our guidance for the year.
Because of the cost efficiency measures, strong order intake in H2 and increasing gross
margins, it was possible to maintain the guidance of an EBIT of DKK 18 – 23m announced on
19 March 2021 and furthermore narrow this to an EBIT of DKK 19 – 22m with the
announcement of third-quarter results on 29 October 2021.
The year started with a weak order intake in Q1 and Q2, particularly in plant sales. However,
after the summer season, the markets for both divisions caught up with strong order intake,
which generated a high level of activity for rest of the year.
In SKAKO Vibration, we have seen a high level of activity in the European markets and good
recovery of our business in North Africa after the summer in 2021, whereas the market in
North America is still at a low level. The recently acquired Spanish recycling company Dartek
in 2019 has been performing very well since the middle of 2021 where the southern
European markets started waking up after the Covid-19 pandemic. Dartek is growing both
topline and EBIT to the benefit of SKAKO Group. We are, in general, experiencing an
increasing demand for our products from the recycling industry.
SKAKO Concrete is going through a process of focusing on profitability while investing in
future revenue growth at the same time. A tough prioritization of projects which are well
suited for the SKAKO Concrete products, and a focused delivery has shown strong results in
recent years.
The Green Plant Vision was launched by SKAKO Concrete in 2021, based on optimization
of all parts of concrete production to reduce the environmental footprint. Customers are
showing strong interest, and this will be an area of focus in the years to come.
1.1 LETTER TO OUR SHAREHOLDERS
Jens Wittrup Willumsen
Chairman
Steffen Kremmer
Director, SKAKO Concrete
Lionel Girieud
Director, SKAKO Vibration
Jens Ulrik Damgaard
Group CFO
| Annual report 2021 Page 7
Our purpose
We aim to make customers’ production
flow efficient, reliable and sustainable
Our values
Our brand promises
We are defining the industry
as our knowledge and competencies are inherited from more than 60 years of
experience and dedicated to your needs
We are reliable
as we are known for setting the standards of quality and accuracy within our
industry
We are accessible
as we are well represented around the world and always ready to help
We develop sustainable, technology-based
and visionary solutions
We meet customers with a future-oriented mindset and engage our technical
know-how, digitization and innovative capacity in companies’ individual needs
We provide profitable business
We generate continuous and visible value for our customers and our investors
We are big enough to cope - and small
enough to care
We match customers' needs and deliver scalable solutions
We commit ourselves in close partnerships
We put our customers’ needs first and bring our service, customer-adapted
solutions and engineering expertise.
| Annual report 2021 Page 8
SKAKO Concrete: Increased market focus in the DACH region and
Denmark, the Faroe Islands and Iceland. Sales force strengthened
through recruitments of new Key Account Manager and key
persons in the areas as part of the strategy of being 100%
present in all primary markets.
JUN 2021
-
SEP 2021
1.2 KEY EVENTS 2021
Monthly order intake of SKAKO Dartek is booming and
2/3 of the annual budget has been reached in one single
month. 85% of the orders are from the recycling segment.
JUL
Focus on optimization and development of products. 2021 was
the starting point for a thorough review of SKAKO Concrete's
core products and overall R&D with a view to process
optimization, up-to-date quality products and increased
performance.
H2
Implementation of a new focused sales strategy and
systematic follow-up on goals and results has been fully
implemented over the second half of 2021. Specific
training programme has been implemented for
everyone in plant sales and aftersales, which is
reflected in a positively developing pipeline towards the
end of the year.
H2
1.2 Key events 2021
| Annual report 2021 Page 9
SKAKO increases its sustainability ambitions and initiates
several new actions towards net-zero emissions and
"green production“ solutions. New “Green Plant Vision”
and recycling strategy set the agenda for SKAKO Concrete
as preferred environmentally friendly partner.
Q3
To improve onboarding of new talents, Vibration expands
with new hybrid premises in Odense.
Office facilities - 80 m2 new interior for sales, marketing
and engineering.
The facilities include modern conference rooms,
auditorium, canteen, IT and catering.
1.2 Key events 2021
Despite Covid19, Pollutec exhibition in Lyon (France) is
a success with more than 46000 visitors interested in
sustainable solutions.
12-14
SEP
1
DEC
Creabeton Matériaux project
Includes delivery of a complete high silo system with 2 pcs. AM 1500
mixers and 2 pcs. Conflex concrete transport system and a
SKAKOMAT control. The plant is being built as a turnkey contract
and includes complete installation, including electrical, water and air
installation. Phase 1 is the construction of the high-silo facility from
January 2023. Phase 2 is the concrete transport facility, which will
be established during the summer holidays of 2023.
DEC
Key events 2021 CONTINUED
| Annual report 2021 Page 10
1.3 Financial key figures
1.3 FINANCIAL KEY FIGURES
Key figures and financial ratios – DKK
DKK Thousands 2021 2020 2019 2018 2017
INCOME STATEMENT
Revenue 363,706 335,920 354,192 339,273 350,375
Gross profit 92,408 77,865 86,092 79,603 83,800
Operating profit (EBIT) 20,323 15,171 18,005 15,072 20,237
Special items - - - 1,331 (24,131)
Operating profit (EBIT) after special items 20,323 15,171 18,005 16,403 (3,894)
Net financial items (4,906) (3,084) (2,590) (3,446) (2,818)
Profit before tax 15,417 12,087 15,413 12,958 (6,712)
Profit for the year 13,189 10,859 14,246 12,698 (6,160)
BALANCE SHEET
Non-current assets 84,216 84,265 85,947 40,787 38,911
Current assets 254,804 237,793 236,383 219,320 200,152
Assets held for sale - - - - 22,350
Assets 339,020 322,058 322,330 260,107 261,414
Equity 132,237 127,252 124,417 109,066 95,701
Non-current liabilities 29,122 38,455 32,851 4,099 3,483
Current liabilities 177,661 156,351 165,062 146,943 152,894
Liabilities related to assets held for sale - - - - 9,336
Net debt 26,987 40,187 32,370 5,522 25,956
Net working capital 105,703 111,295 93,427 90,454 99,242
OTHER KEY FIGURES
Investment in intangible assets 3,962 7,236 2,703 1,417 3,007
Investment in tangible assets 3,504 5,860 9,415 2,117 4,481
Cash flow from operating activities (CFFO) 30,276 4,806
24,451 8,907 (9,060)
Free cash flow 22,810 (8,293) (20,855) 29,564 (16,547)
Average number of employees 199 195 191 197 182
| Annual report 2021 Page 11
1.3 Financial key figures
Figures before 2019 do not include accounting according to the updated IFRS 16.
For calculation of financial ratios please see note 24. Net working capital is calculated as Inventory, Trade receivables and Contract assets less Contract liabilities and Trade
payables. Backlog represents revenue from signed contracts or orders executed but not yet completed or performed in full.
Key figures and financial ratios – DKK CONTINUED
DKK Thousands 2021 2020 2019 2018 2017
FINANCIAL RATIOS
Gross profit margin 25.4% 23.2% 24.3% 23.5% 23.9%
Profit margin (EBIT margin) 5.6% 4.5% 5.1% 4.4% 5.8%
Liquidity ratio 143.4% 152.1% 141.3% 149.3% 131.8%
Equity ratio 39.0% 39.5% 38.6% 41.9% 36.6%
Return on equity 10.2% 8.6% 12.2% 12.4% (6.4%)
ROIC 10,30% 8,30% 9,10% 11,10% (5,10%)
Financial leverage 20.4% 31.6% 26.1% 5.1% 27.1%
Net debt to EBITDA* 1.0 1.8 1.4 0.3 1.0
NWC/Revenue 29.1% 33.1% 26.4% 26.7% 28.3%
Earnings per share (EPS) 4.28 3.52 4.62 4.12 (2.00)
Equity value per share 42.9 41.3 40.1 35.4 30.8
Share price 55.2 49.8 45.9 49.2 91.0
Price-book ratio 1.3 1.2 1.1 1.4 3.0
Market cap 171,474 154,700 142,584 151,725 282,683
Order backlog 122,382 91,877 123,654 106,821 72,775
| Annual report 2021 Page 12
1.3 Financial key figures
Key figures and financial ratios – EUR*
EUR Thousands 2021 2020 2019 2018 2017
INCOME STATEMENT
Revenue 48,904 45,064 47,415 45,520 47,096
Gross profit 12,425 10,446 11,525 10,680 11,246
Operating profit (EBIT) 2,733 2,035 2,410 2,022 2,720
Special items - - - 179 (3,244)
Operating profit (EBIT) after special items 2,733 2,035 2,410 2,201 (523)
Net financial items (660) (414) (347) (462) (379)
Profit before tax 2,073 1,621 2,063 1,739 (902)
Profit for the year 1,773 1,457 1,907 1,704 (828)
BALANCE SHEET
Non-current assets 11,325 11,327 11,506 5,462 5,227
Current assets 34,264 31,964 31,644 29,371 26,885
Assets held for sale - - - - 3,004
Assets 45,589 43,291 43,150 34,832 35,113
Equity 17,782 17,105 16,655 14,606 12,855
Non-current liabilities 3,916 5,169 4,099 549 599
Current liabilities 23,890 21,017 22,395 19,678 20,405
Liabilities related to assets held for sale - - - - 1,255
Net debt 3,629 5,402 4,333 740 3,486
Net working capital 14,214 14,960 12,373 12,113 13,330
OTHER KEY FIGURES
Investment in intangible assets 533 973 362 190 404
Investment in tangible assets 471 788 1,260 284 602
Cash flow from operating activities (CFFO) 4,071 644
3,273 1,193 (1,217)
Free cash flow 3,067 (1,113) (2,792) 3,959 (2,223)
Average number of employees 199 195 191 197 182
| Annual report 2021 Page 13
1.3 Financial key figures
Figures before 2019 do not include accounting according to the updated IFRS 16.
Net working capital is calculated as Inventory, Trade receivables and Contract assets less Contract liabilities and Trade payables. Backlog represents revenue from signed
contracts or orders executed but not yet completed or performed in full.
*On the translation of key figures and financial ratios from Danish kroner to euro, Danmarks Nationalbank’s rate of exchange at 31 December 2021 of 743.65 has been
used for balance sheet items, and the average rate of exchange of 743.71 has been used for income statement and cash flow items.
Key figures and financial ratios – EUR* CONTINUED
EUR Thousands 2021 2020 2019 2018 2017
FINANCIAL RATIOS
Gross profit margin 25.4% 23.2% 24.3% 23.5% 23.9%
Profit margin (EBIT margin) 5.6% 4.5% 5.1% 4.4% 5.8%
Liquidity ratio 143.4% 152.1% 141.3% 149.3% 131.8%
Equity ratio 39.0% 39.5% 38.6% 41.9% 36.6%
Return on equity 10.2% 8.6% 12.2% 12.4% (6.4%)
ROIC 10,30% 8,30% 9,10% 11,10% (5,10%)
Financial leverage 20.4% 31.6% 26.1% 5.1% 27.1%
Net debt to EBITDA* 1.0 1.8 1.4 0.3 1.0
NWC/Revenue 29.1% 33.1% 26.4% 26.7% 28.3%
Earnings per share (EPS) 0.58 0.47 0.62 0.55 (0.27)
Equity value per share 5.77 5.55 5.36 4.74 4.13
Share price 7.42 6.69 6.14 6.59 12.19
Price-book ratio 1.3 1.2 1.1 1.4 3.0
Market cap 23,058 20,795 19,088 20,319 37,970
Order backlog 16,457 12,350 16,553 14,308 9,775
| Annual report 2021 Page 14
1.4 Financial review
1.4 FINANCIAL REVIEW
DKK Thousands 2021 2020 Change
Plant order revenue 215,943 209,564 3.0%
Aftersales revenue 147,763 126,356 16.9%
Total revenue 363,706 335,920 8.3%
Production costs (271,298) (258,055) 5.1%
Gross profit 92,408 77,865 18.7%
Gross profit margin 25.4% 23.2% 2.2pp
Distribution costs (40,745) (35,039) 16.3%
Administrative expenses (31,340) (27,655) 13.3%
Operating profit (EBIT) 20,323 15,171 34.0%
Profit margin (EBIT margin) 5.6% 4.5% 1.1pp
Profit for the period 13,189 10,859 14.9%
Order backlog beginning of period 91,877 123,654 (25.7%)
Order intake 394,211 304,143 29.6%
Revenue 363,706 335,920 8.3%
Order backlog end of period 122,382 91,877 33.2%
Overall financial performance of SKAKO improved significantly in 2021 and resulted
in an operating profit (EBIT) of DKK 20.3m, compared to DKK 15.2m in 2020. This is
in line with our latest guidance of DKK19.0 – 22.0m
Revenue in 2021 increased by 8.3% compared to 2020 with plant sales and
aftersales increasing by 3.0% and 16.9%, respectively. This confirms the recovery of
the markets in which we operate after Covid-19. Especially the profitable aftersales
market shows great strength underlining our aim to build strong partnerships with
our customers.
Order intake in 2021 increased by 29.6% compared to 2020 impacted by a large
order of DKK 30 m in SKAKO Concrete, which will have revenue impact in both 2022
and 2023. Following the strong order intake, the order backlog increased by 33.2%
compared to the year before providing a strong outset for 2022.
Gross profit margin improved by 2.2pp to 25.4% in 2022 driven by a higher share of
aftersales revenue with high margin as well as improved margins in plant sales,
following the implementation of the efficiency program in SKAKO Concrete.
Capacity cost increased by 14,9% from 2020 to 2021. The main driver for the
increase is growth in resources, in order to be able to execute the increased level of
activities.
Operating profit was DKK 20.3 m in 2021 compared to DKK 15.2 in 2020 and was as
predicted in the initial guidance back-end loaded with a very strong operating profit
of DKK 8.3 in Q4. The strong operating profit in the last quarter was a consequence
of a very strong order intake in H2 as well as the ability to execute both plant orders
and aftersales orders in a shorter time than previously.
Operating profit margin increased to 5.6 % compared to 4.5% in 2020 as a result of
the increase in gross profit margin.
For a financial review for each division, please see section 2.2 for SKAKO Concrete
and section 3.2 for SKAKO Vibration.
| Annual report 2021 Page 15
1.4 Financial review
Cash flow developments
In 2021, SKAKO generated a cash flow from operating activities (CFFO) of DKK
30.3m compared to DKK 4.8m in 2020. The cash flow in Q4 2021 was high due to
a high amount of prepayments from customers. Generally, our customers are
fulfilling their payment obligations, and the Group has a strong liquidity.
Equity
The Group’s equity was DKK 132.2m on 31 December 2021 (DKK 127.3m on 31
December 2020) matching an equity ratio of 39.0% (39.5% on 31 December 2020).
The increase in equity is mainly due to profit for the year of DKK 13.2m. Due to a
dividend of 9.3m paid in May 2021, the equity does not increase with the full
earnings for the year.
ROIC
In 2021, return on invested capital amounted to 10.3% compared to 8.3% in
2020. The increase in return on invested capital is due to the higher result in 2021.
Balance sheet
As of 31 December 2021, the Group’s assets totalled DKK 339.0m (year end 2020:
DKK 322.1m). The increase in assets is primarily due an increase in trade
receivables.
Non-current assets decreased by DKK 0.1m and amounted to DKK 84.2m (year end
2020: DKK 84.3), while current assets increased by DKK 17.0m to DKK 254.8m (year
end 2020: DKK 237.8m).
Net debt decreased by DKK 13.2m and totalled DKK 27.0m on 31 December 2020
(year end 2020: DKK 40.2m). The decrease in net debt is due to strong cash
performance from operating activities.
Current liabilities amounted to DKK 177.7m (year end 2020: DKK 156.4m). The
increase in current liabilities is primarily due to an increase in contract liabilities
with reference to received prepayments from customers on construction contracts.
Dividends
Based on the results in 2021 and capital structure of SKAKO A/S as of 31 December
2021, the Board of Directors recommends a dividend distribution of DKK 4per share,
corresponding to 93.5% (adjusted for earn-out relating to Dartek, the dividend
amounts to 81%) of profit for the year and a total dividend distribution of DKK
12,3m. With a share price of DKK 55.2 as of 31 December 2021, this corresponds to
a dividend yield of 7.2%.
Ex-dividend date: 20 April 2022
Record date: 25 April 2022
Payment date: 26 April 2022
Interim dividends
No interim dividends have been paid.
The Parent company
The result for the period in the Parent company amounts to a loss of DKK 2.5m. The
costs primarily come from remuneration for the Board of Directors and costs for
warrants.
Events after the balance sheet date
There have been no events that materially affect the assessment of this Annual
Report 2021 after the balance sheet date and up to today.
| Annual report 2021 Page 16
1.4 Financial review
*Quarterly figures are unaudited
DKK Thousands Q4 2021* Q4 2020* Change
Plant order revenue 60.565 52.741 14.8%
Aftersales revenue 45.713 30.503 49.9%
Total revenue 106,278 83,244 27.7%
Production costs (76.600) (67.924) 12.8%
Gross profit 29,678 15,321 93.7%
Gross profit margin 27.9% 18.4% 7.7%
Distribution costs (12,959) (7,169) 80.8%
Administrative expenses (8,384) (6,964) 20.4%
Operating profit (EBIT) 8,335 1,188 601,6%
Profit margin (EBIT margin) 7.8% 1.4% 6.4pp
Profit for the period 4,775 (606) 888.6%
Order backlog beginning of period 105,225 94,900 10.9%
Order intake 123,435 80,221 53.9%
Revenue 106,278 83,244 27.7%
Order backlog end of period 122,382 91,877 33.2%
Consolidated Q4 – 2021 result
Thanks to the strong dedication of our
employees – SKAKO has been able to
keep momentum – even when many
had to work from home during the
pandemic.
| Annual report 2021 Page 18
SKAKO Group
With our annual report for 2020, we introduced financial ambitions for the SKAKO
Group, which comprise our medium-term financial ambitions until and including
2024.
The medium-term financial ambitions for the SKAKO Group comprise a revenue
growth (CAGR) of 8% from 2020 to 2024 and an EBIT margin of 7-9% in 2024. This
corresponds to a revenue of approximately DKK 460m with an EBIT result of
between DKK 32m and DKK 42m in 2024.
We believe that the recent years’ strategic development in the Group has laid the
foundation for a favorable development in results in the coming years. The
relatively high ambitions for revenue growth are partly aided by the fact that
revenue in 2020 was significantly impacted by the Covid-19 pandemic, especially in
SKAKO Vibration. We do not expect the development to be realized in a straight
line as some years will show a steeper progress than others, and development will
be different in the two divisions.
1.5 FINANCIAL AMBITIONS
Financial ambitions SKAKO Group
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
0
100
200
300
400
500
2020 2021 A-2024
EBIT%
mDKK
Revenue EBIT margin
1.5 Financial ambitions
| Annual report 2021 Page 19
SKAKO Concrete
In 2021 SKAKO Concrete continued the journey towards a level of sustainable
profitability. In 2021 we have seen the EBIT margin in SKAKO Concrete increase
from a level of 0%-1% in previous years, over 3.3% in 2020 and now to 3.9% in
2021. We will continue the focus going forward and strive to further improve the
EBIT margin towards a level of 6%-8% while also driving a revenue growth of 6%
(CAGR) until 2024. This corresponds to an EBIT result of DKK 13m to DKK 17m in
2024. As noted under our guidance for 2022, we expect to see a revenue growth in
SKAKO Concrete in 2022 compared to 2021, due to the increasing order backlog
and a high level of market activity.
SKAKO Vibration
Historically, the EBIT margin in SKAKO Vibration has been realized at a level of 8%-
10% while revenue has been realized at a lower level than our financial ambitions.
Therefore, the focus in SKAKO Vibration will be on maintaining the historic EBIT
margins while driving an expansion in revenue at a CAGR of 10%. This corresponds
to an EBIT result of DKK 20m to DKK 25m in 2024. In 2021, revenue in SKAKO
Vibration was positively impacted by the growth in recycling and a general upturn of
the market in which SKAKO Vibration is operating. In 2022 we expect to see a continued
growth in revenue as well as improved profitability. The growth in revenue is primarily
expected to be driven by increased orders in the recycling segment. We have seen
in 2021 that Increased revenue is the vehicle to get EBIT margin to return to a
normal level compared to 2020, as the contribution margin will increase compared
to the fixed cost basis.
Financial ambitions SKAKO Concrete
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
0,0
50,0
100,0
150,0
200,0
250,0
2020 2021 A-2024
EBIT%
mDKK
Revenue EBIT margin
Financial ambitions SKAKO Vibration
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0
50
100
150
200
250
300
2020 2021 A-2024
EBIT%
mDKK
Revenue EBIT margin
1.5 Financial ambitions
| Annual report 2021 Page 20
1.6 Guidance 2021
1.6 GUIDANCE 2022
2021 showed growth on all parameters in SKAKO. The increase in new orders has
increased the order book at the end of 2021 to DKK 122.4m against DKK 91.9m by
the end of 2020 (increase of 33,2%). Revenue has increased by 8.3%, and the
profitability in both plant sales and aftersales has increased. The operational cash
flow has also increased compared to 2020.
With this in mind we are seeing a strong outset for the continued performance of
SKAKO.
The global situation on availability on particularly electronics could have an impact
on SKAKOs ability to deliver on time. This, however, will be affecting all suppliers in
the market. The same applies for the increasing cost of logistics.
For SKAKO Concrete the increase in building infrastructure will be supporting the
need for capacity in the concrete manufacturing industries and thereby the
demand for new machinery. The pipeline of the potential orders is significantly
stronger than in 2021.
For SKAKO Vibration the increasing demand for recycling solutions will be driving
the market upwards. The increasing global demand for minerals will also continue
to drive the requirement for mining solutions.
Guidance 2022
We are guiding for an operating profit (EBIT) of DKK 22-27m in 2022.
The guidance is based on a continued normalization of the market conditions
during 2022, with no new material adverse events affecting the global economies.
Following the situation in Ukraine and the potential impact on world economies,
this guidance is subject to a higher-than-normal degree of uncertainty.
Business with Russia and Ukraine
SKAKO has an insignificant sales to Russia and Ukraine and there are no direct
suppliers in these countries. There are, however, suppliers to SKAKO who are
sourcing supplies of steel from Ukraine, as well as sub suppliers who might be
impacted by, among other, increasing energy cost.
| Annual report 2021 Page 21
1.7 Why invest in SKAKO
1.7 WHY INVEST IN SKAKO
SKAKO Group
At SKAKO we aim to make our customers’ production flow as hassle-free, reliable,
and sustainable as possible. We use our know-how to define the industry and
develop visionary sustainable and technology-based solutions. Through this, we
provide continued value to our partners and customers and increased value to our
shareholders.
The markets in which SKAKO is operating, are in constant growth. There has for
decades been a growing demand for building materials as well as industrial
machinery. There are currently no signs of long-term reduction of this growth.
SKAKO is a leading supplier in the markets we operate in. Consequently, our
customers expect the high-quality products and high level of sustainability we
deliver. Further, our customers expect to meet highly qualified employees in all
phases of product lifetime.
With this business model, we have established a comprehensive installed fleet of
SKAKO machinery all over the world and we support our customers with support,
spares and retrofit, whenever needed.
The SKAKO business model has proven to be sustainable, even under challenging
business conditions. SKAKO was also impacted by the Covid-19 pandemic, but
succeeded in remaining profitable
With the continued growth in the existing markets and strong potential to expand
the business into new market segments, we are convinced that the potential for
future profitable growth is strong
Capital structure
SKAKO has a capital structure target of net debt to EBITDA of up to 2.5. With a
net debt to EBITDA of 1.0 at the end of 2021, SKAKO has ample capacity to
pursue value creating M&A. As our earnings improve, we will also be able to
return significant value to our shareholders through dividends and share buy-
back programmes.
For our mid-term financial ambition for the SKAKO Group, please see section 1.5.
SKAKO Vibration
SKAKO Vibration strives to be one of the leading suppliers of vibratory
equipment globally.
We are a preferred partner within the automotive industry on targeted markets,,
and we have a strong presence and growth within the minerals segment. With
the acquisition of SKAKO Dartek in November 2019, we have also intensified our
strategic focus on growth in the recycling segment.
SKAKO Concrete
SKAKO Concrete strives to be the trendsetter in the concrete industry when it
comes to sustainability, digitization, and total cost of ownership, and from our
foundation of reliable delivery and high-quality products, we seek to offer our
customers the best solutions in the industry and maximum benefit from our
solutions and services.
| Annual report 2021 Page 22
2. SKAKO
CONCRETE
Order backlog
(DKKm)
68.6
Up from 34.5
Revenue
(DKKm)
165.0
Down from 172.4
EBIT
(DKKm)
6.1
Up from 5.7
EBIT margin
3.7%
Up from 3.3%
Order intake
(DKKm)
199.1
Up from 142.3
| Annual report 2021 Page 23
We want to set the standard in the industry by adding
sustainable solutions.
As your sustainability partner we gladly share
our Green Plant Vision to support your contribution to
a better world.
| Annual report 2021 Page 24
2.1 Partners choose SKAKO to improve their sustainability
2.1 Why partners choose SKAKO to improve their
sustainability
| Annual report 2021 Page 25
SKAKO Concrete has continued various initiatives to improve earnings among
others by focusing on internal handover, accuracy and follow-up which has
strengthened reliability and profitable project delivery. In addition, we have
through 2021 improved and implemented a new customer-focused sales and
marketing system OKR.
During 2021 we have strengthened our digital, sustainable and environmental focus
aimed at our customers and partners. These initiatives have contributed to further
improved performance and earnings for SKAKO Concrete.
Continuous and controlled growth, stability and efficiency improvements are
some of the key factors for SKAKO Concrete to achieve the required results and
increased earnings.
We have initiated focused strategic initiatives and ambitions to further develop
SKAKO Concrete towards 2024.
Towards 2024 we aim to grow revenue with a CAGR of 6% while increasing the
EBIT margin to 6%-8%. With our focused sales and marketing strategy, we expect
to grow revenue from both plant orders and aftersales. While doing so, we will
continue our constant focus on sustainable profitability to reach attractive EBIT
margin levels.
Our masterplan contains five overall strategic tracks with individual task forces:
QUALITY / DELIVERY RELIABILITY / EARNINGS
CULTURE DIGITIZATION SUSTAINABILITY
SUBSCRIPTION
SOLUTIONS
SALES & MARKETING
Vision: We want to be trendsetting in the industry within
sustainability, digitization and solutions focused on total
economy
Strategy track: Culture, digitization, sustainability,
subscription solutions, sales and marketing
Products and solutions: AM Mixer,
ROTOCONIX, SKAKOMAT, CONFLEX, skip hoist
Segments: Plant (precast and ready-mix),
SKAKOMAT, aftersales
Primary markets: Denmark, Sweden, Norway, the UK, the
Netherlands, Germany, Austria, Switzerland, France, the USA
Below the strategic tracks in our overall business model:
Business model & strategy
2.1 Partners choose SKAKO to improve their sustainability
| Annual report 2021 Page 26
Foundation for future sales growth
During 2021, we built the foundation for a revenue expansion in 2022 to 2024 and
are now ready to take the next steps.
Focus is still on our five strategic areas in the commercial department but in
particular areas 2-5 are important in 2022.
Sales organization
The sales force was strengthened significantly in 2021.
We are now directly represented on all primary markets.
The aftersales organization has been strengthened towards more proactive sales.
Aftersales
The proactive approach to the aftermarket is starting to pay off in the second half
of 2021 and we expect the positive trend to continue into 2022.
We will continue to develop the aftersales business with more local presence on
the primary markets.
Plant sales
In 2021 we initiated the second phase of our go-to-market strategy, and our short-
term and long-term pipeline is already benefiting from the implementation of
these strategy tools.
Due to that and due to our strengthened organization, order intake increased
significantly during the second half of 2021, and the pipeline for 2022 looks very
promising.
Time
5. Develop and implement
a Concrete targeted
marketing concept
2020
2021 2022 2023 2024
4. Acceleration of
the SKAKOMAT
business
3. Yearly revenue growth
of plant sales on
primary markets
2. Growth in
revenue from
aftersales
1. Development of
sales organization
2.1 Partners choose SKAKO to improve their sustainability
| Annual report 2021 Page 27
Sustainability
SKAKO Concrete has set up a targeted “Green Plant Vision” to process optimize,
product develop, produce and partner up on sustainable solutions and concepts that
bring us among the front runners within “green concrete” production and
environmentally friendly plants around the world. Our own contribution covers CO
2 –
reduction, re-use of machinery, concrete with less cement and minimization of water.
However - our main contribution is technology that enables customers to reach
their green targets.
Digitization
2022 will be a continuation of our work with clients to develop the SKAKO digital
platform they use to operate their SKAKO plants.
The world and our client’s needs are moving towards a higher degree of mobility
and data and knowledge-based business. SKAKO intend to support that in full.
Cloud based systems, data warehouse, big data and mobility are key words in
our way to support our clients with a more digital platform.
Marketing
Customer dialogue will be intensified through customer surveys and partnership
communication as well as increased focus on demonstrating SKAKO as an ideal
sustainability partner.
In order to focus on a more targeted and direct communication with our customers,
SKAKO Concrete has decided NOT to participate as exhibitor at the BAUMA
exhibition in Munich in year 2022. This is also a consequence of the actual
uncertainty about possible Covid-19 cancellations from fair operators.
We use the opportunity to find alternatives within digital presentation and online
presence and thereby act in an agile and resolute way in relation to the changeable
and actual market situation.
Apart from a uniform and recognizable identity the aim throughout 2022 is to
increase brand awareness through intensified PR and media processing.
Foundation for
future sales growth
2.1 Partners choose SKAKO to improve their sustainability
| Annual report 2021 Page 28
2.2 Financial performance
DKK million 2021 2020 Change
Plant order revenue 70.2 90.0 (22.0%)
Aftersales revenue 94.8 82.4 15.0%
Total revenue 165.0 172.4 (4.3%)
Gross profit 35.3 30.9 14.2%
Gross profit margin 21.4% 17.9% 3.5pp
Operating profit (EBIT) 6.1 5.7 7.0%
EBIT margin 3.7% 3.3% 0.4pp
Order book, beginning 34.5 64.6 (46.6%)
Order intake 199.1 142.3 39.9%
Order book, ending 68.6 34.5 98.8%
2.2 FINANCIAL PERFORMANCE
Revenue and EBIT margin
2020 2021
Financial review SKAKO Concrete
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
0,0
50,0
100,0
150,0
200,0
2018 2019 2020 2021
SKAKO Concrete development
Revenue EBIT%
| Annual report 2021 Page 29
2.2 Financial performance
Development of primary markets
In 2020 we started developing and implementing our new five-track sales strategy
in SKAKO Concrete. This strategy provides plans and tools to work our way
through the coming three years in a more proactive way, and expectations for
2022 are therefore positive.
Our increased focus on specific types of customers and plant orders combined with
the recently implemented Objective Key Results (OKR) will result in better market
position. As a consequence, we expect to see growth in revenue from both plant sales
and aftersales.
Overall, our primary markets are doing well on both plant sales and aftersales, and
in general we have positive feedback from all markets.
Financial performance in 2021
The overall financial performance of SKAKO Concrete showed a very positive
development in 2021, driven by the strategic initiatives on enhancing customer
support and improving project execution.
Revenue decreased by 4.3% compared to 2020. Revenue from plant orders
decreased by 22.0%, while revenue from aftersales increased by 15.0%. The
decrease in plant order revenue was driven by the very low order backlog entering
2021, due to the pandemic. The increase in aftersales revenue is the result of the
strategic initiative to enhance the customer support, as well as recovering from the
pandemic.
Gross profit and gross profit margin were realized with DKK 35.3m and 21.4%
compared to DKK 30.9m and 17.9% in 2020. The increase in gross profit margins
has been realized because of a favorable mix between revenue from plant orders
and aftersales and improved execution of plant orders.
EBIT and EBIT margin were realized with DKK 6.1m and 3.7% compared to DKK 5.7m
and 3.3% in 2020 corresponding to a 7.0% increase in EBIT and a 0.4pp increase in
EBIT margin.
Order intake amounted to DKK 199.1 compared to DKK 142.3m in 2020. In particular
the strong order intake in H2 has been driving the improvement compared to
2020.
We still have a strong pipeline and expect order intake to improve through 2022.
The order backlog at the end of 2021 amounts to DKK 68.6m (DKK 34.5m in 2020)
which is 99% above the order backlog at the end of 2020.
Product development
To meet the expectations and needs from our customers and the market mainly
within recycling, digitization, and technology, SKAKO Concrete has planned to
invest even more in product development. We have focused further development
on our key products AM mixers, the SKAKOMAT control system and our CONFLEX
distribution system.
Sustainability and Green Plant
In general, SKAKO Concrete seeks to reduce its impact on the environment
internally and externally. An internal production optimization project has been
initiated and SKAKO Concrete has increased focus on reducing energy consumption,
recycling of crushed concrete, reduction of cement, less use of water and reuse of
aggregates ,in the production of concrete. In addition, all employees complete an
annual internal code of conduct (e-learning) to have a common understanding of
SKAKO’s policies and guidelines.
| Annual report 2021 Page 30
Order for Bartram Bau-System GmbH, Germany
The customer is an long standing SKAKO customer. In 2019, they decided to make a new production hall for production of beams and
frame elements. During this process, the next generation from Bartram has been the key person for this development of the factory layout
to meet the future concrete requirements.
The existing plant is from 1989. The new plant is a complete CONFLEX track and a new SKAKOMAT. In total more than 200 metres track
with switch tracks and two tracks into hall 4 and hall 5. This is a major upgrade of the existing plant. It has been an ongoing development of
the layout and new wishes from the customer, but in good cooperation with SKAKO to meet their requirements. Today, the plant is up
running with full production, and the customer is very happy with the solutions and is now talking about the next step of integrating the
other production hall with the CONFLEX track and more new equipment in 2022.
20 December 2019
Signing of
contract
July 2020
Installation in hall
5, CONFLEX track
19 October 2020
New order for
hall 4
February 2021
Installation in hall 4,
CONFLEX track and
switch track
August 2021
Start-up at cut
between old and
new SKAKOMAT
27 September 2021
Handover to
customer.
Main contract
November 2021
Final handover
Case study
April 2020
Change of layout
according to signed
contract
Summer 2020
Bartram GmbH
renovated hall 4
27 August 2020
Change order new
SKAKOMAT
April 2021
New pillar
installation from hall
4 to mixer station
7 June 2021
Change order new
bucket for hall 4
9-12 October 2021
Installation of new
bucket in hall 4
| Annual report 2021 Page 31
3. SKAKO
VIBRATION
Order backlog
(DKKm)
54.3
Down from 58.6
Revenue
(DKKm)
203.2
Up from 167.6
EBIT
(DKKm)
17.3
Up from 11.8
EBIT margin
8.5%
Up from 7.0%
Order intake
(DKKm)
198.9
Up from 166.2
| Annual report 2021 Page 32
The business of
our customers is
strengthened by the
dedication of our
SKAKO Vibration team in
three centers of
excellence.
| Annual report 2021 Page 33
3.1 Strategy & business model
From 2021 through 2024 SKAKO Vibration aims to grow revenue with a CAGR of 8-
9% while maintaining an EBIT margin of 8%-10%. As SKAKO Vibration’s
revenue was significantly impacted by the Covid-19 pandemic in 2020 and in a part
of 2021, some of the revenue growth is expected to come from a return to normal
market conditions while another part is expected to be realized from strategic
growth in the recycling industry.
To support our growth, we have based our strategy on four development stages:
Medium-term perspective
3.1 STRATEGY & BUSINESS MODEL
At SKAKO Vibration we develop, design and sell vibratory equipment for
industrial use worldwide and our quality products set in motion, separate and wash
bulk material.
Our engineering, assembly and test facilities are located in Faaborg in
Denmark, Strasbourg in France and San Sebastian in Spain, and our products are
based on application know-how and own developed technology.
SKAKO Vibration has a flexible production where parts are sourced through
both internal and external suppliers.
Our main markets are EU and North Africa, and we are focusing on our expansion in
the recycling segment with our complete range of products dedicated to this
industrial sector, in particular since we made the acquisition of SKAKO Dartek at the
end of 2019.
SKAKO Vibration strives to be one of the leading suppliers of vibratory equipment and
preferred partners within the automotive industry on targeted markets – especially
through European, Asian and US players. We are already strong within the mineral
segment with a strong presence in the phosphate mining sector in North Africa.
The objectives shall be obtained by having an attractive product range of high
quality, and a dynamic organization with a high level of know-how about design
and application.
Increase of
revenue and profit
New product development
Strengthening of our positions in
hardware and mining segments
Sales development in recycling segment
1
2
3
4
Objectives:
Revenue = CAGR 8-9%
EBIT margin = 8-10%
In accordance with current
general trends and recycling
segment requirements
Continue our development
in North Africa & the US and
take opportunities in China
& India
Market SKAKO
Dartek products through
our sales network
| Annual report 2021 Page 34
SKAKO Dartek
Upon acquisition in November 2019, Dartek Proyectos y Maquinara S.L.L was
integrated into the division and became SKAKO Dartek. As expected, SKAKO
Dartek’s product range has been a good supplement to SKAKO Vibration’s product
range and allowed the division to become a leading player in the recycling segment.
In the meantime, SKAKO Vibration has also considerably reinforced its market
presence in Spain and Portugal.
Resilience of the recycling segment
faced with the Covid-19 pandemic
The recycling segment has shown more resilience than the minerals or
hardware segments since the beginning of the Covid-19 pandemic and low activity
in the North-African mining sector which significantly impacted SKAKO Vibration in
2021. This confirms our strong belief that the recycling segment is an up-and-
coming and forward-looking business.
In the meantime, the complexity of the recycling industry has required a
rational sub-segmentation of the segment to be able to offer specific solutions to
targeted customers. In addition to SKAKO Dartek’s strong know-how in the field, the
other expert centers of the division have started adapting their products to best
meet the needs of each sub-segment. For example, the large project for Tapojärvi,
which aims to process slags from the Italian iron and steel industry, includes products
coming from all the three expert centers in SKAKO Vibration. The final part of this
project was delivered in September 2021.
Industry 4.0 and new technology
Despite the development of our on-line monitoring system for our largest
machines has been delayed due to the Covid-19 pandemic, an industrial prototype
has been tested for more than one year at a customer’s site under severe industrial
conditions and the final product is expected to be launched in 2022. This product,
which will be used by our customers with “smart production”, will also serve to
refine our internal digital models of the machines that we are developing. In the
same trend of optimizing new technology adoption within our organization, we
have decided to update and expand our design capacities. We wish to offer our
customers cutting edge products but also to provide our own organization with the
benefit of the major technological developments.
3.1 Strategy & business model
Growth from three main customer segments
The foundation for the further development of SKAKO Vibration will be our three
expert centers, each with their own specific area of core competence. Business
relating to the hardware, recycling and mineral segments will be conducted from
our offices in Faaborg/Denmark, San Sebastian/Spain, and Strasbourg/France.
| Annual report 2021 Page 35
3.2 Financial performance
3.2 FINANCIAL PERFORMANCE
DKK million
2021 2020 Change
Plant
revenue 147.0 120.8 21.7%
Aftersales
revenue 56.2 46.8 20.1%
Total
revenue 203.2 167.6 21.2%
Gross
profit 57.0 47.0 21.3%
Gross
profit margin 28.1% 28.0% 0.1pp
Operating
profit (EBIT) 17.3 11.8 46.6%
EBIT
margin 8.5% 7.0% 1.5pp
Order
book, beginning 58.6 60.0 (2.3%)
Order
intake 198.9 166.2 19.7%
Order
book, ending 54.3 58.6 (7.3%)
Revenue and EBIT margin
2020 2021
Financial review SKAKO Vibration
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0,0
50,0
100,0
150,0
200,0
250,0
2018 2019 2020 2021
SKAKO Vibration development
Revenue EBIT%
| Annual report 2021 Page 36
36%
40%
22%
2%
3.2 Financial performance
Financial performance in 2021
SKAKO Vibration was showing a strong performance in 2021. This is mainly related to the recovery of the markets after the Covid-19 pandemic.
Revenue increased by 21.2% across all three segments, with especially strong growth in the hardware and recycling segments. Revenue from plant orders increased by
21.7% while revenue from aftersales increased by 20.1%. The increase in plant orders revenue was driven by the strong order intake in Q2 and Q3 2021, whereas the
increase in aftersales is caused by a pick-up in industrial activity after the peak of the Covid crisis.
Compared to 2020, we realized a large increase in revenue from the recycling segment. This is mainly driven by the successful acquisition of SKAKO Dartek in November
2019. Furthermore, we experienced an increased demand in the hardware segment which was higher than our expectations, in particular from the automotive industry.
Gross profit and gross profit margin were realized with DKK 57.0m and 28.1% compared to DKK 47.0m and 28% in 2020. The increase in gross profit is a result of higher
revenue, as gross profit margins are on a comparable level.
EBIT and EBIT margin were realized at DKK17.3m and 8.5% compared to DKK 11.8m and 7.0% in 2020. The higher EBIT and EBIT margin are due to higher revenue, however
also with higher capacity cost.
Order intake amounted to DKK 198.9 compared to DKK 166.2m in 2020. In 2021. We still have a strong pipeline and expect order intake to improve through 2022. The
order backlog at the end of 2021 amounts to DKK 54.3m (DKK 58.6m in 2020) which is 7.3% below the order backlog at the end of 2020.
31%
47%
20%
2%
Recycling Minerals Hardware Others
Revenue
2020
DKK 167.3m
Revenue
2021
DKK 203.2m
| Annual report 2021 Page 37
Recycling of high value-added metals: the “Terni Project”
In December 2019, Tapojärvi signed a contract with SKAKO Vibration of EUR 3.6m (DKK 26.8m) for the complete engineering of their slag
recycling plant project in Terni (Italy) including the supply of more than 50 conveyors, screens and supporting frames.
Thanks to SKAKO Vibration’s competences in project management as well as material handling and sorting techniques spread over its
three expert centers in Denmark, Spain and France, the plant started running in September 2021 - despite the Covid-19 crisis - with a “dry
process” of 50-80 tons of slag per hour while the “wet process” is expected to be started within the next months.
This plant is the first 100% metal slag recycling plant in the world. This means that all slag material entering the recycling plant is being
reused in chemical or concrete products and in the metal industry for the most valuable components. Indeed, there are lots of expensive
and exclusive metal material melted down and left inside the slag that can be recovered in the form of metal pieces sized between 1 kg
and 1 mg.
21 October 2019
Signed Letter of Intent
10 December 2019
Signed contract
6 October 2020
Delivery of the first
equipment
1 September 2021
Start-up of the plant
(“dry process”)
30 September 2021
Delivery of the last equipment (for
the “wet process” of the plant)
11 November 2021
Receipt of final
payment
First 100% metal slag recycling plant in the world
| Annual report 2021 Page 38
4. Corporate
governance
| Annual report 2021 Page 39
Conducting business in a
reasonable manner – in all
countries and operations.
| Annual report 2021 Page 40
4.1 Company announcements 2020
4.1 COMPANY ANNOUNCEMENTS 2021
Main company announcements in 2021
8 January 01 – Notice about extraordinary general assembly
19 March 02 – Proposed dividend
19 March 03 – Annual report 2020
19 March 04 – Insider trades with SKAKO shares
22 March 05 – Warrants to executive management and
leadership team
24 March 06 - Insider trades with SKAKO shares
24 March 07 – Insider trades with SKAKO shares
24 March 08 – Insider trades with SKAKO shares
6 April 09 – Notice about ordinary general meeting
28 April 10 – Course of general meeting on 28 April 2021
11 May 11 – Changes to executive management
25 May 12 – Interim report for the first quarter 2021
19 July 13 – SKAKO appoints CFO for the SKAKO Group
26 August 14 - Interim report for SKAKO A/S for the first two
quarters of 2021
15 September 15 – Insider trades with SKAKO shares
16 September 16 16 – Insider trades with SKAKO shares
29 October 17 – Interim report for SKAKO A/S for the first three
quarters of 2021
7 December 18 – SKAKO wins DKK 30 million contract with
CREABETON in Switzerland
10 December 19 – Financial calendar 2022
The company announcements are available on the company website:
https://skako.com/about/investor-relations/#company_announcements
| Annual report 2021 Page 41
4.2 Corporate social responsibility
4.2 CORPORATE SOCIAL RESPONSIBILITY
Report on Corporate Social
Responsibility, cf. Section 99a of the
Danish Financial Statements Act
SKAKO strives to operate its business in a responsible manner and wants to
comply with the legislation in all the countries where operations are conducted.
Furthermore, compliance with Human Rights and consideration for the
environment are considerable focus areas for the Group. SKAKO’s work with
corporate social responsibility is based on value creation and risk management.
SKAKO has chosen to focus its work on social responsibility within five areas:
Environment, human rights, working environment, anti-corruption, and equality.
The policies below have been approved by the Board of Directors.
For a description of SKAKOs business model please see sections 2.1 and 3.1.
Result for 2021 compared to goal for 2021
SKAKO realized 17.9% lower consumption of kWh in 2021 compared to the goal of
1,000,000 kWh. This is mainly caused by lock-down period in spring 2021.
Results & goals
Goal for 2022 Result 2021 Goal for 2021r Result 2020 Result 2019 Result 2018
950,000 848,268 1,000,000 865,865 828,828 1,417,902
Policy
SKAKO seeks to reduce its impact on the environment by reducing
energy consumption year on year. The Group is a know-how and engineering
company with production of key components. The production mainly consists of
assembling and testing and does not include energy-demand or polluting
processes. All surface treatment processes are outsourced to sub-suppliers. A part
of SKAKO’s supplier “Code of Conduct” addresses impact on the environment. See
under Human rights for more information about the supplier “Code of Conduct”.
Furthermore, SKAKO actively seeks to reduce its energy consumption by,
for example, installing LED lighting in its facilities. We are also currently exploring
the possibility of installing solar roof panels.
In 2022, we will start a project to outline how SKAKO can become C02 neutral.
Environment
Actions
SKAKO will reduce consumption of kWh year on year in its production sites.
We expect, however, to see a small increase in consumed kWh in 2022 since we
do not expect the same levels of lock downs due to the Covid-19 pandemic in 2022
as in 2021.
KPI
Consumed kWh in production sites.
Risks
Energy consumption is a variable of activity.
| Annual report 2021 Page 42
4.2 Corporate social responsibility
Anti-corruption and bribery
Policy
SKAKO seeks to avoid corruption and bribery by creating a framework that secures
that employees at SKAKO are able to abide to laws and regulations, and that there
will never exist any doubt with regards to a SKAKO employee’s impartiality.
Actions
1. SKAKO enforces a gift policy.
2. SKAKO has introduced an internal whistle blower scheme to give
employees the opportunity to report on corruption, bribery and other matters
while being anonymous.
3. SKAKO has developed an Employee “Code of Conduct” e-learning
that describes the way SKAKO expects all its employees to act in accordance
with laws and regulations. The employee “Code of Conduct” also describes
usage of the whistle blower scheme. Every year all SKAKO employees
must conduct the Employee “Code of Conduct” e-learning session.
4. Maintain whistle blower scheme to also be available for external parties.
KPIs
2. No reported violations of anti-corruption laws and regulations, and SKAKO
Employee Code of Conduct.
3. All employees to pass SKAKO’s Employee “Code of Conduct” e-learning.
Results for 2021 compared to goals for 2021
1. SKAKO A/S has maintained its gift policy throughout 2021.
2. SKAKO A/S has received no reported violations of anti-corruption laws
and regulations, and SKAKO Employee Code of Conduct in 2021.
3. 95% of SKAKO employees have passed the SKAKO Employee Code of
Conduct e-learning. The main reason for the result not being 100% is new
hires in late 2021 who did not complete the Code of Conduct session yet.
4. In 2021, SKAKO has extended the whistle blower scheme to also be
available to external parties. Furthermore, the whistle blower scheme is part
of the SKAKO Employee Code of Conduct e-learning.
Results & goals
Risks
2. Employees lack knowledge of the whistle blower scheme.
3. Employee “Code of Conduct” e-learning is not prioritized.
Goal for
2022
Result for
2021
Result
2020
Result
2019
2 0 0 0 0
3 100% 95% 99% 81%
| Annual report 2021 Page 43
4.2 Corporate social responsibility
Human rights
Policy
To SKAKO, respect of human rights is about the company’s own
employees’ conditions and securing that suppliers and sub-suppliers deliver
services to the Group in a way that considers their employees’ rights including
safety and health.
Actions
SKAKO has formulated a Supplier ”Code of Conduct” that specifies principles
we expect our supplier to follow. This ensures that suppliers and their suppliers
produce and deliver their services to the Group in a way that considers the
environment and the employees’ rights.
KPI
The part of our main suppliers that have signed our supplier “Code of Conduct”.
Result for 2021 compared to goal for 2021
SKAKO has not reached the goal of having all suppliers sign our code of
conduct. This will be another target in 2022 and forward. Code of Conduct for
SKAKO group is currently being revised and will be launched in summer 2022.
Results & goals
Risks
Lack of transparency in compliance with SKAKOs Supplier “Code of Conduct”.
Goal 2022 Result 2021 Goal for 2021 Result 2020 Result 2019
95% 85% 100% 85% 82%
| Annual report 2021 Page 44
4.2 Corporate social responsibility
Working environment
Policy
Our employees are our most valuable asset and key to providing high-quality
products and services to our customers. It is vital to SKAKO’s future success that
SKAKO is a safe, motivating and developing place to work.
Actions
1. The sick rate among employees is monitored and we follow up on employees
with high absence.
2. SKAKO will produce an annual employee satisfaction survey to monitor the
development in employee satisfaction. Processes are in place to ensure that
low-scoring departments receive guidance on how to improve employee
satisfaction.
3. Number of on-the-job accidents is measured.
4. All employees must have a least one yearly performance appraisal interview.
KPIs
1. The average sick rate among employees.
2. An average employee satisfaction score of at least 3.5.
3. Number of on-the-job accidents.
4. Percentage of performance appraisal interviews each year.
Results for 2021 compared to goals for 2021
1. SKAKO is revising its global setup for monitoring sick days.
2. In 2021 an employee survey was not performed. This will follow on group level
in spring 2022.
3. In 2021, SKAKO had 5 on-the-job accidents. Management does not find this
satisfactory and will keep working on eliminating on-the-job accidents
entirely.
4. In 2021, we did not meet our target for appraisal interviews. As this is a vital part
of the employee well-being, we will keep pushing for this.
Results & goals
Goal for
2022
Result
2021
Result
2020
Result
2019
Result
2018
1* 6.0 8.4 7.8 7.5 8.1
2** >3.5 N/A 3.8 3.9 N/A
3 0 5 7 4 6
4 100% 85% 90% 90% 78%
Risks
1. Sick rate increases due to workload.
2. Results are not followed up by actions rendering the measuring superfluous.
3. Management does not reprimand violations of safety standards.
4. Performance appraisal interviews are not prioritized due to workload.
*Measured as total number of sick days divided by the average number of employees in the year
**On a scale from 1 to 5, where 5 is the most positive score
| Annual report 2021 Page 45
4.2 Corporate social responsibility
Equality, cf. Section 99b of the Danish Financial Statements Act
Policy
At SKAKO A/S we believe that a diverse and tolerant organization makes
the company stronger, increases the competitiveness and creates a good
and innovative working environment. We want to develop and benefit from the
total potential of all employees and that all employees can develop their full
potential in balance between working life and private life.
At present, SKAKO A/S has one female board member who entered the Board
of Directors in April 2020 whereby SKAKO reached its goal of having at least
one female board member by 2022. However, the Board of Directors is aware that
this still represents an underrepresentation and wants to support and contribute to
the part of female board members being increased. Considering SKAKO A/S’s
business and the line of business within which SKAKO A/S is operating, the Board of
Directors has set the specific goal that the part of women elected at the general
meeting is to amount to at least 40% by 2024.
In the view of the Board of Directors, the determined goal is an ambitious
and realistic goal for a company within the lines of business in which SKAKO is
operating as these lines of business traditionally do not have a large number of
women neither in the board of directors nor at the other management levels.
Within the last 12 months we succeeded in hiring one female manager who
replaced a male manager. It is the plan of the Board of Directors to further
increase the number of female managers in the years to come.
Ultimately, SKAKO A/S’s shareholders elect the Board of Directors at the company’s
general assembly and consequently also determine the gender composition
of the Board of Directors. To the extent that the Board of Directors proposes
new candidates for the Board of Directors, the Board of Directors will regard
gender as one separate parameter in order to reach the determined goal. When
candidates are proposed for SKAKO A/S’s Board of Directors, it is essential that the
members represent professional competences relevant to SKAKO A/S.
It is SKAKO’s goal to increase the part of women in the management group
within a three-year period. SKAKO A/S will reach the goal by requiring candidates of
both genders in the recruiting phase and by taking into account the
underrepresented gender at succession planning. SKAKO works very intentionally
on showing multiplicity in its marketing to signal that the company wants to reflect
the society in its employee composition.
Actions
1. SKAKO actively seeks to recruit new employees of all ethnicities and genders.
2. SKAKO seeks to have an improved gender distribution in employees and
Management.
3. SKAKO seeks to have an improved gender distribution in the Board of Directors.
KPIs
1. Share of the underrepresented gender among all employees.
2. Share of the underrepresented gender in Management.
3. Share of the underrepresented gender in the Board of Directors.
Results for 2021 compared to goals for 2021
1. In 2021, SKAKO is status quo, compared to 2020. However, the goal has not
yet been realized. According to our policy this will be a continuous focus for
SKAKO.
2. In 2021, SKAKO is status quo, compared to 2020. Target has not been achieved,
but will be part of the evaluation criteria for future recruitments to
management
3. In 2021, the Board of Directors remained unchanged, with one female board
member. Changes in the Board of Directors is currently not expected.
Results & goals
Risks
1. We will not reach our targets because SKAKO’s industry is historically a male-
dominated industry with limited access to female candidates.
Goal for
2022
Result
2021
Result
2020
Result
2019
Result
2018
1 20% women 17% women 17% women 14% women 17% women
2 20% women 17% women 17% women 13% women 13% women
3 20% women 20% women 20% women 0% women 0% women
| Annual report 2021 Page 46
4.2 Corporate social responsibility
Diversity, cf. Section 107d of
the Danish Financial Statements
Act
Policy
At SKAKO A/S we believe that a diverse and tolerant organization makes
the company stronger, increases the competitiveness and creates a good
and innovative working environment. We want to develop and benefit from the
total potential of all employees and that all employees can develop their full
potential in balance between working life and private life. Therefore, no
discrimination based on gender, religion, ethnicity, sexual orientation, etc. is
tolerated in SKAKO. When recruiting members to the SKAKO management team, we
are convinced that diversity will add value to the company.
To make sure all employees and management in SKAKO comply with
SKAKOs policies of tolerance and inclusion, we have established an Employee “Code
of Conduct” e-learning that describes the way SKAKO expects all its employees to
act in accordance with our policies, and laws and regulations.
Actions
1. SKAKO has developed an Employee “Code of Conduct” e-learning
that describes the way SKAKO expects all its employees to act in accordance
with laws and regulations. The employee “Code of Conduct” also describes
usage of the whistle blower scheme. Every year all SKAKO employees must
carry through the Employee “Code of Conduct” e-learning. The e-learning
provides the management with insight on how to secure diversity in the
organization and on management level.
2. Enhance the awareness in the SKAKO management team on the benefits of
diversity. This could be in a workshop with this specific purpose
KPIs
1. All employees to pass SKAKO’s Employee “Code of Conduct” e-learning.
Results for 2021 compared to goals for 2021
1. 95% of SKAKO employees have passed the SKAKO Employee Code of Conduct e-
learning. The main reason for the result not being 100% is new hires late in
2021 who did not complete the Code of Conduct yet.
Risks
1. Employee “Code of Conduct” e-learning is not prioritized.
Goal for
2022
Result
2021
Result
2020
Result
2019
Result
2018
1 100% 95% 90% 81% N/A
Results & goals
| Annual report 2021 Page 47
4.2 Data Ethics
Data ethics cf. Section 99d of the Danish Financial
Statements Act
Policy
At SKAKO A/S we are acting with responsibility, when it comes to data ethics. This
applies to all data, such as business intelligence data, employee information and
supplier/ customer information. We have defined eight basic principles of working
with data:
Welfare: Data on society, democracy and social relations are treated with
respect.
Dignity: Treatment of data may not be used to harm an individual.
Privacy: Any data treatment shall respect privacy and personal data shall
be protected. It should always be considered what data are
necessary and what are the sources of the data.
Own rights: The individual should always have the right to obtain information
on what data are stored and know for what purpose the data are
intended.
Equality: Treatment of data may not discriminate with regards to
ethnicity, sexuality, sex, political opinions, religion, generical data,
disability or other health related information.
Justice: Treatment of data is performed with responsibility to local
legislation.
Data security: Treatment of data shall be sufficiently safe, robust and reliable.
Data shall be stored and shared in way that unintended
availability for unauthorized use is impossible.
Responsibility SKAKO is responsible for data collected, stored and distributed
by SKAKO.
Actions
1. Continuously communicate the basic principles of data ethics to SKAKO staff.
2. Implement annual review of data stored in CRM system.
3. Secure that all customers and suppliers are confirming their consent with data
stored in CRM.
| Annual report 2021 Page 48
4.3 Risk management
4.3 RISK MANAGEMENT
First and foremost, risk management activities in the SKAKO Group focus on financial risks to which the Company is fairly likely to be exposed. In connection with the
preparation of the Group’s strategic, budgetary and annual plans, the Board of Directors considers the risks identified in these activities.
Financial risks
Financial risk management concentrates on identifying risks in respect of exchange
rates, credit and liquidity with a view to protecting the Group against potential
losses and ensuring that Management’s forecasts for the current year are only to a
limited extent affected by changes or events in the surrounding world – be the
changes in exchange rates or in interest rates. It is Group policy to exclusively
hedge financial risks arising from our commercial activities and not to undertake
any financial transactions of a speculative nature.
Exchange rate risks
With more than 90% of the Group’s sales being invoiced in foreign currencies,
reported revenue is affected by movements in the Group’s trading currencies.
The Group seeks to hedge against such exchange rate risks by seeking to match
positive and negative cash flows in the main currencies as much as possible. If
deemed appropriate, foreign exchange rate contracts are entered into.
Credit risks
The Group’s credit risks relate primarily to trade receivables. For large projects we
have a signed Letter of Credit from the customer’s bank before we undertake any
work. Our remaining customer base is fragmented so credit risks in general only
lead to minor losses on individual customers. Overall, we therefore estimate that
we have no major credit exposure on Group level.
Liquidity risk
The Group aims at having sufficient cash resources to be able to take appropriate
steps in case of unforeseen fluctuations in cash outflows. We have access to
suitable undrawn credit facilities, and the liquidity risk is therefore considered to
be low.
Financial reporting process
and internal controls
SKAKO has established and maintains an internal control setup that supports
correct and timely reporting to Management and Market. The responsibility of
maintaining sufficient and efficient internal control and risk management in
connection with financial reporting lies with the Executive Board. The Board of
Directors has assessed the Group’s existing control environment and concluded
that it is adequate and that there is no need for setting up an internal audit function.
Once every quarter we carry through a detailed planning and forecast process, and
any deviations from the plans and budgets are carefully monitored. Furthermore,
we perform weekly, monthly and quarterly reviews and assessments of all large
projects.
| Annual report 2021 Page 49
4.3 Risk management
Safeguarding corporate assets
Management continuously seeks to minimize any financial consequences of
damage to corporate assets including any operating losses resulting from such
damage. We have invested in security and surveillance systems to prevent damage
and to minimize such damage, should it arise. Major risks, which cannot be
adequately minimized, are identified by the Company’s Management, who will
ensure that appropriate insurance policies are, on a continuous basis, established
under the Group’s global insurance program administered by recognized and credit-
rated insurance brokers and that such insurances are taken out with insurance
companies with high credit ratings. The Group’s insurance program has deductible
clauses in line with normal market terms. The Board of Directors reviews the
Company’s insurance policies once a year including the coverage of identified risks
and is briefed regularly on developments in identified risks. The purpose of this
reporting is to keep the Board members fully updated and to facilitate corrective
action to minimize any such risks.
Declining market conditions
Management continuously monitors market conditions and maintains close
relations to significant customers in order to be able to make a timely response in
light of changing circumstances. Monitoring of consequences regarding the Corona
virus falls under this category, as well as geopolitical risks such as the current
Ukraine crisis.
Cyber security
SKAKO maintains and enforces an IT safety policy to reduce risks from cyber crime.
Furthermore, SKAKO has implemented an IT contingency plan based on
recommendations from the Danish Data Protection Agency. SKAKO’s head of IT
operations oversees monitoring and enforcing of the IT contingency plan.
Project execution
The Company continuously executes projects across the world, and in some cases
faces challenges in the execution. The Management continuously monitors project
execution to identify possible risks as early as possible. Furthermore, projects are
actively distributed among project managers to ensure that the most experienced
managers execute the most complex projects.
| Annual report 2021 Page 50
4.4 Corporate governance and remuneration report
4.4 CORPORATE GOVERNANCE
AND REMUNERATION REPORT
Recommendations on corporate governance
As a listed company on 31 December 2021, SKAKO observes the
´Recommendations on Corporate Governance´ (issued in November 2017 and
updated in December 2020) implemented by Nasdaq Copenhagen in its ´Rules for
issuers of shares´. The ´Recommendations on Corporate Governance´ contain 40
recommendations and are based on the comply-or-explain principle, which makes
it legitimate for a company to explain why it does not comply with them. SKAKO
fully complies with 37 of the 40 recommendations, and partially complies with
one, and therefore complies with the ´Recommendations on Corporate
Governance´ in all material respects.
A complete schematic presentation of the recommendations and how we comply,
Statutory report on corporate governance, cf. section 107 b of the Danish Financial
Statements Act, is available on our website under Investor Relations.
We find it relevant to highlight a number of aspects and supplementary
information on corporate governance in the SKAKO Group in this chapter.
Deviations from recommendations
SKAKO has not established a nomination or a remuneration committee. Given the
size of SKAKO, the Board of Directors finds it most suitable that the total Board of
Directors takes care of the tasks. SKAKO has not yet disclosed a tax policy. This will
be uploaded to our website as soon as the Board of Directors has released it.
Audit committee
The Company’s Board of Directors has set up an audit committee. The Board of
Directors appoints the chairman of the Audit Committee, who must be
independent and who must not be Chairman of the Board of Directors.
According to its charter, the Audit Committee, among other things, assists the
Board of Directors in relation to internal accounting and financial control systems,
the integrity of the company’s financial reports and engagements with external
auditors. The audit committee also carries out ongoing assessments of the
company’s financial and business risks.
In 2021, the committee reviewed the main accounting principles, tax strategy and
compliance and key risks, etc.
In 2021, the Audit Committee held five meetings.
Remuneration
The Company has formulated remuneration policies for the Board of Directors and
Executive Management. The policies were approved on the general assembly 28
April 2021.
The policies is available on our website under Investor Relations.
Furthermore, the Company has produced a remuneration report for the Board of
Directors and Executive Management.
The report is available on our website under Investor relations.
| Annual report 2021 Page 51
4.5 Executive management
4.5 EXECUTIVE MANAGEMENT
Name Steffen Kremmer Lionel Girieud Ulrik Damgaard
Born in 1962 1971 1965
Title Director Director Group CFO
Member of the
management since
2019 2016 2021
Number of shares
in SKAKO
1,236 5,166 0
Board positions – – –
| Annual report 2021 Page 52
4.6 Board of directors
4.6 BOARD OF DIRECTORS
Name Jens Wittrup Willumsen Lars Tveen
Title
Chairman of the Board of Directors and member of the audit committee
Considered as a non-independent Board member
Deputy Chairman
Considered as an independent Board member
Born in 1960 1963
Board member
since
2010 2017
SKAKO shares
Jens Wittrup Willumsen owns 50% of the shares in Frederik2 Aps. Frederik2 Aps owns
800,000 shares in SKAKO.
Further, Jens Wittrup Willumsen has a direct ownership of 19,876 shares in SKAKO.
Managerial
positions in other
companies
Chairman of the Board:
Licensewatch A/S, Kontrapunkt Group A/S, Everland ApS, COMIT A/S, Copenhagen
Optimization ApS, The INDEX, Projects A/S, Begravelse Danmark A/S, TMC Nordic
Deputy Chairman:
Billund Lufthavn A/S
Board member:
FDM Travel A/S, Charlotte Sparre A/S, Ejendomsselskabet Experimentarium A/S,
Museum Kolding, SEC Datacom Group A/S, Cogo ApS
Others positions:
Colonial ApS, Director own holding company Colonial 2 ApS, Director own holding
company Frederik2 ApS, Director own investment company
6,104
Chairman of the Board:
Project Zero-Fonden Denmark
(local initiative to achieve carbon neutrality by 2029)
Board member:
The Energy Industry (an association under the Confederation of Danish Industries),
Green Energy (Grøn Energi)
Special
competences
Jens Wittrup Willumsen is educated Cand. Merc. from Copenhagen Business School and
has had managing positions in Denmark and abroad. His competences include strategy,
finance, financing, sales and marketing.
Participation in
board meetings
Jens Wittrup Willumsen participated in all board and audit committee meetings in 2021.
Lars Tveen is educated production engineer from Odense University in 1989 and has a
bachelor in Commerce from University of Southern Denmark from 1993. Following his
education Lars Tveen was appointed at Danfoss as Management Trainee.
Since 2015 Lars Tveen has been President of the Heating Division of Danfoss and member
of the Danfoss Group Executive Team.
Lars Tveen participated in all board meetings in 2021.
| Annual report 2021 Page 53
4.6 Board of directors
Name Carsten Krogsgaard Thomsen Sophie Louise Knauer
Title Chairman of the Audit Committee
Considered as an independent Board member
Considered as an independent Board member
Born in 1957 1983
Board member
since
2017 2020
SKAKO shares 19,255 –
Managerial
positions in other
companies
Board member:
NTG Nordic Transport Group A/S
Board member:
Solar A/S, Rekom Group A/S, CC Globe Holding I ApS,
CC Globe Holding II ApS, CC Fly Holding I ApS,
CC Fly Holding II ApS, CC Mist NEW Holding ApS,
CC Mist NEW Holding II ApS
Other positions:
Lady invest ApS managing director and owner.
Special
competences
Carsten Krogsgaard Thomsen is educated Cand. Polit.
and has had a long career with primary focus on
economics and finance. Through his career, Carsten
Krogsgaard Thomsen has accumulated extensive
experience within M&A, and compliance in listed
companies.
From 2014 to 2020 Carsten Krogsgaard Thomsen was
CFO in NNIT and previously also held positions as EVP
and CFO in Dong Energy A/S, EVP in DSB (Danish State
Railways), finance and planning manager at
Rigshospitalet (the Copenhagen University Hospital) and
consultant in McKinsey & Company.
Sophie Louise Knauer is educated HA JUR and Cand.
Merc. in economy and strategic management from
Copenhagen Business School. Her career includes top
management in TDC, CEO for People Group A/S and
senior consultant at McKinsey & Company.
Sophie Louise Knauer has built strong competences
within strategic management and digital
transformation.
Participation in
board meetings
Carsten Krogsgaard Thomsen participated in all board
and audit committee meetings in 2021.
Christian Herskind Jørgensen participated in all board
meetings in 2021.
Sophie Louise Knauer participated in all
board meetings in 2021.
Christian Herskind Jørgensen
Considered as a non-independent Board member
1961
2009
Chairman of the Board:
Fonden Amager Bakke, LABFLEX A/S, Taulov DryPort A/S, Skive
Holding ApS
Deputy Chairman:
Fonden til støtte for soldater i internationale missioner
(Soldaterlegatet)
Board member:
Fonden Peder Skram, Su Misura A/S,
Nordsøenheden/Nordsøfonden, Associated
Danish Ports A/S, LM Byg A/S, Pihl & Søn A/S,
BNS A/S
Others positions:
Herskind Venture Capital ApS, Director own holding
company, Ejendomsselskabet Helsingør/Århus, Director
Frederik2 ApS, Director own holding company
Christian Herskind Jørgensen is educated lawyer from University
of Copenhagen and University of London and is also Brigadier.
His competences include significant experience within sales,
marketing, strategy, management, HR and legal matters.
Christian Herskind Jørgensen owns 50% of the shares in
Frederik2 Aps. Frederik2 Aps owns 800,000 shares in SKAKO.
Further, Christian Herskind Jørgensen has a direct ownership
of 109,000 shares in SKAKO.
| Annual report 2021 Page 54
We use our know-how to define
the industry and develop
visionary, sustainable
and technology-based
solutions.
| Annual report 2021 Page 55
4.7 Shareholder information
4.7 SHAREHOLDER INFORMATION
As of 31 December 2021, SKAKO’s nominal share capital was 31,064,180 DKK
divided into 3,106,418 shares of 10 DKK each. All shares are fully paid, the same
class and carry one vote each.
The Board of Directors has been authorized by the annual general assembly to
initiate a share buy-back program for up to 10% of the share capital. The
authorization is valid until 31 March 2022.
SKAKO A/S is listed at NASDAQ OMX Copenhagen A/S under identification code
DK0010231877. The share price as of 31 December 2021 was 55.2 corresponding
to a market capitalization of DKK 171.5m.
By the end of 2021 the company had 1746 registered shareholders compared with
1663 registered shareholders by the end of 2020. The registered shareholders own
a total of 94.5% of the share capital compared to 94.5% by the end of 2020.
Specification of movements in share capital
Shareholders with more than 5% of the share
Dividend
Based on the results in 2021 and capital structure of SKAKO A/S on 31 December
2021, the Board of Directors recommends a dividend distribution of DKK 4 per
share, corresponding to 93.5% (adjusted for earn-out relating to Dartek, the
dividend amounts to 81%) of profit for the year and a total dividend distribution of
DKK 12.3m. With a share price of DKK 55.2 on 31 December 2021 this corresponds to
a dividend yield of 7.2%.
Ex dividend date:
Record date:
Payment date:
20 April 2022
25 April 2022
26 April 2022
Financial calendar 2022
DKK Thousands 2021 2020 2019 2018 2017
Share capital
31,064 31,064 31,064 31,064 31,064
at 01.01.
Capital increase – – – – –
Share capital
31,064 31,064 31,064 31,064 31,064
at 31.12.
Frederik2 ApS, Copenhagen
Danica Pension,Copenhagen
Maj Invest Holding A/S, Copenhagen
25.75%
10.71%
9.98%
Presentation of the annual report
Together with HC Andersen Capital, SKAKO A/S will do an online presentation of
the annual report for 2021 on Wednesday 23 March 2022 at 11.00 – 12.00 pm.
Registration for event:
https://hcandersencapital643.clickmeeting.com/skako-praesentation-af-
arsregnskabet-2021/register
Annual general meeting 2022
The annual general meeting will be held on Thursday 19 April 2022 at 3 p.m. at the
Company’s head office at Bygmestervej 2, 5600 Faaborg, Denmark.
Investor Relations
Investors, analysts and medias are welcome to contact Jens Wittrup Willumsen
(Chairman of the Board of Directors) by phone +45 2347 5640 or by e-mail to
[email protected]om
17
March
Annual
report for 2021
19 April
Ordinary
general meeting 2022
25 May
Interim
report for the period 1 January - 31 March 2022
25 August
Interim
report for first half-year 2022
10 November
Interim
report for the period 1 January - 30 September 2022
| Annual report 2021 Page 56
5. FINANCIAL
STATEMENTS
| Annual report 2021 Page 57
5.1 Statement by Management
Board of Directors
Steffen Kremmer
Director
Executive Board
Lionel Girieud
Director
Jens Ulrik Damgaard
Group CFO
Jens Wittrup Willumsen
Chairman
Christian Herskind Jørgensen
Carsten Krogsgaard Thomsen
Lars Tveen
Deputy Chairman
5.1 STATEMENT BY MANAGEMENT
Today, we have discussed and approved the Annual Report 2021 of SKAKO A/S for
the financial year 1 January – 31 December 2021.
The annual report has been prepared and presented in accordance with International
Financial Reporting Standards as adopted by the EU and further requirements in
the Danish Financial Statement Act.
In our opinion, the consolidated financial statements and the parent company
financial statements give a true and fair view of the Group’s and the parent
company’s assets, liabilities and financial position on 31 December 2021 and of the
results of the Group’s and the parent company’s operations and cash flows for the
financial year 1 January – 31 December 2021.
Further, in our opinion the Management’s report includes a fair view of the
development and performance of the Group’s and the parent company’s business
and financial condition, the profit for the year and of the Group’s and the parent
company’s financial position, together with a description of the principal risks and
uncertainties that the Group and the parent company face.
In our opinion, the annual report of SKAKO A/S for the financial year 1 January to 31
December 2021 with the file name 529900WNR3U8C847AW24-2021-12-31-en.zip is
prepared, in all material respects, in compliance with the ESEF Regulation.
We recommend the Annual Report for 2021 be approved at the Annual General
Meeting.
Faaborg, 17 March 2022
Sophie Louise Knauer
| Annual report 2021 Page 58
5.2 Independent auditor’s reports
5.2 INDEPENDENT AUDITOR’S REPORTS
To the shareholders of SKAKO A/S
Our opinion
In our opinion, the Consolidated Financial Statements and the Parent Company
Financial Statements give a true and fair view of the Group’s and the Parent
Company’s financial position at 31 December 2021 and of the results of the Group’s
and the Parent Company’s operations and cash flows for the financial year 1 January
to 31 December 2021 in accordance with International Financial Reporting
Standards as adopted by the EU and further requirements in the Danish Financial
Statements Act.
Our opinion is consistent with our Auditor’s Long-form Report to the Audit
Committee and the Board of Directors.
What we have audited
The Consolidated Financial Statements and Parent Company Financial Statements
of SKAKO A/S for the financial year 1 January to 31 December 2021 comprise
income statement and statement of comprehensive income, balance sheet, cash
flow statement, statement of changes in equity and notes, including summary of
significant accounting policies for the Group as well as for the Parent Company.
Collectively referred to as the “Financial Statements”.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(ISAs) and the additional requirements applicable in Denmark. Our responsibilities
under those standards and requirements are further described in the Auditor’s
responsibilities for the audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Ethics
Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical requirements applicable in
Denmark. We have also fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code. To the best of our knowledge and
belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU)
No 537/2014 were not provided.
Appointment
We were first appointed auditors of SKAKO A/S on 26 April 2012 for the financial
year 2012. We have been reappointed annually by shareholder resolution for a
total period of uninterrupted engagement of 10 years including the financial year
2021.
Report on the audit of the Financial Statements
| Annual report 2021 Page 59
5.2 Independent auditor’s reports
Revenue recognition from construction contracts
Revenue from customer contracts is recognised over time. The proportion of
revenue to be recognised in a particular period is calculated according to the
percentage of completion of the project. This is measured by reference to the costs
of performing the contract incurred up to the relevant balance sheet date as a
percentage of the total estimated costs of performing the contract.
Contract assets amounted to DKK 53 million (2020: DKK 66 million) net and
contract liabilities DKK 20 million (2020: DKK 6 million).
Recognition of the Group’s revenue involves a high degree of subjectivity in
determining significant assumptions for the total estimated costs for the contracts.
We focused on this area, as recognition of revenue involves judgements made by
Management originating from percentage of completion and estimated cost to
completion. Reference is made to note 1 and 15.
We considered the appropriateness of the Group’s accounting policies for revenue
recognition and assessed compliance with applicable accounting standards.
We performed risk assessment procedures with the purpose of achieving an
understanding of it-systems, procedures and relevant controls relating to revenue
recognition from construction contracts. In respect of controls, we assessed
whether these were designed and implemented effectively to address the risk of
material misstatement.
We performed substantive procedures over input data from contracts and costs
allocated to projects in order to assess the accounting treatment and principles
applied.
We assessed Management’s estimated cost to completion and contribution
margin for construction contracts in order to evaluate the valuation of
construction contracts and recognised revenue. We compared the estimated
contribution margins to actual contribution margins for finished projects and to
prior year’s estimates.
We performed a retrospective analysis of Management’s ability to assess the cost
to completion and expected contribution margin in prior years.
We tested Management’s estimated percentage of completion by assessing
subsequent development in costs allocated to the projects and Management’s
updated estimates for cost to completion and contribution margin.
Deferred tax assets
At 31 December 2021, the Group has recognised deferred tax assets of DKK 21
million (2020: DKK 21 million).
Management is required to exercise considerable judgement when determining
the appropriate amount to capitalise in respect of deferred tax.
We focused on this area as the amounts involved are significant and the
valuation of tax assets is dependent on highly subjective assumptions on
budgeted taxable income for the coming years. Reference is made to note 13.
We evaluated Management’s method for estimating the deferred tax assets.
In understanding and evaluating Management’s method and assumptions we
performed a retrospective analysis of Management’s ability to budget the
taxable income in prior years.
Further, we examined the Group’s budgets and projections for the coming
years including significant assumptions. We evaluated and challenged the
adequacy of the significant assumptions determined by Management in
developing the accounting estimate.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2021. These matters
were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter How our audit addressed the key audit matter
| Annual report 2021 Page 60
5.2 Independent auditor’s reports
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the Financial Statements does not cover Management’s Review, and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read
Management’s Review and, in doing so, consider whether Management’s Review is
materially inconsistent with the Financial Statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated.
Moreover, we considered whether Management’s Review includes the disclosures
required by the Danish Financial Statements Act.
Based on the work we have performed, in our view, Management’s Review is in
accordance with the Consolidated Financial Statements and the Parent Company
Financial Statements and has been prepared in accordance with the requirements of
the Danish Financial Statements Act. We did not identify any material misstatement
in Management’s Review.
Management’s responsibilities for the Financial
Statements
Management is responsible for the preparation of consolidated financial statements
and parent company financial statements that give a true and fair view in accordance
with International Financial Reporting Standards as adopted by the EU and further
requirements in the Danish Financial Statements Act, and for such internal control as
Management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for assessing the
Group’s and the Parent Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of
accounting unless Management either intends to liquidate the Group or the Parent
Company or to cease operations, or has no realistic alternative but to do so.
| Annual report 2021 Page 61
5.2 Independent auditor’s reports
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will
always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on
the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional requirements
applicable in Denmark, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial
Statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Group’s and
the Parent Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
Management.
• Conclude on the appropriateness of Management’s use of the going concern
basis of accounting and based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s and the Parent Company’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in
the Financial Statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause
the Group or the Parent Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Financial
Statements, including the disclosures, and whether the Financial Statements
represent the underlying transactions and events in a manner that gives a true
and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information
of the entities or business activities within the Group to express an opinion on
the Consolidated Financial Statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence and, where applicable, actions taken to
eliminate threats or safeguards applied. From the matters communicated with those
charged with governance, we determine those matters that were of most significance
in the audit of the Financial Statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
| Annual report 2021 Page 62
5.2 Independent auditor’s reports
Report on compliance with the ESEF Regulation
As part of our audit of the Financial Statements we performed procedures to express
an opinion on whether the annual report of SKAKO A/S for the financial year 1
January to 31 December 2021 with the filename 529900WNR3U8C847AW24-2021-
12-31-en.zip is prepared, in all material respects, in compliance with the Commission
Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF
Regulation) which includes requirements related to the preparation of the annual
report in XHTML format and iXBRL tagging of the Consolidated Financial Statements.
Management is responsible for preparing an annual report that complies with the
ESEF Regulation. This responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including extensions to
the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for
all financial information required to be tagged using judgement where
necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated Financial
Statements presented in human-readable format; and
• For such internal control as Management determines necessary to enable the
preparation of an annual report that is compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable assurance on whether the annual report is
prepared, in all material respects, in compliance with the ESEF Regulation based on
the evidence we have obtained, and to issue a report that includes our opinion. The
nature, timing and extent of procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material departures from the
requirements set out in the ESEF Regulation, whether due to fraud or error. The
procedures include:
• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the company’s iXBRL tagging process and of
internal control over the tagging process;
• Evaluating the completeness of the iXBRL tagging of the Consolidated Financial
Statements;
• Evaluating the appropriateness of the company’s use of iXBRL elements
selected from the ESEF taxonomy and the creation of extension elements
where no suitable element in the ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension elements to elements in the ESEF
taxonomy; and
• Reconciling the iXBRL tagged data with the audited Consolidated Financial
Statements.
In our opinion, the annual report of SKAKO A/S for the financial year 1 January to 31
December 2021 with the file name 529900WNR3U8C847AW24-2021-12-31-en.zip is
prepared, in all material respects, in compliance with the ESEF Regulation.
Odense, 17 March 2022
PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab
CVR no 3377 1231
Gert Fisker Tomczyk
State Authorized
Public Accountant
mne9777
Mikael Johansen
State Authorized
Public Accountant
mne23318
| Annual report 2021 Page 63
5.3 Consolidated financial statements
DKK Thousands
2021 2020
Notes
1 Revenue from contracts with customers 363,706 335,920
3,4 Production costs
(271,298) (258,055)
G
ross profit 92,408 77,865
4 Distribution costs (40,745) (35,039)
4,5,6 Administrative expenses (31,340) (27,655)
Operating profit (EBIT)
20,323 15,171
7 Financial income 721 461
7 Financial expenses (5,627) (3,545)
Profit before tax 15,417 12,087
8 Tax on profit for the year (2,228) (1,228)
Profit for the year 13,189 10,859
Profit for the year attributable to SKAKO A/S shareholders 13,189 10,859
9 Earnings per share (EPS), DKK 4.28 3.52
9 Diluted earnings per share (EPS), DKK
4.28 3.52
Consolidated income statement
5.3 CONSOLIDATED FINANCIAL
STATEMENTS
| Annual report 2021 Page 64
5.3 Consolidated financial statements
Notes
Profit for the year
Other comprehensive income:
Items that have been or may subsequently
be reclassified to the income statement:
Foreign currency translation, subsidiaries
Value adjustments of hedging instruments
13,189
773
(233)
10,859
(1,453)
146
Other comprehensive income 540 (1,307)
Comprehensive income 13,729 9,552
Comprehensive income attributable to SKAKO A/S shareholders 13,729 9,552
Consolidated statement of comprehensive income
DKK Thousands 2020
2021
| Annual report 2021 Page 65
5.3 Consolidated financial statements
Notes
Intangible assets
Intangible assets under development
39,068
3,113
38,961
2,226
10 Intangible assets 42,181 41,187
12 Leased assets 8,035 9,874
11 Land and buildings 5,832 5,988
11 Plant and machinery 1,053 807
11 Operating equipment, fixtures and fittings 3,059 2,909
11 Leasehold improvements 1,630 528
11 Tangible assets under construction 97 454
Tangible assets 19,706 20,560
Other receivables 1,272 1,521
13 Deferred tax assets 21,057 20,997
Other non-current assets 22,329 22,518
Total non-current assets 84,216 84,265
14 Inventories
64,080 53,077
19 Tr
ade receivables
87,429 73,439
15, 19 Contract assets
53,037
66,376
I
ncome tax - 610
Other receivables 8,340 7,792
Prepaid expenses 2,843 3,079
Cash 39,075 33,420
Current assets 254,804 237,793
Assets 339,020 322,058
Consolidated balance sheet 31 December
DKK Thousands 2021 2020
| Annual report 2021 Page 66
5.3 Consolidated financial statements
Notes
Share capital 31,064 31,064
Foreign currency translation reserve (451) (1,224)
Hedging reserve (49) 184
Retained earnings 89,338 87,976
Proposed dividends 12,335 9,252
Equity
132,237 127,252
Ot
her liabilities 7,995 6,270
17 Provisions 3,729 3,303
16 Loans and borrowings
11,787 22,326
12 Leasing 5,611 6,556
Non-current liabilities
29,122 38,455
17 Provisions 3,440 1,997
16 Loans and borrowings 9,849 10,118
16 Bank loans and credit facilities 35,970 31,261
12 Leasing 2,845 3,346
15 Contracts liabilities
19,762 6,051
Trade payables 79,081 75,546
Income tax 316 450
Other liabilities 26,398 27,582
Current liabilities
177,661 156,351
Lia
bilities 206,783 194,806
EQUITY AND LIABILITIES 339,020 322,058
Consolidated balance sheet 31 December CONTINUED
DKK Thousands
2021 2020
| Annual report 2021 Page 67
5.3 Consolidated financial statements
Notes
Profit before tax 15,417 12,087
18 Adjustments 14,702 9,112
Changes in receivables, etc.
(102) (1,531)
C
hange in inventories (11,003) 6,727
Change in trade payables and other liabilities, etc. 17,785 (17,933)
Cash flow from operating activities before financial items and tax 36,799 8,462
Financial items received and paid (4,906) (3,084)
Taxes paid and received (1,617) (572)
Cash flow from operating activities 30,276 4,806
10 Investment in intangible assets (3,962) (2,729)
11 Investment in tangible assets (3,504) (5,860)
20 Acquisition of entities - (4,507)
Cash flow from investing activities (7,466) (13,096)
New borrowings 1,471 19,282
Repayments (13,725) (8,382)
Paid dividends (9,252) (6,168)
Change in short-term bank facilities 4,708 10,884
18 Cash flow from financing activities (16,798) 15,616
Change in cash and cash equivalents 6,012 7,326
Cash and cash equivalents 1 January
33,420 26,560
Fo
reign exchange adjustment, cash and cash equivalents (357) (466)
Cash and cash equivalents 31 December 39,075 33,420
Breakdown of cash and cash equivalents at the end of the year:
Cash 39,075 33,420
Cash and cash equivalents at the end of the year: 39,075 33,420
Consolidated cash flow statement
DKK Thousands 2021 2020
| Annual report 2021 Page 68
5.3 Consolidated financial statements
Share capital
Foreign currency
translation reserve
Hedging reserve
Retained
earnings
Proposed
dividends
Equity
Equity 1 January 2021 31,064 (1,224) 184 87,976 9,252 127,252
Paid dividends
(9,252) (9,252)
Comprehensive income in 2021:
Profit for the year 854 12,335 13,189
Other comprehensive income:
Foreign currency translation
adjustments, subsidiaries
773 773
Value adjustments of
hedging instruments
(233) (233)
Other comprehensive income - 773 (233) - - 540
Comprehensive income, year - 773 (233) 854 12,335 13,729
Share-based payment, warrants 508 - 508
Equity 31 December 2021 31,064 (451) (49) 89,338 12,335 132,237
Consolidated statement of changes in equity
DKK Thousands
| Annual report 2021 Page 69
5.3 Consolidated financial statements
Consolidated statement of changes in equity
Share capital
Foreign currency
translation reserve
Hedging reserve
Retained
earnings
Proposed
dividends
Equity
Equity 1 January 2020 31,064 229 38 93,086 - 124,417
Distributed interim dividends (6,168) (6,168)
Comprehensive income in 2020:
Profit for the year 1,607 9,252 10,859
Other comprehensive income:
Foreign currency translation
adjustments, subsidiaries
(1,453) (1,453)
Value adjustments of
hedging instruments
146 146
Other comprehensive income - (1,453) 146 - - (1,307)
Comprehensive income, year - (1,453) 146 1,607 9,252 9,552
Share-based payment, warrants (549) - (549)
Equity 31 December 2020 31,064 (1,224) 184 87,976 9,252 127,252
DKK Thousands
| Annual report 2021 Page 70
5.4 Consolidated notes
5.4 CONSOLIDATED NOTES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Note No.
1.
10.
13.
15.
17.
20.
Significant estimates and assessments:
Notes to consolidated financial statements
Revenue from contracts with customers . . . . . . . . . . . . . . . . . 71
Segment information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Production costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Staff costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Share-based payment, warrants . . . . . . . . . . . . . . . . . . . . . . 80
Fee to parent company auditors appointed at the annual general meeting 82
Net financial items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Tax on profit for the year . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Earnings per share (EPS) . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Tangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Leases – Right-of-use assets . . . . . . . . . . . . . . . . . . . . . . . 93
Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Contract assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . 99
Bank loans and credit facilities . . . . . . . . . . . . . . . . . . . . . . 101
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Adjustments, consolidated cash flow statement . . . . . . . . . . . . 105
Exchange rate, liquidity and credit risks . . . . . . . . . . . . . . . . . 106
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Contractual liabilities, contingent liabilities and securities . . . . . . 112
Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Events after the balance sheet date . . . . . . . . . . . . . . . . . . . 112
Approval and publication . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Group accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . 113
Correction of not significant mistake in the financial figures for 2020 115
Description
Page
Page
Description
Note No.
Revenue from contracts with customers . . . . . . . . . . . . . . 71
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Contract assets and liabilities . . . . . . . . . . . . . . . . . . . . . 99
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
| Annual report 2021 Page 71
5.4 Consolidated notes
Accounting policy
SKAKO operates in the following business segments: SKAKO Concrete and
SKAKO Vibration.
SKAKO Concrete develops, designs and sells a versatile high-end product
range of all types of concrete batching plants for ready-mix, precast and
jobsite plants. The main focus is on plant sales with a strong aftersales
division.
SKAKO Vibration develops, designs and sells high-end vibratory feeding,
conveying, and screening equipment, used across the complete spectrum of
material handling and processing. The main focus is on plant sales with a solid
aftersales division.
Administrative functions such as Finance, HR and IT are shared by the
divisions. The administrative functions are based in the individual countries
but supported by Group functions in Denmark. Shared costs are allocated to
business segments based on assessment of usage.
All intercompany transactions are made on market terms.
Segment assets and liabilities comprise items directly attributable to a
segment and items that can be allocated to a segment on a reasonable
basis.
Revenue is the fair value of consideration received or receivable from the
sale of our plants and aftersales products or services and is the gross sales
price less VAT and any price reductions in the form of discounts and rebates.
Geographical information is based on the four regions that support the
industries. Revenue is presented in the region in which delivery takes place.
Segment income and costs include transactions between business areas.
The transactions are eliminated in connection with the consolidation
Revenue is recognized over time or at a point in time. Revenue is
recognized over time when an asset on behalf of a customer is created with
no alternative use and SKAKO has an enforceable right to payment for
performance completed year to date, or the customer obtains control of a
plant or product and thus has the ability to direct the use and obtain the
benefit from the plant or product.
Terms of payment are depending on conditions in the specific market. Plant
sales orders are in general agreed with pre-payment and payment
milestones.
Plant sales
Plant sales are negotiated contracts to design and install concrete batching
plants, and vibratory feeding, conveying and screening equipment for
customers. Revenue will be recognized over time, as the above criteria are
met, using “the percentage of completion method”.
The proportion of revenue to be recognized in a particular period is
calculated according to the percentage of completion of the project. For
most contracts this is measured by reference to the costs of performing the
contract incurred up to the relevant balance sheet date as a percentage of
the total estimated costs of performing the contract. Reference to cost is
assessed to be the most appropriate method as incurred hours and material
costs are the value drivers for the projects. The sales value agreed in the
contract is recognized over the contract period using above method.
Contracts where the recognized revenue from the work performed exceeds
progress billings are recognized in the balance sheet under assets
Contracts for which progress billings exceed the revenue are recognized
under liabilities. Prepayments from customers are recognized under
liabilities.
If it is likely that the total costs in relation to a construction contract will
exceed the total revenue on a specific project, the expected loss is
recognized immediately in the income statement in the current period.
1. Revenue from contracts with customers
| Annual report 2021 Page 72
5.4 Consolidated notes
Accounting policy CONTINUED
Significant assessment by Management
Assessments regarding contracts with customers is performed when
determining if a contract for sale of a plant, spare parts or service, or a
combination hereof, involves one or more performance obligations.
Assessments regarding recognition method are made when determining if a
contract for sale of a plant, spare parts or service is recognized as revenue
over time or at a point in time. The assessments relate to whether we have
an alternative use of the assets sold and if we have an enforceable right to
payment throughout the contractual term.
When assessing if an asset has no alternative use, we estimate the
alternative use cost amount. We have limited historical data as we rarely
redirect our assets. The estimate is based on the specifics of each contract.
When assessing if we are entitled to payment throughout the contract term,
an assessment is made based on the contract wording, legal entitlement and
profit estimates.
Significant estimates by Management
Total expected costs related to plant sales are partly based on estimates as
they include provisions for unforeseen cost deviations in future supplies of
raw materials, subcontractor products and services plus construction
and handing over. Provisions for warranties on work-in-progress for third
parties are based on Management estimates for each project while taking
contract obligations into account.
1. Revenue from contracts with customers CONTINUED
Both divisions in SKAKO sell a range of spare parts and products as aftersales
to the plant sales. Revenue is recognized when control of the products has
transferred, being when the products are delivered to the customer. Delivery
occurs when the products have been shipped to the specific location, the
risks of obsolescence and loss have been transferred to the customer, and
SKAKO has objective evidence that all criteria for acceptance have been
fulfilled.
In both divisions, revenue from the service contracts is recognized in the
period in which the services are provided based on amounts billable to a
customer. Revenue is recognized based on usage of units, and price lists
according to the contract.
Aftersales, spare parts and products Aftersales services
| Annual report 2021 Page 73
5.4 Consolidated notes
2021 2020 2021 2020 2021 2020
Plant 70,145 90,002 146,951 120,751 212,587 209,564
- Over time 70,145 90,002 138,182 114,333 203,819 203,146
- A point in time - - 8,769 6,418 8,769 6,418
Aftersales 94,828 82,413 56,290 46,834 151,118 126,356
- Over time - - - - - -
- A point in time 94,828 82,413 56,290 46,834 151,118 126,356
Total revenue 164,973 17
2,415 203,242 167,585 363,706 335,920
Segregation of revenue
Revenue, DKK Thousands
Concrete Vibration Group*
Revenue, DKK Thousands 2021 2020
Revenue recognized that was included in the contract liability balance at the beginning of the period:
- Plant sales 6,051 16,517
- Aftersales - -
Total revenue recognized from contract liabilities 6,051 16,517
Segregation of revenue in segments
1. Revenue from contracts with customers CONTINUED
*After eliminations
| Annual report 2021 Page 74
5.4 Consolidated notes
Africa
Revenue: DKK 23,878k (2020: DKK 10,628k)
Hereof revenue in Morocco: DKK 603k (2020: DKK 1,029k)
North America
Revenue: DKK 32,006k (2020: DKK 59,795k)
Rest of the world
Revenue: DKK 24,920k (2020: DKK 17,333k)
Europe
Revenue: DKK 282,965k (2020: DKK 248,163k)
Hereof revenue in Denmark: DKK 30,322k (2020: DKK 28,287)
Hereof revenue in France: DKK 60,050k (2020: DKK 49,138k)
Hereof revenue in the UK: DKK 26,237k (2020: DKK 29,278k)
Hereof revenue in Germany: DKK 34,757k (2020: DKK 21,114k)
Hereof revenue in Spain: DKK 40,922k (2020: DKK 28,988k)
Geographical revenue information
1. Revenue from contracts with customers CONTINUED
Geographical non-current assets information
North America
DKK 684k (2020: DKK 802k)
Europe
DKK 83,531k (2020: DKK 82,690k)
Hereof in Denmark: DKK 68,747k (2020: DKK 69,620k)
Hereof in France: DKK 11,579k (2019: DKK 7,655k)
Hereof in Spain: DKK 2,745k (2019: DKK 5,366k)
Hereof in Other: DKK 460k (2020: DKK 48k)
| Annual report 2021 Page 75
5.4 Consolidated notes
2021 Concrete Vibration
Not distributed including
parent company
Eliminations Group total
Concrete 164,959 - - - 164,959
Minerals - 87,253 - - 87,253
Hardware - 31,989 - - 31,989
Recycling - 61,767 - - 61,767
Other - 17,738 - - 17,738
Internal 14 4,494 - (4,508) -
Total revenue 164,973 203,241 - (4,508) 363,706
Depreciations (3,401) (4,020) - - (7,421)
Operating profit (EBIT) 6,079 17,321 (3,077) - 20,323
Order backlog, beginning 34,496 58,593 - (1,212) 91
,877
Order intake 199,130 198,863 - (3,782) 394,211
Order backlog, ending 68,653 54,215 - (486) 122,382
Segment non-current assets 34,426 42,850 6,940 - 84,216
Segment assets 142,539 199,590 8,492 (11,601) 339,020
Segment liabilities 80,772 133,248 4,364 (11,601) 206,783
Investments in intangible and tangible asset 2,669 6,319 - (1,522) 7,466
Average number of employees 82 117 - - 199
2021
DKK Thousands
2. Segment information
| Annual report 2021 Page 76
5.4 Consolidated notes
2020 Concrete Vibration
Not distributed including
parent company
Eliminations Group total
Concrete 172,388 - - - 172,3880
Minerals - 50,695 - - 50,695
Hardware - 45,006 - - 45,006
Recycling - 49,060 - - 49,060
Other - 14,718 - - 14,718
Internal 27 4,053 - (4,080) -
Total revenue 172,415 167,585 - (4,080) 335,920
Depreciations (2,678) (3,508) - - (6,186)
Operating profit (EBIT) 7,672 11,798 (2,250) - 17,220
Order backlog, beginning 64,571 60,014 - (931) 123,654
Order intake 142,340 166,164 - (4,361) 304,143
Order backlog, ending 34,496 58,593 - (1,212) 91,877
Segment non-current assets 36,746 42,418 5,101 - 84,265
Segment assets 133,968 193,936 5,155 (9,052) 324,107
Segment liabilities 67,933 128,492 7,433 (9,052) 194,806
Investments in intangible and tangible asset 10,306 2,790 - - 13,096
Average number of employees 84 111 - - 195
2020
DKK Thousands
2. Segment information
| Annual report 2021 Page 77
5.4 Consolidated notes
3. Production costs
Accounting policy
Production costs are costs incurred to generate revenue. Production costs
consist of raw materials, consumables, production staff, research and
development cost as well as maintenance of and depreciation, amortisation
and impairment losses on property, plant and equipment and intangible
assets used in the production process.
Research costs are always recognized in the Income Statement in step with
the incurrence of such costs. Development costs include all costs not
satisfying the capitalisation criteria, but incurred in connection with
development, prototype construction and development of new business
concepts.
Direct and indirect research and development incentives in terms of tax
incentives and other grants and subsidy schemes for research and
development are recognized when there is reasonable certainty that the
conditions for such grants are satisfied and that they will be awarded. Grants
are offset against research and development costs.
The measurement and classification of government grants related to
research and development is based on Management’s assessment. The
incentive schemes applied do not require positive taxable income and hence
government grants received have been accounted for in accordance with IAS
20.
DKK
Thousands 2021 2020
Cost
of goods sold during the year 169,446 163,441
Write
-down of inventories for the year, net (391) 587
Research
and development costs 1,143 115
Production staff costs
and other costs 101,100 93,913
Total
production costs 271,298 258,056
| Annual report 2021 Page 78
5.4 Consolidated notes
4. Staff costs
Accounting policy
Staff costs consist of direct wages and salaries, remuneration, pension, share-based payments, training, etc.
DKK
Thousands 2021 2020
Wages,
salaries and other remuneration 108,590 97,206
Contribution
plans and other social security costs, etc. 14,488 13,938
Share
-based payment, warrants 508 (549)
Other
staff costs 2,276 1,795
125,862 112,390
The
amounts are included in the items:
Production
costs 74,466 76,011
Distribution
costs 34,148 23,288
Administrative
costs 17,248 13,091
125,862 112,390
The average number of employees was 199 (2020: 195).
Staff costs 2020 include government compensation of DKK 3.8m which have been offset in salary costs, in both cost of goods sold (DKK 2.9m) and capacity cost (DKK 0.9m).
Staff cost 2021 include the final regulation of the government compensation, both cost of goods sold (DKK - 0.1) and capacity cost of (DKK - 0.3m)
| Annual report 2021 Page 79
5.4 Consolidated notes
DKK Thousands 2021 2020
Board of Directors and Audit Committee 1,250 1,100
Executive Management
Wages, salaries and other remuneration 5,538 4,698
Contribution plans and other social security costs, etc. 365 530
Share-based payment, warrants 329 (637)
6,232 4,591
Total remuneration for Executive Management and Board of Directors 7,482 5,691
Remuneration to Executive Management and Board of Directors
The Executive Management have been granted warrants to subscribe for shares in the company, cf. note 4.
The Executive Management contracts are based on normal conditions.
The CFO position was not included in Executive Management in 2020
4. Staff costs CONTINUED
| Annual report 2021 Page 80
5.4 Consolidated notes
5. Share-based payment, warrants
Accounting policy
Plans classified as equity-settled warrants are measured at fair value at grant date and are recognized in the income statement as staff costs in the period in
which the final entitlement to the warrants is attained (the vesting period), as well as an inflow directly in equity.
In connection with initial recognition of warrants, an estimate is made of the number of warrants to which Group Executive Management and key staff are
expected to become entitled. Subsequent adjustment is made for changes in the estimate of the number of warrant entitlements, so the total recognition is
based on the actual number of warrant entitlements.
The fair value of the warrants allocated is estimated by means of the Monte Carlo model. The calculation takes into account the terms and conditions under
which the share warrants are allocated.
In 2016, 2017 and 2021, respectively, the Executive Management and other key employees in the Group have been granted warrants to purchase a total of 350,000 shares in
the company at a set price (strike price). The share-based programme has vesting conditions under which Management must stay employed for three years to receive the
remuneration. The following exercise period runs for two years.
Warrants granted in 2016 and 2017 have fully vested on 31 December 2021.
| Annual report 2021 Page 81
5.4 Consolidated notes
The recognized fair value of warrants in the consolidated income statement amounts to DKK 506k (cost) (2020: -549k, income).
The calculation of the fair value of warrants at the time of allocation is based on the following assumptions:
5. Share-based payment, warrants CONTINUED
* The expected volatility is based on the historical volatility of SKAKO shares in the preceding 36 months for the 2016 and 2017 programme. For the 2021 programme, the preceding
48 months have been used
** The expected future dividend at the time of granting
Total warrants
Granted
Strike price
(all)
Execise
period starts
Granted
Strike price
(all)
Granted
Strike price
(all)
Total
Warrants granted 150,000
55,60 April 2024 100,000 90,39 March 2020 100,000 72,35 July 2019
Executive management 110,000 60,000 60,000 230,000
- hereof forfeited -30,000 -40,000 -40,000 -110,000
Total Executive Management 80,000 20,000 20,000 120,000
Other employees 40,000 40,000 40,000 120,000
- hereof forfeited 0,000 -5,000 -5,000 -10,000
Total other employees 40,000 35,000 35,000 110,000
Number of warrant entitlements 120,000 55,000 55,000 230,000
2017 warrants
2016 warrants
2021 warrants
Granted 22 March 2021 Granted 30 March 2017 Granted 18 July 2016
Average price per share 55,6 78,0
62,5
Annual hurdle rate 0% 5% 5%
Strike price per share 55,6
90,39 72,35
Expected volatility* 33,5% 43,96%
42,61%
Expected dividends**
4,1% 0 0
Cost of equity 7,00%
Risk-free interest rate -0,56%
-0,53%
Number of shares allocated 150,000 100,000
100,000
Fair value per warrant, DKK 16,90 18,84 14,52
Total fair value, DKK thousands 2,535 1,884 1,452
| Annual report 2021 Page 82
5.4 Consolidated notes
6. Fee to parent company auditors appointed
at the annual general meeting
In addition to the statutory audit, PwC, the Group auditors appointed at the Annual General Meeting,
provides other assurance engagements and other consultancy services to the Group.
A few Group enterprises are not audited by the Parent’s appointed auditors (PwC) or the auditors’ foreign affiliates.
The fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to the
Group amounts to DKK 0.1m (2020: DKK 0.3m) and consists of tax, VAT and accounting advisory.
DKK Thousands 2021 2020
PwC
Statutory audit 687 932
Other assurance engagements 0 35
Tax and indirect taxes consultancy 13 5
Other services 107 257
Other audit firms
806 1,229
Statutory audit 199 221
Other assurance engagements 0 0
Tax and indirect taxes consultancy 139 121
Other services 40 70
379 412
| Annual report 2021 Page 83
5.4 Consolidated notes
7. Net financial items
Accounting policy
Net financial items mainly consist of interest income and interest expenses and also include interest on lease debt as well as realized and unrealized foreign
exchange gains and losses. Interest income and interest expenses are accrued based on the principal amount and the effective interest rate.
The effective interest rate is the discount rate used for discounting expected future payments attaching to the financial asset or financial liability in order for the
present value to match the carrying amount of such asset or liability.
DKK
Thousands 2021 2020
Interest
on cash and bank deposits 210 312
Financial
income from financial assets not measured at fair value in the income statement 210 312
Foreign
exchange gains, net 511 149
Financial
income 721 461
Interest
on bank debt (1,205) (884)
Interest
on lease debt (161) (252)
Financial
expenses on financial liabilities not measured at fair value in the income statement (1,366) (1,136)
Foreign
exchange losses, net (239) (1,014)
Other
financial expenses (4,022) (1,395)
Financial
expenses (5,627) (3,545)
Net
financial items (4,906) (3,084)
| Annual report 2021 Page 84
5.4 Consolidated notes
8. Tax on profit for the year
Accounting policy
Tax for the year comprises current tax and changes in deferred tax and is recognized in the Income Statement with the share attributable to the profit for the
year, and in the other comprehensive income with the share attributable to items recognized in other comprehensive income. Exchange rate adjustments of
deferred tax are included as part of the year’s adjustments of deferred tax.
Current tax comprises tax calculated on the basis of the expected taxable income for the year using the applicable tax rates for the financial year and any
adjustments of taxes for previous years.
DKK
Thousands 2021 2020
Current
tax on the profit for the year (1,698) (454)
Adjustment
of current tax, prior years (147) -
Change
in deferred tax (1,370) (773)
Adjustment
of deferred tax, prior years 987 -
Impact
on changes in corporate tax rates - -
Tax
for the period, net income (2,228) (1,228)
Tax
using the Danish corporate tax rates (3,857) (3,110)
Effect
of tax rates in foreign jurisdictions (79) (107)
Impact
in changes in corporate tax rates - -
Tax
assets not capitalized - -
Tax
assets not previously capitalized 2,234 3,513
Permanent
and temporary differences and other items (526) (1,524)
(2,228) (1,228)
| Annual report 2021 Page 85
5.4 Consolidated notes
9. Earnings per share (EPS)
Accounting policy
Earnings per share (EPS) and diluted earnings per share (EPS, diluted) are measured according to IAS 33. Non-diluted earnings per share are calculated as the
profit for the year divided by the total average number of shares outstanding during the year (shares issued adjusted for treasury shares).
Diluted earnings per share are calculated as profit for the year divided by the average number of shares issued.
DKK
Thousands 2021 2020
Earnings
Profit
for the year 13,189 10,859
Number
of shares, average
Number
of shares issued 3,106,418 3,106,418
Adjustment
for treasury share (22,567) (22,567)
Average
number of shares 3,083,851 3,083,851
Earnings
per share (EPS) 4.28 3.52
Earnings
per share, diluted 4.28 3.52
As of 31 December 2021, SKAKO’s nominal share capital was 31,064,180 DKK divided into 3,106,418 shares of 10 DKK each. All shares are of the same class and
carry one vote each.
Treasury shares represent 0.73% of number of shares issued.
*) A not significant accounting mistake in 2020 could disturb year-on-year comparisons and therefore comparative figures for 2020 have been restated, as described in note 25
| Annual report 2021 Page 86
5.4 Consolidated notes
10. Intangible assets
Accounting policy
Amortization of completed development projects is charged on a straight-
line basis during their estimated useful life. Development projects are
written down for impairment to recoverable amount, if lower. Development
projects in progress are tested for impairment once a year.
The amortization profile is systematically based on the expected useful life
of the assets, taking into account the remaining agreement period and
consumption (unit of production method) at the time of implementation.
The basis of amortization is reduced by impairment, if any.
Amortization takes place systematically over the estimated useful life of the
assets which is as follows:
• Development costs, 2-10 years
• Software systems, 2-10 years
• Other intangible assets, 3-5 years
On initial recognition, goodwill is recognized and measured as the
difference between the purchase price – including the value of non-
controlling interests in the acquired enterprise and the fair value of any
existing investment in the acquired enterprise – and the fair values of the
acquired assets, liabilities and contingent liabilities. Please refer to
Accounting policies in Note 20.
On recognition, goodwill is allocated to corporate activities that generate
independent payments (cash generating units). The definition of a cash-
generating unit is in line with the Group’s managerial structure as well as
the internal financial management reporting.
Intangible assets with a finite useful life are measured at cost less
accumulated amortization and impairment losses. Goodwill is not
amortized but is tested for impairment at least once a year. If the
recoverable amount of a cash-generating unit is lower than the carrying
amounts of property, plant and equipment and intangible assets including
goodwill, attributable to the particular cash generating unit, the particular
assets will be written down.
Development projects for which the technical rate of utilization, sufficient
resources and a potential future market or application in the Group can be
demonstrated and which are intended to be manufactured, marketed or
used are recognized as completed development projects. This requires
that the cost can be determined, and it is sufficiently certain that the
future earnings or the net selling price will cover production, sales and
administrative costs plus the development costs. Other development
costs are recognized in the income statement when the costs are
incurred. Development costs consist of salaries and other costs that are
directly attributable to development activities.
| Annual report 2021 Page 87
5.4 Consolidated notes
Significant estimate by Management
Impairment testing is carried out annually on preparation of the annual report or on indication of impairment in which discounted values of future cash flows
are compared with carrying amounts. The calculations use cash flow projections based on financial budgets approved by Management covering a five-year
period.
Cash flows beyond the five-year period are extrapolated using growth rates estimated by Management.
Goodwill
Other intangible
assets
Intangible assets
under development
Development
projects
Software Total
Cost
at 1 January 2021 25,440 4,426 2,226 808 27,331 60,231
Foreign
exchange adjustments - - - 10 (3) 7
Investments
- - 2,441 150 882 3,473
Disposals
- - - - (603) (603)
Transferred
between categories - - (1,554) 490 1,064 -
Cost
at 31 December 2021 25,440 4,426 3,113 1,458 28,671 63,108
Amortisation
and impairment
1
January 2021
- 674 - 178 18,192 19,044
Foreign
exchange adjustment - - - - (61) (61)
Disposals
- - - - (603) (603)
Amortisation
- 1,097 - 115 1,335 2,547
Amortisation
and impairment
31
December 2021
- 1,771 - 293 18,863 20,927
Carrying
amount 31 December 2021 25,440 2,655 3,113 1,165 9,808 42,181
DKK Thousands
10. Intangible assets CONTINUED
| Annual report 2021 Page 88
5.4 Consolidated notes
Goodwill
Other intangible
assets
Intangible assets
under development
Development
projects
Software Total
Cost at 1 January 2020 29,399 2,840 4,828 567 23,740 61,374
Foreign exchange adjustments - - (7) - (11) (18)
Investments 3,145 1,586 698 140 1,892 7,461
Revaluation according to IFRS 3 (see below) (7,104) - - - (7,104)
Disposals - - - (39)
(1,443)
(1,482)
Transferred between categories - - (3,293) 140 3,153 -
Cost at 31 December 2020 25,440 4,426 2,226 808 27,331 60,231
Amortisation and impairment at 1
January 2020
- - - 138 18,673 18,811
Foreign exchange adjustment - - - - (15) (15)
Disposals - - - (39) (1,443) (1,482)
Amortisation - 674 - 79 977
1,730
Amortisation and impairment at 31
December 2020
- 674 - 178 18,192 19,044
Carrying amount at 31 December 2020 25,440 3,752 2,226 630 9,139 41,187
DKK Thousands
10. Intangible assets CONTINUED
| Annual report 2021 Page 89
5.4 Consolidated notes
DKK Thousands 2021 2020
Depreciation is included in the items:
Production costs 1,782 1,211
Distribution costs 636 432
Administrative costs 129 87
2,547 1,730
Impairment test of goodwill:
The carrying amount of goodwill related to Dartek, DKK 22,294k, and Conparts
ApS, DKK 3,145k.
Conparts
Goodwill for Conparts have been tested for impairment on 31 December 2021
based on value in use. Net cash flows for the years 2022-2026 are determined on
the basis of key assumptions and estimates based on growth and profit margin
expectations in accordance with SKAKO's business plans. The discount rate used
amounts to 8.0% before tax and estimates for future revenue growth (2020: 8.0%
before tax). The uncertainties associated with these expectations are reflected in
the cash flow. The valuation method is based on annual revenue growth of 2% in
2022 to 2026 as well as in the terminal period. The test did not result in any
impairment of the carrying amounts related to the cash generating units
Conparts.
A sensitivity analysis has not been carried out, as negative changes in the
fundamental assumption, which will result in impairment of goodwill, are
considered unlikely to become a reality.
10. Intangible assets CONTINUED
Dartek
Goodwill for Dartek have been tested for impairment on 31 December 2021
based on value in use. Net cash flows for the years 2022-2026 are determined on
the basis of key assumptions and estimates based on growth and profit margin
expectations in accordance with SKAKO's business plans. The discount rate used
amounts to 8.0% before tax and estimates for future revenue growth
(2020: 8.0%
before tax). The uncertainties associated with these expectations are reflected in
the cash flow. The valuation method is based on annual revenue growth of 2% in
2022 to 2026 as well as in the terminal period. The test did not result in any
impairment of the carrying amounts related to the cash generating units Dartek.
A sensitivity analysis has not been carried out, as negative changes in the
fundamental assumption, which will result in impairment of goodwill, are
considered unlikely to become a reality.
| Annual report 2021 Page 90
5.4 Consolidated notes
11. Tangible assets
Land and buildings, plant and machinery and other facilities, operating equipment and tools and equipment are measured at cost less accumulated
depreciation and impairment losses.
Depreciation is charged on a straight-line basis over the estimated useful life of the assets until they reach the estimated residual value.
Estimated useful life is as follows:
• Buildings, 10-40 years
• Plant and machinery, 3-10 years
• Operating equipment and other tools and equipment, 3-10 years
• Leasehold improvements, 3-10 years
• Land not depreciated
Newly acquired assets are depreciated from the time they are available for use.
Accounting policy
| Annual report 2021 Page 91
5.4 Consolidated notes
Land & buildings
Plant &
machinery
Operating equipment,
fixtures and fittings
Leasehold
improvements
Tangible assets
in course of
construction
Total
Cost 1 January 2021 8,023 12,151 15,945 4,766 454 41,339
Foreign exchange adjustments (2) 72 (43) 2 - 29
Investments 126 439 1,231 1,162 37 2,995
Disposals - (104) (3) - (394) (501)
Cost at 31 December 2021 8,147 12,558 17,130 5,930 97 43,862
Depreciation and impairment
1 January 2021
2,035 11,344 13,036 4,238 - 30,653
Foreign exchange adjustments - 65 391 2 - 458
Disposals - (104) - - - (104)
Depreciation 280 200 644 60 - 1,184
Depreciation and impairment
31 December 2021
2,315 11,505 14,071 4,300 - 32,
191
Carrying amount 31 December 2021 5,832 1,053 3,059 1,630 97 11,671
DKK Thousands
11. Tangible assets CONTINUED
| Annual report 2021 Page 92
5.4 Consolidated notes
Land & buildings
Plant &
machinery
Operating equipment,
fixtures and fittings
Leasehold
improvements
Tangible assets
in course of
construction
Total
Cost
1 January 2020 16,228 13,423 18,670 4,470 60 52,851
Foreign
exchange adjustments (81) 7 (47) (2) - (123)
Investments
632 402 402 298 394 2,128
Disposals
(8,756) (1,681) (3,080) - - (13,517)
Cost
31 December 2020 8,023 12,151 15,945 4,766 454 41,339
Depreciation
and impairment 1 January
20
20
10,584 12,913 15,228 4,202 - 42,927
Foreign
exchange adjustments (43) (28) (53) (3) - (127)
Disposals
(8,756) (1,681) (3,080) - - (13,517)
Amortization
250 140 941 39 - 1,370
Depreciation
and impairment 31
December
2020
2,035 11,344 13,036 4,238 - 30,653
Carrying
amount 31 December 2020 5,988 807 2,909 528 454 10,686
DKK Thousands
DKK
Thousands 2021 2020
Depreciation
is included in the items:
P
roduction costs 829 959
Distribution
costs 296 343
Administrative
costs 59 68
1,184 1,370
11. Tangible assets CONTINUED
| Annual report 2021 Page 93
5.4 Consolidated notes
12. Leases – right-of-use assets
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of
the following lease payments:
• Fixed payments, less any lease incentives receivable.
• Variable lease payment that are based on an index or a rate, initially measured using the index or rate as the commencement date.
• Amounts expected to be payable by the Group under residual value guarantees.
• The exercise price of a purchase option if the Group is reasonably certain to exercise that option.
• Payments of penalties for terminating the lease if the lease term reflects the Group exercising that option.
The lease payments are discounted using the interest rate for implicit in the lease. If that rate cannot be readily determined, which is generally the case for
leases in the Group., the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to
obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
• The amount of the initial measurement of lease liability.
• Any lease payments made at or before the commencement date less any lease incentives received.
• Any initial direct cost and restoration cost.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. While the Group revalues its
land and buildings that are presented within property, plant and equipment, it has chosen not to do so for the right-of-use buildings held by the Group.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in
profit or loss. Short-term leases are leased with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture.
Accounting policy
| Annual report 2021 Page 94
5.4 Consolidated notes
Lease assets Rental of promises Equipment Company cars Total
Costs 1 January 2021 8,418 809 6,291 15,518
Additions - - 3,172 3,172
Disposals - - (1,545) (1,545)
Exchange rate adjustment (5) - (4) (9)
Costs 31 December 2021 8,413 809 7,914 17,136
Depreciation and impairment loss 1 January 2021 1,673 105 3,866 5,644
Depreciation 1,584 59 2,048 3,691
Depreciation reversed on disposals - - (233) (233)
Exchange rate adjustment - - (1) (1)
Depreciation and impairment loss 31 December 2021 3,257 164 5,680 9,101
Carrying amount 31 December 2021 5,156 645 2,234 8,035
DKK Thousands
Lease assets Rental of promises Equipment Company cars Total
Costs 1 January 2020 6,998 766 5,812
13,576
Additions 2,217 43 1,472
3,732
Transferred between categories 245 - (245)
-
Disposals (1,034) - (739)
(1,773)
Exchange rate adjustment (8) - (9)
(17)
Costs 31 December 2020
8,418 809 6,291 15,518
Depreciation and impairment loss 1 January 2020
908 45 2,202 3,155
Depreciation 1,800 60 1,910 3,770
Depreciation reversed on disposals (1,034) - (238) (1,272)
Exchange rate adjustment (1) - (8) (9)
Depreciation and impairment loss 31 December 2020 1,673 105 3,866 5,644
Carrying amount 31 December 2020 6,745 704 2,425 9,874
DKK Thousands
12. Leases – right-of-use assets CONTINUED
| Annual report 2021 Page 95
5.4 Consolidated notes
Lease liabilities – DKK Thousands 2021 2020
Lease liabilities are recognized in the balance sheet as follows:
Non-current liabilities 5,611 6,556
Current liabilities 2,845 3,346
Total lease liabilities 8,456 9,902
Recognized in the profit and loss statement:
Interest expenses related to lease liabilities 177 252
Expense relating to short-term leases (included in cost of goods sold and administrative expenses) 1,893 2,984
Expense relating to leases of low-value assets that are not shown above as short-term leases - -
Expense relation to variable lease payments not included in lease liabilities - -
Cash
flow from leasing – DKK Thousands 2021 2020
Interests
(177) (252)
Liabilities
payment (3,289) (3,677)
Adjustments
in total according to leases (3,466) (3,929)
12. Leases – right-of-use assets CONTINUED
| Annual report 2021 Page 96
5.4 Consolidated notes
13. Deferred tax
Deferred tax is calculated using the balance sheet liability method on temporary differences between the carrying amounts for financial reporting purposes
and the amounts used for taxation purposes. Deferred tax is calculated based on the applicable tax rates for the individual financial years. The effect of
changes in the tax rates is stated in the income statement unless they are items previously entered in the statement of other comprehensive income.
A deferred tax provision is made to cover re-taxation of losses in foreign enterprises if shares in the enterprises concerned are likely to be sold and to cover
expected additional future tax liabilities related to financial year or previous years. No deferred tax liabilities regarding investments in subsidiaries are
recognized if the shares are unlikely to be sold in the short term.
The tax value of losses that are expected with adequate certainty to be available for utilization against future taxable income in the
same legal tax unit and jurisdiction is included in the measurement of deferred tax.
SKAKO A/S is jointly taxed with all Danish subsidiaries, SKAKO A/S being the administrator of the Danish joint taxation.
All the Danish subsidiaries provide for the Danish tax based on the current rules with full distribution. Recognition of deferred tax assets and tax liabilities is
made in the individual Danish enterprises based on the principles described above. The jointly taxed Danish enterprises are included in the Danish tax payable on
account scheme.
If companies in the Group have deferred tax liabilities, they are valued independently of the time when the tax, if any, becomes payable.
Significant estimate by Management
Deferred tax assets, including the tax value of tax losses allowed for carry forward, are recognized in the balance sheet at the estimated realisable value of
such assets, either by a set-off against a deferred tax liability or by a net asset to be set off against future positive taxable income. At the balance sheet date,
an assessment is made as to whether it is probable that sufficient taxable income will be available in the future against which the deferred tax asset can be
utilized. Deferred tax on temporary differences between the carrying amounts and the tax values of investments in subsidiaries is recognized unless the Parent
is able to control the time of realization of such deferred tax, and it is probable that such deferred tax will not be realized as current tax in the foreseeable
future. Deferred tax is recognized in respect of eliminations of intra-Group profits and losses.
Accounting policy
| Annual report 2021 Page 97
5.4 Consolidated notes
DKK Thousands 2021 2020
Deferred tax recognized in the balance sheet:
Deferred tax assets 21,057 20,997
Deferred tax liabilities - -
Deferred tax, net 31 December 21,057 20,997
Deferred tax, net 1 January 20,997 21,770
Foreign currency translation adjustments - -
Changes in deferred tax 60 (773)
Deferred tax, net 31 December 21,057 20,997
Deferred tax:
Intangible assets (1,094) 477
Property, plants and equipment 9,587 10,327
Inventories (273) 256
Provisions 1,971 1,186
Tax losses 13,333 14,083
Other items (2,467) (5,332)
21,057 20,997
Deferred tax assets not recognized:
Intangible assets - 74
Property, plants and equipment 205 131
Inventories - -
Other items 121 -
Tax losses 26,324 28,064
26,
650 28,269
Tax losses carried forward are not subject to time limitation. All recognized deferred tax assets are expected to be offset against positive taxable income within a five-year
period. Recognition is based on current results and Management’s expectations for the future. The deferred tax assets are evaluated in each joint taxation in the SKAKO
Group, consisting of joint taxations in respectively Denmark, France, Germany, Spain, the USA and the UK.
Management has performed a sensitivity analysis on expectations for the future. This shows that a 10 % decrease compared to expectations will result in a decrease of DKK
2.0m in the recognized deferred tax assets. Because the deferred tax assets are evaluated in each joint taxation, the sensitivity cannot be applied on a linear basis.
13. Deferred tax CONTINUED
| Annual report 2021 Page 98
5.4 Consolidated notes
14. Inventory
Accounting policy
Raw materials, work-in-progress and goods for resale are measured at cost according to the FIFO principle (according to which the most recently purchased
items are considered to be in stock) or at their net realizable value, whichever is lower.
Group-manufactured products and work in progress are measured at the value of direct cost, direct payroll costs, consumables and a proportionate share of
indirect production costs (IPO), which are allocated on the basis of the normal capacity of the production facility. IPO include the proportionate share of
capacity costs directly relating to Group-manufactured products and work in progress.
Inventory – DKK Thousands 2021 2020
Raw materials and consumables 14,854 15,420
Work-in-progress 7,111 4,327
Finished goods and goods for resale 42,115 33,330
Inventories net of write-downs at 31 December 64,080 53,077
Included in Income Statement under production costs:
Write-down of inventories for the year, net
Costs of goods sold during the year
(391)
169,446
587
159,343
Write-downs for the year are shown net as breakdown into reversed write-downs, and new write-downs are not possible.
| Annual report 2021 Page 99
5.4 Consolidated notes
15. Contract assets and liabilities
Accounting policy
Revenue is recognized based on the value of the work completed at the balance sheet date. The revenue corresponds to the sales value of the year’s
completed work based on costs incurred as a percentage of the total estimated costs (percentage of completion method).
The stage of completion for the individual project is calculated as the ratio between the cost incurred at the balance sheet date and the total estimated cost to
complete the project. In some projects, where cost estimates cannot be used as a basis, the ratio between completed sub-activities and the total project is
used instead. All direct and indirect costs that relate to the completion of the contract are included in the calculation.
When invoicing on account exceeds the value of the work completed, the liability is recognized as a contract liability under short-term liabilities.
If projects are expected to be loss-making, the loss is recognized immediately in the income statement. Costs not yet incurred are provided for as other
provisions. Provisions are based on individual assessment of the estimated loss until the projects have been completed.
Significant assessment by Management
Total expected costs related to work-in-progress for third parties are partly based on estimates as they include provisions for unforeseen cost deviations in
future supplies of raw materials, subcontractor products and services plus construction and handing over. Provisions for warranties on work-in-progress for
third parties are based on Management estimates for each project while taking contract obligations into account.
| Annual report 2021 Page 100
5.4 Consolidated notes
DKK Thousands 2021 2020
Total costs incurred 133,466 170,724
Valuation after IFRS 9 (note 18) (134) (126)
Profit recognized as income, net 32,237 47,140
Contract assets 165,569 217,738
Contract liabilities (132,294) (157,413)
Net contract assets and liabilities 33,275 60,325
Of which contract assets are stated under assets 53,037 66,376
and contract liabilities (19,762) (6,051)
Net contract assets and liabilities 33,275 60,325
Contract assets and liabilities consist of all open projects on 31 December including cost and profit recognized in prior years.
The majority of all contract assets and liabilities on 31 December are expected to be revenue recognized in 2022.
15. Contract assets and liabilities CONTINUED
| Annual report 2021 Page 101
5.4 Consolidated notes
16. Bank loans and credit facilities
Accounting policy
Debt to credit institutions is recognized at the date of borrowing at the proceeds received less transaction costs. For subsequent periods, financial liabilities are
measured at amortized cost in order for the difference between proceeds and the nominal value to be recognized as a financial expense over the term of the
loan.
2021 0-1 year 1-5 years
More than 5
Total
Carrying
Weighted average
years amount effective interest rate
Cash and cash equivalents 39,075 - - 39,075 39,075 0.0%
Assets 39,075 - - 39,075 39,075 0.0%
Lease debt (2,845) (5,611) - (8,456) (8,456) 2.4%
Other debt (9,849) - - (9,849) (9,849) 0.0%
Debt to credit institutions - (11,787) - (11,787) (11,787) 0.4%
Short term bank facilities (35,970) - - (35,970) (35,970) 2.3%
Liabilities (48,664)
(17,398) - (66,062) (66,062) 1.1%
Net debt (9,589) (17,398) - (26,987) (26,987) 1.1%
DKK Thousands
| Annual report 2021 Page 102
5.4 Consolidated notes
DKK Thousands
More than 5
2020 0-1 year 1-5 years Total
Carrying
Weighted average
years amount effective interest rate
Cash and cash equivalents 33,420 - - 33,420 33,420 0.0%
Assets 33,420 - - 33,420 33,420 0.0%
Lease debt (3,346) (6,556) - (9,902) (9,902) 2.4%
Other debt (10,118) (4,747) - (14,865) (14,865) 0.0%
Debt to credit institutions - (17,579) - (17,579) (17,579) 0.4%
Short term bank facilities (31,261) - - (31,261) (31,261) 2.3%
Liabilities (44,725) (28,882) - (73,607) (73,607) 1.1%
Net debt (11,305) (28,882) - (40,187) (40,187) 1.1%
Based on the Group’s net debt at the end of the 2021 financial year, a rise of 1 percentage point in the general interest rate level will cause a decrease in consolidated
annual earnings after tax and equity of approx. DKK 266k (DKK 380k in 2020).
Cash management
SKAKO is committed to maintaining a flexible capital structure. On 31 December 2021, SKAKO had undrawn committed credit facilities in the amount of DKK 12,342 (2020:
DKK 21,150k). On 31 December 2021, SKAKO had ‘cash and cash equivalents’ and ‘bank overdraft’, net of DKK 3,105k (2020: DKK 2,159k).
Capital management
SKAKO monitors capital on the basis of the net debt relative to EBITDA. At the end of the year, the net debt to EBITDA ratio was equity ratio was 1.0 (2020: 1.7).
SKAKO has a medium-term goal of a net debt to EBITDA ratio below 2.5.
16. Bank loans and credit facilities CONTINUED
| Annual report 2021 Page 103
5.4 Consolidated notes
17. Provisions
Accounting policy
Provisions are recognized when the Group, due to an event occurring before or at the balance sheet date, has a legal or constructive obligation and it is
probable that financial benefits must be waived to settle the obligation. Provisions are measured according to Management’s best estimate of the amount
whereby the obligation is expected to be settled.
Provisions for warranty claims are estimated on a project-by-project basis based on historically realized cost related to claims in the past. The provision covers
estimated own costs of completion, subsequent warranty supplies and unsettled claims from customers or subcontractors.
Provisions regarding disputes and lawsuits are based on Management’s assessment of the likely outcome settling the cases based on the information at hand
at the balance sheet date.
Significant assessment by Management
Management assesses provisions and the likely outcome of pending and probable lawsuits, etc. on an on-going basis. The outcome depends on future events,
which are uncertain by nature. In assessing the likely outcome of lawsuits, etc., Management bases its assessment on internal and external legal assistance and
established precedents.
Warranties and other provisions are measured on the basis of empirical information covering several years. Together with estimates by Management of future
trends, this forms the basis for warranty provisions and other provisions. Long-term warranties and other provisions discounted to net present value takes
place based on the future cash flow and discount rate expected by Management.
| Annual report 2021 Page 104
5.4 Consolidated notes
DKK
Thousands 2021
Warranties Other provisions Total
Provisions
at 1 January 3,439 1,861 5,300
Foreign
exchange adjustments 5 (3) 2
Additions
1,426 4,143 5,569
Used
(1,143) (1,859) (3,002)
Reversals
(700) - (700)
Provisions
at 31 December 3,027 4,142 7,169
The
maturity of provisions is specified as
follows:
Current liabilities
2,034 1,695 3,729
Non
-current liabilities 993 2,447 3,440
3,027 4,142 7,169
DKK Thousands 2020
Warranties Other provisions Total
Provisions at 1 January 3,249 2,317 5,566
Foreign exchange adjustments (16) (10) (26)
Additions 2,166 - 2,166
Used (1,960) (446) (2,406)
Reversals - - 0
Provisions at 31 December 3,439 1,861 5,300
The maturity of provisions is specified as
follows: Current liabilities
1,959 38 1,997
Non-current liabilities 1,480 1,823 3,303
3,439 1,861 5,300
Provisions for warranty covers a 1-3-year warranty period.
Other provisions relate to provisions for disputes, etc. and are essentially expected to be applied within the next five years.
17. Provisions CONTINUED
| Annual report 2021 Page 105
5.4 Consolidated notes
18. Adjustments, consolidated cash flow statement
DKK Thousands 2021 2020
Amortisation and deprivation 7,421 6,870
Change in provisions 1,869 (265)
Financial items received and paid 4,906 3,084
Other 506 (577)
14,702 9,112
DKK Thousands 2021 2020
Borrowings 1 January 73,607 58,925
Repayments (13,725) (8,382)
Other adjustments - (7,104)
New borrowings 6,423 30,320
Currency adjustments (243) (152)
Borrowings 31 December 66,062 73,607
Adjustments
Change in borrowings and short-term credit facilities
| Annual report 2021 Page 106
5.4 Consolidated notes
19. Exchange rate, liquidity and credit risks
Accounting policy
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past
due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of
contracts. The Group has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the
contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before 31 December 20210 and the corresponding historical
credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic
factors affecting the ability of the customers to settle the receivables.
Trade receivables and contract assets are written down when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of
recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a
period of longer than 120 days past due.
Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts
previously written down are credited against the same line item.
Risk management activities in the SKAKO Group mainly focus on financial risks to which the Company is fairly likely to be exposed. In connection with the preparation of
the Group’s strategic, budgetary and annual plans, the Board of Directors considers the risks identified in these activities.
Financial risks
Financial risk management concentrates on identifying risks in respect of exchange rates, credit and liquidity with a view to protecting the Group against potential losses and
ensuring that Management’s forecasts for the current year are only to a limited extent affected by changes or events in the surrounding world – be the changes
in exchange rates or in interest rates. It is Group policy to exclusively hedge financial risks arising from our commercial activities and not to undertake any financial
transactions of a speculative nature.
Exchange rate risks
With more than 90% of the Group’s sales being invoiced in foreign currencies, primarily EUR, reported revenue is affected by movements in the Group’s trading
currencies. The Group seeks to hedge against such exchange rate risks by seeking to match positive and negative cash flows in the main currencies as much as
possible.
| Annual report 2021 Page 107
5.4 Consolidated notes
Below is a sensitivity analysis in respect of exchange rates, given a positive change of 5% in the currencies with the highest exposures. We do not consider a currency risk
on EUR. The estimate has been provided on a non-hedged basis.
Liquidity risk
The Group aims at having sufficient cash resources to be able to take appropriate steps in case of unforeseen fluctuations in cash outflows. We
have access to suitable undrawn credit facilities and the liquidity risk is therefore considered to be low.
Credit risks
The Group’s credit risks relate primarily to trade receivables and contract assets. For large projects we have a signed Letter of Credit from the customer’s bank before we
undertake any work. Our remaining customer base is fragmented so credit risks in general only involve minor losses on individual customers.
Overall, we therefore estimate that we have no major credit exposure on Group level. The maximum credit risk relating to receivables matches the carrying amount of
such receivables. All trade receivables are considered to be paid within one year
Trade receivables can be allocated as follows:
The Group has two types of financial assets that are subject to the expected credit loss model:
• Trade receivables from contracts with customers
• Contract assets from plant sales
DKK Thousands
Net position Change in currency
2021: Potential impact on 2020: Potential impact on
P/L and Equity P/L and equity
EUR
15,079 0% 0 1,591
USD
7,231 5% 362 660
GBP
2,040 5% 102 287
MAD
21,648 5% 1,082 375
DKK Thousands
2021 2020
Europe 58,283 46,780
The USA 5,988 7,830
Africa 4,402 18,345
Other 18,756 484
87,429 73,439
19. Exchange rate, liquidity and credit risks CONTINUED
| Annual report 2021 Page 108
5.4 Consolidated notes
While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial. The
loss allowance as at 31 December 2021 and 31 December 2020 was determined as follows for both trade receivables and contract assets:
31 December 2021 – DKK Thousands
The closing loss allowances for trade receivables and contract assets as at 31 December 2021 reconcile to the opening loss allowances as follows:
Not Due Due 0-30 days
Due 31-120
Due 121-365 Due more than
Total
days days 1 year
Expected loss rate 0.1% 0.4 % 1.0% 1.9% 100.0%
Gross carrying amount – trade receivables 81,551 5,889 495 580 2,015 90,530
Gross carrying amount – contract assets 52,897 0 0 0 0 52,897
Loss allowance 134 26 5 11 2,015 2,191
31 December 2020 – DKK Thousands
Not Due Due 0-30 days
Due 31-120 Due 121-365 Due more than
Total
days days 1 year
Expected loss rate 0.1% 0.1 % 1.0% 5.0% 53.3%
Gross carrying amount – trade receivables 59,769 5,613 7,271 335 1,171 74,159
Gross carrying amount – contract assets 66,502 0 0 0 0 66,502
Loss allowance 126 6 73 17 624 846
2021 2020 2021 2020
1 January – calculated under IFRS 9 126 237 720 1,786
Increase in loan loss allowance recognized in profit or loss during
the year
134 126 2,057 720
Receivables written off during the year as uncollectible 0 0 0 (135)
Unused amount reversed (126) (237) (720) (1,651)
At 31 December 134 126 2,057 720
DKK Thousands
Contract assets Trade receivables
19. Exchange rate, liquidity and credit risks CONTINUED
| Annual report 2021 Page 109
5.4 Consolidated notes
20. Acquisitions
The acquisition date is the date when the SKAKO effectively obtains control of an acquired subsidiary.
The cost of a business combination comprises the fair value of the consideration agreed upon including the fair value of consideration contingent on future
events.
Goodwill and fair value adjustments in connection with the acquisition of a foreign entity with a functional currency other than SKAKO’s presentation currency
(DKK) are treated as assets and liabilities belonging to the foreign entity and translated into the foreign entity’s functional currency at the exchange rate at the
transaction date.
The acquired entities’ identifiable assets, liabilities and contingent liabilities are measured at fair value at the acquisition date.
Identifiable intangible assets are recognized if they are separable or arise from a contractual right. Deferred tax on revaluations is recognized.
The identifiable assets, liabilities and contingent liabilities on initial recognition at the acquisition date are subsequently adjusted up until 12 months after the
acquisition. The effect of the adjustments is recognized in the opening balance of equity, and the comparative figures are restated accordingly if the amount is
material.
Except in cases of material error, changes in estimates of contingent purchase considerations are recognized in the income statement under financial items,
unless they qualify for recognition directly in equity.
Accounting policy
| Annual report 2021 Page 110
5.4 Consolidated notes
Significant assessment by Management
Purchase price allocation
For acquisitions of entities, the assets, liabilities and contingent liabilities of the acquiree are recognized using the acquisition method. The most significant
assets acquired generally comprise goodwill, customer agreements and portfolios, property, plant and equipment, receivables and inventories.
No active market exists for the majority of the acquired assets and liabilities, in particular in respect of acquired intangible assets. Accordingly, Management
makes estimates of the fair value of acquired assets, liabilities and contingent liabilities. Depending on the nature of the item, the determined fair value of an
item may be associated with uncertainty and possibly adjusted subsequently.
The unallocated purchase price (positive amount) is recognized in the statement of financial position as goodwill and allocated to the Group’s cash generating
units. Management makes estimates of the acquired cash generating units, the cash generating units that already exist in the Group and the allocation of
goodwill.
On 1 November 2020, SKAKO gained control over Conparts ApS (Faaborg, Denmark) through the acquisition of 100% of the shares.
The calculated goodwill represents staff know-how that SKAKO expects to utilize in the existing business.
Transactions costs related to the acquisition of Conparts amounts to DKK 0.4m where all has been recognized in 2020. Transaction costs have been recognized in the
income statement under administrative costs.
The purchase price allocation of the fair value of identified assets, liabilities and contingent liabilities is ongoing. Adjustments are therefore expected to be made to
several items in the opening balance, including immaterial assets and goodwill. The accounting treatment of the acquisition will be completed within the 12-month
period from the acquisition date required by IFRS 3. Because of the nature of the contingent liability, as described below, it is not possible to estimate a completely
accurate purchase price currently.
Purchase price allocation
Management believes that the purchase price for Conparts accounted for in the consolidated financial statements reflects the best estimate of the total fair value of the
business and the proportionate value of identified assets, liabilities, and accordingly the allocation of goodwill.
Financial impact of acquisition
Revenue and net profit included in the consolidated financial statements since the acquisition was DKK 0.0m and DKK 0.0m respectively.
20. Acquisitions CONTINUED
| Annual report 2021 Page 111
5.4 Consolidated notes
The price paid for Conparts ApS is fixed at DKK 5.5m with an upfront payment of DKK 1.5m, and the remaining amount (contingent consideration) over a five year period until 2025. The fair value of the contingent consideration is based on a level
3 fair value calculation.
DKK
Thousands
2020
Conparts ApS
Consideration
paid cash 1,500
Consideration
recognized as a debt -
Fair
value of contingent consideration (earn out) 3,007
Total
estimated cost of acquisition 4,507
DKK
Thousands
2020
Intangible
assets 1,586
Property,
plant and equipment -
Inventories
-
Customer
contracts -
Trade
and other receivables -
Cash
and cash equivalents 125
Non
-current liabilities -
Deferred
tax (349)
Trade
payables -
Other
payables -
Net
assets acquired 1,362
Goodwill
3,145
20. Acquisitions CONTINUED
| Annual report 2021 Page 112
5.4 Consolidated notes
The company’s financial institutions have provided bank guarantees for consignments and prepayments of a total of DKK 16.7 million (2020: DKK 1.5 million).
Towards the company’s primary financial institution, a deposit of DKK 50 million (2020: DKK 50 million) has been provided with deposit in unsecured claims, stocks,
tangible assets and intangible rights.
There is a 12-month rent commitment related to a building in Denmark. The minimum rent liability amounts to DKK 3.0 million (2020: DKK 3.0 million).
The Danish subsidiaries of the Group are liable for tax of the jointly taxed income, etc. of the Group. SKAKO A/S is the administrative company of the joint taxation.
22. Related parties
SKAKO A/S has no related parties with a controlling interest. Given its share of ownership, Frederik2 ApS are considered to have significant influence.
The company’s related parties comprise the company’s Executive Management, Board of Directors and these persons’ related family members. Related parties also
comprise companies in which the before-mentioned persons have controlling or common control. In addition, related parties comprise the subsidiaries cf. page 131 in which
SKAKO A/S has controlling or significant influence.
23. Events after the balance sheet date
There have been no events that materially affect the assessment of this Annual Report 2021 after the balance sheet date and up to today.
24. Approval and publication
At the Board meeting on 17 March 2022, our Board of Directors approved this Annual Report 2021 for publication. The report will be presented to the shareholders of
SKAKO A/S at the annual general meeting on 19 April 2022.
21. Contractual liabilities, contingent liabilities and
securities
| Annual report 2021 Page 113
5.4 Consolidated notes
The Group’s general accounting policies are described below. In addition to this,
specific accounting policies are described in each of the individual notes to the
consolidated financial statements.
Generally
The consolidated financial statements are presented in compliance with
International Financial Reporting Standards (IFRS) as adopted by the EU and
Danish disclosure requirements for annual reports published by reporting class D
(listed) companies cf. the Danish executive order on IFRS issued in compliance
with the Danish Financial Statements Act. The registered office of SKAKO A/S is in
Faaborg, Denmark.
The consolidated financial statements are presented in Danish kroner (DKK), which
is the presentation currency for Group activities and the functional currency for the
Parent. The consolidated financial statements are presented on the basis of
historical cost except for share-based remuneration which are measured at their
fair value.
The financial statements for the Parent as well as the Parent’s accounting policies
are presented from the consolidated financial statements and are shown on the
last part of this Annual Report 2021
The accounting policies remain unchanged for the consolidated financial
statements compared to 2020.
Effect of new accounting standards
Amendments to IFRS 4, 7, 9 and 16, as well as IAS 39 have no
impact on the Group’s accounting policies, due to immateriality
to SKAKO.
Changes in accounting policies and classification for 2022
No new standards are expected to be implemented in 2022.
Effect of new accounting standards not yet in force
Revised and new standards and interpretations issued, but not yet effective or
approved by the EU at the time of publication of this Annual Report 2021 have not
been incorporated into this report.
Definition of materiality
IFRS contain extensive disclosure requirements. The Group discloses the
information required according to IFRS unless such information is deemed
immaterial.
Consolidated financial statements
The consolidated financial statements comprise SKAKO A/S (the Parent) and the
enterprises in which the Parent can or actually does exercise control by either
directly or indirectly holding more than 50% of the voting rights.
Consolidation principles
The consolidated financial statements are prepared on the basis of the financial
statements for the Parent and its subsidiaries by aggregating uniform items.
The financial statements included in the consolidated financial statements are
prepared in accordance with the Group’s accounting policies. Intra-Group income,
expenses, shareholdings, balances and dividends as well as unrealized intra- Group
profits on inventories are eliminated. The accounting items of subsidiaries are
recognized 100% in the consolidated financial statements.
Income statement
Income and costs are recognized on an accrual basis. The income statement is
broken down by function, and all costs including depreciation, amortization
and impairment losses are then charged to production, distribution and
administration.
Distribution costs
Distribution costs include costs relating to training, sales, marketing, promotion
materials, distribution, bad debts as well as depreciation, amortisation and
impairment losses on assets used for distribution purposes.
Administrative expenses
Administrative expenses include administrative staff costs, office expenses as
well as depreciation, amortisation and impairment losses on assets used for
administrative purposes.
25. Group accounting policies
| Annual report 2021 Page 114
5.4 Consolidated notes
Prepaid expenses
Prepaid expenses recognized under assets include costs relating to the subsequent
financial years. Prepaid expenses are measured at cost.
Deferred income
Deferred income includes income received relating to the subsequent financial
year. Deferred income is measured at cost.
Cash and cash equivalents
Cash and cash equivalents consist of bank deposits and certain overdrafts, and
other liquid assets.
Equity
Foreign currency translation reserve includes foreign currency translation adjustments
on the translation of financial statements of foreign subsidiaries from their respective
functional currencies into Danish kroner. Foreign currency translation adjustments
are recognized in the income statement on realization of the net investment. Hedging
reserves include fair value adjustments of derivatives satisfying the criteria for hedging
of future transactions. The amounts are recognized in the income statement or the
balance sheet in step with recognition of the hedged transactions.
Treasury shares
On the sales of treasury shares, the purchase price or selling price, respectively, is
recognized directly in equity under other reserves (retained earnings).
Cash flow statement
The cash flow statement is prepared according to the indirect method and reflects
the consolidated net cash flow broken down into operating, investing and financing
activities.
Cash flow from operating activities includes inflows from the year’s operations
adjusted for non-cash operating items, changes in working capital, financial
income received and expenses paid, realized foreign currency translation gains
and losses and income tax paid. Cash flow from investing activities includes the
purchase, development, improvement or sale of intangible assets and property,
plant and equipment.
Cash flow from investing activities comprises cash flows from the purchase and
sale of intangible, tangible and financial non-current assets.
Cash flow from financing activities comprises cash flows from raising and repaying
long-term debt, instalments on lease liabilities and bank overdraft.
Estimates and judgements
On the preparation of the consolidated financial statements, Management makes a
number of accounting estimates and judgements. These relate to the recognition,
measurement and classification of assets and liabilities. Many items can only be
estimated rather than accurately measured. Such estimates are based on the most
recent information available on preparation of the financial statements. Estimates
and assumptions are therefore reassessed on an ongoing basis. Actual figures may,
however, deviate from these estimates. Any changes in accounting estimates will be
recognized in the reporting period in which such changes are made. See list of
significant estimates and assessments in chapter 5.4
Financial ratios
Financial ratios are calculated as follows:
• Gross profit margin = Gross profit x 100 / Revenue
• Profit margin = EBIT x 100 / Revenue
• Liquidity ratio = Total current assets x 100 / Total current liabilities
• Equity ratio = Total equity x 100 / Total assets
• Return on equity = Profit for the period x 100 / (Equity this year + equity prior
year) / 2
• Financial leverage = Net interest-bearing debt x 100 / Equity
• Net debt to EBITDA = Net debt / EBITDA (EBIT less depreciations)
• NWC/Revenue = Net working capital x 100 / Revenue
• Earnings per share = Profit for the period / Shares in free flow
• Equity value per share = Equity / Total shares
• Share price = Share price at end of period
• Price-book ratio = Share price / Equity per share
• Market capitalization = Total number of share x Share price
• ROIC = NOPAT / (Invested capital this year + invested capital prior year) / 2
• NOPAT = Profit for the period +/- net financial income
• Invested capital = Total assets - net cash and credits - deferred tax assets –
non-interest-bearing current liabilities
25. Group accounting policies CONTINUED
| Annual report 2021 Page 115
26. Correction of not significant mistake in the financial
figures for 2020
In connection with the preparation of the financial report for H1 2021, we
encountered an accounting error in SKAKO’s ERP system whereby some
purchases in SKAKO Concrete were recognized as inventory instead of
productions costs. The resulting mistake in the financial statements amounts to
DKK 2.0m in 2020 distributed with DKK 1.0m in Q2 2020 and DKK 1.0m in Q4
2020.
The mistake is not significant for the annual report and does not affect cash
flows but could disturb comparisons between 2021 and 2020, which is why the
comparative figures for 2020 have been corrected. The correction has a
negative effect on the result for 2020 of DKK 2.0m, just as inventories and
equity are correspondingly negatively affected with this amount. The effect of
the correction on the comparative figures for 2020 is shown in the tables below.
EBIT for SKAKO A/S for 2020 before correction of the mistake amounted to DKK
17.2m. With the correction of DKK 2.0 m, EBIT amounts to DKK 15.2m.
The discovery of the error in the ERP system has led to updates being
implemented to SKAKO’s ERP system.
The correction has no impact on cash flow. The total balance has decreased
from DKK 324.1m to DKK 322.1m
SKAKO A/S, DKKm Q2 2020 Correction Q2 2020, corrected
Q1-Q3 2020 Correction
Q1-Q3 2020,
corrected
Revenue 74.9 - 74.9 252.7 - 252.7
Production costs (54.2) (1.0) (55.2) (189.1) (1.0) (190.1)
EBIT 5.5 (1.0) 4.5 15.0 (1.0) 14.0
Inventory (balance sheet) 61.8 (1.0) 60.8 60.9 (1.0) 59.9
Equity (Balance sheet) 133.3 (1.0) 132.3 136.2 (1.0) 135.2
5.4 Consolidated notes
| Annual report 2021 Page 116
SKAKO A/S, DKKm Q4 2020 Correction Q4 2020, corrected Full year 2020 Correction
Full year 2020,
corrected
Revenue 83.2 - 83.2 335.9 - 335.9
Production costs (66.9) (1.0) (67.9) (256.0) (2.0) (258.0)
EBIT 2.2 (1.0) 1.2 17.2 (2.0) 15.2
Inventory (balance
sheet)
53.1 (2.0) 51.1 53.1 (2.0) 51.1
Equity (Balance
sheet)
129.3 (2.0) 127.3 129.3 (2.0) 127.3
SKAKO Concrete,
DKKm
Q2 2020 Correction Q2 2020, corrected Q1-Q3 2020 Correction
Q1-Q3 2020,
corrected
Revenue 35.9 - 35.9 126.8 - 126.8
Production costs (28.2) (1.0) (29.2) (102.4) (1.0) (103.4)
EBIT 2.7 (1.0) 1.7 7.0 (1.0) 6.0
SKAKO Concrete,
DKKm
Q4 2020 Correction Q4 2020, corrected Full year 2020 Correction
Full year 2020,
corrected
Revenue 45.6 - 45.6 172.4 - 172.4
Production costs (37.1) (1.0) (38.1) (139.5) (2.0) (141.5)
EBIT 0.7 (1.0) (0.3) 7.7 (2.0) 5.7
26. Correction of not significant mistake in the financial
figures for 2020
5.4 Consolidated notes
| Annual report 2021 Page 117
5.5 Parent company financial statements
5.5 PARENT COMPANY FINANCIAL
STATEMENTS
Notes
Revenue
0 0
Other
income 900 900
1,2
Administrative expenses
(4,061) (3,124)
Operating
profit (EBIT) (3,161) (2,224)
3,7
Financial
income 148 167
3
Financial
expenses (868) (331)
Profit
before tax (3,881) (2,388)
4
Tax
on profit for the year 1,381 684
Profit for the year (2,500) (1,704)
Parent company income statement
DKK Thousands
2021 2020
DKK Thousands 2021 2020
Notes
Profit for the year
(2,500) (1,704)
Other comprehensive income 0 0
Comprehensive income (2,500) (1,704)
Comprehensive income attributable to SKAKO A/S shareholders (2,500) (1,704)
Parent company statement of comprehensive income
| Annual report 2021 Page 118
5.5 Parent company financial statements
Notes
Other
intangible assets - -
5
Intangible
assets - -
Operating
equipment, fixtures and fittings - -
Leasehold
improvements - -
Tangible
assets under construction - -
6
Tangible
assets - -
7
Investments
in subsidiaries 164,158 164,158
Other
receivables - -
8
Deferred
tax assets 687 159
Other
non-current assets 164,845 164,317
Total
non-current assets 164,845 164,317
Receivables
from subsidiaries 13,960 375
Trade
receivables - -
Income
tax 1,305 525
Other
receivables 195 -
Prepaid
expenses - -
Other
investments - -
Cash
20,182 26
Current assets 35,642 926
Assets 200,487 165,243
Parent company balance sheet - 31 December
DKK Thousands 20202021
| Annual report 2021 Page 119
5.5 Parent company financial statements
Notes
Share
capital 31,064 31,064
Retained
earnings 92,825 107,152
Proposed
dividends 12,335 9,252
T
otal equity 136,224 147,468
Debt
to subsidiaries 27,848 10,996
Bank
loans and credit facilities 35,970 4,982
Trade
payables 24 309
Other
liabilities 421 1,488
Current
liabilities 64,263 17,775
Liabilities
64,263 17,775
EQUITY AND LIABILITIES 200,487 165,243
Parent company balance sheet - 31 December
DKK Thousands 20202021
| Annual report 2021 Page 120
5.5 Parent company financial statements
Notes
Profit
before tax (3,881) (2,388)
9
Adjustments
1,227 (385)
Changes
in receivables, etc. (975) 537
Change
in trade payables and other liabilities, etc. (1,352) 1,089
Cash
flow from operating activities before financial items and tax (4,981) (1,147)
Financial
items received and paid (720) (164)
Taxes
paid and received 854 -
Cash
flow from operating activities (4,847) (1,311)
Change
in intra-Group balances 3,267 6,666
Change
in short-term bank facilities 30,988 739
Distributed
dividends (9,252) (6,168)
Cash
flow from financing activities 25,003 1,237
Change
in cash and cash equivalents 20,156 (74)
Cash
and cash equivalents 1 January 26 130
Cash
and cash equivalents 31 December 20,182 26
Breakdown
of cash and cash equivalents at the end of the year:
Cash
20,182 26
Other
investments - -
Cash and cash equivalents at the end of the year 20,182 26
Parent company cash flow statement
DKK Thousands 2021 2020
| Annual report 2021 Page 121
5.5 Parent company financial statements
DKK Thousands Share capital
Retained
earnings
Proposed
dividends
Equity
Equity 1 January 2021 31,064 107,152 9,252 147,468
Paid dividends (9,252) (9,252)
Comprehensive income in 2021:
Loss for the year - (14,835) 12,335 (2,500)
Other comprehensive income - -
-
-
Comprehensive income, year - (14,835) 12,335 (2,500)
Share-based payment, share warrants - 508 - 508
Equity 31 December 2021 31,064 92,825 12,335 136,224
Parent company statement of changes in equity
DKK Thousands Share capital
Retained
earnings
Proposed
dividends
Equity
Equity 1 January 2020 31,064 124,825 - 155,889
Distributed interim dividends (6,168) (6,168)
Comprehensive income in 2020:
Loss for the year - (10,956) 9,252 (1,704)
Other comprehensive income - - -
Comprehensive income, year - (10,956) 9,252 (1,704)
Share-based payment, share warrants - (549) - (549)
Equity 31 December 2020 31,064 107,152 9,252 147,468
| Annual report 2021 Page 122
5.6 Parent company notes
5.6 PARENT COMPANY NOTES
DKK
Thousands 2021 2020
PWC
Statutory
audit 366 297
Other
assurance engagements - 35
Tax
and indirect taxes consultancy - -
Other
services 83 237
449 569
1. Staff costs
Number of employees in 2021: 0 (2020: 0)
For information regarding Executive Management and Board of Directors remuneration, including share-based warrant plans,
please refer to note 3 and note 4 in the consolidated financial statements.
2.Fee to parent company auditors appointed
at the Annual General Meeting
The fee for non-audit services delivered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to
the parent company amounts to DKK 0.08m (2020: DKK 0.24m) and consists of accounting and tax advisory.
| Annual report 2021 Page 123
5.6 Parent company notes
DKK Thousands 2021 2020
Interest from subsidiaries 8 25
Dividends received from subsidiaries - -
Reversal of write-down of shares in subsidiaries - -
Financial income from financial assets not measured at fair value in the income statement 8 25
Other financial income 140 142
Financial income 148 167
Interest to subsidiaries (391) (196)
Interest on bank debt (221) (27)
Interest on lease debt - -
Financial expenses on financial liabilities not measured at fair value in the income statement (612) (223)
Other financial expenses (256) (107)
Financial expenses (868) (331)
Net financial items (720) (164)
3. Net financial income
| Annual report 2021 Page 124
5.6 Parent company notes
DKK Thousands 2021 2020
Current tax on the profit for the year 854 525
Adjustment of current tax, prior years - -
Change in deferred tax - -
Adjustment of deferred tax, prior years 527 159
Impact on changes in corporate tax rates - -
Tax for the period 1,381 684
Danish corporate tax rates 854 525
Effect of tax rates in foreign jurisdictions - -
Impact in changes in corporate tax rates - -
Tax assets not capitalized 527 -
Permanent differences and other items - 159
1,381 684
4. Tax on profit for the year
| Annual report 2021 Page 125
5.6 Parent company notes
DKK Thousands 2021 2020
Software Software
Cost 1 January 907 907
Investments - -
Disposals - -
Transferred between categories - -
Cost 31 December 907 907
Amortization and impairment 1 January 907 907
Disposals - -
Amortisation - -
Amortization and impairment 31 December 907 907
Carrying amount 31 December - -
5. Intangible assets
| Annual report 2021 Page 126
5.6 Parent company notes
DKK Thousands
Leasehold improvements Operating equipment, fixtures and fittings Total
Cost 1 January 2021 341 2,168 2,509
Investments - - -
Disposals - - -
Transferred between categories - - -
Cost 31 December 2021 341 2,168 2,509
Depreciation and impairment 1 January 2021 341 2,168 2,509
Transferred between categories - - -
Disposals - - -
Depreciation - - -
Depreciation and impairment 31 December 2021 341 2,168 2,509
Carrying amount 31 December 2021 - - -
6. Tangible assets
DKK Thousands
Leasehold improvements Operating equipment, fixtures and fittings Total
Cost 1 January 2020 341 2,168 2,509
Investments - - -
Disposals - - -
Transferred between categories - - -
Cost 31 December 2020 341 2,168 2,509
Depreciation and impairment 1 January 2020 341 2,168 2,509
Transferred between categories - - -
Disposals - - -
Depreciation - - -
Depreciation and impairment 31 December 2020 341 2,168 2,509
Carrying amount 31 December 2020 - - -
| Annual report 2021 Page 127
5.6 Parent company notes
DKK Thousands 2021 2020
Cost 1 January 260,534 260,534
Investments - -
Disposals - -
Cost 31 December 260,534 260,534
Write-down 1 January (96,375) (96,375)
Reversal of write-down - -
Write-down 31 December (96,375) (96,375)
Carrying amount 31 December 164,159 164,159
7. Investments in subsidiaries
Group companies are listed on page 131.
| Annual report 2021 Page 128
5.6 Parent company notes
DKK Thousands 2021 2020
Deferred tax recognized in the balance sheet:
Deferred tax assets 687 159
Deferred tax liabilities - -
Deferred tax, net 31 December 687 159
Deferred tax, net 1 January 159 -
Changes in deferred tax 528 159
Deferred tax, net 31 December 687 159
Deferred tax assets:
Tax losses 687 159
687 159
Deferred tax assets not recognized:
Intangible assets - 74
Property, plants and equipment 205 131
Inventories - -
Other items 121 -
Tax losses 4,088 4,616
4,414 4,821
8. Deferred tax
Tax losses carried forward are not subject to time limitation.
| Annual report 2021 Page 129
5.6 Parent company notes
DKK Thousands 2021 2020
Dividends received from subsidiaries - -
Depreciations - -
Financial items received and paid 720 164
Other 507 (549)
1,227 (385)
9. Adjustments, cash flow statement
Adjustments
DKK Thousands 2021 2020
Borrowings 1. January 4,982 4,243
Repayments - -
New borrowings 30,988 739
Currency adjustments - -
Borrowings 31. December 35,970 4,982
Change in borrowings and short-term credit facilities
10. Contracts liabilities, contingent
liabilities and securities
Please refer to note 21 in the consolidated financial statements.
As security for SKAKO Concrete A/S’ and SKAKO Vibration A/S’ outstanding account in relation to its primary financial institution, the company has provided an unlimited,
joint and several suretyships.
Towards the company’s primary financial institution, a company deposit of DKK 50 million (2020: DKK 50 million) has been provided with deposit in unsecured claims,
stocks, tangible assets and intangible rights.
There is a 12-month rent commitment related to the building in Denmark. The minimum rent liability amounts to DKK 3.0 million (2020: DKK 3.0 million).
The company is jointly taxed with all Danish subsidiaries. The company is jointly and severally liable with the other companies in the joint taxation for Danish corporate
taxes and withholding taxes on dividend, interests and royalties within the joint taxation.
| Annual report 2021 Page 130
5.6 Parent company notes
12. Events after the balance sheet date
Please refer to note 23 in the consolidated financial statements.
13. Accounting policies
The financial statements for 2021 of the parent company, SKAKO A/S has been prepared in accordance with International Financial Reporting Standards as adopted by the
EU and Danish disclosure requirements for annual reports of listed companies under reporting class D. The financial statements have been prepared in accordance with the
historical cost convention, as modified by the revaluation of derivative financial instruments at fair value.
The accounting policies for the financial statements of the parent company are unchanged from the last financial year and are the same as for the consolidated financial
statements with the following additions.
Supplementary accounting policies for the parent company
Investments in Subsidiaries
Investments in subsidiaries are recognized at cost less impairment losses. Where the recoverable amount is lower than cost, investments are written down to this lower
value. Dividends received from investments in subsidiaries and associates are recognized in the income statement in the financial year in which the dividends are declared.
Intra-group transactions in the Parent Company Financial Statements
Intra-group transactions are recognized in the parent company financial statements at the carrying amount. Accordingly, additions to or disposals of investments are
recognized at the carrying amount, and any difference between the carrying amount of net assets and the consideration paid is recognized directly in equity.
Comparative figures are not restated.
Intercompany balances
Intercompany balances which are expected to be settled as part of the normal operating cycle, or where an unconditional right to defer settlement.
11. Related parties
Please refer to note 22 in the consolidated financial statements.
In 2021, the Parent Company has sold services to subsidiaries for DKK 900 thousand (2020: DKK 900 thousand) and paid net interest expenses, cf. note 3.
| Annual report 2021 Page 131
Subsidiaries
Company name Country Interest
SKAKO A/S Denmark Parent
SKAKO Concrete A/S Denmark 100%
SKAKO GmbH Germany 100 %
SKAKO Concrete, Inc. USA 100 %
SKAKO Concrete S.A. France 100 %
Conparts ApS Denmark 100 %
SKAKO Vibration A/S Denmark 100 %
SKAKO Vibration Ltd. UK 100 %
SKAKO Dartek S.L. Spain 100 %
SKAKO Vibration S.A. France 100 %
SKAKO Vibration Succursale Maroc Morocco 100 %
Aktieselskabet af 01.04.2012 Denmark 100 %
Bygmestervej 2
DK-5600 Faaborg
Denmark
Tel.: +45 63 11 38 60
skako.dk@skako.com
www.skako.com
CVR No. 36440414
5.6 Parent company notes
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