Driving tech
innovation
ANNUAL REPORT 2021
Annual Report 2021
Contents
05
Financial Reviews .....................................45
Trifork Group ...............................................46
Trifork Segment .......................................... 52
Labs Segment ............................................56
08
Shareholders ............................................79
01
Letter of the CEO ......................................... 3
02
Key figures and main events
of FY2021 .......................................................6
Financial highlights and key figures ......... 8
Outline of the year ......................................10
04
The Trifork Group .......................................14
Overview ......................................................15
Competitive strenghts ...............................16
Strategy .......................................................18
Go-to-market Model.................................24
Business Areas ........................................... 26
Trifork Labs & Investments .........................41
History and Key Events ..............................44
12
Trifork Group Structure .......................... 150
09
Statement by the Board of Directors
and Executive Management .................. 82
07
Environmental Social Governance ........ 76
06
Corporate Governance ...........................58
Governance model/
management structure ............................ 59
Board of Directors ...................................... 60
Board Committees .................................... 63
Executive Management ............................64
Recommendations on Corporate
Governance ................................................65
Remuneration Report ...............................66
Risk Management...................................... 72
10
Consolidated financial
statements of the Trifork Group ............83
Main statements ........................................84
Notes ...........................................................89
Auditor's report .........................................136
11
Financial statements of Trifork
Holding AG ................................................139
Main statements .......................................140
Notes ..........................................................143
Appropriation of available earnings .....146
Auditor's report .........................................147
03
Targets & Guidance for 2022 ................... 12
Annual Report 2021
3
LETTER OF THE CEO
2021 - driving tech innovation.
Digitalization more important than ever
2021 already seems far away. At Trifork, we
look to the future and how we can change it
for the better.
The world faces many challenges and one
of them is the dying coral reefs around the
world. This year, we decided to support the
Elkhorn Marine Conservatory which is an or-
ganization that actively restores dying reefs.
With our sailing program, we make people
aware of challenges the marine life is facing.
We are appealing to other companies and
governments to have or support programs
that help restore wild life and a healthy envi-
ronment in the seas.
2021 was the second year where Covid
turned our lives upside down. First, it meant
that our colleagues, to a large degree, still
were forced to work from home. For some,
remote work can be a good thing. For others,
it can be very stressful and can lead to less
exercise, unhealthy eating habits, and lack of
socialization. Being cut off from our normal
social life with colleagues can also stress the
corporate culture. However, our many leaders
and colleagues are doing everything in their
power to counter this problem, and I would
like to express my gratitude to everyone for
this great effort. I do not envision things going
back to where they were but I believe that we
will grow stronger from this experience, and
the future for Trifork will be a combination of
remote working and working from our offices.
The difference between 2020 and 2021 is that
it will be voluntary and based on the terms of
our work and health.
Digital transformation has seen a strong
acceleration in the past two years and is
currently more important than ever. This I
see as a good thing. Software should be for
the people and there is a lot of work ahead
to improve the user experience and safety of
software. I see too much tracking of people
in modern systems. We like to be a compa-
ny that helps balance safety, security, good
ethics, and nice user experience. Smart
digital solutions are an important tool to
fight global problems, and together with our
customers we do this every day. An example
from 2021 is our Bane Denmark case story.
Here, we worked with our customer and our
lab company Arkyn Studios to create tools for
improving the quality, safety, effectiveness,
and user experience for maintenance of the
Danish railroad infrastructure.
At Trifork, we care deeply about the solutions we
develop and we innovate with our customers
to improve the happiness of the users and the
effectiveness of our customers’ businesses.
This, I believe, is why we have experienced
accelerated growth in 2021 and, once again,
have been able to increase both revenue
and profit. This time to EURm 158.5 in revenue,
equal to 37.4% growth compared to 2020, with
more than half of the growth being organic.
Since 2007, where we started our reporting
according to IFRS, this has given us a CAGR of
24.1% and makes us comfortable in maintain-
ing our mid-term guidance of 15-25% annual
growth. Overall, we saw the highest growth in
the Danish Public sector and in the UK FinTech
sector. In the fourth quarter of 2021, we expe-
rienced strong organic growth which we have
seen continue in the beginning of 2022.
01
We believe that Trifork fit in a changing world
and that changes are fuel for our organization.
There will be a constant need for innovation and
digitalization and for us to create solutions using
new and smarter technologies
Letter of the CEO
Annual Report 2021
4
Letter of the CEO
In 2021, we achieved a record-high EBIT of
EURm 35.6 in the Trifork Group. This was sup-
ported by increase in the Trifork segment as
well as the positive effect from the deconsoli-
dation of our Dawn Health business unit.
In May 2021, we completed a successful IPO on
OMX Nasdaq Copenhagen, and Trifork once
again is a publicly listed company. We are very
happy to have welcomed more than 7,000
new investors from all over the world and to
enjoy all the dialogues with them at investor
meetings and presentations. Being very close
to our investors and being able to present
them to our story and uniqueness is very im-
portant to us. The IPO also added a lot of Trifork
colleagues to our investor base. I highly value
that they all have the opportunity to become a
partner and co-owner of Trifork.
At the end of the year, Trifork, as the rest of the
world, also experienced the latest impact of
the Omicron mutation of the Covid-virus that
caused many employees to become infected
or forced them to stay in quarantine. The way
we are organized and work in most cases
allows us to be just as effective when working
from remote locations, and this has limited
the negative impact on our performance. Our
total sick leave in 2021 was still only 2.4%. I am
impressed by our colleagues’ energy and
ability to stay engaged, keep the spirit high,
and deliver quality work under these condi-
tions. They are the heroes behind our current
success, and we look forward to welcoming
everyone back in the offices in 2022. At the
end of 2021, and despite the deconsolida-
tion of Dawn Health, we had 950 employees,
compared to 828 at the end of 2020.
Most of our customers now have learned and
adapted to the fact that we can deliver great
quality software from remote locations and in
some cases, we even see higher efficiency on
our deliveries. That being said, we still think that
some processes like e.g., design-thinking inspi-
rational workshops are best when conducted
in person, and we look forward to speeding up
innovation with our customers in 2022.
Despite the lockdowns, we managed to com-
plete two in-person GOTO conferences
in June and November. It was very nice
to see so many enthusiastic and happy
attendees joining in real life – they
seemed to have missed the confer-
ences a lot. With the latest release of
restrictions in many countries, we now
trust that things will normalize a little
bit more so that we can plan more
conferences in 2022. We expect to welcome
our audience back again in Amsterdam,
Copenhagen, and London. Our YouTube tech
channel continues the exponential growth,
now (Mar/22) totalling more than 30 million
views and being one of the largest in the world.
The tragic invasion of Ukraine is affecting
everyone. Trifork does not have any direct
business with or in Russia or Ukraine but we
have around 10 colleagues who are either of
Russian or Ukrainian decent. Our thoughts go to
them and their families. We will support them
the best we can and hope this aggression
and war will be stopped as soon as possible.
We also support some of the humanitarian
organizations that are engaged in Ukraine and
urge all our employees to do this as well. So far,
the war has not had any direct influence on our
business. However, if it continues and escalates
there will be a risk of a negative effect.
In 2021, we have continued to support and
inspire our FinTech customers to increase
performance and implement new solutions
and, overall, this business area has grown by
40% compared to 2020.
With the Trifork Labs co-founding and invest-
ing in three new FinTech start-up companies
(&Money, Kashet and ComplyTeq), we are in
a position where we can empower innovation
to future digital FinTech solutions. This gives
a lot of energy and we look forward to doing
this even more in the future.
Trifork continues our strong focus on innovating
new solutions within Digital Health. In 2021, we
delivered the critical infrastructure needed to
handle the Covid-19 vaccination effort and the
Corona passport in Denmark. We completed
the delivery of a digital sign-up solution for
electronic health journals for citizens in
Switzerland. We implemented a digital
version of the pregnancy record used
by all pregnant women. We engaged
in a strong partnership with BørneRiget
– a brand new Children’s Hospital in
Copenhagen, setting new standards for
how to treat children and their parents.
Trifork also joined a worldwide con-
sortium for a 5-year research project
(Gravitate Health) that aims to make
medicine information more accessible
and understandable for patients.
The world will continue to
change and challenge us
to inspire our customers to
innovate by digitalization
2021-06
2021-0
2021-12
2021-01
2020-01
201-01
25M
30M
Total views
GOTO YouTube channel
20M
15M
10M
Annual Report 2021
5
Letter of the CEO
In 2016, we co-founded Dawn Health with an
ownership of 50.4% as a consolidated compa-
ny aimed at creating solutions for MedTech and
Pharma companies. The ambition was to save
lives by bringing together research, care, and
technology. In the last five years, the com-
pany has worked closely together with other
Trifork Digital Health business units and has
managed to deliver very impressive solutions.
Dawn Health is now a frontrunner in providing
software as a medical device (SaMD) and we
believe that the company can soon become
a certified legal manufacturer. In November
2021, we invited new investors with considera-
ble Pharma expertise to join us as partners in
accelerating the development of the company.
They provided DKKm 130 in new funding to ex-
pand the global footprint and accelerate reve-
nue growth. As a consequence, our ownership
was diluted to 32.6% and we deconsolidated
Dawn Health, which we now consider one of our
fast-growing Labs companies. The direct effect
on our financials was an income of EURm 22 on
Trifork Group EBITDA.
The construction of our first smart-building
(TSBOne) was a little delayed due to the supply
chain challenges for building materials but
the building has now been constructed. We
expect to implement all the technology within
the next six months and be able to move in
sometime in 2022. In the beginning of 2022, we
also launched a new smart-building (TSBThree)
based on the same concept as the first one.
This building will be a part of the Water Valley
in Aarhus, where we will join Aarhus Vand and
other companies in developing new wa-
ter technologies that can help improve our
environment.
In June 2021, we acquired the Swiss company
Vilea. Vilea and all their great employees was
so close to our DNA that they immediately fitted
in as a new business unit and started collabo-
ration with other business units. Vilea is one of
the market leaders in Switzerland to develop
Smart Enterprise solutions, and they currently
deliver to both the aviation and the building in-
dustries. In October 2021, we acquired the small
Danish company Strongminds that shares our
commitment to deliver solid software crafts-
manship, where high quality and the use of
new technologies, tools and methods are key.
With Strongminds as a new business unit in the
Trifork family, we not only get a handful of very
skilled employees and an engaged founder
as business unit lead, we also gain additional
specialist knowledge within cloud technology,
as well as new public and private customers.
Trifork Labs continued the active investment
strategy with both exits (Humio) and invest-
ments in new and existing start-up companies.
Besides the investments in FinTech start-ups,
we also invested in Visikon and Exseed Health
(Digital Health), Dryp, Upcycling Forum and
TSBThree (Smart Building) and Arkyn (Smart
Enterprise). In January 2022, Trifork Labs invest-
ed in the companies Promon (Cyber Protection)
and Feats. Promon with their App shielding
product fits into our strategy about increasing
services to help protect our customers against
cybercrime and hacking, and we look forward
to working closely together with Promon. In
Feats, we see a startup that is pioneering a way
for companies like us to give their employees
real and visible credit for the work and the solu-
tions they help bring to life. This is something
that we like to support, and we believe it will be
very important in the future.
Trifork is still net cash positive, and we will
continue our M&A strategy and work on more
acquisitions in 2022. No effect from potential
new acquisitions is included in the current
guidance for 2022. In 2022, Trifork target total
revenue of EURm 175-180, Trifork Segment adj.
EBITDA of EURm 39.5-32.0 and Trifork Group
EBIT of EURm 15.5-18.0.
Jørn Larsen
CEO, Trifork Group
Our organization of small
empowered agile teams
continue to show resilience
and ability to grow and
delivering quality software
Annual Report 2021
8
Key figures & main events
Financial highlights and key figures
(EURk) 2021 2020 2019 2018 2017
Trifork Group Income statement
Revenue from contracts with customers 158,525 115,358 106,428 86,508 64,523
- thereof organic 137,980 103,973 99,044 80,230 62,142
- thereof from acquisitions 20,545 11,381 7,384 6,278 2,381
Special items
1
20,253 -955 2'949 - -
Adjusted EBITDA 27,123 17,930 12,688 10,066 7,490
Adjusted EBITA 19,475 11,210 7,455 8,161 5,847
Adjusted EBIT 15,354 7,898 5,286 6,126 3,954
EBITDA 47,376 16,975 15,637 10,066 7,490
EBITA 39,728 10,255 10,404 8,161 5,847
EBIT 35,607 6,408 8,235 6,126 3,954
Net financial result 1,049 40,634 9,508 9,904 11,067
EBT (Earnings before tax) 36,656 47,042 17,743 16,030 15,021
Net income 32,696 44,658 16,349 14,769 13,741
Trifork Segment
Revenue from contracts with customers 158,525 115,358 106,428 86,508 64,523
- Inspire
2,390 1,945 8,051 7,140 7,393
- Build
122,980 86,705 76,578 61,502 43,924
- Run
32,650 26,422 21,458 17,818 12,648
Adjusted EBITDA 28,626 20,168 13,250 10,701 7,982
- Inspire
-640 -1,522 -287 346 -155
- Build
26,046 16,913 9,297 6,940 4,733
- Run
7,438 5,866 5,872 4,287 3,135
Adjusted EBITA 20,978 13,448 8,017 8,796 6,279
Adjusted EBIT 16,857 10,136 5,848 7,066 4,652
Trifork Labs Segment
Net financial result 4,806 41,396 9,599 10,699 10,433
EBT 3,303 39,158 9,037 9,759 9,734
Trifork Group Financial position
Investments in Trifork Labs 47,259 75,861 32,531 19,685 14,738
Intangible assets 76,288 72,990 33,445 34,840 29,140
Total assets 245,664 229,109 122,065 96,271 75,733
Equity attributable to the shareholders of Trifork Holding AG 109,798 80,494 55,757 42,369 31,567
Net liquidity/(debt) 17,100 -37,393 -14,214 -11,631 -11,608
The financial highlights and key ratios have
been prepared on the basis of the CFA
Society Denmark “Recommendations &
Ratios” (January 2022).
"Adjusted" means adjusted for the effects of
special items.
For the definitions refer to page 149.
1 Include IPO-preparation costs, M&A legal costs
and other income from deconsolidation.
Annual Report 2021
9
Key figures & main events
2021 2020 2019 2018 2017
Cash flow (in EURk)
Cash flow from operating activities 7,775 17,787 10,514 6,563 8,937
Cash flow from investing activities 49,655 -31,516 -4,560 -1,358 -4,835
Cash flow from financing activities -32,406 25,877 -9,850 -1,109 -3,885
Free cash flow 2,073 14,373 7,490 3,175 5,365
Net change in cash and cash equivalents 26,671 12,005 -3,735 4,088 95
Share data (in EUR)
Basic earnings / share (EPS basic) 1.52 2.33 0.83 0.75 0.74
Diluted earnings / share (EPS diluted) 1.52 2.33 0.83 0.75 0.74
Dividend / share 0.380 0.580 0.047 0.105 0.129
Dividend yield 25.0% 25.0% 5.8% 14.3% 17.8%
Employees
Average number of employees (FTE) 880 682 626 504 424
Financial margins and ratios
Trifork Group
Adjusted EBITDA-margin 17.1% 15.5% 11.9% 11.6% 11.6%
Adjusted EBITA-margin 12.3% 9.7% 7.0% 9.4% 9.1%
Adjusted EBIT-margin 9.7% 6.8% 5.0% 7.1% 6.1%
EBITDA-margin 29.9% 14.7% 14.7% 11.6% 11.6%
EBITA-margin 25.1% 8.9% 9.8% 9.4% 9.1%
EBIT-margin 22.5% 5.6% 7.7% 7.1% 6.1%
Equity ratio 44.7% 35.1% 45.7% 44.0% 41.7%
Return on equity 30.8% 63.4% 31.1% 37.0% 49.0%
Trifork Segment
Organic revenue growth 19.6% 2.6%
1
13.8% 24.2% 3.9%
- Inspire 22.9% -75.8% 12.8% -3.4% 17.2%
- Build 18.2% 6.0% 15.4% 26.6% -7.9%
- Run 23.5% 20.8% 22.6% 58.8% 255.8%
Adjusted EBITDA-margin 18.1% 17.5% 12.4% 12.4% 12.3%
- Inspire -26.8% -78.3% -3.6% 4.8% -2.1%
- Build 21.2% 19.5% 12.1% 11.3% 10.7%
- Run 22.8% 22.2% 27.4% 24.1% 24.8%
Adjusted EBITA-margin 13.2% 11.7% 7.5% 10.2% 9.7%
Adjusted EBIT-margin 10.6% 8.8% 5.5% 8.2% 7.2%
EBITDA-margin 30.8% 16.7% 15.2% 12.4% 12.3%
1 Adjusted for deconsolidation effects.
Annual Report 2021
10
Key figures & main events
An outline of the year
Financial Highlights of 2021
In 2021 the Trifork Group has managed to
grow significantly in both revenue and
profit from operations.
The financial highlights focus on adjusted
profit-ratios, in which income and cost for
special items are excluded. In 2021, this refers
to IPO-preparation costs and other income
from deconsolidation.
Trifork Group
With a total revenue of EURm 158.5, the
Trifork Group achieved a consolidat-
ed growth rate of 37.4% (whereof 19.6%
was organic and 17.8% was acquisitional
growth).
The acquisitional growth came from Nine
A/S (September 2020), Vilea Group (Mai
2021) and Strongminds ApS (November
2021).
EBIT for 2021 was EURm 35.6, compared to
EURm 6.4 in 2020.
EBT (earnings before tax) for 2021 was
EURm 36.7, compared to EURm 47.0 in
2020.
Net income for 2021 amounted to EURm
32.7, which is a decrease of EURm 12.0
compared to 2020 that was significantly
influenced by the exit of the Trifork Labs
company Humio Ltd.
Equity attributable to shareholders of
Trifork Holding AG as of 31 December 2021,
was EURm 109.8, giving an Equity Ratio
of 44.7% at the end of 2021, compared to
35.1% at the end of 2020.
Trifork Segment
Adjusted EBITDA of EURm 28.6 for 2021 is
equal to an 18.1% EBITDA-margin and rep-
resents growth of 41.9% compared to 2020.
Adjusted EBITA was EURm 21.0, which
equals a 13.2% EBITA-margin and an in-
crease of 56.0% compared to 2020.
Adjusted EBIT was EURm 16.9, which equals
a 10.6% EBIT-margin and an increase of
66.3% compared to 2020.
Trifork Labs Segment
Positive fair value adjustment on Trifork
Labs investments was EURm 5.0, com-
pared to EURm 41.3 in 2020. The high
amount in 2020 was primarily driven by
the exit of the investment in Humio Ltd.,
agreed in December 2020. The respective
proceeds were received in March 2021.
Main Events
Trifork Group
The main event for the Trifork Group was
our IPO
in May 2021, where we complet-
ed a successful listing on OMX Nasdaq
Copenhagen including a 144a placement
to Qualified Institutional Buyers in the US.
At the IPO, we welcomed more than 7,000
new investors from all over the world and
received net proceeds of EURm 17.4 based on
a primary offering of 5% new shares.
In 2021, Trifork became a participant of
the UN Global Compact, which means we
will strengthen our existing focus on the 10
principles of the UN Global Compact and
the 17 UN Sustainable Development Goals.
Trifork Segment
Despite the continued lockdowns due to
Covid-19, we managed to complete two
in-person GOTO conferences in June and
November. Our YouTube tech channel
continues to increase activity and in 2021
the number of views grew more than 8
million to over 28 million views in total at
the end of the year.
The high organic revenue growth was
based on a high activity level in Digital
Health in Denmark, Fintech in UK and win-
ning new customers where Trifork provide
both Cyber Protection and Cloud opera-
tion services.
The strong growth in Digital Health came
from our strong focus on innovating new
solutions within Digital Health. In 2021, we
delivered the critical infrastructure needed
to handle the Covid-19 vaccination effort
and the Corona passport in Denmark. We
completed the delivery of a digital sign-up
solution for electronic health journals for
citizens in Switzerland. We implement-
ed a digital version of the pregnancy
record used by all pregnant women and
we engaged in a strong partnership with
BørneRiget – a brand new Children’s
Hospital in Copenhagen, setting new
standards for how to treat children and
their parents. Trifork also joined a world-
wide consortium for a 5-year research
project (Gravitate Health) that aims to
make medicine information more accessi-
ble and understandable for patients.
In our UK Fintech business area, we grew
by increasing services to existing cus-
tomers where we are deeply involved in
developing new solutions and continuous-
ly updating their existing infrastructure to
meet increasing demands.
Annual Report 2021 Key figures & main events
11
Our run-based revenue grew organic by
23.5% and is still the revenue stream that
increases with the highest organic growth
ratios. In 2021, this area with an adjust-
ed EBITDA-margin of 22.8% was also the
sub segment with the highest margin. The
growth was especially supported by the
increased activity in our Security Operation
Center where we deliver 24/7 surveillance
and managed security to our customers
based on product offerings that we have
built over the last two years.
In late 2021, we established two new opera-
tion centers. One in Switzerland and one in
Denmark to support future growth in the run-
based revenue.
In 2021, we completed two acquisitions:
Vilea Group: In May 2021, Trifork acquired
Vilea, a Swiss-based IT-company special-
ized in designing and delivering tailor-made
mobile enterprise applications. This expand-
ed Trifork’s position in Switzerland.
Strongminds ApS: In November 2021,
we acquired the small Danish company
StrongMinds. This company has specialist
knowledge within cloud technologies and
bring in relationships with new public and
private customers.
The growth effect from the new acquisitions
was EURm 1.6 on Build revenue.
Trifork Labs Segment
Trifork Labs in 2021 continued the active
investment strategy with both an exit (Humio)
and investments in new and existing start-up
companies.
In Fintech, we co-founded and invested in
three new startup companies (&Money,
Kashet and ComplyTeq).
In Digital Health, we invested in one new
startup (Visikon) and increased investments
in one existing (ExSeed Health).
In November 2021, Trifork invited new investors
with considerable Pharma expertise to join as
partners to accelerate the development of
our Dawn Health business unit. The investors
purchased 6% of Trifork’s shares for DKKm
18 and provided new funding of DKKm 130
to expand the global footprint and acceler-
ate revenue growth. As a consequence, our
ownership was diluted to 32.6% and this led to
the deconsolidation from the Trifork segment
on 30 November 2021 and transfer of the re-
tained investment to the Trifork Labs segment
at an initial fair value of EURm 20.3. The direct
effect on our financials was an income of
EURm 22.1 on Trifork Group EBITDA.
In Smart Building, we invested in four start-
ups (Develco, Dryp, Upcycling Forum and
TSBThree) - all with focus on sustainability
and building solutions that will help improving
our environment.
In Smart Enterprise, we invested more in our
Arkyn Studios startup that was a spin-off in
2020 from one of our existing Smart Enterprise
business units.
In Cyber Protection, we invested in one new
startup (Promon). As part of this investment
Trifork will also be a reseller of the products
from Promon.
In total, four investments raised EURm 22.6 in
new external funding in 2021.
In January 2022, Trifork Labs invested in the
startup company Feats as an initiative to
build a platform that can improve motiva-
tion and satisfaction for all our colleagues by
giving everyone credit for the solutions they
contribute to create.
Annual Report 2021 Targets & guidance for 2022
13
Trifork Group
Results and Growth
In 2022, the Trifork Group targets total
revenue of EURm 175-180. This is a 13-15.5%
increase in revenue compared to 2021,
when taking the deconsolidation of Dawn
Health into account. The effect from this
equals 2.8%.
The Trifork Group targets an EBIT of EURm
15.5-18.0.
Two thirds of all depreciations and amor-
tizations are expected to be related to
acquisitions.
The fulfilment of the financial targets is
subject to some uncertainty. Significant
changes in exchange rates and business or
macro-economic conditions may have an
impact on the economic conditions of the
Trifork Group’s performance.
In the beginning of 2022, we have seen rad-
ical changes in the economic environment
with increasing interest rates, high volatil-
ity in exchange rates and higher inflation.
The ongoing war in Ukraine and the related
sanctions are impacting the economies of
many companies and may also affect the
type of decisions they will take in the future.
All this could lead to a negative impact on
the financial results of Trifork, but could also
have a positive effect such as an increased
focus on cyber protection where Trifork offers
a number of different solutions.
As a business, Trifork takes precautions and
will work on operating as effectively as pos-
sible in the current situation.
For the Group, a steep increase in inflation
could raise overall costs and impact profit
margins.
Trifork segment
The strategy for the Trifork segment is that
growth should represent a combination of or-
ganic and acquisitional expansion. Overall, our
guidance for the Trifork segment in 2022 is:
Revenue of EURm 175-180 equal to overall
growth of 13-15.5%
Organic growth to be 12.5-15%
Adjusted EBITDA of EURm 29.5-32.0
The acquisitional growth included in the
guidance consists of the acquisitions of Vilea
(May-2021) and Strongminds (Nov-2021).
In 2022, the revenue from Vilea will count
as inorganic in Jan-Apr and organic from
May-Dec, and revenue from Strongminds as
inorganic from Jan-Oct and organic from
Nov-Dec. In total, the included inorganic
growth is less than 1% of total revenue.
In 2022, we believe that most Covid-19 related
lockdowns/restrictions will be lifted and it will
be possible once again to complete in-per-
son conferences on a larger scale. This is
expected to have a positive impact on the
Inspire subsegment.
Trifork will continue to increase its business
based on the sales of solutions, products and
product related services. The focus is to invest
in generating Run-revenue as recurring and
scalable revenue with higher profit margins.
This will be done by developing concepts to
solutions in collaboration with our customers.
Our target is to continue to grow the Run-
revenue at the highest organic growth rates.
We expect that the revenue mix in 2022 be-
tween private and public will be at the same
level as in 2021.
We will continue our active acquisition strat-
egy and target new acquisitions during 2022.
No effect from potential new acquisitions is
included in the current financial targets or
guidance for 2022.
In the Trifork segment, other risks include
projects not being delivered on time or
delayed start of newly planned projects. If
product sales decline or if maintenance and
support of products prove to be too expen-
sive, this will also pose a risk.
Trifork Labs segment
Trifork Labs invests in founding new start-
ups that are part of the overall Trifork R&D
strategy. We aim to attract external funding
to our startups in order to finance their future
growth and success.
In 2022, as early as in January, we completed
an investment in the Cyber Protection com-
pany Promon and we got additional external
funding for our startup ExSeed Health. In
2022, we target to complete two to three ad-
ditional investment rounds with our startups.
We also expect to continue our current
investment strategy and invest in minimum
two new startup companies during 2022.
The costs of running Trifork Labs are expect-
ed to result in an EBITDA in the segment of
EURm -1.0-1.5.
At Trifork Labs, risks include a decrease in
value of investment if startup companies are
unable to secure funding or fail to develop
as expected.
In 2022, Trifork Segment guides
on EURm 175-180 in revenue
and EURm 29.5-32.0 in adjusted
EBITDA
13
Annual Report 2021
15
The Trifork Group
Overview
Trifork is a next-gen IT and business service provider striving to be at the fore-
front of technological innovation. We inspire and educate customers and col-
leagues in new technological possibilities, build innovative software solutions
and operate, maintain and continuously extend these for our customers. Since
our inception in 1996, we have been motivated by pushing the boundaries of how
new technologies and methods can be discovered, applied and developed into
novel solutions that can enable our customers to become industry leaders.
We strive to be at the forefront of the "tech-
nology wave" in the IT service sector by
constantly challenging the status quo for our
customers. We have just over 950 employ-
ees across 58 business units in 25 offices
in Europe and the USA, including Aarhus,
Copenhagen, Zürich, Berlin, Amsterdam,
Eindhoven, London, Stockholm, Krakow,
Budapest, Barcelona, Palma, Chicago and
San Francisco. We are a leader in digital
innovation in Denmark and are dedicated
to accelerate global business growth in
our core markets in Switzerland, the United
Kingdom and the Netherlands.
Trifork’s ability to stay at the forefront of
technology and to challenge status quo for
customers is captured by our distinct go-
to-market model and our very special model
for research and development.
This is organized into two segments, Trifork
and Trifork Labs. In the Trifork segment, our
go-to-market model consists of three interre-
lated sub-segments:
Inspire, where we discover technology, new
ideas and trends and share knowledge
about them and inspire customers through
Design Thinking workshops.
Build, where we create prototypes of cus-
tomer products and develop the software.
Run, where we provide cloud operations,
managed services and continuous devel-
opment support for the customer products
we develop.
In the Trifork Labs segment, we found, co-
found or invest at a very early stage in new
startups as a driver for our overall research
and development strategy. We want to be
close to technology inventors and bring this
knowledge to use in the development of
solutions for customers in the Trifork seg-
ment. We focus on investments in:
Software product companies that invent
new technology
Companies building technology that
can be a business driver for our Trifork
segment
Companies that can be a strategic
partner.
At Trifork, we work with our
customers to redefine
business processes with
next-gen software solutions.
We strive to change the world
with software.
Trifork
Group
Trifork
Trifork
Labs
Triforks
25 active Labs investments
Minority investments
Triforks@BspirC=Aui;F=uB
58 business units across 12 countries
Maeority l gctive fontro^^in_
Annual Report 2021
16
The Trifork Group
Competitive strengths
Positioned in attractive
next-gen segment of
growing IT market
We are entirely focused on the fast-growing,
next-gen technology market that is driven by
the demand for digital transformation.
Within the next-gen segment, we focus on
FinTech, Digital Health and Smart Building
(our verticals) and Smart Enterprise, Cyber
Protection and Cloud Operation (our hori-
zontals) for customers in our core mar-
kets in Denmark, UK, Switzerland and the
Netherlands.
Full circle go-to-market model of “Inspire-Build-Run”
We have long-standing relationships with a
diverse base of blue-chip customers across
all our vertical and horizontal business areas
within both the private and public sectors.
They continuously entrust us to solve com-
plex operational challenges. We accompany
customers throughout the entire lifecycle of
their solution from idea to development and
operations and constantly keeping the prod-
ucts agile and up-to-date.
Our go-to-market model that
consists of three interrelated
segments - "Inspire", "Build"
and "Run" - is at the core
of Trifork’s success and
enables us to con-
tinuously explore,
learn and deliver
next-gen solutions
to our customers.
As part of this go-to-market model, we can
develop various stacked solutions for the
same customer. This creates a stable base
of repeat stacked business and also recur-
ring revenue through long-term support
contracts, licenses and/or cloud operations
handled by Trifork.
Cutting-edge R&D capabilities
fueled by venture financed
Trifork Labs
Trifork Labs leads our venture-financed R&D
activities. Trifork has been active in founding,
co-founding, and investing in tech startups
that develop innovative software solutions
for more than 20 years and currently holds
stakes in 25 active startups. In the process
of working with startup companies, we gain
valuable know-how from their technologi-
cal development and become familiar with
emerging disruptive technologies at an early
stage. Trifork Labs investments are focused
on three investment criteria. First, the target
must be a software product company that
invents new technology. Second, the invest-
ment should build technology to support our
go-to-market model and third, investments
are evaluated based on their potential to
develop our customer base or become a
strategic partner with synergy potential.
1 2 3
Inspire
Build
Run
Customers
Annual Report 2021
17
The Trifork Group
Established track record of
growth and profitability
Since 2007, Trifork has shown a solid track
record of growth with a revenue CAGR of 24%.
In the same period, there has not been a sin-
gle year without profit. The growth has been
continuously supported by strategic acquisi-
tions. In addition, Trifork has strengthened its
partnerships with leading companies in the
technology industry, including Apple, Google
Cloud and SAP, and operational partner-
ships with major technology companies and
Silicon valley start-ups.
Self-managed Teal organiza-
tion ensures motivation, en-
trepreneurial culture and agile
delivery model
Trifork has developed an organizational
model that is based on a group of individ-
ual and largely autonomous business units
that share a joint corporate DNA, culture
and philosophy. This organizational model,
which has been integral to Trifork’s business,
is known as a Teal organizational model and
enables us to adapt and achieve scale and
encourages entrepreneurial spirit, motiva-
tion, innovation, collaboration and talent
attraction and retention.
Sustainability with Trifork Smart Building, Trifork Labs invest-
ments in clean-tech startups and solutions to save resources
Sustainability is at the heart of the way Trifork
does business and we engage with dedica-
tion in sustainability many levels. In 2021 Trifork
began with the construction of our first sus-
tainable office building, Trifork Smart Building
(TSBOne). TSBOne will be a carbon-neutral
building, built with sustainable and upcycled
materials and equipped with the most ad-
vanced technologies. The aim is not only to im-
prove our own environmental footprint but also
show customers and vendors in the building
industry how technology can contribute to an
environmental friendly construction and usage
of buildings. Following TSBOne, Trifork expect to
see more TSBs emerge in the coming years.
Trifork Labs has invested in several clean-
tech startups. Upcycling Forum, dedicated to
sustainability by providing a platform for reuse
and upcycling of building materials, and DRYP,
a smart water management technology com-
pany. Both, Upcycling Forum and Dry are also
involved in TSBOne.
Many of the solutions that Trifork develops for
our customers redefine and simplify business
processes and optimize efficiency, cost and re-
sources. Examples for such customers in-
clude Vestas and Banedanmark.
4 5 6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2010200920082007 2011 2012 2013 2014 2015 2016 2017 2018 2019 20212020
24%
CAGR
Acquired revenue
Organic revenue
(not separately disclosed until 2014)
Annual Report 2021
18
B C D E
Grow
Europea
position
A Perfecting the “Trifork way”
Grow '+un(
revenue
Invest in strategic
collaborations
and M&A
AcceleratI
partnerships
Strategy
Trifork Strategy
Our key strengths have positioned us well to
take advantage of the continued growth in
demand for innovative and disruptive solu-
tions in the next-gen technology market. Our
strategy is focused on the following.
Perfecting the "Trifork Way"
We will further perfect 'The Trifork Way' by
ensuring the continued work on a modern
and scalable business model, and continue
to be curious on new technology and strive
to be the best place to work in our industry.
Grow European position
We will further deepen and strengthen our
competitive positions in existing markets
and stimulate our organic growth across
existing business units.
Grow "Run" revenue
We will diversify and expand revenue based
on our strong 'Build-relationships' with stra-
tegic customers, and continue to grow the
'Run-services' we offer.
Invest in strategic
collaborations and M&A
We will form strategic partnerships and
establish new startups with our partners. We
also target acquisitions to acquire new ca-
pabilities, strengthen our position or expand
geographically.
Accelerate partnerships
We will continue to build partnerships with
leading companies in the technology indus-
try, including Apple, Google Cloud, Microsoft
and SAP - to stay at the forefront of
using these technologies.
The Trifork Group
A
B
D
C
E
Annual Report 2021 The Trifork Group
19
Perfecting the “Trifork Way”
The foundation of Trifork’s strategy is to
continuously develop our core competen-
cies and capabilities in order to maintain our
market position as a disruptive and inno-
vative provider of next-gen technology, one
that is able to attract the best talent, who
can work on the right challenges and attract
the right customers.
Perfecting the “Trifork Way” is about our
philosophy and way of doing business. We
believe that the future organizational models
will transform and the coming generation
of employees will be seeking new types of
organization structures to work in.
Therefore, we focus on the following areas:
1. Strengthening our culture to promote
next-gen capabilities by continued focus
on inspiring our staff via our GOTO uni-
verse (30 million views on YouTube) and
developing their technical skills through
education, allowing experimentation and
ensuring inspiration
2. Supporting our Culture by advancing
the Teal organizational model, where we
ensure a flat hierarchy and an unbureau-
cratic way of interacting and doing busi-
ness – we call it “Empathy at Scale”
3. Being the best place to work, by making
room for people to take initiatives, live
their passion, deliver quality work and/or
launch their ideas on improving the world
with software
4. Supporting our Trifork Labs R&D-model.
1. Next generation Capabilities
At Trifork, we take pride in and promote en-
trepreneurship and we love technology!
This means that we continuously work on
strengthening our culture and encourage
our employees’ interest in learning next-gen
capabilities. Since our «Tech-world» is in an
ever-changing and rapid development, this
means that we constantly must learn new
technologies through education or research
by experiments.
This is also why the GOTO conferences and
our YouTube tech channel is an integral part
of our go-to-market approach, as well as a
part of our own ongoing knowledge devel-
opment ‘channel’, allowing our employees
to learn about the latest technology and to
be inspired by the thought leaders in our
industry.
To take the leap from being inspired to actu-
ally doing and being able to apply this in our
daily business, we also promote internal and
external Hackathons, where we provide a
“boxed environment” of risk-free experimen-
tation. In addition, several of our business
units are launching new internal knowledge
networks to further foster learning and
knowledge sharing.
2. Culture & Organizational Design
To make our employees thrive and have
an environment that promotes person-
al development and initiative, we believe
that we need to be an anti-bureaucratic
organization. Our theme for this is to be
«big in a small way», which refers to our Teal
organization and its way of helping us avoid
bureaucratic layers and staying agile.
The Teal organization model is a conscious
strategic choice and we are constantly
working on developing and refining this to
provide the best conditions for our teams.
One of the most important characteristics
is that we focus on keeping the number of
employees in our business units below 42
to keep a high degree of autonomy, close-
ness and personal understanding between
Business Unit Leaders (BULs), employees and
customers of these units.
When a business unit surpasses 42 mem-
bers, we «cell-divide» the unit into two new
meaningful teams and typically recruit the
new Business Unit Leader within the team.
This gives us a scalable growth model,
where the culture is preserved and organ-
izational growth becomes less painful and
constantly represents an opportunity for
career advancement to our employees.
We believe this closeness is central in creating
great relationships and partnerships, as we see
a higher sense of responsibility, entrepreneur-
ship, belonging and interpersonal understand-
ing. We identify this as «empathy at scale».
3. Best Place to Work
Being a «best place to work» is also a central
strategic priority and part of the «Trifork way».
When asking our employees about what is
most important in their job, we most fre-
quently hear things like «interesting work»,
«purpose», «great colleagues» and «have
fun». This fits well with our «empathy at
scale» model and our ambition of standing
out as a unique workplace for
ambitious people who
want to make a differ-
ence and be proud of the
results they achieve. A
great example of this is
illustrated in this video:
That’s why our Business Unit Leaders con-
stantly work closely with their teams to
ensure environments, where our teams and
individuals thrive. Ultimately, we measure our
success by having one of the lowest churn
rates compared to our industry peers.
4. Bring great ideas to life in R&D /
Labs
At Trifork, we promote and praise entrepre-
neurship and we have a solid track record
for helping startup companies at an early
stage to enter a pathway towards scalable
business success.
Our R&D is a profit center and we focus on
prioritizing ideas with real business potential
and using the right technologies.
We form startups as separate legal entities
that are financed by Trifork, the entrepre-
neurs and ideally also partners who want
to see the idea implemented in the market.
The entrepreneurs become founders and
employees of the startup where they are
supported by Trifork.
We measure ourselves by our ability to at-
tract external venture capital to secure and
accelerate the development of the startups.
To us, this is another proof point and a way to
balance the value creation and risk.
A
Annual Report 2021 The Trifork Group
20
Grow European position
Building on Trifork’s existing market position, we
focus to grow our position in Europe. Our strat-
egy is to deepen and strengthen our position in
the geographies where we already do business.
We see great untapped potential and opportu-
nities in deepening our engagements here.
This can be done by:
1. Growing our Business Units organically
2. Expanding further by internationalizing se-
lected solutions where we have first mover
experience from other existing markets
3. Making tactical acquisitions in areas
where Trifork sees high growth potential
and synergies
In Switzerland, we aim to strengthen our market
share by focusing on organic growth as well as
on opportunities for inorganic growth, thereby
increasing the share of our revenue represent-
ed by the operations in Switzerland.
In the Netherlands and United Kingdom, we
intend to focus on product development,
strengthening our existing customer relation-
ships, establishing DesignLabs and maintaining
our current market position.
In addition, we have an opportunistic approach
to grow our position in North America by organ-
ic growth and potential tactical acquisitions.
1. Organic Growth of our
Business Units
Trifork will continue to strive to outperform
the market in organic growth by seeking
to constantly develop and cross-utilize our
know-how and assets between our business
units and lab companies.
We plan to continue organic growth and to
prioritize customer product development in
our current markets while maintaining high
pricing discipline, and selectively launching
new initiatives and capabilities.
In addition, we form new business units as
a split from existing when a business unit
reaches the threshold size or as a new unit
for geographic expansion.
2. Further expand by globalizing
selected Business Areas
Digital Health infrastructure and applications
that utilize health data to assist profession-
als in providing better patient care is a rap-
idly maturing market and is gaining further
momentum. With our deep know-how in this
field and participation in the European HL7
standardization work, Trifork is well posi-
tioned to offer our experience and know-how
in an international context.
A further opportunity to position Trifork’s
know-how across markets is in FinTech solu-
tions, where our industry-specific experience
and know-how plus our Lab Companies
such as &Money, Complyteq and Kashet
represent further growth potential across
several of our markets.
In addition, for our Smart Enterprise and
Cyber Protection business areas, we expect
to be able to internationalize beyond our ex-
isting markets, as these services are in high
demand and represents a very strong value
proposition.
3. Tactical Acquisitions in areas
where Trifork sees potential
We intend to carefully seek and identify a
number of tactical acquisitions that can help
strengthen our local positions.
Grow "Run" revenue
By being a full-cycle service provider across
Inspire-Build-Run, we focus on developing
Trifork’s revenue mix with an emphasis on
recurring revenue growth. Trifork intends to
increase the engagement throughout the
product-life-cycle and thereby increase the
proportion from recurring business in total
revenue. We do not strive to win projects but
rather to engage in customer product devel-
opment relationships. The mutual competitive
advantage for our customers and us is that we
can keep the products fit and safe, thereby also
ensuring that they stay competitive and deliver
customer value.
Historically, “Run” revenue has shown the
highest organic growth rates and is a solid base
of recurring business, i.e. in long-term mainte-
nance contracts, cloud operations and cyber
protection.
Growing ‘Run’ business, by taking full
life cycle responsibility
The demand for «full life cycle» management
is growing as applications and architectures
become increasingly complex and business-crit-
ical. Software development cycles also become
shorter, which again impacts the need for main-
tenance after a product development is finished.
Our strategy is to offer support and a range of
services for hosting, maintenance, help desk etc.,
as these services give the customer the highest
security and flexibility. This way, we help custom
-
ers with their Application Life-cycle Management
and enable them to gain an overview of the
actual costs of running applications
.
The typical services include:
Solution Monitoring and Management,
Incident Management – handling prob-
lems and identifying root causes,
Operations Management – updating and
keeping the Apps fit and
Change Management to keep Apps up-to-
date and relevant to the enterprise users.
Continuous development of
customer products
Engaging in customer product development
is increasingly important as systems become
more and more complex and interconnected.
This, combined with shorter development cy-
cles, results in a new reality where applications
and systems need continuous development,
making us move away from isolated projects.
In addition to the ‘Run’ business, we are
increasingly collaborating with software
partners and our Lab-companies in offering
and reselling software products. We believe
that the combination of standard products
and customized development will be key in
the future to deliver attractive solutions to our
customers. A good example of this is seen in
our Banedanmark case.
Cyber Protection & Security Operations
Based on our long track record in handling
security in our solutions, Trifork in 2021 launched
a specific Trifork Security unit in response to a
growing demand for consulting and services in
cyber protection. Now, Trifork Group is intensi-
fying its focus on this area and has developed
services that offer its current and future cus-
tomers Managed Security.
With highly educated specialists and our
well-established SOC, Trifork monitors cyber
security for companies in 24/7 operations.
Trifork has established a cutting-edge product
portfolio that addresses these challenges. With
our setup, we monitor and identify each secu-
rity incident, which is validated and prioritized
and recommendations for remediation are
communicated to the customer. This is supple-
mented by our consultancy service that makes
recommendations and support on topics
such as response to identified weaknesses or
incidents.
Our strategy is to expand this offering and grow
across existing Trifork markets.
B
C
Market
leader
Founder
led
Value
creation
Strategic
match
S+eet,
spot
Annual Report 2021 The Trifork Group
21
Invest in strategic collaborations and M&A
Trifork has a long track record of successful
investments into both M&A activities and
investments in companies formed around
partnerships. Both investment types continue
to be key elements of our investment strategy.
In each their own way, they represent an im-
portant pillar in accelerating our growth.
For investments in companies formed around
partnerships, Trifork aims to continue to identify
strategic collaborations together with our part-
ners and customers, to help us create value
together. For M&A activities, we seek opportuni-
ties to advance key focus areas or acquire new
capabilities, to further accelerate our growth.
When we screen for M&A targets, we typically
get to know the companies through collabo-
ration and partnerships. The characteristics
are typically organizations sized from 10 to
50 employees, as these fit well into our Teal
organization model and we typically can help
these companies with expanding
their offerings and accelerating
growth. If we perform larger acqui-
sitions we need to identify a natural
pathway that leads to a structure
and fits in the “Trifork Way”.
Investments in forming
Partnerships
Trifork aims to continue to identify
strategic collaborations with cus-
tomers and partners to develop
solid startups around specific
needs and new technological
solutions. This is typically done
with the partner or partners in a
model that creates a close strate-
gic collaboration format, enabling
us to create high value and com-
petitiveness together.
We will continue to focus on these collabo-
rations and develop more partnerships like
existing ones such as &Money, Dawn Health,
Visikon, Kashet and Sundhedspartner.
Tactical and Strategic M&A
Closely linked to our geographic strategies
and segment strategies, we will seek to
perform Tactical and Strategic M&A. In doing
so we diligently pursue to find “sweet spot
investments” that fulfil our criteria for
Strategic match
Cultural match
High value creation
Being a Market Leader
Strategic match
Our strategic priorities within M&A are very
much driven by our specific country and
segment strategies, which we do not dis-
close in detail to the public.
However, at a high level, our M&A strategy
focuses on tactical and capability-driven
majority stake acquisitions within our six
horizontal and vertical business areas. We
engage were we see an opportunity.
Cultural Match and Founder led
When we screen M&A or investment targets,
we focus on what we define as a “cultural fit"
and "committed founders". The «Trifork Way»
provides a unique space for entrepreneurs
to thrive after becoming part of the Trifork
Group, and we are proud that almost all
founders have remained in the Group after
the acquisition and integration stage.
We offer founders a unique environment
where we encourage and support them
in further developing their business. They
typically remain autonomous in the Teal-
organization model and become part of a
network of entrepreneurs with whom they can
collaborate selectively. In addition, our man-
agement provides coaching and sparring on
organizational development, strategy and
business plans.
Another focus point is whether teams in a
potential acquisition target seem agile, pas-
sionate, and motivated about what they do,
and whether they have a stable and skilled
team that is committed to the company. Of
course, we also look at the collective ca-
pabilities of the leadership teams to assess
whether the business and organization have
the key pillars to successfully embark on
accelerated growth.
Value Creation
When investigating the potential for Value
Creation, Trifork's model is clearly differen-
tiated between Trifork Labs product startup
investments and Trifork segment acquisitions.
In general, we never engage in «bidding
rounds» and primarily engage in dialogues
where we assess whether we, as an investor,
can make a positive difference to the value
creation in a company in which we are about
to invest. We engage in cases where the
founders want to continue within their com-
pany and seek options to develop and scale
up their business, which also means that we
very rarely consider exit-cases.
In acquisitions, there is often a ‘natural’ point
of conflict between buyers’ and sellers’ views
on the value of the company. To mitigate this
natural tension and balance our risk to the
motivation of the founders whom we want to
keep onboard, Trifork typically defines realis-
tic earnout models, that adjust the final price
and/or later tranches of investments, based
on actual performance and cash flow gen-
erated in the company after the acquisition.
Market Leaders
When assessing a company’s growth and val-
ue potential, we also pay close attention to its
relative competitiveness and value creation. In
our view, being a market leader does not nec-
essarily mean being the largest in a field, but
rather being the best or the frontrunner that is
defining a new standard or market.
Good examples of this are our previous
acquisitions of Invokers and Vilea that are
frontrunners in modern mobility solutions,
i.e., on the new SAP cloud-based architec-
tures and in designing great user experienc-
es in the enterprise space.
D
Annual Report 2021 The Trifork Group
22
Accelerate Partnerships
We seek to constantly strengthen and grow
our partnerships, i.e., in the form of re-sell-
er relationships, business development
partnerships and operational partnerships
with leading companies in the technology
industry, including Apple, Google Cloud,
Microsoft, AWS and SAP. We also seek oper-
ational partnerships with important Silicon
Valley start-ups.
With these partnerships, Trifork deepens
its know-how in specific technologies and
products, and a number of Trifork experts are
certified in leading partners technologies
e.g., Architects in Google Cloud, AWS, Azure,
SAP & Microsoft. Trifork presents the partners’
products and services, when they are suita-
ble for the customer solutions – i.e., deliver-
ing specific competencies or offerings.
Trifork is particularly focused on develop-
ing its relationships with vendors within the
Smart Enterprise business area, as such
relationships enable us to offer addition-
al flexibility in addressing our customers’
needs. We focus on augmenting with smart
layers to improve performance and devel-
op better user experiences for employees.
A good example of this is our collaboration
with SAP & Apple.
E
Annual Report 2021
23
The Trifork Group
Trifork Labs Strategy
We seek to constantly be at the forefront of
technology and use this to innovate and de-
velop new business value with our partners
and customers.
At Trifork Labs, we do not see R&D as a cost
like many of our peers do. Rather, we focus
on generating ideas and create value by
steering the ideas on a successful path. For
this, we have developed a unique business
model to launch successful startup compa-
nies based on:
A close partnership with a customer where
the new company pivots around a joint
product- or solution-mission, or
a scalable business idea that is relevant
to a large market and can be accelerated
with our help, experience and network.
Forming close Partnerships
Forming partnerships with our customers
has become a successful model for creating
mutual success.
This model represents a number of strate-
gic advantages for both sides, as it forms a
natural and mutual interest in making things
work and is developed for long term shared
success. Furthermore, the partnership brings
the partners closer together and makes it
easier to collaborate.
Trifork will continuously work to identify
strategic collaborations with customers and
partners and, when the right circumstanc-
es exist, develop ventures around specific
needs and new technological solutions. The
objective will always be to generate extraor-
dinary high value and competitiveness.
Examples of such partnerships are the ones
we have with &Money, Dawn Health, Visikon,
Kashet and Sundhedspartner. Trifork Labs
has investments in all these companies and
drives value creation of these at the same
time as they are key partners to the Trifork
segment.
Drive R&D to scalable business and
value in Trifork Labs
Trifork Labs has participated in founding or
making early investments in several success-
ful companies, including Humio, TradeShift,
Chainalysis and CloudCredo.
Our strength lies in our experience and partner-
ships with growth investors and our business
network. Our model of co-founding with en-
trepreneurs and partners is unique and a solid
test of idea quality and commitment.
Trifork Labs Investments primarily focus on
promising early-stage companies that we
can help shape and accelerate. At Trifork Labs,
these entrepreneurs’ young companies gain
access to network, management sparring and
the possibility to collaborate with the Business
Units in the Trifork segment.
In other words, Trifork Labs clearly focuses on
«smart-money» into next generation tech, new
scalable product technologies or businesses
that, at the same time, match and provide
synergy to our business areas.
We believe that product companies who
invent new technologies and solutions have a
development cycle where high value is created,
and the companies increase in valuation as
their product matures and increase outreach.
But we also believe that there is a point where
the solutions become more mainstream and
competition with other products increases to a
point where it's harder to continue to increase
valuation. Trifork Labs is trying to balance our
investments in startups, so that we will exit from
these before the developed solutions become
mainstream.
Annual Report 2021
24
The Trifork Group
Go-to-market model
Trifork’s go-to-market model is based on the three subsegments, Inspire, Build and Run, which
we consider to be the three phases of our relationship with each customer. The go-to-market
model is designed to ensure that our customers are at the center of all activities carried out by
Trifork, and Trifork maintains a strong customer relationship throughout the software develop-
ment journey. At each phase of the go-to-market model, we validate ideas, concepts and prod-
ucts against customer needs and the business value that such ideas, concepts and products
represent. This go-to-market model is vital to Trifork’s success as it provides the right know-how
and enables us to be close to and drive innovation.
Inspire
The aim of the Inspire phase of our go-to-
market model is to enable the creation of
ideas. The Inspire phase can be broken down
into two parts. The first part revolves around
the GOTO brand and includes our confer-
ence activities. The conferences are a source
of inspiration for both customers and our
colleagues and serve as a customer acqui-
sition channel. GOTO conferences are en-
terprise software development conferences,
hosted by us as developers and intended for
team leaders, software developers, archi-
tects and project managers. The ambition
of each GOTO conference is to facilitate the
best content, on the most important tech-
nology topics, presented by thought leaders
in the fields of software development and
technological innovation. The main objective
of the GOTO conferences is to foster inspira-
tion and provide an opportunity for valida-
tion and feedback on new technology ideas.
In addition, the GOTO concept is an effective
way to promote the Trifork brand and identify
potential new customers or colleagues. The
second part of the Inspire phase, delivered
by the Trifork Design Thinking teams, is tied
to specific customers and serves as a bridge
to the Build phase. This part of the Inspire
phase includes specialized workshops de-
signed to help customers refine and deliver
innovative digital solutions and concepts.
We inspire and build prototype software
solutions in these workshops based on a
design thinking approach - an approach
that emphasizes system design. The entire
design thinking approach focuses on small
scale testing of solutions and the continuous
refinement of a prototype.
Build
Run
Inspire
Customers
GOTO
(Conferences)
Accelerate
(Desi*n + (nnovate)
Concept =
Proof of Concept
Customer ProHuct
Development
ProHucts
ClouH
Operations
1.5%
20.6%
77.6%
GOTO
COPENHAGEN
2021
Annual Report 2021
25
The Trifork Group
Build
As the Build phase usually takes place after
the Inspire workshops, where we have al-
ready developed a functioning prototype or
at least a strategic roadmap together with
the customer, we are often asked to develop
a fully featured solution. We estimate that
the conversion rate from customer-specific
Inspire workshops through to the Build phase
has been approximately 70% in the last two
years.
Based on the ideas generated in the Inspire
process, we then help our customers bring
new ideas to production by developing
software solutions using next-gen technol-
ogies. This is done in the Build phase of the
go-to-market model. Build is most often
carried out in the form of development
"sprints", through an agile "Scrum" develop-
ment process. The "Scrum" framework for
software development includes frequent
customer touch-points and a series of
smaller development phases to ensure that
development is constantly refined and that
all parties involved in the development pro-
cess are aligned on shared goals. Each small
development phase is known as a sprint and
each sprint typically lasts two to four weeks.
At the end of each sprint, our teams present
the outcomes of the sprint to the customer
to validate the developed functionality. We
then set new goals with the customer for
the following sprint. These sprints continue
throughout the execution phase and con-
clude with the finalization of the product. We
believe that an agile software development
process is instrumental for developing novel
solutions, applying next-gen technology and
an effective means of meeting customer ex-
pectations and reducing development risks.
Working closely with the customer, we devel-
op tailor-made software solutions, that often
include standard components, open source
components and Trifork-owned compo-
nents. The agile nature of the work process
enables us to deliver bespoke software
and fully functional systems in three to six
months. We offer product development solu-
tions, mobile first solutions, SAP solutions,
design and migration as well as cloud-
based operations, everything with a high
focus on design and user experience.
Run
Once the Build phase has been completed
and a solution implemented, Trifork also
offers service agreements where we operate
the product solution. When operating ser-
vice agreements, we continuously update
and upgrade our customers’ platforms
with the newest technology, keeping the
solutions up to date. This to us is recurring
business with our customers and keeps us
very close to them. We also offer to operate
and host our customers' private, public or
hybrid cloud systems.
The products that we develop are typically
designed to be agnostic between public
and private clouds, ensuring a high degree
of flexibility for our customers.
Trifork has established recognized re-seller
relationships/strategic partnerships with
all the major global public cloud platforms
including Google Cloud, Amazon
Web Services and Microsoft
Azure. In 2021 we have
established a Tier 4 da-
tacenter in Switzerland
and built a new
modern datacenter in
Denmark.
When a particular concept has been im-
plemented a number of times for different
customers, it becomes a candidate for
Trifork’s standard product portfolio. Initially
we sometimes hold the IP rights for such
concepts/products and other times our
customers initially have the IP and then we
later negotiate the IP back to Trifork when
this makes sense to both the customer and
Trifork. In general, the revenue potential from
Run grows as the number of such commod-
itized software products grows. Our mort-
gage dead administration system Panteos is
an example of such a software product.
Frequently
implemented
solution
Customer
Need
FinTech
Smart Enterprise
Cyber Protection
Clo,* $perations
Digital Health Smart <,il*ing
15.0% 10.J% 2.7%
49.2%
6.9%
15.9%
Annual Report 2021
26
The Trifork Group
Business Areas
Trifork delivers its services across
three distinct verticals (FinTech, Digital
Health and Smart Building) and three
megatrend-driven horizontals (Smart
Enterprise, Cyber Protection and Cloud
Operation).
Where the verticals are focused on
specific markets/domains, the horizon-
tals are more agnostic to the markets
and support both the vertical markets
as well as other markets.
In the verticals we have deep domain
knowledge, and in the horizontals,
Trifork has attracted some of the best
talent in the industry.
In all business areas, we are creat-
ing solutions and concepts for our
customers and support them on an
ongoing basis.
FinTech
STRATEGIC PRIORITIES
Expand the collaboration and business
in Switzerland, Denmark, Sweden, the
Netherlands and the United Kingdom
Build new partnerships around new eco-
systems and 3rd party offerings
Further leverage cross-selling, by utilizing
Trifork family members capabilities with
Nine, OpenCredo, Erlang Solutions & Netic
Increase productification of services and
acquire specialist product companies
Further invest in new Fintech resources and
capabilities
REVENUE (EURM)
23.3
16.7
2021
2020
Annual Report 2021
27
The Trifork Group - Business Areas
The FinTech Market
The financial sector is undergoing signifi-
cant change. In particular, modernization
and digital transformation is changing
the way the industry interacts with its
customers, and to some extent also the
structure in the industry. The use of online
banking is continuing to grow across
markets but there is still a significant
untapped potential. The average pene-
tration rate in Europe is estimated to be
around 60%, where Denmark, for exam-
ple, stands at 94% (Statistica 2020).
The emerging trends in open bank-
ing and platform companies offering
banking as a service, are changing the
playing field and the structure of the
industry, as barriers to entry are low-
ered. Furthermore, we see an increase
in customer expectations for digital and
user-friendly solutions across the bank-
ing and insurance sector. Typical FinTech
solutions include management of data
from multiple systems, partners and
users, while maintaining a high level of
security and user-friendliness.
In 2021, the financial sector experienced a
general consolidation trend with mergers
and acquisitions of banks and insur-
ance companies. Especially the mobile
payment space saw further emergence
of new neobanks and the accelerating
growth of FinTech startups supported by
successful funding rounds. Neobanks
and traditional banks showed a strong
interest in banking as a service provider,
with a focus on building AML solutions
and to fulfil regulatory requirements
including GDPR.
Our FinTech Business
With our Inspire-Build-Run model we
empower our FinTech customers in their
digital transformation journeys. This
across a broad sector spectrum in retail
banking, investment as well as life- and
non-life insurance. We are specialists in
developing customer facing and advisor
facing solutions as well as infrastructure
and eco-systems. This to advance mo-
bile payment solutions, digitalizing trans-
action processes and bringing existing
applications into the cloud.
In 2021, we moved further into the ne-
obank and FinTech startup space. One
example was the development of the
digital front-end for Kompasbank, a
new Danish bank focusing on small and
medium enterprise. We also made Trifork
Labs investments in the challenger bank
Kashet, &Money (in cooperation with
three major Danish banks), and founded
the new startup ComplyTeq that focuses
on onboarding and compliance.
A new partnership was made with Tuum,
a banking as a service vendor, and we
have increased our focus on advising,
developing and testing new FinTech ap-
plications and service offerings with new
entrants and start-ups. This has sparked
interesting dialogues with potential new
customers all over Europe.
In 2021, Trifork had the opportunity to
partner with selected FinTech companies
to build new customer-facing products
and solutions. This included block-chain,
open banking and voice-to-text that
make life easier for the end-customer
and more cost-efficient for our FinTech
costumers.
With 15+ years of dedicated industry
experience, we won new customers
in Sweden, Switzerland and Denmark,
thereby increasing our FinTech service
offering and geographical footprint.
Some examples of our FinTech activities
include an AI solution for a leading Swiss
insurance company, enhancement and
update of infrastructure at VocaLink/
Mastercard in the UK and implementation
of a Google AI voice solution for a Danish
bank in collaboration with Google.
&money
Annual Report 2021
28
– a new business ecosystem
A need for more customer facing,
innovative solutions
In 2021 Trifork entered as partner into the
FinTech company &Money together with
the partner banks Spar Nord, Nykredit and
Arbejdernes Landsbank. The combination
of domain knowledge and customers of
the three major banks and the tech capa-
bilities of Trifork has already proven to be a
powerful cocktail.
With competing financial systems closing
in on banking offerings and the need for
banks to innovate and offer more digital
solutions, especially for business custom-
ers, a new business platform was defined
by &Money and Trifork.
As a result, the business platform bconomy
will be launched first half of 2022 and will
be frequently extended with new features.
More company value with less
administration and worries
The initial focus for bconomy is to provide
a business platform for small and me-
dium sized enterprises (SME). A platform
that can make it easier to conduct finan-
cial transactions, take business decisions
based on valid insights and get the busi-
ness and financial state of the company.
This is done through application of tech-
nology, data and a user-friendly solution
focusing on: “More company value, less
administration and worries”.
bconomy is a platform for banks and
other 3rd party FinTech companies. Banks
can provide the solution to their own cus-
tomers and other FinTech companies can
provide their offerings through bconomy
in the marketplace and get access
to all the bconomy customers. This
FinTech ecosystem will be a significant
part of the bconomy roadmap.
For SMEs, bconomy will support the
company owners, allowing them to focus
on running the business and serving
customers. The main difference between
bconomy and its competitors will be the
generation of insightful notifications,
which helps the decision maker to take the
optimal business decisions. All notifica-
tions will be based on the companys own
data and bconomy will not only be a plat-
form where you add apps, but also be the
place you need to be to run your business.
A marketplace of FinTech
capabilities and offerings
bconomy offers a marketplace where
smaller FinTech companies with very
specific niche capabilities can offer their
services to SMEs – similar to the App store
concept.
Some of the features that are included in
the first release of bconomy are:
Easy payment of supplier invoices via
email, mobile phone and OCR
scanning
Automatic book keeping of invoices in
ERP system
Supplier management and integration
with the Danish CVR register
Fraud detection of false invoices that
companies should not pay
Bank account overview
Financial accounting, budgeting and
management of liquidity
Target KPI and progress reporting
Fast time to market and
continuous releases is key
Less than one year ago, Trifork and our
&Money partners kickstarted the product
development in a lean process with a de-
sign thinking workshop. Now, within less
than 10 months, bconomy is launched
taking advantage of Trifork’s experi-
ence within building transaction-heavy
applications with fast user-adoption. The
development speed and short time to
market are important as the market for
integrated business platforms is highly
competitive.
The roadmap for bconomy includes
interfaces to more ERP systems and
also a PSD-2 bank interface. bconomy
will later be extended to support more
complex companies like corporate
groups. Additional features will be added
as bconomy is dedicated to form a user
community and listen to user input and
feedback.
Business Areas - FinTech
CASE STORY
CUSTOMER
INDUSTRY
BUSINESS AREA
Banking
FinTech
“bconomy could be a true
game changer in the
business. It was key to have a
leading tech partner in
Trifork, with their experience
and knowhow within Fintech
and ability to turn ideas into a
solution in a very short time.”
Torsten Terp
CEO &money
Digital Health
STRATEGIC PRIORITIES
Grow Digital Health revenue with particular
focus on interoperability and application of
new technologies
Expand Digital Health business in the DACH
region, starting with the launch of a new
Business Unit in Switzerland
Internationalize existing solutions for opti-
mized patient journeys and collaboration
enablement. Particular focus on Private
Hospitals & GPs
Establish new business areas for shared
care, hospitalized children and assisted
living
REVENUE (EURM)
16.0
14.6
2021
2020
Annual Report 2021
29
The Trifork Group - Business Areas
The Digital Health Market
Healthcare needs are growing across
societies due to the demographic de-
velopment, especially in the Western
economies, where our business focus is.
An ageing population with more chronic
diseases is driving up the demand for
healthcare services and medical prod-
ucts. The increase in demand collides
with a temporarily restricted supply of
qualified labour. This results in an accel-
erating demand for further digitalization
with tech-solutions to enhance efficiency
and streamline processes. In addition,
the Covid-19 pandemic highlighted the
need for fast response and efficiency due
to an increased number of patients at the
same time as workforce shortages due to
quarantine restrictions and illness.
The digital health market is increasing-
ly embracing digital transformation.
We are seeing a trend towards more
solutions being launched in the regu-
lated space, i.e., companies launching
CE-market Apps for patients or Software
as a Medical Device (SaMD) to assist
professionals in their decision making.
Furthermore, we see artificial intelligence
(AI) for medical purposes, telemedicine
(the remote handling of patients) and
Patient Reported Outcome (PRO), all
adding to the efficiency and safety in
healthcare.
Our Digital Health Business
At Trifork, we are committed to improving
the lives of patients and healthcare pro-
fessionals. We do this by building the soft-
ware solutions needed to enable digital
health ecosystems, national healthcare
IT infrastructures and technology-ena-
bled decision support systems. Our digital
health teams are well positioned with a
deep know-how in interoperability, inter-
national standardization and a range of
sector-specific insights in treatment and
medical areas.
In 2021, we advanced our focus on tele-
medicine and shared care solutions,
enabling doctors and patients to continue
holding online consultations through the
lockdown periods. We have initiated the
development and delivery of additional
telemedicine solutions, starting with COPD
(lung disease). With this platform, we are
shaping the potential to support other
disease areas in the future.
In 2021, we also developed the core
system of the Covid-19 passport for the
Danish Health Data Authority. This includ-
ed the handling of personal data, security,
vaccinations, test results, signing with QR
codes and NemID login. The system was
launched as the first Covid-19 passport in
Europe.
In Switzerland, Trifork developed and
launched a sign-up solution for phar-
macies, allowing patients to give their
consent to collect and store their medical
information in the EPD (Elektronisches
Patienten Dossier). This was the starting
point for a Swiss national infrastructure,
which over time is envisioned to ena-
ble the sharing of medical data across
healthcare institutions.
Trifork Labs invested in Visikon, a digital
health startup that empowers patients,
relatives, community workers and other
stakeholders to understand and actively
collaborate on patient treatment from
start to finish. Together with Visikon, Trifork
can support the entire healthcare journey
with easy-to-understand communica-
tion via animated videos, direct access
to relevant healthcare data and close
integration between different healthcare
systems. With our international footprint
and network, Trifork can internationalize
this product and bring scalability to pa-
tient journeys by distributing these across
markets.
As part of the European Consortium and
the 5-year research project – Gravitate
Health - we delivered the first prototype.
The aim of the project is to make infor-
mation about medicine more accessible
and understandable to patients across
the European countries and thereby
leading to better patient outcomes.
Annual Report 2021
30
Business Areas - Digital Health
From Paper to Digital
Transforming the Danish Prenatal Record
The paper-version prenatal record
in the golden envelope
Until now, pregnant women in Denmark
have been given a golden envelope at
their first prenatal consultation. The enve-
lope contained a paper version of a pre-
natal record used to ensure that data and
information was shared across sectors
and between all the health professionals
involved in the prenatal care and delivery.
This group of health professionals includ-
ed the GP, the midwife, the hospital and
the municipal healthcare. The pregnant
woman was responsible for bringing with
her the prenatal records, every time she
had a consultation with her GP, midwife
and hospital, through all stages of her
pregnancy to the moment of delivery.
Facilitating data sharing,
communication and involvement
Today, most referrals in the Danish
healthcare sector are sent electronical-
ly. Problems occur because the health
professionals often use their own electronic
records as well as the prenatal record in
the golden envelope. Consequently, they
have to fill in information twice, and some-
times information is lost in the process.
Pregnant women might also forget to bring
their envelope, or it eventually becomes
that damaged by wear it can be difficult to
decipher the information. In the future, both
the prenatal record and the medical re-
cord will be replaced by one digital solution
in three modules that facilitates the shar-
ing of data across sectors. This will simplify
and improve communication between the
pregnant woman and all relevant parties
throughout her entire pregnancy.
Three-module solution
The digital solution consists of three
modules:
National Services - The Shared
Pregnancy Portfolio
Web solution for healthcare profes-
sionals – The Pregnancy Portal
App for the pregnant women - My
Pregnancy
The core of the solution is the Shared
Pregnancy Portfolio, which ensures that
all parties involved in the course of the
pregnancy can access the data that was
previously entered manually in the paper
version of the prenatal record.
The healthcare professionals involved
can enter information into the Shared
Pregnancy Portfolio via the Pregnancy
Portal or access this directly from their
own clinical domain systems after a local
implementation.
The pregnant woman gets access to
her own data from the pregnancy folder
and information about the course of the
pregnancy via the My Pregnancy app
that gives a comprehensive overview of
all the information needed.
Cross-sectoral collaboration with
the citizen as the focal point
The purpose of this solution was to
develop an app for pregnant women, a
web solution for the healthcare pro-
fessionals and a backend solution for
data storage and integration, thereby
transforming the prenatal record from
paper to digital form. We find this type
of cross-sectoral user centric collabo-
ration very exciting, new and innovative.
The citizen is a very important part of
this type of digital health projects. They
get an individual overview of their own
course of pregnancy, simply because all
the parties involved, right from hospitals
and midwives to GPs, enter information
and data into the same system. The
easy access to personal and relevant
data enables citizen empowerment and
guarantees the pregnant woman a safe
course of pregnancy. The collaboration
with the Danish Health Data Authority is
characterized by very agile problem solv-
ing and an effective clarification process.
This has accelerated the development
and ultimately ensured that we can test
in clinics and with end-users in 2022 and
make life easier for pregnant women and
healthcare professionals in the future.
INDUSTRY
CUSTOMER
BUSINESS AREA
Healthcare
Danish Health
Data Authority
Digital Health
CASE STORY
“In collaboration with Danish Health Data Authority, Trifork
carried out a professional agile development process, where the
development team ensured that we came through safely and
successfully. The pregnancy portal is a great product, that we
look forward to being tested by the clinics in 2022.”
Ida Bachmann Anthony
IT project manager, Danish Health Data Authority
Smart Building
STRATEGIC PRIORITIES
Increase focus on Smart Factory and
Industry 4.0/4.U concepts to increase reve-
nue from existing customers
Expand in existing markets by scaling and
promoting existing product offerings
Develop new attractive and scalable con-
cepts through R&D in TSBOne and Trifork
Labs companies
Grow outside the existing geographies with
a first priority in Switzerland
REVENUE (EURM)
4.2
2.9
2021
2020
Annual Report 2021
31
The Trifork Group - Business Areas
The Smart Building Market
The Smart Building market is currently
undergoing a radical change. The mar-
kets are driven by a desire to reduce the
environmental footprint, while increasing
efficiency, reducing costs, and improv-
ing customer experiences. The European
markets are expected to show high de-
mand for Smart Building solutions in the
years to come due to the ambitious CO2
reduction targets of 55% by 2030, set forth
in the European Green Deal agreement.
The Smart Building market comprises of
investments in intelligent solutions with IoT
technology as the backbone and solutions
that utilize the building data to optimize
energy, maintenance costs and work-
flows in the buildings. The main areas of
IT spending focus on installation services,
application areas like smart grid, freight
management, omni-channel operations
and smart building/smart home solutions.
The use of data for optimizing facility
management, service and consumption,
is increasingly interesting as customers
seek IoT providers that can orchestrate
integration with existing systems. In addi-
tion to integration, service providers need
to have capabilities in data analysis, data
management/use and security.
The multi-vendor ecosystems in many
buildings are often difficult to master and
rely solely on in-house IT resources. This
often leads to limitations, given the com-
plexity and need for specialized technical
knowledge.
Our Smart Building Business
Trifork Smart Building remains focused on
fulfilling the need for solutions to support
smart buildings and smart factories,
thereby actively contributing to CO2
reduction and, ultimately, CO2-neutral
ambitions. We see a growing demand for
frictionless user interaction and digi-
tal connection with the physical world.
In Denmark, we launched an initiative
named Industry 4.U (industry for users)
to optimize user experiences in industrial
production and make the information
easily available for users in an intuitive
way. This leads to less training time in the
use of machinery and faster workflows.
With the acquisition of Vilea in 2021, we
grew our footprint for Smart Building
in the Swiss market. Vilea works with a
range of solutions that are in the cross-
field between Smart Building and Smart
Enterprise. One example is delivering an
IoT solution to a top international lift sup-
plier, while another example is the imple-
mentation of a building inspection app for
a Cantonal Building Insurance company.
Within the Smart Building business area,
Trifork currently runs two high profile R&D
efforts in TSBOne and TSBThree. These are
two Trifork-designed office buildings that
will serve as research and development
labs for our teams. Here, we have a live
environment where ideas and solution
concepts can be tested in a real-life envi-
ronment. The buildings will, to the greatest
extent possible, be constructed of wood
to reduce their carbon footprint. They will
be fitted with solar panels on the roof. Also,
when design and technology can com-
plement one another, a range of technical
installations will be added to minimize
the building’s energy consumption at the
same time as ensuring an optimal indoor
climate and work environment.
Our vision with the Smart Buildings is that
our customers can benefit from these
improvements in R&D and even benefit
from Trifork’s data-driven innovation. One
example is our implementation of se-
curely-bridged digital twins in the cloud
in combination with edge computing and
artificial intelligence. Trifork believes that
open application programming interfac-
es (APIs) that facilitate communications
across systems are advantageous.
In 2021, Trifork Lab also invested in the
cleantech company, Dryp, which uses
IoT technology and big data to enable
waterworks and wastewater companies
to optimize operations and planning, in-
cluding the prevention of sewer overflow
and congestion of drainage systems.
BUSINESS AREA
Smart Enterprise
Annual Report 2021
32
Business Areas - Smart Building
Smart Buildings: The Next Frontier
From Ambition to Reality
The dream of smarter buildings has
roamed the world for decades. We want
buildings that respond to our needs and
can indeed anticipate them. We want build-
ings that lower our energy consumption to
sustainable levels and, needless to say, we
want to build them as cheap as possible.
In the case of office buildings, we also want
its inhabitants to perform at the top of
their ability. Offering an environment that
enables workers to perform at top level at all
times, however, is not an easy task.
At a time when highly skilled workers are
an increasingly precious resource, it’s even
more important to offer an attractive work-
place to attract and retain talent.
We have decided to face the smart building
challenge head-on. With 58 business units
working across 28 different buildings, we
have accrued a wealth of know-how allow-
ing us to untie the Gordian knots of smart
building. We decided to do it the Trifork way
with less talk and more action, and this
was how we started the first Trifork Smart
Building.
Raising the Bar for Sustainable
Office Buildings
Our overarching goal is to raise the bar
for sustainable office buildings. A Smart
Building needs to be both technologically,
financially, and environmentally smart. If
this is not the case, the building itself might
be “smart”, but investing in it won’t be.
Much can be improved in the construc-
tion phase itself. We aim to reduce CO2
emissions by up to 85 percent compared to
a traditional building. We can achieve this
by, among other things, using timber for all
load-bearing constructions.
A common challenge is the mismatch
between the need to reduce resource con-
sumption and the need to create a pleasant
work environment that caters to individual
needs. The most resource-efficient indoor
climate is rarely the most pleasant one.
An Evolving List of Features
Trifork Smart Buildings are built on three
pillars:
1. Optimized work environment for highly
autonomous knowledge-based
companies
2. Sustainable building materials and
construction techniques
3. Reduced energy consumption
For our teams to be consistently creative
and efficient, we want to provide them with
the optimal work environment. This trans-
lates into an AI–controlled indoor climate
that balances the needs of each team:
Heating and cooling of the interior is
handled by radiators powered by a
sophisticated system that uses the
decentralized ventilation system in
each room
Surplus heat is extracted before the air
is led outside
Air quality and temperature is closely
monitored for each room, triggering
automatic ventilation
Sensors register the number of people
present and optimize indoor climate
accordingly
Furthermore, sensors embedded in each
workstation will automatically power off
equipment if no one is present.
Employees have the power to monitor
and control their workspace by using the
dedicated app integrated with our Smart
Building software. Visual feedback is
shown on monitors throughout the build-
ing, encouraging employees to be mind-
ful of energy consumption in real-time.
A lot of thought has gone into the con-
struction details. The roof is fitted with so-
lar panels to harvest energy, and heat is
drawn from the ground. Huge water tanks
not only play a key part in the building’s
heating and cooling but are also con-
nected to the city’s water utility company,
enabling unprecedented control and
resilience to climate events.
The above features are just examples
from an evolving list. We hope our smart
buildings become landmarks that inspire
other organizations to keep pushing for a
better future.
CUSTOMER
INDUSTRY
Trifork
Construction
CASE STORY
“Creating the smart buildings
of the future seems a natural
course for Trifork to take, given
our passion for sustainability,
our tech savvy people, and our
desire to change the world with
software”
Jørn Larsen
CEO, Trifork
Smart Enterprise
STRATEGIC PRIORITIES
Growth through acquisitions, primarily in
the DACH region, the Netherlands and the
UK
Growth based on our core competencies
through the creation of new business units
Increase the revenue share of both 'Inspire'
and 'Run' business by developing our offer-
ing within DesignLabs and Operations, and
offering these in new geographies
Develop relevant products for existing cus-
tomers by leveraging partnerships
Strive to be a “great place to work” to
be able to attract talents to support our
organic growth
REVENUE (EURM)
76.6
49.2
2021
2020
Annual Report 2021
33
The Trifork Group - Business Areas
The Smart Enterprise
Market
The Smart Enterprise market covers
private and public organizations’ IT and
services spending on enterprise soft-
ware, which also includes mobility and AI
solutions.
Typically, organizations invest in enter-
prise software with the aim of optimizing,
streamlining and automating business
processes. We see a growing demand for
integration of ERP and isolated systems in
the market. This primarily with the aim to
transform these into simple user-friendly
solutions by removing the underlying
complexity and system fragmentation for
the users.
Growth in the Smart Enterprise market is
driven by a continuous need for digitali-
zation and a growing number of options
to implement new use cases for enter-
prise systems, as data is moved to the
cloud and new technologies are intro-
duced. Particularly, the demand for ex-
ternal IT services has increased as most
in-house IT departments neither have the
capacity for nor the experience with the
new technologies.
As part of the COVID-19 pandemic, we are
seeing an increase in remote working,
triggering the need for modern and
secure architectures that enable users
to seamlessly access their companies’
applications from home.
Our Smart Enterprise
Business
Our Smart Enterprise customers are typ-
ically the leaders in their industries and/
or large public sector organizations in a
broad spectrum of sectors. This includes
discrete manufacturing, travel and trans-
port, logistics and warehousing as well as
retail and FMCG.
In 2021, we added Vilea to the Trifork
Group. Vilea is a Swiss and Austrian-
based IT-firm that specializes in design-
ing and delivering tailor-made mobile
enterprise applications for large Swiss
enterprise customers. With Vilea’s excel-
lent team of developers, we were able to
strengthen our local position and expand
our scope of activity in Switzerland and
central Europe with the new offices in
Zurich and Vienna. Another noteworthy
activity is the further expansion of our
Business Unit in Barcelona, where we
were able to further grow the team with
competent colleagues, benefiting our
network of units across Europe.
In 2021, we helped an international
branded consumer goods company by
developing and integrating a new modern
drop shipment solution that optimized the
deployment of goods, reduced delivery
times and helped reduce logistics costs.
We also developed an in-flight catering
app for a leading airline group, enabling
flight personnel to offer better service to
airline passengers by using an iPad.
In the public sector, we completed a large
compensation management project for
the Danish Parliament and initiated a
multi-year project for the Danish Justice
Ministry. This is an area where we see
interesting opportunities in the future.
In addition, we helped Banedanmark
develop a suite of digital tools for their
field workers and administrative staff,
further replacing paper-based process-
es. Banedanmark is responsible for the
maintenance and traffic control of the
Danish railway network.
In 2021, we have also seen success-
ful engagements with our Trifork Labs
company Arkyn Studios. They focus on
standard enterprise apps to amend SAP
systems (SAP-Apple Fast Start program).
The combination of our competencies
and standard products enabled us to
win tenders based on a highly attractive
value proposition.
CUSTOMER
INDUSTRY
BUSINESS AREA
Vestas
Renewable Energy
Smart Enterprise
Annual Report 2021
34
Business Areas - Smart Enterprise
Warehouse Hero
Trusted Partnership
Vestas Wind Turbines A/S is a global
leader in the field of renewable energy.
They design, manufacture, install, and
service wind turbines across the globe
with a total of 23 plants covering 83
countries globally.
For more than a decade, Trifork Smart
Enterprise has acted as a trusted advisor
and innovation infuser at Vestas, with
Warehouse Hero being the most recent
example of our strategic collaboration.
Retiring Ineffective Solution
For years, Vestas was using a Movilizer
solution for inventory management,
but the lack of flexibility and the tricky
user interface of the app led warehouse
mangers to opt out of using their mobile
devices in favor of their desktop solution
– thereby seeing the potential produc-
tivity gain of a mobile solution go down
the drain.
Vestas decided to rid themselves of the
rather expensive Movilizer framework for
custom app development that enabled
warehouse transactions. Instead, they
chose to develop a native app that han-
dles the same tasks – only better, faster
and without the steep licensing cost.
Warehouse Transactions
Mobilized
As per best practice in Trifork, Vestas and
Trifork initiated the product development
by means of a Design Thinking process
in which the current challenges were
approached from every angle to create
a viable IT solution that adds value to
the business while making life easier for
inventory managers.
As a result of an agile and iterative scop-
ing phase, Trifork and Vestas developed
Warehouse Hero, a scalable consumer
grade inventory management solution
that meets the actual needs of users
while optimizing the flow of inventory
management.
A new native iOS app integrates func-
tionality from several different web apps:
Goods receipt, material handling, stock
count, outbound, and is further enhanced
with functionality that normally only can
be achieved in the MIGO transaction.
With Warehouse Hero, all functionality
related to warehouse management is
gathered in one user-centric and low
maintenance mobile application that is
easily accessed with a standard Vestas
user ID. Bluetooth functionality allows for
handsfree scan and feedback actions,
and the solution has full offline capability
in areas without WiFi.
Easy Intuitive User Interface
The Warehouse Hero app has been re-
leased to +1,000 key warehouse employ-
ees in Vestas. Due to its user-centric core,
the app required no training to use – thus
ensuring a frictionless roll-out.
The app was well-received by the entire
warehouse organization. Not only is
Vestas saving on licensing costs, the
optimization of workflows and the stable
performance of the app have helped
Vestas save around 180,000 hours
annually.
Within the next couple of years, the app
will be rolled out to +5,000 users, yielding
even greater results over time.
Boost the SAP Experience
Warehouse Hero is a central part of
Vestas’ modern high-performance
mobile iOS platform that is based on SAP
IM/WM – exposing data and functions to
SAP Cloud Platform. By utilizing SAP Cloud
Mobile Services, we are able to provide
offline data to mobile devices in areas
without WiFi. SAP Cloud Platform mobile
service (SCPms) allows for easy on-
boarding, push notifications and offline
capabilities.
+180K
hours saved/year
+1000
users
0
hours of training
CASE STORY
CUSTOMER
INDUSTRY
Mosaic World
Real Estate
BUSINESS AREA
Smart Enterprise
Annual Report 2021
35
Business Areas - Smart Enterprise
How Mosaic World accelerates sustainable
ecosystems for improved community living
Sustainable urban ecosystems
Mosaic World helps property owners and
investors manage, secure, and devel-
op their real estate portfolios. They are
committed to providing living spaces
for over a quarter of a century, across
nine countries in Europe. Mosaic World
connects a wide variety of people with
an extensive range of affordable living
spaces: from raw concrete studios to
fully-furnished flats and bustling student
campuses. These living spaces contain
tailormade facilities and digital services
that help nurture, grow, and diversify the
communities that use them.
Trifork helps Mosaic World achieve its
goal of strengthening human connec-
tions. By delivering outstanding hous-
ing experiences, Mosaic World aims to
exceed community expectations. This
ranges from frictionless access to every-
day necessities such as shared laundry
and pick-up facilities to eco-friendly
transportation services connecting
universities, city centers, and mobility
hubs. But that is just the start. Amenities
like private cinemas and indoor sporting
facilities are just a few examples of how
Mosaic World creates exceptional experi-
ences for its communities.
Cutting-edge technologies enable
a frictionless customer journey
Trifork made the entire customer and
employee journeys smart: from searching
to living, and from living to leaving with
strategic processes implemented at the
speed of light. Through smart automated
publishing, new property listings are pro-
moted on relevant channels when rooms
or houses become vacant.
Applicants need to comply with intake
criteria such as a minimum monthly in-
come and proof of university enrollment.
If the applicant passes all requirements,
a smart contract is generated that
matches the building, regional and coun-
try regulations. In addition, the system
makes those contracts traceable and
manageable for Mosaic and its stake-
holders. By integrating over 200 con-
tract types within Mosaic World’s digital
platform, the company safeguards the
rights of tenants while remaining flexible
for property owners and making risks
manageable for investors.
Property inspections and quality manage-
ment processes ensure that new tenants
can move in seamlessly and efficiently. The
user centric self-service app is provided to
make occupancy equally enjoyable.
At any point in the customer journey, ten-
ants can take ownership of their
surroundings to make their house their
home. In addition, it delivers quick rota-
tion, stability, and continuity for business
revenue, safeguarding income streams
during the tenant’s occupancy.
The place where happy living and
good investments meet
Trifork helps Mosaic World reshape
urban living by creating more vibrant
communities that improve the lives of
both tenants and investors. By deliver-
ing smart processes, safeguarding data
quality, and meeting the requirements
of national and regional policy makers,
the platform benefits all stakeholders.
Because we know, happy living makes
good investments. Because we know,
happy living makes good investments.
31%
reduction of tenant
rotation times safeguard
revenue stream continuity
23%
increase of overall occupancy
through smart property
management processes
9
countries served with a
centralised unified
contract streaming process
CASE STORY
“Trifork is instrumental in
achieving our strategic
goals towards operational
excellence. From conceptu-
alising the needs of Mosaic
World and our customers,
till the delivery of a state-
of-the-art digital platform,
Trifork has shown with great
empathy to understand our
needs, those of our tenants
and investors.”
Peter Habraken
Chief Financial Officer, Mosaic World
CUSTOMER
INDUSTRY
Banedanmark
Rail
BUSINESS AREA
Smart Enterprise
Annual Report 2021
36
Business Areas - Smart Enterprise
Banedanmark: Turning Mobility Smart
Keeping the Danish Railways Safe
Banedanmark, the Danish company
in charge of maintenance and traffic
control of the entire state-owned railway
network, is committed to keeping rail-
ways in Denmark safe.
Every day, 650 field workers clock in,
ready to ensure that more than 750,000
assets are in impeccable condition
- using SAP as the backbone of their
organization.
Unlocking the Full Potential
Banedanmark found their mobile field-
work solution to have shortcomings in
several areas: Sign-on issues, unstable
performance and the lack of flexibility
created a continuous stream of technical
obstacles in the everyday life of their field
workers.
To unlock the full potential of the field
service workforce, Banedanmark exe-
cuted a request-for-proposal process to
select and procure a replacement of their
existing solution.
After a competitive bidding process,
Trifork was accepted as the supplier of
the new solution.
The FastFieldwork & FastTime
Solutions
Banedanmark’s IT-mission mandates the
delivery of value-creating and reliable
IT solutions. To this end, Banedanmark
has prudently recognized the immedi-
ate value of simplicity and user expe-
rience in employee-facing IT solutions.
Banedanmark placed significant empha-
sis on these areas.
The solution delivered by Trifork to
Banedanmark is a set of two contempo-
rary and user-friendly mobile solutions
designed for their field workers.
Based on SAP and Apple technology, they
represent a perfect symbiosis between
business strengths and humanized
technology:
Next-generation app performance and
usability
Seamless integration with SAP backend
Intelligent use of mobile hardware
capabilities
Superior security and privacy
Instant sign-in and data access
With the new Banedanmark mobile apps,
field workers have seamless access to
work orders and notifications from the
SAP backend, enabling them to con-
duct their daily work without technical
interruptions.
Additionally, with the delivery of the
FastTime app, getting accurate and
timely time registrations and correct time
allocation is now easier and more intui-
tive than ever.
A special focus in the business require-
ments was also placed on a seamless,
smooth and user-friendly integration with
Banedanmark’s Graphical Information
System to better assist maintenance
technicians in the field. The delivered
solution provides efficient, accurate and
aesthetically pleasing built-in maps and
visual representations of technical struc-
tures and maintenance objects.
Outstanding User Experience
The Banedanmark apps have an intuitive
and user-friendly interface compara-
ble to that of consumer-grade software.
Verifiable built-in insights facilities have
proven to have a very high adoption rate
for the solution.
The high adoption rate, security com-
pliance, improved data quality and the
timely execution of tasks and work orders
all make a compelling case for creating
an outstanding user experience with such
enterprise apps.
Tech
The Banedanmark solution is based on
the standard products, FastFieldwork and
FastTime, both of which are from a suite
of products created by the Trifork Labs
company Arkyn and tailored by Trifork to
fit Banedanmark's requirements.
Running on a modern, event-driven, re-
al-time capable, microservice-based ar-
chitecture provisioned with SAP Business
Technology Platform, the solution is
highly secure, scalable and flexible.
Being engineered specifically as a
state-of-the-art Best Practice Enterprise
Mobility solution, the solution and its un-
derlying architecture are fully prepared
for transitioning to S/4HANA. This paves
the way for Banedanmark’s digital trans-
formation journey.
+750K
managed assets
+60K
annual work orders
650
users
CASE STORY
Cyber Protection
STRATEGIC PRIORITIES
Focus on large to midcap companies in
Trifork’s core countries
Expand the consulting business with lead-
ing vendors
Analytic/big data solutions within securi-
ty and other sectors with a strong Trifork
footprint
Growth through acquisitions to add com-
petencies and strengthen market position
REVENUE (EURM)
10.8
8.1
2021
2020
Annual Report 2021
37
The Trifork Group - Business Areas
The Cyber Protection
Market
The cyber security market consists of
organizations’ spending on software,
hardware and service solutions that
prevent or mitigate malicious cyber
threats from criminal organizations and
other bad actors. The importance and
awareness of cyber security continue to
increase, driven by the fact that we are
becoming more dependent on tech-
nology and its integration, and on more
frequent news about attacks and threat
levels that compromise its proper func-
tioning. Vulnerabilities are being exploit-
ed, resulting in an increasing number of
organizations being infected and having
a significant impact on operation and
reputation. We see an increased focus
and move towards improving protection
and procuring external professional sup-
port to tackle these challenges.
For organizations, cyber security is no
longer just about protecting the in-
tegrity of systems infrastructure and
applications, but also about protecting
the organization from data loss across
complex architectures, in different clouds
and even on premises. The rising cost of
security breaches, combined with the
increasing sophistication of attacks and
continuous expansion of threat vectors,
have resulted in a skills and resource
shortage in many organizations, driving
the cyber security market towards exter-
nal service providers. This all represents
an attractive market for Trifork Security
where we see considerable growth po-
tential for the future.
Our Cyber Protection
Business
Trifork's cyber protection business has
broad expertise and offers an end-to-
end cyber capability before, during and
after an attack. We have major projects
in the areas of critical infrastructure,
commerce, finance, enterprise clients,
publishing, education, insurance, defense
and other areas.
We seek to ensure that customer data
is accessible, confidential, reliable and
secured, while minimizing the risk of se-
curity breaches. We work for a mix of pri-
vate and public large and medium-sized
organizations, most of which are mature
and have realized the need for cyber
protection. We offer all the services and
products customers need to identify, pro-
tect, detect, respond and recover from an
attack. In addition, we offer cyber security
assessments tailored to company size to
help customers move from current state
to the desired state of cyber protection.
We also offer Log-as-a-Service (LaaS) to
customers who outsource log manage-
ment and observation responsibilities.
We offer SIEM-as-a-Service to customers
who outsource the responsibility of build-
ing and operating a security incident
platform, and finally SOC or Managed
Detection & Response (MDR) for custom-
ers who do not have the capability and
skills to investigate incidents and respond
to incidents in their own environment.
In addition, we conduct analyses of
security and operational data in the
customer environment to visualize and
provide intelligence on significant service
impacts to the customer’s business. In
offering these services, Trifork Security
is also the reseller of hardware and 3rd
party licenses to provide customers with
a comprehensive toolbox for managing
all these challenges.
In 2021, Trifork Security was awarded IBM
Security Partner of the year, underlining
the quality of our services and apprecia-
tion of Trifork’s contribution to a success-
ful partnership. To internationalize these
capabilities, we implemented Trifork’s
new Operation Centre in Switzerland to
lay the foundation for further growth of
our cyber protection business.
Within the security area, Trifork Labs has
invested in Promon, a Norwegian compa-
ny working across a wide range of indus-
tries with various global Tier 1 customers.
CUSTOMER
INDUSTRY
...
Any
BUSINESS AREA
Cyber Protection
Annual Report 2021
38
Business Areas - Cyber Protection
Is your organization empowered to
navigate the evolved cyber reality?
The cyber threat landscape has
evolved and so has the risk
Looking a few years back, a number of
areas have been evolving in cyberspace.
We have moved from a core financially
motivated agenda to an equally political
agenda. Moreover, as human beings
we have been digitizing our existence to
an ever-increasing extent that involves
personal property as well as company
and intellectual property. This is a clear
call for action to rethink how we manage
security, both at an industry specific level
as well as a customer specific level.
Internal and external threats are
becoming more imminent
It doesn’t take much threat research
to identify that the ransomware risk is
as high as ever. However, being able to
make informed decisions based on your
specific operating environment and your
business-critical assets and the threat
landscape within your organization is a
much more challenging task.
As an example, we have gathered insight
into the darknet and intel from trusted
partners, indicating that known malicious
actors wish to exploit and pivot off of
insider threats and disgruntled employ-
ees of western European and Nordic tech
companies.
The malicious threat actors are willing to
offer up to 100,000 Euros for adding a few
lines of code into the core systems of the
organizations they work for. Such poten-
tially harmful code could pose a threat
to the financial integrity and existence of
the company.
Shifting gear across people, pro-
cesses and technology reduces
the cyber risk
Trifork believe there is a need for includ-
ing both tech, process and human inter-
action when planning Cyber Protection.
It’s crucial for each company to identify
where the risks are and how each risk can
be handled and mitigated in the best
way. Each organization needs to clari-
fy exactly where it has full control and
where there are loopholes or potential
unidentified risks since the consequenses
of not being in control very likely could be
disastrous if they were attacked.
Business-critical cyber
transformation
With the current situation in mind,
we have developed The Cyber
Transformation Model. This model helps
organizations prepare for the risks
described previously. The model helps
organizations make informed decisions
and regain control across the cyber
agenda.
4EURm
Avg. cost per incident when
hit by malicious insider
CASE STORY
“We empower you to take
control of your cyber posture.
From strategic, tactical and
operational aspects. We will
make sure you are in con-
trol.”
Anders Fleinert Larsen
Business unit leader, Cyber Protection
+20K
Security vulnerabilities identified in 2021
Cloud Operations
STRATEGIC PRIORITIES
Develop new services & products to offer
solutions, that ensure reliable and secure
operations in the private, public and hybrid
cloud
Expand internationally and scale our ser-
vices to other Trifork markets
Continue the investments in future assets
like datacenters, infrastructure, products
and services
Drive automation and ease of doing
business with us and provide best in class
DEVOPS
Be ”best place to work” to enable recruiting
and retaining the best employees
REVENUE (EURM)
24.7
21.7
2021
2020
Annual Report 2021
39
The Trifork Group - Business Areas
The Cloud Operations
Market
The Cloud Operations market is increasing-
ly important for Trifork and its customers.
Cloud continues to increase its importance
as a ‘deployment model’ for both applica-
tions and infrastructure across our markets.
This gives developers greater flexibility and
efficiency in DEVOPS and better accessibility
to users when using their organizations’ IT
infrastructure.
The Cloud Operations market is heavily
influenced by the three main ‘Hyperscalers’
that set the standard for many of the servic-
es and price levels in the market. However,
we begin to see the effects of EU privacy
regulation and companies’ increasing at-
tentiveness to privacy and control over their
own applications and data. We expect this
will cause the private cloud model to grow
additionally in the market. At the same time,
the requirements for the technical capabili-
ties of IT service providers and the products
they deliver have increased. To cope with
the increasing number of business-criti-
cal applications and changing regulatory
landscape, the demand for solutions that
are secure, flexible and capable of being
migrated from local storage to private or
public cloud and vice versa is increasing.
Development of new cloud applications
exceeds the capabilities of most in-house
IT departments and with the introduction
of multiple cloud environments, there is an
increased need for external IT services.
Our Cloud Operations
Business
Our ambition in Cloud Operations re-
mains to improve the everyday lives of
developers in our customers’ organiza-
tions by advising, educating, designing,
implementing, and running cloud-
based solutions that suit each individual
organization.
Our product offering spans from data
storage on-premises to multi- and hybrid
cloud solutions as well as public cloud
solutions, where we work with all the ma-
jor global public cloud platforms: Amazon
(AWS), Microsoft (Azure) and Google
(Google Cloud Platform).
At Trifork, we most often develop solu-
tions that are agnostic between cloud
environments, ensuring a high degree of
flexibility for our customers. Our services
range from advising and designing infra-
structure solutions to implementing and
maintaining complete cloud-based solu-
tions. Recently, we have introduced new
products and services which enable us to
add an additional layer of observability
and other services that make DEVOPS
faster, easier and based on standards
that allow us to offer our clients better
operation services in both the private
and public cloud.
In 2021, based on our strong presence in
the Nordics, we took an important step
forward to expand our Cloud Operations
globally, in particular through the found-
ing of Trifork Operations AG in Switzerland
and the establishment of a Tier 4
datacenter.
In 2021, we observed a tendency towards
larger mandates caused by increased
customer size and more comprehen-
sive solutions offered. We transferred all
operations from SOS International from
their own data centers and IT department
to our Netic datacenter and introduced
an additional security layer from Trifork
Security. The scope of work has further
evolved after the transfer and currently
engages multiple Trifork Business units
in cloud operations and cyber security.
In the same year, a leading home design
and furniture retailer from Denmark
renewed its five-year operations contract
on an even broader scope. In addition,
Trifork signed an operations contract with
Vestas, the global leader in wind turbines
for clean energy solutions.
Trifork also invested in a new datacenter
in Denmark to meet the growing demand
from new customers. We plan to build
further capacities over the next few years
in order become an even more relevant
partner to our customers and to accel-
erate the conversion from a Build to Run
based business.
CUSTOMER
INDUSTRY
BUSINESS AREA
Vestas
Renewable Energy
Cloud Operations
Annual Report 2021
40
Business Areas - Smart Enterprise
Application Monitoring Platform
resulted in clear insights
A diverse application landscape
Vestas Wind Systems is a Danish man-
ufacturer, retailer, installer, and servicer
of wind turbines. Founded in 1945, the
company operates manufacturing plants
in many countries, including Denmark,
Germany, India, China, and the United
States, and employs more than 25,000
people globally.
Vestas’ business units have autonomous
control over the development and use
of mission critical applications – many
of which interface with the corporation’s
SAP-stack. Because the application land-
scape is quite diverse, the monitoring
and day-to-day operations of these ap-
plications have not been clearly defined,
resulting in a lack of insights into the per-
formance of each individual application,
and a lack of clear responsibilities in case
of operational incidents.
From operating a single
application to a uniform
application operations model
At first, Vestas described the need of
being able to operate and monitor one
or two applications. Right from the initial
dialogue about a solution, the need for a
single monitoring platform emerged, one
that could collect and visualize metrics
from any application, regardless of the
business unit, the application it belongs
to, and whether the application was run-
ning out of public or a private cloud.
Netic was as such able to use our exper-
tise in operating applications in multi-
and hybrid-cloud environments to impart
upon the customer the importance of
a uniform way of monitoring custom-
er-built applications.
How to monitor an application
from a user perspective
There are frameworks in existence that
describe how to operate and monitor
cloud applications from a best-prac-
tice standpoint. Depending on which
public cloud vendor you use, these
frameworks are either called Site
Reliability Engineering or Well Architected
Framework.
Together, Netic and Vestas decided to
use a slightly different approach by tak-
ing the best of Microsoft’s SRE-principles
and looking at the application from a
user experience perspective. This means
that the metrics that are collected and
monitored are the metrics that directly
influence how the user experiences the
performance of the applications.
By employing this method, we were able
to focus on letting the application mon-
itor its own dependencies. This enables
the product owners to detect the errors
users are experiencing.
A uniform application
governance model
How does one ensure that applications
are treated in the same way from an
operations and monitoring standpoint?
This solution has partially succeeded in
answering the question by giving Vestas
a uniform way of monitoring applications,
regardless of the operating environment.
By requiring that the application meets
certain standards and by passing certain
tests before onboarding it in the operat-
ing platform, Vestas and Netic together
have ensured clear traceability in terms
of what part of an application failed in
case of an incident.
As a result of this, Vestas is now able to
resolve incidents faster which, in turn,
is a big win for both business units and
product owners.
CASE STORY
“We are used to working with large international cor-
porations for operating out IT-solutions. We are happy
with Netic, to have found a partner who understands our
needs, and are able to translate those need into technical
solutions that provide a real benefit to us.”
Bo Linddahl Rasmussen
Head of App and API Platforms, Vestas
Annual Report 2021
41
The Trifork Group
Trifork Labs & Investments
The objective of Trifork Labs is to lead the
venture-financed research and develop-
ment (R&D) activities of the Trifork Group.
For more than 20 years, Trifork has been
active in founding and investing in tech
start-ups that develop innovative software
solutions. In the process of working with
start-up companies, Trifork gains valuable
know-how from their technological devel-
opment, ensuring that it becomes familiar
with emerging disruptive technologies at an
early stage.
Trifork Labs investments are determined
based on three well-defined investment
criteria: first, the target must be a software
product company that invents new tech-
nology. Second, the investment should build
technology to support the Inspire, Build,
or Run part of the go-to-market model in
the Trifork segment. Finally, investments
are evaluated based on their potential to
become a strategic partner to Trifork and
potential synergies that can be expected
from the investment.
In 2017, Trifork co-founded the company, AxonIQ, with
Jeroen Speekenbrink (CEO) and Allard Bujize (CTO).
Jeroen was successful in the role of director at Trifork
Amsterdam, while Allard is the creator of the Axon
Framework, so it was a perfect foundation to launch
this new company. AxonIQ offers a unique end-
to-end development and infrastructure platform
for smoothly evolving event-driven microservices
focused on CQRS and Event Sourcing.
As of end of 2021, the Axon Framework has more than
10 million unique downloads, adding around 350.000
every month and is continuously growing.
Organizations like Standard Chartered Bank, Lidl,
Toyota, Ford, IBM and Tech Mahindra as well as the
Dutch, Belgian, US and Norwegian governments trust
AxonIQ and use their products.
www.axoniq.io
AxonIQ B.V. (21.5%)
CEO Jeroen Speekenbrink
With an ownership of 50.4%, Trifork in 2016 co-founded
the company Dawn Health as a consolidated compa-
ny with the focus to create solutions to MedTech and
Pharma companies. The ambition was to save lives by
bringing research, care and technology together.
In the last five years the company has worked closely
together with other Trifork Digital Health business
units and has managed to grow significantly.
Dawn Health is frontrunner in providing software as
a medical device (SaMD) and now within the next
year has the opportunity to become a certified legal
manufacturer.
In late 2021 new investors with considerable Pharma
expertise joined as partners and provided Dawn
Health with new funding of DKKm 130 to expand the
global footprint and accelerate revenue growth.
Dawn Health (32.6%)
CEO Daniel Gewecke Daugaard
www.dawnhealth.com
Trifork co-founded ExSeed Health in 2017 with
Morten G. Ulsted as CEO & co-founder, who has
a background from Novo Nordisk’s Leadership
Development program, and Emil Andersen as CSO
& co-founder, who is a PhD researcher at the Center
for Basic Metabolic Research, specializing in repro-
duction and epigenetics. ExSeed is a platform for
men to accurately test and actively improve their
sperm quality.
It has developed a handy tool with a sophisticated
algorithm and lens technology that makes testing of
sperm quality possible from any smart phone. In the
end of 2019, the product got CE-certified as Software
as a Medical Device. This was a major milestone
achieved since this certification was needed before
the product could be marketed and sold. Sales in
2021 started throughout all of Europe as direct sales
and sale through partners. In the beginning of 2022
a new financing round was completed, providing
funds to accelerate sales and optimize production.
ExSeed Health Ltd. (21.8%)
CEO Morten G. Ulsted
Built on the foundation of continuous product innova-
tion, Promon’s platform, SHIELDTM, offers unparalleled
application protection and shielding technology by
extending security beyond the downloaded applica-
tion and proactively detecting and blocking potential
security threats at rest and at runtime, ultimately safe-
guarding applications used on +300 million devices
from malware attacks and application tampering.
Since 2006, Promon has been a pioneer within the
application shielding software eco-system and has
acquired +250 customers and +25 strategic partners
globally, with offices in Norway, Germany, US and India.
Promon’s software is validated by a broad portfolio of
blue-chip customers across a multitude of industry
verticals. The company’s growth journey is expected to
continue, as the demand for application security solu-
tions is expected to accelerate significantly in response
to customers safeguarding against ever increasing
malware attacks on application level.
Promon AS (5.0%)
CEO Gustaf Sahlman
Trifork Labs & Investments
www.exseedhealth.com
www.promon.no
Annual Report 2021
42
The Trifork Group - Trifork Labs & Investments
Trifork’s main focus in these investments is to
support R&D that can be used in the Trifork
segment and to grow the value of the start-
up companies by creating and accelerating
their recurring revenue.
Trifork Labs has historically generated posi-
tive financial results. Since 2016, Trifork Labs
has generated positive gain on financial
assets of EURm 81, as measured by the
aggregate realized and unrealized gains
less Trifork’s cost in respect to its active
investments. Realized gains in 2021 grew by
EURm 58.6 and contributed in this way with a
significant part of the positive cash flow for
the Trifork Group.
Programmable Infrastructure Solutions (19.5%)
Cloud Migration and solutions
C4Media (9.8%)
Online communication and conferences
EDIA (17.4%)
AI for education material and language processing
ComplyTeq (48.3%)
Fintech - KYC and onboarding
Verica (2.6%)
Continuous verification of software systems
&Money (25.0%)
Fintech solutions
XCI (20.0%)
Cyber protection
Implantica Mediswiss (0.1%)
Medical implants
Atomist (0.2%)
Tools for program developing process
Youandx.com (3.8%)
Speaker screening and validation
Feats (5.0%)
1
Employee credits and satisfaction
TSBOne (39.1%) and TSBThree (25.0%)
Smart Building innovation
Visikon (15.0%)
Visualization of medical operations
Firmnav (14.9%)
ML powered search engine
Upcycling Forum (21.7%)
Sustainability by reuse and upcycling of building materials
Dryp (25.0%)
Water utilities with access to information
Arkyn Studios (48.0%)
FastStart apps for SAP
Kashet (4.3%)
Mobile first banking
Develco (40.0%)
Embedded software, electronics and IoT
Beem (4.4%)
Employee communication platform
1 Investment made in January 2022
Annual Report 2021
43
The Trifork Group - Trifork Labs & Investments
TRIFORK GROUP REVENUE &
ACQUIRED COMPANIES (EURM)
Acquired revenue
Organic revenue
(not separately disclosed until 2014)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Annual Report 2021
44
The Trifork Group
History and key events
Trifork was founded in Denmark in 1996.
Between 2007 and 2014, Trifork shares were
listed on Nasdaq Copenhagen. At the begin-
ning of 2014, the headquarters were moved to
Schindellegi, Switzerland, and Trifork Holding
AG was established as the holding company of
the Trifork Group. As part of this reorganization,
Trifork was delisted from Nasdaq Copenhagen.
In May 2021 Trifork Holding AG was listed on
Nasdaq Copenhagen.
Trifork’s capabilities and entry into new markets
have been supported by the following signifi-
cant acquisitions:
In 2011, Trifork acquired a controlling stake
in Erlang Solutions Ltd., headquartered in
London, in order to expand Trifork’s presence
to Stockholm, London and Krakow and offer its
customers end-to-end solutions in telecom-
munications, messaging, payment systems
and process control. In 2021, additional NCIs
was acquired and Trifork end of 2021 held 74.4%.
In 2012, Trifork acquired Orange11, headquar-
tered in Amsterdam. Orange11 was renamed
Trifork after the acquisition. The product offering
complemented Trifork's product offering and
enabled Trifork to expand in the Dutch market.
In 2013, Trifork invested in a minority in Open
Credo Ltd., headquartered in London, expanding
the Trifork’s footprint in the United Kingdom. Trifork
acquired full control in 2015 and all remaining
shares in 2016.
In 2014, Trifork acquired 51% of the Design agency
Duckwise to strengthen the groups ability to
make UX-design and focus on usability. In 2021 all
remaining shares was acquired by Trifork.
In 2016, Trifork acquired an 88% stake in Netic
A/S, headquartered in Denmark. The acqui-
sition enhanced Trifork’s capacity to deliver
ongoing operational support to its customers.
In 2018, Trifork acquired 51% of Invokers A/S,
headquartered in Copenhagen, in order to
kick-start the Trifork Smart Enterprise busi-
ness area and give Trifork the ability to deliver
solutions integrating SAP-backend with mobile
front-end, and to increase focus on Design
Thinking. In 2019, all remaining shares were
acquired and the company was renamed to
Trifork Smart Enterprise. Trifork also acquired
70% of Testhuset A/S. Testhuset focus on soft-
ware quality and testing and was to support in
increasing software quality.
In 2020, Trifork acquired a 70% stake in Nine A/S,
a Danish next-gen IT company, strengthening
and anchoring Trifork’s role as a provider of
software development services to the Danish
public sector, thereby increasing the diversity
of the customer and revenue mix. Trifork also
acquired 51% of SAPBASIS which is focusing on
SAP-solutions and operations. This to strength-
en the Smart Enterprise business area.
In 2021, Trifork acquired Vilea, a Swiss-based
IT-firm specializing in designing and delivering
tailor-made mobile enterprise applications.
This to expand Trifork’s position in Switzerland.
Trifork also acquired the company
StrongMinds, which has specialist knowledge
within cloud technologies and also brought
in relationships with new public and private
customers.
Orange11
2010
19.1
2011
23.4
2012
30.0
2013
35.6
2014
44.1
2015
59.0
2016
63.1
2017
64.5
2018
86.5
2019
106.4
2020 2021
115.4
158.5
Annual Report 2021
46
Financial Reviews
Organic
52%
Acquisitions
48%
Growth 2021
Trifork Group
Financial
targets
General
The management of the Trifork Group is sat-
isfied with the results achieved in 2021.
Overall, the growth in the Trifork segment is
higher than initially expectations. This has
been satisfying in a year where the economic
environment to some extend has been influ-
enced by Covid-19 lockdowns and restrictions.
The Inspire sub-segment was still in most of
2021 restricted from completing in-person
conferences. We only managed to complete
one physical conference (GOTO Aarhus) and
a hybrid conference (GOTO Copenhagen).
With short notice we had to postpone our
planned GOTO-conference in Amsterdam
from December 2021 to June 2022 after local
Covid-19 restrictions was reinstalled in the
Netherlands in early December.
Build and Run have kept their growth pace
throughout the year and developed satisfying.
Trifork Labs has in 2021 again been positively
influenced by the exit of Humio Ltd. as the exit
proceeds end of 2020 were fixed in USD. This
led to a further positive fair value adjustment
of EURm 1.7 in Q1/2021 where the profit was re-
alized. Additionally, EURm 0.2 were realized due
to a purchase price adjustment. Additionally,
financing rounds in 3 Labs investments had a
positive fair valuation impact of EURm 0.9.
By the end of November 2021, Trifork Group
sold a stake in Dawn Health A/S which led to
its deconsolidation with a positive impact on
other operating income of EURm 20.3.
The consolidated revenue for the Trifork
Group was EURm 158.5 and the EBIT was EURm
35.6, which is within the updated target range.
Development in revenue
The Trifork Group revenue of EURm 158.5
equals 37.4% growth compared to 2020,
where EURm 115.4 was achieved. The growth
was nearly equally achieved organically
(19.6%) and from acquisitions (17.8%). For 2021,
the Group has outperformed its mid-term
target to obtain an annual 10-15% organic
revenue growth.
Acquisitional growth reported in 2021 com-
prises of the revenue from Jan-Aug for Nine
A/S, May-Dec from Vilea Group and Nov-Dec
from Strongminds ApS.
In 2021, none of the investments in Trifork
Labs contributed to the Trifork Group revenue
since the status and ownership ratio of the
companies do not meet the requirements for
the Trifork Group to make a full consolidation.
So, even though the activities in Trifork Labs
were substantial in 2021, this is not shown as
an increasing activity in the Trifork Group.
EURm 2021/05 2021/08 2021/09 2021/11 2021/11 2022/02 Result
Revenue 140 -
150
145 -
150
150 -
155
150 -
155
150 -
155
158 -
159
158.5
EBIT 12.8 -
14.8
12.8 -
14.8
13.0 -
15.5
13.0 -
15.5
34.0 -
36.5
35.5 -
36.0
35.6
ORIGIN OF GROWTH
TRIFORK GROUP REVENUE (EURM)
64.5
86.5
106.4
115.4
158.5
2017 2018 2019 2020 2021
FULL TIME EMPLOYEES
424
504
626
682
880
2017 2018 2019 2020 2021
Annual Report 2021
47
Financial Reviews
Origin of growth
In 2021, 52.4% of the adjusted growth was
organic and 47.6% came from acquisitions.
Trifork will continue to focus on growth of
revenue in our core markets being Denmark,
Switzerland, the Netherlands and United
Kingdom. Growth outside of these markets
will be more opportunistic. We believe in
growth on more markets to strengthen the
Trifork Group and make it more resilient.
Activities in more markets reduce the overall
risk exposure if one market shows poor
performance and it also provides further
business opportunities.
Revenue divided into segments
The two overall segments in the Trifork Group
are defined as Trifork and Trifork Labs. The
external revenue in 2021 was divided in the
following way (as no Trifork Labs investment
is consolidated into Trifork Group, Trifork Labs
does not contribute to the Group revenue).
Employees
In 2021, the Group grew organically but
also by the acquisitions of Vilea Group and
Strongminds ApS. Both areas contributed to
increase the average FTE reported for the
Trifork Group. On the other hand the decon-
solidation of Dawn Health decreased the
total number of employees.
End of 2021, the total number of employees
within companies consolidated in the Trifork
Group accounted to 950 compared to 828
end of 2020. Following the revenue drop in
the Inspire business and the continuing low
activity due to Covid-19 restrictions, Trifork
did not reduce the number of employees
accordingly, on one hand in order to invest
in alternatives, such as online conference,
a new virtual book-club and our YouTube
tech-channel and on the other hand also to
be able to continue with in-person con-
ferences as soon as lockdowns related to
Covid-19 allow for this.
The average number of Full Time Employees
(FTE) was calculated to 880 for 2021. This is
an increase of 198 FTE compared to 2020.
Costs
The most significant cost in the Trifork Group
is personnel costs. In 2021, total personnel
costs were EURm 87.7 compared to EURm 64.1
in 2020. Personnel cost per employee has
increased by 6.0% compared to 2020. Main
reason for the increase is the market de-
mand for highly skilled specialists reflected
in higher salaries in most countries.
Personnel costs as a proportion of reve-
nue were a slightly lower in 2021 with 55.3%
compared to 55.6% in 2020. The future
development in this KPI is estimated to be
positive with a lower ratio, driven by re-
suming the conference business and an
increased product based revenue in the
Trifork segment.
Revenue (EURm) 2021 2020
Trifork 158.5 115.4
Trifork Labs 0.0 0.0
Trifork Group 158.5 115.4
Revenue has grown by
37.4% to EURm 158.5
from 2020 to 2021
5.8
8.2
7.5
11.2
19.5
2017 2018 2019 2020 2021
7.5
10.1
12.7
17.9
27.1
2017 2018 2019 2020 2021
TRIFORK GROUP ADJUSTED EBITA (EURM)
TRIFORK GROUP ADJUSTED EBITDA (EURM)
Annual Report 2021
48
Financial Reviews
Development in adjusted EBITDA
In 2021, the Trifork Group realized EURm 27.1
adjusted EBITDA
*
, an increase of 51.3% com-
pared to 2020.
Adjusted EBITDA was divided in the following
way between Trifork and Trifork Labs:
As with revenue the primary driver for ad-
justed EBITDA was the Trifork segment with
EURm 28.6. This was a 41.6% growth com-
pared to 2020 and equal to an 18.1% adjusted
EBITDA-margin compared to 17.5% in 2020.
The negative EBITDA of EURm -1.5 represents
all the cost of driving the Labs organization.
This is seen as an expected result in relation
to the nature of Trifork Labs. Part of the costs
represent a variable cost element based on
the achieved fair value increase and profits
for the Labs segment.
Overall, the results obtained in 2021 corre-
spond to an adjusted EBITDA margin of 17.1%
compared to 15.5% in 2020. This development
is considered satisfactory and aligned with
the Groups target to increase of the margins
over the mid-term.
Development in adjusted EBITA
In 2021, the Trifork Group realized an adjusted
EBITA
*
of EURm 19.5, which is a 73.7% increase
compared to 2020, where EURm 11.2 was
achieved. The 2021 adjusted EBITA equals an
12.3% adjusted EBITA-margin compared to
9.7% in 2020.
The analysis by EBITA eliminates the differ-
ences in lease accounting to other account-
ing frameworks that consider lease cost as
operating expense (except for lease interest
expense of EURm 0.5).
Adjusted EBITDA
(EURm) 2021 2020
Trifork 28.6 20.2
Trifork Labs -1.5 -2.3
Trifork Group 27.1 17.9
Adjusted EBITA
(EURm) 2021 2020
Trifork 21.0 13.5
Trifork Labs -1.5 -2.3
Trifork Group 19.5 11.2
* adjusted for special items (IPO-preparation costs, M&A legal costs and other income from deconsolidation)
15
16
17.7
47.0
36.7
2017 2018 2019 2020 2021
4
6.1
5.3
7.9
15.4
2017 2018 2019 2020 2021
TRIFORK GROUP EBT (EURM)
TRIFORK GROUP ADJUSTED EBIT (EURM)
Annual Report 2021
49
Financial Reviews
Development in adjusted EBIT
In 2021, the Trifork Group realized an EURm
15.4 adjusted EBIT
*
compared to EURm 7.9 in
2020. The increase was driven by the overall
growth and lower cost included on EBITDA in
Trifork Labs. The Trifork segment increased
from EURm 10.2 to 16.9 equal to a 66.3% in-
crease compared to 2020.
The Trifork Group 2021 adjusted EBIT equals
an adjusted EBIT-margin of 9.7% compared
to 6.8% in 2020.
Depreciation, amortization and impairment
were at the expected level.
Development in EBIT
In 2021, the Trifork Group realized an EURm
35.6 EBIT compared to EURm 6.4 in 2020.
Compared to the adjusted EBIT this include
special items in the period of EURm 22.1 from
the deconsolidation of Dawn Health and
IPO-preparation costs of EURm 1.8.
EBIT (EURm) 2021 2020
Trifork 37.1 12.5
Trifork Labs -1.5 -2.3
Trifork Group 35.6 6.4
The Trifork Group 2021 EBIT-margin was 22.5%
compared to 5.6% in 2020.
Development in EBT
In 2021, the Trifork Group reached EURm 36.7
EBT (earnings before tax), which equals a
decrease of EURm 10.3 compared to 2020,
where EURm 47.0 was realized.
The 2021 financial result totalled EURm 2.4
compared to EURm 40.6 in 2020.
The main contributors in 2021 were
Changes in fair-value valuations of
investments of EURm 5.0 in Trifork Labs
compared to EURm 41.3 in 2020. The exit of
Humio Ltd. contributed significantly to the
2020 results.
Net interests on capital of EURm -1.4 com-
pared to EURm -1.3 in 2020.
Net fair value adjustments on contingent
consideration liabilities of EURm -0.3 com-
pared to EURm -0.8 in 2020.
Negative net result of foreign exchange of
EURm -2.2 in 2021 compared to EURm 0.0
in 2020. In 2021 this actual was a gain of
EURm 0.8 since an income of EURm 3.3 is
recorded on OCI.
Management considers the earnings before
tax for 2021 as satisfying, compared to the
EBIT result achieved.
Adjusted EBIT (EURm) 2021 2020
Trifork 16.9 10.2
Trifork Labs -1.5 -2.3
Trifork Group 15.4 7.9
EBT (EURm) 2021 2020
Trifork 33.4 7.9
Trifork Labs 3.3 39.1
Trifork Group 36.7 47.0
* adjusted for special items (IPO-preparation costs, M&A legal costs and other income from deconsolidation) and
in 2020 for a one-off amortization on a purchased development project since this sets off against an equal gain
in the financial result (earn-out liabilities)
33.2
44.3
57.3
83.2
110.7
2017 2018 2019 2020 2021
13.7
14.8
16.3
44.7
32.7
2017 2018 2019 2020 2021
TRIFORK GROUP EQUITY (EURM)
TRIFORK GROUP NET INCOME (EURM)
Annual Report 2021
50
Financial Reviews
Net income
In 2021, the Group net income was EURm 32.7,
which equals a decrease of EURm 12.0 com-
pared to 2020, where EURm 44.7 was realized.
In 2021, EURm 3.3 of the profit belongs to
non-controlling interests. In 2020, this was
EURm 1.4.
The result corresponds to a EUR 1.52 basic
earning per share.
Management considers this result satisfying.
The effective tax rate for the Group was 10.8%
in 2021 and 5.1% in 2020. The low tax-rate
in 2021 is primarily due to the non-taxable
income from the deconsolidation of Dawn
Health and from investments in Trifork Labs.
The result gives a total 30.8% return on equity
compared to 63.4% in 2020. Management
considers this level very satisfactory.
Total comprehensive income
In 2021, total comprehensive income (TCI)
ended at EURm 36.0, compared to EURm 44.3
in 2020.
The main contributor were
Actuarial gain on pension liabilities
of EURm 0.3
Positive currency translations adjustments
of EURm 3.0. This is connected and mainly
sets off the negative foreign exchange re-
sult of EURm -2.2 in the income statement
as described in the section "Development
of EBT". Accounting for these effects in the
income statement and in other compre-
hensive income is required by IFRS as the
underlying assets are held in companies
with another functional currency than the
Group.
Balance and equity
TOTAL ASSETS
Total assets increased by 7.2% from EURm
229.1 as of 31 December 2020 to EURm 245.7
as of 31 December 2021.
The main contributors were
Net reduction of financial assets of EURm
28.6 in Trifork Labs investments (sale
Humio, new acquisitions, addition of Dawn
Health A/S, fair value adjustments).
EURm 7.8 of new assets acquired through
business combinations of Vilea Group and
Strongminds ApS.
Net cash inflows of EURm 26.6.
Net increase of trade receivables from
business growth of EURm 10.5.
NON-CURRENT ASSETS
Non-current assets have increased EURm
34.5. The most significant reason for this
being changes to Labs investments (acqui-
sitions, addition of Dawn Health A/S to Labs
investments and the fair valuation) and
the recognition of goodwill from business
combinations.
Product development capitalized at the
end of 2021 accounted for EURm 2.6 in total
compared to EURm 3.2 as of end 2020. The
decrease is mainly due to the fact that the
development cost used on smaller products
in 2021 has not been capitalized in the bal-
ance sheet. Further details are to be found
in note 4.6 of the consolidated financial
statements.
TRIFORK GROUP - DEVELOPMENT
IN CASH FLOW (EUR 1,000)
Operating
Investing
Financing
Total
2020 2021
Annual Report 2021
51
Financial Reviews
TREASURY SHARES
Due to the listing of the shares at NASDAQ
Copenhagen, the Group has seen a signif-
icant decrease in the number of treasury
share transactions. End of 2021, the company
held 45,019 treasury shares.
SHAREHOLDERS’ EQUITY
As of 31 December 2021, Group equity
amounts to EURm 110.7, which is a 33.1%
increase compared to end 2020 where the
equity was EURm 83.2.
A total of EURm 0.9 of the shareholders’ eq-
uity is allocated to non-controlling interests
(NCI).
Equity ratio (excl. NCI) at the end of 2021 is
46.0% compared to 35.1% end of 2020.
Cash flow and cash position
OPERATING ACTIVITIES
In 2021, net cash flows from operating ac-
tivities amounted to EURm 7.8 compared to
EURm 17.8 in 2020. This decrease is mainly
due to the net increase in net working capital
of EURm 12.8, based on the organic and ac-
quisitional growth and including a payment
of EURm 3.3 to the Employees' Holiday Fund.
Trade receivables increased from EURm 25.5
in 2020 to 36.1 in 2021. Compared to total
revenue for the year this is equal to a ratio of
22.8% compared to 21.9% in 2020. The target
for the Group is to have a ratio below 20%.
The ratios in 2020 and 2021 were impaired
the significant lack of conference revenue.
INVESTING ACTIVITIES
Cash flows from investing activities amounted
to EURm 49.7 compared to EURm -31.5 in 2020.
The main contributors were
Transactions with Trifork Labs investments,
of which acquisitions of EURm 5.6, sales of
EURm 58.8 and dividends EURm 0.7
Net capex of EURm 5.3
Net repayment of loans granted of EURm 0.7
FINANCING ACTIVITIES
Cash flows from financing activities amounted
to EURm -32.4 compared to EURm 25.9 in 2019.
The main contributors were
Net decrease of borrowings of EURm 27.1,
due to accelerated amortization with the
proceeds received from the Humio Ltd.
exit.
Net proceeds from capital increases of
EURm 17.4
Dividends of EURm -13.0, paid to Trifork
Holding AG shareholders and to minorities
in subsidiaries
Net acquisition of NCI for EURm -2.5
Interest paid of EURm -1.6
Lease payments of EURm -5.0
Net acquisition of treasury shares for EURm
-0.8
CASH POSITION
As of 31 December 2021, Trifork Group has a
net cash position of EURm 17.1 and a Net-debt-
to-EBITDA-ratio of -0.36x, compared to a net
debt position of EURm 37.4 and a Net-debt-to-
EBITDA-ratio of 2.20x.
Events after the reporting date
None.
17.8
7.8
-31.5
49.7
25.9
-32.4
12.0
26.7
Run
20.6%
Build
77.6%
Inspire
1.5%
Sub-segments
2021
64.4
87.4
106.4
115.4
158.5
2017 2018 2019 2020 2021
TRIFORK SUB-SEGMENTS
TRIFORK REVENUE (EURM)
Annual Report 2021
52
Financial Reviews
Trifork Segment
Financial
targets
General
The management finds the 2021 results of
the Trifork segment satisfying.
The consolidated revenue for the Trifork
segment was EURm 158.5, which is above the
original target. The adjusted EBITDA
*
of EURm
28.6 is also above the initial range of EURm
23.7-28.5.
Development in revenue
The Trifork revenue of EURm 158.5 was a
37.4% growth compared to 2020. The reve-
nue growth was achieved by 19.6% organic
growth and 17.8% growth from acquisitions.
The organic growth exceeded the compa-
ny’s mid-term ambition to obtain an annual
10-15% organic revenue growth.
Overall the origin of revenue was with 70.7%
from the private sector and 29.3% in the pub-
lic sector. This is at the same level as in 2020.
Revenue streams and sub-segments
The revenue streams in the Trifork segment
are internally reported in three different go-
to-market sub-segment as well as "other".
The services are delivered within the three
sub-segments:
Inspire (Inspirational workshops and
organizing conferences and trainings on
software development),
Build (development of innovative software
solutions for customers) and
Run (delivery and operation of software
products and related services for customers)
Revenue in the different sub-segments has
shown the following results:
Revenue (EURm) 2021 2020
Inspire 2.4 2.0
Build 123.0 86.7
Run 32.7 26.4
Other 0.4 0.3
Trifork 158.5 115.4
* adjusted for special items (IPO-preparation costs,
M&A legal costs and other income from
deconsolidation)
EURm 2021/05 2021/08 2021/09 2021/11 2021/11 2022/02 Result
Revenue 140 -
150
145 -
150
150 -
155
150 -
155
150 -
155
158 -
159
158.5
Adjusted
EBITDA
23.7 -
28.5
26.0 -
28.5
27.5 -
30.0
27.5 -
30.0
27.5 -
30.0
28.5 -
29.0
28.6
7.9
10.7
13.3
20.2
28.6
2017 2018 2019 2020 2021
TRIFORK ADJUSTED EBITDA (EURM)
Annual Report 2021
53
Financial Reviews
Inspire
With a revenue of EURm 2.4 Inspire
delivered 1.5% of total revenue in Trifork.
Although revenue grew by 22.9% com-
pared to 2020, pre-Covid-19 revenue is not
yet reached. In 2021, one physical (Aarhus)
and one hybrid (Copenhagen) GOTO
conference were held. A hybrid conference
planned for Amsterdam had to be post-
poned to 2022 as Covid-19 measures were
locally re-implemented in the end of 2021.
Build
With a revenue of EURm 123.0 Build deliv-
ered 77.6% of total Trifork revenue. Of this
61.6% was repeat revenue with strategic
customers. The increase of EURm 36.3
was equal to a growth of 41.8% compared
to 2020. Organic growth was 18.3%. With
an inorganic revenue of EURm 20.5 the
acquisitions from 2020 and 2021 only
impacted the revenue increase in the Build
sub-segment.
Run
With a revenue of EURm 32.7 Run delivered
20.6% of total Trifork revenue and delivered
an organic growth of 23.6%. Compared
to 2020 this was an increase of EURm 6.3
equal to 23.6%. Most Run based revenue is
recurring and come from sales of Trifork’s
own products and related services.
Development in adjusted EBITDA
In 2021, the Trifork segment realized EURm
28.6 adjusted EBITDA* equal to an adjusted
EBITDA-margin of 18.1% and an increase of
41.9% compared to 2020.
Adjusted EBITDA was divided in the following
way between the different business areas.
Although two conferences with physical ap-
pearance were held in 2021, the Inspire busi-
ness was still highly affected by the Covid-19
lockdowns. The team in the organization of
the well established GOTO conferences has
also worked to increase the virtual offering.
More content was created for the GOTO
YouTube tech-channel, which reached 28.2m
views as per end 2021. The costs for these
offerings lead to a negative result in 2021. To
improve the virtual offering and to be ready
again for the physical conferences, Trifork
kept the Inspire team together.
With a contribution of EURm 26.0 in adjust-
ed EBITDA the Build sub-segment reported
adjusted EBITDA-margin of 21.2%, compared
to 19.4% in the previous year. The achieved
margin exceeds management target of
18-20%.
The Run sub-segment focuses on creating
recurring revenue streams by selling Trifork
products and related services on long-term
contracts.
Adjusted EBITDA
(EURm) 2021 2020
Inspire -0.6 -1.5
Build 26.0 16.8
Run 7.4 5.9
Other -4.2 -1.0
Trifork 28.6 20.2
From 2020 to 2021, adjusted EBITDA
grew from EURm 20.2 to EURm 28.6
This represents an increase of 41.9%
* adjusted for special items (IPO-preparation costs (other), M&A legal costs (Build) and other income from
deconsolidation (Build))
6.2
8.8
8.0
13.4
21.0
2017 2018 2019 2020 2021
TRIFORK ADJUSTED EBITA (EURM)
4.7
7.1
5.8
10.1
16.9
2017 2018 2019 2020 2021
TRIFORK ADJUSTED EBIT (EURM)
Annual Report 2021
54
Financial Reviews
The effect of this was a significant increase
in revenue on our own products and es-
pecially in operation services. In 2021, the
Run business achieved an adjusted EBITDA
of EURm 7.4 equal to an adjusted EBITDA-
margin of 22.8%, compared to 22.2% in the
previous year. The margin is in line with
Management expectation of 21-23%.
Overall, for all of the Trifork segment the
results achieved in 2021 correspond to an
adjusted EBITDA-margin of 18.1% compared
to a margin of 17.5% in 2020.
Development in adjusted EBITA
In 2021, the Trifork segment realized an
adjusted EBITA* of EURm 21.0, which is 56.0%
increase compared to 2020, where EURm
13.4 was achieved. The 2021 adjusted EBITA-
margin was at 13.2% compared to 11.7% in
2020.
Development in adjusted EBIT
In 2021, the Trifork segment realized an EURm
16.9 adjusted EBIT*, which is 66.3% increase
compared to 2020, where EURm 10.2 was
achieved. The 2021 adjusted EBIT equals an
10.6% adjusted EBIT-margin compared to
8.8% in 2020.
During 2021 depreciation and amortization
occurred as expected and a minor impair-
ment was made. The corrections amounted
to less than EURm 0.1. For 2022, no extraor-
dinary depreciation/amortizations are
expected.
* adjusted for special items (IPO-preparation costs (other), M&A legal costs (Build) and other income from
deconsolidation (Build))
Annual Report 2021
55
Financial Reviews
Description of
sub-segments
Inspire
The Inspire sub-segment is primarily en-
gaged in developing and implementing the
GOTO conferences as well as partner con-
ferences in Europe and the USA. Inspirational
design thinking workshops and training in
agile processes and software development
are also part of the deliveries.
Build
The Build sub-segment is engaged in
building innovative software solutions to the
customers of Trifork. The services include
building solutions for banks, governments,
agencies or leading industrial manufactur-
ers. Solutions are primarily done on a time
and material basis or as fixed price deliver-
ies in cases where Trifork is responsible for
the whole implementation of a solution. Most
often, strategic partnerships are engaged in
with the major customers.
Run
The Product business area is based on the
process and value stream with product
development and sale of Trifork developed
products as well as business related to the
sale of partner products. Products are either
sold separately or in relation to projects
where Trifork is engaged in relation to devel-
oping new solutions for its customers.
0.9
0.3
0.3
0.4
12.6
17.8
21.5
26.4
32.7
43.6
61.5
76.6
86.7
123
7.4
7.1
8.1
1.9
2.4
2017 2020 202120192018
Other Run Build Inspire
-4.2
-0.6
26.0
7.4
Inspire
Build
Run
Other
Total
28.6
-26.8% 21.2% 22.8% n.m 18.1%
REVENUE BY SEGMENTS (EURM) ADJUSTED EBITDA (NON-IFRS) AND
MARGINS BY SEGMENTS 2021 (EURM)
Annual Report 2021
56
Financial Reviews
Trifork Labs Segment
General
The 2021, targets for the Trifork Labs segment
was to participate in three new startups and
to increase the value on the investments
(financial assets).
In 2021, Trifork Labs continued the work with
the existing investments and seized new
investment opportunities:
The Group co-founded two new startups,
invested in three in three additional early
stage product companies, reinvested in
four investments, closed the exit of Humio
Ltd. and took over the investment in Dawn
Holding A/S after the deconsolidation from
the Trifork segment.
Four investments raised EURm 22.6 in new
funding rounds in 2021.
In total, all the activities in the Trifork Labs
segment resulted in an EBT of EURm 3.3 in
2021.
Management is satisfied with the performed
activities.
Development in revenue, EBITDA and
EBIT
The financial focus for the Trifork Labs seg-
ment is to increase the value of the capital
invested in financial assets.
In 2021, Trifork Labs did not consolidate any of
the investments in the Trifork Group financial
reporting of Revenue, EBITDA and EBIT and
thus these accounts only show the cost of
running the investment activities.
EURm 2021 2020
EBITDA -1.5 -2.2
EBIT -1.5 -2.2
EBITDA and EBIT of EURm -1.5 were at the
expected level (2020: EURm -2.2) and refer
to management cost for the Labs segment,
part of which is variable in relation to the
annual fair valuation adjustments.
Development in EBT
EBT (earnings before tax) for 2021 was EURm
3.3 compared to EURm 39.2 in 2020. The re-
sult in 2020 was to a large extend generated
from the fair value adjustments and sale of
Humio Ltd.
This profit is equal to 12.3% return on the
value of the financial assets, not taking into
account the addition of Dawn Labs A/S, as
the profit from its deconsolidation was rec-
ognized in the Trifork segment.
EURm 2021 2020
EBT 3.3 39.2
TRIFORK LABS EBT (EURM)
9.7 9.8
9.0
39.2
3.3
2017 2018 2019 2020 2021
Realized gain Unrealized gain
1.7
2.2
3.7
5.5
30.6
13.1
17.5
28.8
70.4
16.7
8
10.7
10.7
11
69.6
TRIFORK LABS FINANCIAL ASSETS(EURM)
14.7
19.7
32.5
75.9
47.3
2017 2018 2019 2020 2021
TRIFORK LABS INVESTMENTS (EURM)
Cash / cost in active investments Acc. unrealized gain
Acc. realized gain
20182017 2019 2020 2021
Annual Report 2021
57
Financial Reviews
Total profit from investments
The graph aside shows the overall financial
development and results from the Trifork
Labs investments in the period from 2017 to
2021.
End of 2021, the total accumulated cashed
in profit from exits accounted for EURm 69.6.
This includes the deduction of the initial cash
invested in all of the disposed investments.
The total investments in the current active
Labs companies end of 2021 accounted for
EURm 30.6 out of the total value of EURm 47.3.
Based on this the accumulated unrealized
profit can be calculated to EURm 16.7.
Financial assets
The 2021 development in financial assets
had been affected by new investments of
EURm 26.0, fair-value adjustments of EURm
5.0 and exits of EURm 59.1.
In total the value of the financial assets
reduced from EURm 75.9 end of 2020 to EURm
47.3 end of 2021.
EURm 2021 2020
Financial assets 47.3 75.9
In 2021, Trifork Group recognized a
positive fair value adjustment of
its Labs investments of EURm 5.0
Annual Report 2021
59
Corporate Governance
Governance model/
management structure
Trifork has a two-tier management structure,
which is comprised of the Board of Directors
and the Executive Management.
The Board of Directors is entrusted with the
overall direction of the Group and has the
overall responsibility for the business and
affairs of the Group. In accordance with
Trifork's articles of association and its or-
ganisational rules, the Board of Directors has
delegated the operational management of
the Company to the Executive Management,
which is headed by the Company's CEO.
The Board of Directors supervises the work
of the Executive Management and is re-
sponsible for the overall management and
strategic direction as well as financial and
other material matters, including the ap-
pointment of the members of the Executive
Management.
It represents the Company in dealings with
third parties and deals with all matters
not delegated to or reserved for another
corporate body of the Company by law,
the Company's articles of association, the
Company's organisational rules or other
internal regulations.
Annual Report 2021
60
Corporate Governance
Board of Directors
Pursuant to the articles of association,
the Board of Directors shall consist of not
less than three members elected by the
Company's general meeting. Currently, the
Board of Directors consists of five mem-
bers, including a chairperson of the Board
of Directors, elected by the general meet-
ing. The Board of Directors elects a dep-
uty chairperson of the Board of Directors
among its members. Under the current
Corporate Governance Recommendations,
eighty percent of the members of the Board
of Directors have been assessed to be
independent.
The members of the Board of Directors
comprise a group of professionally skilled
business people also representing diversity
and international experience.
The members of the Board of Directors
elected by the general meeting are elected
for a term of one year until the next annual
general meeting. Members of the Board of
Directors may be re-elected. The Board of
Directors meets at least seven times a year
and on an ad-hoc basis, if necessary.
The Board of Directors also conducts an
annual review of the Board of Directors'
performance, composition and achieve-
ments, including the competencies of each
board member, and the cooperation with
the Executive Management. Furthermore,
the Board of Directors annually evaluates
the work, performance and results of the
Executive Management.
CHAIRPERSON OF THE BOARD OF DIRECTORS
Julie Galbo
Year of joining the BoD 2020
Term of office until the Annual General Meeting for the fiscal years 2021
Committee(s) Nomination & Remuneration Committee, Member
Independent Yes
Year of birth 1971
Gender Female
Nationality Danish
Educational background Master in Law - University of Copenhagen / Aarhus University
Management program - INSEAD
Professional background 2014 - 2019: Various positions in Nordea, including member of
the Group Executive Management of Nordea and the Executive
Management in Nordea Asset Management
2009 - 2014: Various public sector positions, including Head
of State Capital Injections with the Danish Ministry of Business
and Deputy Director General with the DK Financial Supervisory
Authority
Other directorships and
executive roles
Member of the Board of Directors of Commonwealth Bank of
Australia, DNB Bank ASA (incl. member of the risk committee and
the audit committee) and Velliv A/S
Annual Report 2021
61
Corporate Governance - Board of Directors
Board of Directors
MEMBER OF THE BOARD OF DIRECTORS
Maria Hjorth
Year of joining the BoD 2020
Term of office until the Annual General Meeting for the fiscal years 2021
Committee(s) Audit & Risk Committee, Chairperson
Independent Yes
Year of birth 1972
Gender Female
Nationality Danish
Educational background Master in Economics - University of Copenhagen
Master in Business Psychology - University of Westminster
Professional background 2019 - 2021: CEO & Deputy CEO of VP Securities (Central Securities
Depository of Denmark)
2014 – 2019: CEO of Mercer Denmark
2005 – 2014: Investor relations, Head of International Corporate
Banking and Head of Business Development for Business Bank-
ing, Denmark at Danske Bank
Other directorships and
executive roles
Chairperson of the Board of Directors of Grandhood and Mon-
senso, Vice-Chairperson of the Board of Directors of Thylander
Group, Member of the Board of Directors of Maj Invest and
Asetek, General partner & Co-founder of Vår Ventures
VICE-CHAIRPERSON OF THE BOARD OF DIRECTORS
Olivier Jaquet
Year of joining the BoD 2019
Term of office until the Annual General Meeting for the fiscal years 2021
Committee(s) Nomination & Remuneration Committee, Chairperson
Audit & Risk Committee, Member
Independent Yes
Year of birth 1969
Gender Male
Nationality Swiss
Educational background PhD/Master in Law - University of Basel
Professional background From 2016: CEO and Vice Chairman of the Board of Directors at
Jaquet Partners AG
2015: Vice Chairman of the Board of Directors at Jaquet
Technology Group
2012-2014: CEO of Centrum Bank
2011: CEO of Clariden Leu Bank and Member of the foundation
board of the Credit Suisse Pension Fund
1999 – 2011: Multiple CEO and Board Member functions at Credit
Suisse Group (incl. Credit Suisse Life and Credit Suisse Trust)
Other directorships and
executive roles
Chairman of the Board of Directors of OJA Invest AG, Northwest
Real Estate AG and Parashift AG (from 01/01/2022), Vice Chairman
of the Board of Directors at Jaquet Partners AG, Member of the
Board of Directors of Jaquet Immobilien AG, Jaquet Beteiligun-
gen AG and Sidoma AG
Annual Report 2021
62
Corporate Governance - Board of Directors
Board of Directors
MEMBER OF THE BOARD OF DIRECTORS
Casey Rosenthal
Year of joining the BoD 2019
Term of office until the Annual General Meeting for the fiscal years 2021
Committee(s) Nomination & Remuneration Committee, Member
Independent Yes
Year of birth 1978
Gender Male
Nationality American
Educational background Bachelor in Philosophy - Ohio University
Professional background Expert on the topics of Chaos Engineering and complexity in
large scale software systems
From 2018: Founder and CEO of Verica.io
2015 - 2018: Engineering manager in the Traffic Engineering and
the Chaos Engineering Teams at Netflix
Other directorships and
executive roles
Member of the Board of Directors of Verica.io and Erlang Solu-
tions Ltd (Trifork Group company)
MEMBER OF THE BOARD OF DIRECTORS
Lars Lunde
Year of joining the BoD 2020
Term of office until the Annual General Meeting for the fiscal years 2021
Committee(s) Audit & Risk Committee, Member
Independent No
1
Year of birth 1973
Gender Male
Nationality Danish
Educational background Master in Economics - University of Copenhagen
Professional background From 2015: Founding partner of GRO Capital, a Nordic-based
private equity fund, specialized in investing in and developing
mid-sized B2B software companies
2011 - 2014: Managing Director at Carnegie
Other directorships and
executive roles
Chairman of the Board of Directors for the GRO Capital funds
and Netic A/S (Trifork Group company), Member of the Board of
Directors of GRO’s portfolio companies, including Tacton, Luxion
and Promon
1 Until 27 May 2021, GRO Capital held 3,760,384 shares of Trifork Holding AG
(refer to Company Announcement #15/2021)
Annual Report 2021
63
Corporate Governance
Board Committees
The Board of Directors has established an
Audit & Risk Committee and a Nomination &
Remuneration.
Committee for the purpose of assisting the
Board of Directors with preparing decisions
and submitting recommendations for the
entire Board of Directors. Each of the com-
mittees has a charter setting forth, among
other things, the composition, tasks, duties
and responsibilities of the committee.
Audit and Risk Committee
The Audit & Risk Committee consists of three
members, including a chairperson of the
Audit & Risk Committee, appointed by and
among the Board of Directors for a one-year
term.
Nomination and
Remuneration Committee
The Nomination & Remuneration Committee
consists of three members elected by the
general meeting among the Board of Direc-
tors for a one year term. The chairperson of
the Nomination & Remuneration Committee
is appointed by the general meeting. With
respect to remuneration, the Nomination
& Remuneration Committee, in particular,
assists the Board of Directors in determining
and reviewing the Company's remuneration
strategy, remuneration policy and guidelines
and the qualitative and quantitative criteria
for compensation, and with the preparation
of the proposals to the General Meeting con-
cerning the approval of the compensation
of the Board of Directors and the Executive
Management. With respect to nomination,
the Nomination & Remuneration Committee,
in particular, supports the Board of Directors
in fulfilling its duties relating to succession
planning and nomination on a Board of
Directors and Executive Management level
and annually presents recommendations to
the Board of Directors on potential members
of the Board of Directors up for election at
the Annual General Meeting.
Meeting attendances
Beside the meetings of the Board of Directors
and its committees, its chairpersons meet
frequently with the Executive Management
members to understand the current devel-
opments of the Group with regard to oper-
atios and governance and to pre-discuss
upcoming agenda items.
Member BoD Meetings NRC Meetings ARC Meetings
Total 19 1 5
Members
Julie Galbo 19 1 -
Olivier Jaquet 18 1 5
Maria Hjorth 19 - 5
Lars Lunde 19 - 5
Casey Rosenthal 19 1 -
Jørn Larsen
1
9 - -
Kristian Wulf-Andersen
1
9 - -
1 Until 29 April 2021
Annual Report 2021
64
Corporate Governance
Executive Management
The Executive Management, currently comprising the CEO and the CFO, is responsible for the
day-to-day operations and management of the Company and is in charge of ensuring that the
Company and its operations are compliant with applicable legislation as well as the Board of
Directors' guidelines and instructions.
CEO – MEMBER OF EXECUTIVE MANAGEMENT
Jørn Larsen
Year of joining the EM 1996
Year of birth 1966
Gender Male
Nationality Danish
Educational background Mechanical engineering degree / Civil engineering degree in
Computer Science - University of Aalborg
Professional background Serial entrepreneur in the Nordic technology sector with
co-foundation of >50 start-ups
From 1996: Founder and CEO of Trifork
1994 – 1995: Project Manager with Dator A/S
1984 – 1989: Technical Naval engineer with A.P. Møller Maersk
Other directorships and
executive roles
Member of the Board of Directors of ExSeed Ltd. (Labs company)
and &Money ApS (Labs company), Owner and CEO of Blackbird
II ApS
CFO – MEMBER OF EXECUTIVE MANAGEMENT
Kristian Wulf-Andersen
Year of joining the EM 2007
Year of birth 1971
Gender Male
Nationality Danish
Educational background Bachelor in Economics - Aarhus Business School, Denmark
Professional background 1999-2007: Co-founder and CFO of the IT-infrastructure compa-
ny Interprise Consulting A/S (acquired by Trifork)
1996–1999: IT consultant, trainer and management consultant at
Siemens Nixdorf A/S / Siemens Business Services A/S
1989-2000: Officer at the Royal Danish Airforce
Other directorships and
executive roles
Member of the Board of Directors of EDIA B.V (Labs company)
and ComplyTeq AG (Labs company)
Annual Report 2021
65
Corporate Governance
Recommendations on
Corporate Governance
The Company is committed to exercising
good corporate governance at all times and
the Board of Directors will regularly assess
rules, policies and practices according to the
Corporate Governance Recommendations
and other rules and regulations, applica-
ble from time to time. Under the Nordic
Main Market Rulebook for Issuers of Shares
on Nasdaq Copenhagen, the Company
is permitted to apply either the corporate
governance code of its home state, Switzer-
land, or the Danish Corporate Governance
Recommendations.
The Company discloses its Corporate Gov-
ernance Statement for the financial year
2021 at our investor-site on https://investor.
trifork.com/statutes/
The Company complies with the recommen-
dations in all material respects, however,
noting that with respect to recommendation
3.4.5, Trifork’s remuneration policy itself will
not be approved by the general meeting, but
the remuneration report, which refers to the
remuneration policy, is subject to approval
by the general meeting.
Whistleblower
Trifork's Board of Directors have adopted a
whistleblower protocol and implemented
a whistleblower channel for the purpose of
giving employees and other stakeholders
the opportunity to report serious violations
or suspicion thereof in an expedient and
completely confidential manner.
When submitting a report through the com-
pany’s whistleblower channel the Chairper-
son of the Board of Directors, the Chief Legal
Officer and Trifork's external legal counsel
will receive the report and will instigate any
matter promptly accordingly take appro-
priate action. In order to secure the whis-
tleblower system has an independent and
autonomous channel and the independency
is secured by using an external law firm.
Any report can also be made directly to the
independent external law firm (MemoLaw).
The law firm will forward any reports to the
Chairman of the Board and CLO, who will
investigate the matter promptly and take
appropriate action if not conflicted.
All employees, the Executive Management,
the Board of Directors as well as any other
stakeholders Trifork are strongly encouraged
to report any serious violations or suspicion
thereof in order to ensure Trifork’s continuous
integrity, trust and reliability.
2021 saw no change in the number of whistle
blower reports filed. Across the Group, no
filings were made in 2021.
Diversity
Diversity is an important factor and Trifork
fully recognises the importance of pro-
moting diversity in its management levels,
including in relation to gender.
It is the ambition of the Company to have
underrepresented genders represented by
at least 30% on the Board of Directors and by
20% in the Management.
As of 31 December 2021, two board members
were female and three were male, conse-
quently, the company has fulfilled the ambi-
tion of having at least 30% of the underrep-
resented gender on the Board of Directors.
Trifork remains committed to ensuring that
these targets will be met as further outlined
in its Diversity Policy which can be found at
https://investor.trifork.com/statutes/
Annual Report 2021
66
Corporate Governance - Remuneration Report
Remuneration Report
1. Introduction
The Trifork remuneration report describes
the policies, organisation and elements of
the remuneration for the Board of Directors
(BoD) and Executive Management (EM) of the
Group in a qualitative manner and provides
quantitative information of the remuneration
for the fiscal year 2021.
This report satisfies the requirements set out
in articles 13 to 16 of the Ordinance against
Excessive Remuneration at Listed Joint-
Stock Companies (OaEC), which entered
into force on 1 January 2014 as well as the
Danish Recommendations on Corporate
Governance.
The remuneration of the Board of Directors
and the Executive Management for the fi-
nancial year 2021 was determined in accord-
ance with the Group’s Remuneration Policy.
2. Remuneration principles
Trifork's employees are the main driver for
the Group's success and value. This makes
it elementary to attract, motivate and retain
the best talent over the long term in a highly
competitive labour market. Performance-
based and share-based components of re-
muneration are included with the aim of en-
couraging employees to align thoughts and
acts with the interests of the shareholders.
To support these goals, Trifork has set out the
following remuneration principles:
Remuneration is competitive and compa-
rable with other players in the market.
The Group's and individual performance is
linked to remuneration.
The remuneration system aligns Trifork's
long-term strategy with the interests and
commitment of the employees.
Decisions taken on remuneration are fair,
transparent and gender-neutral.
The remuneration of the BoD consists of a
fixed fee and is not performance related in
order to support an objective focus.
The Group's and individual target achieve-
ment influence the remuneration of the EM.
The share ownership program reflects the
Group’s performance and strengthens our
managers’ loyalty and aligns their interests
with those of our shareholders.
3. Remuneration policy
A. Organisation
The Nomination & Remuneration Committee
(NRC) is responsible for the definition and
design of Trifork's remuneration policy and
supports the BoD with the identification and
nomination of possible candidates for the
BoD and EM. Amongst others, tasks are:
Preparation and planning of nominations
and staffing decisions on top manage-
ment level
Preparation and periodic review of the
remuneration policy and principles
and the performance criteria related to
remuneration
Periodic review of their implementation
as well as submission of proposals and
recommendations to the BoD
Preparation of all relevant decisions of the
BoD in relation to the remuneration of the
members of the BoD and of the EM as well
as submission of proposals and recom-
mendations in this respect
For the detailed description, please refer to
the NRC Charter.
The NRC met for three times from 29 April
2021 until the issuance of this report. All
members were present at all meetings.
B. Approval process (for retrospective AGM voting)
Decision on: CEO NRC BoD AGM
Remuneration of EM members
(w/o CEO)
Proposal Proposal Decision Binding vote on
maximum amount
Remuneration of the CEO Proposal Decision Binding vote on
maximum amount
Remuneration of the BoD and
its Committees
Proposal Decision Binding vote on
maximum amount
Remuneration report Proposal Approval Consultative vote
Annual Report 2021
67
Corporate Governance - Remuneration Report
C. NRC composition
The NRC consists of three members that
are non-executive and independent. The
member are elected annually by the AGM for
a term of one year.
For the reporting period Olivier Jaquet, Julie
Galbo and Casey Rosenthal formed the
Committee. All members bring comprehen-
sive practical experience and professional
knowledge to their work in the Committee.
They were elected at the AGM of 29 April 2021.
NRC meetings generally take place prior to
meetings of the BoD so that proposals can
be defined and approved by the full Board.
4. Remuneration of the Board of Directors
The remuneration of the BoD is governed in
section IV of the Company’s articles and in
the Company’s remuneration policy.
With reference to the OaEC the BoD has
decided to have the AGM voting prospec-
tively for the total remuneration of the
BoD. Therefore, the AGM as of 29 April 2021
has voted for remuneration for the office
term starting as this date and a maximum
amount of CHF k 600 (approval of 100%).
For the reporting period, the remuneration of
the BoD comprises the following elements:
A. Fixed remuneration
The members of the BoD receive a fixed
remuneration for all of their work for the BoD.
The fees paid to members of the BoD are
reviewed periodically and were last adjusted
in 2021. For the reported office term, fees are
as follows:
in CHF k
Chairperson 110
Vice-Chairperson 45
Member 30
Committee Chairperson 15
Committee Member 10
B. Variable remuneration
The members of the BoD do not receive any
variable remuneration.
C. Shares and options
The members of the BoD do not receive any
remuneration in shares and/or options.
D. Social charges and pension
benefits
Remuneration paid to the Swiss members of
the BoD is subject to social charges ac-
cording to Swiss law. Both parties bear an
equal share. The employee contribution is
included in the remuneration paid (gross
presentation) and the employer contribution
is reported separately.
Members of the BoD are not entitled to pen-
sion benefits.
E. Expenses
Trifork is entitled to reimburse members
of the BoD for out-of-pocket expenses in
the form of actual or lump sum expense
payments in accordance with tax provisions.
This is not considered as remuneration.
F. Loans and credits
The granting of loans and credits to mem-
bers of the BoD is excluded according to art
31 of the Company’s articles. No loans or
credits are outstanding.
Annual Report 2021
68
Corporate Governance - Remuneration Report
5. Remuneration of the Executive Management
The remuneration of the EM is governed in
section IV of the Company’s articles and in
the Company’s remuneration policy.
With reference to the OaEC the BoD has
decided to have the AGM voting prospec-
tively for the total remuneration of the EM.
Therefore, the AGM as of 29 April 2021 has
voted for remuneration for the fiscal years
2021 and 2022 and maximum amounts of
CHF k 1’600 (fixed) / CHF k 2’800 (variable) for
each year (approval of 100%).
In accordance with the internal processes,
the remuneration paid to EM is proposed by
the NRC and decided by the BoD. It consists
of the following components:
Meeting the annual performance targets at
a 100% gives the following remuneration mix
for the EM:
A. Fixed remuneration
Fixed remuneration for the EM depends on
the responsibilities, market value, qualifi-
cations and experience of the individual
position. It is paid monthly in cash.
B. Variable remuneration
The variable remuneration of the EM is
linked to the achievement of three financial
(70%) and three strategic targets (30%) of
the Group. It ranges from 0 to 200% of the
fixed remuneration upon target achieve-
ment, whereas the highest share of an
individual target is 30% of the total variable
remuneration.
The performance targets are defined by the
BoD as part of the budget approval process
for the upcoming financial year.
Fixed compensation Variable compensation
50% 25% - cash 25% - RSU
Base salary (cash and in kind)
Social charges
Pension benefits
Short-term incentive:
Performance-related
component in cash
(50%)
Long-term incentive:
Performance-related
component in RSU
(50%)
(Rights to) shares of Trifork
Holding AG
Long-term growth of
enterprise value
Alignment of shareholders
interests
Responsibility
Market value
Qualification and experience
Achievement of annual
performance targets
Achievement of annual
performance targets
Recruitment
Retention
Protection
Focus on annual
targets
Focus on sustainable
development
Remuneration
Components
Factors
Goals
Assets
FIXED REMUNERATION VARIABLE REMUNERATION
Annual Report 2021
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Corporate Governance - Remuneration Report
The targets for 2021 were as follows:
Revenue growth (global (25%) and in se-
lected countries (10%))
EBITDA margin – 30%
EBT Labs investments (3-year average)
– 15%
ESG initiatives – 10%
Views on GOTO Youtube channel – 10%
I. SHORT-TERM INCENTIVE
Half of the variable remuneration to the
members of the EM is paid in cash after the
consolidated financial statements have
been audited.
II. LONG-TERM INCENTIVE
Half of the variable remuneration to the
members of the EM is paid in form of restrict-
ed Trifork share units (RSU).
Having the EM to receive a significant part
of its remuneration in the form of RSU is de-
signed to ensure that the incentive system is
consistent with the long-term development
of the company, encourage a management
philosophy which takes due account of risk,
and reflect shareholder interests. One RSU
converts into one share of Trifork Holding AG.
The RSU is calculated based on the weighted
average share price of 3 last trading days of
the financial year.
The RSU are granted on the first day of the
month following the publication of the an-
nual results. A staggered vesting of the RSU
in equal instalments over a period of 3 years
applies, if the members of the EM are em-
ployed with the Group at these vesting dates.
The BoD may, however, lift the restriction on
the transfer of shares allocated under the
share-based payment programme in cer-
tain cases, such as in the event of a change
of control.
C. Social charges and pension
benefits
Remuneration paid to the EM is subject to
social charges and pension benefits ac-
cording to local law. Both parties bear an
equal share. The employee contribution is
included in the remuneration paid (gross
presentation) and the employer contribution
is reported separately.
D. Expenses
Trifork is entitled to reimburse members of
the Executive Management for out-of-pock-
et expenses in the form of actual or lump
sum expense payments in accordance with
tax provisions. This is not considered as
remuneration.
E. Loans and credits
The granting of loans and credits to mem-
bers of the EM is excluded according to art
31 of the Company’s articles. No loans or
credits are outstanding.
F. Contract terms
The contracts of the members of the EM
are concluded for an unlimited term with a
notice period of twelve months.
They include a non-competition clause for
its term and for the CEO for additional twelve
months after the termination. The non-com-
petition terms are not compensated.
6. Related parties
One related party has an ordinary employee
agreement with a Group company and is
compensated for her service.
No loans or credits to related parties granted
or outstanding.
3 days Plan year 1 Plan year Plan year 3 Plan year 3
Grant date
Year end
Vesting date Vesting date A Vesting date F
PriceS
calculation
Vesting period
Result assessment and audit
Shares freely tradeable
Annual Report 2021
70
Corporate Governance - Remuneration Report
7. Disclosure of remuneration to the Board of Directors and
Executive Management and related parties
The AGM as of 29 April 2021 approved the
following maximum remuneration amounts:
Part of remuneration Period CHF k
Remuneration to the BoD AGM 2021 to AGM 2022 600
Fixed remuneration to the EM Financial year 2021 1,600
Variable remuneration to the EM Financial year 2021 2,800
2021
(in CHF k)
Fixed
remuneration Variable remuneration
Remuneration
in kind
Social charges /
pension
benefits Total
Cash (gross) Cash (gross) RSU
Julie Galbo, Chairperson
1
110 - - - - 110
Olivier Jaquet, Vice Chairperson
2/3/8
120 - - - 7 127
Maria Hjorth
4
45 - - - - 45
Lars Lunde
3
40 - - - - 40
Casey Rosenthal
5
40 - - - - 40
Jørn Larsen
6
10 - - - 1 11
Kristian Wulf-Andersen
6
10 - - - 1 11
Board of Directors 375 - - - 9 384
Executive Management 1,155 1,265 266 31 511 3,229
of which: Jørn Larsen (CEO) 694 659 159 16 290 1,818
Members of Executive Management 2
Related parties 8 - - - 1 9
1 Member of NRC (without remuneration)
2 Chairperson of NRC
3 Member of ARC
4 Chairperson of ARC
5 Member of NRC
6 Member of the BoD until 29 April 2021
7 Includes employer contributions to social security for Swiss Members of BoD and EM and pension (BVG) for members of EM
8 Receives an additional annual fee of CHF 50k for his extraordinary contribution to Trifork's customer development in Switzerland
9 As per 1 April 2021, 30,032 RSU were granted to the Executive Management (CEO: 17,983) with a total value of CHF k 581. The costs are allocated evenly over the vesting period of up
to three years.
8. Disclosure of interests
held by the Board of
Directors and Executive
Management
For this disclosure, please refer to Note 14 in
the financial statements of Trifork Holding
AG.
Annual Report 2021
71
Corporate Governance - Remuneration Report
To the General Meeting of Trifork Holding AG, Feusisberg
Report of the statutory auditor
on the remuneration report
We have audited the remuneration report of Trifork Holding AG for the year ended 31 December
2021. The audit was limited to the information according to articles 14–16 of the Ordinance
against Excessive Compensation in Stock Exchange Listed Companies (Ordinance) contained
in section 7 on page 70 of the remuneration report.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation and overall fair presentation
of the remuneration report in accordance with Swiss law and the Ordinance. The
Board of Directors is also responsible for designing the remuneration system and
defining individual remuneration packages.
Auditor’s responsibility
Our responsibility is to express an opinion on the remuneration report. We conduct-
ed our audit in accordance with Swiss Auditing Standards. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the remuneration report complies with Swiss
law and articles 14–16 of the Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures
made in the remuneration report with regard to compensation, loans and credits in
accordance with articles 14–16 of the Ordinance. The procedures selected depend on
the auditor’s judgment, including the assessment of the risks of material misstate-
ments in the remuneration report, whether due to fraud or error. This audit also in-
cludes evaluating the reasonableness of the methods applied to value components
of remuneration, as well as assessing the overall presentation of the remuneration
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Opinion
In our opinion, the remuneration report for the year ended 31 December 2021 of Trifork
Holding AG complies with Swiss law and articles 14–16 of the Ordinance.
Tobias Meyer
Licensed audit expert (Auditor in Charge)
Andreas Forster
Licensed audit expert
Zurich, 16 March 2022
Ernst & Young Ltd
Annual Report 2021 Corporate Governance - Risk Management
72
Risk Management
It is important for the Trifork Group's management to ensure that procedures and
policies are in place to limit exposure to risks associated with its activities.
Risk Management
The internal control and risk management
systems can be divided into five categories:
1. Control environment
2. Risk assessment
3. Control activities
4. Information and communication
5. Monitoring
Control environment
The Executive Management is responsible for
the implementation of efficient controls and
risk management systems. The Executive
Management supervises the implementa-
tion and compliance with the guidelines
and policies established.
The Board of Directors and the Executive
Management continuously evaluate the
potential risks relevant to the Company.
All business units identify annually the risks
that relate directly or indirectly to their area
of business. In this context, risks are defined
as events or tendencies, that could
prevent individual units or Trifork as a whole,
of achieving its objectives.
Risk assessment
Initially, the risks identified in each business
unit are assessed in the individual business
units from a probability and impact per-
spective. The impact is assessed on a num-
ber of factors, including the impact on the
financial accounts, employees, customers,
the environment and reputation.
Subsequently, individual risks are reviewed
by the Board of Directors and/or Executive
Management and assessed in terms of
severity of their impact on each individual
business unit and the Company as a whole.
As part of an annual risk identification and
assessment, business units are required to
plan how they will address and manage any
given risk.
Significant risks are monitored and
assessed on an ongoing basis by the Board
of Directors and/or the Executive
Management based on assessment of
their importance.
Independently of the above, the Board of
Directors reviews annually the areas where
particular risks may exist.
Control activities
Control activities are based on a risk assess-
ment. The purpose of the Group's control
activities is to ensure that the goals, policies,
procedures, etc. adopted by the Board of
Directors are met and to prevent and correct
possible flaws, errors etc. in a timely man-
ner. The Exexutive Management has created
a formal reporting process, which encom-
passes budget reporting and monthly
financial reporting, including deviation and
key ratio reports with monthly updating of
forecast for the rest of the year.
Information and communication
The Board of Directors emphasizes that in
listed companies there is an open form of
communication and that the individuals
know their own role in the internal control
system.
The main risks and internal controls in the
Trifork Group in relation to the financial
reporting process, the Board of Directors’
approach thereto and the initiatives applied
in this context are continuously
communicated within the Group.
Monitoring
Any risk management and control sys-
tem must be continuously monitored and
evaluated to safeguard its effectiveness.
Monitoring consists of continuous and / or
periodic assessments and controls at all
levels in the Trifork Group. The scope and
frequency of controls depends primarily on
the risk
assessment in the individual business areas.
Annual Report 2021
73
The Board of Directors and Executive Board are committed to ensuring sound risk
management at all times. Risk management includes awareness and under-
standing of risk factors, monitoring them on an ongoing basis and ensuring that
procedures and policies are in place to mitigate Trifork’s risk exposure.
The Executive Board has identified the following risks which are not exhaustive
nor listed in order of priority.
Dependency on customers
Trifork’s success depends on its ability to re-
tain customers and win additional work from
new and existing customers.
There is an inherent risk of loosing customers
to our competitors. Further, customers may
decide to insource part of their software
development or outsource to low cost areas.
In addition to retaining existing customers,
our success also depends in large part on
our ability to attract additional work from
new and existing customers. Therefore, our
success is depends on Trifork’s performance
for our existing customers and our ability to
attract new customers.
MITIGATING ACTIONS
Trifork’s dependency on key customers is
mitigated by a low customer concentration
due to the characteristics of Trifork’s cus-
tomer mandates and service level agree-
ments. Individual customers account for a
moderate portion of Triforks consolidated
revenue. In 2021, no customer accounted for
more than 10% of Group revenue.
Furthermore, the increasing importance of
Trifork’s run and repeat stacked business
results in an increasing number of long-term
customer relationships, where entry barriers
for competing service providers are rela-
tively high and the BU leaders have a sound
and timely understanding for potential
disruptions.
Trifork’s internal risk management sys-
tem applies to the risk of dependency on
customers. The risk management system,
as described in this report, is based on
the effective integration and interaction of
Board of Directors, Executive Management
and Business Unit leaders. This assures,
that market and customer information is
received in a timely manner for assessment
and mitigating actions.
Development and implementation of attractive IT services
Our results of operations could be negatively
affected if we are unable to adapt, expand
and develop our IT services and develop
new products and features in response to
changes in technology, customer demand,
or market developments, or if competitors
adapt, expand or develop their IT services
more successfully than we do.
The market for IT and business services is
characterized by intense competition, rapid
technological change, frequent new product
introductions and technological improve-
ment. Trifork’s future success depends on its
ability to continue to develop, market and
implement IT services that are attractive,
timely and cost-efficient for existing and
new customers.
MITIGATING ACTIONS
The Inspire phase of our full circle go-to-
market model includes our GOTO conferenc-
es, the goal of which is to foster inspiration
and provide an opportunity for validation
and feedback on new technology ideas. In
addition, Trifork design thinking teams serve
as a bridge to the Build phase.
Trifork has been active for more than 20
years in co-founding and investing in tech
start-up companies that develop innova-
tive software solutions. In the process of
working with start-ups, Trifork gains valuable
know-how from their technological devel-
opment, ensuring that it becomes familiar
with emerging disruptive technologies at an
early stage.
Trifork’s internal risk management system
applies to the lack of development and im-
plementation of attractive IT services.
Corporate Governance - Risk Management
Annual Report 2021
74
Corporate Governance - Risk Management
Acquisitions and Labs investments
Trifork may not be successful at identifying,
acquiring or integrating other businesses or
technologies and its estimates and assess-
ments of synergies and earnings potential
in acquired companies may not live up to
expectations.
In addition, Trifork has co-founded and
invested in numerous startup companies
through the Trifork Labs segment and may
incur substantial losses on such investments,
and there can be no assurance that the
strategic rationale underlying such invest-
ments are realized.
MITIGATING ACTIONS
Strategic acquisition targets are most often
relatively small (10-50 employees), which
fits well with Trifork’s Teal organization.
Identification and assessment of opportuni-
ties in target companies is facilitated by our
GOTO conferences, Trifork’s brand recogni-
tion, direct search and other factors. Trifork
aims at acquiring smaller companies, where
the selection of targets is larger, and further
develop and grow the companies after
integration.
Trifork prefers to keep the founders and
management of the acquired compa-
nies operationally involved and potentially
invested as minority shareholders to align
interests and facilitate the achievement of
its strategic goals.
Trifork Labs investments are minority invest-
ments only. They most often take place with
Trifork as co-founder or at a very early stage
and may include Trifork’s participation in
future financing rounds. With more than 20
active Labs investments as of the end of 2021,
the loss of strategic leverage (R&D, estab-
lishment of long-term partnerships, etc.) and
financial value is mitigated with diversifica-
tion and balanced investments in the active
startups.
Access and retention of talented employees
Our business depends on the performance
of our employees. Our ability to attract,
engage, maintain and develop the most
talented people is critical to our business.
In addition, our «build» business is charac-
terized by a limited scalability and therefore
requires even more talented employees as
the business grows as a result of new or ex-
isting customers. Our search for talent faces
a scarce supply of potential new employees
and an imminent risk that current employ-
ees will leave for a competitor, a customer or
other organizations. In addition, the scarcity
of talented people in next-gen software
development relative to the increasing de-
mand for their skills, result in salary inflation,
that Trifork may not be able to pass on to its
customers.
MITIGATING ACTIONS
Trifork’s GOTO conferences and our YouTube
video channel and its closeness to the lead-
ing universities in the key geographic areas
supports recruitment and retention.
Trifork strengthens its culture to promote
next-gen capabilities by continued focus on
developing our employees’ technical skills
through education, allowing experimenta-
tion and ensuring inspiration through the
tasks and challenges they are given. This
supported by advancing the Teal organ-
izational model, where we ensure a flat
hierarchy, unbureaucratic way of working
and distribute responsibility throughout the
organization. We are structured in several
smaller business units that have their own
community and leadership. We continuously
try to be the best place to work by making
room for employees to take initiative.
We believe that one of the most important
factors for our employees is that they are
challenged with interesting work tasks and
get to use modern technologies in building
solutions for our customers.
Employee retention is further facilitated by
an attractive RSU plan, that has been broad-
ened since the IPO in 2021.
Strategic partnerships
Strategic partnerships are an integral part
of Trifork’s value proposition, and if such
partners decide not to engage with Trifork in
the future, it could have a material adverse
effect on Trifork's business, financial condi-
tion and/or results of operations. There can
be no assurance that the current strategic
partnerships will continue to be available.
Further, new opportunities to enter into stra-
tegic partnerships may not present them-
selves to Trifork.
MITIGATING ACTIONS
We seek to strengthen and grow our re-seller
relationships and operational partnerships
with leading companies in the technology
industry, including Apple, Google Cloud,
Microsoft and SAP, and operational partner-
ships with major technology companies and
important Silicon Valley start-ups. We focus
on being the best possible partner with deep
technical knowledge on the technologies
that they provide.
In addition, we are selecting our Labs in-
vestments according to the potential of the
Labs company developing into a long-term
partner of Trifork where Trifork use the tech-
nologies developed in providing solutions to
our customers.
Annual Report 2021 Corporate Governance - Risk Management
75
Contract management and reputational risks
Errors, defects and failures in the prod-
ucts delivered by Trifork may result in legal
claims by customers, including claims for
material breach of the underlying customer
contracts.
Trifork’s relationship with customers de-
pends on its reputation, and negative media
coverage and public scrutiny may damage
Trifork’s reputation and limit demand for the
Group's products and services
Trifork’s brand and reputation as a leading
provider of next-gen software solutions are
important corporate assets that help drive
demand for Trifork’s products and differen-
ciate us from our competitors. However, the
brand and reputation can be damaged if
defects, deficiencies, delays or failures are
discovered in the products or services pro-
vided to our customers.
MITIGATING ACTIONS
Trifork is focusing on delivering quality
software by using continuous tests in the
development process of software solutions.
We also focus on ongoing alignment of the
expectations to functionality and deliveries
during the development process in order to
keep alignment between the development
teams and customers.
Most often larger solutions are broken
down into smaller work-orders with specific
deliveries defined in scopes of maximum 3
months. In agile development processes this
ensures an ongoing dialogue and prioritiza-
tion of the most important functionalities to
implement - and at the same time it makes
the risk of failures lower when new func-
tionality is taken into production in smaller
batches.
The day-to-day responsibility is with the BU
leaders, who have instructions and thresh-
olds on when to escalate incidents.
Trifork’s internal risk management system
provides for proper monitoring and mitiga-
tion contract management and reputational
risks.
Infrastructure and Cyber Protection
Any disruption in data centre operations
or failure of telecommunications systems
could harm the Trifork’s ability to deliver its IT
services, damage its reputation or otherwise
have material adverse effect on its business.
In addition, Trifork may not be able to protect
itself or its IT solutions from cyber threats
that have the potential to significantly
disrupt Trifork and its customers' businesses
and cause reputational damage.
MITIGATING ACTIONS
In the business area Cyber protection Trifork
has specialized in using security tools and
developing solutions to protect infrastruc-
tures and systems against cyber threads. We
offer managed security solutions as services
to our customers and use these to manage
our own in-house security.
With highly educated specialists in our SOC,
Trifork monitors cyber security for compa-
nies in 24/7 operations and identify and miti-
gate security incidents when they happen.
Triforks decentralized structure is seen as
a strength since a diversity in the use of
systems will make a potential impact on
one system less severe than if all units were
using the same system.
Privacy and Data Protection
The Group is subject to data protection laws,
privacy requirements and other regulato-
ry restrictions in the various jurisdictions
in which it operates. Trifork may come into
possession of, act as a processor of or
otherwise handle sensitive personal data,
including health and financial data, for
example as a result of our focus on Digital
Health and FinTech. This information needs
to be handled in compliance with such laws
and regulations. Privacy and data protection
compliance. Breaches or failure to protect
confidential and proprietary information
could damage Trifork’s reputation and ex-
pose it to litigation.
MITIGATING ACTIONS
Trifork’s internal risk management system
provides for monitoring and mitigation of
privacy and data protection risks.
Trifork is committed to be in full compli-
ance with the legal and regulatory require-
ments in all regions and across all activi-
ties. Employees are educated and tested
accordingly and must comply with Trifork’s
Privacy and Data Protection policy. Each BU
leader is responsible that all members of
the BU comply with the policy and additional
requirements.
Our central legal team educates the BU
leaders about the relevant requirements and
controls and tracks proper application.
Annual Report 2021
77
Environmental Social Governance (ESG)
ESG & Key Figures
At Trifork, we are driven by our mission to
change the world with software, and sus-
tainability is an integral element for how we
operate as a business. Trifork’s engagement
with ESG is not only a focus area in relation to
the engagements we have with our custom-
ers. It's also an integrated part of how we
work internally and reflected in the invest-
ments we make.
On the environmental front, Trifork in 2021
has continued the focus on reducing our
climate footprint, and we are currently on
a journey to build the ultimate sustainable
office building – the Trifork Smart Building.
The construction is a result of Trifork’s phi-
losophy on developing software inspired
by and in collaboration with our customers,
and we expect several smart buildings to
be built in the coming years. Moreover, our
investments in innovative technology and
clean-tech startups through our Trifork Labs
business, in 2021 has included an invest-
ment in the company DRYP - a company
that develops sensors and systems that can
provide important information on the flow
of water in our environment. Additionally,
Trifork is a sponsor of the Ocean Race
where we together with the Ocean Race
organization and the stop-over cities raise
awareness on ocean pollution. We have also
worked together with and made a donation
to Elkhorn Marine Conservancy, which is a
is a non-profit organization dedicated to
enhancing the resilience and local steward-
ship of Antigua's marine ecosystems through
restoration, collaborative management, and
conservation.
For Trifork, diversity is key, and it is essential
that we as a company provide equal oppor-
tunity for people of all ages, genders, nation-
alities, religions, cultures, skin color, political
opinions and sexual preferences.
People are at the centre of Trifork - both as
the developers creating software and as
the ultimate end-users using the software.
The curiosity of people is a part of the Trifork
DNA, and we are continuously working with
thought leaders in the tech world. As a part
of this, Trifork provides the GOTO universe,
which consists of conferences, a book club
and one of the worlds largest YouTube tech
channels, where we seek to inspire and mo-
tivate continuous learning. Our tech channel
is available and free to use for everyone in
the world to get insights into new technol-
ogies. In the light of COVID, we managed to
convene two successful GOTO conferences
and look forward to continue our mission in
2022.
In 2021, Trifork became a participant of the
UN Global Compact, which means that we
will strengthen our existing focus on the 10
principles of the UN Global Compact and the
17 UN Sustainable Development Goals.
The Trifork ESG report 2021 entails an in-
depth walk through of our ESG commitments
and communicates our progress and ESG
visions. Please refer to:
https://investor.trifork.com/statutes/
Key figures Unit 2021
Environment
Energy consumption kWh per FTE 4,310
Renewable energy share % 77.3%
Water consumption m
3
per FTE 4.8
Social
Average full-time employees FTE 880
Employee gender diversity f/m 20.7%/79.3%
Leader gender diversity f/m 27.3%/72.7%
Sickness absence % 2.4%
Employee turnover % 15.6%
Governance
Gender diversity BoD f/m 40.0%/60.0%
Attendance at BoD meetings % 99.1%
Elkhorn Marine
Conservancy
Learn more
about the work
COMPANY
Annual Report 2021
78
Environmental Social Governance (ESG)
Trifork supports restoring and conserving
Antigua’s marine ecosystems
Coral reefs continue to decline globally
and threats including pollution, overfish-
ing, habitat destruction, disease, and cli-
mate change are ever-increasing. Being
the breeding ground for several endan-
gered species of fish whilst protecting the
coasts against erosion, the coral reefs
are as of now a widespread problem.
Part of reviving Antigua’s vital and
degraded marine ecosystems
In Trifork we love the ocean, which is why
we want to take an active stand and pave
the way for a clean thriving ocean floor
– full of life. To unleash the full potential,
we have joint forces with the non-profit
organization Elkhorn Marine Conservancy,
because of their remarkable results in
coral reef restoration. They establish
underwater coral nurseries, by collect-
ing and planting small coral fragments,
allowing them to grow in protected con-
ditions. Elkhorn’s mission is to enhance
the resilience and local stewardship of
Antigua’s marine ecosystems through
restoration, collaborative management,
and conservation.
Jørn Larsen, Trifork CEO:
“Elkhorn is a remarkable and ambitious
project, as much as we love and use the
ocean, we also want to be part of main-
taining it and making sure it will be there
for our grandkids. Our partnership with
Elkhorn Marine Conservancy, helps us be
part of making that a reality. We encour-
age anybody who loves the sea as much
as us to support the mission of Elkhorn.”
Arthur Gosnell - Chairman of the board,
Elkhorn Marine Conservancy:
“The collaboration between Trifork and
the EMC has expanded our thinking not
only with respect to coral restoration, but
to other conservation endeavors as well.
Trifork has awareness and understanding
of conservation models, particularly from
Scandinavia and the Mediterranean, that
are extremely interesting and could be
potentially very significant for Antigua.”
Conserving life below water
Sustainability is at the core of the way
Trifork approach to business. Our efforts
are categorized within three main areas:
Environment, Social and Governance
(ESG). For more detailed information on
this, read our 2021 ESG report that can be
found on investor.trifork.com.
In 2021, Trifork became a participant of
the UN Global Compact, reinforcing our
commitment to the ten principles of
human rights, labour rights, anti-corrup-
tion and the environment. We support
the UN’s Sustainable Development
agenda by using the UN’s Sustainable
Development Goals (SDG's) as a refer-
ence point for our sustainability ap-
proach and activities.
Our partnership with Elkhorn Marine
Conservancy also enforces our active
commitment to Conserve and sustaina-
bly use the oceans, seas and marine re-
sources for sustainable development. We
highly encourage everyone who love the
sea as much as we do to support Elkhorn.
We highly encourage
everyone who love the
sea as much as we do
to support Elkhorn.
CASE STORY
“Through our partnership with Trifork, we're developing
innovative solutions to complex environmental problems
and spreading the word about marine conservation and
restoration. We're beyond excited about Trifork's support
and the initiatives we will be working on together.”
Dr. Molly Wilson - Lead Scientist
Elkhorn Marine Conservancy
Annual Report 2021
80
Shareholders
The Trifork Holding AG share
The Trifork Holding AG share was priced
at DKK 303.50 on 31 December 2021, which
represents an increase of 102% compared to
the IPO price of DKK 150 per share. During the
same time period, the OMX Nordic Mid Cap
index increased by 14.8%. The average daily
trading volume from the first trading day on
27 May 2021 to 31 December 2021 was 30,064
shares. The lowest closing price amounted
to DKK 175.00 on 27 May 2021, the company's
first trading day on Nasdaq Copenhagen,
and the highest closing price was DKK 303.50
on 30 December 2021. Trifork’s 2021 year end
market capitalization amounted to DKK 5.993
billion, equivalent to approximately EUR 806
million.
The Initial Public Offering
Trifork successfully completed an Initial
Public Offering (IPO) on 27 May 2021 and
listed its shares on Nasdaq Copenhagen. A
total of 8,171,762 shares were sold at the IPO
price of DKK 150, resulting in a gross transac-
tion size of DKK 1.23 billion (EUR 165 million).
The IPO attracted a substantial interest from
Danish retail investors and from Danish and
international institutional investors, including
Qualified Institutional Buyers in the USA. As
part of the IPO, a group of existing share-
holders, including GRO Holding I ApS, Kresten
Krab Holding ApS, Jørn Larsen and certain
other shareholders, sold 7,231,529 shares.
In addition, Trifork sold 940,233 shares in a
capital increase resulting in net proceeds
of approximately DKK 129 million (EUR 17.4
million).
Share capital and ownership
On 31 December 2021, Trifork had a share
capital of CHF 1,974,489.90 consisting of
19,744,899 shares with a nominal value of
CHF 0.10.
At that date, Trifork had more than 7,100
shareholders. Major shareholders, based
on regulatory announcments and volun-
tary disclosure at the end of 2021, were Jørn
Larsen, Co-founder and CEO of Trifork, with
19.5% ownership of shares outstanding, Ferd
AS with 10.0%, Kresten Krab Thorup with 6.6%
and Chr. Augustinus Fabrikker Akts. with 5.1%.
GRO Holding I ApS sold its entire sharehold-
ing of Trifork shares in connection with the
IPO.
At the end of 2021, Trifork held 45,019 treasury
shares that may be used for employee com-
pensation including its RSU plan, financing of
acquisition and other purposes.
TRIFORK SHARE PRICE COMPARED TO
OMX NORDIC MID CAP INDEX
Market information
Price at 31 December 2021 (DKK) 303.50
Price at 31 December 2021 (EUR) 40.81
Price high (DKK) 303.50
Price low (DKK) 175.00
IPO share price on 27 May 2021 (DKK) 150.00
Market value at 31 December 2021 (DKK) 5.993 billion
Market value at 31 December 2021 (EUR) 806 million
Share performance since IPO to 31/12/2021 102%
50'
100'
15 0'
200'
250'
0
50
100
150
200
250
300
350
27 .0 5 .20 21
01.06.2021
06.06. 2021
11.0 6.20 2 1
16.06.202 1
21. 06 .2 0 21
26 . 06.2 0 21
01.07.2 02 1
06.0 7.2 02 1
11.0 7.2 0 21
16.07.2 021
21. 07 .20 2 1
26 . 07 .20 21
3 1. 07 . 20 2 1
05.08. 2021
10.08.2021
15.08.2021
20.08.2021
25.08.2021
3 0. 08 . 2 0 2 1
04.09. 2021
09.09. 2021
14 .0 9 .20 21
19 .0 9 .20 21
24 .0 9 .2 0 21
29 .0 9 .2 0 21
0 4 .1 0. 20 21
09.10.2021
14.10.202 1
19.10.202 1
24 .10 .2 0 21
29 .10 .2 0 21
0 3. 11. 20 21
08.11.202 1
13. 11.2021
18.11.2021
23 .1 1 .2 0 21
28 .11 . 20 21
03.12.2021
0 8 .1 2.2 0 21
13. 1 2.2 0 21
18 .12. 20 21
23 .1 2 .20 2 1
28.12.2021
DKK
Volume
IPO PRICE
Volume Trifork Share Price OMX Nordic Mid Cap Index
53%
22%
10%
4%
4%
7%
Annual Report 2021 Shareholders
81
Dividends
According to Trifork’s dividend policy, the
Board of Directors intends to retain a signif-
icant part of Trifork’s available financial re-
sources and earnings generated, to support
the organic and acquisitive growth of the
Group. Accordingly, it proposes a dividend
of EUR 0.38 per share for the financial year
2021, which corresponds to 25% of the earn-
ings per share in 2021. For the financial year
2020, Trifork paid a dividend of EUR 0.58 per
share, which was 25% of the 2020 earnings
per share, taking into account the gain from
the sale of Trifork's stake in the Trifork Labs
company Humio.
Dividends will be declared in Swiss Francs.
For investors holding their shares in the
Danish infrastructure through VP Securities,
dividends will be paid in Danish Kroner. The
exchange rate will be determined at the time
of the resolution to distribute dividends by
the Annual General Meeting. For Investors
holding their shares in the Swiss infrastruc-
ture through SIX SIS, dividends will be paid in
Swiss Francs.
Annual General Meeting
Trifork’s Annual General Meeting will be held
virtually on 20 April 2022.
Investor relations
Trifork aims to provide full transparency and
engage in an open dialogue with investors
and research analysts about the compa-
ny’s business and financial performance.
Trifork seeks to provide
all investors with time-
ly information on our
investor website, where
interested parties also
can subscribe to Trifork’s
distribution of company
announcements.
Shareholder Structure
On 31 December 2021, Trifork had more
than 7,100 shareholders. 53% of the
shares were held in Denmark, followed
by Switzerland with 22%, Norway with 10%
and USA and Ireland with 4% each.
The four largest shareholders accounted
for 41.2% of the total number of shares
outstanding.
Shareholder Overview
SHAREHOLDER STRUCTURE BY COUNTRY
SHARE INFORMATION
Stock exchange Nasdaq CPH A/S
Index Mid Cap
Share capital (CHF) 1,974,489.90
Number of shares 19,744,899
Nominal value (CHF) 0.10 per share
ISIN code CH1111227810
Trading symbol TRIFOR
Treasury shares at 31 December 2021 45,019
FINANCIAL CALENDAR
16 March 2022 Annual and Q4 2021 report
20 April 2022 Annual General Meeting
4 May 2022 Q1 2022 report
18 August 2022 Q2/Half-year 2022 report
2 November 2022 Q3 2022 report
Denmark
Switzerland
Norway
Irelands
US
ROW
Statement by the Board of
Directors and Executive Management
Today, the Board of Directors and the
Executive Management have considered
and approved the annual report of Trifork
Holding AG for the financial period 1 January
to 31 December 2021.
The consolidated financial statements are
prepared in accordance with International
Financial Reporting Standards and the re-
quirement of Swiss law.
The parent company financial statements
are prepared in accordance with the Swiss
Financial Statements Act.
In our opinion, the consolidated financial
statements give a true and fair view of the
Group’s financial position on 31 December
2021 and of the results of the Group’s opera-
tions and cash flows for the financial period
1 January to 31 December 2021.
In our opinion, the parent company financial
statements for the period from 1 January to
31 December 2021 comply with Swiss law and
the company’s articles of incorporation.
In our opinion, the management’s review in-
cludes a true and fair review of the develop-
ment in the Group’s operations and financial
matters, the results for the period and the
parent company’s financial position, and the
position as a whole for the entities included
in the consolidated financial statements, as
well as a review of the more significant risks
and uncertainties faced by the Group and
the parent company.
We recommend the annual report be ap-
proved at the Annual General Meeting.
Schindellegi, 16 March 2022
Julie Galbo Chairperson
Olivier Jaquet Vice-Chairperson
Maria Hjorth Board member
Lars Lunde Board member
Casey Rosenthal Board member
Jørn Larsen CEO
Kristian Wulf-Andersen CFO
Annual Report 2021
82
09
Annual Report 2021
84
Trifork Group Consolidated Financial Statements
Contents
Consolidated Income Statement ........................................................................................................85
Consolidated Statement of Comprehensive Income
.............................................................. 85
Consolidated Statement of Financial Position
............................................................................. 86
Consolidated Statement of Changes in Shareholders' Equity
............................................ 87
Consolidated Statement of Cash Flows
..........................................................................................88
Notes to the Consolidated Financial Statements
.......................................................................89
Statutory Auditor's Report
....................................................................................................................... 136
Consolidated financial statements
Annual Report 2021
85
Trifork Group Consolidated Financial Statements
Consolidated Income Statement
for the year ended 31 December
(in EURk) Notes 2021 2020 (in EURk) 2021 2020
Revenue from contracts with customers 2.1/2 158,525 115,358 Net income 32,696 44,658
Rental income 473 320
Other operating income 4.2 22,923 770 Items that may be reclassified to profit or loss, after tax
Operating income 181,921 116,448 Currency translation adjustment for foreign operations 3,006 36
Currency translation adjustment reclassified to profit or loss - 1 -
Cost of goods and services purchased 2.3 -29,294 -22,751
Personnel costs 3.1 -87,702 -64,149 Items that will not be reclassified to profit or loss, after tax
Other operating expenses 2.4 -17,549 -12,573 Remeasurements of the net defined benefit liabilities 339 -362
Operating expenses -134,545 -99,473
Other comprehensive income 3,344 -326
Earnings before financial items, tax, depreciation
and amortization
Total comprehensive income 36,040 44,332
Depreciation, amortization and impairment 2.5 -11,769 -10,567
Earnings before financial items and tax 35,607 6,408 Attributable to shareholders of Trifork Holding AG 32,618 42,934
Attributable to non-controlling interests 3,422 1,398
Fair value adjustments on investments in Trifork Labs 5.1 5,022 41,259
Share of results from associated companies 4.5 114 15
Other financial income 2.6 145 882
Other financial expenses 2.6 -2,038 -1,474
Result on foreign exchange 2.6 -2,194 -48
Financial result 1,049 40,634
Earnings before tax 36,656 47,042
Income tax expense 2.7 -3,960 -2,384
Net income 32,696 44,658
Attributable to shareholders of Trifork Holding AG 29,349 43,216
Attributable to non-controlling interests 3,347 1,442
Earnings per share of Trifork Holding AG, basic (in EUR) 2.8 1.52 2.33
Earnings per share of Trifork Holding AG, diluted (in EUR) 2.8 1.52 2.33
Consolidated Statement of Comprehensive Income
for the year ended 31 December
Annual Report 2021
86
Trifork Group Consolidated Financial Statements
Consolidated Statement of Financial Position
for the year ended 31 December
Assets
(in EURk) Note 2021 2020
Liabilities and shareholders’ equity
(in EURk) Note 2021 2020
Intangible assets 4.6 76,288 72,990 Share capital 7.1 1,663 1,562
Right-of-use assets 4.7 23,295 21,470 Treasury shares 7.1 -994 -524
Property, plant and equipment 4.8 9,117 6,144 Retained earnings 107,696 81,043
Investments in Trifork Labs 5.1 47,259 19,755 Currency translation adjustment 1,433 -1,587
Investments in associated companies 4.5 21 15
Equity attributable to shareholders of
Trifork Holding AG
Other non-current financial assets 4.9 2,897 3,956
Deferred tax assets 2.7 193 224 Non-controlling interests 8.2 938 2,702
Total non-current assets 159,070 124,554 Total shareholders' equity 110,736 83,196
Trade receivables 6.1 36,066 25,226 Non-current financial liabilities 7.3 60,405 66,879
Contract assets 6.1 1,883 2,107 Other non-current liabilities 3.3 2,670 6,119
Other current financial assets 4.9 343 340 Deferred tax liabilities 2.7 5,264 5,580
Other current receivables 825 559 Total non-current liabilities 68,339 78,578
Prepaid expenses 2,849 2,260
Investments in Trifork Labs 5.1 - 56,106 Current financial liabilities 7.3 35,753 40,297
Cash and cash equivalents 44,628 17,957 Trade payables 7,262 4,754
Total current assets 86,594 104,555 Contract liabilities 6,726 4,015
Current tax liabilities 2,322 2,481
Assets 245,664 229,109 Other current liabilities 6.2 14,526 15,788
Total current liabilities 66,589 67,335
Total liabilities 134,928 145,913
Liabilities and shareholders’ equity 245,664 229,109
Annual Report 2021
87
Trifork Group Consolidated Financial Statements
Consolidated Statement of Changes in Shareholders' Equity
for the year ended 31 December
(in EURk) Share capital Treasury shares
Retained
earnings
Currency transla-
tion adjustment
Equity attributable
to the shareholders
of Trifork Holding AG
Non-controlling
interests Total equity
1 January 2020 1,562 -1,250 57,121 -1,676 55,757 1,577 57,334
Net income - - 43,216 - 43,216 1,442 44,658
Other comprehensive income - - -362 81 -281 -45 -326
Total comprehensive income - - 42,854 81 42,935 1,397 44,332
Dividends - - -905 - -905 -961 -1,866
Transactions with treasury shares - -2,050 228 - -1,822 - -1,822
Additions from business combinations - 2,776 -2,391 - 385 4,967 5,352
Changes in liabilities towards non-controlling interests - - -15,864 8 -15,856 -4,278 -20,134
31 December 2020 1,562 -524 81,043 -1,587 80,494 2,702 83,196
Net income - - 29,349 - 29,349 3,347 32,696
Other comprehensive income - - 339 2,930 3,269 75 3,344
Total comprehensive income - - 29,688 2,930 32,618 3,422 36,040
Capital increase 101 - 18,845 - 18,946 - 18,946
Costs related to capital increase -1,559 - -1,559 - -1,559
Dividends - - -10,871 - -10,871 -2,147 -13,018
Transactions with treasury shares - -977 2 - -975 - -975
Additions from business combinations
Disposal / loss of control of a Group company
Acquisition of non-controlling interests, net - 496 -1,735 - -1,239 -294 -1,533
Changes in liabilities towards non-controlling interests - - -9,876 90 -9,786 -2,137 -11,923
Share-based payments - - 247 - 247 - 247
31 December 2021 1,663 -994 107,696 1,433 109,798 938 110,736
Annual Report 2021
88
Trifork Group Consolidated Financial Statements
Consolidated Cash Flow Statement
for the year ended 31 December
(in EURk) Notes 2021 2020
Net income 32,696 44,658
Adjustments for:
Depreciation, amortization and impairment 2.5 11,769 10,567
Non-cash other operating income -22,268 -350
Fair value adjustment from investments in Trifork Labs 5.1 -5,022 -41,259
Share of result from associated companies 4.5 -114 -15
Other financial result 2.6 4,087 640
Income taxes 2.7 3,960 2,384
Adjustment for other non-cash items 217 776
Changes in net working capital -9,607 3,680
Payment to Employees' Holiday Funds 3.3 -3,289 -
Income taxes paid -4,654 -3,294
Cash flow from operating activities 7,775 17,787
Acquisition of Group companies, net of cash acquired 4.1 -1,630 -26,201
Acquisition of Group companies, settlement of contingent
consideration liabilities
4.3 -216 -
Sale of Group companies, net of cash disposed 4.2 2,063 -
Purchase of intangible assets 4.6 -756 -1,306
Sale of intangible assets 150 -
Purchase of property, plant and equipment 4.8 -4,946 -2,108
Sale of property, plant and equipment 250 127
Dividends received from associated companies 4.5 107 41
Purchase of investments in Trifork Labs 5.1 -5,645 -2,678
Sale of investments in Trifork Labs 5.1 58,756 728
Dividends received from investments in Trifork Labs 5.1 688 -
Loans granted -775 -357
Repayment loans granted 1,478 151
Interest received 131 87
Cash flow from investing activities 49,655 -31,516
(in EURk) Notes 2021 2020
Proceeds from borrowings 7.3 4,925 36,547
Repayment of borrowings 7.3 -32,012 -1,511
Payment of lease liabilities 7.3 -4,986 -3,926
Proceeds from capital increase 18,946 -
Costs related to capital increase -1,559 -
Interest paid -1,549 -1,561
Acquisition of non-controlling interests, net 4.3/8.2 -2,481 -
Purchase of treasury shares 7.1 -727 -7,283
Sale of treasury shares 7.1 55 5,477
Dividends paid -13,018 -1,866
Cash flow from financing activities -32,406 25,877
Exchange differences on cash and cash equivalents 1,647 -143
Change in cash and cash equivalents 26,671 12,005
Cash and cash equivalents at the beginning
of the period
Cash and cash equivalents at the end of the period 44,628 17,957
Annual Report 2021
89
Trifork Group Consolidated Financial Statements
SECTION 1
SECTION 2
SECTION 3
SECTION 4
Basis of preparation 91
1.1 General information ........................................................................91
1.2 Changes in accounting policies .................................................. 92
1.3 Management estimates, assumptions and judgments ..........93
Results for the year 94
2.1 Segment information .....................................................................94
2.2 Revenue from contracts with customers ....................................96
2.3 Cost of goods and services purchased ...................................... 97
2.4 Other operating expenses ............................................................ 97
2.5 Depreciation, amortization and impairment ............................. 97
2.6 Other financial result .....................................................................98
2.7 Income taxes ...................................................................................99
2.8 Earnings per share ........................................................................102
Compensation 103
3.1 Personnel costs ..............................................................................103
3.2 Share-based payments ...............................................................104
3.3 Pension and similar obligations .................................................. 104
Capital investments 107
4.1 Acquisition of businesses .............................................................107
4.2 Businesses disposed/loss of control ...........................................110
4.3 Contingent consideration liabilities – Financial instruments ...111
4.4 Redemption amount of put-options ...........................................112
4.5 Investments in associated companies .......................................112
4.6 Intangible assets ............................................................................113
4.7 Right-of-use assets ........................................................................116
4.8 Property, plant and equipment .................................................... 117
4.9 Other financial assets .................................................................... 118
The notes are grouped into eight sections related to key areas. The sections contain the relevant
financial information as well as a description of the significant accounting estimates, assumptions
and judgments and the accounting policies applied for the topics of the individual notes.
Contents
Notes to the Consolidated Financial Statements
Annual Report 2021
90
SECTION 5
SECTION 6
SECTION 7
SECTION 8
Investments in Trifork Labs 119
5.1 Investments in Trifork Labs – Financial instruments .................119
Working capital items 121
6.1 Trade receivables and contract assets ...................................... 121
6.2 Other current liabilities .................................................................122
Capital structure and financing 123
7.1 Shareholders’ equity .....................................................................123
7.2 Financial instruments ...................................................................124
7.3 Financial liabilities ......................................................................... 127
7.4 Guarantees and pledged assets ................................................ 127
7.5 Financial risk management .........................................................128
Other disclosures 131
8.1 Related parties ................................................................................131
8.2 Non-controlling interests ............................................................. 132
8.3 Government grants ....................................................................... 134
8.4 Fees to independent Group auditor ...........................................134
8.5 Events after the reporting date ...................................................134
8.6 Trifork Group companies .............................................................. 135
Notes to the Consolidated Financial Statements
Contents
Trifork Group Consolidated Financial Statements
1
Annual Report 2021
91
Section 1 - Basis of preparation
NOTE 1.1
General information
Trifork Holding AG (“the Company”)
is a company incorporated in
at Neuhofstrasse 10, 8834 Schindellegi
(Feusisberg).
The Company is the parent company of
Trifork Group (“Group”).
The Group's principal activities are divid-
ed into two segments:
“Trifork” focuses on software develop-
“Trifork Labs” focuses on investments
These consolidated financial statements
of the Trifork Group have been pre-
pared in accordance with International
Financial Reporting Standards (IFRS)
issued by the International Accounting
Standards Board (IASB).
The historical cost principle is applied,
except for certain financial instruments
(investments in Trifork Labs, contingent
consideration liabilities).
The consolidated financial statements
are presented in Euro and all amounts
are in thousand (EURk), unless other-
wise stated. Due to rounding, numbers
presented throughout this report may
not add up precisely to the totals and
percentages may not precisely reflect
the absolute figures.
Apart from changes due to the imple-
mentation of new or amended stand-
ards and interpretations as described
in note 1.2, accounting policies as
described below and in the respective
notes are unchanged from last year.
The registered shares of the Company
are traded on the NASDAQ Copenhagen.
§
Accounting Policies
The overall accounting policies applied
to the consolidated financial statements
as a whole are described below. The ac-
counting policies related to specific line
items are described in the notes to which
they relate. The description of accounting
policies in the notes forms part of the
overall description of Trifork's accounting
policies:
2.2 Revenue from contracts with
customers
2.3 Cost of goods and services
purchased
2.7 Income taxes
3.1 Personnel costs
3.2 Share-based payments
3.3 Pension and similar
obligations
4.1 Acquisition of businesses
4.2 Business disposed/loss of
control
4.4 Redemption amount of
put-options
4.5 Investments in associated
companies
4.6 Intangible assets
4.7 Right-of-use assets
4.8 Property, plant and
equipment
4.9 Other financial assets
5.1 Investments in Trifork Labs
6.1 Trade receivables and
contract assets
7.1 Shareholders equity
7.2 Financial instruments
7.3 Financial liabilities
Consolidation
The consolidated financial statements
are prepared based on the financial
statements of Trifork Holding AG and its
subsidiaries as of 31 December 2021, all
of which are prepared in accordance
with uniform accounting principles. The
consolidated financial statements of the
Trifork Group include all companies in
which the Group holds more than 50% of
voting rights, or which it controls in some
other way.
The list of the principal subsidiaries is
provided in the Note 8.6 Trifork Group
companies.
Changes in the scope of consolidation
are disclosed in Notes 4.1 Acquisition
of businesses and Note 4.2 Businesses
disposed/loss of control.
All assets and liabilities, equity, income,
expenses and cash flows relating to
transactions between Group companies
are eliminated in full on consolidation.
SECTION 1
Basis of
preparation
This section introduces the general
accounting policies and significant ac-
counting estimates, assumptions and
judgments of the Trifork Group.
The detailed description of account-
ing policies and significant estimates,
assumptions and judgments related to
reported amounts is presented in the
respective notes.
The purpose is to provide transparen-
cy on the disclosed amounts and to
describe the relevant accounting policy,
and significant estimates, assumptions
and judgments for each note.
Annual Report 2021
92
Section 1 - Basis of preparation
NOTE 1.1
General information (continued)
Foreign currencies
The Group's consolidated financial state-
ments are presented in EUR, which is the
primary currency for the Group's activities.
The parent company's functional currency
is CHF.
For each entity, the Group determines the
functional currency and items included in
the financial statements of each entity are
measured using that functional currency.
TRANSACTIONS AND BALANCES
Transactions in foreign currencies are
initially recorded by Group entities at their
respective functional currency spot rates
at the date the transaction first qualifies for
recognition.
Monetary assets and liabilities denominated
in foreign currencies are translated at the
functional currency spot rates at the report-
ing date.
Differences arising on settlement or trans-
lation of monetary items are recognized in
profit or loss with the exception of monetary
items that are considered as part of the
Group's net investment in a foreign opera-
tion. These are recognized in OCI until the net
investment is disposed of, at which time, the
cumulative amount is reclassified to profit
or loss.
Exchange rates at period end Average exchange rates for the period
Unit 2021 2020 2021 2020
DKK 1 0.1345 0.1344 0.1345 0.1341
CHF 1 0.9680 0.9211 0.9250 0.9345
GBP 1 1.1901 1.1073 1.1629 1.1253
USD 1 0.8829 0.8143 0.8454 0.8776
Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions.
Non-monetary items measured at fair value
in a foreign currency are translated using
the exchange rates at the date when the fair
value is determined. The gain or loss arising
on translation of non-monetary items meas-
ured at fair value is treated in line with the
recognition of the gain or loss on the change
in fair value of the item.
TRANSLATION OF FOREIGN OPERATIONS
On consolidation, the assets and liabilities
of foreign operations are translated into EUR
at the rate of exchange prevailing at the
reporting date and income and expenses
are translated at the average rates for the
period, as an approximation of exchange
rates prevailing at the dates of the transac-
tions. The exchange differences arising on
translation for consolidation are recognized
in OCI. On disposal of a foreign operation,
the component of OCI relating to that par-
ticular foreign operation is reclassified to
profit or loss.
The following exchange rates are used for
the translation into EUR for the Group's most
relevant currencies:
NOTE 1.2
Changes in accounting policies
The accounting policies adopted in these
consolidated financial statements 2021 are
consistent with those applied in 2020 except
as outlined below:
Adoption of new and revised IFRS
standards
The Group has applied new and amended
International Financial Reporting Standards
(IFRS) on 1 January 2021:
Standard Subject
IFRS 9, IAS 39 &
IFRS 7
Interest rate benchmark
reform - phase 2
(amendments - 2021)
The changes do not materially impact the
financial position and performance or cash
flow of the Trifork Group nor have they led
to additional disclosures in these financial
statements.
Other minor changes in IFRS also became
effective but are not relevant for the Group.
The IASB has issued amendments to stand-
ards that are not yet effective. The Group has
not early adopted any of these. The follow-
ing changes are potentially relevant and
applicable for reporting periods from 2021
onwards:
Standard Subject
IFRS 3 Reference to the concep-
tual framework
(amendment - 2022)
IAS 37 Onerous contracts - Costs
of fulfilling a contract
(amendment - 2022)
Annual im-
provements
Collective standard with
amendments to various
IFRS with the primary goal
of eliminating incon-
sistencies and clarifying
terminology (2022)
IAS 1 Classification of liabilities
as current and non-cur-
rent (2023)
Disclosure of accounting
policies (amendment -
2023)
IAS 8 Definition of accounting
estimates (amendment
- 2023)
IAS 12 Deferred tax related to as-
sets and liabilities arising
from a single transaction
(amendment - 2023)
No material impact on the financial po-
sition and performance or cash flow of
the Trifork Group are expected from these
amendments.
Annual Report 2021
93
Section 1 - Basis of preparation
NOTE 1.3
Accounting estimates, assumptions and judgments
Determining the carrying value of certain
assets and liabilities requires estimates,
assumptions and judgments regarding
future events. These are based on historical
experience and other factors that man-
agement considers reasonable under the
circumstances, but which are uncertain and
unpredictable.
Assumptions may be incomplete or inaccu-
rate, and unanticipated events or circum-
stances may arise. It may be necessary to
change previous estimates due to changes
in the facts underlying the previous esti-
mates, or because of new information.
Furthermore, the Group is subject to risks
and uncertainties that may cause the actual
outcome to differ from these estimates. The
key assumptions concerning the future and
other key sources of estimation uncertainty
at the reporting date, that have a significant
risk of causing a material adjustment to the
carrying amounts of assets and liabilities
within the next financial year, are described
in the notes to which they relate.
!
Significant accounting
estimates, assumptions and
judgments
2.7 Income taxes
4.3 Contingent consideration
liabilities
4.4 Redemption amounts of
put-options
4.6 Intangible assets
5.1 Investment in Trifork Labs
2
Annual Report 2021
94
Section 2 - Results of the year
NOTE 2.1
Segment information
The business and operations of the
Trifork Group comprise of the two main
segments, Trifork and Trifork Labs. Trifork
is further divided into the three sub-seg-
ments Inspire, Build and Run the results
of which are reported to the Executive
Management (Chief operating decision
maker) for performance measurement
and resource allocation and represent
operating segments. Trifork has there-
fore concluded that it has four operating
segments, namely Inspire, Build and Run,
which are aggregated into the Trifork
column, and Trifork Labs.
The results of the segments are mon-
itored by the Executive Management
at the level of Earnings before financial
items, taxes, depreciation and amortiza-
tion (Trifork) and of EBT (Trifork Labs).
2021 (in EURk) Inspire Build Run Other Trifork Labs Elimination Total
Revenue
- from external customers 2,390 122,980 32,650 505 158,525 - - 158,525
- from other segments - 1,426 1,426 - -1,426 -
Total segment revenue 2,390 122,980 32,650 1,931 159,951 - -1,426 158,525
Earnings before financial items, tax,
depreciation and amortization
-640 48,146
1
7,438 -6,065 48,879 -1,503 - 47,376
Depreciation and amortization -288 -6,382 -3,546 -1,456 -11,672 - - -11,672
Impairment - - -97 - -97 - - -97
Earnings before financial items
and tax
-928 41,764 3,795 -7,521 37,110 -1,503 - 35,607
Financial result n/a n/a n/a n/a -3,757 4,806 - 1,049
Earnings before tax (EBT) n/a n/a n/a n/a 33,353 3,303 - 36,656
Average number of employees 19 626 154 79 878 2 - 880
1 Including gain of EURk 22,131 from the deconsolidation of Dawn Holding ApS (refer to Note 4.2).
Trifork
Trifork is focused on delivering services
to the customers of Trifork. The services
are delivered within three sub-seg-
ments: Inspire (organizing conferences
and trainings on software develop-
ment), Build (development of innovative
software in customer projects) and
Run (delivery and operation of soft-
ware products and related services for
customers).
'Other' mainly comprise of general
corporate costs, management services
to individual Labs investments and IPO-
preparation costs.
Trifork Labs
Trifork Labs is focused on founding new
tech start-ups and investing in selected
tech companies that are at the forefront
of the technological development with
new and innovative software products.
For internal management reporting and
performance measurement, all Trifork
Labs investments are monitored on a fair
value basis with changes recognized in
profit or loss and thus presented as such
in the segment reporting.
SECTION 2
Results for
the year
This section covers notes related to
the performance for the financial year,
including segment information showing
operating segment and sub-segment
revenues and operating results.
Annual Report 2021
95
Section 2 - Results of the year
NOTE 2.1
Segment information (continued)
2020 (in EURk) Inspire Build Run Other Trifork Labs Elimination Total
Revenue
- from external customers 1,945 86,705 26,422 286 115,358 - - 115,358
- from other segments - - - 878 878 - -878 -
Total segment revenue 1,945 86,705 26,422 1,164 116,236 - -878 115,358
Earnings before financial items, tax, de-
preciation and amortization
-1,522 16,810 5,866 -1,941 19,213 -2,238 - 16,975
Depreciation and amortization -165 -4,929 -3,327 -1,393 -9,814 - - -9,814
Impairment - - -753 - -753 - - -753
Earnings before financial items
and tax
-1,687 11,881 1,786 -3,334 8,646 -2,238 - 6,408
Financial result n/a n/a n/a n/a -762 41,396 - 40,634
Earnings before tax (EBT) n/a n/a n/a n/a 7,884 39,158 - 47,042
Average number of employees
20 459 128 73 680 2 - 682
GEOGRAPHICAL INFORMATION
(in EURk)
Revenue
from
external
customers
1
Non-current
assets
2
2021
Denmark 112,563 82,719
UK 10,006 9,412
Netherlands 8,242 7,221
USA 4,337 1,031
Switzerland 4,113 6,781
Others 19,264 1,536
Total 158,525 108,700
2020
Denmark 83,808 79,974
UK 9,736 9,879
Netherlands 8,418 6,281
USA 2,821 1,017
Switzerland 1,727 1,951
Others 8,848 1,502
Total 115,358 100,604
1 The geographical information is based on the
locations of the customers.
2 Intangible assets, right-of-use assets and
property, plant and equipment.
Annual Report 2021
96
Section 2 - Results of the year
NOTE 2.2
Revenue from contracts with customers
A. Revenue streams
(in EURk) 2021 2020
Inspire 2,390 1,945
Build 122,980 86,705
Run:
- Licenses and support 7,824 7,626
- Hardware 4,782 2,644
- Hosting and security 20,044 16,152
Other 505 286
Total revenue from contracts with customers 158,525 115,358
B. Revenue by business area
(in EURk) 2021 2020
Inspire 2,390 1,945
Digital health 16,026 14,572
Smart enterprise 76,560 49,237
Smart building 4,191 2,859
Cloud operations 24,739 21,735
Cyber protection 10,793 8,057
Fintech 23,321 16,668
Others 505 285
Total revenue from contracts with customers 158,525 115,358
C. Timing or revenue recognition
(in EURk) 2021 2020
Goods and services transferred at a point in time 6,957 7,657
Services transferred over time 151,568 107,701
Total revenue from contracts with customers 158,525 115,358
D. Contract liabilities
All contract liabilities at the beginning of
the period are recognized as revenue in the
reporting period, as:
for Inspire: Prepayments for GOTO
Conferences are made only for the next
upcoming conference, and;
for Build: Trifork Group delivers its services
to customers following the agile-approach
(short-term and numerous independent
cycles), and;
for Licenses and support/Hosting and
security: Although having long-term con-
tracts with customers, (pre-)payments are
only requested for short-term periods.
§
Accounting policies
Revenue from contracts with customers is
recognized when the performance obliga-
tion in the contract has been satisfied either
at a point in time or over time as control of
the goods or services is transferred to the
customer, at an amount that reflects the
consideration to which the Group expects
to be entitled in exchange for those goods
or services. The Group distinguishes three
classes of revenues:
1. Inspire revenue represents revenues for
organizing conferences and delivering
trainings. Revenues from events held
are recognized over the period of the
events. Amounts received in advance
of the event are presented as contract
liabilities.
2. Build revenue. The Group recognizes rev-
enue from customer specific fixed price
software development and consultancy
services over time, as determined by
the percentage of costs incurred to date
compared to the total estimated costs
of a contract. For time and materials
contracts, the Group recognizes revenue
as services are rendered.
3. Run revenue represents revenue earned
from providing customers with the fol-
lowing goods or services:
a. Licenses and support. The Group
recognizes revenue from right-to-use
software licenses at the point in time
when the customer obtains control over
the software. Revenue from support and
right-to-access licenses is recognized
over the period during which such items
are delivered comprising software up-
dates, upgrades, enhancements as well
as technical support.
b. Hardware. Revenue from the sale of
hardware is recognized when control
of the goods passes to the customer,
usually on delivery of the goods.
c. Hosting and security. The Group pro-
vides hosted managed services to its
customers offering server hosting, server
maintenance and security among
others. The Group hosts these services
and recognizes revenue on a straight-
line basis over the contractual service
period which typically ranges from 12 to
36 months.
Annual Report 2021
97
Section 2 - Results of the year
NOTE 2.3
Costs of goods and services purchased
(in EURk) 2021 2020
Costs of goods and services purchases -29,294 -22,751
§
Accounting policies
Costs of goods and services purchased from
external providers assist in the
fulfilment of the performance obligations
from contracts with customers (e.g. subcon-
tractors).
NOTE 2.4
Other operating expenses
(in EURk) 2021 2020
Sales and marketing expenses -3,139 -1,723
Service cost for leased property -2,252 -1,951
Administration expenses -12,033 -8,841
- of which IPO-preparation costs, net
1
-1,847 -852
- of which lease cost of short term and low value contracts -32 -20
Others -125 -58
Total other operating expenses -17,549 -12,573
1 As per IPO, Trifork became compensated for the preparation costs by other selling shareholders in the amount of
EURk 1,629.
NOTE 2.5
Depreciation, amortization and impairment
(in EURk) Note 2021 2020
Depreciation of property, plant and equipment 4.8 -2,194 -1,846
Depreciation of right-of-use assets 4.7 -5,454 -4,874
Amortization of intangible assets 4.6 -4,024 -3,094
Impairment of intangible assets 4.6 -97 -753
Total depreciation, amortization and impairment -11,769 -10,567
In 2020, acquired intangible assets were
impaired due to not living-up to the busi-
ness plan. The corresponding contingent
consideration liability was simultaneously
adjusted by EURk 535 to EURk 0 (see Notes
2.6 and 4.3).
Annual Report 2021
98
Section 2 - Results of the year
NOTE 2.6
Other financial result
A. Other financial income
(in EURk) 2021 2020
Interest income 132 87
Reversal of impairment losses on other financial assets 4 41
Fair value adjustments on contingent
consideration liabilities
9 754
Total other financial income 145 882
The main impact of the fair value adjust-
ments on contingent consideration liabilities
in 2020 comes from an earn-out agreement
for an acquired intangible asset not living
up to the business plan. The correspond-
ing contingent consideration liability was
simultaneously adjusted by EURk 535 to EURk
0 (see Notes 2.5 and 4.3).
B. Other financial expenses
(in EURk) 2021 2020
Interest expenses -1,545 -1,426
- of which lease interests -504 -487
- of which net interest for defined benefit plans -3 -4
Fair value adjustments on contingent consideration liabilities -292 -
Impairment losses on other financial assets -201 -48
Total other financial expenses -2,038 -1,474
Due to updated result estimation and reali-
zation for SAPBASIS ApS, the amounts for due
and expected earn out payments increased
(see Note 4.3).
C. Result of foreign exchange
(in EURk) 2021 2020
Foreign exchange gains 1,392 1,534
Foreign exchange losses -3,586 -1,582
Total result on foreign exchange -2,194 -48
Annual Report 2021
99
Section 2 - Results of the year
NOTE 2.7
Income taxes
A. Income tax recognized in profit or loss and other comprehensive income
(in EURk) 2021 2020
Tax expense recorded in the income statement
Current income tax expense -4,636 -2,861
Deferred tax (expense)/income 676 477
Total tax expense recorded in the
income statement
-3,960 -2,384
Tax effect recorded in other comprehensive income
Deferred income tax from remeasurement of defined benefit plans -41 62
Total tax effect recorded in other
comprehensive income
-41 62
TAX EXPENSE ANALYSIS
The Group operates in various countries
with differing tax laws and tax rates. As a
result, the expected and actual income tax
expense each year depends on the spe-
cific countries to which profits or losses are
attributed. The change in the expected tax
rate mainly relates to the change in the mix
of pre-tax results achieved by the individual
companies.
(in EURk) 2021 2020
Earnings before tax 36,656 47,043
Weighted applicable tax rate 24.7% 23.6%
Expected income tax expense -9,063 -11,147
Effect of changes in tax rates 2 -
Non-taxable income
- from investments 5,768 9,337
- others 164 92
Non-deductible expenses -752 -384
Unrecognized tax losses from current period -485 -367
Recognized tax losses from earlier periods 397 267
Others 9 -182
Actual income tax expense -3,960 -2,384
Effective tax rate 10.8% 5.1%
The following analysis explains the main
differences between the expected and
actual income tax expense (calculated
using the weighted average tax rates based
on the earnings before tax of each Group
company).
Annual Report 2021
100
Section 2 - Results of the year
NOTE 2.7
Income taxes (continued)
B. Deferred tax assets and liabilities
DEFERRED TAX ASSETS/(LIABILITIES), NET
(in EURk) 2021 2020
1 January -5,356 -2,589
Net deferred tax recognized in profit or loss 676 477
Net deferred tax recognized in other comprehensive income -41 62
Additions from business combinations -296 -3,302
Exchange differences -54 -4
31 December -5,071 -5,356
RECOGNIZED IN THE STATEMENT OF FINANCIAL POSITION AS:
(in EURk) 2021 2020
Deferred tax asset 193 224
Deferred tax liability -5,264 -5,580
Total -5,071 -5,356
!
Significant accounting
estimates, assumptions and judgments
Some Group companies have tax losses
that can be carried forward. These lapse
after seven years in Switzerland and in most
other countries there is no limitation period.
Deferred tax assets are recognized on tax
loss carry forwards if it is probable that they
can be offset against future taxable profits. If
there is uncertainty as to the future develop-
ment of earnings at a given Group company,
no deferred tax assets are recognized.
UNRECOGNIZED TAX LOSSES CARRIED FORWARD
(in EURk) 2021 2020
Expiry in:
- 1 year - -
- 2 to 5 years 560 48
- more than 5 years 2,238 1,533
- do not expire 5,473 4,478
Total unrecognized tax losses carried forward 8,271 6,059
Annual Report 2021
101
Section 2 - Results of the year
NOTE 2.7
Income taxes (continued)
DEFERRED TAX ASSETS/(LIABILITIES) RELATE TO THE FOLLOWING ITEMS:
2021 2020
(in EURk)
Deferred tax
assets
Deferred tax
liabilities
Deferred tax
assets
Deferred tax
liabilities
Intangible assets and property, plant and equipment 101 -5,333 103 -5,574
Leases (net) 282 -55 241 -73
Trade receivables 52 - 38 -
Other current assets - -3 - -14
Current liabilities 17 -301 5 -185
Defined benefit liabilities 138 - 123 -
Other non-current liabilities - - - -107
Tax losses carried forward 31 - 87 -
Total deferred tax assets/(liabilities) 621 -5,692 597 -5,953
Offsetting -428 428 -373 373
Total deferred tax assets/(liabilities), net 193 -5,264 224 -5,580
Deferred tax assets of EURk 31 (2020: EURk
87) were recognized in respect of available
tax losses carried forward of EURk 205 (2020:
EURk 450). Tax losses carried forward are only
recognized to the extent that it is probable
that future taxable profits will be available
against which they can be utilized.
§
Accounting policy
Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used
to compute the amounts are those that are
enacted or substantively enacted at the re-
porting date in the countries where the Group
operates and generates taxable income.
Current income tax relating to items recog-
nized directly in equity or in OCI is recognized
in equity or in OCI and not in profit or loss.
Deferred tax is provided using the liability
method on temporary differences between
the tax bases of assets and liabilities and
their carrying amounts for financial reporting
purposes at the reporting date.
Deferred tax assets are recognized for de-
ductible temporary differences, the carry for-
ward of unused tax credits and any unused
tax losses to the extent that it is probable that
taxable profit will be available against which
the deductible temporary differences, and
the carry forward of unused tax credits and
unused tax losses can be utilized.
However, no deferred tax is recognized
on temporary differences relating to
non-tax-deductible goodwill and other items
where temporary differences - excluding
business combinations – have occurred at
the time of acquisition without affecting profit
or taxable income.
Deferred income tax liabilities are provided
for taxable temporary differences arising
from investments in subsidiaries and associ-
ates, except for deferred tax liabilities where
the timing of the reversal of the temporary
difference is controlled by the Group and it is
probable that the temporary difference will
not reverse in the foreseeable future.
Annual Report 2021
102
Section 2 - Results of the year
NOTE 2.8
Earnings per share
2021 2020
Net income attributable to the shareholders of Trifork
Holding AG (in EURk)
29,349 43,216
Weighted average number of shares issued 19,331,752 18,637,230
Weighted average number of treasury shares -47,646 -53,685
Number of shares used for calculating earnings per share 19,284,106 18,583,545
Earnings per share of Trifork Holding AG, basic (in EUR) 1.52 2.33
Earnings per share of Trifork Holding AG, diluted (in EUR) 1.52 2.33
The dilutive effect was calculated based on the average number of RSU outstanding. In the
reporting period, 20,791 shares were included in the calculation (2020: none).
The Group intends to buy-back the shares for the plan from the market.
3
Annual Report 2021
103
Section 3 - Compensation
NOTE 3.1
Personnel costs
(in EURk) Note 2021 2020
Wages and salaries -82,377 -61,310
Share-based payments 3.2 -247 -
Social security costs -2,632 -1,927
Pension expense related to defined contribu-
tion plans
-3,877 -2,672
Pension expense related to defined benefit
plans
3.3 -110 387
Government grants on personnel costs 498 564
Salary refunds received 478 440
Personnel costs capitalized as development
projects
565 369
Total personnel costs -87,702 -64,149
Average number of employees 880 682
§
Accounting policy
Personnel costs comprises wages, sal-
aries (including bonus arrangements),
related social security expenses and
pension benefits. Costs for short-term
employee benefits are recognized as the
related service is received.
SECTION 3
Compensation
The employees of Trifork Group form
the backbone of all revenue generat-
ing activities.
In this section, details regarding the
employee compensation are outlined.
Annual Report 2021
104
Section 3 - Compensation
NOTE 3.2
Share-based payments
Trifork Group introduced a share-based
payment scheme for the members of
Executive Management in order to focus
part of the compensation on the long-term
development of the Group. With this scheme
the employees are compensated with
restricted share units (RSU) that will evenly
convert into shares of Trifork Holding AG after
one, two and three years. One RSU will con-
vert into one share.
The number of RSUs to be allocated are
subject to meeting several financial and
strategic targets.
The RSU are granted on the first day of the
month following the publication of the an-
nual results and convert in equal portions
after one, two and three years into shares
of Trifork Holding AG if the members of the
EM are employed with the Group at these
vesting dates.
Number of RSU
Fair value per
RSU
Fair value of
grant (in EURk)
Executive Management - RSU 2020 30,032 17.50 526
Granted in 2021 30,032 17.50 526
For this plan, the vesting period has started
on 1 April 2021 and EURk 247 were recorded in
personnel expenses for share-based pay-
ments for in 2021. The remaining weighted
average contractual life of the outstanding
RSU is 1.25 years.
30,032 RSU (at a fair value of EUR 17.5/RSU)
were granted of which 10,010 RSU will vest on
31 March 2022, 10,010 RSU on 31 March 2023
and 10,012 RSU on March 2024.
§
Accounting policy
Selected employees receive equity-settled
share-based payments. A share-based pay-
ment is measured at fair value as of the date
on which it is granted. The amount is record-
ed in personnel expenses on a straight-line
basis over the vesting period based on the
number of equity instruments that manage-
ment estimates will vest.
NOTE 3.3
Pension and similar obligations
(in EURk) 2021 2020
Defined benefit liabilities 1,015 1,042
Non-current liability for holiday funds payable 1,643 5,077
Other non-current liabilities 12 -
Other non-current liabilities 2,670 6,119
A. Pension
The Group's pension plan in Switzerland
qualifies as defined benefit plan. All other
plans are defined contribution plans.
Swiss pension funds are subject to regula-
tory supervision and are governed by the
BVG [Swiss Federal Act on Occupational
Retirement, Survivors and Disability Pension
Plans]. This requires pension plans to be
managed by a separate and legally in-
dependent entity. The governing body of
the pension plan is responsible for general
management, drafting the pension fund
regulations, defining the investment strategy
and determining how the benefits will be
funded. It comprises employee and employ-
er representatives.
The plan beneficiaries are insured against
the economic consequences of old age,
disability and death. Benefits paid to the
beneficiaries are governed by the pension
fund regulations but minimum benefits
are also prescribed by the law (BVG). The
benefits paid are based on the retirement
savings capital of the insured person, which
is accrued through annual contributions
and interest. Annual contributions are made
by the employer and the employee and
depend on the insured salary and the age of
the plan participant. Upon retirement, plan
participants can choose between receiving
a life time annuity or a lump sum payment of
savings capital.
The pension arrangements for employees in
Switzerland are covered by a multi-employer
plan administered by Swiss Life and AXA.
The pension plan contains a cash bal-
ance benefit which is essentially contribu-
tion-based with certain minimum guaran-
tees. Due to these minimum guarantees,
this plan is treated as a defined benefit plan,
although it has many of the characteristics
of a defined contribution plan.
The major risks for the pension fund are the
investment risk, interest rate risk, disability
risk and risk of longevity. The pension funds
have partly re-insured these risks.
In 2021, the plan at Swiss Life lowered the
conversion rates for the 2022 and the fol-
lowing years. This resulted in negative past
service costs of EURk 73.
In 2020, a new plan at the Swiss Life
Collective BVG Foundation, effective 1
January 2021, was introduced for salaries
exceeding CHF k 129. Plan participants can
choose from various investment strategies
to suit their personal risk profile. The Group's
obligation is limited to the annual contribu-
tions. The plan is classified as defined contri-
bution scheme and the Group recognized a
settlement gain of EURk 726 in 2020.
Annual Report 2021
105
Section 3 - Compensation
NOTE 3.3
Pension and similar obligations (continued)
The following weighted actuarial assumptions were applied in determining the
defined benefit obligation (DBO):
(in EURk) 2021 2020
Discount rate 0.4% 0.2%
Estimated future salary increases 1.5% 1.5%
Mortality assumptions BVG 2020 GT BVG 2015 GT
The net defined benefit liabilities developed as follows:
(in EURk) 2021 2020
1 January 1,042 1,223
Cost of defined benefit plans, in profit and loss 113 -384
Remeasurement, in other comprehensive income -380 420
Employer contributions -140 -221
Additions from business combination 331 -
Exchange differences 49 4
31 December 1,015 1,042
Breakdown of the net defined benefit liability
Present value of the DBO 4,283 3,519
Fair value of plan assets -3,268 -2,477
Net defined benefit liability/(asset) 1,015 1,042
Present value of the DBO
(in EURk) 2021 2020
1 January 3,519 2,560
Current service cost 184 339
Interest expense 9 8
Ordinary employee contributions 119 221
Additional contributions by plan participants 118 974
Benefits paid -528 -254
Past service cost -73 -
Settlement gain - -726
Additions from business combination 979 -
Actuarial (gains)/losses -249 408
Exchange differences 205 -11
31 December 4,283 3,519
Fair value of plan assets
(in EURk) 2021 2020
1 January 2,477 1,336
Interest income at discount rate 6 4
Ordinary employer contributions 141 221
Ordinary employee contributions 119 221
Additional contributions by plan participants 118 974
Benefits paid -528 -254
Additions from business combination 648 -
Return on plan assets (excluding interest income at discount rate) 131 -11
Exchange differences 156 -14
31 December 3,268 2,477
Annual Report 2021
106
Section 3 - Compensation
NOTE 3.3
Pension and similar obligations (continued)
Components of defined benefit cost in profit or loss
(in EURk) 2021 2020
Service cost in personnel costs -110 387
Net interest in financial expenses -3 -4
Total -113 383
Remeasurement of the net defined benefit liabilities in other comprehensive income
(in EURk) 2021 2020
Remeasurement of the net defined benefit liabilities
- Actuarial gain/(loss) from changes in demographic assumptions 111 -
- Actuarial gain/(loss) from changes in financial assumptions 58 -86
- Actuarial gain/(loss) from experience adjustments 80 -322
Return on plan assets (excluding interest income at discount rate) 131 -11
Total 380 -420
The Macaulay duration is 17.1 years (2020: 18.8 years).
Sensitivity
(in EURk) 2021 2020
Increase of discount rate by 0,5% -289 -138
Decrease of discount rate by 0,5% 332 160
Breakdown of the fair value of plan assets by investment category
(in EURk) 2021 2020
Receivables from an insurance company
(collective foundation)
3,268 2,477
The Trifork Group expects employer contributions of EURk 179 for 2022.
§
Accounting policy
Expenses for defined contribution schemes
are recognized in profit or loss in the period
the Group receives the related employee
services and a corresponding liability is rec-
ognized in the statement of financial position
under other current liabilities.
The cost of defined benefit plans is deter-
mined using actuarial valuations and record-
ed as follows:
Service cost (current and past service
costs from plan amendments, gains
and losses from curtailments and
settlements): in profit and loss, within
personnel costs
Net interest on the net defined benefit
liabilities or assets: in profit and loss,
within financial result
Remeasurements of the net defined
benefit liability (asset) comprising
actuarial gains and losses, the return on
plan assets (less interest at the discount
rate, which is included in net interest) as
well as the effects of any asset ceiling: in
other comprehensive income
B. Holiday funds payable
In 2019, the Danish Holiday Act was modern-
ized with the introduction of the concept of
“concurrent holiday”, meaning that employ-
ees may take holidays in the same year as
when the holiday is accrued.
Holidays earned in the transitional period
were frozen and either maintained in the
Group statement of financial position or
paid into the Employees’ Holiday Funds. The
amount not paid out is subject to annual
indexation determined by government.
The respective liability of total EURk 1,643
(2020: EURk 5,077) is included in the state-
ment of financial position. In 2021, the Group
transferred EURk 3,289 to the Employees’
Holiday Funds (2020: EURk 0).
§
Accounting policy
The indexation of the frozen holiday funds
starts at the same time as the accrual period
of the frozen holiday funds has ended, and
the new holiday law actually enters into force
- that is, from 1 September 2020.
Once a year, the companies will be noti-
fied by the government of which indexation
applies for a backward period for the frozen
holiday funds that have not yet been paid
into the fund. The indexation reflects the ad-
dition of interest and is, therefore, presented
as other financial expenses in the income
statement.
The indexing is calculated per commenced
month in which the holiday funds have not
been paid into the Employees' Holiday Funds
but retained by the company.
4
Annual Report 2021
107
Section 4 - Capital investments
NOTE 4.1
Acquisition of businesses
2021
In 2021, the Group acquired control (100%
of the share capital) of Vilea GmbH,
Zurich and Vilea Austria GmbH, Vienna
(“Vilea Group”) and Strongminds ApS,
Aarhus. Other acquisitions are not
material.
The purchase price allocations are not
final as at 31 December 2021. The provi-
sionally assessed fair values of assets
identified and liabilities assumed of
companies as at acquisition date are as
follows:
(in EURk) Vilea Group Strongminds ApS Other Total
Intangible assets 1,671 652 75 2,398
Right-of-use assets 179 - - 179
Property, plant and equipment 12 3 - 15
Other non-current assets - 7 1 8
Trade receivables 212 171 30 413
Other current assets 945 75 56 1,076
Deferred tax liabilities, net -136 -144 -16 -296
Other non-current liabilities -473 - - -473
Current liabilities -182 -135 -80 -397
Net assets acquired, attributable to shareholders of Trifork
Holding AG
2,228 629 66 2,923
Goodwill 3'157 540 - 3'697
Purchase price 5'384 1'169 67 6'620
- of which contingent consideration 1'945 336 - 2'281
- of which Trifork shares transferred 1'923 - - 1'923
- of which cash consideration 1'516 833 67 2'416
Acquired cash and cash equivalents -711 -74 -6 -791
Foreign exchange impact on purchase price payments 5 - - 5
Net outflow of cash and cash equivalents 810 759 61 1'630
VILEA GROUP
The acquisition took place at the end
of April 2021. EURk 1,590 of customer
relationships have been recognized as
intangible assets and are amortized
over an estimated useful life of 10 years.
Further, EURk 81 of order backlog have
been recognized as intangible assets
and are amortized by contract fulfilment.
Goodwill of EURk 3,157 is justified by the
expertise of the Vilea Group in its specific
field of action for Smart Enterprise solu-
tions and assumed synergies and is not
tax deductible.
SECTION 4
Capital
investments
This section focuses on the capital in-
vestments of Trifork Group that support
the organic and acquisitional growth.
Additionally, also liabilities related to
acquisitional activities are part of this
section in order to understand the
transactions as a whole.
Annual Report 2021
108
Section 4 - Capital investments
The fair value of the 102.073 Trifork shares
transferred amounts to EURk 1.923 and has
been determined by using the Trifork treas-
ury shares price model.
The contingent consideration payments are
subject to achieving operational results in
the financial years 2021 – 2023 (refer to Note
4.3).
Of the cash consideration of EURk 1,516 an
amount of EURk 994 was paid as per acqui-
sition date and the remainder of EURk 527
(including a foreign exchange impact of
EURk 5) subsequently in 2021.
In 2021, Vilea Group contributed revenue of
EURk 1,459 and earnings before tax of EURk
218 to Trifork Group. If the acquisition had
taken place on 1 January 2021, the total rev-
enue of the Trifork Group would have been
EURk 703 higher and the earnings before tax
for the period would have increased by EURk
256.
Transaction costs related to the acquisition
amount to EURk 31 and are included in other
operating expenses.
STRONGMINDS APS
The acquisition took place at the beginning
of November 2021. EURk 602 of custom-
er relationships have been recognized as
intangible assets and are amortized over an
estimated useful life of 10 years. Further, EURk
50 of order backlog have been recognized
as intangible assets and are amortized by
contract fulfilment. Goodwill of EURk 540
is justified by the expertise of Strongminds
ApS in its specific field of action for Smart
Enterprise solutions and assumed synergies
and is not tax deductible.
The contingent consideration payments are
subject to achieving operational results in
the financial years 2022 – 2024 (refer to Note
4.3).
In 2021, Strongminds ApS contributed reve-
nue of EURk 139 and earnings before tax of
EURk 5 to Trifork Group. If the acquisition had
taken place on 1 January 2021, the total rev-
enue of the Trifork Group would have been
EURk 746 higher and the earnings before tax
for the period would have increased by EURk
62.
Transaction costs related to the acquisition
are immaterial.
OTHER
The other acquisition was merged with
Trifork Smart Enterprise A/S.
2020
In 2020, the Group acquired control of
SAPBASIS ApS, MM Technologies ApS and
Nine A/S.
SAPBASIS APS
The acquisition took place at the beginning
of January 2020. EURk 1,262 of custom-
er relationships have been recognized as
intangible assets and are amortized over an
estimated useful life of 10 years. Further, EURk
126 of order backlog have been recognized
as intangible assets and are amortized by
contract fulfilment. Goodwill of EURk 584 has
been allocated with an indefinite lifetime
and is justified by the expertise of SAPBASIS
ApS in its specific field of action and is not
tax deductible.
The fair value of the 44,307 Trifork shares
transferred amounts to EURk 386 and has
been determined by using the Trifork treas-
ury shares price model.
The contingent consideration payments
are subject to achieving operational results
in the financial years 2020 – 2022 and are
due from 2021 (refer to Note 4.3 for further
information).
The non-controlling interests are calculated
based on the share of identifiable net assets.
In 2020, SAPBASIS ApS contributed revenue of
EURk 2,008 and earnings before tax of EURk
481 to Trifork Group. If the acquisition had
taken place on 1 January 2020, the impact on
revenue and earnings before tax would not
be material.
Transaction costs related to the acquisition
are immaterial.
MM TECHNOLOGIES APS
(RENAMED TO TRIFORK SMART DEVICE APS)
The acquisition took place at the beginning
of March 2020. EURk 67 of development pro-
jects (unpatented) and EURk 29 of custom-
er relationships have been recognized as
intangible assets and are amortized over
an estimated useful life of 5 and 10 years.
Goodwill of EURk 51 is justified by market
potential of the development projects and is
not tax deductible.
The non-controlling interest is calculated
based on the share of identifiable net assets.
In 2020, MM Technologies ApS contributed
revenue of EURk 37 and earnings before tax
of EURk 74 to Trifork Group. If the acquisition
had taken place on 1 January 2020, the total
revenue of the Trifork Group would have
been EURk 7 higher and the earnings before
tax for the period would have increased by
EURk 15.
Transaction costs related to the acquisition
are immaterial.
NINE A/S
The acquisition took place at the beginning
of September 2020. EURk 12,478 of custom-
er relationships have been recognized as
intangible assets and are amortized over an
estimated useful life of 10 years. Further, EURk
1.089 of order backlog have been recognized
as intangible assets and are amortized by
contract fulfilment. Goodwill of EURk 25,958
is justified by the expertise of Nine A/S in its
specific field of action and assumed syner-
gies and is not tax deductible.
The Group delivered 191,000 Trifork shares
to the sellers of Nine A/S and entered into a
put-option arrangement on these shares.
Annual Report 2021
109
Section 4 - Capital investments
The sellers are entitled to put back 50%
of the shares at a fixed price of EUR 21 per
share and 50% of the shares between EUR
0 and EUR 21 per share, depending on the
accumulated EBIT of Nine A/S for the period
2021 - 2022. The put-option can be exercised
in early 2023. Management considers this
arrangement as a contingent consideration
and has recognized the fair value of EURk
4,081 at acquisition date, refer to Note 4.3 for
further explanation.
The weighted average cost of the 191,000
Trifork shares delivered (EURk 2,390) has
been transferred to retained earnings at the
acquisition date.
The non-controlling interests are calculated
based on the share of identifiable net assets.
For the remaining non-controlling interests
call options were acquired and put options
written.
In 2020, Nine A/S contributed revenue of EURk
9,336 and earnings before tax of EURk 1,575
to Trifork Group. If the acquisition had taken
place on 1 January 2020, the total revenue of
the Trifork Group would have been EURk 15,121
higher and the earnings before tax for the
period would have increased by EURk 1,840.
Transaction costs related to the acquisition
amount to EURk 103 and are included in other
operating expenses.
The purchase price allocations were finalized
in 2021. The fair values of assets identified
and liabilities assumed of companies as at
acquisition date are as follows:
§
Accounting policy
Subsidiaries are consolidated from the date
that control is obtained. The acquisition
method is applied. The cost of an acquisi-
tion is the aggregate of the consideration
transferred, measured at acquisition date fair
value and the amount of any non-controlling
interests in the acquired business. For each
business combination, the non-controlling
interests in the acquiree are measured either
at fair value or at the proportionate share of
the acquiree's identifiable net assets.
In business combinations the identifiable as-
sets, liabilities and contingent liabilities of a
subsidiary are measured at acquisition-date
fair value. Goodwill is not amortized but
tested on an annual basis for impairment. A
bargain purchase, which arises when the fair
value of the identified net assets exceeds the
consideration transferred on the acquisi-
tion date, is recorded directly in the income
statement.
(in EURk) SAPBASIS ApS MM Technologies ApS Nine A/S Total
Intangible assets 1,388 96 13,567 15,051
Right-of-use assets 305 - 1,815 2,120
Property, plant and equipment 17 2 146 165
Other non-current assets 287 1 - 288
Trade receivables 449 6 4,814 5,269
Other current assets 266 297 7,699 8,262
Deferred tax liabilities -305 -19 -2,977 -3,301
Other non-current liabilities -252 - -3,115 -3,367
Current liabilities -281 -26 -8,867 -9,174
Net assets acquired 1,874 357 13,082 15,313
Non-controlling interests -935 -107 -3,925 -4,967
Net assets acquired, attributable to shareholders of
Trifork Holding AG
939 250 9,157 10,346
Goodwill 584 51 25,958 26,593
Purchase price 1,523 301 35,115 36,939
- of which contingent consideration 558 - 4,081 4,639
- of which Trifork shares transferred 386 - 2,390 2,776
- allocation of Trifork shares transferred, subject to
put-option, to contingent consideration
- - -2,390 -2,390
- of which cash consideration 579 301 31,034 31,914
Acquired cash and cash equivalents -261 -278 -5,174 -5,713
Net outflow of cash and cash equivalents 318 23 25,860 26,201
Non-controlling interests at the time of acquisition 49.9% 30.0% 30.0%
Annual Report 2021
110
Section 4 - Capital investments
NOTE 4.2
Businesses disposed / loss of control
2021
DAWN HEALTH A/S
In the second half 2021, Trifork Group com-
pleted the strategic review for its subsidiary
Dawn Health A/S to bring in new external
capital for financing and to further acceler-
ate growth in the rapidly expanding market
for digital therapeutics and software as a
medical device. After a share-swap into
shares of Dawn Holding ApS, a 6% stake in
the shares of the company was sold for EURk
2,466, reducing the Group’s shareholding to
45%. This led to a loss of control and decon-
solidation of the company from the Trifork
segment on 30 November 2021 and transfer
of the retained investment to the Trifork Labs
segment at an initial fair value of EURk 20,297.
A capital round by other investors subse-
quent to the deconsolidation diluted the
interest of Trifork Group in Dawn Holding ApS
to 33%.
The transaction resulted in a gain from
disposal of Group Companies of EURk 22,131,
included in “other operating income” of EURk
22,923.
In 2021, Dawn Health A/S contributed with a
revenue of EURk 4,405 and earnings before
tax of EURk 548 to Trifork Group.
2020
No businesses were disposed.
(in EURk)
Carrying amount of assets and
liabilities disposed
Property, plant and equipment 85
Right-of-use assets 327
Other non-current assets 68
Trade receivables 704
Other current assets 1,271
Non-current liabilities -218
Current liabilities -996
Net assets disposed 1,241
Non-controlling interests derecognized -608
Dawn Holding ApS shares retained as Trifork Labs investment -20,297
Consideration received in cash -2,466
Currency translation adjustment reclassified to profit or loss -1
Gain from disposal of Group companies -22,131
Cash and cash equivalents disposed -403
Consideration received in cash 2,466
Net inflow of cash and cash equivalents 2,063
§
Accounting policy
If the Group loses control over a subsidiary,
it derecognizes the related assets (including
goodwill), liabilities, non-controlling interests
and other components of equity, while any
resulting gain or loss is recognized in profit or
loss. Any investment retained is recognized at
fair value.
Annual Report 2021
111
Section 4 - Capital investments
NOTE 4.3
Contingent consideration liabilities
(in EURk) Level 3
1 January 2020 949
Additions from business combinations 4,639
Other additions 535
Fair value adjustments recognized in profit or loss -743
Exchange differences -2
31 December 2020 5,378
Additions from business combinations 2,281
Settlements -1,157
Fair value adjustments recognized in profit or loss 283
Exchange differences 131
31 December 2021 6,916
The Group classifies the fair value of its
financial instruments in the following hi-
erarchy, based on the inputs used in their
valuation:
Level 3 – Inputs to the valuation are unob-
servable and significant to overall fair value
measurement. The inputs to the determina-
tion of fair value require significant man-
agement judgment or estimation. Positions
that are included in this category include
investments in Trifork Labs and contingent
consideration liabilities.
An amount of EURk 4,084 (2020: EURk 4,082)
relates to the acquisition of Nine A/S:
As part of the transaction Trifork entered into
a put-option arrangement with the sell-
ers of Nine A/S for the 191,000 Trifork shares
delivered at acquisition date. The sellers
are entitled to put back 50% of the shares
to Trifork at a fixed price of EUR 21 per share
and 50% of the shares between EUR 0 and
EUR 21 per share, depending on the accu-
mulated EBIT of Nine A/S for the period 2021
- 2022. The put option can be exercised in
early 2023. The weighted average cost of the
Trifork shares delivered has been transferred
to retained earnings at the acquisition date.
Should the put-option on the Trifork shares
expire unexercised, the put-option liabili-
ty will be reclassified to retained earnings.
Trifork Group assumes the targets to be met.
The maximum to be paid is EURk 4,084.
An amount of EURk 2,065 (2020: EURk 0) re-
lates to the acquisition of Vilea Group:
The contingent consideration arrangement
comprises a total pay-out of up to EURk
2,065 in 2022, 2023, 2024 in case the com-
pany meets defined EBIT-targets for 2021 to
2023.
If the target is missed by more than 43.8%,
there will be no pay-out. Based on the results
for 2021, 84% of the maximum amount is due.
Considering business planning, Trifork Group
expects that for the remaining periods the
maximum amount becomes due.
An amount of EURk 336 (2020: EURk 0) relates
to the acquisition of Strongminds ApS:
The contingent consideration arrangement
comprises a target pay-out of total EURk 269
and a maximum pay-out of up to EURk 336 in
2023, 2024, 2025 in case the company meets
or exceeds defined EBIT-targets for 2022 to
2024.
If the targets are missed by more than 9.8%
(2022), 19.5% (2023) or 28.1% (2024), there
will be no pay-out. Based on recent results
and business planning for Strongminds ApS,
Trifork Group expects that for all periods the
maximum amount becomes due.
An amount of EURk 431 (2020: EURk 355) re-
lates to the acquisition of SAPBASIS ApS:
The contingent consideration arrangement
comprises a total pay-out of up to EURk 215
in 2023 in case the company meets defined
EBIT-targets for 2022. If the target is missed
by more than 10%, there will be no pay-out.
Based on recent results and the budget for
SAPBASIS ApS, Trifork Group expects that the
maximum amount becomes due.
For 2021, the EBIT-target was met and the
amount of EURk 216 will be paid out in 2022.
For 2020, the EBIT-target was met and the
amount of EURk 216 was paid out in March
2021.
An earn-out agreement relating to the
acquisition of the remaining non-controlling
interests (49%) of Trifork Smart Enterprise A/S
was settled in 2021 by the payment of EURk
941 (2020: EURk 941).
An earn-out agreement relating to the
acquisition of software products (complet-
ed development projects) ended in 2021
not resulting in any payments. In 2020, the
fair value of the contingent consideration
liability was already reduced by EURk 535 to
EURk 0.
Fair value adjustments recognized in profit
or loss form part of other financial income or
expense, refer to Note 2.6.
!
Significant accounting
estimates, assumptions and judgments
In connection with determination of the pur-
chase price of acquired subsidiaries man-
agement has to determine the fair value of
any contingent consideration arrangement
at the acquisition date and at each reporting
date until settlement or expiry. The fair value
measurement is usually based on significant
unobservable inputs (level 3) and may signif-
icantly change over time.
§
Accounting policy
Refer to accounting policy in Note 7.2.
Annual Report 2021
112
Section 4 - Capital investments
NOTE 4.4
Redemption amount of put-options
(in EURk) 2021 2020
1 January 24,240 4,089
Addition 9,283 20,013
Exercise of put-options -1,260 -
Adjustment recognized in retained earnings 3,890 114
Exchange differences 10 24
31 December 36,163 24,240
The Group entered into a call/put-option
agreement for 43.6% non-controlling inter-
ests in Erlang Solutions Ltd. with a third-party
as of 27 April 2021. Based on this agreement,
a first acquisition of 10.6% was made subse-
quently (refer to Note 8.2).
Based on the result achieved by the compa-
nies having put-options on non-controlling
interest and its pricing mechanism, the
redemption amount was adjusted.
In 2020, Trifork Group acquired 70% of the
shares of Nine A/S. The sellers have put-op-
tions, subject to certain conditions, on the
remaining non-controlling interest.
!
Significant accounting
estimates, assumptions and judgments
As the Group has a contractual obligation
to acquire additional shares in case defined
financial conditions are met and the put-op-
tions are exercised by the sellers, it must
estimate the respective financial liabilities.
Estimating future cash flows based on
contractually agreed option prices formulas
requires management to make assumptions
about relevant input parameters such as
future results and may result in significant
changes to recognized liabilities in future
periods.
§
Accounting policy
In the case of acquisitions, it is common
practice for the Group to acquire call options
and to write put options for the remaining
interests that were not acquired. Shares of
the profits or losses continue to be allocated
to the non-controlling interests when the
Group has not acquired a present ownership
interest in these interests. The non-con-
trolling interests subject to put-options are
derecognized at each reporting date as if
acquired. Liabilities from written put-options
are measured at the present value of the
redemption amount. These financial liabilities
are remeasured at each reporting date and
the resulting differences are recorded in
retained earnings without any impact on the
income statement.
NOTE 4.5
Investments in associated companies
(in EURk) 2021 2020
1 January 15 41
Share of result from associated companies 114 15
- of which share of result applying the equity method 114 15
Dividends received -107 -41
Exchange differences -1 -
31 December 21 15
The associated companies are considered
individually immaterial.
§
Accounting policy
An associated company is an entity over
which the Group has significant influence.
Significant influence is the power to partic-
ipate in the financial and operating policy
decisions of the investee, but is not control or
joint control over those policies.
Associated companies in the Trifork segment
are recognized using the equity method.
Under the equity method, the investment in
an associate is initially recognized at cost.
The carrying amount of the investment is
adjusted to recognize changes in the Group's
share of net assets of the associate since the
acquisition date.
Annual Report 2021
113
Section 4 - Capital investments
(in EURk) Goodwill
Completed
development
projects
Ongoing de-
velopment
projects
Customer
relation-
ships/
order
backlog/
others Total
(in EURk) Goodwill
Completed
development
projects
Ongoing de-
velopment
projects
Customer
relation-
ships/
order
backlog/
others Total
Acquisition cost Accumulated amortization and impairment
1 January 2020 18,104 12,126 768 17,290 48,288 1 January 2020 - -9,332 - -5,511 -14,843
Additions - 1,325 369 147 1,841 Amortization - -1,356 - -1,738 -3,094
Additions from business
combinations
26,593 67 - 14,984 41,644
Impairment - -753 - - -753
Disposals - -210 - -314 -524 Disposals - 210 - 314 524
Transfers - 821 -821 - - Exchange differences - 22 - 27 49
Exchange differences -35 -15 1 -93 -142 31 December 2020 - -11,209 - -6,908 -18,117
31 December 2020 44,662 14,114 317 32,014 91,107
Additions - - 565 191 756 Amortization - -1,012 - -3,011 -4,023
Additions from business
combinations
3,697 - - 2,398 6,095 Impairment - -97 - - -97
Disposals - -875 - - -875 Disposals - 802 - - 802
Transfers - 373 -373 - - Exchange differences - 82 - -159 -77
Exchange differences 368 -51 - 400 717 31 December 2021 - -11,434 - -10,078 -21,512
31 December 2021 48,727 13,561 509 35,003 97,800
Net carrying amount as of 31
December 2020
44,662 2,905 317 25,106 72,990
Net carrying amount as of 31
December 2021
48,727 2,127 509 24,925 76,288
NOTE 4.6
Intangible assets
Expenditure on research and development
recognized in the income statement (per-
sonnel costs) amounts to EURk -2,121 (2020:
EURk -1.373).
In 2020, the Group acquired a completed
development project of EURk 535 that was
subject to a contingent consideration (see
Note 2.5, 2.6 and 4.3).
ONGOING DEVELOPMENT PROJECTS
Additions to ongoing development projects
relate to internal development costs (cap-
italization of personnel costs). Refer also to
Note 3.1.
Ongoing development projects are allocat-
ed across multiple cash-generating units
(CGUs).
Annual Report 2021
114
Section 4 - Capital investments
NOTE 4.6
Intangible assets (continued)
GOODWILL
As of 31 December, goodwill is allocated the following CGU's:
in EURk 2021 2020
Build sub-segment
Trifork A/S 224 224
Trifork Public A/S 577 577
Trifork B.V. 3,756 3,756
Erlang Solutions Group 1,201 1,136
Open Credo Ltd. 1,333 1,240
Duckwise ApS 5 5
Testhuset A/S 4,056 4,054
Trifork Smart Enterprise A/S 1,308 1,308
SAPBASIS ApS 587 587
Trifork Smart Device ApS 51 51
Nine A/S 25,976 25,966
Vilea Group 3,353 -
Strongminds ApS 540 -
Total 42,967 38,904
Run sub-segment
Netic A/S 5,760 5,758
Total Goodwill 48,727 44,662
IMPAIRMENT TEST
The recoverable amount of each CGU to
which goodwill has been allocated, has
been determined based on value in use
calculations using cash flow projections the
business plans approved by senior manage-
ment covering a 5-year period. Cash flows
beyond this five-year period (terminal value
period) are extrapolated using a growth rate
of 1% which does not exceed the long-term
growth rate for the respective market in
which the CGU is active.
The pre-tax discount rates applied to the
cash flow projections represents the current
market assessment of the risks specific to
each CGU, taking into consideration the
time value of money and individual risk of
the underlying assets that have not been
incorporated in the cash flow estimates. The
discount rate is derived from the weighted
average cost of capital (WACC).
!
Significant accounting
estimates, assumptions and judgments
Management estimates relate to the de-
termination of discount rates, growth rates
and expected changes in sales prices and
production cost in the budgets and terminal
value periods. Management considers the
projected cash flows to be realistic and built
around historical experience and reasonable
expectations for future market developments.
Management considers that reasonably
possible changes in key assumptions will not
cause the recoverable amounts of CGU's to
become inferior to their carrying amount.
Annual Report 2021
115
Section 4 - Capital investments
NOTE 4.6
Intangible assets (continued)
§
Accounting policy
Intangible assets acquired separately are
measured on initial recognition at cost.
Following initial recognition, intangible assets
are carried at cost less any accumulated
amortization and accumulated impairment
losses.
Development expenditure on individual
projects is recognized as an intangible asset
only when the Group can demonstrate the
technical feasibility, its intention and ability
to complete the project, the availability of
resources, its ability to measure the costs re-
liably and how the asset will generate future
economic benefits.
The cost of development projects covers
expenses, including wages and depreciation,
which can be allocated directly to the devel-
opment projects, and which are considered
necessary to finish the project, from the time
the development project for the first time
meets the criteria for recognition as an asset.
All capitalized development projects are
tested for impairment annually.
The useful life of intangible assets is assessed
as either finite or indefinite. Intangible assets
with finite life are amortized on a straight-
line basis over the estimated useful life and
assessed for impairment whenever there is
an indication that the intangible asset may
be impaired.
Amortization:
Capitalized development
cost 2-5 years
Acquired customer
relationships 5-20 years
Order backlog in accordance
with contract terms
2021 2020
CAGR Net
sales
Average
EBITDA
margin
Pre-tax
discount
rate
CAGR Net
sales
Average
EBITDA
margin
Pre-tax
discount
rate
Build sub-segment
Trifork A/S 9.2% 15.8% 11.9% 8.4% 17.5% 11.4%
Trifork Public A/S 8.0% 20.6% 11.9% 11.1% 20.0% 11.4%
Trifork B.V. 4.2% 15.8% 11.8% 8.3% 18.3% 11.4%
Erlang Solutions Group 11.6% 14.6% 12.8% 16.5% 11.9% 12.0%
Open Credo Ltd. 12.3% 10.7% 12.8% 0.2% 11.7% 12.0%
Duckwise ApS 14.8% 11.6% 11.9% 14.1% 14.9% 11.4%
Testhuset A/S 5.9% 10.4% 11.9% 7.7% 12.1% 11.4%
Trifork Smart Enterprise A/S 9.6% 15.3% 11.9% 11.4% 14.9% 11.4%
SAPBASIS ApS 16.8% 26.0% 11.9% 15.0% 27.5% 11.4%
Trifork Smart Device ApS 35.8% 9.8% 11.9% 101.7% 36.0% 11.5%
Nine A/S 8.3% 20.7% 11.9% 10.6% 23.1% 11.4%
Vilea Group 29.5% 20.0% 11.3% - - -
Strongminds ApS 16.5% 20.0% 11.8% - - -
Run sub-segment
Netic A/S 11.5% 12.6% 11.9% 8.5% 16.9% 11.4%
Annual Report 2021
116
Section 4 - Capital investments
NOTE 4.6
Intangible assets (continued)
The amortization periods and the amortiza-
tion methods are reviewed at least at the end
of each reporting period.
Goodwill is initially measured at cost, being
the excess of the aggregate of the consider-
ation transferred and the amount recognized
for the non-controlling interest over the net
identifiable assets acquired and liabilities
assumed.
Goodwill is not amortized but subject to an
impairment test annually and whenever
there are indications of possible impairment.
Any impairment of goodwill is not subse-
quently reversed.
At each reporting date, the Group assesses
whether there is any indication that an in-
tangible asset (other than Goodwill) may be
impaired. If any such indication exists, the re-
coverable amount of such asset is estimated.
Where it is not possible to determine the re-
coverable amount of an individual intangible
asset, the Group estimates the recoverable
amount of the smallest cash generating unit
to which the asset belongs.
The recoverable amount is the higher of an
asset's or cash generating unit's fair value
less costs of disposal and its value in use. If
the recoverable amount is estimated to be
less than the carrying amount, the carry-
ing amount is reduced to the recoverable
amount. Impairment losses are recognized
immediately in profit or loss.
Where an impairment loss subsequently re-
verses, the carrying amount of the intangible
asset (other than Goodwill) or cash generat-
ing unit is increased to the revised estimate
of its recoverable amount.
However, this increased amount cannot
exceed the carrying amount that would have
been determined if no impairment loss had
been recognized for that asset or cash gen-
erating unit in prior periods.
NOTE 4.7
Right-of-use assets
(in EURk) Offices IT-Hardware Cars Total
2021
Additions 5,590 1,931 527 8,048
Depreciation -4,342 -754 -358 -5,454
Net carrying amount as of
31 December
20,175 2,350 770 23,295
2020
Additions 9,669 460 334 10,463
Depreciation -3,919 -566 -389 -4,874
Net carrying amount as of
31 December
19,061 1,596 813 21,470
For the expense relating to short-term leases
and variable lease payment not included in
the measurement of lease liabilities refer to
Note 2.4.
For the incurred interest expense on lease
liabilities refer to Note 2.6.
For the maturity analysis of lease liabilities
refer to Note 7.5.
Total cash outflow for leases amounted to
EURk 5,522 (2020: EURk 4,433), refer to Notes
2.4 (for short-term and low value leases), 2.6
(for the interest part) and 7.3 (for the finan-
cial liability part).
§
Accounting policy
The Group assesses whether a contract is or
contains a lease at its inception.
The Group recognizes a right-of-use asset
(ROU asset) and a lease liability at the lease
commencement date, except for leases with
a duration of less than 12 months and leases
of low value assets as well as variable lease
payments not depending on an index or rate
which are expensed in the income statement
when incurred.
The lease liability is initially measured at
the present value of the lease payments,
discounted using the interest rate implicit in
the lease and if not readily determinable an
incremental borrowing rate which is the ag-
gregation of the risk-free rate, increased by
an individual risk factor and adjusted for the
respective currency and lease duration.
The lease payments are apportioned
between the amortization part and the
interest expense, that is included in financial
expenses.
At inception, the ROU asset comprises the
initial lease liability, initial direct costs and
any obligation to refurbish the asset, less any
incentives granted by the lessor. The ROU
is depreciated over the shorter of the lease
term or the useful life of the underlying asset.
Annual Report 2021
117
Section 4 - Capital investments
NOTE 4.8
Property, plant and equipment
(in EURk)
Real
estate
Leasehold
improve-
ments
Other
equipment,
fixtures and
fittings
Assets
under
construc-
tion Total
(in EURk)
Real
estate
Leasehold
improve-
ments
Other
equipment,
fixtures and
fittings
Assets
under
construc-
tion Total
Acquisition cost Accumulated depreciation and impairments
1 January 2020 1,114 3,416 9,106 - 13,636 1 January 2020 -36 -1,971 -5,897 - -7,904
Additions - 861 1,246 - 2,107 Depreciation -13 -402 -1,431 - -1,846
Additions from business
combinations
- - 165 - 165
Disposals - 35 77 - 112
Disposals - -35 -160 - -195 Exchange differences - 28 6 - 34
Exchange differences - -71 106 - 35 31 December 2020 -49 -2,310 -7,245 - -9,604
31 December 2020 1,114 4,171 10,463 - 15,748
Depreciation -13 -420 -1,761 - -2,194
Additions - 1,417 2,208 1,321 4,946 Disposals - - 390 - 390
Additions from business
combinations
- - 15 - 15 Disposals of Group companies - 1 96 - 97
Disposals - - -702 - -702 Transfers
1
- - -822 - -822
Disposals of Group
companies
- -5 -177 - -182 Exchange differences - -54 -147 - -201
Transfers
1
- - 1,323 - 1,323 31 December 2021 -62 -2,783 -9,489 - -12,334
Exchange differences - 106 196 1 303
31 December 2021 1,114 5,689 13,326 1,322 21,451 Net carrying amount as of 31
December 2020
1,065 1,861 3,218 - 6,144
Net carrying amount as of 31
December 2021
1,052 2,906 3,837 1,322 9,117
1 Trifork Group has acquired cars and hardware from lease contracts. Before, the Group accounted for these items as right-of-use assets.
Annual Report 2021
118
Section 4 - Capital investments
NOTE 4.8
Property, plant and equipment (continued)
§
Accounting policy
Leasehold improvements, other equipment,
fixtures and fittings and real estate are stated
at cost less accumulated depreciation and
impairment. Cost comprises the purchase
price and any costs directly attributable to
the acquisition until the date the asset is
ready for use.
Straight-line depreciation is calculated
based on the following estimated useful lives:
Real estate (except land) 30 years
Leasehold improvements etc. 7 years
Other equipment, fixtures 3-7 years
and fittings
For real estate, the Group assumes a residual
value of 45% of cost.
The residual values, useful lives and methods
of depreciation are reviewed at least at the
end of each reporting period and adjusted
prospectively, if appropriate.
Gains and losses on the disposal of property,
plant and equipment are determined as the
difference between the net disposal pro-
ceeds and the carrying amount of the assets
and is recognized as other operating income/
expense.
At each reporting date, the Group assesses
whether there is any indication that an item
of property, plant and equipment may be
impaired. If any such indication exists, the
recoverable amount of such asset is deter-
mined. Where it is not possible to estimate
the recoverable amount of an individual
property, plant and equipment asset, the
Group estimates the recoverable amount of
the smallest cash generating unit to which
the asset belongs. The recoverable amount
is the higher of an asset's or cash generating
unit's fair value less costs of disposal and
its value in use. If the recoverable amount
is estimated to be less than the carrying
amount, the carrying amount is reduced to
the recoverable amount. Impairment losses
are recognized immediately in profit or loss.
Where an impairment loss subsequently
reverses, the carrying amount such asset
or cash generating unit is increased to the
revised estimate of its recoverable amount.
However, this increased amount cannot
exceed the carrying amount that would have
been determined if no impairment loss had
been recognized for asset or cash generating
unit in prior periods.
NOTE 4.9
Other financial assets
(in EURk) 2021 2020
Loans to investments in Trifork Labs 1,994 3,015
Deposits for lease contracts 1,254 1,293
Expected credit loss allowance -8 -12
Total financial assets 3,240 4,296
- of which non-current 2,897 3,956
- of which current 343 340
§
Accounting policy
Refer to accounting policy in Note 7.2.
5
Annual Report 2021
119
Section 5 - Investment in Trifork Labs
NOTE 5.1
Investments in Trifork Labs
(in EURk) Level 1 Level 3 Total
1 January 2020 - 32,531 32,531
Acquisitions - 2,953 2,953
Transfers 144 -144 -
Disposals - -1,050 -1,050
Fair value adjustments 87 41,172 41,259
- of which realized - -399 -399
- of which unrealized 87 41,571 41,658
Exchange differences 5 163 168
31 December 2020 236 75,625 75,861
- of which non-current 236 19,519 19,755
- of which current - 56,106 56,106
Acquisitions - 5,713 5,713
Additions from deconsolidation - 20,297 20,297
Disposals -59,059 -59,059
Fair value adjustments -127 5,149 5,022
- of which realized - 2,858 2,858
- of which unrealized -127 2,291 2,164
Dividends received - -688 -688
Exchange differences - 113 113
31 December 2021 109 47,150 47,259
- of which non-current 109 47,150 47,259
The Group classifies the fair value of its
financial instruments in the following
hierarchy, based on the inputs used in
their valuation:
Level 1 – Inputs to the valuation are quot-
ed prices available in active markets.
The type of investments listed under
Level 1, include securities listed in active
and liquid markets.
Level 3 – Inputs to the valuation are
unobservable and significant to overall
fair value measurement. The inputs to
the determination of fair value require
significant management judgment or
estimation.
In certain cases, the inputs used to
measure fair value may fall into differ-
ent levels of the fair value hierarchy. In
such cases an investment's level within
the fair value hierarchy is based on the
lowest level of input that is significant to
the fair value measurement.
The line item disposal includes the fair
value of the investments disposed at
the time of disposal, after revaluation to
fair value. Fair value adjustments for the
current year are recorded in line item
“fair value adjustments on investments
in Trifork Labs” in the income statement.
SECTION 5
Investment in
Trifork Labs
The investments in Trifork Labs are a
speciality of Trifork and form the venture
funded research and development of
the Group.
Relevant items, such as new acquisi-
tions, exits and valuation adjustments
are outlined in this section.
Annual Report 2021
120
Section 5 - Investment in Trifork Labs
NOTE 5.1
Investments in Trifork Labs (continued)
The realized fair value adjustments are in re-
lation to exits from investments and dividend
income. The unrealized fair value adjust-
ments are in relation to new funding rounds
with different valuation of invested compa-
nies and updated business plans leading to
a new valuation.
The fair value of Level 3 investments is de-
rived from DCF-valuation models or recent
transactions (new capital investments by
third parties).
On 17 December 2020, Trifork Labs ApS signed
a term sheet for the sale of its entire invest-
ment in Humio Ltd. According to this term
sheet the Labs investment in Humio Ltd. was
valued at EURk 56,106 as per 31 December
2020.
The cash proceeds of EURk 57,846 were re-
ceived at the beginning of March 2021. As the
amount was fixed in USD the Group recog-
nized an additional fair value adjustment of
EURk 1,740 from foreign exchange gains.
Later in 2021, a payment of EURk 203 for
the sale of Humio Ltd. was received based
on updated calculations as per date of
disposal. This cash in was not expected by
the Group and is recognized as realized fair
value adjustment.
In 2021, the investments in Supertrends AG
and Programmable Infrastructure Solutions
AG were (partially) exited at carrying
amounts of EURk 26 and EURk 350 and
Testlab ApS, Dawn Labs A/S and XCI Holding
A/S were (partially) exited at EURk 634 (of
which EURk 303 were received in treasury
shares).
During 2021, new investments were made
in &Money ApS, Visikon ApS and Develco
A/S and existing investments in Dryp ApS,
Upcycling Forum ApS and Kashet Group AG
were increased , including an execution of a
convertible note in the amount of EURk 68.
Subsequent to the loss of control and
deconsolidation of Dawn Health A/S, the re-
tained investment was transferred to Trifork
Labs segment as of 30 November 2021 (refer
to Note 4.2).
There were no transfers between fair value
measurements levels in 2021.
As of 21 September 2020, an individual
investment in Trifork Labs succeeded with
its IPO at the Nasdaq First North Premier.
As from this date, the fair valuation of this
investment refers to the quoted prices
available and is transferred to Level 1 in the
valuation hierarchy.
!
Significant accounting estimates,
assumptions and judgments
The fair value of level 3 equity investments is
determined based on DCF-valuation models
and/or valuations derived from recent trans-
actions by external parties that have invested
new capital in these companies. A sensitivity
analysis has been performed on this in Note
7.5. Because of the inherent uncertainty of
valuation of private equity in general, the
estimate fair value may differ from the values
that would have been used had an active
market existed for the investments and the
difference regarding individual investments
could be material. Any gain or loss arising
from a change in fair value of investments is
included in separate line item in the income
statement.
§
Accounting policy
Equity investments held by Trifork Labs (the
Group's driver for R&D innovation) are classi-
fied as financial assets at fair value through
profit in accordance with IFRS 9 and the
amendment to IAS 28. Exemptions from Ap-
plying the Equity Method. These venture cap-
ital equity investments are accounted for at
fair value through profit or loss as the Group
elects at initial recognition of the investments
to apply IFRS 9 rather than the equity method
under IAS 28.
Changes in fair value are recognized and
presented separately in the income state-
ment as fair value adjustments on invest-
ments in Trifork Labs.
6
Annual Report 2021
121
Section 6 - Working capital items
NOTE 6.1
Trade receivables and contract assets
(in EURk) 2021 2020
Trade receivables - third parties 36,422 25,065
Trade receivables - related parties 311 468
Expected credit loss allowance -667 -307
Total trade receivables 36,066 25,226
The net increase in 2021 of EURm 10.8 is
due to organic growth and growth from
acquisitions.
Estimates on expected credit losses have
been updated in 2020 due to potential
impacts of the Covid-19 pandemic and
were not changed in 2021.
Trade receivables are non-interest bear-
ing and are generally on terms of 20 to
60 days.
An impairment analysis is performed
at each reporting date using a provi-
sion matrix to measure expected credit
losses. The provision matrix is a com-
bination of two approaches; review of
individual receivables and a portfolio
approach where the provision rates are
based on days past due for groupings of
various customer segments with similar
loss patterns (i.e. startup companies and
other than startup companies). The cal-
culation reflects the probability-weight-
ed outcome, the time value of money
and reasonable and supportable infor-
mation that is available at the reporting
date about past events, current condi-
tions and forecasts of future economic
conditions.
The provision matrix is initially based on
the Group's historical observed default
rates. The Group calibrates the matrix to
adjust the historical credit loss expe-
rience with forward-looking informa-
tion. For instance, if forecast economic
conditions are expected to deteriorate
over the next year, which can lead to an
increased number of defaults, the histor-
ical default rates are adjusted. At every
reporting date, the historical observed
default rates are updated and changes
in the forward-looking estimates are
analyzed.
SECTION 6
Working
capital
items
This section provides information relat-
ed to the Group's working capital items,
especially current receivables and
payables.
2021 2020
Gross carry-
ing amount
Expected
credit loss
allowance Total
Gross carry-
ing amount
Expected
credit loss
allowance Total
Trade receivables
Not due 25,901 -367 25,534 17,319 -40 17,279
Due < 30 days 6,879 -40 6,839 6,046 -28 6,018
Due 30 - 90 days 2,203 -81 2,122 1,378 -54 1,324
Due > 90 days 1,750 -179 1,571 790 -185 605
Total trade receivables 36,733 -667 36,066 25,533 -307 25,226
Contract assets 1,885 -2 1,883 2,112 -5 2,107
Total 38,618 -669 37,949 27,645 -312 27,333
Annual Report 2021
122
Section 6 - Working capital items
NOTE 6.1
Trade receivables and contract assets (continued)
EXPECTED CREDIT LOSS ALLOWANCE
(in EURk) 2021 2020
1 January -312 -262
Addition -712 -169
Utilization 103 58
Reversal 279 57
Disposal of Group companies 10 -
Exchange differences -37 4
31 December -669 -312
§
Accounting policy
Refer to accounting policy in Note 7.2.
NOTE 6.2
Other current liabilities
(in EURk) 2021 2020
Liabilities to government authorities (VAT, social security, etc.) 5,614 8,099
Other liabilities 3,514 2,940
Accrued personnel expenses 5,398 4,749
Total 14,526 15,788
To take into account the effects of the
Covid-19 pandemic, the government au-
thorities in Denmark extended their payment
terms in 2020. This had an initial effect of
increasing of the respective liabilities and
leveled-out again in 2021.
7
Annual Report 2021
123
Section 7 - Capital structure and financing
NOTE 7.1
Shareholders' equity
A. Number of shares (CHF 0.1 nominal value, issued and fully paid-in)
2021 2020
Issued shares as per 31 December 19,744,899 18,637,230
Treasury shares -45,019 -31,093
Outstanding shares as per 31 December 19,699,880 18,606,137
B. Authorized capital
The extraordinary General Meeting of 19
December 2019 authorized the Board of
Directors to increase the share capital
of the company at any time up to 19
December 2021.
The available authorized capital as per
1 January 2021 amounted to CHFk 136
(EURk 125), equating to 1,362,770 reg-
istered shares. With effective date as
of 16 April 2021 the Board of Directors
exercised an authorized share capital
increase by 167,436 shares (EURk 15). A
premium of EURk 3,156 was recognized in
the retained earnings.
The ordinary General meeting of 29 April
2021 replaced the authorized capital by
the extraordinary General meeting as
19 December 2019 and authorized the
Board of Directors to increase the share
capital of the company at any time up to
29 April 2023 by an amount not exceed-
ing CHFk 373 (EURk 340) through the
issue of up to 3,727,446 registered shares,
payable in full, each with a nominal val-
ue of CHF 0.10 (EUR 0.09) and excluding
shareholders' subscription rights.
With effective date as of 28 May 2021
the Board of Directors increased share
capital from authorized share capital in
an amount of EURk 86 (940,233 shares). A
premium of EURk 18,860 was allocated to
the retained earnings.
The available authorized capital as of
31 December 2021 amounts to CHFk 279
(EURk 254). This equates to 2,787,213 reg-
istered shares.
C. Conditional capital
The extraordinary General Meeting of 19
December 2019 authorized the condi-
tional capital of CHFk 50 (EURk 46) by is-
suing a maximum of 500,000 registered
shares with a par value of CHF 0.10 (EUR
0.09) each, to be fully paid up, excluding
shareholders' subscription rights.
D. Dividend
The General Meeting of 29 April 2021
approved a dividend of EUR 0.58 per reg-
istered share (2020: EUR 0.05) to be paid
from retained earnings. The dividend of
EURk 10,871 was paid out on 5 May 2021
(2020: EURk 905).
The Board of Directors will submit a pro-
posal to the Annual General Meeting of
Trifork Holding AG on 20 April 2022 to pay
a dividend for the reporting period of EUR
0.38 per registered share.
SECTION 7
Capital
structure and
financing
This section includes notes related to
capital structure and financing, includ-
ing financial risks.
As a consequence of its operations, in-
vestments and financing, Trifork Group
is exposed to a number of financial
risks that are monitored, managed and
addressed.
Annual Report 2021
124
Section 7 - Capital structure and financing
NOTE 7.1
Shareholders' equity (continued)
E. Treasury shares
Number of shares
Total amount
(in EURk)
1 January 2020 144,462 1,250
Acquisitions 581,524 7,299
Disposals -459,586 -5,249
Acquisition of Group companies -235,307 -2,776
31 December 2020 31,093 524
Acquisitions 46,851 1,030
Capital increase 167,436 -
Disposals -2,570 -53
Acquisition of Group companies -102,073 -11
Acquisition of non-controlling interests -95,718 -496
31 December 2021 45,019 994
In 2021, the impact of the transactions with
treasury shares in retained earnings is EURk 2
(2020: EURk 228).
§
Accounting policy
Share capital equals the nominal value of all
shares issued.
Treasury shares are measured at cost and
deducted from shareholders equity. Gains or
losses from the disposal of treasury shares
are recognized directly in retained earnings.
NOTE 7.2
Financial instruments
Financial assets
(in EURk) 2021 2020
Other financial assets 3,240 4,296
Trade receivables 36,066 25,226
Other current receivables 825 559
Cash and cash equivalents 44,628 17,957
Total - at amortized cost
1
84,759 48,038
Investments in Trifork Labs - at fair value through profit or loss (Levels 1
and 3, see Note 5.1)
47,259 75,861
Total financial assets 132,018 123,899
Financial liabilities
(in EURk) 2021 2020
Redemption amount of put-options 36,163 24,240
Borrowings from financial institutions 27,528 55,350
Lease liabilities 24,606 21,851
Trade payables 7,262 4,754
Other 945 357
Total - at amortized cost
2
96,504 106,552
Contingent consideration liabilities - at fair value
through profit and loss (Level 3)
6,916 5,378
Total financial liabilities 103,420 111,930
1 The fair value of short-term financial assets at amortized costs approximate their carrying amounts.
2 The fair value of financial liabilities at amortized costs approximate their carrying amounts due to being either
of short-term nature or by virtue of floating interest rates that are regularly reset.
The carrying amount of redemption amount of put-options is also considered to be an approximation of fair
value as the strike prices are variable amounts based on the performance of the underlying company.
Annual Report 2021
125
Section 7 - Capital structure and financing
NOTE 7.2
Financial instruments (continued)
Financial instruments through
profit and loss
For details of investments in Trifork Labs refer
to Note 5.1.
For details of contingent consideration liabil-
ities refer to Note 4.3.
§
Accounting policy
Financial assets
Initial recognition and measurement
The Group classifies its financial assets, at
initial recognition, in the following categories:
subsequently measured at amortized
cost and,
fair value through profit or loss.
The classification depends on the financial
asset's contractual cash flow character-
istics and the Group's business model for
managing them. With the exception of trade
receivables that do not contain a significant
financing component or for which the Group
has applied the practical expedient, the
Group initially measures a financial asset at
its fair value plus, in the case of a financial
asset not at fair value through profit or loss,
transaction costs. Trade receivables that do
not contain a significant financing compo-
nent or for which the Group has applied the
practical expedient are initially measured at
the transaction price determined under IFRS
15.
Regular way purchases or sales of financial
assets are recognized on the date the Group
makes a commitment to buy or sell the asset.
Financial assets are derecognized when the
rights to the cash flows have expired or if
the right to receive the cash flows has been
transferred and the Group has substantially
transferred all risks and rewards incidental to
ownership.
Financial assets are classified as current if
payment is due within one year or less. If not,
they are presented as non-current financial
assets.
Subsequent measurement
For purposes of subsequent measurement,
Trifork Group has financial assets at amor-
tized cost (debt instruments) as well as finan-
cial assets at fair value through profit or loss
(Trifork Labs investments in equity securities).
Trifork measures financial assets at amor-
tized cost if both of the following conditions
are met:
The financial asset is held within a
business model with the objective to
hold financial assets in order to collect
contractual cash flows, and
The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding
Financial assets at amortized cost are subse-
quently measured using the effective interest
(EIR) method and are subject to impairment.
Gains and losses are recognized in profit or
loss when the asset is derecognized, modi-
fied or impaired.
Trifork Labs focuses on investing in new
technology start-up activities and invests in
selected technology companies that are at
the forefront of technological development
with new and innovative software products.
These venture capital equity investments are
accounted for at fair value through profit or
loss as the Group elects at initial recognition
of the investments to apply IFRS 9 rather than
the equity method under IAS 28.
Changes in fair value are recognized and
presented separately in the income state-
ment as fair value adjustments on invest-
ments in Trifork Labs.
Impairment of financial assets
The Group recognizes an allowance for
expected credit losses (ECLs) for all debt
instruments not held at fair value through
profit or loss. ECLs are based on the differ-
ence between the contractual cash flows due
in accordance with the contract and all the
cash flows that the Group expects to receive,
discounted at an approximation of the origi-
nal effective interest rate. The expected cash
flows will include cash flows from the sale of
collateral held or other credit enhancements
that are integral to the contractual terms.
For trade receivables and contract assets,
the Group applies the simplified approach in
calculating ECLs. Therefore, the Group does
not track changes in credit risk, but instead
recognizes a loss allowance based on life-
time ECLs at each reporting date. The Group
has established a provision matrix that is
based on its historical credit loss experience
the business knowledge, adjusted for for-
ward-looking factors specific to the debtors
and the economic environment.
For other financial assets, such as loans to
investments in Trifork Labs, the Group has
established a provision matrix based on for-
ward-looking factors specific to the debtors
nature and the economic environment.
Annual Report 2021
126
Section 7 - Capital structure and financing
NOTE 7.2
Financial instruments (continued)
Cash and cash equivalents
The position includes cash on hand, accounts
at financial institutions and short-term bank
deposits with original maturities of three
months or less.
Financial liabilities
Initial recognition and measurement
The Group classifies financial liabilities, at
initial recognition, as:
financial liabilities at fair value through
profit or loss
financial liabilities subsequently meas-
ured at amortized costs
All financial liabilities are recognized initially
at fair value and, in the case of instruments
not subsequently measured at fair value
through profit or loss, net of directly attributa-
ble transaction costs.
Subsequent measurement
Contingent consideration liabilities are
subsequently measured at fair value through
profit or loss.
All other financial liabilities are subsequently
measured at amortized cost using the effec-
tive interest method.
Trade payables and financial liabilities are
classified as current liabilities if payment is
due within one year or less. If not, they are
presented as non-current liabilities.
NOTE 7.3
Financial liabilities
(in EURk) 2021 2020
Borrowings from financial institutions 27,528 55,350
Lease liabilities 24,606 21,851
Others 945 357
Financial liabilities related to financing activities 53,079 77,558
Contingent consideration liabilities 6'916 5,378
Redemption amount of put-options 36'163 24,240
Financial liabilities related to business combination and acquisition
of non-controlling interests
43'079 29,618
Total financial liabilities, as presented in the statement of financial
position
96,158 107,176
- of which non-current 60,405 66,879
- of which current 35,753 40,297
For details on contingent consideration lia-
bilities, refer to Note 4.3.
For details on the redemption amount of
put-options, refer to Note 4.4.
Annual Report 2021
127
Section 7 - Capital structure and financing
NOTE 7.3
Financial liabilities (continued)
Changes in liabilities arising from financing activities
(in EURk)
Current borrow-
ings from finan-
cial institutions
and others
Current lease
liabilities
Non-current
borrowings from
financial institu-
tions and others
Non-current
lease liabilities Total
1 January 2020 11,312 3,665 9,327 11,623 35,927
Cash flows (net) 591 -3,926 34,444 - 31,109
New leases - 251 - 10,211 10,462
New leases from business combinations - 162 - 1,959 2,121
Cancellation of lease contracts - -232 - -1,550 -1,782
Reclassifications 22,548 4,587 -22,548 -4,587 -
Exchange differences 97 85 -65 -397 -280
31 December 2020 34,548 4,592 21,158 17,259 77,557
Cash flows (net) -27,599 -4,986 511 - -32,074
New leases - 709 - 7,339 8,048
New leases from business combinations - 36 - 142 178
Cancellation of lease contracts - -38 - -566 -604
Disposal of Group companies - -142 - -218 -360
Reclassifications 12,143 4,876 -12,143 -4,876 -
Exchange differences -309 -12 164 491 334
31 December 2021 18,783 5,035 9,690 19,571 53,079
§
Accounting policy
Refer to accounting policy in Note 7.2.
NOTE 7.4
Guarantees and pledged
assets
To secure interest-bearing liabilities of EURk
12,023 (2020: EURk 32,256) the Group has
pledged the shares held in Nine A/S until full
repayment of the liabilities.
To secure interest-bearing liabilities of EURk
15,358 (2020: EURk 38,609) the Group has en-
tered into negative pledge agreements for
the shares held in Netic A/S and for the as-
sets in Testhuset A/S, Trifork Smart Enterprise
A/S, Nine A/S and SAPBASIS ApS until full
repayment of the liabilities.
Furthermore, the usual general terms and
conditions of the financial institutions may
include options for offsetting credit against
open obligations.
Annual Report 2021
128
Section 7 - Capital structure and financing
NOTE 7.5
Financial risk management
The Trifork Group is, as a result of its opera-
tions, its investing and financing activities,
exposed to a variety of financial risks, includ-
ing market risk (currency, interest and equity
price risk), credit risks and liquidity risks.
The Group manages its financial risks cen-
trally. The overall framework for the financial
risk management is defined in the Group’s
financial policy and approved by the Board
of Directors.
The Group’s financial management is
solely to manage and reduce the financial
risks that are a direct result of the Group’s
operations and its investing and financing
activities. The Group continuously calculates
current financial positions related to both
financial and non-financial assets. Monthly,
Management reviews the Group’s risk expo-
sure in areas such as customers, backlogs,
currencies, etc. in relation to budgets and
forecasts.
Market risks
CURRENCY RISKS
The major currencies that the different
business units in the Group operate in are
EUR, CHF, DKK, USD and GBP. The nature of all
Group Companies is that they most often
invoice their customers and are invoiced
by vendors in the same currency as their
functional currency and thus they have
only minor positions of either receivables or
liabilities in other currencies than the func-
tional currency and the respective risk is not
considered significant.
At all times the Group monitor the net expo-
sure to different currencies other than EUR,
which is the reporting currency in the Group
and netting any net exposure internally
between the business units within the Group
before using any other financial instru-
ments. In the financial years 2021 and 2020
the Group did not cover any currency risks
through derivative financial instruments.
INTEREST RISK
Trifork has, as a result of the Group’s invest-
ing and financing activities, a risk exposure
related to fluctuations in interest rates in
Europe and abroad. The primary interest rate
exposure is related to fluctuations in CIBOR
and EURIBOR.
The Group’s credit facilities are all at a vari-
able interest rate. All interest rates are fixed
every three months and all rates are tied to
the development of the general market rate
for each currency.
For the Group’s bank deposits, liabilities with
financial institutions, variable lease liabilities
and other liabilities with variable interests,
an increase of 1%-points, compared to the
balance sheet interest rates, would have a
negative impact on earnings before tax and
shareholders’ equity of EURk -171 (2020: EURk
-374). A similar decrease in interest rates
would result in a corresponding positive
impact.
EQUITY PRICE RISK
With its investments in Trifork Labs the Group
is exposed to equity price risks of the individ-
ual investments. Changes in valuations can
have an impact on earnings before tax.
The investments are exposed to a variety
of market risk factors, which may change
significantly over time. As a result, measure-
ment of such exposure at any given point in
time may be difficult given the complexity
and limited transparency of the underlying
investments. Therefore, a sensitivity analysis
is deemed to be of limited explanatory value
for investments in Trifork Labs.
In order to demonstrate the sensitivity, the
average change in the OMX Copenhagen
SmallCap index for the reporting period is
calculated and used as input to the sensi-
tivity analysis. The result of this is a change
of 37.1% in 2021. If the value of the continuing
investments (based on year-end values)
had increased or decreased by the same
percentage with all other variables held
constant, the impact on earnings before tax
would have been EURk 7,327 in 2021 (2020:
44.9%, EURk 14,616).
On actual terms, Trifork Group accounts for
fair value gains for the investments in Trifork
Labs in 2021 of EURk 5,022 (2020: EURk 41,259).
The maximum values at risk for Trifork Labs
are the total amounts of the individual
investments.
Annual Report 2021
129
Section 7 - Capital structure and financing
NOTE 7.5
Financial risk management (continued)
Liquidity risk
It is the Group’s policy in connection with
credit facilities to ensure maximum flexibility
by diversifying borrowing on maturity, rene-
gotiation dates and counter parties, taking
pricing into account. The Group’s liquidity
reserve consists of cash and cash equiv-
alents and unutilized credit facilities. The
Group aims to have sufficient cash resourc-
es to continue to act appropriately in case of
unforeseen demands for liquidity.
The following table includes the contractual-
ly agreed cash flows (principal and inter-
est) of the Group’s financial liabilities in the
corresponding time span.
The maximum amounts at risk for contingent
consideration liabilities is EURk 0 (maximal
contractual payments vs. carrying amount).
(in EURk) Carrying amount
Contractual
payments < 1 year 1-5 years > 5 years
2021
Redemption amount of put-options 36,163 36,163 10,895 25,268 -
Contingent consideration liabilities 6,916 6,916 1,038 5,878 -
Borrowings from financial institutions 27,528 28,613 18,917 9,692 4
Lease liabilities 24,606 26,285 5,547 17,264 3,474
Trade payables 7,262 7,262 7,262 - -
Other 945 995 177 762 56
Total financial liabilities 103,420 106,233 43,836 58,863 3,534
2020
Redemption amount of put-options 24,240 24,328 - 24,328 -
Contingent consideration liabilities 5,378 5,378 1,156 4,222 -
Borrowings from financial institutions 55,350 57,015 35,269 21,738 8
Lease liabilities 21,851 23,273 5,035 15,378 2,860
Trade payables 4,754 4,754 4,754 - -
Other 357 382 55 221 106
Total financial liabilities 111,930 115,129 46,268 65,887 2,974
Annual Report 2021
130
Section 7 - Capital structure and financing
NOTE 7.5
Financial risk management (continued)
The liquidity situation breaks down as follows as of the reporting date:
(in EURk) 2021 2020
Cash and cash equivalents 44,628 17,957
Committed credit lines 27,613 55,634
Borrowings from financial institutions -27,528 -55,350
Total 44,713 18,241
Management considers capital resources
and access to new credit facilities to be
reasonable in relation to the current need for
financial flexibility.
The Group is not subject to any collateral
security other than deposits already paid.
Credit risk
Credit risks arise from the possibility that the
counterparty to a transaction may not be
able or willing to discharge its obligations,
thereby causing the Group to suffer a finan-
cial loss. These risks are primarily related to
receivables, contract assets, cash and other
financial assets. The management of credit
risk is based on internal credit limits for cus-
tomers and counter parties.
RECEIVABLES AND CONTRACT ASSETS
Trade receivables and contract assets are
subject to active risk management. Doubtful
accounts are assessed for impairment
individually. Indications of possible impair-
ment include significant financial difficulty
or insolvency of the customer as well as
situations where financial restructuring is
probable or the customer has already de-
faulted. Due to the varied customer struc-
ture, there are no generally applicable credit
limits across the Group. However, customers'
creditworthiness is tested systematically,
considering the financial situation, past ex-
perience and/or other factors. The likelihood
of risk concentrations in this area is limited
by the fact that the Group's customer base
is broad, geographically diversified and
spread across different business units.
The Group does not hold any specific col-
lateral for trade receivables and contract
assets as of year-end 2021 (2020: none).
Management does not expect any material
losses from receivables and contract assets
in excess of the allowances recognized. The
maximum risk of default is the total carrying
amount of the non-current financial assets
and receivables set out in Notes 4.9 and 6.1.
Note 6.1 contains disclosures on maturities,
expected credit loss calculation and allow-
ance development of trade receivables and
contract assets.
CASH AND CASH EQUIVALENTS
Current bank balances are held exclusively
with banks that have a solid credit rating.
The risk of default is mitigated by maintain-
ing business relationships with a number of
banks and other financial institutions and by
monitoring the credit risk continuously.
Capital management
Capital management at the Trifork Group
focuses on safeguarding the Group’s ability
to long-term profitable growth and healthy
development, generating an appropriate re-
turn for shareholders and optimizing finan-
cial ratios while considering cost of capital.
The Group can adjust the dividend payout,
return capital to shareholders or issue new
shares to reach these targets and increase
or reduce external financing.
No adjustments or changes were made to
the capital management objectives or poli-
cies in the reporting periods 2020 and 2021.
The Group uses equity ratio to monitor the
capital structure. The equity ratio expresses
shareholders’ equity as a percentage of total
capital. It is a long-term goal of the Trifork
Group to keep a conservative self-financing
ratio. Equity ratios as of 31 December are:
(in EURk) 2021 2020
Equity attributable to the shareholders
of Trifork Holding AG
109,798 80,494
Total assets 245,664 229,109
Equity ratio 44.7% 35.1%
Further, Management reviews also net-debt-
to-EBITDA-ratio for its financial leverage
management. The net debt-to-EBITDA ratio
is a debt ratio that shows how many years
it would take for a company to pay back its
debt if net debt and EBITDA are held con-
stant. Ratios as of 31 December are:
(in EURk) 2021 2020
Borrowings from financial institutions 27,528 55,350
Cash and cash equivalents -44,628 -17,957
Net (cash)/debt -17,100 37,393
EBITDA 47,376 16,975
Net-debt-to-EBITDA-ratio (x) -0.36x 2.20x
8
Annual Report 2021
131
Section 8 - Other disclosures
NOTE 8.1
Related parties
Business relationships exist between
Trifork Holding AG and its subsidiaries
as well as members of the Board of
Directors and Executive Management.
Furthermore, related parties include en-
tities, in which the aforementioned circle
of people have control, joint control or
significant influence, associated com-
panies and investments in Trifork Labs.
All business transactions with related
parties are carried out at arm's length.
Group companies
An overview of consolidated subsidiar-
ies is provided in Note 8.6. Transactions
between Trifork Holding AG and its
subsidiaries as well as between subsidi-
aries of the Group were eliminated in the
consolidated financial statements.
Trifork A/S and Trifork AG are responsible
for certain administrative and staff-re-
lated assignments for subsidiaries, asso-
ciated companies and Labs investments,
including IT-operations, maintenance,
bookkeeping, a shared sales organi-
zation and management tasks. These
assignments are invoiced at fixed prices
to the related parties.
Remuneration of the Board of Directors and Executive Management
(in EURk) 2021 2020
Board of Directors
Short-term benefits 360 171
Executive Management
Short-term benefits 2,566 2,729
Share-based payments 247 -
Post-employment benefits 145 110
Total Executive Management 2,958 2,839
Total 3,318 3,011
Transactions with related parties
(in EURk)
Amounts
owed by
related
parties
Services
provided
to related
parties
Services
received
from relat-
ed parties
1
Leases
from
related
parties
Assets
sold to
related
parties
2021
Associated companies 546 405 - - -
Investments in Trifork Labs 1,275 1,067 111 - 350
Executive Management 16 14 8 236 89
Total 1,837 1,486 119 236 439
2020
Associated companies 359 162 10 - -
Investments in Trifork Labs 2,454 1,440 234 - 650
Board of Directors - - 1 - -
Executive Management - 23 - 106 -
Total 2,813 1,625 244 106 650
1 Including salaries
Disclosure of transactions and balances related to investments in Trifork Labs includes
only those entities in which the Group has significant influence.
SECTION 8
Other
disclosures
This section includes other disclo-
sures required by IFRS, but which are of
secondary importance to the under-
standing of the financial performance
of Trifork Group.
Annual Report 2021
132
Section 8 - Other disclosures
NOTE 8.2
Non-controlling interests
A. Acquisition of non-controlling
interests
In the first quarter 2021, the Group acquired
approx. 5% of the shares in Erlang Solutions
Ltd. for EURk 704 and brought the total share-
holding in the company to 55.7%.
In the second quarter 2021, the Group ac-
quired further 10.6% of the shares in Erlang
Solutions Ltd for 65’953 treasury shares, val-
ued at EUR 19.0/share, plus charges of EURk
22 and brought the total shareholding in the
company to 66.3%.
In the third quarter 2021, Erlang Solutions Ltd
paid out a dividend based on the ownership
as of the end of the first quarter 2021. EURk
86 of dividends paid to the previous owners
of the 10.6% stake acquired by the Group in
the second quarter, was debited to retained
earnings of the parent.
In the second quarter 2021 the Group ac-
quired 5.1% of the shares in Testhuset A/S
for EURk 128. The total shareholding in the
company is at 75.1%.
In the fourth quarter 2021 the Group acquired
6.3% of the shares in Testhuset A/S for EURk
190 and brought the total shareholding in the
company to 81.4%.
In the second quarter 2021 the Group ac-
quired 25% of the shares in Duckwise ApS
for a cash payment of EURk 505 and 29’765
treasury shares, valued at EUR 19.0/share.
The total shareholding in the company is at
100%.
In the fourth quarter 2021 the Group sold 10%
of the shares in Trifork Operations AG for EURk
9 and brought the total shareholding in the
company to 90%.
B. Disclosure of significant
non-controlling interests
The Group companies Netic A/S, Aalborg
(DK), Testhuset A/S, Ballerup (DK) and Nine
A/S, Copenhagen (DK) which all operate
primarily in Denmark and are controlled
by Trifork Group, have significant non-con-
trolling interests.
For non-controlling interests in Netic A/S,
Testhuset A/S and Nine A/S put options
exists. Therefore, Trifork has derecognized
the non-controlling interests at the report-
ing date and accounts for the difference
between the amount derecognized and the
present value of the redemption liability for
put-options in retained earnings.
(in EURk) Netic A/S Testhuset A/S Nine A/S
2021
Non-controlling interests
1
12.0% 18.6% 30.0%
Share of net income 127 195 1,071
Share of shareholders' equity
2
974 319 4,762
2020
Non-controlling interests
1
12.0% 30.0% 30.0%
Share of net income 203 -31 368
Share of shareholders' equity
2
1,072 300 4,294
1 Voting rights equal capital share.
2 Non-controlling interests are subject to put-options, amount represents accumulated non-controlling interests
prior to derecognition.
Annual Report 2021
133
Section 8 - Other disclosures
NOTE 8.2
Non-controlling interests (continued)
Condensed financial information of the re-
spective companies, including goodwill and
fair value adjustments recognized on acqui-
sition of the Group companies, but before
elimination of inter-company transactions:
2021 2020
(in EURk) Netic A/S Testhuset A/S Nine A/S Netic A/S Testhuset A/S Nine A/S
Income statement 02/09 - 31/12
Revenue 24,350 8,615 29,576 22,690 7,566 9,319
Net income 1,070 721 3,570 1,688 -102 1,225
Total comprehensive income 1,063 718 3,570 1,691 -102 1,228
Statement of financial position
Current assets 7,414 2,340 12,114 7,421 1,961 9,907
Non-current assets 22,892 4,955 37,518 18,019 5,115 39,274
Total assets 30,306 7,295 49,632 25,440 7,076 49,181
Current liabilities 9,035 1,067 5,648 5,764 1,116 4,854
Non-current liabilities 7,407 458 3,827 4,995 906 5,738
Total liabilities 16,442 1,525 9,475 10,759 2,022 10,592
Net assets 13,864 5,770 40,157 14,681 5,054 38,589
Cash flow statement 02/09 - 31/12
Cash flow from operating activities 1,435 226 3,225 6,462 1,081 -1,182
Change in cash and cash equivalents -3,495 278 695 3,522 805 -1,352
Dividends paid to non-controlling interests -226 - -605 -193 - -
Other non-controlling interests are
individually not material.
Annual Report 2021
134
Section 8 - Other disclosures
NOTE 8.3
Government grants
(in EURk) 2021 2020
Research and development - WBSO (NL) 424 389
Research and development expenditure credit (UK) 241 211
Covid-19 related grants 106 175
Total government grants 771 775
Recognized in the income statement as:
(in EURk) 2021 2020
Personnel costs 498 564
Other operating income 273 211
Total government grants 771 775
NOTE 8.4
Fees to independent Group auditor
(in EURk) 2021 2020
Statutory audit 315 272
Audit related engagements 856 88
Total audit-related services 1,171 360
Tax consultancy 23 25
Other services - 397
Total non-audit services 23 422
Total fees to independent Group auditor 1,194 782
NOTE 8.5
Events after the balance sheet date
The 2021 consolidated financial state-
ments were reviewed by the Audit & Risk
Committee on 15 March 2022 and approved
and released for publication by the Board of
Directors on 16 March 2022.
The financial statements are subject to
approval by the Annual General Meeting
scheduled for 20 April 2022.
Annual Report 2021
135
Section 8 - Other disclosures
NOTE 8.6
Trifork Group companies
2021 2020
Company
1
Registered office Activity
Share capital in
local currency
Trifork A/S Aarhus, Denmark
DKK 18,000,000 100% 100%
Trifork Public A/S Aarhus, Denmark
DKK 737,000 100% 100%
Netic A/S Aalborg, Denmark
DKK 500,000 88% 88%
Testhuset A/S Ballerup, Denmark
DKK 509,259 81% 70%
Trifork Smart Enterprise A/S
2
Copenhagen, Denmark DKK 500,000 100% 100%
Trifork Smart Enterprise SL
3
Barcelona, Spain EUR 3,000 100% 100%
SAPBASIS ApS Ballerup, Denmark
DKK 81,000 50% 50%
Trifork Smart Device ApS Aarhus, Denmark
DKK 158,335 70% 70%
Nine A/S Copenhagen, Denmark
DKK 500,000 70% 70%
Dawn Holding ApS
4
Copenhagen, Denmark DKK 557,938 33% 51%
Trifork AG Schindellegi, Switzerland
CHF 920,000 100% 100%
Trifork Academy Inc. San Francisco, USA
USD 3 100% 100%
Trifork Ltd. London, United Kingdom
GBP 1 100% 100%
Open Credo Ltd. London, United Kingdom
GBP 1,522 100% 100%
Code Node Space & Events Ltd. London, United Kingdom
GBP 100 100% 100%
The Perfect App Ltd. London, United Kingdom
GBP 10,000 100% 100%
Trifork B.V. Amsterdam, Netherlands
EUR 18,000 100% 100%
Trifork Eindhoven B.V. Eindhoven, Netherlands
EUR 1,000 100% 100%
Trifork Germany GmbH Berlin, Germany
EUR 25,000 100% 100%
Erlang Solutions Ltd. London, United Kingdom
GBP 103,218 66% 51%
Erlang Solutions AB Stockholm, Sweden
SEK 100,000 66% 51%
Erlang Solutions Inc. Newcastle, USA
USD 100 66% 51%
Erlang Solutions SP. Z O.O. Krakow, Poland
PLN 5,000 66% 51%
Erlang Solutions Hungary Kft. Budapest, Hungary
EUR 15,000 66% 51%
Duckwise ApS Aarhus, Denmark
DKK 163,265 100% 75%
Trifork Academy and Software Solutions SL Palma, Spain
EUR 3,000 100% 100%
Trifork Labs AG Schindellegi, Switzerland
CHF 100,000 100% 100%
Trifork Labs ApS Aarhus, Denmark
DKK 367,647 100% 100%
Trifork Operations AG Schindellegi, Switzerland
CHF 100,000 90% n/a
Vilea GmbH Zurich, Switzerland
CHF 40,000 100% -
Vilea Austria GmbH Vienna, Austria
EUR 35,000 100% -
Strongminds ApS Aarhus, Denmark
DKK 300,000 100% -
Software development
Sales
Service Company
Academy
Subholding company
1 List includes active companies only
2 Renamed from Invokers A/S in 2020
3 Renamed from Invokers Smart Enterprise SL in
2020
4 Renamed from Trifork eHealth ApS in 2020 /
swapped into shares of Dawn Holding ApS in
2021
Bold - Directly held by Trifork Holding AG
Regular - Indirectly held subsidiaries
Annual Report 2021
136
Trifork Group Consolidated Financial Statements
To the General Meeting of Trifork Holding AG , Feusisberg
Statutory auditor’s report on the audit of the
consolidated financial statements
Opinion
We have audited the consolidated financial statements of Trifork Holding AG and its
subsidiaries (the Group), which comprise the consolidated statement of financial
position as at 31 December 2021 and the consolidated income statement, consol-
idated statement of comprehensive income, consolidated statement of changes
in shareholders’ equity and consolidated statement of cash flows for the year then
ended, and notes to the consolidated financial statements, including a summary of
significant accounting policies.
In our opinion, the consolidated financial statements (pages 83 to 135) give a true
and fair view of the consolidated financial position of the Group as at 31 December
2021, and its consolidated financial performance and its consolidated cash flows for
the year then ended in accordance with International Financial Reporting Standards
(IFRS) and comply with Swiss law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on
Auditing (ISAs) and Swiss Auditing Standards. Our responsibilities under those pro-
visions and standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with the provisions of Swiss law
and the requirements of the Swiss audit profession, as well as the International
Code of Ethics for Professional Accountants (including International Independence
Standards) of the International Ethics Standards Board for Accountants (IESBA Code)
and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated financial statements of the current
period. These matters were addressed in the context of our audit of the consolidated
financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. For each matter below, our description of how our
audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the consolidated financial statements section of our report, including in relation to these mat-
ters. Accordingly, our audit included the performance of procedures designed to respond to
our assessment of the risks of material misstatement of the consolidated financial statements.
The results of our audit procedures, including the procedures performed to address the mat-
ters below, provide the basis for our audit opinion on the consolidated financial statements.
Revenue recognition
Risk The Group’s revenues amounted to CHF 159 million as of 31 December
2021. The Group recognizes revenue from contracts with customers as
disclosed in Note 2.2 of the consolidated financial statements. For cer-
tain contracts related to new service offerings, significant judgement is
required to determine the appropriate accounting, including identify-
ing performance obligations and the timing of the transfer of control
of goods or services for each of those performance obligations. Due to
the level of judgment involved in the revenue assessment and because
revenue is material to the financial statements this matter was consid-
ered significant to our audit.
Our audit response We assessed the Company’s internal controls over revenue recognition
and managements' process of evaluating the appropriate accounting
for contracts with customers. We inspected a sample of new contracts
and evaluated management’s judgement in relation to identifying
performance obligations and the timing of the transfer of control. We
performed data analytics procedures and analyzed revenue trends
month over month as well as year over year. Our audit procedures did
not lead to any reservations regarding revenue recognition.
Zurich, 16 March 2022
Ernst & Young Ltd
Annual Report 2021
137
Trifork Group Consolidated Financial Statements
Impairment of goodwill
Risk Goodwill represents 20% of the Group’s total assets and 43% of the
Group’s total shareholders’ equity as of 31 December 2021. As stated in
Note 4.6 to the consolidated financial statements, goodwill is subject
to an annual impairment test or whenever impairment indicators are
present. The Group performed its annual impairment test of goodwill
in the fourth quarter of 2021 and determined that there was no impair-
ment. In determining the value in use of cash-generating units, the
Company must apply judgment in estimating – amongst other factors
– future net sales and EBITDA margins covering a 5-year period, long-
term growth and discount rates. Due to the significance of the carry-
ing amount of goodwill and the judgment involved in performing the
impairment test, this matter was considered significant to our audit.
Our audit response We assessed the Company’s internal controls over its annual im-
pairment test and key assumptions applied. We involved valuation
specialists to assist in examining the Company’s valuation model and
in analyzing the underlying key assumptions, including long-term
growth and discount rates. We evaluated the composition of man-
agement’s cash flow forecasts and the process by which they were
derived, including testing the mathematical accuracy of the underlying
calculations. We assessed the assumptions regarding future net sales
and EBITDA margins, historical accuracy of the Company’s estimates
and considered its ability to produce accurate long-term forecasts. We
evaluated the sensitivity in the valuation resulting from changes to the
key assumptions applied (e.g., CAGR net sales, average EBITDA margin)
and compared these assumptions to market data. Our audit proce-
dures did not lead to any reservations concerning the impairment test
for goodwill.
Valuation of Trifork Labs investments
Risk Investments in Trifork Labs amounted to CHF 47 million as of 31
December 2021. As described in Note 5.1 to the consolidated financial
statements, investments in Trifork Labs are accounted for at fair value
through the income statement. The fair value of Level 1 investments is
based on quoted prices in active and liquid markets whereas the fair
value of Level 3 investments is determined using discounted cash flow
models or valuations derived from recent transactions. For certain such
Level 3 investments, significant estimates and judgements are required
to determine the valuation and the timing of the fair value adjustments.
Due to the significance of the carrying amount of investments in Trifork
Labs and the level of judgment involved in the overall fair value meas-
urement, this matter was considered significant to our audit.
Our audit response We evaluated the Trifork Labs valuation process through walkthrough
procedures and assessing underlying controls to determine manage-
ments' process of identifying and recording fair value adjustments. We
obtained the valuation reports prepared by management and tested
them against recent transactions or contracts. For investments which
are valued by using the discounted cash flow model we performed
procedures to evaluate the valuation model applied as well as the
projected financial information used for the valuation, including com-
paring it to budgeted information presented to the Board of Directors.
Our audit procedures did not lead to any reservations regarding the
valuation of the investments in Trifork Labs.
Annual Report 2021
138
Trifork Group Consolidated Financial Statements
Other information in the annual report
The Board of Directors is responsible for the other information in the annual report.
The other information comprises all information included in the annual report, but
does not include the consolidated financial statements, the stand-alone financial
statements, remuneration report and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other infor-
mation in the annual report and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the consolidated financial statements, our respon-
sibility is to read the other information in the annual report and, in doing so, con-
sider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit, or otherwise appears to
be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibility of the Board of Directors for the consolidated financial
statements
The Board of Directors is responsible for the preparation of the consolidated financial
statements that give a true and fair view in accordance with IFRS and the provisions
of Swiss law, and for such internal control as the Board of Directors determines is
necessary to enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is respon-
sible for assessing the Group’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless the Board of Directors either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated
financial statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit con-
ducted in accordance with Swiss law, ISAs and Swiss Auditing Standards will always
detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could rea-
sonably be expected to influence the economic decisions of users taken on the basis
of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located at the website of EXPERTsuisse: http://www.expertsuisse.ch/
en/audit-report-for-public-companies. This description forms part of our auditor’s
report.
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard
890, we confirm that an internal control system exists, which has been designed for
the preparation of consolidated financial statements according to the instructions of
the Board of Directors.
We recommend that the consolidated financial statements submitted to you be
approved.
Tobias Meyer
Licensed audit expert (Auditor in Charge)
Andreas Forster
Licensed audit expert
140
Annual Report 2020
Trifork Holding AG Financial Statements
Income statement .......................................................................................................................................141
Statement of financial position
............................................................................................................ 141
Statement of changes in shareholders' equity
...........................................................................142
Notes to the financial statements
...................................................................................................... 143
Appropriation of available earnings
.................................................................................................146
Statutory auditor's report
........................................................................................................................ 147
Financial statements
Contents
Annual Report 2021
141
Trifork Holding AG Financial Statements
Income Statement
(in CHFk) Notes 2021 2020 (in CHFk) Note 2021 2020
Dividend income 46,094 9,652 Cash and cash equivalents 11,353 367
Gain from sale of investments 376 1,096 Other current receivables
Other financial income 1 1,872 1,115 - from third parties 114 -
Total income 48,342 11,863 - from investments 378 284
Loans to investments 1,125 8,167
Accruals 20 62
Administrative expenses 2 -4,290 -2,332 Total current assets 12,990 8,880
Financial expenses 3 -3,475 -1,385 Investments 4 72,650 63,196
Direct taxes - -53 Loans to investments 30,545 737
Total expenses -7,765 -3,770 Total non-current assets 103,195 63,933
Net income 40,577 8,093 ASSETS 116,185 72,813
Interest-bearing current liabilities
- to third parties - 1,430
- to investments 3,301 3,943
Other current liabilities
- to third parties 8 333
- to investments 1,346 941
Accrued liabilities and deferred income 369 492
Total current liabilities 5,024 7,139
Interest-bearing non-current liabilities - 5,271
Total non-current liabilities - 5,271
Total liabilities 5,024 12,410
Share capital 5 1,974 1,864
Capital contribution reserve 8 23,928 11
Other capital reserve 21,861 23,349
General legal reserve 410 410
Retained earnings 64,070 35,338
Treasury shares 9 -1,082 -569
Shareholders' equity 111,161 60,403
LIABILITIES AND SHAREHOLDERS' EQUITY 116,185 72,813
Statement of Financial Position
Annual Report 2021
142
Trifork Holding AG Financial Statements
Statement of Changes in Shareholders' Equity
(in CHFk) Share capital
Capital contri-
bution reserve
Other capital
reserve
General legal
reserve
Legal reserve for
treasury shares
held by Group
companies Retained earnings Treasury shares Total equity
1 January 2020 1,864 965 24,638 866 967 24,479 -392 53,387
Net income - - - - - 8,093 - 8,093
Dividends - -954 - - - - - -954
Transactions with treasury shares - - - - -967 1,021 -177 -123
Reallocations - - -1,289 -456 - 1,745 - -
31 December 2020 1,864 11 23,349 410 - 35,338 -569 60,403
Net income - - - - - 40,577 - 40,577
Capital increases 110 24,177 - - - - - 24,287
Costs related to capital increases - -260 -1,488 - - - - -1,748
Dividends - - - - - -11,926 - -11,926
Transactions with treasury shares - - - - - 81 -513 -432
31 December 2021 1,974 23,928 21,861 410 - 64,070 -1,082 111,161
Annual Report 2021
143
Trifork Holding AG Financial Statements
Notes to the Consolidated Financial Statements
Company information
Trifork Holding AG (“the Company”) is incor-
porated in Switzerland with its registered of-
fices at Neuhofstrasse 10, 8834 Schindellegi
(Feusisberg).
The Company is the parent company of
Trifork Group.
The registered shares of the Company are
traded on the NASDAQ Copenhagen.
§
Accounting policies
General
These financial statements are prepared
in accordance with Swiss law (32nd title of
the Swiss Code of Obligations). Where not
prescribed by law, the significant account-
ing and valuation principles applied are
described below.
Loans to investments
Loans granted in foreign currency are meas-
ured at the exchange rate prevailing as of the
reporting date.
Interest-bearing liabilities
Interest-bearing liabilities are measured at
their nominal value. Maturities of less than
one year are disclosed as current liabilities,
while those longer than one year are dis-
closed as non-current liabilities.
Interest-bearing liabilities in foreign cur-
rencies are measured at the exchange rate
prevailing as of the reporting date.
Treasury shares
As of the time of acquisition, treasury shares
are recognized as a deduction of sharehold-
ers’ equity measured at initial cost. In case of
a later divestment the gain or loss is recog-
nized in retained earnings in accordance with
the FIFO principle.
Principle of imparity
For long-term financial assets and liabilities,
unrealized foreign exchange losses are rec-
ognized in the income statements while un-
realized foreign exchange gains are deferred.
Non-disclosure of the cash flow statement
and additional notes information
Trifork Holding AG prepares consolidated
financial statements in accordance with
generally accepted accounting standards
(IFRS). Therefore, and following the legal
requirements, it does not present a state-
ment of cash flows or notes with regard to
interest-bearing liabilities and audit fees.
NOTE 1
Other financial income
(in CHFk) 2021 2020
Interest income
- from investments 257 157
Gains from exchange differences 1,615 958
Total other financial income 1,872 1,115
NOTE 2
Administrative expenses
(in CHFk) 2021 2020
Board of Director fees -375 -183
Management fees from investments -764 -714
Consultancy services
- from investments -265 -89
- from third parties -676 -53
IPO-related costs -1,997 -906
Others -213 -387
Total administrative expenses -4,290 -2,332
NOTE 3
Financial expenses
(in CHFk) 2021 2020
Impairment of receivables and loans to investments - -49
Interest expenses
- to third parties -104 -180
- to investments -48 -124
Fees to financial institutions -222 -20
Losses from exchange differences -3,101 -1,012
Total financial expenses -3,475 -1,385
Annual Report 2021
144
Trifork Holding AG Financial Statements
NOTE 4
Investments
The list of Group companies held directly
and indirectly by Trifork Holding AG with the
percentage of the capital share/voting rights
is included in the consolidated financial
statements of Trifork Group in Note 8.6.
In addition, Trifork Holding AG has an interest
of 19.5% in Programmable Infrastructure
Solutions AG, Schindellegi (Switzerland)
(2020: 24.0%).
NOTE 5
Share capital
The share capital of CHFk 1’974 (2020:
CHFk 1’864) consists of 19’744’899 (2020:
18’637’230) registered shares with a par val-
ue of CHF 0.10 (2020: CHF 0.10) each.
The share capital is fully paid up. The shares
are registered under ISIN: CH1111227810.
All shares have identical rights and there is
only one share class.
NOTE 6
Authorized capital
The extraordinary General Meeting of 19
December 2019 authorized the Board of
Directors to increase the share capital of the
company at any time up to 19 December
2021. The available authorized capital as per 1
January 2021 amounted to CHFk 136, equating
to 1,362,770 registered shares. With effective
date as of 16 April 2021 the Board of Directors
exercised an authorized capital increase by
167,436 shares (CHFk 17). A net premium of EURk
3,448 was allocated to the capital contribution
reserve.
The ordinary General meeting of 29 April
2021 replaced the authorized capital from
the extraordinary General meeting as 19
December 2019 and authorized the Board of
Directors to increase the share capital of the
company at any time up to 29 April 2023 by
an amount not exceeding CHFk 373 through
the issue of up to 3,727,446 registered shares,
payable in full, each with a nominal value of
CHF 0.10 and excluding shareholders' sub-
scription rights.
With effective date as of 28 May 2021 the
Board of Directors increased share capital
from authorized share capital in an amount
of CHFk 94 (940,233 shares). A net premi-
um of CHFk 20,469 was allocated to the
capital contribution reserve. In addition,
transaction costs CHFk 1,488 were deducted
from the other capital reserve for the same
transaction.
The available authorized capital as of 31
December 2021 amounts to CHFk 279. This
equates to 2,787,213 registered shares.
NOTE 7
Conditional capital
The extraordinary General Meeting as of 19
December 2019 authorized the conditional
capital by a maximum amount of CHFk 50
by issuing a maximum of 500,000 registered
shares with a par value of CHF 0.10 each,
to be fully paid up, excluding shareholders'
subscription rights.
NOTE 8
Dividend
The Annual General Meeting of 29 April 2021
approved a dividend of CHF 0.64 per reg-
istered share to be paid from the retained
earnings. The dividend of CHFk 11,926 was
paid out on 5 May 2021.
NOTE 9
Treasury shares
Units
Total amount
(in CHFk)
1 January 2019 44,462 392
Acquisitions 71,217 1,146
Disposals -84,586 -1,023
Result from transactions with treasury shares
transferred to retained earnings
54
31 December 2020 31,093 569
Acquisitions 46,851 1,121
Capital increase 167,436 -
Disposals -2,570 -53
Acquisition of Group companies -102,073 -12
Acquisition of non-controlling interests -95,718 -624
Result from transactions with treasury shares
transferred to retained earnings
81
31 December 2021 45,019 1,082
NOTE 10
Full time equivalents
Trifork Holding AG does not have any em-
ployees (2020: 0).
NOTE 11
Guarantees
Trifork Holding AG issued guarantees in
favour of financial institutions to cover the
interest-bearing liabilities of Group compa-
nies of CHFk 17,727 as per 31 December 2021
(2020: CHFk 43,553).
Trifork Holding AG subordinated a loan to
a Group company in the amount CHFk 88
(2020: CHFk 84).
Annual Report 2021
145
Trifork Holding AG Financial Statements
NOTE 12
Pledged assets
To secure interest-bearing liabilities CHFk
4,078 as of 31 December 2020, the company
negatively pledged the shares held in Trifork
A/S, Trifork AG (formerly: Trifork GmbH), Trifork
B.V and Trifork Ltd. until full amortization of
the loan. This loan was amortized in 2021.
NOTE 13
Significant shareholders
The following shareholders reported an
interest of 5% or more (directly and/or indi-
rectly) in the share capital of Trifork Holding,
as AG recorded in the commercial register
as of the reporting date:
2021
Jørn Larsen 19.5%
Ferd A/S 10.0%
Kresten Krab Thorup 6.6%
1
Chr. Augustinus Fabrikker A/S 5.1%
1
1 As per company announcement #15/2021 as of
27 May 2021
NOTE 14
Interests held by the members of the Board of Directors and Executive Management
2021 2020
Number of regis-
tered shares as of
31 December
Number of
restricted share
units (RSU) as of
31 December
(Potential) share
of voting rights
Number of regis-
tered shares as of
31 December
Share of voting
rights
Julie Galbo (Chairperson)
1
3,940 - 0.0% 3,940 0.0%
Olivier Jaquet (Vice-Chairperson)
2
64,145 - 0.3% 64,145 0.3%
Maria Hjorth (Member)
1
3,940 - 0.0% 3,940 0.0%
Lars Lunde (Member)
3
3,747 - 0.0% 3,760,384 20.2%
Casey Rosenthal (Member) 2,058 - 0.0% 2,058 0.0%
Jørn Larsen (Member and CEO)
4/5
3,847,374 17,983 19.6% 4,506,278 24.2%
Kristian Wulf-Andersen (Member and CFO)
4
224,100 12,049 1.2% 313,439 1.7%
1 From 12 November 2020
2 Chairperson until 12 November 2020
3 Representing GRO Holding I ApS until 27 May 2021
4 Members until 29 April 2021
5 The company announcement #15/2021 as of 27 May 2021 overstated the shareholding of Jørn Larsen by 34,552 shares
NOTE 15
RSU granted in the reporting
period
RSU on registered shares of Trifork Holding
AG are granted as part of the perfor-
mance-related variable compensation for
members of Executive Management. Each
RSU is associated with the right to convert
into one share. The RSU were valued at the
share price at grant date and conversion of
the RSU depends upon the vesting condi-
tions being met (e.g. ongoing employment):
The RSU granted are recognized through
profit or loss over the vesting period in the
Group company that is the contractual em-
ployer of the respective member of Executive
Management.
NOTE 16
Events after the balance sheet
date
The 2021 financial statements were reviewed
by the Audit & Risk Committee on 15 March
2022 and approved and released for publi-
cation by the Board of Directors on 16 March
2022.
The financial statements are subject to
approval by the Annual General Meeting
scheduled for 20 April 2022.
2021
Number Value
RSU granted to mem-
bers of the Executive
Management
1
30,032 581
1 The RSU were granted as of 1 April 2021
Annual Report 2021
146
Trifork Holding AG Financial Statements
Proposal of the Board of
Directors for the
appropriation
of available earnings
(in CHFk) 2021
Retained earnings
Balance carried forward from prior year 35,338
Dividends paid -11,926
Transactions with treasury shares 81
Net income 40,577
Retained earnings at the discretion of the General Meeting 64,070
Dividend proposed -8,000
Balance carried forward to new account of the retained earnings 56,070
The Board of Directors proposes to pay a dividend of EUR 0.38 gross per share, resulting in a total
dividend amount of up to CHFk 8,000.
(The CHF amount will be determined by applying the exchange rate at the date of the AGM.)
The total dividend amount payable depends on the number of treasury shares held on the
record date as treasury shares are not eligible for dividends.
Annual Report 2021
147
Trifork Holding AG Financial Statements
To the General Meeting of Trifork Holding AG, Feusisberg
Report of the statutory auditor on
the financial statements
As statutory auditor, we have audited the accompanying financial statements of Trifork Holding
AG, which comprise the income statement, statement of financial position, statement of
changes in shareholders’ equity and notes (pages 139 to 146), for the year ended 31 December
2021.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation of the financial statements in
accordance with the requirements of Swiss law and the company’s articles of incor-
poration. This responsibility includes designing, implementing and maintaining an
internal control system relevant to the preparation of financial statements that are
free from material misstatement, whether due to fraud or error. The Board of Directors
is further responsible for selecting and applying appropriate accounting policies and
making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing
Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers the internal control system relevant to
the entity’s preparation of the financial statements in order to design audit proce-
dures that are appropriate in the circumstances, but not for the purpose of express-
ing an opinion on the effectiveness of the entity’s internal control system. An audit
also includes evaluating the appropriateness of the accounting policies used and
the reasonableness of accounting estimates made, as well as evaluating the overall
presentation of the financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements for the year ended 31 December 2021 comply
with Swiss law and the company’s articles of incorporation.
Report on key audit matters based on the circular 1/2015 of the Federal
Audit Oversight Authority
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These
matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibility section
of our report, including in relation to these matters. Accordingly, our audit included
the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial statements. The results of our audit proce-
dures, including the procedures performed to address the matters below, provide the
basis for our audit opinion on the financial statements.
Valuation of investments
Risk As of 31 December 2021, investments represented 63% of the
Company’s total assets and amounted to CHF 73 million.
Investments are valued at cost on an individual basis in
accordance with the Swiss Code of Obligations. Due to the
significance of the carrying amount of the investments and
the judgment involved in the assessment of the valuation of
certain investments, this matter was considered significant
to our audit.
Zurich, 16 March 2022
Ernst & Young Ltd
Annual Report 2021
148
Trifork Holding AG Financial Statements
Our audit response Depending on the Company’s valuation approach, we
examined the Company’s valuation assessment including
underlying key assumptions or performed our own calcu-
lations. We also assessed the historical accuracy of the
Company’s estimates and considered its ability to produce
accurate long-term forecasts for certain investments. Our
audit procedures did not lead to any reservations regarding
the valuation of investments.
Report on other legal requirements
We confirm that we meet the legal requirements on licensing according to the
Auditor Oversight Act (AOA) and independence (article 728 CO and article 11 AOA)
and that there are no circumstances incompatible with our independence.
In accordance with article 728a para. 1 item 3 CO and Swiss Auditing Standard 890,
we confirm that an internal control system exists, which has been designed for the
preparation of financial statements according to the instructions of the Board of
Directors.
We further confirm that the proposed appropriation of available earnings complies
with Swiss law and the company’s articles of incorporation. We recommend that the
financial statements submitted to you be approved.
Tobias Meyer
Licensed audit expert (Auditor in Charge)
Andreas Forster
Licensed audit expert
Annual Report 2021
149
Rations and Key Figures
The financial highlights have been prepared on the basis of the CFA Society
Denmark “Recommendations & Ratios” (January 2022), using the following definitions:
EBITDA margin
EBITA margin
EBIT margin
Free cash flow
Equity ratio
Return on equity
Basic earnings per
share (EPS basic)
Diluted earnings per
share (EPS diluted)
Dividend yield
Net-debt-to-EBITDA-
ratio
Earnings before financial items, taxes,
depreciation and amortization x 100
Revenue
Earnings before financial items, taxes,
and amortization x 100
Revenue
Earnings before financial items
and taxes x 100
Revenue
Cash flow from operations Capex
Equity excl.NCI x 100
Total assets
Net income excl.NCI x 100
Average equity excl.NCI
Net income excl.NCI x 100
Average number of shares outstanding
Net income excl.NCI x 100
Average number of shares diluted
Dividend x 100
Net income excl.NCI
Interest-bearing debt - cash and cash
equivalents
Earnings before financial items, taxes,
depreciation and amortization
Denmark
Aalborg
Aarhus
Copenhagen
Esbjerg
Schindellegi
Zurich
The Netherlands
Amsterdam
Eindhoven
Germany
Berlin
Hungary
Budapest
Portugal
Lisbon
Sweden
Stockholm
Poland
Krakow
United Kingdom
London
Latvia
Riga
Spain
Palma
Barcelona
United States
Palo Alto
Chicago