Royal Unibrew A/S CVR no. 4 1 95 67 12
Annual
Report
2021
our people
We recruit, develop and retain
entrepreneurial and empowered
people thirsting for success and
striving to do better every day.
Our people drive our success
and progress – and live and
protect our values. We work as
one team and find solutions to
all challenges.
our consumers
Bringing people together and faci-
litating great moments and enjoy-
ment is the heart of our business.
We offer strong local beverage
brands in combination with global
brands – continuously striving to
match consumers’ changing prefe-
rences through meaningful innova-
tions and by offering a broad range
of refreshments that deliver choice.
THE PREFERRED CHOICE
We want to be the preferred choice of local beverage partner that challenge the
status quo by doing better every day in a fun, agile and sustainable way
THE PREFERRED CHOICE for
Purpose and Ambition
our customers
We partner with our customers
and strive to grow together by of-
fering a portfolio of relevant brands
and having a challenger mindset.
With our local, decentralized setup
we focus on agility and close
collaboration – aiming to provide
best-in-class service as well as
pursuing extraordinary brand exe-
cution in all channels.
the future
We are deeply rooted in the com-
munities where we work, and we
partner with all our stakeholders to
make a positive impact on society.
Our focus is to build a long-term
sustainable business and to mini-
mize the environmental footprint of
our operations from raw materials
to the end consumption.
our shareholders
Our main focus is to invest behind the
categories and channels that grow
the most, pushing premiumization and
driving organic EBIT growth. On top
of this, we will do value accretive bolt-
on, as well as strategic acquisitions if
possible. We aim to increase distribu-
tion to shareholders over time through
dividend and share buy-backs.
ROYAL UNIBREW Annual report 2021 2
THE PREFERRED CHOICE
CEO Letter
2021 was in many ways a
remarkable year for Royal Unibrew
Despite the pandemic and hence a challenged supply
chain, we managed not only to deliver solid organic
growth and more than 10% volume into the market; we
also signed six acquisitions during the year as well as
Hansa Borg in the first week of 2022.
Strategically, we concluded our first year with THE PRE-
FERRED CHOICE framework and I am very pleased that we
have delivered advancement on all parameters.
•
W
e continue to bring relevant products to the market,
expanding the choices for our consumers reflected in con-
tinued market share gains
• The broader portfolio and higher service level are recog-
nized by our customers reflected in high ratings in surveys
and resulting in expanded and new relationships across
geographies
• Our people scores advance, and we see improvements in
our ability to attract talents
• On ESG, we improved our Sustainalytics score significantly,
and we are now rated within top 10% in our core industry
peer group
• On that backdrop, we delivered the highest earnings ever
in Royal Unibrew paving the way for another year of in-
creased re-distribution to shareholders in spite of the high
M&A activity
Our multi-beverage business model continues to yield very
satisfactory results and with the acquisition of Solera Bev-
erage Group, we strengthen our wine capabilities as well as
expanding our geographical footprint by including Norway
and Sweden. I feel certain that we have a very strong busi-
ness model in the Nordic with an even broader portfolio and
channel coverage that will strengthen our relationship with
our customers even further and deliver relevant brands to
the consumers. Bringing more feet on the ground servic-
ing more customers makes us more competitive driving
organic volume growth. Our multi-beverage model
brings a competitive edge and a better utilization of
assets and thereby higher efficiency. Although the
”Our strategic framework
together with our multi-
beverage model, yielded very
satisfactory results in 2021.”
ROYAL UNIBREW Annual report 2021 3
CEO Letter
businesses in Norway and Sweden are not as broad portfo-
lio-wise as Hartwall was, we aspire to close the gap and are
willing to invest in the long-term opportunity.
As part of THE PREFERRED CHOICE strategy, we identified
six growth categories, and we aim to grow faster than the
market in all categories. Overall, consumers do not drink more
beverages, but habits and demands change, new categories
evolve and we want to be ahead of the curve. Not all catego-
ries are growing at the same speed in all countries, so the art
lies in selecting the right priorities in the individual markets.
• The energy drinks category grows impressively these years.
The category is highly innovative, and consumers are very
curious about flavors, sugar levels and added functionali-
ty. We foresee considerable growth in this category in the
future.
•
L
ow/no sugar - especially within the carbonated soft
drinks category - is to our belief saving the category from
a substantial decline. We benefit from the significant
conversion into no-sugar and no-calories carbonated soft
drinks (CSD) as we generally have higher market share in
no-sugar than in sugar through a strong portfolio from our
own brands and from our partner, PepsiCo.
• Low/no alcohol beverages are still relatively modest in
most markets, however, growth rates are high led by
significant improvement in the taste profiles. The category
growth links up to the global health and wellness trend.
• The cider/RTD category is growing as it taps into consum-
ers’ increasing demand for convenience, quality ingre-
dients, premium products and new drinking occasions.
This means that products like pre-mixed cocktails grow
significantly. We see this category taking share from beer
and spirits.
•
T
he strong work with brands like Ceres Strong Ale, Vi-
tamalt, Lorina, Nohrlund and our craft ranges support a
continued premiumization of our total product portfolio.
Many consumers are willing to pay for premium products
with added value being anything from local to organic or
with CO
2
neutrality.
•
T
he enhanced drinks category, which we believe will get
closer to the energy drinks category, develops positively in
many countries, however from a very small base. Enhanced
drinks are popular in Finland and our Finnish brand, Novelle
continues to take the lead in Finland – latest with the
launch of a line extension containing plant-based proteins.
We continue to see a bright future for enhanced waters as
consumers increase focus on healthy and better-for-me
products.
Availability of assets are rarely predictable but to strength-
en our platform and in line with our strategy, we succeeded
in acquiring several businesses during the last 12 months.
The businesses range from bolt-on acquisitions over new
brands and/or categories to new platforms/geographies, each
individual acquisition not being transformational for Royal
Unibrew, but the totality is.
We continue to work hard on our target to be among the
world’s most sustainable beverage companies. In all parts
of Royal Unibrew and every day, we are looking for ways to
reduce our environmental footprint, to find more sustainable
solutions for our customers and more sustainable and health-
ier products to our consumers. We therefore continue to
support UN Global Compact initiative and in addition, we have
decided to also enroll in the Task Force on Climate-Related
Financial Disclosure (TCFD) as well as the Science Based Tar-
gets initiative (SBTi). Our impact on the world and our willing-
ness to reduce the negative part of it is strong and can be felt
throughout our company.
We are entering 2022 as a stronger company. We have
expanded our geographic footprint, strengthened most of
our market positions and even added new market leading
positions to our business portfolio, while at the same time
we have strengthened our capabilities. We will not optimize
earnings short-term by underinvesting in commercial oppor-
tunities, but we will maximize the mid- to long-term potential
by overinvesting ahead of the curve in the growth opportu-
nities we see across categories and geographies. The annual
report has been prepared ahead of the unfortunate events
we are witnessing in Ukraine right now, and due to increased
inflationary risk, we have lowered the expected EBIT range
for 2022 ahead of this publication.
I would like to thank all my colleagues around the world for
their dedicated and impressive efforts in a time of significant
changes at many levels. Without all the hard work and an
agile attitude, it would not have been possible to deliver the
best annual result ever. I would also like to thank our board
of directors for their support and our shareholders for their
continued trust – thank you all!
Lars Jensen
President & CEO
ROYAL UNIBREW Annual report 2021 4
Contents
Management report
Who we are
6
S
trategy 14
Our business
16
P
erformance 29
Governance
38
C
orporate Social Responsibility
56
F
inancial statements
Signatures and statements
78
C
onsolidated Financial Statements 84
Parent Company Financial Statements
1
26
Other Information 145
M
ergers and Acquisitions
Page 21
C
orporate Social Responsibility
Page 56
Follow us:
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Faxe Kondi
celebrated its
50th anniversary
this year
Watch
the video
ROYAL UNIBREW Annual report 2021 5
Contents
→
→
Markets
Multi-beverage
Multi-niche
Production
Non-
alcoholic
Baltic
Sea
Baltic
Sea
Above
mainstream
brands
Multi-niche
and niche
International
International
Alcoholic
Western
Europe
Western
Europe
Mainstream
brands
Multi-
beverage
64
65
35
36
2020
2021
51
45
44
38
11
11
2020
2021
49
48
52
51
2020
2021
76
77
23
24
2020
2021
45
42
49
45
9
10
2020
2021
Net revenue by brand category
(�)
Volume by segment
(�)
EBIT by segment
(�)
the rest of the world.
We strive to offer our customers a broad portfolio of high-quality beverages, which
accomodates our consumers’ demands across a wide range of categories, including
beer, malt beverages, soft drinks, energy drinks, cider/RTD, juice, water, wine and
spirits.
Our portfolio includes brands like Faxe Kondi, Original Long drink, LemonSoda, Novelle,
Faxe, Lorina, Vitamalt, Kalnapilis etc., and in addition to our own brands, we offer
license-based international brands from PepsiCo and Heineken in Northern Europe.
We want to be THE PREFERRED CHOICE as local beverage partner that challenge
the status quo by doing better every day in a fun, agile and sustainable way, creating
good and enjoyable moments for our consumers.
Net revenue split in
alcoholic vs. non-alcoholic
(�)
Royal Unibrew in brief
Net revenue split
(�)
7
Who we are
Royal Unibrew in brief
2017 2018 2019 2020 2021
CO
2
from production
CO
2
(kgCO
2
/hl) scope 1+2
0
10
20
30
40
1
2
3
4
5
2017 2018 2019 2020 2021
Net revenue
5,000
6,000
7,000
8,000
9,000
-5
0
5
10
15
Organic growth
2017 2018 2019 2020 2021
EBIT
600
800
1,000
1,200
1,400
1,600
1,800
EBIT margin
0
4
8
12
16
20
24
0
5
10
15
20
25
30
2017 2018 2019 2020 2021
30
35
40
45
50
55
60
2017 2018 2019 2020 2021
300
500
700
900
1,100
1,300
1,500
2017 2018 2019 2020 2021
Highest EBIT ever despite some capacity issues, a
challenged supply chain, increasing raw material prices
and COVID-19 impacts.
Developments in 2021
•
S
trong performance in both On-Trade and Off-Trade leading
to increased market shares in our key markets
•
O
rganic EBIT growth of 6%. Reported EBIT growth of 9%.
EBIT 12% above 2019
•
S
trong free cash flow of DKK 1,296 million, down by 8% when
compared to an extraordinary high free cash flow in 2020
•
E
arnings per share up from DKK 24.1 to DKK 26.5 (+10�)
• In 2021, total distribution to shareholders was DKK 1,235
million up by 30%
• A dividend of DKK 14.50 per share for 2021 (2020:
DKK 13.50) is proposed to the AGM
• A new share buy-back program of DKK 300 million is initiated
18.9�
EBIT-margin for 2021,
a decrease of 1.8 percentage point
+
9�
EBIT increase for 2021
to DKK 1,652 million
+
20�
Net revenue increase for 2021
to DKK 8,746 million
10�
EPS increase for 2021,
to DKK 26.5 per share
Earning per share
(DKK)
Share of CSD volumes with
no/low sugar content (%)
Net Revenue/Organic growth
(mDKK) (�)
CO
2
from production
Results for 2021
and outlook for
2022
EBIT/EBIT margin
(mDKK) (�)
Free cash flow
(mDKK)
Outlook for 2022
mDKK Outlook Actual 2021 Actual 2020
Net revenue 10,000-11,000 8,746 7,315
EBIT 1,650-1,800 1,652 1,515
Please refer to page 28 for more details.
ROYAL UNIBREW Annual report 2021 8
Who we are
Results for 202x and outlook
→ Read more: page 36
Results for 2021 - business segments
Western Europe
AND SWEDEN
Baltic Sea
FINLAND, LATVIA, LITHUANIA AND ESTONIA
International
65 MARKETS IN AMERICAS AND EMEAA
5,549
thl
VOLUME
(up by 19%)
5,554 thl
VOLUME
(up by 3�)
1,229 thl
VOLUME
(up by 23%)
857mDKK
EBIT
(up by 25%)
642 mDKK
EBIT
(down by 5%)
176 mDKK
EBIT
(up by 3%)
4,491mDKK
NET REVENUE
(up by 32%)
3,338mDKK
NET REVENUE
(up by 6%)
917 mDKK
NET REVENUE
(up by 19%)
19.1�
EBIT-MARGIN
(down by 1.1pp)
19.2�
EBIT-MARGIN
(down by 2.3pp)
19.2�
EBIT-MARGIN
(down by 3.0pp)
→ Read more: page 32 → Read more: page 34
ROYAL UNIBREW Annual report 2021 9
Performance
Results for 202x - business segments
2021 2020 2019 2018 2017
Volume (million hectolitres) 12.3 11.1 11.0 10.8 9.9
Income Statement (mDKK)
Net revenue* 8,746 7,315 7,692 7,298 6,384
Organic growth net revenue (%) 12% -3% 1% 9% 1%
EBITDA 2,020 1,861 1,814 1,673 1,362
EBITDA margin (%) 23.1 25.4 23.6 22.9 21.3
Earnings before interest and tax (EBIT) 1,652 1,515 1,469 1,339 1,069
EBIT margin (%) 18.9 20.7 19.1 18.4 16.7
Income after tax from investments in associates 37 33 25 20 18
Other financial income and expenses, net -42 -43 -36 -31 -31
Profit before tax 1,647 1,505 1,458 1,328 1,056
Net profit for the year 1,298 1,198 1,140 1,040 831
Parent company shareholders' share of net profit 1,299 1,183 1,142 1,041 831
Balance Sheet (mDKK)
Non-current assets 8,771 7,015 7,163 6,775 5,121
Total assets 10,914 8,306 8,493 8,062 6,778
Equity 3,342 3,332 3,106 2,908 2,814
Net interest-bearing debt 3,536 2,193 2,705 2,522 975
Net working capital -1,102 -875 -671 -748 -957
Invested capital 7,450 5,927 6,211 5,835 4,030
Cash Flows (mDKK)
Operating activities 1,753 1,738 1,402 1,214 1,168
Investing activities -457 -324 -262 -401 -218
Free cash flow 1,296 1,414 1,140 813 950
* The IFRS-15 accounting policy concerning customer contracts was reassessed, and some sales costs were reclassifed
to rebates, and as a consequence net revenue and sales costs are reduced with the same amount in 2020 and onwards,
cf. page 149..
2021 2020 2019 2018 2017
Share ratios (DKK)
Number of shares (million) 48.8 49.4 50.1 51.0 52.7
Earnings per share (EPS) 26.5 24.1 23.0 20.6 16.0
Diluted earnings per share 26.5 24.1 22.9 20.6 16.0
Free cash flow per share 26.4 28.8 23.0 16.1 17.8
Dividend per share 14.5 13.5 12.2 10.8 8.9
Year-end price per share 737.2 706.6 610.0 449.0 371.8
Employees
Average number of employees 2,890 2,631 2,567 2,416 2,299
Financial ratios (%)
Return on invested capital including goodwill (ROIC) 19 20 19 21 21
Return on invested capital excluding goodwill (ROIC) 32 33 30 33 32
Free cash flow as a percentage of net revenue 15 19 15 11 15
Capex as a percentage of net revenue 5 5 4 6 4
Cash conversion 100 118 100 78 114
Net interest-bearing debt/EBITDA (times) 1.7 1.2 1.5 1.5 0.7
Equity ratio 31 40 37 36 42
Return on equity (ROE) 40 37 38 36 29
Dividend payout ratio (DPR) 55 56 54 53 56
Ratios comprised by the "Recommendations and Financial Ratios" issued by the Chartered Financial Analyst Society
Denmark's Committee for Accounting standards have been calculated according to recommendations.
Definitions of financial highlights and ratios are provided on page 150.
Due to adoption in 2018 of IFRS 16 (leases) using the modified retrospective approach the 2018 to 2021 highlights and
ratios are not comparable with those for 2017.
Compared to the Annual Report 2020 the definition of free cash flow has been updated to reflect market practise of the
IFRS 16 implementation. Comparables for 2020 and 2019 have been adjusted.
Financial Highlights and Ratios
ROYAL UNIBREW Annual report 2021 10
Who we are
Financial Highlights and Ratios
ESG highlights and ratios
2021 2020 2019 2018 2017
PRODUCTION FIGURES
Production sites 14 9 9 9 7
Production volume, total million hl 11.5 10.6 10.3 10.4 9.1
ENVIRONMENT & CLIMATE
Purchased Electricity GWh 84.2 79.1 81.4 81.2 73.7
Natural gas GWh 99.5 88.3 94.2 88.9 80.1
Purchased Heat/steam/cooling GWh 33.5 30.6 37.8 40.8 43.7
Other GWh 3.1 2.8 1.9 2.9 2.5
Energy, total GWh 220.3 200.8 215.3 213.8 200.0
CO
2
from production (location based)* million kgCO
2
35.8 35.7 40.0 39.8 36.5
CO
2
from production (market based)** million kgCO
2
26.8 24.2 26.2 n/a n/a
Total water consumption million hl 34.8 33.3 33.3 33.3 28.2
Total amount of wastewater discharged million hl 22.8 22.3 22.3 22.7 18.5
Hazardous waste million kg 0.0 0.1 0.1 0.1 0.1
Landfilled waste million kg 0.7 0.9 0.4 0.5 0.4
Incinerated waste million kg 0.6 0.7 1.5 1.1 0.9
Recycled waste million kg 5.5 5.0 5.9 5.4 3.1
Other waste*** million kg 0.0 0.5
Solid Waste, total million kg 6.8 7.2 7.9 7.1 4.5
Spent grain & yeast million kg 79.2 76.8 77.4 80.9 91.3
RELATIVE PRODUCTION FIGURES
Energy kWh/hl 19.2 18.9 20.9 20.6 20.1
CO
2
kgCO
2
/hl 3.1 3.4 3.9 3.8 4.0
Water hl/hl 3.0 3.1 3.2 3.2 3.1
2021 2020 2019 2018 2017
PACKAGING MATERIAL
Cans % 43.4% 41.7% 40.2% n/a n/a
Returnable glass bottles % 2.4% 2.9% 3.4% n/a n/a
Non returnable glass bottles % 9.1% 7.9% 8.7% n/a n/a
PET % 36.0% 36.8% 37.0% n/a n/a
Kegs % 2.0% 1.9% 3.5% n/a n/a
Bulk % 0.3% 0.2% 2.9% n/a n/a
Other % 6.8% 8.5% 6.5% n/a n/a
PEOPLE WELL-BEING & DEVELOPMENT
Occupational Health & Safety
Total number of lost-time incidents (LTIs) 53 56 42 39 46
Lost time incident frequency 11.3 13.7 10.8 10.2 12.9
Number of lost days 944 2070 1594 687 n/a
Lost day rate 202 506 412 180 n/a
Fatalities 0 0 0 0 0
Employee engagement
Employee turnover % 15.0 13.9 17.5 20.6 n/a
Leave of absence due to illness (not work related) % 3.8 3.7 3.9 3.5 n/a
Diversity
Percentage of employees by gender, total
Female % 26 24 25 26 24
Male % 74 76 75 74 76
Employees by gender, Int. Management teams
Female % 29 33 32 31 30
Male % 71 67 68 69 70
* Location based: Calculated CO
2
emission based on IEA country factors
** Market based: Subtracting CO2
emission covered by green certificates
*** Packaging material: Sales volume distribution
ROYAL UNIBREW Annual report 2021 11
Who we are
ESG Highlights and Ratios
Chairman's letter
2021 was a strong year for Royal Unibrew with solid organic
earnings growth, strengthened positions in existing markets
and new platforms in Norway and Sweden
For many years, we have worked on building a powerful op-
erating platform with dedicated employees and strong local
ownership of business decisions. This has proven to be very
successful during times of change. The individual business
units have responded well to the changing market conditions
that the pandemic has caused. When some channels have
been very hard-hit, other opportunities have emerged and the
entire organization has successfully adjusted priorities and
focused on pockets of growth.
Focus on integration
During 2021, Royal Unibrew acquired a number of companies,
and a main focus area is to secure full integration of these
companies into the Royal Unibrew family. The organizations
acquired have solid competences and strong brands, which
we are keen on developing further. Our integration efforts
focus on implementing our IT platform, our performance
management setup and our localized business model. The
recipe remains unchanged.
I am pleased that we have now entered Norway and Sweden
and will have a solid presence across all the Nordic markets in
the future.
THE PREFERRED CHOICE for employees
Royal Unibrew has dedicated employees with a clear focus
and a common goal on delivering as promised. To be success-
ful in our industry, we must attract the best people by accom-
modating the best job opportunities and working conditions
in the industry. In Royal Unibrew, the local and decentralized
approach creates clarity in decision making and empowers
employees to have a real impact.
Strong development over a long period of time
Since I joined the board of directors in 2010, Royal Unibrew’s
business has grown significantly both through organic
development of our beverage portfolio and via acquisitions.
The operating result has increased almost four times and is
less dependent on single markets or products. Consequently,
Royal Unibrew is a more diversified and robust business today.
When I joined, the majority of Royal Unibrew’s profit came
from Den mark , International and Italy. Today, we also have a
very strong business in Finland, and we have started the jour-
ney in France, Norway and Sweden to broaden our footprint.
On top of this, we experience strong growth opportunities in
our International business.
Handing over the baton
I have been on the board for 11 years
and I am very proud to see how the
dedicated employees have
transformed the busi-
ness and secured strong
financial development.
During 2021, I have
worked closely together
with Peter Ruzicka on
the board, and I am
certain that Peter
will be an excellent
chairman of the
board for Royal
Unibrew.
Walther
Thygesen
Departing
Chairman
of the board
ROYAL UNIBREW Annual report 2021 12
Who we are
Chairmans Letter
Chairman's letter
Royal Unibrew’s local business model enables the
organization to deliver solutions to customers ensuring
that we are THE PREFERRED CHOICE
Royal Unibrew has a relative simple but very effective strategy.
The solid and strong growth for more than a decade is based
on a clear scalable business model with clear local ownership
of the business and limited central functions. The model works
particularly well in the Nordics, and we are happy that our pres-
ence in Norway and Sweden was strengthened in 2021.
A cornerstone of the strategy is to ensure that we integrate
acquired companies into our business model and embed the
Royal Unibrew DNA in each entity. Local ownership only works
with transparency in performance and this is secured through
our IT and performance management system.
Preparing for the next phase of our development
Royal Unibrew is becoming a bigger business and the board is
very focused on balancing short-term financial performance
and investments into future growth. During 2022, we will se-
lectively add capabilities and resources to ensure that we can
manage the growth and deliver on opportunities.
We will invest in additional production capacity and capability
to secure we can continue to produce the volumes needed,
but we will also invest in equipment that can support our tran-
sition into zero emissions on our production facilities in 2025.
THE PREFERRED CHOICE for the future
Since Lars Jensen took over as CEO, we have focused on
clarifying our purpose and ambition. Our vision is to become
THE PREFERRED CHOICE as local beverage provider. This
is a logical extension of the formula that has been success-
ful for many years. In particular, I am very proud to see the
strong progress we have made in the past year on ESG and
to see how the organization has taken ownership of the ESG
agenda to ensure that we are THE PREFERRED CHOICE - also
for the future. The strong financial results and market share
development show that investing in ESG can be done without
compromising on other performance metrics.
New chairman
I look forward to working with the board and the executive
management team and to continue to grow in the coming
years preparing Royal Unibrew for the next step on our journey.
Royal Unibrew has been very successful in recent years and we
will continue to develop our business as we become bigger.
I am honored to be appointed chairman of Royal Unibrew and
Walther is leaving behind a strong and high performing com-
pany with a clear strategy. On behalf of the board, I would like
to thank Walther for his many years of excellent contribution.
Peter Ruzicka
Incoming Chairman
of the board
ROYAL UNIBREW Annual report 2021 13
Who we are
• Diverse portfolios
• Agile collaboration
• Local
• Market challenger
• Taste
• Local
• Health
• Availability
Consumers Customers
Future Employees
Shareholders
• Sustainability
• Product circularity
• Partnerships
• Green energy
• EBIT growth
• Investments
• Acquisitions
• Distributions
• Entrepreneurial
• Solution-oriented
• Ownership
• Fun
Our strategy –
THE PREFERRED
CHOICE
We want to be THE PREFERRED CHOICE of local
beverages. The preferred partner that challenges the
status quo by doing better every day in a fun, agile and
sustainable way. Our overall strategy is to be a strong
regional multi-beverage provider with strong market
positions in which we operate. In markets, where we
do not have a multi-beverage presence, we want to
build and develop strong niche positions.
With a strong brand portfolio of own brands and partner
brands, we want to create and maintain strong market posi-
tions within beverage categories. Structural growth oppor-
tunities, be it acquisitions or partnerships, will be exploited
to the extent that they fit strategically and strengthen our
current market positions.
Consumers
We want to build a sustainable
business based on strong
brands that meet consumers’
demands. We want to secure
that by having a broad portfolio
characterized by choice, quality
and innovation in relevant
categories.
Future
We want to be among the most
sustainable beverage companies
and minimize our environmental
footprint. We take responsibility
for the entire value chain and
focus on circular economy and
zero carbon emissions.
We strive to maintain our locally
based business model being
well connected with the local
societies where we operate. We
want to make a positive impact
on society, giving back to all our
stakeholders and thereby re-
invest in and build our business
over time.
Shareholders
We want to continuously develop our business with
an aim to outperform our peers when it comes to
profit growth and value creation and doing so with an
attractive and efficient capital allocation.
Customers
We have a mindset of building
sustainable business and
grow with our customers. This
mindset is a cornerstone in
our culture, and we work hard
every day to help getting our
customers well positioned in
their marketplaces.
Employees
To become THE PREFERRED
CHOICE of local beverages,
we need talented, diverse and
engaged people. We want to
create a performance based
winning culture with the
proudest employees in the
industry.
ROYAL UNIBREW Annual report 2021 15
Strategy
Our strategy
WAREHOUSING &
DISTRIBUTION
EM
PLOYEES
PACKAGING
RAW MATE R IALS
COMMUNITIESCUSTOMER CONSUMERS
PRODUCTION
Operating model
We are a multi-beverage business that is anchored
around local strongholds, operating in categories
with ambient beverages with longer shelf life. Our
portfolio of branded high-quality beverages in relevant
packaging formats are core to our business and the
foundation from which we serve our consumers with
products they want for all occasions whether they are
at home, on-the-go or at a bar or a restaurant.
The multi-beverage business model enables scale benefits
across the entire value chain, while the locally based oper-
ating model of Royal Unibrew enables us to decentralize the
decision power. We have a simple proven performance man-
agement system where we monitor and operate the business
across markets by focusing on volume growth, premiumiza-
tion and efficiency improvements. It is all based on a central
IT platform, while we drive scale benefits through a central-
ized procurement organization.
Raw materials
We use ingredients such as barley, water, sugar, juice etc. to
produce our beverages. Our centralized procurement set-up
is based on local and global suppliers, which meet our require-
ments of quality and reliability of supply. It is important that
we achieve a stable, high-quality and sustainable supply, and
we therefore work closely, and in collaboration, with our sup-
pliers to understand the environmental and social footprint
Royal Unibrew’s operating model
of our total activities. Additionally, our suppliers must comply
with our Code of Conduct and ethical guidelines.
Production
We operate at fourteen production facilities in seven countries
at which we make and fill a wide range of quality beverages
for our consumers and customers. We aim to facilitate a work
environment based on safety, health, job satisfaction and
opportunities. It is part of our DNA to continuously look for
efficiency improvements for our production facilities across
our geographic footprint. We relentlessly focus on minimiz-
ing emissions from our production as we target to be 100%
carbon emission neutral (scope 1 and 2) in 2025.
Packaging
We rely on materials like aluminium, glass, rPET and PET for
packaging. Although most of our packaging is recyclable, it
does not always end up being recycled. We support a circular
economy for our packaging where 100% of packaging is col-
lected, reused or recycled, so that none of it ends up as litter
or in the oceans. In our main markets Deposit Return Systems
(DRS) secure a high level of recycling, but it can still be better.
In countries like France, Italy and Latvia, we work for and
support the introduction of DRS's.
Employees
We employ around 2,900 people across our business – they
make and sell our beverages, as well as provide great service
ROYAL UNIBREW Annual report 2021 17
Our business
Operating model
Consumers
It is our mission to bring people together, facilitating great
moments and enjoyment with our products wherever they
are whenever they want. Our approach is to offer a selection
of primarily local brands tailored to the local consumer sup-
ported by global brands. We use our category focus to ensure
that we are well positioned to understand consumer needs
and identify future growth drivers in an effort to create great
tasting products. Our marketing complies with all relevant
policies, such as our Ethical Business Policy and our Responsi-
ble Marketing Code.
Communities
As a regionally based multi-beverage company founded on a
strong local presence, Royal Unibrew aims to be a responsible
member of the community and make a positive contribution
to the sustainable development of society. It is part of our
culture to engage not only in the local societies surrounding
our premises, sport clubs and our employees’ families but
also in our brand communities, with customers, other busi-
ness partners and NGOs. Our business model is underpinned
by our commitment to the United Sustainable Development
Goals (SDGs).
for and with our customers. We aim to create a work environ-
ment for skilled, committed and loyal employees. We want to
engage and inspire our people for them to thrive in a dynamic,
highly inclusive workplace that truly values each individual.
Warehousing & distribution
Our broad assortment provides valuable scale in both ware-
housing and distribution as it enables full pallet delivery and
thereby large average drop sizes. We sell our products in more
than 65 countries around the world. We work with specialist
transport companies to distribute our products to minimize
the use of own trucks. In some markets we work with direct
distribution from our own terminals to both Off- and On-
Trade customers, while in other markets we work with a com-
bination of direct distribution and distribution via wholesalers
etc. In our International division, we work with partners who
sell and distribute our products.
Customers
Our broad multi-beverage portfolio of great tasting pro-
ducts, considerable knowledge of the beverage market and
strong customer service make us a preferred partner for our
customers. We strive to support costumers with in-store
execution where this is allowed, and we have the scale to be
closer to the customer base. All our customers across all sales
channels are essential to our business as they are our main
route to market. We proactively engage with our customers
to share knowledge and best practices across packaging and
innovation trends to create solutions to minimize the impact
of our collective carbon footprint related to our operations.
ROYAL UNIBREW Annual report 2021 18
Our business
Equity story
Leading brand portfolio
Royal Unibrew has throughout its key markets a
market leading portfolio of local non-alcoholic and
alcoholic beverages supported by strong global
licensed brands.
Strong track record of earnings growth
We have delivered an average annual EBIT growth of 13%
during the past 10 years, which has translated into an average
annual EPS growth of 16%. With our strong brand portfolio and
market positions, we believe that we will continue to deliver
solid earnings growth.
Disciplined capital allocation
Strong earnings growth and high cash conver-
sion will result in a significant liquidity surplus
going forward: It therefore remains the intention
to make distributions to shareholders through a
combination of dividend and share buy-backs.
We target to pay out annual dividends of 40-
60% of net profit for the year and use share
buy-backs to optimize our capital structure.
A sustainable business
Royal Unibrew has established a robust foundation
with concrete initiatives, goals and KPI’s for achiev-
ing our long-term ambition of becoming among
the most sustainable beverage companies globally.
We continue to support UN Global Compact and
has enrolled in the Task Force on Climate-Related
Financial Disclosures (TCFD) as well as the Science
Based Target Initiative (SBTI).
Strong market positions
With multi-beverage offerings in the Nordic and
the Baltic countries, Royal Unibrew possesses
very strong market positions by having market
leading market share positions within several
categories. The market leading positions make
Royal Unibrew an attractive beverage provider
in all channels as customers can get a broad
beverage offering.
Cash generative business
With an industry leading EBIT margin in Europe and
in combination with high asset efficiency, our cash
conversion during the past ten years has been at an
average 102%.
Clear growth and value oriented long-term strategy
Royal Unibrew has set out a very clear long-term strategy in which
we focus on categories with strong growth potential, premiumisation
and continued efficiency improvements. We want to invest in growth
opportunities to drive value growth, secure and build strong positions.
13�
average annual EBIT growth
during the past 10 years
40
-
60�
(of net profit) our annual
dividend target for the year
102�
average cash conversion
during the past 10 years
ROYAL UNIBREW Annual report 2021 19
Our business
Equity story
Our growth formula
Royal Unibrew offers a long unbroken period of earnings growth.
We continue to pursue and remain committed to deliver profitable growth in the coming years.
Over the past five years, we have
grown net revenue by 42% in total,
corresponding to an average 9.2% per
year, which has transformed into an in-
crease in EBIT of 55% in the same peri-
od, corresponding to an average 11.5%
per year. This has led to an increase in
Earnings Per Share (EPS) of 66% over
the past five years, corresponding to an
average 13.4% per year.
Over the past couple of years, we have
channeled more commercial invest-
ments towards the highest growing
categories in our portfolio with the
aim to continue to deliver high organic
volume growth. Innovations backed by
strong consumer insights, combined
with talented and experienced employ-
ees and a strong in-store execution
secure a solid foundation for growth.
Costs and efficiency improvements
have been and always will be a part
of Royal Unibrew’s DNA. Every day, we
strive to do things better in a more effi-
cient way and together with premiumi-
zation, it will form a solid foundation for
continued underlying margin expan-
sion. The ambition is to reduce the ratio
of costs per net revenue organically
every year and the key driver is oper-
ating leverage. We achieve operating
leverage by growing the topline faster
than our overall cost base. Our multi-
beverage operating model enables us
to achieve higher utilization of fixed
assets, sell more per sales person, have
higher average drop sizes to customers
and in general have higher productivity
per employee.
We want to continuously develop new
products that premiumize our beve-
rage portfolio by having a higher sales
price per volume unit than the average.
Premiumization is also created by
growing the more profitable channels
faster and thereby offer a product
portfolio with better value for all. This
will be supported by the direction of
commercial spending towards the
more premium part of our beverage
portfolio.
It is a core part of our DNA to create
value and earnings growth through
acquisitions of companies. The foun-
dation for acquisitions is always that it
can be incorporated in our operating
model and that our business model
enables us to extract synergies. We
seek to significantly improve or cement
our market positions through bolt-on
or brands acquisitions, while larger
transformational acquisitions usually
open multi-beverage opportunities in
new geographies. Historically, around
1/3 of our absolute EBIT growth has
been created through acquisitions.
Profitable growth creates strong cash-
flow generation due to our cash effi-
cient business model and is therefore
a strong factor in our ability to pursue
a solid shareholder distribution policy.
We aim to create a positive total share-
holder return, through a combination
of growing distribution (dividends and
share buy-backs) over time as well as
an increasing share price.
High focus on invested capital
efficiency through strict working
capital mangement and disciplined
capital expenditures combined with
increasing earnings and strong cash
flow generation will result in improving
Return On Invested Capital (ROIC)
over time.
Our growth formula:
volume+value+efficiency+potential M&A = increased earnings
+ share buy-backs = increased earnings per share
Volume growth Premiumization Efficiency improvements Mergers & acquisitions Share buy-backs
ROYAL UNIBREW Annual report 2021 20
Our business
Our growth formula
Mergers &
Acquisitions –
three types
Acquiring companies is a core part of our DNA. Our
Danish business is based on mergers & acquisitions
of more than 30 regional Danish beverage companies,
and to a large degree, our international expansion has
been driven by acquisitions.
We have created significant value through these acquisitions,
and the foundation for acquisitions will always be that they
can be incorporated in our operating model, and that our
business model enables us to extract synergies.
Conceptually, we mainly work with three different types
of acquisitions – bolt-on acquisitions, brand/category
acquisitions and platform acquisitions.
Bolt-on acquisitions
refer to minor businesses with
operations within an area where
Royal Unibrew is already pres-
ent through the multi-beverage
model. The acquired business is
relatively simple to integrate into
Royal Unibrew and has signifi-
cant value creation potential, as
synergies are relatively large. The
acquisitions of Nohrlund, Bauskas
and Fuglsang are examples of
bolt-on acquisitions.
Brand/category acquisitions
refer to the acquisitions of brands,
which will give Royal Unibrew
exposure to brands/categories in
existing niche/multi-niche mar-
kets. It also includes acquisitions
of brands in categories where we
already are established, but where
we significantly improve our mar-
ket position through the acqui-
sition of complementary brands.
LemonSoda and Crazy Tiger are
examples in this category.
Platform acquisitions
refer to businesses in markets
where we have limited or no pre-
sence and which give us a strong
market position within one or
more categories. These are nor-
mally more demanding in terms
of integration, and cost synergies
are lower in the short run, but over
the long run these acquisitions
offer significant potential. Solera
Beverage Group belongs to this
category.
ROYAL UNIBREW Annual report 2021 21
Our business
Mergers & Acquisitions - three types
Mergers & Acquisitions - 2021
In terms of acquisitions, 2021 will be remembered
as an extraordinarily busy year as we signed six deals
during the year (one acquisition is still subject to
approval by the Danish Authorities). We will continue
to leverage M&A to unlock future growth - be it as
bolt-on acquisitions, acquisitions of brands/categories
or more transformational acquisitions of market
platforms. However, the remaining integration work
limits our short term acquisition ability.
Solera Beverage Group (Solera): Solera was an important
strategic platform acquisition as it expands access to the
Norwegian and Swedish markets. Solera is by far the largest
acquisition we have completed since the transformative
acquisition of Hartwall in 2013.
Solera is a leading importer and distributor of beverages in the
Nordic markets with state owned monopoly franchises and is
the preferred partner for many partners and customers. The
company generated revenue of approximately DKK 1.3 billion
and an EBITDA of approximately DKK 70 million in 2020 when
adjusting for positive COVID-19 effects. Solera strengthens
Royal Unibrew's skills within wine and together with Hartwa
Trade form a strong Pan-Nordic powerhouse.
Solera constitutes a multi-beverage platform across the Nor-
dics. With the acquisition, we obtained a dedicated sales force
that has the capabilities and experience in selling a multi-
b
everage portfolio.
Royal Unibrew and Solera complement each other well and
yield a strong consolidated market position across the Nor-
dic region when combined. The acquisition creates a solid
foundation for the acceleration of future growth in especially
Norway and Sweden. Combined with our already very strong
market positions in Finland and Denmark, the acquisition
propels Royal Unibrew into a significant pan-Nordic market
position.
Our new Nordic platform is characterized by a strong route-
to-market and will provide Royal Unibrew with the opportuni-
ty to inject key products from our own portfolio into the Nor-
dic markets and thereby create significant value and secure
continued absolute EBIT growth. Additionally, we have also
“Solera provides Royal Unibrew
with strong wine competences,
a solid platform and a strong
route-to-market to expand sales
of our wide product range into
Norway and Sweden”
ROYAL UNIBREW Annual report 2021 22
Our business
Mergers & Acquisitions - 2021
become an attractive partner for producers and brands in the
future - either by partnerships or by further M&A activity.
Crazy Tiger: In 2021, we successfully established expo-
sure to the fastest growing beverage category in the French
market with the acquisition of the French energy drinks brand
Crazy Tiger. Founded in 2010, Crazy Tiger has built a #3 mar-
ket share position of 11% within the Off-Trade energy drinks
category in France. In 2020, revenue reached approximately
EUR 15 million with an EBITDA margin of more than 30%.
It is our plan to operate Crazy Tiger as an integrated part
of Lorina which sells our premium lemonade in France. This
structure enables us to maximize the advantages of the op-
erational strengths and unlock the short-term and long-term
commercial opportunities represented by the acquisition.
Product innovation is at the heart of Crazy Tiger and it is our
plan to further accelerate the innovative efforts of the brand
especially in terms of flavors, sizes and packaging formats. An
ambitious commercial agenda has already been established
and is currently undergoing successful implementation by
the joint forces of Royal Unibrew’s French team and our new
colleagues from Crazy Tiger.
Fuglsang: With the acquisition of Fuglsang, we further
strengthened our Danish business and emphasized our com-
mitment to offer product portfolios with rich local heritages
throughout Denmark. The acquisition provides Royal Unibrew
with an additional regional stronghold in the South of Jutland,
where approximately 80% of Fuglsang’s On-Trade customers
are located. Total annual revenue was approximately DKK 75
million when Royal Unibrew acquired the group.
The brewery has become part of Royal Unibrew's Danish
production setup operating in close alignment with the Albani
brewery in Odense. Most products from Fuglsang have been
included in Royal Unibrew's product portfolio, and the ac-
quisition also provided Royal Unibrew with the opportunity
of cross-selling our existing product portfolio to the numer-
ous On-Trade customers that are successfully served by
Fuglsang.
Bryggeri Helsinki and Tanker Brewery: Bryggeri Helsinki is
a combined craft brewery and restaurant located in the heart
of Helsinki. With the acquisition, we improve our selection of
local craft beers, and it is our ambition to develop Bryggeri
to be Helsinki’s leading specialty beer brand and expand the
distribution in both Off-Trade and On-Trade.
The Estonian craft brewery Tanker Brewery is recognized
as the leading craft brewery in Estonia with a high degree
of regional uniqueness and authenticity, and the acquisition
strengthens Royal Unibrew’s local footprint in the Estonian
market. We will focus on utilizing the unique proposition of
the brand, addressing the growing premium beer segment in
the Baltic countries by expanding our portfolio with craft and
niche products.
ROYAL UNIBREW Annual report 2021 23
Our business
ROYAL UNIBREW Annual report 2021 23
35
35
6
2
4
4
4
10
2021
Beer
CSD
Water
Cider/RTD
Juice
Malt
Energy
Wine & spirits
Last year, we made a slight adjustment to our short
and long-term strategy, as we took a longer view on
categories, countries and channels and established a
long-term view on consumer trends.
As a result, we called out six areas of specific interest, as we
see longer-term growth opportunities here:
• Energy drinks
•
C
ider/RTD
• Enhanced waters
•
No
/low sugar
• No/low alcohol
•
P
remiumization
Energy drinks volumes increased by more than 30% in 2021
and constitutes 2% of total group volumes. Growth was solid
across all markets and the energy drinks market is growing
faster than the average beverage market in all of our markets.
In 2021, we introduced Lemonsoda Energy Activator in Italy
and added the Crazy Tiger brand to our portfolio in France.
Our cider/RTD volumes grew by double-digit percentages in
2021 and make up 6% of total group volumes. The catego-
ry grew across all markets supported by our strong market
positions in especially Finland and Denmark with brands like
Original Long drink and Shaker.
Enhanced water is a category that is still primarily playing out
in the Finnish and Swedish markets. We expect the category
to eventually gain momentum in the remaining Nordic mar-
kets as it meets consumers’ increasing demand for healthier
products.
The no/low sugar segment continues to grow and CSD
and energy drinks products with no or low sugar content
increased by 23% compared to 2020. This means that the
share of no/low CSD and energy products increased to 53%
of total volumes in these categories.
Our categories
Revenue split categories
(%)
Beer
CSD
Water
Cider/RTD
Juice
Malt
Energy
Wine & spirits
ROYAL UNIBREW Annual report 2021 24
Our business
Our categories
0
6
12
18
24
30
Energy Wine &
spirits
Beer
Cider/
RTD
Malt
Juice
Water
CSD
0
1
2
3
4
5
Energy Wine &
spirits
Beer
Cider/
RTD
Malt
Juice
Water
CSD
0.5x
1x
2.4x
1.2x
1x1x
3.3x
4.3x
Products with low or no alcohol content also continue to
increase. Consumers are looking for quality alternatives to
alcoholic beverages, but with low or no alcohol, and we have a
very strong portfolio in both beer and RTD’s. Low or no alcohol
beers and RTD’s volumes increased by around 25% in 2021
and constitute around 3% of total volumes in these catego-
ries.
Energy drinks and Cider/RTD’s are among the most profitable
categories in our product portfolio and are growing faster
than group average.
Revenue growth rates (2021 vs 2020)
(%)
Gross profit/hl indexed to beer
(X)
ROYAL UNIBREW Annual report 2021 25
Our business
Dividend pay-out ratio
EBIT margin dilution in 2021
NIBD / EBITDA
2017 2018 2019 2020 2021
1.70.7 1.5 1.5 1.2
2017 2018 2019 2020 2021
55%56% 53% 54% 56%
2017
EBIT margin
excl. dilution
2018
Dilution from
acquisitions
2019 2020 2021
EBIT margin
reported
16.7%
19.7%
18.4%
-0.8%
19.1% 18.9%
18.9%
20.7%
<2.5
times
40-
60%
of consolidated
profit for the year
20-
21%
EBIT margin
Our financial targets are based on creating
shareholder value and developing the business long-
term to the benefit of all stakeholders. To achieve
this, we aim to create sufficient financial flexibility to
develop the business, organic as well as in-organic,
over the medium to long term.
The capability of achieving the financial targets is condi-
tional on continuous business development through focus
on growth opportunities, partnerships, innovation, sales
and marketing, and on continuous efficiency measures. In
recent years, we have been able to invest significantly in both
organic and in-organic growth because of our solid financial
flexibility. Despite these investments, we have also continued
to make considerable distributions to our shareholders.
EBIT margin
In the Annual Report for 2020, we reiterated our medi-
um-term EBIT margin target of 19-20%, while in connection
with the Q1 2021 Trading Statement, we increased it to
20-21%. This technical upward revision came mainly from a
reassessment of our IFRS 15 accounting policy concerning
customer contracts which impacted our EBIT margin posi-
tively by around 0.7 percentage points.
With the acquisition of Solera Beverage Group in July 2021,
we updated the timeline of our EBIT margin target of 20-21%
from being medium-term to being long-term.
The acquisition of Solera Beverage Group will dilute our group
EBIT margin by around 2 percentage points, and the acquisi-
tions of Aqua d'Or and Hansa Borg will further dilute the EBIT
margin when they are approved. Contrary, our well-estab-
lished markets are expected to continue to deliver an EBIT
margin at least in line with our long-term margin target.
We want to build strong platforms for future growth in our
new markets by investing in organizations, IT and multi-bev-
erage set-ups. This means that in a scenario with no further
dilutive acquisitions, beyond what has already been signed, it
may take up to five years before we reach our long-term EBIT
margin target.
This reflects our belief in our ability to expand the EBIT
margin, as we realize that synergies from recent acquisitions
secure efficiency improvements in our existing business and
benefit from investments into our selected growth opportu-
nities.
We therefore maintain our long-term EBIT margin target of
20-21%.
Financial targets, capital structure
and distribution policy
ROYAL UNIBREW Annual report 2021 26
Our business
Financial targets
Capital structure and distribution policy
The objective of our capital structure policy is to secure
enough flexibility to develop the business in line with our stra-
tegic priorities. It remains the target that net interest-bearing
debt is not to exceed 2.5 times EBITDA. We seek to secure
financial flexibility through long-term loan agreements and
facilities. As none of these have any equity ratio-related
covenants, we have removed our equity ratio target. We may
depart from the targeted ratio for a certain period of time if
structural business opportunities arise.
Our priorities for capital allocation are as follows:
1.
M
aintain financial flexibility
• Net debt/EBITDA less than 2.5
2.
I
nvest in organic growth
3. Acquisitions
4.
S
table dividend pay-out ratio (40-60%)
5. Share buy-backs to adjust capital structure
Total distribution for the year
mDKK 2021 2020 2019 2018 2017
Dividend 653 600 538 451 426
Share-buy-back 582 362 433 484 508
Total distibution 1,235 962 971 935 934
as a % of prior year consolidated profit 103 84 93 113 119
Our annual investments including repayment on lease facili-
ties (IFRS 16) are expected to be around 5% of net revenue.
Management evaluates on an ongoing basis if the capital
structure is to be adjusted by launching share buy-back pro-
grams. It is generally the intention that shares bought back
will be cancelled.
ROYAL UNIBREW Annual report 2021 27
Our business
Outlook for 2022
We expect an EBIT in the range of DKK 1,650 - 1,800
million in 2022 based on a revenue of DKK 10 - 11
billion. The expected EBIT range has been lowered by
DKK 100 million due to increased inflationary risk from
the geopolitical developments during the last week of
February 2022.
The general uncertainty is much higher than normal due to
the effects from the geopolitical situation. Royal Unibrew's
total direct sales to Russia, Belarus and Ukraine contributes
around 1% of earnings and is thereby not material.
Organic growth
Organically, we expect to continue to grow faster than the
market in 2022 and plan to increase commercial spending to
build our brands and service levels, while we prioritize spend-
ing more in our growth categories.
Inflation and price increase
During 2021, many raw materials and other input costs in-
creased significantly in price. The outlook is based on market
prices as of mid February 2022. We have increased prices
towards our customers to mitigate the impact from high-
er costs and the assumption behind our outlook is that the
gross profit per hl is slightly below 2021 per channel including
mix effects. We have not factored in any downtrading from
the general higher inflation meeting consumers, because of
relatively low unemployment rates in our core markets. The
recent development in Ukraine is expected to have further
negative impact on the input cost development during the
year, which is assumed partly covered by additional sales
price increases and cost mitigations.
COVID-19
In our main markets, vaccination rates, as well as variants
with less symptoms, have reduced the pressure on hospitals,
and consequently, reduced the need to implement restric-
tions. The outlook assumes impact from restrictions in the
On-Trade channel during the first quarter of 2022.
Acquisitions
Announced acquisitions of Hansa Borg and Aqua d'Or have
not closed and are not included in the guidance. Hansa Borg
has normalized revenue of around DKK 1.0 billion and EBITDA
around DKK 150 million, whereas normalized net revenue for
Aqua d'Or is DKK 180 million. See note 24, page 125.
General assumptions
The guidance is built on normal summer weather and trav-
elling activities. In 2021, Royal Unibrew benefitted from nice
weather and staycation effects as many consumers chose to
spend vacation in their own countries.
Top and bottom of the range
The top end of the guided range assumes that price increas-
es will not affect consumer behavior. Furthermore, apart from
some restrictions in the first quarter, we assume only minor
negative impact from COVID-19 during the rest of the year. It
also assumes that there will be no restrictions or issues in the
total supply chain, in particular in relation to access to energy,
raw and packaging materials as well as logistics.
The low end of the guidance range assumes some negative
consumer reactions to the inflationary environment, increased
competitive pressure and/or restrictions related to COVID-19
after the first quarter of 2022.
Financial assumptions
• Royal Unibrew will generally grow faster than the market
•
O
n-Trade will return to the level of 2019 from end of
February and onwards.
•
V
olume, price and mix partly compensate for increased input
cost leading to gross profit per hl slightly below 2021 by
channel
• Freight costs to negatively impact margins in International.
•
S
ales and Marketing cost will be higher than 2021
• Higher fixed costs driven by investment into the organization
•
I
n 2021, our capex is expected to be around 5% of revenue.
We will increase our investments in CSR and in expansion of
capacity to support future growth.
• Corporate income tax rate is expected to amount to around
21% of profit before tax excluding income after tax from
investments in associates
Outlook for 2022
mDKK Outlook Actual 2021 Actual 2020
Net revenue 10,000-11,000 8,746 7,315
EBIT 1,650-1,800 1,652 1,515
ROYAL UNIBREW Annual report 2021 28
Our business
Outlook for 202x
Financial review
COVID-19 continued to challenge our business in
2021, but to a lesser extent than what we experienced
in 2020. The re-opening resulted in a strong demand
for our products across geographies, but at the same
time we experienced capacity constraints for selected
products, a challenged supply chain and increasing raw
material prices.
With our strategy and multi-beverage model we delivered
a solid result in 2021 while at the same time completed six
acquisitions of which five had closing in 2021.
Volumes
In 2021, volumes sold increased by 11% to 12.3 mhl (Q4: +12%).
Net revenue
Net revenue amounted to DKK 8,746 million and increased by
20% of which 12% were organically. Organic revenue growth
of 18% in Q4.
The positive development in net revenue was supported by a
strong underlying momentum in our business, as well as the
re-opening of On-Trade during the summer months.
EBIT
EBIT amounted to DKK 1,652 million, an increase of 9% com-
pared to 2020, and is in line with top end of the initial guidance
of DKK 1,475-1,625 million when adjusting for positive impact
from acquistions closed in 2021. The EBIT increase was
mainly related to the Western Europe segment. In Q4, EBIT
increased by 21% (organic growth of 10%). The EBIT margin
contraction is explained by acquisitions and increased com-
mercial investments in future growth.
Acquisitions impacted EBIT positively by around 3 percent-
age points at group level (Q4: around 11 percentage points).
Read more: page 85
Balance sheet
Total assets at 31 December 2021 amounted to DKK 10,914
million, which is DKK 2,608 million above the 31 December
2020 figure, which is mainly due to acquisitions and a higher
investment level.
Equity amounted to DKK 3,342 million and the equity ratio de-
creased by 9 percentages points to 31% by the end of 2021.
The negative development in the equity ratio can be explained
by the high level of acquisitions in 2021.
Read more: page 89
Cash flow
The free cash flow amounted to DKK 1,296 million in 2021
versus an unusually strong cashflow of DKK 1,414 million in
2020. The cash flow was negatively impacted by postponed
employee taxes from 2020 (COVID-19-related) and one-off
payment of holiday allowance in Denmark.
As expected, we experienced a negative impact from the
missing beer campaign in Finland in 2021 but changed pay-
ment terms of excises in Finland neutralized the impact.
Read more: page 91
Financing
Net interest-bearing debt was DKK 3,536 million at the end
of 2021, corresponding to a net increase of DKK 1,343 million
equal to the positive free cash flow less distribution to share-
holders and cash used for acquisitions. At the end of 2021,
the net interest-bearing debt to EBITDA ratio was 1.7x (2020:
1.2x). In 2021, Royal Unibrew entered into a new DKK 500
million loan with the Nordic Investment Bank and increased
existing mortgage loans with DKK 173 million.
Share buy-back
During the year, Royal Unibrew repurchased shares at a total
purchase price of DKK 582 million. (2020: DKK 362 million).
Total announced programs were DK 500 million and were
completed in 2021.
Read more about the share buy-back
programs on page 53
ROYAL UNIBREW Annual report 2021 30
Performance
Financial review
→
→
→
→
2020
2021
47
51
2020
2021
43
38
2020
2021
10
11
2020
2021
45
51
2020
2021
44
38
2020
2021
11
11
→ Read more: page 36→ Read more: page 32 → Read more: page 34
Share of Net revenue Share of Net revenue
Share of Net revenue
Share of EBIT Share of EBIT
Share of EBIT
Overview business segments financial performance
Western Europe
DENMARK, GERMANY, ITALY, FRANCE, NORWAY AND SWEDEN
Baltic Sea
FINLAND, LATVIA, LITHUANIA AND ESTONIA
International
65 MARKETS IN AMERICAS AND EMEAA
ROYAL UNIBREW Annual report 2021 31
Performance
Overview business segments financial performance
Western
Europe
Financial performance
In Western Europe, total volumes showed a 19% increase
in 2021 (organically 13%) and a total of 5.5 mhl. Net revenue
from beverages was 32% higher than in 2020 (organically
15%), due to a year with less COVID-19 restrictions in On-
Trade and impact from acquisitions.
Earnings before interest and tax (EBIT) for 2021 showed a
DKK 170 million increase from DKK 687 million in 2020 to DKK
857 million in 2021, positively impacted by the Danish and
Italian market. The EBIT margin decreased by 1.1 percentage
points to 19.1% due to higher commercial spend.
“Our customers had a difficult year
with changing COVID-19 restrictions,
and we did our utmost to assist them
through these challenging times. The
energy drink category was on top of the
agenda – we launched our own brand
in Italy, Lemonsoda Energy Activator,
and acquired the Crazy Tiger brand in
France”
Jan Ankersen,
SVP South Europe and GM Italy
In Q4 2021, volumes increased by 35% compared to Q4 2020
(organically 20%), and net revenue increased by 90% in the same
period (organically 28%). Both due to less COVID-19 restrictions
and impact from the acquisitions of MC Energy and Solera.
The EBIT margin declined by 4 percentage point from 16.6% in
Q4 2020 to 12.6% in Q4 2021, impacted by the Solera portfo-
lio with lower margin.
5.5
mhl
VOLUME
(up by 19%)
857mDKK
EBIT
(up by 25%)
4.5 bnDKK
NET REVENUE
(up by 32%)
19.1%
EBIT-MARGIN
(down by 1.1pp)
300
400
500
600
700
800
900
20192017 2018 2020 2021
17.5
18.0
18.5
19.0
19.5
20.0
20.5
20192017 2018 2020 2021
2017 2018 2019 2020 2021
3,400
3,800
4,200
4,600
5,000
5,400
5,800
2019
2,400
2,800
3,200
3,600
4,000
4,400
4,800
2017 2018 2020 2021
EBIT
(mDKK)
EBIT-margin
(%)
volumes
(thl)
Net revenue
(mDKK)
WESTERN EUROPE
Q4 Q4
mDKK 2021 2020 % changes %organic 2021 2020 % changes %organic
Volumes (thl) 5,549 4,682 19 13 1.401 1.041 35 20
Net revenue 4,491 3,402 32 15 1,370 722 90 28
EBIT 857 687 25 18 173 120 44 21
EBIT margin 19.1 20.2 12.6 16.6
ROYAL UNIBREW Annual report 2021 32
Western Europe
During the first part of the year, activity in Denmark was char-
acterized by the extended shutdown of the On-Trade effec-
tive from December 2020. Despite the extensive closures, our
salesforce created and executed a wide range of activities,
also related to sustainability.
Activities included several virtual events with a range of very
popular beer tastings culminating with a hybrid event, which
the Guinness Book of records recorded as the world’s largest
virtual beer tasting ever with 16,843 participants. In 2021, we
celebrated the 50th anniversary of our iconic CSD brand Faxe
Kondi with several events, an overwhelming interest, especial-
ly in a limited edition version in champagne bottles.
In May 2021, we announced the acquisition of Bryggeriet
Fuglsang with strong local roots in Southern Jutland that will
help to create a strong regional platform. The transaction in-
cluded two production sites: a soft drinks factory in Ribe and
a brewery in Haderslev.
Our strong focus on customer satisfaction resulted in the rec-
ognition as the best supplier to the Danish grocery trade. The
analysis is performed by the independent company Gradient
Benchmark and rates approximately 18 different parameters
in the supplier/customer relationship for approximately 100
suppliers. The analysis is made at store level and at head office
level for the supermarket channel as well as in the convenience
channel. We are very proud that in 2021, Royal Unibrew was
rated as the best supplier in all 3 surveys, as well as being top
rated on who handled the impacts from COVID-19 best.
Italy delivered the best result ever in 2021 in both On-Trade
and Off-Trade, as we experienced significant growth in all cate-
gories (beer, CSD and energy drinks). Strong marketing support
to our brands ensured a fast recovery in On-Trade and together
with a stronger Off-Trade coverage and execution, we gained
value market share in all three categories through the year.
The Ceres brand significantly outgrew the market, leveraging
a new marketing campaign, strong in-store execution and
new launches in the super premium beer segment. This ce-
ments Ceres as a must stock brand in On-Trade. LemonSoda
also grew significantly more than the CSD market in Italy and
became market leader in the lemon-lime segment in the sum-
mer of 2021. We successfully launched Lemonsoda Energy
Activator in 2021 with a strong market presence.
In France, Lorina recorded its 39th consecutive month (Decem-
ber) of market share growth in the clear lemonade segment and
significantly outgrew the CSD category in 2021 driven espe-
cially by small formats. 2021 also became the year where Lorina
really went beyond the Off-Trade channel, being listed in around
3,000 bakeries. Lorina also repeated its Christmas activation
campaign (Joyeux Cocktail) in an effort to create a new lemon-
ade consumption occasion during the Winter season.
The acquisition of the Crazy Tiger energy drink brand marked
our entry into the fastest growing beverage category in the
market. The brand has continued its strong volume growth and
market share gains since the acquisition. We expect to finish
the integration of Crazy Tiger in the first quarter of 2022.
Development and initiatives in 2021
ROYAL UNIBREW Annual report 2021 33
Performance
Baltic Sea
BALTIC SEA
Q4 Q4
mDKK 2021 2020 % changes %organic 2021 2020 % changes %organic
Volumes (thl) 5,554 5,409 3 3 1,248 1,321 -5 -6
Net revenue 3,338 3,141 6 6 789 736 7 7
EBIT 642 675 -5 -5 100 99 1 3
EBIT margin 19.2 21.5 12.7 13.5
Financial performance
In the Baltic Sea segment, volumes for 2021 showed a 3% in-
crease compared to 2020. The segment was more impacted
by COVID-19 restrictions than Western Europe and Interna-
tional segments.
EBIT decreased to DKK 642 million and was DKK 33 million
below the 2020 figure. The EBIT margin decreased by 2.3
percentage point from 21.5% in 2020 to 19.2% in 2021. The
earnings development was negatively affected by increased
input prices and channel mix.
“A strong end to the year gives some
optimism for 2022 where we hopefully
will return to more normal conditions
for us all. In 2021, we succeeded in
strengthening many of our positions
and we welcomed new colleagues in
both Finland and Estonia.”
Kalle Järvinen,
SVP Baltic Sea & MD Hartwall
Volumes decreased by 5% in Q4 2021 (organically 6%), which
is primarily due to the extraordinary beer campaign in Finland
in 2020. Revenue increased by 7% due product mix. EBIT
increased by 1% (organically 3%), whereas the EBIT margin
declined by 1.2 percentage points from 13.5% in Q4 2020 to
12.7% in Q4 2021.
5.6 mhl
VOLUME
(up by 3%)
642 mDKK
EBIT
(down by 5%)
3.3 bnDKK
NET REVENUE
(up by 6%)
19.2%
EBIT-MARGIN
(up by 2.3pp)
2019
4,000
4,300
4,600
4,900
5,200
5,500
5,800
2017 2018 2020 2021
2019
1,600
1,900
2,200
2,500
2,800
3,100
3,400
2017 2018 2020 2021
2019
250
325
400
475
550
625
700
2017 2018 2020
2021
2019
10
12
14
16
18
20
22
2017 2018 2020 2021
Volumes
(thl)
Net revenue
(mDKK)
EBIT
(mDKK)
EBIT-margin
(%)
ROYAL UNIBREW Annual report 2021 34
Baltic Sea
The Baltic Sea segment was also impacted by COVID-19
restrictions. Especially throughout the second half of the year
restrictions remained in place and drove a subdued devel-
opment in the On-Trade throughout the year. In general, the
restrictions in Finland have been significant and we expect a
strong rebound during Q1 2022 in On-Trade as the restric-
tions are lifted.
In Finland, continued restrictions in On-Trade muted the de-
velopment. We continued to see a premiumization of our beer
portfolio, with strong development for our own brands Aura,
Lahden Erikois and Lapin Kulta Pure, as well as for Heineken.
In the RTD category, Original Long drink grew compared to
2021, and the Greyest Day Limited Edition Red Grapefruit
variant performed well and will become part of our standard
core portfolio in 2022.
We also continued our efforts in the low/no sugar/alco area,
including different Jaffa launches within low/no sugar CSD.
In the second quarter of 2021, we introduced a new plant-
based enhanced water – one of the first of its kind in the
world. This new Novelle Plus variant taps into the growing
demand of healthy enhanced waters, a category we expect
will expand further also outside of Finland. Tapping into the
same demand trend is our new "0% Traditional Long drink"
without alcohol.
Solera Finland will be merged with Hartwa Trade in 2022 to
create a strong Finnish player in the wine import and distribu-
tion segment in Finland.
In the Baltics, we continued to increase the share of above
mainstream beer in our portfolio, mainly through development
of the Latvian Bauskas brand. High focus on and increased
activation in the non-alcoholic beer segment led to significant
growth within this segment, and in Lithuania we maintained
and strengthened our category leader position with the
Kalnapilis brand.
2021 was the second full-year for the energy brand CULT in
the Baltics and has proved a successful category extension
and supported a muti-beverage strategy implementation.
Increasing brand awareness, high level of consumer engage-
ment in brand novelties and consumer promotions, resulted
in an almost doubling of the market share in the Baltic region
to 8%.
We acquired the craft brewery Tanker in September and
thereby increased our exposure to Estonia, strengthened
our in-market competencies and has a strong platform from
which to grow from in 2022.
Development and initiatives in 2021
35ROYAL UNIBREW Annual report 2021
Performance
International
Financial performance
Volumes in 2021 showed a 23% increase and net revenue
increased by 19%. The net revenue was impacted by positive
developments in all categories and brands. EBIT amounted to
DKK 176 million and was DKK 5 million above the 2020 figure.
The EBIT margin went down by 3.0 percentage points from
22.2% to 19.2%. The earnings were negatively affected by the
increased freight cost and raw material prices.
“In 2021, the International segment
was challenged by higher freight costs
and production capacity constraints.
On the positive side, sell-out in most
of our markets continued to increase
significantly, as we strengthened
our partnerships and expanded our
geographical footprint.”
Michael Nørgaard Jensen,
SVP International
In Q4 2021, volumes increased by 13%. Revenue increased
by 25% in the same period, more than volumes because of
market mix.
The EBIT margin decreased by 4.1 percentage points from
19.9% in Q4 2020 to 15.8% in Q4 2021. This development is
mainly affected by freight costs and increased raw material
prices.
Volumes
(
thl)
EBIT
(mDKK)
EBIT-margin
�)
Net revenue
(mDKK)
1.2 mhl
VOLUME
(up by 23�)
176 mDKK
EBIT
(up by 3�)
0.9 bnDKK
NET REVENUE
(up by 19�)
19.2�
EBIT-MARGIN
(down by 3.0pp)
INTERNATIONAL
Q4 Q4
mDKK 2021 2020 % changes %organic 2021 2020 % changes %organic
Volumes (thl) 1,229 1,002 23 23 322 285 13 13
Net revenue 917 772 19 19 248 199 25 25
EBIT 176 171 3 3 39 39 0 0
EBIT margin 19.2 22.2 15.8 19.9
2019
12
14
16
18
20
22
24
2017 2018 2020 2021
2019
200
400
600
800
1,000
1,200
1,400
2017 2018 2020 2021
60
80
100
120
140
160
180
20192017 2018 2020 2021
400
500
600
700
800
900
1,000
20192017 2018 2020
2021
ROYAL UNIBREW Annual report 2021 36
International
Development
and initiatives in 2021
Our FAXE beer brand continues to deliver strong growth rates
in most of our key markets through 2021. We expanded our
geographic footprint and strengthened our partnerships. We
also succeeded in reaching sales of more than one million
hectoliters worldwide, which makes FAXE our biggest beer
brand on volume.
The Malt business is also performing well across all our core
markets, including UK, North America, the Caribbean countries
and Africa. Our partnerships across geographies have been
strengthened. The cider/RTD category continues to grow sig-
nificantly, driven by especially Asia, although at a somewhat
lower pace due to COVID-19 restrictions and high freight
costs.
Sell-out in our markets continues to be very high, driven by
Africa and Asia.
ROYAL UNIBREW Annual report 2021 37
Performance
39ROYAL UNIBREW Annual report 2021
Governance
Corporate governance
ROYAL UNIBREW Annual report 2021 40
Governance
ROYAL UNIBREW Annual report 2021 41
Governance
ROYAL UNIBREW Annual report 2021 42
Governance
ROYAL UNIBREW Annual report 2021 43
Governance
Risk management
ROYAL UNIBREW Annual report 2021 44
Governance
Risk management structure and governance
• protection against data loss,
ROYAL UNIBREW Annual report 2021 45
Governance
Our key risks
ROYAL UNIBREW Annual report 2021 46
Governance
ROYAL UNIBREW Annual report 2021 47
Governance
Remuneration
Board of Directors and Executive Management
Position Professional board member in a number
of enterprises
Group CEO of Danish Crown
Directorships Chairman of the board of directors of Sonion
Holding A/S, DK, Sonion InvestCo A/S, DK, DROT
ApS, DK, Kartago Development ApS, DK, and
MARSK ApS, DK. Member of the board of
directors of Kartago Property ApS, DK, and
German High Street Properties A/S, DK
Member of the board of directors of Foss A/S,
DK
Special competences Special expertise in general management with
experience from both Denmark and abroad as
well as sales and marketing expertise, especially
in the business to business market
Special expertise in general management of
international enterprises within FMCG
(Fast Moving Consumer Goods)
Committees Chairman of the Nomination and Remuneration
Committee
Member of the Nomination and Remuneration
Committee
Initially elected 2010 2013
Term of office 2021-2022 2021-2022
Considered independent Yes Yes
Nationality Danish Danish
Year of birth and gender 1950, male 1962, male
No. of Royal Unibrew shares
(change from 1 January 2021)
15,000 976
(+440)
Board of Directors
ROYAL UNIBREW Annual report 2021 48
Governance
Board of Directors
Board of Directors (continued)
Elected by the employees
Elected by the employees
Member of the Board
Elected by the employees
Position Business Unit Manager in Royal
Unibrew
Terminal worker in Royal Unibrew Professional board member Sales Manager Off-Trade in Royal
Unibrew
Directorships Member of the board of directors of
Chr. Hansen Holding A/S, DK
Special competences Broad international experience
within general management, te-
chnology, quality management and
science within the food and bevera-
ge industry. Global thought leader
diversity and inclusion.
Committees
Initially elected 2014 2018 2019 2018
Term of office 2018-2022 2018-2022 2021-2022 2018-2022
Considered independent No No Yes No
Nationality Danish Danish German/US Danish
Year of birth and gender 1974, male 1954, male 1956, female 1968, male
No. of Royal Unibrew shares
(change from 1 January 2021)
2,400 119 - 180
ROYAL UNIBREW Annual report 2021 49
Governance
Board of Directors (continued)
Member of the Board
Member of the Board
Member of the Board
Member of the Board
Position Professional board member Executive Chairman of the Board,
Marketing Clinic
Professional board member Group CEO of DFDS
Directorships Chairman of the board of directors
of Nordic Solar A/S, DK, and Penneo
A/S, DK. Deputy Chairman of the bo-
ard of directors of Ambu A/S, DK
Member of the board of directors
of Alma Media, Marimekko, Kojo-
mo, Purmo Group, Marketing Clinic
Oy (including subsidiaries) and
Scansecurities Oy, all companies
situated in Finland
Chairman of the board of Ventotene
Holding AS, NO, and Pandora A/S,
DK, Member of the board of direc-
tors of Aspelin, Ramm Gruppen AS
and AKA AS and Axfood AB
Member of the board of directors
of PPC Ejendomme A/S, DK; Dyal 1
ApS, DK and P/S Dyal Investment
Special competences Special expertise within general
management of listed enterprises,
including in-depth insight within
finance and risk management
Special expertise in strategy,
marketing and digitalization within
the food and beverage industry
for FMCG (Fast Moving Consumer
Goods) in the Nordic markets
Broad international experience
within the food and beverage indu-
stry and FMCG (Fast Moving Con-
sumer Goods) as well as special
operational expertise with strategy
execution and transformation.
Broad international expertise
and knowledge within finance, risk
management, M&A and manage-
ment of international corporations
Committees Chairman of the Audit Committee Member of the Audit Committee
Initially elected 2018 2019 2021 2021
Term of office 2021-2022 2021-2022 2021-2022 2021-2022
Considered independent Yes Yes Yes Yes
Nationality Danish Finnish Norwegian Danish
Year of birth and gender 1959, male 1970, female 1964, male 1964, male
No. of Royal Unibrew shares
(change from 1 January 2021)
3,000 450 1,000
(+1,000)
1,500
(+1,500)
ROYAL UNIBREW Annual report 2021 50
Governance
Qualifications Diploma in business economics, informatics and
management accounting, Copenhagen Business
School
Master of Science (MSc) in Economics from
Aarhus University
Position CEO from September 2020
COO April-August 2020
CFO December 2011-March 2020
Joined in 1993
CFO from April 2020
Member of the Board of Directors
April 2018-March 2020
Nationality Danish Danish
Year of birth and gender 1973, male 1974, male
No. of Royal Unibrew shares
(change from 1 January 2021)
79,156
(+ 7,168)
2,033
(+ 850)
Executive Management
ROYAL UNIBREW Annual report 2021 51
Governance
Executive Management
ROYAL UNIBREW Annual report 2021 52
Governance
Shareholder information
2020
2021
44
4
51
56
4
1
1
39
Royal Unibrew
OMX C 25
Peer group
APRIL
28
2022
APRIL
28
2022
APRIL
29
2022
MAY
3
2022
Break-down of shareholders at the end of 2021
Foreign Investors
Danish Investors
Not registered Danish
and foreign investors
Royal Unibrew
Dividend dates for 2022
Resolution at AGM
Last trading date with right
to dividend for 2021
First trading date without
right to dividend for 2021
Distribution of dividend
ROYAL UNIBREW Annual report 2021 53
Governance
ROYAL UNIBREW Annual report 2021 54
Governance
Financial calendar 2022
MARCH
1
2022
APRIL
28
2022
APRIL
28
2022
AUGUST
17
2022
NOV
8
2022
Shareholders, analysts, investors, stockbrokers and
other stakeholders who have questions concerning Royal
Unibrew may contact Ro ya l Unibre w A/S , F ax e Alle 1 ,
DK-464 0F ax e :
Contacts
Jonas Guldborg Hansen (Head of IR)
Jonas.Guldborg@royalunibrew.com
Telephone +45 20 10 12 45
Stine Felten (daily IR contact)
Stine.Felten@royalunibrew.com
Telephone +45 29 23 04 93
Annual Report 2021
Trading Statement Q1
Annual General Meeting
Interim Report H1
Trading Statement Q3
ROYAL UNIBREW Annual report 2021 55
Governance
→
ROYAL UNIBREW Annual report 2021 56
Corporate Social Responsibility
Corporate Social Responsibility
ROYAL UNIBREW Annual report 2021 57
Corporate Social Responsibility
Our long-term sustainability strategy
Disclaimer: The targets apply to our current footprint. It is our ambition that our acquisitions will be integrated, but a grace period may be required
* ”Preferred choice”, as related to the corporate vision; ** without distribution
ROYAL UNIBREW Annual report 2021 58
Corporate Social Responsibility
Overall KPIs
ROYAL UNIBREW Annual report 2021 59
Corporate Social Responsibility
Achievement highlights
ROYAL UNIBREW Annual report 2021 60
Corporate Social Responsibility
Managing sustainability
ROYAL UNIBREW Annual report 2021 61
Corporate Social Responsibility
Tax and EU Taxonomy
ROYAL UNIBREW Annual report 2021 62
Corporate Social Responsibility
Our policies and systems
ROYAL UNIBREW Annual report 2021 63
Corporate Social Responsibility
Our governance structure
KPI 2030
#1
Partner of choice for customers
as sustainable beverage supplier
ROYAL UNIBREW Annual report 2021 64
Corporate Social Responsibility
Our consumers & customers
ROYAL UNIBREW Annual report 2021 65
Corporate Social Responsibility
Health & nutrition
ROYAL UNIBREW Annual report 2021 66
Corporate Social Responsibility
In the market circularity
ROYAL UNIBREW Annual report 2021 67
Corporate Social Responsibility
Local engagement
KPI 2030
50%
Reduction in supply chain emissions
(scope 1,2,3) compared to 2019
ROYAL UNIBREW Annual report 2021 68
Corporate Social Responsibility
Our products
ROYAL UNIBREW Annual report 2021 69
Corporate Social Responsibility
Renewable energy sources
CO
2
from production kg CO
2
/hl
Total energy consumption kWh/hl
Total water consumption Water consumption hl/hl
20
25
30
35
40
45
2,0
2,5
3,0
3,5
4,0
4,5
2017 2020 202120192018
2017 2020 202120192018
50
100
150
200
250
16
18
20
22
24
15
20
25
30
35
2.0
2.4
2.8
3.2
3.6
2017 2020 202120192018
CO
2
from production
(mkg) (kg CO
2
/hl)
Energy consumption
(mKWh) (kWh/hl)
Water consumption
(mhl) (hl/hl)
ROYAL UNIBREW Annual report 2021 70
Corporate Social Responsibility
ROYAL UNIBREW Annual report 2021 71
Corporate Social Responsibility
Product circularity
ROYAL UNIBREW Annual report 2021 72
Corporate Social Responsibility
Supplier road map
KPI 2030
80%
Of employees are
Royal Unibrew ambassadors
ROYAL UNIBREW Annual report 2021 73
Corporate Social Responsibility
Our people
26
55
14
3
1
4.0%
Satisfaction
42
40
15
2
1
4.2%
Pride
35
38
19
6
2
4.0%
Ambassador
Willingness
34
45
15
4
1
4.1%
Engagement
Score
35
46
13
5
1
4.1%
Motivation
Overall engagement score
(%)
Strongly agree Agree Neither agree not disagree
Disagree Strongly disagree
ROYAL UNIBREW Annual report 2021 74
Corporate Social Responsibility
Proudest employees
ROYAL UNIBREW Annual report 2021 75
Corporate Social Responsibility
Sustainability culture
2017 2020 202120192018
0
15
30
45
60
0
4
8
12
16
Lost time incidents
Accidents per million work hours
LTI Lost time incident frequency (LTIF)
ROYAL UNIBREW Annual report 2021 76
Corporate Social Responsibility
Safety culture
ROYAL UNIBREW Annual report 2021 77
Corporate Social Responsibility
Descriptive notes for ESG
Managements statement
Executive Management
Lars Jensen Lars Vestergaard
President & CEO
C
FO
Board of Directors
Walther Thygesen
J
ais Valeur
Chairman Deputy Chairman
Martin Alsø Torben Carlsen Einar Esbensen Nielsen
Heidi Kleinbach-Sauter Claus Kærgaard Peter Ruzicka
Christian Sagild Catharina Stackelberg-Hammarén
ROYAL UNIBREW Annual report 2021 79
Signatures and statements
Independent auditors report
Independent auditor's report
ROYAL UNIBREW Annual report 2021 80
Signatures and statements
ROYAL UNIBREW Annual report 2021 81
Signatures and statements
• Identify and assess the risks of material misstatement
• Obtain an understanding of internal control relevant to the
•
•
• Evaluate the overall presentation, structure and content
•
ROYAL UNIBREW Annual report 2021 82
Signatures and statements
•
• The selection and application of appropriate iXBRL tags, in-
• Ensuring consistency between iXBRL tagged data and the
•
•
• Obtaining an understanding of the company’s iXBRL tagging
• Evaluating the completeness of the iXBRL tagging of the
• Evaluating the appropriateness of the company’s use of
• Evaluating the use of anchoring of extension elements to
• Reconciling the iXBRL tagged data with the audited Con-
Business Registration No 33 96 35 56
ROYAL UNIBREW Annual report 2021 83
Signatures and statements
2021
Consolidated
financial
statements
Consolidated financial statements
ROYAL UNIBREW Annual report 2021 84ROYAL UNIBREW Annual report 2021 84
Consolidated financial statements
Consolidated income statement
Consolidated Income Statement
Consolidated Statement of Comprehensive Income for 1 January - 31 December
mDKK Note 2021 2020
Net profit for the year 1,298 1,198
Other comprehensive income
Items that may be reclassified to the income statement
Exchange adjustment of foreign group enterprises 6 -29
Value adjustment of hedging instruments 5 11
Tax on value adjustment of hedging instruments 10 -2 -2
Tot a l 9 -20
Items that may not be reclassified to the income statement
Actuarial gain on pension schemes 3 1
Tax on actuarial gain on pension schemes 0 0
Tot a l 3 1
Other comprehensive income after tax 12 -19
Total comprehensive income 1,310 1,179
Comprehensive income for the year is attributable to:
Equity holders of Royal Unibrew A/S 1,311 1,164
Non-controlling interests -1 15
Total comprehensive income for the year 1,310 1,179
Consolidated Income Statement for 1 January - 31 December
mDKK Note 2021 2020
Net revenue 5 8,746 7,315
Production costs 7 -4,490 -3,613
Gross profit 4,256 3,702
Sales and distribution expenses 7 -2,189 -1,843
Administrative expenses 7 -415 -344
Earnings before interest and tax (EBIT) 1,652 1,515
Income after tax from investments in associates 13 37 33
Financial income 8 7 3
Financial expenses 9 -49 -46
Profit before tax 1,647 1,505
Tax on the profit for the year 10 -349 -307
Net profit for the year 1,298 1,198
Profit for the year is attributable to:
Equity holders of Royal Unibrew A/S 1,299 1,183
Non-controlling interests -1 15
Comprehensive Income for the year 1,298 1,198
Earnings per share (DKK) 17 26.5 24.1
Diluted earnings per share (DKK) 17 26.5 24.1
ROYAL UNIBREW Annual report 2021 85
Consolidated financial statements
Con income statement Sales and earnings
Sales and earnings
Volumes, net revenue and gross profit
2021 2020 Change, %
Volumes, beverages (THL) 12,331 11,093 11%
Net Revenue (mDKK)* 8,746 7,315 20%
Gross Profit (mDKK) 4,256 3,702 15%
*The IFRS-15 accounting policy concerning customer contracts were reassessed, and some sales costs were
reclassifed to rebates. As a consequence net revenue and sales costs are reduced by 242 million in 2020.
Volumes for 2021 show an aggregated sale of 12.3 million hectolitres of beverages, which was 11% higher com-
pared to 2020. Organically volumes were up 9% compared to 2020.
Net revenue for 2021 increased by 20% and amounted to DKK 8,746 million compared to DKK 7,315 million in
2020. Organic growth increased 15% compared to 2020.
The gross profit for 2021 was DKK 554 million above the 2020 figure and amounted to DKK 4,256 million equiv-
alent to a 15% increase. The gross margin was 2 percentage point below the 2020 margin and represented
48.7% compared to 50.6% for 2020. Gross profit per volume unit was 3% higher than in 2020.
5,000
6,000
7,000
8,000
9,000
H1H1 H1 H1 H1
2017 2018 2019 2020 2021
2017 2018 2019 2020 2021
9,000
10,000
11,000
12,000
13,000
H1H1 H1 H1 H1
Volumes
(thl)
Net revenue
(mDKK)
8,746 mDKK
in net revenue
AN INCREASE OF 20% COMPARED TO 2020
ROYAL UNIBREW Annual report 2021 86
Consolidated financial statements
Sales and earnings
Expenses
2021 2020 Change, %
Sales and distribution expenses (mDKK) 2,189 1,843 19%
Administrative expenses (mDKK) 415 344 21%
Sales and distribution expenses for 2021 was DKK 346 million above the figure 2020 and amounted to DKK
2,189 million compared to DKK 1,843 million for 2020.
Administrative expenses for 2021 showed a DKK 71 million increase compared to 2020 and amounted to DKK
415 million compared to DKK 344 million for 2020.
EBITDA, EBIT and financials
2021 2020 Change, %
EBITDA (mDKK) 2,020 1,861 9%
Depriciation -368 -346 -7%
EBIT (mDKK) 1,652 1,515 9%
Net interest expenses -42 -43 -2%
Income after tax from investments 37 33 12%
Earnings before interest, tax, depreciation and amortization (EBITDA) for 2021, calculated as EBIT 1,652 million
(2020: DKK 1515 million) adding depriciation DKK 368 million (2020: DKK 346 million ) showed a DKK 159 million
increase and amounted to DKK 2,020 million compared to DKK 1,861 million for 2020. EBIT for 2021 amounted
to DKK 1,652 million, which is DKK 137 million above the 2020 figure. The positive development in both EBITDA
and the EBIT are primarily attributable to the Western Europe segment, which where positivly affected by ac-
quistions.
The EBIT margin for 2021 was 18.9% compared to 20.7% realized after IFRS-15 restatement in 2021.
Net financials expenses for 2021 were at the same level as last year, aggregating an expense of DKK 42 million.
Financial expenses were DKK 49 million on a net basis compared to DKK 46 million in 2020, mainly due to the
higher debt, which is linked to the acquisitions.
2017 2018 2019 2020 2021
0
500
1,000
1,500
2,000
2,500
10
15
20
25
30
H1H1 H1 H1 H1
EBITDA AND EBITDA MARGIN
(mDKK) (%)
EBITDA EBITDA margin
2017 2018 2019 2020 2021
300
500
700
900
1,100
1,300
1,500
1,700
14
15
16
17
18
19
20
21
EBIT and EBIT margin
(mDKK) (%)
EBIT EBIT margin
ROYAL UNIBREW Annual report 2021 87
Consolidated financial statements
Sales and earnings
Profit and earnings per share
2021 2020 Change, %
Profit before tax (mDKK) 1,647 1,505 9%
Tax on profit (mDKK) -349 -307 14%
Net profit (mDKK) 1,298 1,198 8%
Earnings per share (DKK) 26.5 24.1 10%
Profit before tax for 2021 was DKK 142 million above the 2020 figure and amounted to DKK 1,647 million com-
pared to DKK 1,505 million for 2020, equivalent to an increase of 9%.
Tax on the profit for 2021 was an expense of DKK 349 million and corresponds to a tax rate of 21.2% on the
profit excluding income after tax from investments in associates.
The net profit for 2021 amounted to DKK 1,298 million, which is DKK 100 million above the 2020 figure, equiva-
lent to an increase of 8%.
The earnings per share increased in 2021 to DKK 26.5 per share compared to 24.1 in 2020, equivalent to an in-
crease of 10%.
The Parent Company’s profit for the year amounted to DKK 1,206 million compared to DKK 1,070 million for
2020. Dividend income from subsidiaries and associates amounted to DKK 550 million compared to DKK 531
million in 2020.
ROYAL UNIBREW Annual report 2021 88
Consolidated financial statements
Consolidated Balance sheet
Consolidated Balance Sheet
Assets at 31 December
mDKK Note 2021 2020
NON-CURRENT ASSETS
Intangible assets 11 5,861 4,408
Property, plant and equipment 12 2,734 2,455
Investments in associates 13 153 131
Other non-current investments 14 23 21
Non-current assets 8,771 7,015
CURRENT ASSETS
Inventories 15 780 517
Receivables 16 1,188 639
Prepayments 89 54
Cash and cash equivalents 86 81
Current assets 2,143 1,291
Assets 10,914 8,306
Liabilities and Equity at 31 December
mDKK Note 2021 2020
EQUITY
Share capital 17 98 99
Other reserves 716 716
Retained earnings 1,808 1,827
Proposed dividend 708 666
Equity contributable to equity holders of Royal Unibrew A/S 3,330 3,308
Non-controlling interests 12 24
Equity 3,342 3,332
LIABILITIES
Non-current liabilities
Deferred tax 18 747 554
Mortgage debt 3, 20 1,003 831
Credit institutions 3, 20 1,995 1,293
Other payables 26 52
Non-current liabilities 3,771 2,730
Current liabilities
Mortgage debt 3, 20 14 19
Credit institutions 3, 20 610 131
Trade payables 3 1,721 1,047
Provisions 11 10
Corporation tax 10 18 9
Other payables 19 1,427 1,028
Current liabilities 3,801 2,244
Liabilities 22 7,572 4,974
Liabilities and equity 10,914 8,306
ROYAL UNIBREW Annual report 2021 89
Consolidated financial statements
Con Balance sheet and financial position
Balance sheet and financial position
Balance Sheet
Royal Unibrew’s balance sheet 2021 amounted to DKK 10,914 million, which is DKK 2,608 million above the
2020 figure. The increase is mainly caused by the acquisitons in 2021 plus a general higher activity level com-
pared to COVID-19 impacted 2020, resulting in both higher receivables and payables.
Invested capital increased by DKK 1,523 million from 2020 to 2021. ROIC excluding goodwill calculated on a
running 12 months basis ended at the same level as last year at 31.8%. ROIC including goodwill decreased by 1.0
percentage points to 19.2%, impacted by the increased goodwill from acquisitions.
Compared to 2020, the equity ratio decreased by 9 percentage points in 2021 amounting to 31% end of 2021
compared to 40% at the end of 2020.
Equity at the end of December 2021 amounted to DKK 3,342 million compared to DKK 3,332 million at the end
of 2020. The DKK 10 million increase comprised the positive comprehensive income of DKK 1,310 million (2020:
DKK 1,179 million) reduced by distribution to shareholders of DKK 1,239 million (2020: DKK 962 million) by way
of dividend and share buy-backs.
Net interest-bearing debt for 2021 showed a DKK 1,343 million increase and amounted to DKK 3,536 million at
31 December 2021 compared to DKK 2,193 million at the end of 2020. The increase in net interest-bearing debt
is linked to the acquisitions in 2021. The net interest-bearing debt to EBITDA ratio (running 12 months' basis)
was 1.7x (2020: 1.2x).
Funds tied up in working capital showed a negative DKK 1,102 million at the end of December 2021 compared
to a negative DKK 875 million at the end of 2020. Funds tied up in working capital thus decreased by DKK 227
million in 2021 (2020: decrease of DKK 204 million), mainly due to changed payment terms of excise payment in
Finland, channel mix and impact from acquisitions.
Funds tied up in inventories, trade receivables and trade payables increased DKK 112 million (2020: decrease of
DKK 76 million), whereas funds tied up in the other elements of working capital such as excise taxes and with-
holding tax on salaries increased by DKK 339 million (2020: decrease of DKK 128 million).
2017 2018 2019 2020 2021
0
2,000
4,000
6,000
8,000
2017 2018 2019 2020 2021
-1,500
-1,000
-500
0
500
2017 2018 2019 2020 2021
0
10
20
30
40
ROIC excl goodwill
ROIC incl goodwill
Net working capital
(mDKK)
ROIC
(%)
Invested capital
(mDKK)
3,342 mDKK
in equity
SAME LEVEL AS LAST YEAR
ROYAL UNIBREW Annual report 2021 90
Consolidated financial statements
Consolidated Cash flow statement
Consolidated Cash Flow Statement
for 1 January - 31 December
mDKK Note 2021 2020
Net profit for the year 1,298 1,198
Adjustments for non-cash operating items 21 726 670
Change in working capital 104 227
Received financial income 7 4
Paid financial expenses -49 -46
Financial expenses related to leasing -1 -2
Corporation tax paid -332 -313
Cash flows from operating activities 1,753 1,738
Dividends received from associates 21 21
Sale of property, plant and equipment 16 8
Purchase of property, plant and equipment -426 -280
Acqusition of enterprises 24 -1,218 -6
Purchase of intangible assets and fixed asset investment 3 0
Sale of intangible assets and fixed asset investment 0 -1
Cash flows from investing activities -1,604 -258
mDKK Note 2021 2020
Debt financing:
Proceeds from increased drawdown on credit facilities etc. 20 1,253 149
Repayment on credit facilities 20 -92 -579
Repayment on lease facilities 20 -68 -73
Dividends paid to shareholders -653 -600
Dividend to minority shareholders -4 0
Acquisition of shares for treasury -582 -362
Cash flows from financing activities -146 -1,465
Change in cash and cash equivalents 3 15
Cash and cash equivalents at 1 January 81 72
Exchange adjustment 2 -6
Cash and cash equivalents at 31 December 86 81
Free cash flow
Net cash from operating activities 1,753 1,738
Net cash used in investing activities -389 -251
Payment of lease liabilities -68 -73
Free cash flow 1,296 1,414
ROYAL UNIBREW Annual report 2021 91
Consolidated financial statements
Con Cash flow
Cash Flow
Cash Flow Statement
Cash flows from operating activities for 2021 amounted to DKK 1,753 million (2020: DKK 1,738 million) compris-
ing DKK 2,024 million (2020: DKK 1,868 million) of profit for the period adjusted for non-cash operating items,
positive working capital cash flow of DKK 104 million (2020: a positive DKK 227 million), net interest paid of DKK
43 million (2020: DKK 44 million) and taxes paid of DKK 332 million (2020: DKK 313 million).
The free cash flow for 2021 amounted to DKK 1,296 million, which was a decrease of DKK 118 million compared
to 2020. Cash flows from operating activities and dividend from associates showed a DKK 15 million increase
compared to the 2020 figures, and net investments in property, plant and equipment showed a DKK 138 million
decrease, comprising DKK 146 million higher gross investments and DKK 8 million higher revenues from asset
divestments. Further repayment on lease facilities decreased by DKK 5 million.
Net interest bearing debt
NIBD/EBITDA lb 12 months
Due to adoption of IFRS-16 (leases) in 2018
using the moditifed retrospective approach
2017 are not comparable to 2018-2021
Due to IFRS-15 restatement, the net revnue
figures for 2020 and 2021 are not comparable
with 2018-2019
2017 2018 2019 2020 2021
0
1,000
2,000
3,000
4,000
0.0
0.5
1.0
1.5
2.0
2017 2018 2019 2020 2021
0
500
1,000
1,500
2,000
2017 2018 2019 2020 2021
0.0
1.5
3.0
4.5
6.0
NIBD and NIBD/EBITDA
(mDKK)
Free cash flow
(mDKK)
1,296 mDKK
free cash flow
DECREASE OF 118 MDKK COMPARED TO 2020
Investments in % of net revenue
(%)
ROYAL UNIBREW Annual report 2021 92
Consolidated financial statements
Consolidated Statement of changes in equity
Consolidated Statement of Changes in Equity
for 1 January - 31 December 2021
mDKK
Share
capital
Share
premium
account
Translation
reserve
Hedging
reserve
Total other
reserves
Retained
earnings
Proposed
dividend for
the year
Parents
company
share of
equity
Minority
share To ta l
Equity at 31 December 2020 99 761 -53 8 716 1,827 666 3,308 24 3,332
Changes in equity in 2021
Net profit for the year 0 1,299 1,299 -1 1,298
Other comprehensive income 6 5 11 3 14 14
Tax on other comprehensive income 0 -2 -2 -2
Total comprehensive income 0 0 6 5 11 1,300 0 1,311 -1 1,310
Dividends paid to shareholders 0 -653 -653 -4 -657
Dividend on treasury shares 0 13 -13 0 0
Acquisition of shares for treasury 0 -582 -582 -582
Proposed dividend 0 -708 708 0 0
Capital reduction -1 -8 -8 9 0 0
Share-based payments 0 4 4 4
Minority share transactions 0 -56 -56 -7 -63
Tax on equity transactions 0 -2 -2 -2
Total shareholders -1 -8 0 0 -8 -1,322 42 -1,289 -11 -1,300
Total changes in equity in 2021 -1 -8 6 5 3 -22 42 22 -12 10
Equity at 31 December 2021 98 753 -47 13 719 1,805 708 3,330 12 3,342
The share capital at 31 December 2021 amounts to DKK 97,600,000 (2020: DKK 98,700,000 ) and is distributed in shares of DKK 2 each.
Proposed dividend for the year amounts to DKK 14.50 per share (2020: DKK 13.50 per share) based on the shared capital 31 December 2021.
ROYAL UNIBREW Annual report 2021 93
Consolidated financial statements
Consolidated Statement of Changes in Equity
for 1 January - 31 December 2020
mDKK
Share
capital
Share
premium
account
Translation
reserve
Hedging
reserve
Total other
reserves
Retained
earnings
Proposed
dividend for
the year
Parents
company
share of
equity
Minority
share To ta l
Equity at 31 December 2019 100 773 -24 -3 746 1,641 611 3,098 9 3,107
Changes in equity in 2020
Net profit for the year 0 1,183 1,183 15 1,198
Other comprehensive income -29 11 -18 1 -17 -17
Tax on other comprehensive income 0 -2 -2 -2
Total comprehensive income 0 0 -29 11 -18 1,182 0 1,164 15 1,179
Dividends paid to shareholders 0 -600 -600 -600
Dividend on treasury shares 0 2 -2 0 0
Acquisition of shares for treasury 0 -362 -362 -362
Proposed dividend 0 -657 657 0 0
Capital reduction -1 -12 -12 13 0 0
Share-based payments 0 7 7 7
Tax on equity transactions 0 1 1 1
Total shareholders -1 -12 0 0 -12 -996 55 -954 0 -954
Total changes in equity in 2020 -1 -12 -29 11 -30 186 55 210 15 225
Equity at 31 December 2020 99 761 -53 8 716 1,827 666 3,308 24 3,332
ROYAL UNIBREW Annual report 2021 94
Consolidated financial statements
Con Notes contents
Notes to Consolidated Financial Report
Descriptive notes
1 Basis of preparation of Consolidated Annual Report ... 96
2 Significant accounting estimates and judgements ..... 98
3 Financial risk management ................................. 99
4 Derivatives .................................................... 101
5 Segment reporting and revenue .......................... 102
Notes referring to Income Statement, Balance
Sheet and Cash Flow Statement
6 Staff expenses ............................................... 105
7 Expenses broken down by nature ........................ 107
8 Financial income ............................................. 108
9 Financial expenses .......................................... 108
10 Tax on the profit for the year ............................... 109
11 Intangible assets ............................................ 109
12 Property, plant and equipment ............................ 112
13 Investments in associates ................................. 114
14 Other fixed asset investments ............................ 115
15 Inventories ................................................... 116
16 Receivables ................................................... 116
17 Equity and basis of earnings/cash flow per share ..... 117
18 Deferred tax .................................................. 119
19 Other current payables ..................................... 119
20 Debts .......................................................... 120
21 Cash Flow statement ....................................... 121
Other notes
22 Contingent liabilities, security and other liabilities ..... 121
23 Related parties ............................................... 122
24 Acqusition of enterprises .................................. 122
25 Events after the reporting period ......................... 125
ROYAL UNIBREW Annual report 2021 95
Consolidated financial statements
Con Note 1
Note 1 Basis of preparation of Consolidated Annual Report
BASIS OF PREPARATION OF CONSOLIDATED ANNUAL REPORT
Royal Unibrew A/S is a limited liability company registered in Denmark. The Financial Statements for the period 1
January - 31 December 2021 presented in the Annual Report comprise both Consolidated Financial Statements
of Royal Unibrew A/S and its subsidiaries (Group) and separate Parent Company Financial Statements.
The Financial Statements of Royal Unibrew for 2021 have been prepared in accordance with International Fi-
nancial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for
financial statements, cf the Danish Statutory Order on Adoption of IFRS issued pursuant to the Danish Financial
Statements Act.
The Board of Directors and the Executive Management considered and adopted the Annual Report of Royal
Unibrew A/S for 2021 on 1 March 2022. The Annual Report will be submitted for adoption by the shareholders of
Royal Unibrew A/S at the Annual General Meeting on 28 April 2022.
The Financial Statements are presented in Danish kroner (DKK).
Reclassification
Reassesment of IFRS 15, concerning customer contracts.
We have reassessed the IFRS 15 accounting policy concerning customer contracts and on that background we
have changed our handling of some customer contract-related costs. This means that some sales costs are re-
classified to rebates, and as a consequence revenue and sales costs are reduced by the same amount, whereas
EBIT is unchanged. The consequences of the reassesed comparables can be found on page 149
§
Significant accounting policies
This section describes the general accounting policies applied by Royal Unibrew. A detailed description of the
accounting policies applied and critical estimates made with respect to specific reported amounts is presented
in the relevant notes. The purpose of this is to create full transparency of the disclosed amounts by providing a
total description of the relevant accounting policy, the critical estimates and the numerical information for each
note.
The description of accounting policies in the notes constitutes part of the overall description of Royal Unibrew's
accounting policies.
Accounting policies are unchanged from last year except from implementation of:
• Amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16: Interest Rate Benchmark Reform – Phase 2
• Amendment to IFRS 16 Leases: Covid 19- Related Rent Concessions
None of the amendments have had any impact on recognition and measurement on the Group's consolidated
financial statements 2021.
New and amended standards and interpretations that have not yet taken effect
At the time of publication of this Annual Report, the IASB has issued new and amended financial reporting
standards and interpretations which are potentially relevant, but not mandatory, for Royal Unibrew A/S at the
time of preparation of the Annual Report for 2021:
• Amendments to IFRS 3 Business Combinations: Reference to the Conceptual Framework, effective 1 January
2022.
• Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use, effective 1 January
2022.
• Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Onerous Contracts—Cost of
Fulfilling a Contract, effective 1 January 2022.
• Annual Improvements 2018-2020, effective 1 January 2022.
• Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-cur-
rent, effective 1 January 2023.
• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Ac-
counting policies, effective 1 January 2023.
• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Ac-
counting Estimates, effective 1 January 2023.
• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction, effective 1 January 2023.
The adopted, not yet effective standards and interpretations will be implemented as they become mandatory
for Royal Unibrew A/S. None of the new standards or interpretations are expected to have a significant impact
on recognition and measurement for Royal Unibrew A/S.
Consolidated Financial Statements
The Consolidated Financial Statements comprise Royal Unibrew A/S (the Parent Company) and enterprises in
which the Parent Company exercises control (subsidiaries).
Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence
but not control are classified as associates.
ROYAL UNIBREW Annual report 2021 96
Consolidated financial statements
Note 1 Basis of preparation of Consolidated Annual Report (continued)
The Consolidated Financial Statements are prepared on the basis of Financial Statements of all group enterpris-
es prepared under the Group's accounting policies by combining accounting items of a uniform nature. Elimina-
tion is made of intercompany income and expenses, unrealised intercompany profits and losses, balances and
shareholdings. Comparative figures are not adjusted for newly acquired, sold or wound-up enterprises.
Acquired enterprises are recognised as of the date of acquisition. Enterprises disposed of are recognised in the
consolidated income statement up until the date of disposal.
Non-controlling interests's share of profit/loss for the year and of the equity in subsidiaries is included as part of
Royal Unibrews profit and equity respetively, but shown as seperate items.
Translation policies
For each of the reporting entities of the Group, a functional currency is determined. The functional currency is
the currency of the primary economic environment in which the reporting entity operates. Transactions in other
currencies than the functional currancy are transactions in foreign currencies.
Transactions in other currencies than the functional currency are initially translated into Danish kroner (DKK)
at the exchange rates at the dates of transaction. Receivables, payables and other monetary items in foreign
currencies not settled at the balance sheet date are translated at the exchange rates at the balance sheet date.
Exchange adjustments arising due to differences between the transaction date rates and the rates at the dates
of payment or the rates at the balance sheet date, respectively, are recognised in financial income and expenses
in the income statement. Property, plant and equipment and intangible assets, inventories and other non-mone-
tary asset purchase in foreign currencies and measured at historical cost are translated at the transaction date
rates.
On recognition in the Consolidated Financial Statements of enterprises with another functional currency than
Danish kroner (DKK), income statements are translated at average annual exchange rates. Balance sheet items
are translated at the exchange rates at the balance sheet date.
Exchange adjustments arising on the translation of the opening balance sheet items of foreign enterprises at
exchange rates at the balance sheet date and on the translation of income statements from average exchange
rates to exchange rates at the balance sheet date are recognised in other comprehensive income. Similarly,
exchange adjustments arising due to changes made directly in equity of foreign enterprises are recognised in
other comprehensive income.
On recognition in the Consolidated Financial Statements of associates with a functional currency that differs
from the presentation currency of the Parent Company, the share of results for the year is translated at average
exchange rates, and the share of equity including goodwill is translated at the exchange rates at the balance
sheet date. Exchange adjustments arising on the translation of the share of the opening equity of foreign as-
sociates at exchange rates at the balance sheet date and on the translation of the share of results for the year
from average exchange rates to exchange rates at the balance sheet date are recognised in other comprehen-
sive income and classified in equity under a separate translation reserve.
ROYAL UNIBREW Annual report 2021 97
Consolidated financial statements
Con Note 2
Note 2 Significant accounting estimates and judgements
In connection with the preparation of the Parent Company and Consolidated Financial Statements, Manage-
ment makes estimates and judgements as to how recognition and measurement of revenue, assets and liabili-
ties should take place based on the accounting policies applied.
Judgements as an element in significant accounting policies
The calculation of carrying amounts of certain assets and liabilities requires judgement as to how assets and
liabilities should be classified in the Financial Statements and how future events will affect the value of these
assets and liabilities at the balance sheet date. In connection with the financial reporting for 2021, the following
judgments have been concidered material affecting the related items as described in relevant notes, see list to
the right.
Critical accounting estimates
Management's estimates are based on assumptions which Management considers reasonable but which are
inherently uncertain and unpredictable. In connection with the financial reporting for 2021, the following critical
estimates have been made as described in the notes, see list to the right.
Accounting policies, judgements as an element in significant accounting
policies as well as critical accounting estimates are described in the notes:
Note
Derivative financial instruments 4
Segment reporting and revenue 5
Share-based payments 6
Expenses 7
Financial income 8
Financial expenses 9
Corporation tax 10
Intangible assets 11
Property, plant and equipment 12
Investments in associates 13
Other fixed asset investments 14
Inventories 15
Receivables 16
Equity 17
Deferred tax 18
Deposit returnable packaging 19
Debt 20
Cash Flow Statement 21
Purchase Price Allocation (PPA) 24
Legends
Significant accounting policies
Judgements as an element in significant accounting policies
Critical accounting estimates
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
ROYAL UNIBREW Annual report 2021 98
Consolidated financial statements
Con Note 3
Note 3 Financial risk management
The Group's financial risks are managed centrally according to the Treasury Policy approved by the Board
of Directors, which includes guidelines for handling of currency-, interest rate-, liquidity- and credit risks.
Commodity risks are also managed centrally according to the commodity risk policy approved by the Board of
Directors.
Currency risk
Royal Unibrew is exposed to currency risks derived from the geographic spread of the Group's business
activities. This currency exposure is reflected through the activities in the subsidiaries and the Parent
Company's export activities where cash flows are earned in foreign currencies, and in connection with the
purchase of raw materials primarily in EUR and USD, including purchases which involve an indirect USD risk on
the part of the purchase price related to the raw material element. Purchases are in all materiality performed
in the currencies in which the Group has income, which results in a total reduction of the currency risk.
Furthermore, the translation of loans to/from subsidiaries as well as the Group's net debt is subject to currency
risk where these are not established in DKK.
The above describes Royal Unibrew's transaction risks, which are hedged actively according to the Treasury
Policy. EUR is not hedged as the risk is considered too immaterial due to the Danish fixed rate policy towards
EUR. The objective is to reduce negative effects on the Group's profit and cash flows (cf. note 4). The risk is
therefore monitored and hedged continually. The Group's cash flows are primarily in EUR, USD, CAD, GBP, SEK
and NOK.
The total gross currency risk (before hedging) on the balance sheet items was calculated on 31 December 2021.
The following table shows the sensitivity to a positive change in the rates on 31 December 2021 with all other
variables unchanged. A negative change has a corresponding effect merely with the sign reversed.
Royal Unibrew's translation risks relates primarily to US (USD), Canada (CAD), UK (GBP), Norway (NOK), Sweden
(SEK), France, Italy, Finland, Latvia, Estonia as well as Lithuania (EUR). The translation risk related to Royal
Unibrew's investments in foreign subsidiaries is, as a general rule, not hedged.
Financial risks such as the loss of competitive strength due to long-term exchange rate changes are not hedged
by financial instruments but are included in Royal Unibrew's strategic considerations and risk management.
Interest rate risk
Royal Unibrew's interest rate risk at consolidation is substantially related to the Group's loan portfolio which is
primarily denominated in DKK and EUR. Interest rate changes will affect the market value of fixed-interest loans
as well as interest payments on floating-rate liabilities. Debt is established only in currencies in which the Group
has commercial activities.
In Royal Unibrew’s assessment, the key interest rate risk is related to the immediate effect of interest rate
changes on the Group's interest expenses and Royal Unibrew focuses only secondarily on changes in the
market value of the debt. It is the group policy to limit the effect of interest rate changes on profit and cash
flows while, within this framework, also achieving the lowest possible financing cost.
At the end of 2021, 45% (2020: 52%) of the mortgage and bank debt is with fixed interest rate and hedged with
interest rates swaps, having a duration between 3-7 years (2020: 4-5 years). Change in the interest rate of one
percentage point will affect the Group's interest expenses by approx. +/- DKK 14 million (2020: approx. +/- DKK 7
million), and the interest expenses of the Parent Company by approx. +/- DKK 13 million (2020: approx. +/- DKK
5 million).
Credit risks
The Group’s credit risks relates primarily to receivables and counterparty risks.
The Group's counterparty risks comprise both from commercial and financial risk. The commercial
counterparty risk relates primarily to business agreements with a built-in element of firm rate/price. The
financial counterparty risk relates to hedging agreements and net bank deposits. The financial counterparty
risk is actively reduced by distributing bank deposits with banks in accordance with the credit rating criteria
determined in the Treasury Policy.
Royal Unibrew seek to limit risks relating to credit granting to customers in export markets through extensive
use of insurance cover and other types of hedging of payments. Where effective hedges cannot be established,
Royal Unibrew has established procedures for approval of such risks. The credit risk is generally higher related
to customers in the on-trade sales channel than off-trade customers. This difference in credit risk is addressed
through various approval procedures and credit granting conditions for customers in the two sales channels.
In Finland, risks on major single receivables from customers are reduced through sale of the receivables
mDKK Change
Earnings
impact
before tax
2021
Earnings
impact
before tax
2020
Equity
impact
2021
Equity
impact
2020
EUR 0.1% -0.6 -1.1 -0.6 -1.1
USD 10% 5.1 2.5 5.1 2.5
GBP 10% -1.3 -1.1 -1.3 -1.1
CAD 10% 3.0 2.1 3.0 2.1
NOK 10% 64.3 - 64.3 -
SEK 10% 0.0 - 0.0 -
ROYAL UNIBREW Annual report 2021 99
Consolidated financial statements
factoring DKK 386 million (2020: DKK 481 million). The decrease in facotoring was due to the extraordinary beer
campaign in Finland last year. Credit risks related to trade receivables are reduced by setting off accrued bonus.
On 31 December 2021, accrued bonus amounts to DKK 243 million (2020: DKK 188 million) set off against trade
receivables.
The maximum credit risk corresponds to the carrying amount of the financial assets.
Liquidity risks
It is group policy that its cash resources should be adequate to meet the expected liquidity requirements in
the current and next financial year. The cash resources may be bank deposits, short-term bonds, and unutilized
credit facilities.
The long-term liquidity risks are managed by having loans with different durations, and by having a target for the
minimum average duration of the loan portfolio. It is the group policy to renegotiate loan facilities in timely manner.
At the end of 2021, mortgage debt amounted to DKK 1,017 million (2020: DKK 850 million) with an average time
to maturity of 12.8 years (2020: 9.3 years). Bank debt comprises drawn committed bank credit facilities and
long term loan with an agreed time to maturity between 2 to 7 years (2020: 2 to 5 years)
Capital management
Royal Unibrew wants to ensure structural and financial flexibility as well as competitive power. To ensure this,
continuous assessment is performed to determine the appropriate capital structure of Royal Unibrew. It is
the target that the Group's net interest-bearing debt should not exceed 2.5 x EBITDA. The target for dividend
payout ratio is 40-60% of the profit.
At the operational level, continuous efforts are directed at optimizing working capital. Subject to adequate
capacity and capability, investments in production facilities will be limited to replacement of individual
components, related to specific products or to optimization of selected processes as well as maintenance.
Commodity risks
The commodity risks relates primarily to the purchasing of cans (aluminium), malt (barley), hops and packaging
materials (cardboard) as well as energy. The commodity risks is actively hedged commercially and financially in
accordance with the Group's commodity risk policy.
The objective of managing Royal Unibrew's commodity risk is to achieve a smooth and time-differentiated
effect of commodity price increases, which is primarily achieved by entering into fixed-price agreements with
the relevant suppliers. As regards to the Group's purchase of cans, financial contracts have been perfomed to
hedge the risk of aluminium price increases. Exchange rate changes with respect to the settlement currency of
aluminium (USD) are an element of the overall currency risk management.
Note 3 Financial risk management (continued)
The most significant part of purchases for the next 12 months has, in accordance with the commodity risk
policy, been hedged by entering into supplier agreements and financial contracts. A +/-10% change in the price
of aluminium on the unhedged position will have an effect on the income statement of approx. +/- DKK 13 million
(2020: DKK 7 million).
Financial liabilities
31/12 2021
Group
(mDKK)
Contractual
cash flows
Maturity
< 1 year
Maturity
> 1 year
< 5 years
Maturity
> 5 years
Carrying
amount
Non-derivative financial instruments:
Financial debt, gross 3,495 577 1,931 987 3,362
Leasing 268 91 146 31 260
Trade payables 1,721 1,721 1,721
Other payables 598 572 26 598
Tot a l 6,082 2,961 2,103 1,018 5,941
The debt is classified as "debt at amortized cost".
31/12 2020
Group
(mDKK)
Contractual
cash flows
Maturity
< 1 year
Maturity
> 1 year
< 5 years
Maturity
> 5 years
Carrying
amount
Non-derivative financial instruments:
Financial debt, gross 2,185 121 1,616 448 2,121
Leasing 156 72 81 3 153
Trade payables 1,047 1,047 1,047
Other payables 475 423 52 475
Tot a l 3,863 1,663 1,749 451 3,796
The debt is classified as "debt at amortized cost" with DKK 3,794 million and "debt at fair value" with DKK 2 mil-
lion.
ROYAL UNIBREW Annual report 2021 100
Consolidated financial statements
Con Note 4
Note 4 Derivatives
Currency, commodity and interest rate risks and use of derivative financial instruments
Hedging of currency, commodity and interest rate risk
The risks is managed by entering into derivatives such as forward contracts and swaps.
On 31 December 2021, the Group had short term FX contracts, covering the balance sheet exposure end of
2021 in USD, CAD, NOK, SEK and GBP.
The Group actively hedges the commodity risk related to aluminium. On 31 December 2021, the Group has
hedged 63% (2020: 61%) of the expected comsumption within the next 12 month.
The interest rate swaps hedge the interest rate exposure on the mortgage debt in Denmark and Finland.
Hedge effectiveness is assessed on a regular basis by comparing changes in the value and timing of the under-
laying exposure, with the value and timing of the designated hedging transaction.
Derivative financial instruments entered into to hedge expected future transactions and qualifying as hedge
accounting under IFRS 9:
Group
(mDKK) 2021 2020
Period
Deferred
gain (+) /
loss (-)
Deferred
gain (+) /
loss (-)
Forward contracts:
USD 0 - 1 year 0 0
CAD 0 - 1 year 0 0
GBP 0 - 1 year 0 0
NOK 0 - 1 year 4 0
SEK 0 - 1 year 0 0
Tot a l 4 0
Commodity hedge:
Mainly aluminium 0 - 1 year 8 10
Tot a l 8 10
Interest rate swaps:
Mortgage and bank loans 4 year 5 -2
Total hedging instruments 17 8
The fair value of the hedging instruments is included in current liabilities under other payables.
The derivative financial instruments applied in 2021 and 2020 may all be classified as level-2 instruments in the
IFRS fair value hierarchy.
The determined fair value of derivative financial instruments is based on observable market data such as yield
curves or forward rates.
ROYAL UNIBREW Annual report 2021 101
Consolidated financial statements
Con Note 5
Realized hedging transactions in the income statement
mDKK 2021 2020
Realized hedging transactions are included in the income statement as
follows:
Net revenue includes currency hedges of 0 0
Production costs include foreign currency and commodity hedges of -38 -10
Financial income and expenses include currency, commodity and interest rate
hedges of 1 -4
Tot a l -37 -14
§
Derivative financial instruments
Derivative financial instruments are initially recognized in the balance sheet at fair value and are subsequently
remeasured at their fair values. Positive and negative fair values of derivative financial instruments are included
as other receivables and other payables, respectively.
Changes in the fair values of derivative financial instruments that are designated and qualify as fair value hedges
of a recognized asset or a recognized liability are recognized in the income statement as are any changes in the
value of the hedged asset or the hedged liability.
Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of fu-
ture cash flows are recognized in other comprehensive income. Income and expenses relating to such hedging
transactions are transferred from other comprehensive income on realization of the hedged item and are recog-
nized in the same entry as the hedged item.
For derivative financial instruments which do not meet the criteria for hedge accounting, changes in fair values
are recognized on a current basis in financial income and expenses in the income statement.
Derivative financial instruments
When entering into derivative financial instruments, Management exercises judgement to determine whether
the instrument qualifies as effective hedging of recognized assets or liabilities or expected future cash flows.
Derivative financial instruments recognized are tested for effectiveness at least quarterly, and any ineffective-
ness identified is recognized in the income statement.
Note 4 Derivatives (continued) Note 5 Segment reporting and revenue
The Group’s results, assets and liabilities break down as follows on segments:
mDKK
Western
Europe Baltic Sea International
Un-
allocated Tot a l
2021
Net revenue* 4,491 3,338 917 8,746
Amortization and depreciation 169 173 25 1 368
Impairment 0
Earnings before interest and tax
(EBIT) 857 642 176 -23 1,652
Financial income 7 7
Financial cost -11 -9 -1 -28 -49
Share of income from associates 37 37
Profit/loss before tax 890 633 175 -51 1,647
Ta x -349 -349
Profit/loss for the year 890 633 175 -400 1,298
Assets 5,156 5,534 71 10,761
Associates 153 153
Total assets 5,309 5,534 71 0 10,914
Additions of property, plant and
equipment 392 185 0 577
Additions by acquisitions
(adjustment fair value) 704 837 1,541
Liabilities** 1,572 1,970 30 4,000 7,572
Sales (million hectolitres) 5.5 5.6 1.2 12.3
* all goods sold in International are produced by group entities in Western Europe
** Unallocated liabilities include the Parent Company's net interest-bearing debt
ROYAL UNIBREW Annual report 2021 102
Consolidated financial statements
Note 5 Segment reporting and revenue (continued)
The Group’s results, assets and liabilities break down as follows on segments:
mDKK
Western
Europe Baltic Sea International
Un-
allocated Tot a l
2020
Net revenue* 3,402 3,141 772 7,315
Amortisation and depreciation 150 171 23 2 346
Impairment 0
Earnings before interest and tax
(EBIT) 687 675 171 -18 1,515
Financial income 1 2 3
Financial cost -7 -13 0 -26 -46
Share of income from associates 33 33
Profit/loss before tax 714 664 171 -44 1,505
Ta x -307 -307
Profit/loss for the year 714 664 171 -351 1,198
Assets ** 2,766 5,353 56 8,175
Associates 131 131
Total assets 2,897 5,353 56 0 8,306
Additions of property, plant and
equipment 268 102 3 373
Additions by acquisitions
(adjustment fair value) -58 -58
Liabilities*** 682 1,817 21 2,454 4,974
Sales (million hectolitres) 4.7 5.4 1.0 11.1
* The IFRS-15 accounting policy concerning customer contracts were reassessed, and some sales costs were reclas-
sifed to rebates, and as a consequence net revenue and sales costs are reduced with the same amount in 2020 and
onwards. See note 1 Basis of preparation of Consolidated Annual Report.
** all goods sold in International are produced by group entities in Western Europe
*** Unallocated liabilities include the Parent Company's net interest-bearing debt
Geographically, revenue and non-current assets break down as follows:
2021 2020 2021 2020
mDKK
Net
revenue
Net
revenue
Non-
current
assets
Non-
current
assets
Denmark 2,428 2,117 1,769 1 , 574
Italy 884 676 661 663
Finland 2,511 2,362 3,372 3,384
Other countries 2,923 2,160 2,920 1,394
Tot a l 8,746 7,315 8,722 7,015
The geographic breakdown is based on the geographic location of the Group's external customers and com-
prises countries that individually account for more than 10% of the Group's net revenue as well as the country in
which the Group is headquartered.
No single customer accounts for revenue in excess of 10% of the Group's net revenue.
ROYAL UNIBREW Annual report 2021 103
Consolidated financial statements
Note 5 Segment reporting and revenue (continued)
Segment reporting 2017 - 2021
The Group’s activities break down as follows on segments:
mDKK
Western
Europe Baltic Sea International
Un-
allocated Group
2021
Net revenue 4,491 3,338 917 8,746
Earnings before interest and tax
(EBIT) 857 642 176 -23 1,652
Assets 5,309 5,534 71 10,914
Liabilities 1,572 1,970 30 4,000 7,572
Sales (million hectolitres) 5.5 5.6 1.2 12.3
2020
Net revenue* 3,402 3,141 772 7,315
Earnings before interest and tax
(EBIT) 687 675 171 -18 1,515
Assets 2,897 5,353 56 8,306
Liabilities 682 1,817 21 2,454 4,974
Sales (million hectolitres) 4.7 5.4 1.0 11.1
2019
Net revenue 3,691 3,308 694 7,693
Earnings before interest and tax
(EBIT) 722 654 132 -40 1,468
Assets 3,117 5,286 89 8,492
Liabilities 957 1,788 25 2,616 5,386
Sales (million hectolitres) 4.8 5.3 0.9 11.0
mDKK
Western
Europe Baltic Sea International
Un-
allocated Group
2018
Net revenue 3,378 3,338 582 7,298
Earnings before interest and tax
(EBIT) 645 599 127 -32 1,339
Assets 2,816 5,166 80 8,062
Liabilities 976 1,719 28 2,431 5,154
Sales (million hectolitres) 4.5 5.5 0.8 10.8
2017
Net revenue 2,829 3,076 479 6,384
Earnings before interest and tax
(EBIT) 564 431 106 -32 1,069
Assets 1,733 5,006 0 39 6,778
Liabilities 771 1,711 7 1,475 3,964
Sales (million hectolitres) 3.9 5.3 0.7 9.9
* The IFRS-15 accounting policy concerning customer contracts were reassessed, and some sales costs were reclassifed
to rebates, and as a consequence net revenue and sales costs are reduced with the same amount in 2020 and onwards.
2017 - 2019 has not been reestated.
ROYAL UNIBREW Annual report 2021 104
Consolidated financial statements
Con Note 6
Note 5 Segment reporting and revenue (continued)
§
Segment reporting
The Group’s business segment is beverage sales. Reporting on the business segment is by geographical mar-
kets. Segment reporting is based on the Group’s returns and risks and its internal financial reporting system.
Items included in net profit for the year, including income from investments in associates and financial income
and expenses, are allocated to the extent that the items are directly or indirectly attributable to the markets.
Items allocated both by direct and indirect computation comprise “production costs” and “administrative ex-
penses”, which are allocated by indirect computation based on allocation keys determined on the basis of the
market’s drain on key resources. Administrative expenses incurred in the group functions of the Parent Compa-
ny are partly allocated.
Assets comprise the non-current assets that are directly or indirectly used in connection with activities in the
markets.
Segment liabilities comprise liabilities derived from activities in the market, including provisions, trade payables,
VAT, excise duties and other payables.
§
Net revenue
Net revenue from the sale of goods is recognised in the income statement at the point in time when the control
of goods and products is transferred to the customer, which is generally upon delivery, and if revenues can be
measured reliably and are expected to be received.
Net revenue from contracts with customers is measured at an amount that reflects the consideration to which
the Group expects to be entitled in exchange for those goods. Net revenue is measured exclusive of VAT and net
of discounts as well as excise duties collected on behalf of third parties.
The Group gives various discounts and fees depending on the nature of the customer and business.
Discounts comprise unit price reductions as well as contributions to promotional activities and product promo-
tion based on volumes or value of purchases. The discounts are either granted as deductions from the invoice
amount or are earned as a bonus paid at the end of the bonus period. All types of discounts granted are recog-
nised in net revenue.
The Group considers whether contracts include other promises that constitute separate performance obliga-
tions and to which a portion of the transaction price needs to be allocated.
Note 6 Staff expenses
Staff expenses are included in production costs, sales and distribution expenses as well as administrative ex-
penses and break down as follows:
mDKK 2021 2020
Fixed salaries to Executive Management 13 13
Severance payment 0 7
Short-term bonus scheme for Executive Management 6 11
Long-term share based bonus scheme for Executive Management 4 7
Remuneration of Executive Management 23 38
Remuneration of Board of Directors 5 5
28 43
Wages and salaries 1,123 966
Contributions to pension schemes 128 109
1,251 1,075
Other social security expenses 33 21
Other staff expenses 54 44
Tot a l 1,366 1,183
Average number of employees 2,890 2,631
The complete Remuneration Policy and Remuneration Report for the Board of Directors and the Executive Man-
agement are disclosed at the Company’s website.
ROYAL UNIBREW Annual report 2021 105
Consolidated financial statements
Note 6 Staff expenses (continued)
Executive
Management
Board
Share price
at grant date
Total fair
value at time
of grant
Number DKK
DKK
thousand
Program 2020 17,921 370 6,631
Outstanding at 1 January 2021 17,921
Excercised -17,921
Program 2021 19,081 645 7,380
Anti-dilution adjustment 0
Outstanding at 31 December 2021 19,081
Exercisable at 31 December 2021 0
2021 2020
Restricted
shares
Remaining
term to
maturity
Restricted
shares
Remaining
term to
maturity
Number Months Number Months
Restricted shares 2020 0 0 17,921 0
Restricted shares 2021 19,081 24 0 0
Outstanding at 31 December 2021 19,081 17,921
Comment
The share-based payments to the Executive Management comprise a programme of 19,081 restricted (condi-
tional) shares allotted for no consideration vesting in the period covering the financial years 2021-2023.
These shares are excerciable at 31 December 2023.
§
Share-based payments
The Group only has schemes classified as equity-settled schemes. Restricted shares are measured at fair value
at the time of granting and are recognized in staff expenses in the income statement over the vesting period.
The counter item is recognized directly in equity.
At the initial recognition of the restricted shares, the number of shares expected to vest is estimated. Subse-
quently, the estimate of the number of restricted shares is revised so that the total recognition is based on the
estimated number of shares allotted.
Share-based payments
In determining fair value, conditions and terms related to the restricted shares are taken into account.
The market value of the program applying to 2021 has been calculated DKK 645 per share of DKK 2, which is
equal to the Royal Unibrew A/S market price at the time of the allotment in March 2021. The market price was
DKK 7 million for the estimated maximum number of shares. The market value has been charged to the income
statement on an estimated straight-line basis over the vesting period, corresponding to the rate at which the
conditions for the allotment of the shares was expected to be met.
ROYAL UNIBREW Annual report 2021 106
Consolidated financial statements
Con Note 7
Note 7 Expenses broken down by nature
mDKK 2021 2020
Aggregated by function
Production costs 4,490 3,613
Sales and distribution expenses 2,189 1,843
Administrative expenses 415 344
Tot a l 7,094 5,800
Break down by nature as follows:
Raw materials and consumables 3,639 2,856
Wages, salaries and other staff expenses 1,366 1,183
Operating and maintenance expenses 272 263
Distribution expenses and carriage 671 532
Sales and marketing expenses 591 471
Bad trade debts 2 27
Administrative cost 185 122
Amortisation, depreciation and gain/loss on sale 368 346
Tot a l 7,094 5,800
Total amortisation, depreciation and gain/loss on sale are included in the following
items in the income statement:
Production costs 181 185
Sales and distribution expenses 167 145
Administrative expenses 20 16
Tot a l 368 346
mDKK 2021 2020
Fee to auditors elected at the general assemply
Fee for the audit of the Annual Report:
Deloitte (KPMG) 3 2
PWC 1 0
Tot a l 4 2
Deloitte fee for non-audit services:
Other assurance services 0 0
Other assistance* 1 0
Tot a l 1 0
* Fees for other assistance than statutory audit of the financial statements provided by Deloitte primarily comprise services
relating to financial due dilligence
§
Expenses
Production costs
Production costs comprise direct and indirect expenses incurred to manufacture the finished goods represent-
ing revenue for the year, including expenses for raw materials and consumables purchases, salaries and wages,
renting and leasing as well as depreciation of and impairment losses on plant and machinery.
Production costs also include development costs that do not meet the criteria for capitalisation.
Sales and distribution expenses
Sales and distribution expenses comprise expenses for distribution and sales campaigns relating to goods sold
during the year, including expenses for sales personnel, marketing, depreciation and amortisation as well as
losses on trade receivables.
Administrative expenses
Administrative expenses comprise expenses for management and administration of the Group, including ex-
penses for administrative personnel, management, office supplies, insurance, depreciation and amortisation.
ROYAL UNIBREW Annual report 2021 107
Consolidated financial statements
Con Note 8-9
Leases
Under IFRS 16, the Group assesses whether a contract is or contains a lease based on following definition of a
lease based on the assessment of whether:
• fulfilment of the arrangement was dependent on the use of a specific asset or assets; and
• the arrangement had conveyed a right to use the asset. An arrangement conveyed the right to use the asset if
one of the following was met:
• the purchaser had the ability or right to operate the asset while obtaining or controlling more than an insig-
nificant amount of the output;
• the purchaser had the ability or right to control physical access to the asset while obtaining or controlling
more than an insignificant amount of the output; or
• facts and circumstances indicated that it was remote that other parties would take more than an insig-
nificant amount of the output, and the price per unit was neither fixed per unit of output nor equal to the
current market price per unit of output.
Note 8 Financial income
mDKK 2021 2020
Finance income
Trade receivables 0 1
Other financial income 0 1
Interest tax-extempt 0
Exchange adjustments
Trade receivables 2 0
Trade payables 5 1
Cash at bank and external loans 0
Tot a l 7 3
Note 7 Expenses broken down by nature (continued) Note 9 Financial expenses
mDKK 2021 2020
Finance costs
Mortgage debt 6 8
Credit institutions 27 27
Leasing 2 2
Finance costs on liabilities at amortized cost 35 37
Other financial expenses 1 1
Exchange adjustments
Cash at bank and external loans 3
Trade receivables 0 6
Trade payables 1
Forward contracts 9 2
Tot a l 49 46
§
Financial income and expenses
Financial income and financial expenses comprise interest, capital gains and losses on investments, balances
and transactions in foreign currencies, amortization of financial assets and liabilities, fair value adjustments of
derivative financial instruments that do not qualify as hedge accounting as well as extra payments and repay-
ment under the on-account taxation scheme, etc.
ROYAL UNIBREW Annual report 2021 108
Consolidated financial statements
Con Note 10-11
Note 10 Tax on the profit for the year
mDKK 2021 2020
Tax on the taxable income for the year 334 302
Adjustment of previous year 6 1
Adjustment of deferred tax 9 4
Tot a l 349 307
which breaks down as follows:
Tax on profit for the year 349 307
Tax on other comprehensive income 2 1
Tax on changes in equity, shareholders -2 -1
Tot a l 349 307
Current Danish tax rate 22.0 22.0
Adjustment of previous year 0.3 0.1
Income from associates after tax -0.5 -0.4
Effect on tax rate of permanent differences 0.5 0.4
Differences in effective tax rates of foreign subsidiaries -1.1 -1.7
Effective tax rate 21.2 20.4
§
Tax on the profit for the year
Tax for the year consists of current tax for the year and movements in deferred tax for the year. The tax attribut-
able to the profit for the year is recognized in the income statement and other comprehensive income, respec-
tively, whereas the tax attributable to equity entries is recognized directly in equity.
The Parent Company is jointly taxed with its Danish subsidiaries. The Danish current tax for the year is allocated
to the jointly taxed Danish enterprises in proportion to their taxable incomes (full allocation with credit for tax
losses).
§
Corporation tax
Current tax liabilities are recognized in the balance sheet as calculated tax on the expected taxable income for
the year adjusted for tax on taxable incomes for previous years and for tax paid on account.
Note 11 Intangible assets
mDKK Goodwill Trademarks
Distribution
rights
Customer
relations Tot a l
Cost at 1 January 2021 2,290 1,940 233 153 4,616
Exchange adjustment 8 2 1 3 14
Disposals 0
Addition by acquisition 740 544 198 1,482
Cost at 31 December 2021 3,038 2,486 234 354 6,112
Amortisation and impairment losses
at 1 January 2021 -7 -6 -88 -107 -208
Exchange adjustment -1 -1
Reversal of depreciation of disposals 0
Amortisation for the year -14 -28 -42
Impairment for the year 0
Amortisation and impairment
losses at 31 December 2021 -7 -6 -103 -135 -251
Carrying amount at
31 December 2021 3,031 2,480 131 219 5,861
ROYAL UNIBREW Annual report 2021 109
Consolidated financial statements
mDKK Goodwill Trademarks
Distribution
rights
Customer
relations Tot a l
Cost at 1 January 2020 2,342 1,962 248 154 4,706
Exchange adjustment -9 -7 -2 -1 -19
Disposals -13 -13
Addition by acquisition -43 -15 -58
Cost at 31 December 2020 2,290 1,940 233 153 4,616
Amortisation and impairment losses
at 1 January 2020 -7 -6 -87 -90 -190
Exchange adjustment 1 2 3
Reversal of depreciation of disposals 13 13
Amortisation for the year -15 -19 -34
Impairment for the year 0
Amortisation and impairment
losses at 31 December 2020 -7 -6 -88 -107 -208
Carrying amount at
31 December 2020 2,283 1,934 145 46 4,408
Comment
Goodwill and trademarks with indefinite useful lives relating to Hartwall (Finland) represents more than 10% of
the total value of goodwill and trademarks.
Development costs incurred are immaterial and have been recognized in production costs.
§
Goodwill
Goodwill is initially recognised in the balance sheet at cost. Subsequently, goodwill is measured at cost less ac-
cumulated impairment losses.
The carrying amount of goodwill is allocated to the Group's cash-generating units at the time of acquisition. The
determination of cash-generating units is based on management structure and internal financial management.
§
Trademarks, distribution rights and customer relations
Trademarks, distribution rights and customer relations are initially recognised in the balance sheet at cost.
Subsequently, they are measured at cost less accumulated amortisation and less any accumulated impairment
losses. Distribution rights and customer relations are amortised on a straight-line basis over their estimated
useful lives.
Trademarks are not amortised as they are all well-established, old and profitable trademarks which customers
are expected to continue demanding unabatedly, other things being equal, and which Management is not plan-
ning to stop selling and marketing.
Distribution rights are amortised on a straight-line basis over their estimated useful lives, maximum 20 years.
Customer relations are amortised on a straigt-line basis over their estimated useful lives, maximum 5 years.
Goodwill and trademarks with indefinite useful lives are not amortised but are tested annually for impairment. It
is the Group's strategy to maintain trademarks and their value.
Impairment test of goodwill and trademarks
As in 2020, the impairment test in 2021 did not give rise to recognising any impairment losses.
The carrying amount of goodwill and trademarks with indefinite useful lives at 31 December 2021 is related to
the cash-generating operational units and breaks down as follows:
mDKK Goodwill Trademarks To tal Share
2021
Western Europe 1,637 1,221 2,859 52%
Baltic Sea* 1,395 1,259 2,653 48%
Tot a l 3,032 2,480 5,512 100%
* the most significant value relates to Finland
Note 11 Intangible assets (continued)
ROYAL UNIBREW Annual report 2021 110
Consolidated financial statements
The recoverable amount is based on value in use, which is calculated by means of expected net cash flows on
the basis of budgets and forecasts for 2022-2026 approved by Management as well as estimated market driv-
en discount rates and growth rates.
The consumption in the markets in which Royal Unibrew operate is generally expected to regain the negative
impact from Covid-19 from and including Q2 2022. In Western Europe and Baltic Sea, consumption of Royal
Unibrews beverage categories is, in addition to the assumed absence of negative Covid-19 effects from Q2
2022, expected to be at the same level as in 2021 but changing towards high value products in the coming
years. Through further developing the businesses acquired in recent years, continued focus on exploiting
commercial opportunities and innovation following the consumer trends, Royal Unibrew expects to gain market
shares and consequently increase the revenue and earnings from the core brands and business areas. EBIT
margins are expected to increase towards historic levels through continuous focus on value management,
continuous efficiency improvements and synergies from acquisitions. The key assumptions for the calculation
of recoverable amount are shown below.
Western
Europe Baltic Sea
Growth rate 2023-2026 8.5-10.0% 4.6-5.5%
Growth rate on terminal value 1.0-1.0% 1.0-1.0%
Discount rate pre tax 6.1-6.8% 6.2-6.8%
The forecasted results approved by Management are based on previously achieved results and expected
market developments assuming no negative impact from Covid-19 as from Q2 2022, see above. The average
growth rates applied are in accordance with Management's expectations taking into account industry condi-
tions in the individual markets. The discount rates applied are before tax and reflect current specific risks in the
individual market. External consultants have advised how to determine the discounts rates. In Western Europe,
the highest point of the range indicated for the discount rate relates to Italy. In Baltic Sea, the lowest point of
the range indicated for the growth rates of terminal value and discount rate relates to Finland. The assumptions
applied by Management are inherently subject to uncertainty and unpredictability. Reasonably probable chang-
es will not lead to recognition of impairment losses, why no sensitivity analysis has been disclosed.
mDKK Goodwill Trademarks To tal Share
2020
Western Europe 899 681 1,580 37%
Baltic Sea* 1,384 1,253 2,637 63%
Tot a l 2,283 1,934 4,217 100%
* the most significant value relates to Finland
The recoverable amount is based on value in use, which is calculated by means of expected net cash flows on
the basis of budgets and forecasts for 2021-2023 approved by Management as well as estimated market driv-
en discount rates and growth rates.
The consumption in the markets in which Royal Unibrew operate is generally expected to regain the negatively
impact from Covid-19 on the 2020 as from H2 2021. In as well Western Europe and Baltic Sea consumption of
Royal Unibrews beverage categories is in addition to the assumed disapperance in H2 2021 of Covid-19 impact
expected to be at the same level as in 2020 but changing towards high value products in the coming years.
Through further developing the businesses acquired in 2018 and 2019, continued focus on exploiting commer-
cial opportunities and innovation following the consumer trends, Royal Unibrew expects to gain market shares
and consequently increase the revenue and earnings from the core brands and business areas. Gross margins
are expected to remain stable at the present level through continuous focus on value management and continu-
ous efficiency improvements. The key assumptions for the calculation of recoverable amount are shown below.
2020
Western
Europe Baltic Sea
Growth rate 2024-2027 0,0-1,0% 0,5-0,7%
Growth rate on terminal value 0,2-1,5% 0,7-2,0%
Discount rate pre tax 4,4-6,5% 4,4-5,4%
Note 11 Intangible assets (continued)
ROYAL UNIBREW Annual report 2021 111
Consolidated financial statements
Con Note 12
The forecasted results approved by Management are based on previously achieved results and expected mar-
ket developments assuming no negative impact from Covid-19 as from 2022, see above. The average growth
rates applied are in accordance with Management's expectations taking into account industry conditions in the
individual markets. The discount rates applied are before tax and reflect current specific risks in the individual
market. External consultants have advised how to determine the discounts rates. In Western Europe, the high-
est point of the range indicated for the discount rate relates to Italy. In Baltic Sea, the lowest point of the range
indicated for the growth rates of terminal value and discount rate relates to Finland. The assumptions applied by
Management are inherently subject to uncertainty and unpredictability. Reasonably probable changes will not
lead to recognition of impairment losses, why no sensitivity analysis has been disclosed.
§
Impairment
The carrying amounts of intangible assets and property, plant and equipment are reviewed on an annual basis
to determine whether impairment has incurred other than that expressed by normal amortisation and deprecia-
tion. If so, the asset is written down to the higher of net selling price and value in use. Goodwill and other assets
for which a value in use cannot be determined as the asset does not on an individual basis generate future cash
flows are reviewed for impairment together with the group of assets (cash-generating units) to which they are
attributable.
The carrying amount of goodwill and trademarks with indefinite useful lives is tested for impairment at least on
an annual basis, together with the other non-current assets of the cash-generating unit to which goodwill has
been allocated, and is written down to recoverable amount in the income statement if the carrying amount ex-
ceeds the recoverable amount.
The carrying amount of financial assets measured at cost or amortised cost is written down for impairment if,
due to changed expected net payments, the net present value is lower than the carrying amount.
Intangible assets
In relation to trademarks, Management makes an annual judgement to determine whether the current market
situation has reduced the value or affected the useful life of the trademarks, including whether past estimates
of indefinite useful lives may be maintained.
An annual impairment test is made of the values recognised in the Financial Statements of goodwill and trade-
marks assessed to have indefinite lives which are therefore not amortised. For a description of the discount
rates and growth rates applied in connection with the impairment test of goodwill and trademarks as well as
other assumptions of the impairment test, reference is made to the above note.
Note 11 Intangible assets (continued) Note 12 Property, plant and equipment
mDKK
Land and
buildings
Plant and
machinery
Other
fixtures
and fittings,
tools and
equipment
Property,
plant and
equipment
in progress
Leasing of
property,
plant and
equipment
Total other
property,
plant and
equipment
Cost at 1 January 2021 1,851 2,579 1,072 147 296 5,945
Exchange adjustment 0 0 1 1
Adjustment previous year 31 31
Additions 34 76 108 208 151 577
Additions by acquisitions 0 9 9 41 59
Disposals -2 -29 -95 -58 -184
Transfers for the year 46 28 27 -101 0 0
Cost at 31 December 2021 1,929 2,694 1,122 254 430 6,429
Depreciation, revaluation and impair-
ment losses at 1 January 2021 -807 -1,784 -753 0 -146 -3,490
Exchange adjustment 0 0 0 0
Adjustment previous year -33 -33
Depreciation for the year -45 -119 -99 -76 -339
Reversal of depreciation of assets sold 2 29 92 44 167
Depreciation, revaluation and
impairment losses at
31 December 2021 -850 -1,907 -760 0 -178 -3,695
Carrying amount at
31 December 2021 1,079 787 362 254 252 2,734
Leasing of property, plant
and equipment:
Cost at 31 December 2021 203 227 430
Depreciation, revaluation and impair-
ment losses at 31 December 2021 -77 -101 -178
Carrying amount per asset type 126 126 252
Land and buildings at a carrying amount of DKK 977 million have been provided as security for mortgage debt of
DKK 1.003 million.
Contracts for the delivery of property, plant and equipment in 2022 or later have been entered into only to an
immaterial extent.
ROYAL UNIBREW Annual report 2021 112
Consolidated financial statements
Note 12 Property, plant and equipment (continued)
mDKK
Land and
buildings
Plant and
machinery
Other
fixtures
and fittings,
tools and
equipment
Property,
plant and
equipment
in progress
Leasing of
property,
plant and
equipment
Total other
property,
plant and
equipment
Cost at 1 January 2020 1,850 2,527 1,026 101 320 5,824
Exchange adjustment -4 -4 -2 1 -1 -10
Additions 6 61 102 111 89 369
Additions by acquisitions 0
Disposals -6 -49 -71 -112 -238
Transfers for the year 5 44 17 -66 0
Cost at 31 December 2020 1,851 2,579 1,072 147 296 5,945
Depreciation, revaluation and impair-
ment losses at 1 January 2020 -767 -1,730 -725 0 -100 -3,322
Exchange adjustment 0 2 3 5
Adjustment previous year 0
Depreciation for the year -45 -104 -96 -69 -314
Reversal of depreciation of assets sold 5 48 65 23 141
Depreciation, revaluation and
impairment losses at
31 December 2020 -807 -1,784 -753 0 -146 -3,490
Carrying amount at
31 December 2020 1,044 795 319 147 150 2,455
Leasing of property, plant
and equipment:
Cost at 31 December 2020 147 149 296
Depreciation, revaluation and impair-
ment losses at 31 December 2020 -60 -86 -146
Carrying amount per asset type 87 63 150
Land and buildings at a carrying amount of DKK 927 million have been provided as security for mortgage debt of
DKK 850 million.
Contracts for the delivery of property, plant and equipment in 2021 or later have been entered into only to an
immaterial extent.
§
Property, plant and equipment
Land and buildings, plant and machinery and other fixtures and fittings, tools and equipment are measured at
cost less accumulated depreciation and less any accumulated impairment losses. Borrowing costs relating to
the acquisition of property, plant and equipment are capitalised.
Depreciation is calculated on a straight-line basis over the useful lives of the assets.
Profits and losses on the disposal of property, plant and equipment are calculated as the difference between the
sales sum less the expenses necessary to make the sale and the carrying amount at the time of sale. Profits or
losses were immaterial in both 2020 and 2021 and have been recognised in the income statement as an adjust-
ment to depreciation in production costs, sales or distribution expenses or administrative expenses, respectively.
Property, plant and equipment
The expected useful lives of the assets remain unchanged from 2021 and are as follows:
Buildings and installations, 25-40 years
Leasing of property, plant and equipment
over the term of the
lease
Plant and machinery, 10-15 years
Other fixtures and fittings, tools and equipment, 5-8 years
Vehicles 4-5 years
IT hardware and software 3 years
Returnable packaging, 3-10 years
Management reviews its estimate of the useful lives of property, plant and equipment annually.
§
Leases
Under IFRS 16, the Group recognises right-of-use assets and lease liabilities for most leases - i.e. these leases
are on-balance sheet.
The Group decided to apply the recognition exemptions to short-term and low value leases.
ROYAL UNIBREW Annual report 2021 113
Consolidated financial statements
Con Note 13
Note 13 Investments in associates
mDKK
Investments
in associates
Cost at 1 January 2021 76
Cost at 31 December 2021 76
Value adjustments at 1 January 2021 55
Exchange adjustment 6
Dividend, net -21
Share of profit for the year 37
Other comprehensive income 0
Value adjustments at 31 December 2021 77
Carrying amount at 31 December 2021 153
Cost at 1 January 2020 76
Cost at 31 December 2020 76
Value adjustments at 1 January 2020 50
Exchange adjustment -7
Dividend, net -21
Share of profit for the year 33
Other comprehensive income 0
Value adjustments at 31 December 2020 55
Carrying amount at 31 December 2020 131
Judgement concerning accounting policy: Financial disclosures on associates
Financial disclosures are provided on an aggregated basis for all associates as none of Royal Unibrew's shares of
net revenue or balance sheet total constitute more than 5% in proportion to the Consolidated Financial State-
ments; therefore, it is not considered essential to provide disclosures separately for each associate.
Royal Unibrew's share of:
2021 2020
Profit from continuing operations for the year 37 33
Other comprehensive income 0 0
Comprehensive income 37 33
Total carrying amount at 31 December of the Group's total investments in
associates, share of equity 153 131
§
Investments in associates in the Consolidated Financial Statements
Investments in associates are measured in the balance sheet at the proportionate share of the net asset val-
ue of the enterprises calculated under the accounting policies of the Group with deduction or addition of the
proportionate share of unrealised intercompany profits and losses and with addition of the carrying amount of
goodwill.
Associates with a negative net asset value are measured at DKK 0. If the Group has a legal or constructive obli-
gation to cover the negative balance of the associate, this obligation is recognised in liabilities.
The proportionate share of the results of associates is recognised in the income statement of the Group after
adjusting for impairment losses on goodwill and eliminating the proportionate share of unrealised intercompany
gains and losses.
ROYAL UNIBREW Annual report 2021 114
Consolidated financial statements
Con Note 14
Note 14 Other fixed asset investments
mDKK
Other
investments
Other
receivables
Total other
fixed asset
investments
Cost at 1 January 2021 64 9 73
Exchange adjustment 0
Additions by acquisition 2 2
Additions 0
Disposals 0
Cost at 31 December 2021 66 9 75
Value adjustments at 1 January 2021 -52 0 -52
Value adjustments at 31 December 2021 -52 0 -52
Carrying amount at 31 December 2021 14 9 23
Cost at 1 January 2020 64 8 72
Exchange adjustment 0
Additions 1 1
Disposals 0
Cost at 31 December 2020 64 9 73
Value adjustments at 1 January 2020 -52 0 -52
Value adjustments at 31 December 2020 -52 0 -52
Carrying amount at 31 December 2020 12 9 21
§
Other investments
Other investments classified as fair value trough profit and loss are recognized in non-current assets at fair val-
ue at the trading date and at estimated fair value calculation on the basis of market data and recognised valua-
tion methods as regards unlisted securities. Unrealised value adjustments are recognised in other comprehen-
sive income except for impairment losses and reversal of impairment losses which are recognised in financial
income and expenses in the income statement. Upon realisation, the accumulated value adjustment recognised
in other comprehensive income is transferred to financial income and expenses in the income statement. Other
investments may be classified as level-3 instruments.
§
Other receivables
Other receivables under fixed asset investments held to maturity are initially recognised at fair value and are
subsequently measured at amortised cost or an estimated lower value at the balance sheet date.
Other investments
In connection with the presentation of the Financial Statements for 2011, Management estimated the fair value
of its investments (48% of the share capital) in the Polish brewery company Perla Browary Lubelskie at DKK 0
due to governance issues. Since 2011, Management has maintained its fair value estimate of DKK 0 as these
issues have not subsequently been resolved. The consolidated financial statements of Perla Browary Lubelskie
S.A. for 2020 (2021 not yet available) have been prepared on the basis of Polish accounting law and show a
profit after tax of PLN 41 million (DKK 66 million) and equity of PLN 405 million ( DKK 644 million). The fair value
measurement of the investments in Perla Browary Lubelskie is classified in level 3 of the fair value hierarchy.
ROYAL UNIBREW Annual report 2021 115
Consolidated financial statements
Con Note 15-16
Note 15 Inventories
2021 2020
Raw materials and consumables 262 210
Work in progress 26 22
Finished goods and goods for resale 492 285
Inventories 780 517
Inventories
Indirect production costs are recognized in the value of work in progress and finished goods at DKK 26 million
(2020: DKK 22 million). As in 2020, write down of inventories is an insignificant amount, DKK 16 million (2020:
DKK 9 million).
§
Inventories
Inventories are measured at the lower of cost under the FIFO method and net realisable value of individual
product groups. The net realisable value of inventories is calculated at the amount of future sales revenues
expected to be generated by inventories at the balance sheet date in the process of normal operations and de-
termined allowing for marketability, obsolescence and development in expected sales sum with deduction of
calculated selling expenses.
The cost of raw materials, consumables, goods for resale and purchased finished goods comprises invoiced
price plus expenses directly attributable to the acquisition.
The cost of work in progress and finished goods comprises the cost of materials and direct labour with addition
of indirect production costs. Indirect production costs comprise the cost of indirect materials and labour as well
as maintenance and depreciation of and impairment losses on the machinery, factory buildings and equipment
used in the manufacturing process as well as costs of factory administration and management.
Note 16 Receivables
2021 2020
Trade receivables 1,123 600
Other receivables 65 39
Receivables 1,188 639
Receivables are classified as "assets measured at amortised cost" under IFRS 9.
Trade receivables falls due as follows:
2021
Not
due and
prepaid
bonus
Due 1-15
days
Due 16-90
days
Due > 90
days To ta l
Trade receivables 1,009 84 32 48 1,173
Impairment provision* -28** - -6 -16 -50
Trade receivables after impairment 981 84 26 32 1,123
Impairment provision % *** -2.8% 0.0% -18.8% -33.3% -4.3%
Provisions for bad debts,
beginning of year -49
Bad debts realised during the year 1
Provision for the year -2
Tot a l -50
* Lifetime expected credit loss.
** Hereof mDKK 17 (1,7%) relates to prepaid bonus
*** Historical average loss rate is < 1%
ROYAL UNIBREW Annual report 2021 116
Consolidated financial statements
Con Note 17
Note 16 Receivables (continued)
2020
Not
due and
prepaid
bonus
Due 1-15
days
Due 16-90
days
Due > 90
days To ta l
Trade receivables 548 48 22 31 649
Impairment provision* -25** -1 -5 -18 -49
Trade receivables after impairment 523 47 17 13 600
Impairment provision %*** -4.6% -2.1% -22.7% -58.1% -7.6%
Provisions for bad debts, beginning
of year -33
Bad debts realised during the year 12
Provision for the year -28
Tot a l -49
* Lifetime expected credit loss
** Hereof mDKK 11 (2.0%) relates to prepaid bonus
*** Historical average loss rate is approx. 1%
Receivable
Current receivables, all fall due for payment in 2022.
§
Receivables
Trade receivables and contract assets are measured at amortized cost less allowance for lifetime expected
credit losses.
To measure the expected credit losses, trade receivables have been grouped based on shared credit risk char-
acteristics and the days past due. An allowance for lifetime expected credit losses for trade receivables is rec-
ognized on initial recognition.
Trade receivables and contract assets are written off when all possible options have been exhausted and there
is no reasonable expectation of recovery.
The cost of allowances for expected credit losses and write-offs for trade receivables are included in Sales and
distribution costs.
Note 17 Equity and basis of earnings/cash flow per share
Treasury shares held by the Parent Company:
Number
Nom. Value
in mDKK
%
of capital
Portfolio at 1 January 2021 658,365 2 1.3
Additions 772,509 2 1.6
Capital reduction -550,000 -1 -1.1
Portfolio at 31 December 2021 880,874 3 1.8
The Group holds no other treasury shares.
Portfolio at 1 January 2020 883,509 2 1.8
Additions 524,856 1 1.0
Capital reduction -750,000 -1 -1.5
Portfolio at 31 December 2020 658,365 2 1.3
The share capital has been paid in full.
Basis of calculation of earnings and cash flow per share
2021 2020
The Parent Company shareholders' share of profit for the year amounts to (mDKK) 1,299 1,183
The average number of treasury shares amounted to (number, DKK 2 each) 707,880 585,724
The average number of shares in circulation amounted to (number) 48,344,203 49,108,026
The average number of shares in circulation incl restricted shares
amounted to (number) 48,363,284 49,125,947
Cost of share buy-backs during the year (mDKK) 582 362
The share capital has been fully paid.
Diluted earnings and cash flow per share have been calculated on the basis of the Parent Company
shareholders' share of profit/loss for the year.
ROYAL UNIBREW Annual report 2021 117
Consolidated financial statements
Note 17 Equity and basis of earnings/cash flow per share (continued)
Comment
Shares were bought back during the year as an element in the optimisation of the Company's capital structure.
It is the intention to cancel the bought-back shares to the extent that they are not to be used for share-based
payment to the Executive Management.
§
Equity / Proposed dividend
Dividend is recognised as a liability at the time of adoption at the Annual General Meeting. Dividend distribution
for the year proposed by Management is disclosed as a separate equity item.
§
Treasury shares
Treasury shares acquired by the Parent Company or subsidiaries are recognised at cost directly in equity under
retained earnings. Where treasury shares are subsequently sold, any consideration is also recognised directly in
equity. Dividend on treasury shares is recognised directly in equity under retained earnings.
§
Share premium account
Share premium account comprises amounts in excess of the nominal share capital paid up by shareholders in
connection with capital increases.
§
Revaluation reserves
Revaluation reserves in parent company comprise value adjustment of assets from cost to an estimated per-
manently higher fair value. Revaluation reserves are transferred to retained earnings when the revalued asset is
realised.
§
Translation reserve
The translation reserve in the Consolidated Financial Statements comprises exchange adjustments arising on
the translation of the Financial Statements of foreign enterprises from their functional currencies into the pres-
entation currency of the Group (DKK).
Upon full or partly realisation of the net investment in the foreign enterprises, exchange adjustments are recog-
nised in the income statement.
The translation reserve was reset at 1 January 2004 in accordance with IFRS 1.
§
Hedging reserve
The hedging reserve comprises changes to fair values of derivative financial instruments that are designated
and qualify as cash flow hedges of future transactions.
On realisation, the hedging instrument is recognised in the income statement in the same item as the hedged
transaction.
ROYAL UNIBREW Annual report 2021 118
Consolidated financial statements
Con Note 18-19
Note 18 Deferred tax
mDKK 2021 2020
Deferred tax at 1 January 554 546
Change in deferred tax for the year 9 4
Deferred tax, no income statement effect for the year 4
Change in deferred tax by acqusitions 171
Exchange adjustments 2 1
Adjustment of previous year 7 3
Deferred tax at 31 December 747 554
Expected realisation within 1 year -33 -31
Deferred tax relates to:
Intangible assets 610 428
Property, plant and equipment 154 153
Current assets 7 -7
Non current liabilities -17 -24
Current liabilities -7 4
Tot a l 747 554
§
Deferred tax
Deferred tax is recognised in respect of all temporary differences between the carrying amounts and the tax
base of assets and liabilities except for temporary differences arising at the time of acquisition that do not
affect the profit for the year or the taxable income and temporary differences concerning goodwill. In cases
where the computation of the tax base may be made according to alternative tax rules, deferred tax is meas-
ured on the basis of the intended use of the asset or settlement of the liability, respectively.
Deferred tax assets are recognized at the value at which they are expected to be realised, either by elimination
in tax on future earnings or by set-off against deferred tax liabilities.
Deferred tax is measured on the basis of the tax rules and tax rates expected under the legislation at the bal-
ance sheet date to be effective when the deferred tax crystallises as current tax.
In the balance sheet, set-off is made between deferred tax assets and deferred tax liabilities within the same
legal tax entity and jurisdiction.
Note 19 Other current payables
mDKK 2021 2020
VAT, excise duties, etc 746 494
Other payables 572 423
Deposit, returnable packaging 109 111
Total other current payables 1,427 1,028
Deposit, returnable packaging is specified as follows:
Balance at 1 January 111 132
Adjustment for the year -2 -21
Balance at 31 December 109 111
Comment
The change in the deposit on returnable packaging for the year reflects the net exchange with customers of re-
turnable packaging for the year less estimated wastage of returnable packaging in circulation. The development
in 2021 of the liability is due to packaging shifting from returnable packaging toward not returnable packaking,
e.g. cans and PET-bottles which is not refilled but reused in production of new cans and PET-bottles.
The payable relating to deposit on returnable packaging is calculated on the basis of the estimated total pack-
aging volume less packaging held in inventory.
§
Deposit, returnable packaging
Plastic crates, bottles and kegs in circulation and held in inventory are recognised in property, plant and equip-
ment, and the obligation to repay the deposit when the packaging in circulation is taken back on inventory is
recognised in other payables.
ROYAL UNIBREW Annual report 2021 119
Consolidated financial statements
Con Note 20
Note 20 Debts
mDKK 2021 2020
Mortgage debt 1,017 850
Credit institutions 2,605 1,424
Other debts 3,192 2,136
Debts 6,814 4,410
Changes to interest-bearing debts
31/12 2020
Additions by
acquisitions Repayment
New
facilities
Exchange
adjustment 31/12 2021
Interest-bearing long-term debts 2,042 -31 801 2,812
Interest-bearing short-term debts 79 -61 532 550
Total interest-bearing debt, mortgage and credit institutions 2,121 0 -92 1,333 0 3,362
Interest-bearing long-term leasing debt* 82 41 0 63 0 186
Interest-bearing short-term leasing debt* 71 -68 71 74
Total interest-bearing leasing debt 153 41 -68 134 0 260
Tot a l 2,274 41 -160 1,467 0 3,622
* leasing debt is included in the balance sheet as "Credit institutions"
31/12 2019
Additions by
acquisitions Repayment
New
facilities
Exchange
adjustment 31/12 2020
Interest-bearing long-term debts 1,991 -96 149 -2 2,042
Interest-bearing short-term debts 562 -483 0 79
Total interest-bearing debt, mortgage and credit institutions 2,553 0 -579 149 -2 2,121
Interest-bearing long-term leasing debt 163 -13 -67 -1 82
Interest-bearing short-term leasing debt 60 -60 71 71
Total interest-bearing leasing debt 223 0 -73 4 -1 153
Tot a l 2,776 0 -652 153 -3 2,274
* leasing debt is included in the balance sheet as "Credit institutions"
§
Debts
Mortgage loans and loans from credit institutions are rec-
ognized initially at fair values. Subsequently, the financial
obligations are measured at amortized cost equal to the
capitalised value using the effective interest method; the
difference between the proceeds and the nominal value is
recognized in financial income and expenses in the income
statement over the loan period.
Other debts, comprising trade payables, payables to sub-
sidiaries and associates, VAT, excise duties, etc as well as
other payables, are measured at amortized cost, substan-
tially corresponding to the nominal debt.
Debts
In connection with the acquisition of Hartwall in 2013, de-
fined benefit liabilities were acquired relating to a pension
scheme which has not been offered to new employees for
a number of years. On 31 December 2021, the net liability
amounted to approx DKK 7.7 million (2020: approx. DKK 5.3
million). Taking into account the amount of the liability, that
it has been at the same level in recent years and that it is
being phased out, Management does not consider it ma-
terial to provide the disclosures on the composition of the
liability required by IAS 19.
ROYAL UNIBREW Annual report 2021 120
Consolidated financial statements
Con Note 21-22
Note 21 Cash Flow Statement
Adjustments for non-cash operating items:
mDKK 2021 2020
Financial income -7 -3
Financial expenses 49 46
Amortization and impairment of intangible assets 42 34
Depreciation of property, plant and equipment 339 314
Tax on the profit for the year 349 307
Income from investments in associates -37 -33
Profit and loss from sale of property, plant and equipment
(see note 12 re leasing part) -13 -2
Share-based payments and remuneration 4 7
Tot a l 726 670
§
Cash flow statement
The consolidated cash flow statement is presented under the indirect method based on the net profit for the
year. The statement shows cash flows for the year, changes for the year in cash and cash equivalents as well as
the Group’s cash and cash equivalents at the beginning and end of the year.
Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for non-cash op-
erating items, changes in working capital, financial income and financial expenses, and corporation tax paid.
Cash flows from investing activities comprise acquisitions and disposals of property, plant and equipment and
fixed asset investments as well as dividend received from associates. Cost is measured inclusive of expenses
necessary to make the acquisition and sales prices after deduction of transaction expenses.
Cash flows from financing activities comprise changes to the amount or composition of the Group’s share capi-
tal, payment of dividend as well as borrowing and repayment of interest-bearing debt.
Cash and cash equivalents include securities with a maturity of less than 3 months that can readily be turned
into cash and are only subject to an insignificant risk of value changes.
Note 22 Contingent liabilities, security and other liabilities
mDKK 2021 2020
Rental and operating lease commitments
Total future payments:
Within 1 year 20 16
Between 1 and 5 years 40 23
Beyond 5 years 15 0
Tot a l 75 39
Rental and lease commitments relate to low value assets and service not included
under IFRS 16.
Third-party guarantees 47 31
Security
No security has been provided in respect of loan agreements with credit institutions.
As regards to security for loan agreements with mortgage credit institutes, reference is made to note 12.
Contingent liabilities
The outcome of pending legal actions is not expected to have any material impact on the financial position of
the Group.
ROYAL UNIBREW Annual report 2021 121
Consolidated financial statements
Con Note 23-24
Note 23 Related parties
Related parties comprise the Board of Directors and the Executive Management as well as associates, see the
sections on Board of Directors and Executive Management on page 48 and Group Structure on page 146. No
shareholder exercises control.
The following transactions have been made with related parties:
mDKK 2021 2020
Revenue
Sales to associates 18 18
Financial income and expenses
Dividends received from associates 26 21
Executive Management
Remuneration paid 19 29
Debt re cash-based bonus schemes 7 7
Debt re share-based bonus scheme 4 7
Board of Directors
Remuneration 5 5
Transactions with subsidiaries are eliminated in the Consolidated Financial Statements in accordance with the
accounting policies applied.
Note 24 Acquisition of enterprises
Acquisition in 2021
A Finnish micro brewery
On 11 February 2021, Royal Unibrew's finnish subsidiary, Hartwall, acquired the assets in Helsinki brewery, which
strengthens Hartwall's flexibilty and dedication to local craft and speciality beer further.
Bryggeri Helsinki will continue as an entrepreneur-driven brewery restaurant.
A Danish brewery and a softdrink company
On 29 April 2021, Royal Unibrew entered into an agreement to acquire 100% of the shares in the Danish com-
panies Bryggeriet S.C. Fuglsang A/S and Mineralvandsfabrikken Frem A/S. The acquisition was completed on 29
April 2021.
The companies are primarily doing business in the southern part of Jutland based on local, well-known beer-
and CSD brands with a 150 year long history.
The companies were merged with Royal Unibrew at the closing date, and fully integrated into Royal Unibrew
systems.
A Estonian micro brewery
On 14 September 2021, Royal Unibrew's Estonian subsidiary, Royal Unibrew Eesti, acquired 100% of the shares in
Tanker brewery. The acquisition will strengthen the local footprint in Estonian market through an authentic su-
per premium local beer brand and support full scale multi beverages strategy implementation in the region.
Transaction costs and consolidation
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approx DKK 1 million for legal
advisers in connection with the realization of the three transactions. The costs are recognized as administrative
expenses in 2021.
The three acquisitions have been included in the Consolidated Financial Statements of Royal Unibrew as of the
date of acquisition.
Royal Unibrew has made the following calculation of the fair value of the acquired net assets and of goodwill at
the time of acquisitions.
ROYAL UNIBREW Annual report 2021 122
Consolidated financial statements
Note 24 Acquisition of enterprises (continued)
mDKK
Intangibles 33
Property, plant and equipment 19
Inventories 21
Receivables 15
Prepayments 1
Deferred tax -1
Trade payables -4
Other payables -9
Acquired net assets 75
Goodwill 11
Estimated fair value of the business 86
Acquired cash at bank and in hand -40
Cash consideration 47
Number of employees 70
The receivables acquired include trade receivables of a fair value of DKK 8 million corresponding to the gross
amount receivable according to contract.
Acquisition of MC Energy (A French energy drinks brand)
On 1 July 2021, Royal Unibrew's French subsidiary, Etablissement Geyer-Fréres S.A, entered in to an agreement
to acquire the French beverage company MC Energy S.A.S. The acquisition was completed on 7 July 2021.
MC Energy owns the energy brand Crazy Tiger that holds a 11% volume market share in the French Off-Trade
market. The acquisition marks the entry into one of the categories where we see strong growth opportunities
across markets and at the same time adds a new category to our French business, which is currently based on
our Lorina brand (lemonade). The acquisition is the next step in developing the French business towards a mul-
ti-niche market.
MC Energy was acquired from three French entrepreneurs at an enterprise value of around DKK 610 million
(EUR 82 million) on a debt free basis. The acquisition was financed with existing credit facilities. MC Energy has
around 25 employees.
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approx DKK 2 million for finan-
cial and legal advisors in connection with the realization of the transaction. The costs are recognized as admin-
istrative expenses in 2021.
The acquisition has been included in the Consolidated Financial Statements of Royal Unibrew as of the date of
acquisition, and MC Energy was merged into Etablissement Geyer-Fréres in 2021.
Royal Unibrew has made the following calculation of the fair value of the acquired net assets and of goodwill at
the time of the acquisition.
mDKK
Trademarks 392
Property, plant and equipment 3
Inventories 6
Receivables 19
Prepayments 0
Deferred tax -98
Trade payables -13
Other payables -7
Acquired net assets 302
Goodwill 290
Estimated fair value of the business 592
Acquired cash at bank and in hand 17
Cash consideration 609
Number of employees 25
The receivables acquired include trade receivables of a fair value of DKK 19.3 million corresponding to the gross
amount receivable according to contract.
ROYAL UNIBREW Annual report 2021 123
Consolidated financial statements
Note 24 Acquisition of enterprises (continued)
Acquisition of Solera Beverage Group
On 1 July 2021, Royal Unibrew's Norwegian subsidiary, Royal Unibrew Norge AS, entered in to an agreement to
acquired 100% of the shares in Solera Beverage Group. The acquisition was completed on 17 September 2021.
Solera Beverage Group is leading pan-Nordic importer and distributor of a portfolio of strong leading interna-
tional wines, beers, CSD and other beverages. The company is present in Norway, Sweden and Finland, and
therefore adds Norway and Sweden to Royal Unibrew’s geographic footprint as well as it strengthens the offer-
ing in Finland.
Solera Beverage Group was acquired from the private equity fund, CapMan, at an enterprise value of around
DKK 770 million (NOK 1.1 billion) on a debt free basis. The acquisition was financed with existing credit facilities.
Solera Beverage Group has around 150 employees and generates normalized revenue (excluding positive COV-
ID-19 effects) of around DKK 1.3 billion and a EBITDA of around DKK 70 million.
Royal Unibrew A/S has incurred transaction costs relating to the acquisitions of approx DKK 14 million for finan-
cial and legal advisors in connection with the realization of the transaction. The costs are recognized as admin-
istrative expenses in 2021.
The acquisition has been included in the Consolidated Financial Statements of Royal Unibrew as of the date of
acquisition.
Royal Unibrew has made the following calculation of the fair value of the acquired net assets and of goodwill at
the time of the acquisition.
mDKK
Trademarks 146
Customer relations 185
Property, plant and equipment 40
Inventories 155
Receivables 255
Prepayments 29
Deferred tax -71
Trade payables -193
Other payables -387
Acquired net assets 159
Goodwill 439
Estimated fair value of the business 598
Acquired cash at bank and in hand 120
Cash consideration 718
Number of employees 150
The receivables acquired include trade receivables of a fair value of DKK 249.5 million corresponding to the
gross amount receivable according to contract.
ROYAL UNIBREW Annual report 2021 124
Consolidated financial statements
Con Note 25
Note 24 Acquisition of enterprises (continued)
Acquisition of Aqua d'Or Mineral Water A/S (A Nordic Water Company)
On 16 November 2021, Royal Unibrew entered into an agreement to acquire 100% of the shares in Aqua d'Or
Mineral Water A/S from Danone.
Aqua d’Or is a leading Scandinavian mineral water producer with a strong market presence in Denmark and
Sweden. The acquired activities have a strong organization and a modern production facility in Central Jutland,
Denmark.
Aqua d’Or has around 75 employees and generated revenue of around DKK 180 million in 2020. The company
markets its own brands Aqua d’Or, Klar and Denice, as well as supplying private label products to selected cus-
tomers.
Closing of the transaction is subject to approval from the Danish Competition Authority, which is expected dur-
ing the first half of 2022.
Acquisition of full ownership of Hansa Borg Bryggerier
On 7 January 2022, Royal Unibrew A/S entered into an agreement to acquire the remaining 75% of Hansa Borg
Bryggerier, of which Royal Unibrew already has 25% ownership.
Hansa Borg Bryggerier is Norway’s second largest brewery and beverage company with four breweries and one
bottling plant throughout the country and products ranging from beers to ciders, CSD's, waters and wines for
the Norwegian market.
The transaction is based on an enterprise value of NOK 3.3 billion (around DKK 2.4 billion) for 100% of Hansa
Borg Bryggerier with close to zero debt at the time of signing. Prior to the transaction Royal Unibrew owened
25% of Hansa Borg Bryggerier, meaning that the net amount paid in this transaction is 75% of the enterprise val-
ue, i.e. NOK 2.5 billion (DKK 1.8 billion).
Hansa Borg Bryggerier is expected to generate normalized revenue in 2022 of around NOK 1.4 billion with a
EBITDA of around NOK 210 million, resulting in an acquisition multiple (EV/EBITDA) of 16 times. Hansa Borg
Bryggerier is located in Bergen, Oslo, Sarpsborg, Kristiansand, Grimstad and Olden and has in total around 300
employees.
Closing of the transaction is pending approval from the Norwegian Competition Authority which is expected
during first half of 2022.
§
Business combinations
On acquisition of new enterprises the purchase method is applied, under which the identifiable assets and liabil-
ities of newly acquired enterprises are measured at fair value at the time of acquisition.
Upon business combinations, positive differences between cost and fair value of identifiable assets and liabili-
ties acquired are recognised as goodwill in intangible assets. At the time of acquisition, goodwill is allocated to
the cash-generating units that subsequently form the basis of impairment tests. Goodwill and fair value adjust-
ments in connection with the acquisition of a foreign enterprise with a functional currency that differs from the
presentation currency of the Group are treated as assets and liabilities belonging to the foreign entity and are
translated to the functional currency of the foreign entity at the exchange rates at the dates of transaction.
Gains or losses on disposal of subsidiaries and associates are calculated as the difference between the sales
sum and the carrying amount of net assets at the time of sale (including the carrying amount of goodwill) net of
expected expenses and adjusted for exchange adjustments previously recognized in equity.
Recognition of acquisition of enterprises
Royal Unibrew acquired in 2021 five businesses, Bryggeri Helsinki, Bryggeriet S.C. Fuglsang A/S, MC Energy,
Tanker Brewery, Solera Beverage Group by purchasing shares in the companies wherein the businesses were
established. The businesses assets, liabilities and contingent liabilities have been recognized under the purchase
method in the Financial Statements of Royal Unibrew. The key assets of the businesses are goodwill, trade-
marks, customer relations, property, plant and equipment, inventories, receivables, deferred tax and payables.
Especially with regard to the intangible assets acquired, there are no efficient markets to be used to determine
fair value. Management has therefore made an estimate in connection with the calculation of the fair value of
the acquired assets and liabilities at the date of acquisition and has allocated the purchase price on that basis.
The fair value calculation is subject to uncertainty and will subsequently be adjusted within a 12 month period
from the acquisition date if a need to do so is identified. The unallocated part of the purchase price has been
recognized as goodwill related to synergies and the development potential of the activities acquired.
Note 25 Events after the reporting period
Events after the reporting period apart from events recognized or disclosed in the consolidated financial state-
ments. No events have occurred after the reporting period of importance to the consolidated financial statements.
ROYAL UNIBREW Annual report 2021 125
Consolidated financial statements
Parent Company
Annual Report
2021
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 126ROYAL UNIBREW Annual report 2021 126
Parent Company Annual Report
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 127
Parent Income statement
Parent Company Income Statement
Statement of Comprehensive Income for 1 January - 31 December
mDKK Note 2021 2020
Net profit for the year 1,206 1,070
Other comprehensive income
Items that may be reclassified to the income statement
Value adjustment of hedging instruments, end of year 2 6
Tax on other comprehensive income 7 -2 -1
Tot a l 0 5
Other comprehensive income after tax 0 5
Total comprehensive income 1,206 1,075
Income Statement for 1 January - 31 December
mDKK Note 2021 2020
Net revenue 4,197 3,517
Production costs 3,4 -2,209 -1 , 774
Gross profit 1,988 1,743
Sales and distribution expenses 3,4 -872 -804
Administrative expenses 3,4 -255 -219
EBIT 861 720
Dividends received from subsidiaries and associates 550 531
Financial income 5 17 6
Financial expenses 6 -36 -31
Profit before tax 1,392 1,226
Tax on the profit for the year 7 -186 -156
Net profit for the year 1,206 1,070
Earnings per share (DKK) 26.5 24.1
Diluted earnings per share (DKK) 26.5 24.1
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 128
Parent Balance sheet
Parent Company Balance Sheet
Assets at 31 December
mDKK Note 2021 2020
NON-CURRENT ASSETS
Intangible assets 9 413 403
Property, plant and equipment 10 1,271 1,055
Investments in subsidiaries 11 4,424 4,388
Investments in associates 11 77 77
Receivables from subsidiaries 12 1,316 60
Other non-current investments 12 8 8
Non-current assets 7,509 5,991
CURRENT ASSETS
Inventories 13 226 185
Receivables 14 445 341
Receivables from subsidiaries 56 53
Corporation tax 0 1
Prepayments 16 14
Cash at bank and in hand 0 15
Current assets 743 609
Assets 8,252 6,600
Liabilities and Equity at 31 December
mDKK Note 2021 2020
EQUITY
Share capital 15 98 99
Other reserves 759 765
Retained earnings 1,525 1,558
Proposed dividend 708 666
Equity 3,090 3,088
LIABILITIES
Non-current liabilities
Deferred tax 16 168 159
Mortgage debt 2, 19 735 553
Credit institutions 2, 19 1,502 830
Other payables 24 50
Non-current liabilities 2,429 1,592
Current liabilities
Mortgage debt 2, 19 4 19
Credit institutions 2, 19 554 82
Trade payables 2 713 415
Payables to subsidiaries 2 1,184 1,053
Corporate tax 3 0
Other current payables 17 275 351
Current liabilities 2,733 1,920
Liabilities 5,162 3,512
Liabilities and equity 8,252 6,600
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 129
Parent Cash flow statement
Parent Company Cash Flow Statement
for 1 January - 31 December
mDKK Note 2021 2020
Net profit for the year 1,206 1,070
Adjustments for non-cash operating items 18 -195 -199
Change in working capital 296 78
Received financial income 0 6
Paid financial expenses -21 -31
Financial expenses related to leasing 0 -1
Corporation tax paid -179 -148
Cash flows from operating activities 1,107 775
Dividends received from associates 550 531
Sale of property, plant and equipment 8 3
Purchase of property, plant and equipment -299 -173
Acqusition of enterprises -3 1
Purchase/-sale of intangible assets and fixed asset investment 0 0
Cash flows from investing activities 256 362
mDKK Note 2021 2020
Debt financing:
Proceeds from increased drawdown on credit facilities 823 149
Repayment on credit facilities 0 -581
Repayment on lease facilities -28 -26
Change in financing of subsidiaries -933 298
Dividends to minority shareholders -5 0
Dividends paid to shareholders -666 -600
Dividends on treasury shares 13
Acquisition of shares for treasury -582 -362
Cash flows from financing activities -1,378 -1,122
Change in cash and cash equivalents -15 15
Cash and cash equivalents at 1 January 15 0
Exchange adjustment 0 0
Cash and cash equivalents at 31 December 0 15
Free cash flow
Net cash from operating activities 1,107 775
Net cash used in investing activities 259 361
Repayment on lease facilities -28 -26
Free cash flow 1,338 1,110
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 130
Parent Statement of changes in equity
Parent Company Statement of Changes in Equity
for 1 January - 31 December 2021
mDKK
Share
capital
Share
premium
account
Hedging
reserve
Total other
reserves
Retained
earnings
Proposed
dividend for
the year To ta l
Equity at 31 December 2020 99 761 4 765 1,558 666 3,088
Changes in equity in 2021
Profit for the year 0 1,206 1,206
Other comprehensive income 2 2 0 2
Tax on other comprehensive income 0 -2 -2
Total comprehensive income 0 0 2 2 1,204 0 1,206
Liability upon acquisition 0 29 29
Dividends paid to shareholders 0 -653 -653
Dividend on treasury shares 0 13 -13 0
Acquisition of shares for treasury 0 -582 -582
Proposed dividend 0 -708 708 0
Capital reduction -1 -8 -8 9 0
Share-based payments 0 4 4
Tax on changes in equity, shareholders 0 -2 -2
Total shareholders -1 -8 0 -8 -1,237 42 -1,204
Total changes in equity in 2021 -1 -8 2 -6 -33 42 2
Equity at 31 December 2021 98 753 6 759 1,525 708 3,090
Share premium account, hedging reserve and retained earnings may be applied for distribution of dividend to the Parent Company shareholders.
The share capital at 31 December 2021 amounts to DKK 97,600,000 and is distributed on shares of DKK 2 each.
Proposed dividend for the year is DKK 14.50 per share (2020: DKK 13.50 per share) based on the shared capital 31 December 2021..
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 131
Parent Company Statement of Changes in Equity
for 1 January - 31 December 2020
mDKK
Share
capital
Share
premium
account
Hedging
reserve
Total other
reserves
Retained
earnings
Proposed
dividend for
the year To ta l
Equity at 31 December 2019 100 773 -2 771 1,485 611 2,967
Changes in equity in 2020
Profit for the year 0 1,070 1,070
Other comprehensive income 6 6 0 6
Tax on other comprehensive income 0 -1 -1
Total comprehensive income 0 0 6 6 1,069 0 1,075
Liability upon acquisition 0
Dividends paid to shareholders 0 -600 -600
Dividend on treasury shares 0 2 -2 0
Acquisition of shares for treasury 0 -362 -362
Proposed dividend 0 -657 657 0
Capital reduction -1 -12 -12 13 0
Share-based payments 0 7 7
Tax on changes in equity, shareholders 0 1 1
Total shareholders -1 -12 0 -12 -996 55 -954
Total changes in equity in 2020 -1 -12 6 -6 73 55 121
Equity at 31 December 2020 99 761 4 765 1,558 666 3,088
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 132
Parent Notes contents
Notes to Parent Company Annual Report
Descriptive notes
1 Basis of preparation of
Parent Company Annual Report........................... 133
2 Financial risk management ................................ 134
Notes referring to Income Statement, Balance
Sheet and Cash Flow Statement
3 Staff expenses ............................................... 134
4 Expenses broken down by type .......................... 135
5 Financial income ............................................. 135
6 Financial expenses .......................................... 136
7 Tax on the profit for the year ............................... 136
8 Realised hedging transactions ............................ 136
9 Intangible assets ............................................ 137
10 Property, plant and equipment ............................ 138
11 Investments in subsidiaries and associates ............ 139
12 Receivables from subsidiaries and
Other fixed asset investments ............................ 140
13 Inventories ................................................... 140
14 Receivables ....................................................141
15 Share capital ..................................................141
16 Deferred tax .................................................. 142
17 Other current payables ..................................... 142
18 Cash Flow statement ....................................... 142
19 Debts .......................................................... 143
Other notes
20 Contingent liabilities, security and other liabilities ..... 143
21 Related parties ............................................... 144
22 Events after the reporting period ......................... 144
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 133
Parent Note 1
Note 1 Basis of preparation of Parent Company Annual Report
BASIS OF PREPARATION
§
Significant accounting policies
The Parent Company's accounting policies remain unchanged from last year. Significant accounting policies are
identical to those applied by the Royal Unibrew Group except for those mentioned below. Reclassification is ac-
cording to consolidated note 1.
Translation policies
Exchange adjustment of balances regarded as part of the total net investment in enterprises with another
functional currency than DKK is recognised in financial income and expenses in the Parent Company income
statement.
New and amended standards and interpretations that have taken effect
Reference is made to note 1 to the Consolidated Financial Statements.
Critical judgements and accounting estimates
In connection with the preparation of the Parent Company and Consolidated Financial Statements, Manage-
ment makes estimates and judgements as to how recognition and measurement of assets and liabilities should
take place based on the accounting policies applied.
Judgements as an element in significant accounting policies
The calculation of carrying amounts of certain assets and liabilities requires judgement as to how assets and
liabilities should be classified in the Financial Statements and how future events will affect the value of these
assets and liabilities at the balance sheet date. In connection with the financial reporting for 2021, the following
judgments have been made materially affecting the related items as described in relevant notes, see list to the
right.
Critical accounting estimates
Management's estimates are based on assumptions which Management considers reasonable but which are
inherently uncertain and unpredictable. In connection with the financial reporting for 2021, the following critical
estimates have been made as desribed in relevant notes, see list to the right.
Accounting policies, judgements as an element in significant accounting
policies as well as critical accounting estimates are described in the
consolidated notes:
Note
Derivative financial instruments 4
Segment reporting and revenue 5
Share-based payments 6
Expenses 7
Financial income 8
Financial expenses 9
Corporation tax 10
Intangible assets 11
Property, plant and equipment 12
Investments in associates 13
Other fixed asset investments 14
Inventories 15
Receivables 16
Equity 17
Deferred tax 18
Deposit returnable packaging 19
Debt 20
Cash Flow Statement 21
Purchase Price Allocation (PPA) 24
Legends
Significant accounting policies
Judgements as an element in significant accounting policies
Critical accounting estimates
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 134
Parent Note 2-3
Note 2 Financial risk management
Financial liabilities
31/12 2021
Parent
(mDKK)
Contractual
cash flows
Maturity
< 1 year
Maturity
> 1 year
< 5 years
Maturity
> 5 years
Carrying
amount
Non-derivative financial instruments:
Financial debt, debt financing, gross 2,814 550 1,395 869 2,698
Financial debt, subsidiaries 1,184 1,184 1,184
Leasing 100 28 58 14 97
Trade payables 713 713 713
Other payables 234 210 24 234
Tot a l 5,045 2,685 1,477 883 4,926
The debt is classified as "debt at amortised cost".
The fair value of the total debt is assessed to equal carrying amount.
31/12 2020
Parent
(mDKK)
Contractual
cash flows
Maturity
< 1 year
Maturity
> 1 year
< 5 years
Maturity
> 5 years
Carrying
amount
Non-derivative financial instruments:
Financial debt, debt financing, gross 1,468 87 1,089 292 1,421
Financial debt, subsidiaries 1,053 1,053 0 0 1,053
Leasing 65 25 39 1 63
Trade payables 415 415 415
Other payables 303 253 50 303
Tot a l 3,304 1,833 1,178 293 3,255
The debt is classified as "debt at amortized cost" with DKK 3,252 million and "debt at fair value" with DKK 3 million.
The fair value of the total debt is assessed to equal carrying amount.
For a description of the Parent Company's and the Group's currency, interest rate, credit, commodity and other
risks as well as capital management, reference is made to note 2 to the Consolidated Financial Statements.
Note 3 Staff expenses
Staff expenses are included in production costs, sales and distribution expenses as well as administrative ex-
penses and break down as follows:
mDKK 2021 2020
Fixed salaries to Executive Board 13 13
Serverance payment 0 7
Ordinary bonus scheme for Executive Board 6 9
Share-based payments to Executive Board (conditional) 4 9
Remuneration of Executive Board 23 38
Remuneration of Board of Directors 5 5
28 43
Wages and salaries 558 487
Contributions to pension schemes 52 44
610 531
Other social security expenses 6 6
Other staff expenses 23 18
Tot a l 667 598
Average number of employees 1,100 973
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 135
Parent Note 4
Note 4 Expenses broken down by type
mDKK 2021 2020
Production costs 2,209 1 , 774
Sales and distribution expenses 872 804
Administrative expenses 255 219
Tot a l 3,336 2,797
Break down by nature as follows:
Raw materials and consumables 1,780 1,426
Wages, salaries and other staff expenses 666 598
Operating and maintenance expenses* 141 118
Distribution expenses and carriage 232 187
Sales and marketing expenses 259 243
Bad trade debts 2 9
Office supplies etc 110 72
Amortisation and depreciation 146 144
Tot a l 3,336 2,797
Total amortisation and depreciation are included in the following items in
the income statement:
Production costs 86 83
Sales and distribution expenses 49 46
Administrative expenses 11 15
Tot a l 146 144
mDKK 2021 2020
Fee to auditors
Fee for the audit of the Annual Report:
Deloitte (KPMG) 1 1
Tot a l 1 1
Deloitte:
Other assurance services 0 0
Other assistance* 1 2
Tot a l 1 2
* Fees for other services than statutory audit of the financial statements provided by Deloitte
Statsautoriseret Revisionspartnerskab (2020: KPMG) primarily comprise services relating to financial due dilligence.
Note 5 Financial income
mDKK 2021 2020
Finance income
Cash at bank and in hand 1 0
Trade receivables 0 0
Receivables from subsidiaries 8 2
Other financial income
Exchange adjustments
Cash at bank and in hand and external loans 3
Trade receivables 4
Trade payables 1
Loans from subsidiaries 4
Tot a l 17 6
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 136
Parent Note 6-8
Note 6 Financial expenses
mDKK 2021 2020
Finance costs
Mortgage debt 4 5
Credit institutions 18 18
Other financial expenses 2 2
Leasing 1 1
Exchange adjustments
Cash at bank and in hand and external loans 3 0
Trade receivables 0 4
Trade payables 0 0
Loans from subsidiaries 0 0
Forward contracts 8 1
Tot a l 36 31
Note 7 Tax on the profit for the year
mDKK 2021 2020
Tax on the taxable income for the year 182 146
Adjustment of previous year 1 2
Adjustment of deferred tax 3 8
Tot a l 186 156
which breaks down as follows:
Tax on profit for the year 186 156
Tax on other comprehensive income 2 1
Tax on equity entries -2 -1
Tot a l 186 156
Current Danish tax rate 22.0 22.0
Dividends received from subsidiaries and associates -8.7 -9.7
Effect on tax rate of permanent differences 0.1 0.3
Adjustment of previous year 0.0 0.1
Effective tax rate 13.4 12.7
Note 8 Realized hedging transactions
mDKK 2021 2020
Realized hedging transactions are included in the income statement
as follows:
Net revenue includes currency hedges 0
Production costs include foreign currency and commodity hedges 23 -7
Financial income and expenses include currency, commodity and
interest rate hedges 0 -2
Tot a l 23 -9
Reference is made to note 4 to the Consolidated Financial Statements for a description of hedging policies
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 137
Parent Note 9
Note 9 Intangible assets
mDKK Goodwill Trademarks
Distribution
rights
Customer
relations Tot a l
Cost at 1 January 2021 227 173 0 9 409
Disposals 1 1
Additions by acquisition 11 11
Cost at 31 December 2021 227 173 0 21 421
Amortisation and impairment losses
at 1 January 2021 0 -3 0 -3 -6
Reversal depreciation of disposals 0
Amortisation for the year -2 -2
Amortisation and impairment
losses at 31 December 2021 0 -3 0 -5 -8
Carrying amount at
31 December 2021 227 170 0 16 413
mDKK Goodwill Trademarks
Distribution
rights
Customer
relations Tot a l
Cost at 1 January 2020 270 188 12 9 479
Disposals -12 -12
Additions -43 -15 -58
Cost at 31 December 2020 227 173 0 9 409
Amortisation and impairment losses
at 1 January 2020 0 -3 -12 -1 -16
Reversal depreciation of disposals 12 12
Amortisation for the year -2 -2
Amortisation and impairment
losses at 31 December 2020 0 -3 0 -3 -6
Carrying amount at
31 December 2020 227 170 0 6 403
§
Trademarks
Trademarks are not amortised as they are all well-established, old and profitable trademarks which customers
are expected to continue demanding unabatedly, other things being equal, and which Management is not plan-
ning to stop selling and marketing.
Reference is made to note 11 to the Consolidated Financial Statements for a description of impairment test.
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 138
Parent Note 10
Note 10 Property, plant and equipment
mDKK
Land and
buildings
Plant and
machinery
Other
fixtures
and fittings,
tools and
equipment
Property,
plant and
equipment
in progress
Leasing of
property,
plant and
equipment
Total other
property,
plant and
equipment
Cost at 1 January 2021 755 1,363 560 120 125 2,923
Additions 30 36 71 160 62 359
Additions by acqusition 7 7
Disposals -4 -61 -16 -81
Transfers for the year 46 15 25 -86 0
Cost at 31 December 2021 831 1,417 595 194 171 3,209
Depreciation, revaluation and
impairment losses at
1 January 2021 -426 -975 -403 0 -63 -1,867
Depreciation for the year -15 -57 -50 -29 -151
Reversal of depreciation and
impairment of assets sold 4 61 16 81
Depreciation, revaluation and
impairment losses at
31 December 2021 -441 -1,028 -392 0 -76 -1,937
Carrying amount at
31 December 2021 390 389 203 194 95 1,271
Leasing of property, plant
and equipment:
Cost at 31 December 2021 65 106 171
Depreciation, revaluation and
impairment losses at
31 December 2021 -29 -47 -76
Carrying amount per asset type 36 59 95
Land and buildings including plant and machinery at a carrying amount of DKK 384 million have been provided
as security for mortgage debt of DKK 734 million.
Contracts for the delivery of property, plant and equipment in 2021 or later have been entered into only to an
immaterial extent.
mDKK
Land and
buildings
Plant and
machinery
Other
fixtures
and fittings,
tools and
equipment
Property,
plant and
equipment
in progress
Leasing of
property,
plant and
equipment
Total other
property,
plant and
equipment
Cost at 1 January 2020 755 1,351 547 59 121 2,833
Additions 3 36 48 86 23 196
Additions by change in
accounting policy 0
Disposals -6 -39 -42 -19 -106
Transfers for the year 3 15 7 -25 0
Cost at 31 December 2020 755 1,363 560 120 125 2,923
Depreciation, revaluation and
impairment losses at
1 January 2020 -418 -963 -394 0 -41 -1,816
Depreciation for the year -14 -51 -48 -28 -141
Reversal of depreciation and
impairment of assets sold 6 39 39 6 90
Depreciation, revaluation and
impairment losses at
31 December 2020 -426 -975 -403 0 -63 -1,867
Carrying amount at
31 December 2020 329 388 157 120 62 1,055
Leasing of property, plant
and equipment:
Cost at 31 December 2020 44 81 125
Depreciation, revaluation and
impairment losses at
31 December 2020 -19 -44 -63
Carrying amount per asset type 25 37 62
Land and buildings including plant and machinery at a carrying amount of DKK 321 million have been provided
as security for mortgage debt of DKK 572 million.
Contracts for the delivery of property, plant and equipment in 2020 or later have been entered into only to an
immaterial extent.
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 139
Parent Note 11
Note 11 Investments in subsidiaries and associates
mDKK
Investments
in subsidiaries
Investments
in associates
Cost at 1 January 2021 4,477 77
Additions 36
Disposals
Cost at 31 December 2021 4,513 77
Impairment losses at 1 January 2021 -89 0
Impairment losses at 31 December 2021 -89 0
Carrying amount at 31 December 2021 4,424 77
Cost at 1 January 2020 4,478 77
Additions -1 0
Disposals 0
Cost at 31 December 2020 4,477 77
Impairment losses at 1 January 2020 -89 0
Impairment losses at 31 December 2020 -89 0
Carrying amount at 31 December 2020 4,388 77
§
Dividend on investments in subsidiaries and associates
Dividend on investments in subsidiaries and associates is recognised in the Parent Company's income state-
ment in the financial year in which dividend is declared.
§
Investments in subsidiaries and associates in the Parent Company Financial Statements
Investments in subsidiaries and associates are measured at cost and tested in the event of indication of im-
pairment. Where cost exceeds the recoverable amount, the investment is written down to its lower recoverable
amount.
§
Estimate
The carrying amount of investments in subsidiaries and the values of intangible assets contained therein is test-
ed to identify any impairment. Reference is made to note 11 to the Consolidated Financial Statements.
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 140
Parent Note 12-13
Note 12 Receivables from subsidiaries and Other fixed asset investments
mDKK
Other
investments
Other
investments
Other
receivables
Total other
fixed asset
investments
Cost at 1 January 2021 60 55 5 60
Exchange adjustment 0
Additions 1,256 0
Disposals 0
Cost at 31 December 2021 1,316 55 5 60
Revaluations and impairment losses
at 1 January 2021 0 -52 0 -52
Revaluations and impairment losses
at 31 December 2021 0 -52 0 -52
Carrying amount at 31 December 2021 1,316 3 5 8
Cost at 1 January 2020 127 55 5 60
Exchange adjustment 0
Additions 0
Disposals -67 0
Cost at 31 December 2020 60 55 5 60
Revaluations and impairment losses
at 1 January 2020 0 -52 0 -52
Revaluations and impairment losses
at 31 December 2020 0 -52 0 -52
Carrying amount at 31 December 2020 60 3 5 8
Note 13 Inventories
2021 2020
Raw materials and consumables 93 78
Work in progress 12 9
Finished goods and goods for resale 121 98
Total inventories 226 185
Inventories
Indirect production costs are recognised in the value of work in progress and finished goods at DKK 12 million
(2020: DKK 9 million). As in 2020, inventories have not been written down materially.
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 141
Parent Note 14-15
Note 14 Receivables
2021 2020
Trade receivables 418 324
Other receivables 27 17
Receivables 445 341
Receivables are classified as "assets measured at amortised cost" under IFRS 9.
Trade receivables falls due as follows:
2021
Not
due and
prepaid
bonus
Due 1-15
days
Due 16-90
days
Due > 90
days To ta l
Trade receivables 375 26 26 3 430
Impairment provision* -6 - -3 -3 -12
Trade receivables after impairment 369 26 23 - 418
Impairment provision % ** -1.6% 0.0% -11.5% -100.0% -2.8%
Provisions for bad debts,
beginning of year -12
Bad debts realised during the year 1
Provision for the year -1
Tot a l -12
* Lifetime expected credit loss
** Historical average loss rate is < 1%
Current receivables, other than trade receivables, all fall due for payment in 2022.
2020
Not
due and
prepaid
bonus
Due 1-15
days
Due 16-90
days
Due > 90
days To ta l
Trade receivables 285 35 14 2 336
Impairment provision -6 -1 -3 -2 -12
Trade receivables after impairment 279 34 11 - 324
Impairment provision %* -2.1% -2.9% -21.4% -100.0% -3.6%
Provisions for bad debts,
beginning of year -8
Bad debts realised during the year 7
Provision for the year -11
Tot a l -12
* Lifetime expected credit loss
** Historical average loss rate is approx. 0.6%
Note 15 Share capital
Reference is made to note 17 to the Consolidated Financial Statements.
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 142
Parent Note 16-18
Note 16 Deferred tax
mDKK 2021 2020
Deferred tax at 1 January 159 154
Change in deferred tax for the year 3 8
Deferred tax, no income effect for the year 4
Addition by acqusition 1
Adjustment of previous year 1 -3
Deferred tax at 31 December 168 159
Due within 1 year -9 -7
Deferred tax relates to:
Intangible assets 36 36
Property, plant and equipment 110 105
Fixed asset investments 18 18
Current assets 12 11
Current liabilities -8 -11
Tot a l 168 159
Note 17 Other current payables
mDKK 2021 2020
VAT, excise duties, etc 39 69
Other payables 210 253
Deposit, returnable packaging 26 29
Total other current payables 275 351
Deposit, returnable packaging is specified as follows:
Balance at 1 January 29 38
Adjustment for the year -3 -9
Balance at 31 December 26 29
Comment
The change in the deposit on returnable packaging for the year reflects the net exchange with customers of re-
turnable packaging for the year less estimated wastage of returnable packaging in circulation.
Note 18 Cash Flow Statement
Adjustments for non-cash operating items:
mDKK 2021 2020
Dividend received from subsidiaries and associates -550 -531
Financial income -17 -6
Financial expenses 36 31
Amortisation and impairment of intangible assets 2 2
Depreciation of property, plant and equipment (see note 10 re leasing part) 151 141
Tax on the profit for the year 186 156
Profit and loss from sale of property, plant and equipment -7 1
Share-based payments and remuneration 4 7
Tot a l -195 -199
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 143
Parent Note 19-20
Note 19 Debts
Changes to interest-bearing debts
31/12 2020 Cash flow Additions 31/12 2021
Interest-bearing long-term debts 1,345 0 822 2,167
Interest-bearing short-term debts 1,129 -15 602 1,715
Total interest-bearing debt,
mortgage and credit institutions 2,474 -15 1,424 3,882
Interest-bearing long-term leasing debt 38 -3 34 69
Interest-bearing short-term leasing debt 25 -25 28 28
Total interest-bearing leasing debt 63 -28 62 97
Tot a l 2,537 -43 1,486 3,979
31/12 2019 Cash flow Additions 31/12 2020
Interest-bearing long-term debts 1,272 -77 150 1,345
Interest-bearing short-term debts 1,449 -504 184 1,129
Total interest-bearing debt,
mortgage and credit institutions 2,721 -581 334 2,474
Interest-bearing long-term leasing debt 56 -3 -15 38
Interest-bearing short-term leasing debt 23 -23 25 25
Total interest-bearing leasing debt 79 -26 10 63
Tot a l 2,800 -607 344 2,537
Note 20 Contingent liabilities, security and other liabilities
mDKK 2021 2020
Guarantees
Guarantees relating to subsidiaries 682 661
Tot a l 682 661
Rental and lease commitments
Total future payments:
Within 1 year 6 7
Between 1 and 5 years 10 11
Beyond 5 years 9 0
Tot a l 25 18
Rental and lease commitments relate to low value assets and service not included
under IFRS 16.
Third-party guarantees 11 11
Security
No security has been provided in respect of the Group's loan agreements with credit institutions other than the
Parent Company's liability for the amounts drawn by subsidiaries on group credit facilities.
As regards security for loan agreements with mortgage credit institutes, reference is made to note 10.
Contingent liabilities
The outcome of pending legal actions is not expected to have any material impact on the financial position of
the Parent Company or the Group.
Parent Company Annual Report
ROYAL UNIBREW Annual report 2021 144
Parent Note 21-22
Note 21 Related parties
Related parties comprise the Board of Directors and the Executive Board as well as subsidiaries and associates,
see the sections on Board of Directors and Executive Board on page 48 and Group Structure on page 146.
No shareholder exercises control.
The following transactions have been made with related parties:
mDKK 2021 2020
Revenue
Sales to subsidiaries 681 561
Sales to associates 18 18
Costs
Purchases from subsidiaries 123 70
Financial income and expenses
Dividends received from associates 26 21
Dividends received from subsidiaries 524 510
Interest received from subsidiaries 8 2
Interest paid to subsidiaries 0 0
Executive Board
Remuneration paid 19 29
Debt re cash-based bonus schemes 7 7
Debt re share-based bonus schemes 4 7
Board of Directors
Remuneration 5 5
Intercompany balances on 31 December
Loans to subsidiaries 1,316 60
Receivables from subsidiaries 56 53
Loans from subsidiaries 1,251 1,076
Payables to subsidiaries 67 23
Capital contributed to subsidiaries
Guarantees and securities
Guarantee for subsidiaries 682 661
Note 22 Events after the reporting period
Events after the reporting period apart from events recognized or disclosed in the consolidated financial state-
ments. No events have occurred after the reporting period of importance to the consolidated financial state-
ments.
Group Structure
Activity
Production, sales and distribution
Sales and distribution
Holding company
Other
* not audited as not mandatory audit
Group structure
Segment Ownership Currency Capital
Parent Company
Royal Unibrew A/S, Denmark DKK 97,600,000
WESTERN EUROPE
Subsidiaries
Aktieselskabet Cerekem International Ltd., Denmark* 100% DKK 1,000,000
The Curious Company A/S, Denmark* 100% DKK 550,000
Nohrlund ApS, Denmark 68% DKK 103,030
Albani Sverige AB, Sweden 100% SEK 305,000
Ceres S.p.A, Italy 100% EUR 206,400
Terme di Crodo S.r.l., Italy 100% EUR 19,000,000
Etablissement Geyer-Fréres S.A, France 100% EUR 159,687
MC Energy S.A.S, France 100% EUR 50,000
Royal Unibrew Norge AS, Norway* 100% NOK 30,000
Solera Beverage Group Holding AS, Norway 100% NOK 2,571,231
Solera Beverage Group AS, Norway 100% NOK 6,000,000
Solera Norge AS, Norway 100% NOK 6,000,000
Engelstad Spirits AS, Norway 100% NOK 30,000
Einar A. Engelstad AS, Norway 100% NOK 100,000
Orbis Wines AS, Norway 100% NOK 30,000
Eurowine AS, Norway 100% NOK 101,000
Best Cellars AS, Norway 100% NOK 1,000,000
Stenberg & Blom AS, Norway 100% NOK 100,000
Winehouse Norway AS, Norway 100% NOK 30,000
Bottleneck Holding AS, Norway 100% NOK 100,000
Top Cellars Wine Import AS, Norway 100% NOK 30,000
Segment Ownership Currency Capital
Urban Beverages AS, Norway 100% NOK 110,000
Multibev AB, Sweden 100% SEK 100,000
Multibev AS, Norway 100% NOK 100,000
Sommelier AS, Norway 100% NOK 200,000
Solera Uteliv AS, Norway 100% NOK 100,000
Craft Drinks AS, Norway 100% NOK 30,000
Vinkilden AS, Norway 100% NOK 45,580
Cuveco AS, Norway 100% NOK 100,000
Bacchus Wines AS, Norway 100% NOK 30,000
Solera Sverige AB, Sweden 100% SEK 150,000
Prime Wine Sweden AB, Sweden 100% SEK 117,700
Mondo Wine Sweden AB, Sweden 100% SEK 100,000
Solera Spirits and Beers AB, Sweden 100% SEK 100,000
Solera Sales AB, Sweden 100% SEK 50,000
Cuveco AB, Sweden 100% SEK 100,000
Five Eyes AB, Sweden 100% SEK 100,000
Solera Finland Oy 100% EUR 9,200
Stella Wines Oy, Finland 100% EUR 8,000
Quantum Beverages Oy, Finland 100% EUR 2,500
Solera Cabernet Wines Oy, Finland 100% EUR 2,500
Solera Chardonnay Wines Oy, Finland 100% EUR 2,500
Solera Riesling Wines Oy, Finland 100% EUR 2,500
Multibev Oy, Finland 100% EUR 16,819
Tistron Wine Group Ab, Finland 100% EUR 200,000
Urban Beverage Oy, Finland 100% EUR 8,000
Zenga Import Ab, Finland 100% EUR 2,500
ROYAL UNIBREW Annual report 2021 146
Other information
Activity
Production, sales and distribution
Sales and distribution
Holding company
Other
* not audited as not mandatory audit
Segment Ownership Currency Capital
Associates
Grønlandskonsortiet I/S, Denmark 50% DKK
Nuuk Imeq A/S, Nuuk, Greenland 32% DKK 38,000,000
Hansa Borg Holding AS, Norway 25% NOK 55,510,000
BALTIC SEA
Subsidiaries
AB Kalnapilio-Tauro Grupe, Lithuania 100% EUR 1,153,337
Royal Unibrew Services UAB, Lithuania 100% EUR 43,500
Oy Hartwall Ab, Finland 100% EUR 13,240,140
Lapin Kulta Oy, Finland 100% EUR 16,819
SIA “Cido Grupa”, Latvia 100% EUR 1,117,060
SIA Lacplesa Alus, Latvia 100% EUR 68,945
SIA Bauskas Alus, Latvia 100% EUR 932,064
Royal Unibrew Eesti, Estonia 100% EUR 200,000
Tanker Brewery, Estonia* 100% EUR 1,286,969
Segment Ownership Currency Capital
INTERNATIONAL
Subsidiaries
Centre Nordique d’Alimentation EURL, France* 100% EUR 131,000
Ferell sp. z.o.o., Poland* 100% PLN 120,200
Supermalt UK Ltd., UK 100% GBP 9,700,000
Vitamalt (West Africa) Ltd., UK 100% GBP 10,000
Royal Unibrew Nigeria Ltd. 100% NGN 10,000,000
The Danish Brewery Group Inc., USA* 100% USD 1,047,203
Bruce Ashley Group Inc. 100% CAD 133
ROYAL UNIBREW Annual report 2021 147
Other information
Quarterly Financial Highlights and Ratios (Group)
Quarterly financial highlights and ratios
Q1 Q2 Q3 Q4
mDKK (unaudited) 2021 2020 2021 2020 2021 2020 2021 2020
Volume (million hectolitres) 2.5 2.2 3.4 3.1 3.4 3.2 3.0 2.6
Income Statement
Net revenue 1,605 1,478 2,300 1,979 2,434 2,200 2,407 1,658
EBITDA 318 287 609 546 697 699 397 329
EBITDA margin (%) 19.8 19.4 26.5 27.6 28.6 31.8 16.5 19.8
Earnings before interest and tax (EBIT) 229 200 521 463 596 600 306 252
EBIT margin (%) 14.3 13.5 22.7 23.4 24.5 27.3 12.7 15.2
Income from investments in associates 1 -2 14 6 13 14 9 15
Financial income and expenses -7 -10 -9 -9 9 -11 -35 -13
Profit before tax 223 188 526 460 600 603 298 267
Net profit for the period 177 145 417 360 474 475 230 222
Balance Sheet
Non-current assets 7,031 7,070 7,123 6,974 8,591 6,940 8,771 7,015
Total assets 8,618 8,518 9,101 8,837 10,836 8,390 10,914 8,306
Equity 3,320 3,181 2,889 3,545 3,284 3,398 3,342 3,332
Net interest-bearing debt 2,448 2,832 2,618 2,114 3,398 1,837 3,536 2,193
Net working capital -682 -465 -990 -650 -1,027 -957 -1,102 -875
Invested capital 6,172 6,430 5,908 6,076 7,226 5,648 7,450 5,927
Cash Flows
From operating activities -15 -5 900 707 619 959 249 77
From investing activities -87 -67 -115 -45 -68 -70 -187 -142
Free cash flow -102 -72 785 662 551 889 62 -65
Financial Ratios (%)
Free cash flow as a percentage of net revenue -6 -5 34 33 23 41 3 -5
Cash conversion -58 -50 188 184 116 189 27 -34
Net interest-bearing debt/EBITDA* 1.6 1.6 1.2 1.7 1.0 1.5 1.7 1.2
Equity ratio 39 37 32 40 30 41 31 40
Ratios comprised by the "Recommendations and Financial Ratios" issued by the Chartered Financial Analyst Society Denmark's Committee for Accounting standards have been calculated according to the recommendations.
Definitions of financial highlights and ratios are provided on page 150.
* running 12 months
ROYAL UNIBREW Annual report 2021 148
Other information
IFRS 15 Adjustments
IFRS 15 Adjustments
We have reassessed the IFRS 15 accounting policy concerning customer contracts and on that background we have changed our handling of some customer contract-related costs.
his means that some sales costs are reclassified to rebates, and as a consequence revenue and sales costs are reduced by the same amount, whereas EBIT is unchanged.
mDKK FY2017 FY2018 FY2019 FY2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY2021
Western Europe
Previously reported revenue 2,829 3,378 3,691 3,548 689 958 1,132 769 775 1,176 1,275 1,429 4,655
Adjustment -145 -157 -152 -146 -26 -41 -32 -47 -28 -46 -29 -61 -164
IFRS adjusted revenue 2,684 3,221 3,539 3,402 663 917 1,100 722 747 1,130 1,246 1,368 4,491
EBIT 563 645 722 687 69 198 300 120 114 271 300 173 857
Previously reported EBIT margin 19.9% 19.1% 19.6% 19.4% 10.0% 20.7% 26.5% 15.6%
IFRS adjusted EBIT margin 21.0% 20.0% 20.4% 20.2% 10.4% 21.6% 27.3% 16.6% 15.3% 24.0% 24.1% 12.6% 19.1%
Baltic Sea
Previously reported revenue 3,076 3,338 3,308 3,237 648 886 937 767 645 979 998 817 3,439
Adjustment -97 -114 -103 -96 -19 -22 -26 -28 -19 -30 -25 -28 -101
IFRS adjusted revenue 2,979 3,224 3,205 3,141 629 864 911 738 626 949 974 789 3,338
EBIT 431 599 654 675 93 229 254 99 75 210 257 99 642
Previously reported EBIT margin 14.0% 17.9% 19.8% 20.9% 14.4% 25.8% 27.1% 12.9%
IFRS adjusted EBIT margin 14.5% 18.6% 20.4% 21.5% 14.8% 26.5% 27.9% 13.4% 12.0% 22.1% 26.4% 12.7% 19.2%
International
Previously reported revenue 479 582 694 772 187 198 189 198 232 222 215 250 919
Adjustment -3 -4 -1 0 0 0 0 0 0 0 -1 -1 -2
IFRS adjusted revenue 476 578 693 772 187 198 189 198 232 222 214 249 917
EBIT 106 127 132 171 39 43 50 39 47 44 45 39 176
Previously reported EBIT margin 22.1% 21.8% 19.0% 22.2% 20.9% 21.7% 26.5% 19.7%
IFRS adjusted EBIT margin 22.3% 22.0% 19.0% 22.2% 20.9% 21.7% 26.5% 19.7% 20.3% 19.8% 21.0% 15.8% 19.2%
Royal Unibrew
Previously reported revenue 6,384 7,298 7,693 7,557 1,524 2,042 2,258 1,733 1,652 2,376 2,488 2,496 9,012
Adjustment -244 -276 -256 -242 -46 -63 -58 -75 -47 -76 -55 -89 -267
IFRS adjusted revenue 6,140 7,022 7,437 7,315 1,478 1,979 2,200 1,658 1,605 2,300 2,434 2,407 8,746
EBIT 1,069 1,339 1,469 1,515 200 463 600 252 229 521 596 306 1,652
Previously reported EBIT margin 16.7% 18,3% 19.1% 20.0% 13.1% 22.7% 26.6% 14.5%
IFRS adjusted EBIT margin 17.4% 19,1% 19.8% 20.7% 13.5% 23.4% 27.3% 15.2% 14.3% 22.7% 24.5% 12.7% 18.9%
ROYAL UNIBREW Annual report 2021 149
Other information
Definitions of Financial Highlights and Ratios
Definitions of financial highlights and ratios
EBITDA Earnings before interest, tax, depreciation, amortization and impairment
losses as well as profit from sale of property, plant and equipment and
amortization of intangible assets.
EBITDA margin EBITDA as a % of net revenue.
EBIT Earnings before interest and tax.
EBIT margin EBIT as a percentage of net revenue.
Net interest-bearing debt Mortgage debt and debt to credit institutions less cash at bank and in hand,
interest-bearing current investments and receivables.
Net working capital Inventories + receivables - current liabilities except for corporation tax
receivable/payable as well as mortage debt and debt to credit institutions.
Invested capital Equity + minority interests + provisions + net interest-bearing debt - finan-
cial assets.
Investing activities,
cash flow
Dividend received from associates, purchase net of sale of property, plant
and equipment less acquisitions and net proceed from intangible assets
and fixed assets investments.
Investing activities,
free cash flow
Dividend received from associates, purchase net of sale of property,
plant and equipment less net cash used in investing activities excluding
acquisitions and net proceed from intangible assets and fixed assets
investments.
Free cash flow Cash flow from operating activities less investing activities.
Earnings per share Parent Company shareholders' share of profit for the year/average number
of shares in circulation.
Net cash used in
investing activities
The sum of Dividend received from associates, sale and purchase of
property, plant and equipments.
Diluted earnings per share Parent Company shareholders' share of earnings from operating activities/
average number of shares in circulation including restricted shares "in-the-
money".
Free cash flow per share Free cash flow from operating activities/average number of shares in
circulation.
Dividend per share Proposed dividend per share.
Return on invested capital
including goodwill (ROIC)
EBIT net of tax as a percentage of average invested capital.
Return on invested capital
excluding goodwill (ROIC)
EBIT net of tax as a percentage of average invested capital, excluding
goodwill.
Free cash flow as
a percentage of net revenue
Free cash flow as a percentage of net revenue.
Capex as a percentage
of net revenue
Purchase net of sale of property, plant and equipment plus repayment on
lease facilities as a percentage of net revenue.
Cash conversion Free cash flow as a percentage of net profit for the year.
Net interest-bearing debt/
EBITDA before special items
The ratio of net interest-bearing debt at year end to EBITDA.
Equity ratio Equity at year end as a percentage of total assets.
Return on equity (ROE) Consolidated profit after tax as a percentage of average equity.
Dividend payout ratio (DPR) Dividend calculated for the full share capital as a percentage of the Parent
Company shareholders' share of net profit for the year.
Organic growth Growth adjusted for acquisitions and divestments, and measured in local
currencies.
ROYAL UNIBREW Annual report 2021 150
Other information
Disclaimer
Disclaimer
This Annual Report contains forward-looking statements, including
statements about the Group’s sales, revenue, earnings, spending,
margins, cash flows, inventories, products, actions, plans, strate-
gies, objectives and guidance with respect to the Group’s future
operating results. Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate or im-
ply future results, performance or achievements, and may contain
the following words or phrases “believe, anticipate, expect, estimate,
intend, plan, project, will be, will continue, likely to result, could, may,
might”, or any variations of such words or other words with similar
meanings. Any such statements involve known and unknown risks,
estimates, assumptions and uncertainties that could cause the
Group’s actual results, performance or industry results to differ ma-
terially from the results expressed or implied in such forward-look-
ing statements. Royal Unibrew assumes no obligation to update or
adjust any such forward-looking statements (except for as required
under the disclosure requirements for listed companies) to reflect
actual results, changes in assumptions or changes in other factors
affecting such forward-looking statements.
Some important risk factors that may have direct bearing on the
Group’s actual results include, but are not limited to: economic and
political uncertainty (including interest rates and exchange rates),
financial and regulatory developments, development in the demand
for the Group’s products, introduction of and demand for new
products, changes in the competitive environment and the industry
in which the Group operates, changes in consumer preferences,
increasing industry consolidation, the availability and pricing of raw
materials and packaging materials, cost of energy, production- and
distribution-related issues, information technology failures, breach
or unexpected termination of contracts, price reductions resulting
from market-driven price reductions, determination of fair value in
the opening balance sheet of acquired entities, litigation, pandemic,
environmental issues and other unforeseen factors.
New risk factors may emerge in the future, which the Group cannot
predict. Furthermore, the Group cannot assess the impact of each
factor on the Group’s business or the extent to which any individual
risk factor, or combination of factors, may cause results to differ
materially from those contained in any forward-looking statement.
Accordingly, forward-looking statements should not be relied on as
a prediction of actual results.
ROYAL UNIBREW Annual report 2021 151
Other information
Design and production: Noted
DK-4640 Fax e
Tel +45 56 77 15 00
CVR No.: 4 1 95 67 12
Financial year: 1 January – 31 December
Registered municipality: F ax e
Homepage: www.r oy alunibr ew.c om
E-mail: co ntac t@ro y alunibr ew.c om