Assets
| Type | Time | Amount | Unit |
|---|
Revenue
| Type | Start date | End date | Amount | Unit |
|---|
XML
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XML: INVALID
Separator
The full data:
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<ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities contextRef="ctx18" decimals="-6" id="fact1485" unitRef="vDKK">298000000</ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities>
<ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod contextRef="ctx18" decimals="-6" id="fact1486" unitRef="vDKK">-2000000</ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod>
<ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities contextRef="ctx19" decimals="-6" id="fact1545" unitRef="vDKK">45000000</ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities>
<ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities contextRef="ctx19" decimals="-6" id="fact1546" unitRef="vDKK">218000000</ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities>
<ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod contextRef="ctx19" decimals="-6" id="fact1547" unitRef="vDKK">3000000</ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod>
<ifrs-full:CashFlowsFromUsedInInvestingActivities contextRef="ctx18" decimals="-6" id="fact1487" unitRef="vDKK">-351000000</ifrs-full:CashFlowsFromUsedInInvestingActivities>
<ifrs-full:CashFlowsFromUsedInInvestingActivities contextRef="ctx19" decimals="-6" id="fact1548" unitRef="vDKK">-266000000</ifrs-full:CashFlowsFromUsedInInvestingActivities>
<alk:CashFlowsFromUsedInOperatingAndInvestingActivities contextRef="ctx18" decimals="-6" id="fact1488" unitRef="vDKK">65000000</alk:CashFlowsFromUsedInOperatingAndInvestingActivities>
<alk:CashFlowsFromUsedInOperatingAndInvestingActivities contextRef="ctx19" decimals="-6" id="fact1549" unitRef="vDKK">202000000</alk:CashFlowsFromUsedInOperatingAndInvestingActivities>
<ifrs-full:ProceedsFromSaleOrIssueOfTreasuryShares contextRef="ctx18" decimals="-6" id="fact1489" unitRef="vDKK">42000000</ifrs-full:ProceedsFromSaleOrIssueOfTreasuryShares>
<alk:ExercisedShareOptionsPaid contextRef="ctx18" decimals="-6" id="fact1490" unitRef="vDKK">11000000</alk:ExercisedShareOptionsPaid>
<ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities contextRef="ctx18" decimals="-6" id="fact1491" unitRef="vDKK">60000000</ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities>
<ifrs-full:ProceedsFromSaleOrIssueOfTreasuryShares contextRef="ctx19" decimals="-6" id="fact1550" unitRef="vDKK">31000000</ifrs-full:ProceedsFromSaleOrIssueOfTreasuryShares>
<alk:ExercisedShareOptionsPaid contextRef="ctx19" decimals="-6" id="fact1551" unitRef="vDKK">72000000</alk:ExercisedShareOptionsPaid>
<ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities contextRef="ctx19" decimals="-6" id="fact1552" unitRef="vDKK">226000000</ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities>
<ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities contextRef="ctx18" decimals="-6" id="fact1492" unitRef="vDKK">94000000</ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities>
<ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities contextRef="ctx18" decimals="-6" id="fact1493" unitRef="vDKK">39000000</ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities>
<ifrs-full:CashFlowsFromUsedInFinancingActivities contextRef="ctx18" decimals="-6" id="fact1494" unitRef="vDKK">-42000000</ifrs-full:CashFlowsFromUsedInFinancingActivities>
<ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities contextRef="ctx19" decimals="-6" id="fact1553" unitRef="vDKK">464000000</ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities>
<ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities contextRef="ctx19" decimals="-6" id="fact1554" unitRef="vDKK">32000000</ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities>
<ifrs-full:CashFlowsFromUsedInFinancingActivities contextRef="ctx19" decimals="-6" id="fact1555" unitRef="vDKK">-311000000</ifrs-full:CashFlowsFromUsedInFinancingActivities>
<ifrs-full:IncreaseDecreaseInCashAndCashEquivalents contextRef="ctx18" decimals="-6" id="fact1495" unitRef="vDKK">23000000</ifrs-full:IncreaseDecreaseInCashAndCashEquivalents>
<ifrs-full:IncreaseDecreaseInCashAndCashEquivalents contextRef="ctx19" decimals="-6" id="fact1556" unitRef="vDKK">-109000000</ifrs-full:IncreaseDecreaseInCashAndCashEquivalents>
<ifrs-full:Cash contextRef="ctx20" decimals="-6" id="fact1565" unitRef="vDKK">194000000</ifrs-full:Cash>
<ifrs-full:Cash contextRef="ctx21" decimals="-6" id="fact1567" unitRef="vDKK">298000000</ifrs-full:Cash>
<ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents contextRef="ctx18" decimals="-6" id="fact1497" unitRef="vDKK">4000000</ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents>
<ifrs-full:IncreaseDecreaseInCashAndCashEquivalents contextRef="ctx18" decimals="-6" id="fact1496" unitRef="vDKK">23000000</ifrs-full:IncreaseDecreaseInCashAndCashEquivalents>
<ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents contextRef="ctx19" decimals="-6" id="fact1558" unitRef="vDKK">5000000</ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents>
<ifrs-full:IncreaseDecreaseInCashAndCashEquivalents contextRef="ctx19" decimals="-6" id="fact1557" unitRef="vDKK">-109000000</ifrs-full:IncreaseDecreaseInCashAndCashEquivalents>
<ifrs-full:Cash contextRef="ctx23" decimals="-6" id="fact1615" unitRef="vDKK">194000000</ifrs-full:Cash>
<ifrs-full:Cash contextRef="ctx22" decimals="-6" id="fact1569" unitRef="vDKK">221000000</ifrs-full:Cash>
<ifrs-full:IssuedCapital contextRef="ctx22" decimals="-6" id="fact1592" unitRef="vDKK">111000000</ifrs-full:IssuedCapital>
<ifrs-full:ReserveOfExchangeDifferencesOnTranslation contextRef="ctx22" decimals="-6" id="fact1593" unitRef="vDKK">20000000</ifrs-full:ReserveOfExchangeDifferencesOnTranslation>
<ifrs-full:IssuedCapital contextRef="ctx23" decimals="-6" id="fact1638" unitRef="vDKK">111000000</ifrs-full:IssuedCapital>
<ifrs-full:ReserveOfExchangeDifferencesOnTranslation contextRef="ctx23" decimals="-6" id="fact1639" unitRef="vDKK">-41000000</ifrs-full:ReserveOfExchangeDifferencesOnTranslation>
<ifrs-full:Goodwill contextRef="ctx22" decimals="-6" id="fact1571" unitRef="vDKK">460000000</ifrs-full:Goodwill>
<ifrs-full:OtherIntangibleAssets contextRef="ctx22" decimals="-6" id="fact1572" unitRef="vDKK">182000000</ifrs-full:OtherIntangibleAssets>
<ifrs-full:IntangibleAssetsAndGoodwill contextRef="ctx22" decimals="-6" id="fact1573" unitRef="vDKK">642000000</ifrs-full:IntangibleAssetsAndGoodwill>
<ifrs-full:Goodwill contextRef="ctx23" decimals="-6" id="fact1617" unitRef="vDKK">457000000</ifrs-full:Goodwill>
<ifrs-full:OtherIntangibleAssets contextRef="ctx23" decimals="-6" id="fact1618" unitRef="vDKK">165000000</ifrs-full:OtherIntangibleAssets>
<ifrs-full:IntangibleAssetsAndGoodwill contextRef="ctx23" decimals="-6" id="fact1619" unitRef="vDKK">622000000</ifrs-full:IntangibleAssetsAndGoodwill>
<ifrs-full:RetainedEarnings contextRef="ctx22" decimals="-6" id="fact1594" unitRef="vDKK">3857000000</ifrs-full:RetainedEarnings>
<ifrs-full:Equity contextRef="ctx22" decimals="-6" id="fact1595" unitRef="vDKK">3988000000</ifrs-full:Equity>
<ifrs-full:RetainedEarnings contextRef="ctx23" decimals="-6" id="fact1640" unitRef="vDKK">3410000000</ifrs-full:RetainedEarnings>
<ifrs-full:Equity contextRef="ctx23" decimals="-6" id="fact1641" unitRef="vDKK">3480000000</ifrs-full:Equity>
<ifrs-full:LandAndBuildings contextRef="ctx22" decimals="-6" id="fact1574" unitRef="vDKK">991000000</ifrs-full:LandAndBuildings>
<alk:PlantAndMachinery contextRef="ctx22" decimals="-6" id="fact1575" unitRef="vDKK">440000000</alk:PlantAndMachinery>
<ifrs-full:LandAndBuildings contextRef="ctx23" decimals="-6" id="fact1620" unitRef="vDKK">958000000</ifrs-full:LandAndBuildings>
<alk:PlantAndMachinery contextRef="ctx23" decimals="-6" id="fact1621" unitRef="vDKK">451000000</alk:PlantAndMachinery>
<ifrs-full:FixturesAndFittings contextRef="ctx22" decimals="-6" id="fact1576" unitRef="vDKK">76000000</ifrs-full:FixturesAndFittings>
<ifrs-full:FixturesAndFittings contextRef="ctx23" decimals="-6" id="fact1622" unitRef="vDKK">80000000</ifrs-full:FixturesAndFittings>
<alk:NonCurrentPortionOfMortgageDebt contextRef="ctx22" decimals="-6" id="fact1597" unitRef="vDKK">203000000</alk:NonCurrentPortionOfMortgageDebt>
<ifrs-full:NoncurrentProvisionsForEmployeeBenefits contextRef="ctx22" decimals="-6" id="fact1598" unitRef="vDKK">236000000</ifrs-full:NoncurrentProvisionsForEmployeeBenefits>
<ifrs-full:NoncurrentLeaseLiabilities contextRef="ctx22" decimals="-6" id="fact1599" unitRef="vDKK">226000000</ifrs-full:NoncurrentLeaseLiabilities>
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<alk:NonCurrentPortionOfMortgageDebt contextRef="ctx23" decimals="-6" id="fact1643" unitRef="vDKK">222000000</alk:NonCurrentPortionOfMortgageDebt>
<ifrs-full:NoncurrentProvisionsForEmployeeBenefits contextRef="ctx23" decimals="-6" id="fact1644" unitRef="vDKK">324000000</ifrs-full:NoncurrentProvisionsForEmployeeBenefits>
<ifrs-full:NoncurrentLeaseLiabilities contextRef="ctx23" decimals="-6" id="fact1645" unitRef="vDKK">207000000</ifrs-full:NoncurrentLeaseLiabilities>
<ifrs-full:NoncurrentDeferredIncomeOtherThanNoncurrentContractLiabilities contextRef="ctx23" decimals="-6" id="fact1646" unitRef="vDKK">42000000</ifrs-full:NoncurrentDeferredIncomeOtherThanNoncurrentContractLiabilities>
<ifrs-full:ConstructionInProgress contextRef="ctx22" decimals="-6" id="fact1577" unitRef="vDKK">511000000</ifrs-full:ConstructionInProgress>
<ifrs-full:ConstructionInProgress contextRef="ctx23" decimals="-6" id="fact1623" unitRef="vDKK">325000000</ifrs-full:ConstructionInProgress>
<ifrs-full:PropertyPlantAndEquipment contextRef="ctx22" decimals="-6" id="fact1578" unitRef="vDKK">2018000000</ifrs-full:PropertyPlantAndEquipment>
<ifrs-full:PropertyPlantAndEquipment contextRef="ctx23" decimals="-6" id="fact1624" unitRef="vDKK">1814000000</ifrs-full:PropertyPlantAndEquipment>
<ifrs-full:NoncurrentPrepaymentsAndNoncurrentAccruedIncomeOtherThanNoncurrentContractAssets contextRef="ctx22" decimals="-6" id="fact1579" unitRef="vDKK">94000000</ifrs-full:NoncurrentPrepaymentsAndNoncurrentAccruedIncomeOtherThanNoncurrentContractAssets>
<ifrs-full:DeferredTaxAssets contextRef="ctx22" decimals="-6" id="fact1580" unitRef="vDKK">716000000</ifrs-full:DeferredTaxAssets>
<ifrs-full:NoncurrentPrepaymentsAndNoncurrentAccruedIncomeOtherThanNoncurrentContractAssets contextRef="ctx23" decimals="-6" id="fact1625" unitRef="vDKK">29000000</ifrs-full:NoncurrentPrepaymentsAndNoncurrentAccruedIncomeOtherThanNoncurrentContractAssets>
<ifrs-full:DeferredTaxAssets contextRef="ctx23" decimals="-6" id="fact1626" unitRef="vDKK">790000000</ifrs-full:DeferredTaxAssets>
<ifrs-full:CurrentTaxAssetsNoncurrent contextRef="ctx23" decimals="-6" id="fact1627" unitRef="vDKK">172000000</ifrs-full:CurrentTaxAssetsNoncurrent>
<ifrs-full:OtherNoncurrentAssets contextRef="ctx23" decimals="-6" id="fact1628" unitRef="vDKK">991000000</ifrs-full:OtherNoncurrentAssets>
<ifrs-full:DeferredTaxLiabilities contextRef="ctx22" decimals="-6" id="fact1601" unitRef="vDKK">4000000</ifrs-full:DeferredTaxLiabilities>
<ifrs-full:DeferredTaxLiabilities contextRef="ctx23" decimals="-6" id="fact1647" unitRef="vDKK">1000000</ifrs-full:DeferredTaxLiabilities>
<ifrs-full:CurrentTaxLiabilitiesNoncurrent contextRef="ctx22" decimals="-6" id="fact1602" unitRef="vDKK">203000000</ifrs-full:CurrentTaxLiabilitiesNoncurrent>
<ifrs-full:NoncurrentLiabilities contextRef="ctx22" decimals="-6" id="fact1603" unitRef="vDKK">921000000</ifrs-full:NoncurrentLiabilities>
<ifrs-full:CurrentTaxLiabilitiesNoncurrent contextRef="ctx23" decimals="-6" id="fact1648" unitRef="vDKK">169000000</ifrs-full:CurrentTaxLiabilitiesNoncurrent>
<ifrs-full:NoncurrentLiabilities contextRef="ctx23" decimals="-6" id="fact1649" unitRef="vDKK">965000000</ifrs-full:NoncurrentLiabilities>
<ifrs-full:CurrentTaxAssetsNoncurrent contextRef="ctx22" decimals="-6" id="fact1581" unitRef="vDKK">193000000</ifrs-full:CurrentTaxAssetsNoncurrent>
<ifrs-full:OtherNoncurrentAssets contextRef="ctx22" decimals="-6" id="fact1582" unitRef="vDKK">1003000000</ifrs-full:OtherNoncurrentAssets>
<alk:CurrentPortionOfMortgageDebt contextRef="ctx22" decimals="-6" id="fact1604" unitRef="vDKK">18000000</alk:CurrentPortionOfMortgageDebt>
<ifrs-full:CurrentLoansReceivedAndCurrentPortionOfNoncurrentLoansReceived contextRef="ctx22" decimals="-6" id="fact1605" unitRef="vDKK">208000000</ifrs-full:CurrentLoansReceivedAndCurrentPortionOfNoncurrentLoansReceived>
<ifrs-full:TradeAndOtherCurrentPayablesToTradeSuppliers contextRef="ctx22" decimals="-6" id="fact1606" unitRef="vDKK">131000000</ifrs-full:TradeAndOtherCurrentPayablesToTradeSuppliers>
<ifrs-full:CurrentLeaseLiabilities contextRef="ctx22" decimals="-6" id="fact1607" unitRef="vDKK">41000000</ifrs-full:CurrentLeaseLiabilities>
<alk:CurrentPortionOfMortgageDebt contextRef="ctx23" decimals="-6" id="fact1650" unitRef="vDKK">18000000</alk:CurrentPortionOfMortgageDebt>
<ifrs-full:CurrentLoansReceivedAndCurrentPortionOfNoncurrentLoansReceived contextRef="ctx23" decimals="-6" id="fact1651" unitRef="vDKK">226000000</ifrs-full:CurrentLoansReceivedAndCurrentPortionOfNoncurrentLoansReceived>
<ifrs-full:TradeAndOtherCurrentPayablesToTradeSuppliers contextRef="ctx23" decimals="-6" id="fact1652" unitRef="vDKK">115000000</ifrs-full:TradeAndOtherCurrentPayablesToTradeSuppliers>
<ifrs-full:CurrentLeaseLiabilities contextRef="ctx23" decimals="-6" id="fact1653" unitRef="vDKK">37000000</ifrs-full:CurrentLeaseLiabilities>
<ifrs-full:NoncurrentAssets contextRef="ctx22" decimals="-6" id="fact1583" unitRef="vDKK">3663000000</ifrs-full:NoncurrentAssets>
<ifrs-full:NoncurrentAssets contextRef="ctx23" decimals="-6" id="fact1629" unitRef="vDKK">3427000000</ifrs-full:NoncurrentAssets>
<ifrs-full:Inventories contextRef="ctx22" decimals="-6" id="fact1584" unitRef="vDKK">1297000000</ifrs-full:Inventories>
<ifrs-full:CurrentTradeReceivables contextRef="ctx22" decimals="-6" id="fact1585" unitRef="vDKK">764000000</ifrs-full:CurrentTradeReceivables>
<ifrs-full:TradeAndOtherCurrentReceivablesDueFromRelatedParties contextRef="ctx22" decimals="-6" id="fact1586" unitRef="vDKK">18000000</ifrs-full:TradeAndOtherCurrentReceivablesDueFromRelatedParties>
<ifrs-full:Inventories contextRef="ctx23" decimals="-6" id="fact1630" unitRef="vDKK">1204000000</ifrs-full:Inventories>
<ifrs-full:CurrentTradeReceivables contextRef="ctx23" decimals="-6" id="fact1631" unitRef="vDKK">583000000</ifrs-full:CurrentTradeReceivables>
<ifrs-full:TradeAndOtherCurrentReceivablesDueFromRelatedParties contextRef="ctx23" decimals="-6" id="fact1632" unitRef="vDKK">12000000</ifrs-full:TradeAndOtherCurrentReceivablesDueFromRelatedParties>
<ifrs-full:CurrentDeferredIncomeOtherThanCurrentContractLiabilities contextRef="ctx22" decimals="-6" id="fact1608" unitRef="vDKK">4000000</ifrs-full:CurrentDeferredIncomeOtherThanCurrentContractLiabilities>
<ifrs-full:CurrentDeferredIncomeOtherThanCurrentContractLiabilities contextRef="ctx23" decimals="-6" id="fact1654" unitRef="vDKK">4000000</ifrs-full:CurrentDeferredIncomeOtherThanCurrentContractLiabilities>
<ifrs-full:CurrentProvisions contextRef="ctx22" decimals="-6" id="fact1609" unitRef="vDKK">3000000</ifrs-full:CurrentProvisions>
<ifrs-full:CurrentProvisions contextRef="ctx23" decimals="-6" id="fact1655" unitRef="vDKK">12000000</ifrs-full:CurrentProvisions>
<ifrs-full:CurrentTaxLiabilitiesCurrent contextRef="ctx22" decimals="-6" id="fact1610" unitRef="vDKK">16000000</ifrs-full:CurrentTaxLiabilitiesCurrent>
<ifrs-full:CurrentTaxLiabilitiesCurrent contextRef="ctx23" decimals="-6" id="fact1656" unitRef="vDKK">23000000</ifrs-full:CurrentTaxLiabilitiesCurrent>
<ifrs-full:CurrentTaxAssetsCurrent contextRef="ctx22" decimals="-6" id="fact1587" unitRef="vDKK">24000000</ifrs-full:CurrentTaxAssetsCurrent>
<ifrs-full:CurrentTaxAssetsCurrent contextRef="ctx23" decimals="-6" id="fact1633" unitRef="vDKK">14000000</ifrs-full:CurrentTaxAssetsCurrent>
<ifrs-full:OtherCurrentPayables contextRef="ctx22" decimals="-6" id="fact1611" unitRef="vDKK">978000000</ifrs-full:OtherCurrentPayables>
<ifrs-full:CurrentLiabilities contextRef="ctx22" decimals="-6" id="fact1612" unitRef="vDKK">1399000000</ifrs-full:CurrentLiabilities>
<ifrs-full:OtherCurrentPayables contextRef="ctx23" decimals="-6" id="fact1657" unitRef="vDKK">950000000</ifrs-full:OtherCurrentPayables>
<ifrs-full:CurrentLiabilities contextRef="ctx23" decimals="-6" id="fact1658" unitRef="vDKK">1385000000</ifrs-full:CurrentLiabilities>
<ifrs-full:OtherCurrentReceivables contextRef="ctx22" decimals="-6" id="fact1588" unitRef="vDKK">82000000</ifrs-full:OtherCurrentReceivables>
<ifrs-full:OtherCurrentReceivables contextRef="ctx23" decimals="-6" id="fact1634" unitRef="vDKK">82000000</ifrs-full:OtherCurrentReceivables>
<ifrs-full:CurrentPrepayments contextRef="ctx22" decimals="-6" id="fact1589" unitRef="vDKK">239000000</ifrs-full:CurrentPrepayments>
<ifrs-full:Cash contextRef="ctx22" decimals="-6" id="fact1570" unitRef="vDKK">221000000</ifrs-full:Cash>
<ifrs-full:CurrentAssets contextRef="ctx22" decimals="-6" id="fact1590" unitRef="vDKK">2645000000</ifrs-full:CurrentAssets>
<ifrs-full:CurrentPrepayments contextRef="ctx23" decimals="-6" id="fact1635" unitRef="vDKK">314000000</ifrs-full:CurrentPrepayments>
<ifrs-full:Cash contextRef="ctx23" decimals="-6" id="fact1616" unitRef="vDKK">194000000</ifrs-full:Cash>
<ifrs-full:CurrentAssets contextRef="ctx23" decimals="-6" id="fact1636" unitRef="vDKK">2403000000</ifrs-full:CurrentAssets>
<ifrs-full:Liabilities contextRef="ctx22" decimals="-6" id="fact1613" unitRef="vDKK">2320000000</ifrs-full:Liabilities>
<ifrs-full:EquityAndLiabilities contextRef="ctx22" decimals="-6" id="fact1614" unitRef="vDKK">6308000000</ifrs-full:EquityAndLiabilities>
<ifrs-full:Liabilities contextRef="ctx23" decimals="-6" id="fact1659" unitRef="vDKK">2350000000</ifrs-full:Liabilities>
<ifrs-full:EquityAndLiabilities contextRef="ctx23" decimals="-6" id="fact1660" unitRef="vDKK">5830000000</ifrs-full:EquityAndLiabilities>
<ifrs-full:Assets contextRef="ctx22" decimals="-6" id="fact1591" unitRef="vDKK">6308000000</ifrs-full:Assets>
<ifrs-full:Assets contextRef="ctx23" decimals="-6" id="fact1637" unitRef="vDKK">5830000000</ifrs-full:Assets>
<ifrs-full:Equity contextRef="ctx24" decimals="-6" id="fact1661" unitRef="vDKK">111000000</ifrs-full:Equity>
<ifrs-full:Equity contextRef="ctx25" decimals="-6" id="fact1662" unitRef="vDKK">-41000000</ifrs-full:Equity>
<ifrs-full:Equity contextRef="ctx26" decimals="-6" id="fact1663" unitRef="vDKK">3410000000</ifrs-full:Equity>
<ifrs-full:Equity contextRef="ctx20" decimals="-6" id="fact1566" unitRef="vDKK">3480000000</ifrs-full:Equity>
<ifrs-full:Equity contextRef="ctx32" decimals="-6" id="fact1677" unitRef="vDKK">111000000</ifrs-full:Equity>
<ifrs-full:Equity contextRef="ctx33" decimals="-6" id="fact1678" unitRef="vDKK">-125000000</ifrs-full:Equity>
<ifrs-full:Equity contextRef="ctx34" decimals="-6" id="fact1679" unitRef="vDKK">3167000000</ifrs-full:Equity>
<ifrs-full:Equity contextRef="ctx21" decimals="-6" id="fact1568" unitRef="vDKK">3153000000</ifrs-full:Equity>
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<ifrs-full:ComprehensiveIncome contextRef="ctx28" decimals="-6" id="fact1673" unitRef="vDKK">61000000</ifrs-full:ComprehensiveIncome>
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<ifrs-full:ProfitLoss contextRef="ctx18" decimals="-6" id="fact1465" unitRef="vDKK">335000000</ifrs-full:ProfitLoss>
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<ifrs-full:ComprehensiveIncome contextRef="ctx18" decimals="-6" id="fact1477" unitRef="vDKK">466000000</ifrs-full:ComprehensiveIncome>
<ifrs-full:OtherComprehensiveIncome contextRef="ctx36" decimals="-6" id="fact1689" unitRef="vDKK">84000000</ifrs-full:OtherComprehensiveIncome>
<ifrs-full:ComprehensiveIncome contextRef="ctx36" decimals="-6" id="fact1690" unitRef="vDKK">84000000</ifrs-full:ComprehensiveIncome>
<ifrs-full:ProfitLoss contextRef="ctx35" decimals="-6" id="fact1680" unitRef="vDKK">219000000</ifrs-full:ProfitLoss>
<ifrs-full:OtherComprehensiveIncome contextRef="ctx35" decimals="-6" id="fact1681" unitRef="vDKK">7000000</ifrs-full:OtherComprehensiveIncome>
<ifrs-full:ProfitLoss contextRef="ctx19" decimals="-6" id="fact1527" unitRef="vDKK">219000000</ifrs-full:ProfitLoss>
<ifrs-full:OtherComprehensiveIncome contextRef="ctx19" decimals="-6" id="fact1537" unitRef="vDKK">91000000</ifrs-full:OtherComprehensiveIncome>
<ifrs-full:ComprehensiveIncome contextRef="ctx27" decimals="-6" id="fact1666" unitRef="vDKK">405000000</ifrs-full:ComprehensiveIncome>
<ifrs-full:ComprehensiveIncome contextRef="ctx35" decimals="-6" id="fact1682" unitRef="vDKK">226000000</ifrs-full:ComprehensiveIncome>
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<ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory contextRef="ctx18" id="fact1706" xml:lang="en">1.1 General accounting policies  The consolidated financial statements Â
for the period 1 January to 31 Â
December 2022 have been prepared Â
in accordance with the International Â
Financial Reporting Standards (IFRS) Â
as adopted by the EU and in accordance Â
with Danish disclosure requirements Â
for listed companies. Additional Danish Â
disclosure requirements for annual Â
reports are imposed by the Statutory Â
Order on Adoption of IFRS issued under Â
the Danish Financial Statements Act. Â The consolidated financial statements Â
are presented in Danish kroner (DKK), Â
which is considered the primary Â
currency of the ALK Groupâs activities Â
and the functional currency of the Â
parent company. Â
The consolidated financial statements Â
are presented on a historical cost basis, Â
apart from certain financial instruments, Â
which are measured at fair value. Â
The general accounting policies Â
described below apply to the Â
consolidated financial statements as Â
a whole. To enhance understanding, Â
specific accounting policies are Â
described in the notes to which they Â
relate. The description of accounting Â
policies in the notes form part of the Â
overall description of accounting Â
policies. Â The accounting policies are unchanged Â
from last year except for the below Â
mentioned impacts of new standards. Â New standards effective from Â
1 January 2022 Â
The ALK Group has implemented all Â
new and amended standards and IFRIC Â
interpretations which are effective Â
for the financial year 2022. This has Â
not resulted in any changes to the Â
accounting policies of the ALK Group. Â New standards effective on or after Â
1 January 2023 Â
A number of IFRS standards, amended Â
standards and IFRIC interpretations, Â
which are effective on or after 1 January Â
2023, have not been implemented. Â
Based on a preliminary assessment it Â
is estimated that these standards and Â
interpretations will have no material Â
impact on the consolidated financial Â
statements. Â Basis of consolidation Â
The consolidated financial statements Â
comprise the financial statements of Â
ALK-Abelló A/S (the parent company) Â
and companies (subsidiaries) Â
controlled by the parent company. Â
The consolidated financial statements Â
are prepared as a consolidation of Â
items of a uniform nature. The financial  statements used for consolidation are Â
prepared in accordance with the ALK Â
Groupâs accounting policies. Â
On consolidation, intra-group income Â
and expenses, intra-group balances Â
and dividends, and gains and losses Â
arising on intra-group transactions are Â
eliminated. Â Foreign currency translation Â
On initial recognition, transactions Â
denominated in currencies other Â
than DKK are translated at average Â
exchange rates, which are an Â
approximation of the exchange rates Â
at the transaction date. Receivables Â
and debt and other monetary items not Â
settled at the balance sheet date are Â
translated at the closing rate. Â
Exchange rate differences between Â
the exchange rate at the date of Â
the transaction and the exchange Â
rate at the date of payment or the Â
balance sheet date, respectively, are Â
recognised in the income statement Â
under financial items. Tangible assets Â
and intangible assets, inventories and Â
other nonmonetary assets acquired in Â
foreign currency and measured based Â
on historical cost are translated at the Â
exchange rates at the transaction date. Â On recognition in the consolidated Â
financial statements of subsidiaries Â
whose financial statements are Â
presented in a functional currency other Â
than DKK, the income statements are Â
translated at average exchange rates Â
for the respective months, unless these Â
deviate materially from the actual Â
exchange rates at the transaction Â
dates. In that case, the actual exchange Â
rates are used. Balance sheet items Â
are translated at the exchange rates Â
at the balance sheet date. Goodwill is Â
considered to belong to the acquired Â
company in question and is translated Â
at the exchange rate at the balance Â
sheet date. Â
Exchange rate differences arising on Â
the translation of foreign subsidiariesâ Â
opening balance sheet items to the Â
exchange rates at the balance sheet Â
date and on the translation of the Â
income statements from average Â
exchange rates to exchange rates at the Â
balance sheet date are recognised in Â
other comprehensive income. Â
Foreign exchange rate adjustment of Â
receivables or debt to subsidiaries Â
which are considered part of the Â
parent companyâs overall investment Â
in the subsidiary in question are also Â
recognised in other comprehensive  income in the consolidated financial Â
statements. Â Definitions and ratios Â
The key ratios have been calculated in Â
accordance with generally accepted Â
financial ratios applied by financial Â
analysts. Definitions are shown on page Â
94. Â
Reporting under the ESEF regulation Â
The Commission Delegated Regulation Â
(EU) 2019/815 on the European Â
Single Electronic Format (ESEF) (ESEF Â
Regulation) has introduced a single Â
electronic reporting format for the Â
annual financial reports of issuers with Â
securities listed on the EU regulated Â
markets. Â
The ESEF Regulation sets out the Â
following main requirements: (1) Â
Issuers shall draw up and disclose Â
their annual financial reports using Â
the XHTML format; and (2) issuers that Â
draw-up their primary consolidated Â
financial statements in accordance Â
with IFRS as endorsed by the EU shall Â
tag those consolidated financial Â
statements using inline eXtensible Â
Business Reporting Language (iXBRL) Â
including block-tag of the notes to the Â
consolidated financial statements. Â The combination of the XHTML Â
format with the iXBRL tags makes the Â
annual financial reports both human- Â
readable and machine-readable, Â
thus enhancing accessibility, analysis Â
and comparability of the information Â
included in the annual financial reports. Â
iXBRL tags shall comply with the ESEF Â
taxonomy, which is included in the ESEF Â
Regulation and developed based on the Â
IFRS taxonomy published by the IFRS Â
Foundation. Â
As part of the tagging process financial Â
statement line items are marked up Â
to elements in the ESEF taxonomy. Â
If a financial statement line item is Â
not defined in the ESEF taxonomy, an Â
extension to the taxonomy is created. Â
Extensions have to be anchored Â
to elements in the ESEF taxonomy, Â
except for elements corresponding to Â
subtotals. Â
The annual report 2022 for the ALK Â
Group submitted to the Danish Financial Â
Supervisory Authority and Nasdaq Â
consists of the XHTML document Â
together with some technical files all Â
included in a ZIP file named âALK-2022- Â
12-31-en.zipâ. Â Key definitions Â
XHTML (eXtensible HyperText Markup Â
Language) is a text-based markup Â
language used to structure and mark Â
up content such as text, images, and Â
hyperlinks in documents that are Â
displayed as Web pages in an updated Â
standard Web browser like Chrome or Â
Edge. Â iXBRL tags (or Inline XBRL tags) are Â
hidden meta-information embedded Â
in the source code of an XHTML Â
document in accordance with the Inline Â
XBRL 1.1 specification, which enables Â
the conversion of XHTML-formatted Â
information into a machine-readable Â
XBRL data record by appropriate Â
software. Â The tagging process is a process where Â
iXBRL tags are applied to financial Â
statement line items, notes etc. Â Taxonomy is an electronic dictionary Â
of business reporting elements used Â
to report business data. A taxonomy Â
element is an element defined in a Â
taxonomy that is used for the machine- Â
readable labeling of information in an Â
XBRL data record.  1.2 Significant accounting estimates and judgements  In the preparation of the consolidated Â
financial statements according to Â
IFRS, Management is required to make Â
certain estimates as many financial Â
statement items cannot be reliably Â
measured, but must be estimated. Â
Such estimates comprise judgements Â
made on the basis of the most recent Â
information available at the reporting Â
date. Â It may be necessary to change previous Â
estimates as a result of changes to the Â
assumptions on which the estimates Â
were based or due to supplementary  information, additional experience or Â
subsequent events. Similarly, the value Â
of assets and liabilities often depends Â
on future events that are somewhat Â
uncertain. In that connection, it is Â
necessary to set out e.g. a course of Â
events that reflects Managementâs Â
assessment of the most probable Â
course of events. Â Management considers those listed Â
below as the key accounting estimates Â
and related judgements used in the Â
preparation of the consolidated Â
financial statements. Â A description of significant accounting Â
estimates and judgements as well as Â
assumptions applied is included in the Â
relevant notes. Â Estimate/ Â
Note Â
Key accounting estimates and judgements Â
judgement Â
Sales deductions comprising rebates, discounts, and mandated Â
2.1 Revenue and segment information Â
Estimate Â
price adjustments Â
2.2 Expenses Â
Recognition of costs for outsourced clinical trials Â
Estimate Â
Provision for uncertain tax positions and measurement of Â
Estimate/ Â
2.7 Income tax and deferred tax Â
deferred tax assets Â
judgement Â
3.1 Intangible assets Â
Recoverable amount of goodwill Â
Estimate Â
Valuation of inventories and capitalisation of indirect production Â
3.4 Inventories Â
Estimate Â
costs  Segment information Â
Based on the internal reporting used by the Â
Board of Management to assess the results of Â
operations and allocation of resources, the ALK Â
Group has identified one operating segment Â
âAllergy treatmentâ, which is in accordance Â
with the way the activities are organised and Â
managed. Even though revenue within the Â
operating segment âAllergy treatmentâ can Â
be divided by product lines and market, the Â
main part of the activities within production, Â
research and development, sales and Â
marketing and administration are shared by Â
the ALK Group as a whole. The disclosures in Â
the financial statements include a breakdown Â
of revenue by product line and a geographical Â
breakdown of revenue and non-current assets. Â
The geographical information on markets is Â
based on customer and asset location. Â Revenue Â
The primary performance obligation of Â
the ALK Group is the sale and delivery of Â
own-manufactured goods and goods for resale Â
for allergy treatment. Revenue from the sale of Â
goods is recognised in the income statement Â
upon the control of the goods being transferred Â
to the customer, i.e. when goods are delivered. Â
Revenue is recognised by the ALK Group at a Â
point in time. Â The ALK Groupâs customers have payment terms that reflect the customer type and the market in which Â
sales take place, which typically varies from 0 to 180 days. Â Revenue is measured as the fair value of the consideration received or receivable. Â Revenue is measured exclusive of VAT, taxes etc. charged on behalf of third parties and less any Â
commissions and discounts in connection with sales. Â
Furthermore, revenue includes licence income and royalties from outlicensed products as well as Â
up-front payments, milestone payments and services in connection with partnerships. These revenues Â
are recognised in the income statement in accordance with the agreements and when the ALK Group Â
obtains the right to the payments, which is when services have been delivered to the customer or at the Â
point in time the subsequent sales occur. Â
When combined contracts are entered, the elements of the contracts are identified and assessed Â
separately for accounting purposes. Â Sales deductions comprising rebates, discounts, and mandated price adjustments are estimated Â
and accrued for at the time when the related sales are recorded. Management is required to make Â
significant estimates in the revenue recognition relating to the accruals for sales deductions as not all Â
conditions are known at the time of sale and as revenue can only be recognised to the extent that it is Â
probable that a significant reversal of the recognised revenue will not occur. Â
Managementâs estimate of accruals for sales deductions is based on a calculation taking into Â
consideration among other factors, existing contractual obligations, the extent of predictability, Â
historical experience with similar transactions and whether the consideration is highly susceptible to Â
factors outside ALKâs influence. Â
ALK considers the accruals established for sales deductions to be reasonable and appropriate based Â
on currently available information. The accruals for sales deductions are adjusted regularly as new or Â
more detailed information becomes available and when actual amounts are processed. Â Cost of sales Â
The item comprises cost of sales and production costs incurred in generating the revenue for the year. Â
Costs for raw materials, consumables, goods for resale, production staff and a proportion of production Â
overheads, including maintenance and depreciation, amortisation and impairment of tangible assets Â
and intangible assets used in production as well as operation, administration and management of Â
factories are recognised in cost of sales and production costs. In addition, the costs and write-down to Â
net realisable value of obsolete and slow-moving goods are recognised. Â Research and development expenses Â
The item comprises research and development expenses, including expenses incurred for wages Â
and salaries, amortisation, impairment of capitalised development projects in progress, and other Â
overheads as well as costs relating to research partnerships. Research expenses are recognised in the Â
income statement when incurred. Due to the long development periods and significant uncertainties Â
in relation to the development of new products, including risks regarding clinical trials and regulatory Â
approvals, it is the assessment that most of the ALK Groupâs development expenses do not meet the Â
capitalisation criteria in IAS 38, Intangible Assets. Consequently, development expenses are generally Â
recognised in the income statement when incurred. Development expenses relating to individual minor Â
development projects running for short-term periods and subject to limited risk are capitalised under Â
other intangible assets. Â Sales and marketing expenses Â
The item comprises selling and marketing expenses, including salaries and expenses relating to sales Â
staff, advertising and exhibitions, depreciation, amortisation and impairment losses on tangible assets Â
and intangible assets used in the sales and marketing process as well as other indirect costs. Â Administrative expenses Â
The item comprises expenses incurred for management and administration, including expenses for Â
administrative staff and management, office expenses and depreciation, amortisation and impairment Â
losses on tangible assets and intangible assets used in administration. Â Clinical trials, which are outsourced to Clinical Research Organisations (âCROsâ), take several years Â
to complete. As such, Management is required to make estimates based on the progress and costs Â
incurred to-date for the ongoing trials. Estimates are made in determining the amount of costs to be Â
expensed during the period or recognised as prepayments or accruals on the balance sheet. Â
At 31 December 2022, DKK 114 million is recognised as accrued expenses (2021: DKK 179 million) and Â
DKK 130 million as prepayments in the balance sheet (2021: DKK 240 million). In 2022, clinical trials Â
expenses of DKK 240 million have been recognised in the income statement (2021: DKK 242 million). Â Financial items comprise interest receivable and interest payable, the interest element of lease Â
payments, realised and unrealised gains and losses on securities, cash, liabilities and foreign currency Â
transactions, mortgage amortisation premium/allowance etc. and provisions for uncertain tax Â
position. Â
Interest expenses and income related to uncertain tax position are recognised on the balance sheet Â
as tax liabilities and tax assets respectively upon the receipt of ruling from the tax authorities and Â
correspondingly reflected in the income statement as financial items net. Â
Interest income and expenses are accrued based on the principal and the effective rate of interest. Â
The effective rate of interest is the discount rate to be used on discounting expected future payments Â
in relation to the financial asset or the financial liability so that their present value corresponds to the Â
carrying amount of the asset or liability, respectively. Â Tax on the profit for the year comprises the yearâs current tax and changes in deferred tax. The Â
tax expense relating to the profit/loss for the year is recognised in the income statement, and the Â
tax expense relating to items recognised in other comprehensive income and directly in equity, Â
respectively, is recognised in other comprehensive income or directly in equity. Exchange rate Â
adjustments of deferred tax are recognised as part of the adjustment of deferred tax for the year. Â
Current tax payable and receivable is recognised in the balance sheet as the expected tax on the Â
taxable income for the year, adjusted for tax paid on account. Â
The current tax charge for the year is calculated based on the tax rates and rules enacted at the balance Â
sheet date. Â
Uncertain tax position is recognised for those matters for which the tax determination is uncertain but it Â
is considered probable that there will be a future outflow of funds to a tax authority (and a future inflow Â
of funds from a tax authority). The uncertain tax position is measured at the best estimate of the amount Â
expected to become payable (and receivable). Â
Deferred tax is measured using the balance sheet liability method on all temporary differences between Â
the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised Â
on temporary differences relating to the initial recognition of goodwill or the initial recognition of a Â
transaction, apart from business combinations, and where the temporary difference existing at the Â
date of initial recognition affects neither profit/loss for the year nor taxable income. Â
Deferred tax is calculated based on the planned use of each asset and settlement of each liability, Â
respectively. Deferred tax is measured using the tax rates and tax rules that, based on legislation Â
enacted or in reality enacted at the balance sheet date, are expected to apply in the respective Â
countries when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a Â
result of changed tax rates or rules are recognised in the income statement, in other comprehensive Â
income or in equity, depending on where the deferred tax was originally recognised. Deferred tax Â
related to equity transactions is recognised in equity. Â
Deferred tax assets, including the tax value of tax loss carry-forwards, are recognised in the balance Â
sheet at the value at which the asset is expected to be realised, either through a set-off against deferred  tax liabilities or as net assets to be offset against future positive taxable income. Deferred tax assets Â
including the tax value of tax losses are recognised if it is probable that it can be utilised against future Â
taxable income within a foreseeable future. This includes an assessment of the possibilities to utilise tax Â
losses in the joint Danish taxation scheme with the Lundbeck Foundation (Lundbeckfond Invest A/S). Â
At each balance sheet date, it is reassessed whether it is likely that there will be sufficient future taxable Â
income for the deferred tax asset to be utilised. Â
The parent company is included in a joint Danish taxation scheme with the Lundbeck Foundation Â
(Lundbeckfond Invest A/S) and its Danish subsidiaries. The tax charge for the year is allocated among Â
the jointly taxed companies in proportion to the taxable incomes of individual companies, taking into Â
account taxes paid. Â Management is required to make an estimate in the recognition of deferred tax assets. This assessment Â
includes estimates of future taxable income in ALK and other members of the joint Danish taxation scheme Â
with the Lundbeck Foundation. The forecasts for ALK-Abelló A/S with increased positive results (EBT) is Â
based on growth in revenue and earnings driven by SLIT-tablets. Â
At 31 December 2022, the value of the total net deferred tax asset is DKK 712 million (2021: DKK 789 Â
million). It includes a net deferred tax asset in Denmark related to tax losses carried forward of DKK 343 Â
million (2021: DKK 328 million). Â
Complying with tax rules, when conducting business globally, can be complex as the interpretation of Â
legislation and case law may change over time or may not always be clear. Managementâs judgements Â
are applied to assess the possible effect of exposures and the possible outcome of disputes or Â
interpretational uncertainties when transfer pricing disputes with local tax authorities may occur. Â
Dialogue with local tax authorities, tax advisors, business plans and knowledge of the business are key Â
parameters for Management to estimate the tax assets and liabilities. Â
At 31 December 2022, the ALK Group recognises uncertain tax position as part of non-current tax. The Â
actual outcome may deviate and depends on the result of litigation and settlements with the relevant Â
local tax authorities. Â Goodwill Â
On initial recognition, goodwill is measured and recognised as the excess of the cost of the acquired Â
company over the fair value of the acquired assets, liabilities and contingent liabilities. Â
On recognition of goodwill, the goodwill amount is allocated to the ALK Groupâs cash-generating unit. Â
The ALK Group is considered as one cash-generating unit as the individual companies and business Â
units in the ALK Group cannot be evaluated separately due to the value-adding processes are generated Â
across corporations and entities. Â Goodwill is not amortised, but is tested for impairment at least once a year. To the extent that the Â
carrying amount of goodwill exceeds the recoverable amount, goodwill is written down to this lower Â
amount. Impairment of goodwill is not reversed. Â Software, patents, trademarks and rights Â
Acquired intellectual property rights in the form of software, patents, trademarks, licenses, customer Â
base, and similar rights are measured at cost less accumulated amortisation and impairment. Â
The cost of software includes costs of installation and direct salaries. Â
Intangible assets with determinable useful lives are amortised on a straight-line basis over the expected Â
useful lives of the assets, typically not exceeding 10 years. If the actual useful life is shorter than either Â
the remaining life or the contract period, the asset is amortised over this shorter useful life. The carrying Â
amounts are reviewed at the balance sheet date to determine whether there are any indications of Â
impairment. If such indications are identified, the recoverable amount of the asset is calculated to Â
determine any need for an impairment write-down and, if so, the amount of the write-down. Â
Intangible assets with indeterminable useful lives are not amortised, but are tested for impairment at Â
least once a year. To the extent that the carrying amount of the assets exceeds the recoverable amount, Â
the assets are written down to this lower amount. Â
See note 3.2 for more information on assessment, recognition and reversal of impairment. Â Other intangible assets Â
Other intangible assets includes individual minor development projects running for short-term periods, Â
including software development projects, which fulfil the requirements in IFRS. The measurement and Â
impairment follow the same rules as described above for software, patents, trademarks, and rights. Â The assessment of whether goodwill is impaired requires a determination of the value in use of the cash- Â
generating unit. The determination of the value in use requires estimates of the expected future cash Â
flow of the cash-generating unit and a reasonable discount rate. Â
At 31 December 2022, the carrying amount of goodwill is DKK 460 million (2021: DKK 457 million). Â Land and buildings, plant and machinery, and other fixtures and equipment are measured at cost less Â
accumulated depreciation and impairment. Land is not depreciated. Â
Cost comprises the purchase price and any costs directly attributable to the acquisition and any Â
preparation costs incurred until the date when the asset is available for use. Â
The depreciation base is cost less the estimated residual value at the end of the useful life. The residual Â
value is determined as the amount the company expects to obtain for the asset less costs of disposal. Â
The cost of an asset is divided into smaller components that are depreciated separately if such Â
components have different useful lives. Â
Tangible assets are depreciated on a straight-line basis over their estimated useful lives as follows: Â
Buildings Â
25-50 years Â
Plant and machinery Â
5-10 years Â
Other fixtures and equipment Â
5-10 years Â
Depreciation methods, useful lives and residual values are reassessed once a year. Â Impairment Â
The carrying amounts of tangible assets are reviewed at the balance sheet date to determine whether Â
there are any indications of impairment. If such indications are found, the recoverable amount of the Â
asset is calculated to determine any need for an impairment write-down and, if so, the amount of the Â
write-down. Â If the asset does not generate any cash flows independently of other assets, the recoverable amount is Â
calculated for the smallest cash-generating unit that includes the asset. Â
The recoverable amount is calculated as the higher of the fair value less costs to sell and the value in use Â
of the asset or the cash-generating unit, respectively. In determining the value in use, the estimated Â
future cash flows are discounted to their present value, using a discount rate reflecting current market Â
assessments of the time value of money as well as risks that are specific to the asset or the cash- Â
generating unit and which have not been taken into account in the estimated future cash flows. Â
If the recoverable amount of the asset or the cash-generating unit is lower than the carrying amount, Â
the carrying amount is written down to the recoverable amount. For the cash-generating unit, the write- Â
down is allocated in such a way that goodwill amounts are written down first, and any remaining need Â
for write-down is allocated to other assets in the unit, although no individual assets are written down to Â
a value lower than their fair value less costs to sell. Â
Impairment write-downs are recognised in the income statement. If write-downs are subsequently Â
reversed as a result of changes in the assumptions on which the calculation of the recoverable amount Â
is based, the carrying amount of the asset or the cash-generating unit is increased to the adjusted Â
recoverable amount, not, however, exceeding the carrying amount that the asset or cash-generating Â
unit would have had, had the write-down not been made. Â Lease liabilities Â
Lease assets are recognised at the commencement date of the contract if it is or contains a lease. Â
Lease assets are recognised at cost less accumulated depreciation and impairment. Cost is defined as Â
the lease liability adjusted for any lease payments made at or before the commencement date. Lease Â
assets are depreciated on a straight-line basis over the lease term. Â
On initial recognition, lease liabilities are measured as the present value of future payments. The lease Â
payments contain fixed payments less any lease incentives receivable and variable lease payments Â
that depend on an index or a rate. Â
On subsequent recognition, lease liabilities are measured at amortised cost. The difference between Â
the present value and the nominal value of lease payments is recognised in the income statement over Â
the term of the lease as a finance charge. Â
If the interest rate cannot be determined in the agreement, the lease payments are discounted using Â
the ALK Groupâs incremental borrowing rate adjusted for the functional currency and length of the lease Â
term. The lease liability is remeasured if or when the future payment or lease term changes. Â
Short term lease expenses and low value assets are not recognised as part of lease liabilities. They are Â
recognised in the income statement when incurred as an operating expense. Â Inventories are measured at cost determined under the FIFO method or net realisable value where this Â
is lower. Â
Cost comprises raw materials, goods for resale, and direct payroll costs as well as fixed and Â
variable production overheads. Variable production overheads comprise indirect materials and Â
payroll costs and are allocated based on predetermined costs of the goods actually produced. Fixed Â
production overheads comprise maintenance of and depreciation on the machines, factory buildings Â
and equipment used in the manufacturing process as well as the cost of factory management and Â
administration. Fixed production overheads are allocated based on the normal capacity of the Â
production plant. Â The net realisable value of inventories is calculated as the expected selling price less completion costs Â
and costs incurred in making the sale. Â
A minor part of ALKâs raw materials inventory contains biological assets from agricultural activities. Due Â
to missing market on which a fair value can be established these products are not valuated. Â The valuation of inventories includes Managementâs assessment of the saleability of the finished goods, Â
and the quality of raw materials to be used in the production process. If the expected sales price less Â
any completion costs and costs to execute sales (net realisable value) of inventories is lower than the Â
carrying amount, the inventories are written down to net realisable value. When assessing salability Â
and net realisable value, Management uses estimates for future sales and related costs. Â
End of 2022, the write-down of inventories to net realisable value amounted to DKK 85 million (2021: DKK Â
97 million). Â
Further, work in progress and manufactured goods and goods for resale are measured at cost including Â
indirect production costs. The indirect production costs are measured using a standard cost method. Â
This is reviewed regularly to ensure reliable measurement of employee costs, capacity utilisation, cost Â
drivers and other relevant factors. When including the indirect productions costs for capitalisation, Â
Management makes estimates about cost of production, standard cost variances, cost drivers and Â
capacity utilisation. Changes in these parameters may have a significant impact on the gross margin Â
and the overall valuation of work in progress and manufactured goods and goods for resale. Â
End of 2022, the indirect production costs capitalised under inventories amounted to DKK 442 million Â
(2021: DKK 406 million). Â On initial recognition, receivables are measured at fair value, subsequently at amortised cost. Â
Expected credit losses are measured based on historical data adjusted by forward-looking information. Â
Forward-looking information includes assessment of the probability of default as well as consideration Â
of various external sources of actual and economic information that is reasonable and supportable Â
without undue cost or effort. Â
ALK recognises expected credit losses that result from default events possible within the whole asset Â
life. Risk related to trade receivables is managed in ALK locally by entities, based on an individual Â
assessment. Loss allowance for doubtful trade receivables is also based on an individual assessment Â
of the receivables. ALK has not implemented a global provision matrix due to different characteristics Â
related to receivables across the ALK Group. Loss allowance are calculated based on variables, e.g. Â
probability-weighted amount (based on historical realised losses), the time value of money, additional Â
supportable information, including an individual assessment of each customer/customer group. Â
An impairment loss or reversal of prior impairment loss is recognised in the income statement. Â
Receivables are written down when information indicates severe financial difficulties and that there is Â
no reasonable expectation of recovery. Financial assets written off may still be subject to enforcement Â
activities. Any recoveries made are recognised in the income statement. Â Prepayments are recognised as an asset and comprise incurred costs relating to subsequent financial Â
years. Prepayments are measured at cost. Â The ALK Group has entered into pension agreements and similar agreements with some of the ALK Â
Groupâs employees. Â
In respect of defined contribution plans, the ALK Group pays in fixed contributions to independent pension Â
funds etc. The contributions are recognised in the income statement during the period in which the Â
employee renders the related service. Payments due are recognised as a liability in the balance sheet. Â
In respect of defined benefit plans, the ALK Group is required to pay an agreed benefit in connection with Â
the retirement of the employees covered by the plan, e.g. in the form of a fixed amount or a percentage of Â
the salary at retirement. Â
For defined benefit plans, an annual actuarial assessment is made of the net present value of future Â
benefits to which the employees have earned the right through their past service for the ALK Group and Â
which will have to be paid under the plan. The Projected Unit Credit Method is applied to determine net Â
present value. Â
The net present value is calculated based on assumptions of the future development of salary, interest, Â
inflation, mortality and disability rates. Â
The net present value of pension liabilities is recognised in the balance sheet, after deduction of the Â
fair value of any assets attached to the plan, as either plan assets or pension liabilities, depending on Â
whether the net amount is an asset or a liability, as described below. Â
If the assumptions made with respect to discount factor, inflation, mortality and disability are changed, Â
or if there is a discrepancy between the expected and realised return on plan assets, actuarial gains Â
or losses occur. These gains and losses concerning previous financial years are recognised in other Â
comprehensive income. Â Provisions are recognised when, as a consequence of a past event during the financial year or previous Â
years, the ALK Group has a legal or constructive obligation, and it is likely that settlement of the Â
obligation will require an outflow of the ALK Groupâs financial resources. Provisions are measured as the Â
best estimate of the costs required to settle the obligations at the balance sheet date. Provisions with an Â
expected term of more than a year after the balance sheet date are measured at present value. Â Other payables are recognised as a current liability and comprise costs due in the subsequent financial Â
year. Other payables are measured at amortised cost. Â Acquisition and sales sums arising on the purchase and sale of treasury shares and dividends on Â
treasury shares are recognised directly in retained earnings under equity. Â Financial assets Â
On initial recognition, investments and other financial assets are measured at cost, corresponding to Â
fair value. They are subsequently measured at fair value either through the income statement or through Â
comprehensive income. Â Financial liabilities Â
Other financial liabilities, including bank loans, lease liabilities, trade payables, and other payables, Â
are on initial recognition measured at fair value. The liabilities are subsequently measured at amortised Â
cost. Â Debt Â
Trade payables, other payables, including sales discounts and rebates as well as debt to public Â
authorities etc., are measured at amortised cost. Â Mortgage debt Â
Mortgage debt is recognised on the raising of a loan at cost, equalling fair value of the proceeds Â
received, and net of transaction costs incurred. Subsequently, mortgage debt is measured at amortised Â
cost. Â Share-based incentive plans (equity-settled share-based payments), which comprise share options Â
and performance share units, are measured at the grant date at fair value and recognised in the income Â
statement under the respective functions over the vesting period and offset in equity. Â
The fair value of share options is determined using the Black & Scholes model. The exercise price is Â
equivalent to the average market price of the share for the five trading days immediately preceeding the Â
date of grant and is increased by 2.5% p.a. and reduced by dividends paid. The fair value of performance Â
share units is determined using the average share price (closing) five days after annual general meeting. Â
The ALK Group settles the equity-settled share-based incentive plans in shares. However, the share Â
option agreement entitles the ALK Group to demand cash settlement of the options. The ALK Group Â
recognises share options, in case of cash settlement, as other liabilities and adjusts to fair value as from Â
the time when the ALK Group has an obligation to settle in cash. The ALK Group recognises subsequent Â
adjustment to fair value in the income statement under financial income or financial expenses. Â Cash flow Â
The cash flow statement of the ALK Group is presented using the indirect method and shows cash flows Â
from operating, investing and financing activities as well as cash at the beginning and at the end of the Â
financial year. Â
The cash effect of acquisitions and divestments is shown separately under cash flows from investing Â
activities. In the cash flow statement, cash flows concerning acquired companies are recognised from Â
the date of acquisition, while cash flows concerning divested companies are recognised until the date of Â
divestment. Â
Cash flows from operating activities are stated as net profit, adjusted for non-cash operating items and Â
changes in working capital, less the income tax paid and plus net financial items. Â
Cash flows from investing activities comprise payments in connection with acquisition and divestment of Â
companies and financial assets as well as purchase, development, improvement and sale of intangible Â
and tangible assets. Â
Cash flows from financing activities comprise changes to the parent companyâs share capital and Â
related costs as well as the raising and repayment of loans, instalments on interest-bearing debt, lease Â
liabilities, purchase of treasury shares, and settlement of share options and payment of dividends. Â Cash flows in currencies other than the functional currency are recognised in the cash flow statement Â
using average exchange rates for the individual months if these are a reasonable approximation of the Â
actual exchange rates at the transaction dates. If this is not the case, the actual exchange rates for the Â
specific days in questions are used. Â
Cash comprise cash subject to an insignificant risk of changes in value less any overdraft facilities that Â
are an integral part of the ALK Groupâs cash management. Â </ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory>
<ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory contextRef="ctx18" id="fact1770" xml:lang="en">1.1 General accounting policies  The consolidated financial statements Â
for the period 1 January to 31 Â
December 2022 have been prepared Â
in accordance with the International Â
Financial Reporting Standards (IFRS) Â
as adopted by the EU and in accordance Â
with Danish disclosure requirements Â
for listed companies. Additional Danish Â
disclosure requirements for annual Â
reports are imposed by the Statutory Â
Order on Adoption of IFRS issued under Â
the Danish Financial Statements Act. Â The consolidated financial statements Â
are presented in Danish kroner (DKK), Â
which is considered the primary Â
currency of the ALK Groupâs activities Â
and the functional currency of the Â
parent company. Â
The consolidated financial statements Â
are presented on a historical cost basis, Â
apart from certain financial instruments, Â
which are measured at fair value. Â
The general accounting policies Â
described below apply to the Â
consolidated financial statements as Â
a whole. To enhance understanding, Â
specific accounting policies are Â
described in the notes to which they Â
relate. The description of accounting Â
policies in the notes form part of the Â
overall description of accounting Â
policies. Â The accounting policies are unchanged Â
from last year except for the below Â
mentioned impacts of new standards. Â New standards effective from Â
1 January 2022 Â
The ALK Group has implemented all Â
new and amended standards and IFRIC Â
interpretations which are effective Â
for the financial year 2022. This has Â
not resulted in any changes to the Â
accounting policies of the ALK Group. Â New standards effective on or after Â
1 January 2023 Â
A number of IFRS standards, amended Â
standards and IFRIC interpretations, Â
which are effective on or after 1 January Â
2023, have not been implemented. Â
Based on a preliminary assessment it Â
is estimated that these standards and Â
interpretations will have no material Â
impact on the consolidated financial Â
statements. Â Basis of consolidation Â
The consolidated financial statements Â
comprise the financial statements of Â
ALK-Abelló A/S (the parent company) Â
and companies (subsidiaries) Â
controlled by the parent company. Â
The consolidated financial statements Â
are prepared as a consolidation of Â
items of a uniform nature. The financial  statements used for consolidation are Â
prepared in accordance with the ALK Â
Groupâs accounting policies. Â
On consolidation, intra-group income Â
and expenses, intra-group balances Â
and dividends, and gains and losses Â
arising on intra-group transactions are Â
eliminated. Â Foreign currency translation Â
On initial recognition, transactions Â
denominated in currencies other Â
than DKK are translated at average Â
exchange rates, which are an Â
approximation of the exchange rates Â
at the transaction date. Receivables Â
and debt and other monetary items not Â
settled at the balance sheet date are Â
translated at the closing rate. Â
Exchange rate differences between Â
the exchange rate at the date of Â
the transaction and the exchange Â
rate at the date of payment or the Â
balance sheet date, respectively, are Â
recognised in the income statement Â
under financial items. Tangible assets Â
and intangible assets, inventories and Â
other nonmonetary assets acquired in Â
foreign currency and measured based Â
on historical cost are translated at the Â
exchange rates at the transaction date. Â On recognition in the consolidated Â
financial statements of subsidiaries Â
whose financial statements are Â
presented in a functional currency other Â
than DKK, the income statements are Â
translated at average exchange rates Â
for the respective months, unless these Â
deviate materially from the actual Â
exchange rates at the transaction Â
dates. In that case, the actual exchange Â
rates are used. Balance sheet items Â
are translated at the exchange rates Â
at the balance sheet date. Goodwill is Â
considered to belong to the acquired Â
company in question and is translated Â
at the exchange rate at the balance Â
sheet date. Â
Exchange rate differences arising on Â
the translation of foreign subsidiariesâ Â
opening balance sheet items to the Â
exchange rates at the balance sheet Â
date and on the translation of the Â
income statements from average Â
exchange rates to exchange rates at the Â
balance sheet date are recognised in Â
other comprehensive income. Â
Foreign exchange rate adjustment of Â
receivables or debt to subsidiaries Â
which are considered part of the Â
parent companyâs overall investment Â
in the subsidiary in question are also Â
recognised in other comprehensive  income in the consolidated financial Â
statements. Â Definitions and ratios Â
The key ratios have been calculated in Â
accordance with generally accepted Â
financial ratios applied by financial Â
analysts. Definitions are shown on page Â
94. Â
Reporting under the ESEF regulation Â
The Commission Delegated Regulation Â
(EU) 2019/815 on the European Â
Single Electronic Format (ESEF) (ESEF Â
Regulation) has introduced a single Â
electronic reporting format for the Â
annual financial reports of issuers with Â
securities listed on the EU regulated Â
markets. Â
The ESEF Regulation sets out the Â
following main requirements: (1) Â
Issuers shall draw up and disclose Â
their annual financial reports using Â
the XHTML format; and (2) issuers that Â
draw-up their primary consolidated Â
financial statements in accordance Â
with IFRS as endorsed by the EU shall Â
tag those consolidated financial Â
statements using inline eXtensible Â
Business Reporting Language (iXBRL) Â
including block-tag of the notes to the Â
consolidated financial statements. Â ESEF data Â
Name of reporting entity or other Â
means of identification Â
ALK-Abelló A/S
Domicile of entity Â
Denmark
Legal form of entity Â
A/S
Country of incorporation Â
Denmark
Address of entityâs registered office Â
Bøge Allé 6-8, DK-2970 Hørsholm
Principal place of business Â
Global
Description of nature of entityâs Â
operations and principal activities Â
ALK is a global allergy solutions
company Â
Name of parent entity Â
Lundbeckfond Invest A/S
Name of ultimate parent of group Â
Lundbeck FoundationThe combination of the XHTML Â
format with the iXBRL tags makes the Â
annual financial reports both human- Â
readable and machine-readable, Â
thus enhancing accessibility, analysis Â
and comparability of the information Â
included in the annual financial reports. Â
iXBRL tags shall comply with the ESEF Â
taxonomy, which is included in the ESEF Â
Regulation and developed based on the Â
IFRS taxonomy published by the IFRS Â
Foundation. Â
As part of the tagging process financial Â
statement line items are marked up Â
to elements in the ESEF taxonomy. Â
If a financial statement line item is Â
not defined in the ESEF taxonomy, an Â
extension to the taxonomy is created. Â
Extensions have to be anchored Â
to elements in the ESEF taxonomy, Â
except for elements corresponding to Â
subtotals. Â
The annual report 2022 for the ALK Â
Group submitted to the Danish Financial Â
Supervisory Authority and Nasdaq Â
consists of the XHTML document Â
together with some technical files all Â
included in a ZIP file named âALK-2022- Â
12-31-en.zipâ. Â Key definitions Â
XHTML (eXtensible HyperText Markup Â
Language) is a text-based markup Â
language used to structure and mark Â
up content such as text, images, and Â
hyperlinks in documents that are Â
displayed as Web pages in an updated Â
standard Web browser like Chrome or Â
Edge. Â iXBRL tags (or Inline XBRL tags) are Â
hidden meta-information embedded Â
in the source code of an XHTML Â
document in accordance with the Inline Â
XBRL 1.1 specification, which enables Â
the conversion of XHTML-formatted Â
information into a machine-readable Â
XBRL data record by appropriate Â
software. Â The tagging process is a process where Â
iXBRL tags are applied to financial Â
statement line items, notes etc. Â Taxonomy is an electronic dictionary Â
of business reporting elements used Â
to report business data. A taxonomy Â
element is an element defined in a Â
taxonomy that is used for the machine- Â
readable labeling of information in an Â
XBRL data record.  1.2 Significant accounting estimates and judgements  In the preparation of the consolidated Â
financial statements according to Â
IFRS, Management is required to make Â
certain estimates as many financial Â
statement items cannot be reliably Â
measured, but must be estimated. Â
Such estimates comprise judgements Â
made on the basis of the most recent Â
information available at the reporting Â
date. Â It may be necessary to change previous Â
estimates as a result of changes to the Â
assumptions on which the estimates Â
were based or due to supplementary  information, additional experience or Â
subsequent events. Similarly, the value Â
of assets and liabilities often depends Â
on future events that are somewhat Â
uncertain. In that connection, it is Â
necessary to set out e.g. a course of Â
events that reflects Managementâs Â
assessment of the most probable Â
course of events. Â Management considers those listed Â
below as the key accounting estimates Â
and related judgements used in the Â
preparation of the consolidated Â
financial statements. Â A description of significant accounting Â
estimates and judgements as well as Â
assumptions applied is included in the Â
relevant notes. Â Estimate/ Â
Note Â
Key accounting estimates and judgements Â
judgement Â
Sales deductions comprising rebates, discounts, and mandated Â
2.1 Revenue and segment information Â
Estimate Â
price adjustments Â
2.2 Expenses Â
Recognition of costs for outsourced clinical trials Â
Estimate Â
Provision for uncertain tax positions and measurement of Â
Estimate/ Â
2.7 Income tax and deferred tax Â
deferred tax assets Â
judgement Â
3.1 Intangible assets Â
Recoverable amount of goodwill Â
Estimate Â
Valuation of inventories and capitalisation of indirect production Â
3.4 Inventories Â
Estimate Â
costs  2.1 Revenue and segment information Â
Europe Â
North America Â
International markets Â
Total Â
Amounts in DKKm Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
SCIT/SLIT-drops Â
1,266 Â
1,273 Â
349 Â
302 Â
133 Â
80 Â
1,748 Â
1,655 Â
SLIT-tablets Â
1,519 Â
1,340 Â
151 Â
120 Â
432 Â
314 Â
2,102 Â
1,774 Â
Other products and services Â
273 Â
196 Â
357 Â
261 Â
31 Â
30 Â
661 Â
487 Â
Total revenue Â
3,058 Â
2,809 Â
857 Â
683 Â
596 Â
424 Â
4 , 511 Â
3,916 Â
Sale of goods Â
4,411 Â
3,835 Â
Royalties Â
93 Â
81 Â
Services Â
7
-
Total revenue Â
4 , 511 Â
3,916 Â
Of total revenue, DKK 119 million (2021: DKK 101 million) is derived from Denmark. Â
The ALK Groupâs non-current tangible and intangible assets are distributed among the following geographical markets: Â
Europe Â
North America Â
International markets Â
Total Â
Amounts in DKKm Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
Non-current tangible and Â
intangible assets Â
1,754 Â
1,671 Â
899 Â
763 Â
7
2
2,660 Â
2,436 Â
Of total non-current tangible and intangible assets, DKK 1,356 million relates to assets in Denmark (2021: DKK 1,283 million). Â Segment information Â
Based on the internal reporting used by the Â
Board of Management to assess the results of Â
operations and allocation of resources, the ALK Â
Group has identified one operating segment Â
âAllergy treatmentâ, which is in accordance Â
with the way the activities are organised and Â
managed. Even though revenue within the Â
operating segment âAllergy treatmentâ can Â
be divided by product lines and market, the Â
main part of the activities within production, Â
research and development, sales and Â
marketing and administration are shared by Â
the ALK Group as a whole. The disclosures in Â
the financial statements include a breakdown Â
of revenue by product line and a geographical Â
breakdown of revenue and non-current assets. Â
The geographical information on markets is Â
based on customer and asset location. Â Revenue Â
The primary performance obligation of Â
the ALK Group is the sale and delivery of Â
own-manufactured goods and goods for resale Â
for allergy treatment. Revenue from the sale of Â
goods is recognised in the income statement Â
upon the control of the goods being transferred Â
to the customer, i.e. when goods are delivered. Â
Revenue is recognised by the ALK Group at a Â
point in time. Â The ALK Groupâs customers have payment terms that reflect the customer type and the market in which Â
sales take place, which typically varies from 0 to 180 days. Â Revenue is measured as the fair value of the consideration received or receivable. Â Revenue is measured exclusive of VAT, taxes etc. charged on behalf of third parties and less any Â
commissions and discounts in connection with sales. Â
Furthermore, revenue includes licence income and royalties from outlicensed products as well as Â
up-front payments, milestone payments and services in connection with partnerships. These revenues Â
are recognised in the income statement in accordance with the agreements and when the ALK Group Â
obtains the right to the payments, which is when services have been delivered to the customer or at the Â
point in time the subsequent sales occur. Â
When combined contracts are entered, the elements of the contracts are identified and assessed Â
separately for accounting purposes. Â Sales deductions comprising rebates, discounts, and mandated price adjustments are estimated Â
and accrued for at the time when the related sales are recorded. Management is required to make Â
significant estimates in the revenue recognition relating to the accruals for sales deductions as not all Â
conditions are known at the time of sale and as revenue can only be recognised to the extent that it is Â
probable that a significant reversal of the recognised revenue will not occur. Â
Managementâs estimate of accruals for sales deductions is based on a calculation taking into Â
consideration among other factors, existing contractual obligations, the extent of predictability, Â
historical experience with similar transactions and whether the consideration is highly susceptible to Â
factors outside ALKâs influence. Â
ALK considers the accruals established for sales deductions to be reasonable and appropriate based Â
on currently available information. The accruals for sales deductions are adjusted regularly as new or Â
more detailed information becomes available and when actual amounts are processed. Â Cost of sales Â
The item comprises cost of sales and production costs incurred in generating the revenue for the year. Â
Costs for raw materials, consumables, goods for resale, production staff and a proportion of production Â
overheads, including maintenance and depreciation, amortisation and impairment of tangible assets Â
and intangible assets used in production as well as operation, administration and management of Â
factories are recognised in cost of sales and production costs. In addition, the costs and write-down to Â
net realisable value of obsolete and slow-moving goods are recognised. Â Research and development expenses Â
The item comprises research and development expenses, including expenses incurred for wages Â
and salaries, amortisation, impairment of capitalised development projects in progress, and other Â
overheads as well as costs relating to research partnerships. Research expenses are recognised in the Â
income statement when incurred. Due to the long development periods and significant uncertainties Â
in relation to the development of new products, including risks regarding clinical trials and regulatory Â
approvals, it is the assessment that most of the ALK Groupâs development expenses do not meet the Â
capitalisation criteria in IAS 38, Intangible Assets. Consequently, development expenses are generally Â
recognised in the income statement when incurred. Development expenses relating to individual minor Â
development projects running for short-term periods and subject to limited risk are capitalised under Â
other intangible assets. Â Sales and marketing expenses Â
The item comprises selling and marketing expenses, including salaries and expenses relating to sales Â
staff, advertising and exhibitions, depreciation, amortisation and impairment losses on tangible assets Â
and intangible assets used in the sales and marketing process as well as other indirect costs. Â Administrative expenses Â
The item comprises expenses incurred for management and administration, including expenses for Â
administrative staff and management, office expenses and depreciation, amortisation and impairment Â
losses on tangible assets and intangible assets used in administration. Â Clinical trials, which are outsourced to Clinical Research Organisations (âCROsâ), take several years Â
to complete. As such, Management is required to make estimates based on the progress and costs Â
incurred to-date for the ongoing trials. Estimates are made in determining the amount of costs to be Â
expensed during the period or recognised as prepayments or accruals on the balance sheet. Â
At 31 December 2022, DKK 114 million is recognised as accrued expenses (2021: DKK 179 million) and Â
DKK 130 million as prepayments in the balance sheet (2021: DKK 240 million). In 2022, clinical trials Â
expenses of DKK 240 million have been recognised in the income statement (2021: DKK 242 million).  2.3 Depreciation, amortisation and impairment Â
Amounts in DKKm Â
2022 Â
2021 Â
Depreciation, amortisation and impairment allocation: Â
Cost of sales Â
163 Â
158 Â
Research and development expenses Â
9
8
Sales and marketing expenses Â
23 Â
36 Â
Administrative expenses Â
43 Â
40 Â
Total Â
238 Â
242 Â
Impairment amounts to DKK 2 million (2021: DKK 20 million), of which DKK 1 million relates to impairment Â
of tangible assets (2021: DKK 8 million) and DKK 1 million relates to intangible assets (2021: DKK 12 Â
million). Â
The impairment of tangible assets is related to impairment of production equipment of DKK 1 million with Â
no recoverable amount after impairment. The impairment is recognised as cost of sales. Â
The impairment of intangible assets is related to impairment of goodwill of DKK 1 million with no Â
recoverable amount after impairment. The impairment is associated with closing down activities in Â
Turkey and is recognised as sales and marketing expenses.  2.4 Staff costs Â
2022 Â
2021 Â
Amounts in DKKm Â
Wages and salaries Â
1,584 Â
1,425 Â
Pensions, cf. note 3.7 Â
131 Â
115 Â
Other social security costs, etc. Â
207 Â
193 Â
Share-based payments, cf. note 5.1 Â
27 Â
35 Â
Total Â
1,949 Â
1,768 Â
Staff costs are allocated as follows: Â
Cost of sales Â
747 Â
682 Â
Research and development expenses Â
279 Â
254 Â
Sales and marketing expenses Â
673 Â
604 Â
Administrative expenses Â
187 Â
170 Â
Included in the cost of assets Â
63 Â
58 Â
Total Â
1,949 Â
1,768 Â
Remuneration to Management: Â
Remuneration to Board of Management:* Â
Salaries Â
19 Â
18 Â
Short-term incentive (cash bonus) Â
12 Â
12 Â
Pensions Â
1
1
Long-term incentives (share-based) based on expensed accounting value Â
7
11 Â
Total remuneration to Board of Management Â
39 Â
42 Â
Remuneration to Board of Directors Â
6
5
Total remuneration to Board of Management and Board of Directors Â
45 Â
47 Â
Employees Â
Average number (FTE) Â
2,609 Â
2,492 Â
Number year end (FTE) Â
2,680 Â
2,537 Â
*
The expensed costs include DKK 0 (2021: DKK 5 million) related to adjustment in the share options and performance share Â
units expected to vest.  2.5 Fees to the ALK Groupâs auditors Â
2022 Â
2021 Â
Amounts in DKKm Â
Fees to the auditors appointed at the annual general meeting: Â
Audit services Â
3
3
Other opinions Â
-
-
Tax advisory services Â
-
1
Other services Â
1
-
Total Â
4
4
The fee for non-audit services provided by PricewaterhouseCoopers Statsautoriseret Â
Revisionspartnerselskab (Denmark) of DKK 1 million (2021: DKK 1 million) relates to HR consulting and Â
other general financial accounting matters. Â
For information on ALK entities intended to be exempt from local audits of the 2022 accounts, see Â
note 5.6.  2.6 Financial income and expenses Â
2022 Â
2021 Â
Amounts in DKKm Â
Interest income Â
4
1
Financial income from financial assets measured at amortised cost Â
4
1
Currency gains, net Â
-
9
Total financial income Â
4
10 Â
Interest expenses* Â
22 Â
23 Â
Financial expenses from financial liabilities measured at amortised cost Â
22 Â
23 Â
Interest expenses on uncertain tax positions, net Â
2
-
Currency losses, net Â
3
-
Total financial expenses Â
27 Â
23 Â
* Includes interest expenses related to leasing of DKK 6 million (2021: DKK 7 million).  Financial items comprise interest receivable and interest payable, the interest element of lease Â
payments, realised and unrealised gains and losses on securities, cash, liabilities and foreign currency Â
transactions, mortgage amortisation premium/allowance etc. and provisions for uncertain tax Â
position. Â
Interest expenses and income related to uncertain tax position are recognised on the balance sheet Â
as tax liabilities and tax assets respectively upon the receipt of ruling from the tax authorities and Â
correspondingly reflected in the income statement as financial items net. Â
Interest income and expenses are accrued based on the principal and the effective rate of interest. Â
The effective rate of interest is the discount rate to be used on discounting expected future payments Â
in relation to the financial asset or the financial liability so that their present value corresponds to the Â
carrying amount of the asset or liability, respectively.  2.7 Income tax and deferred tax Â
2022 Â
2021 Â
Amounts in DKKm Â
Tax on profit Â
Current income tax Â
91 Â
154 Â
Adjustment of deferred tax Â
20 Â
(97) Â
Prior years adjustments, income tax Â
3
3
Prior years adjustments, deferred tax Â
(2) Â
-
Tax on profit for the year Â
112 Â
60 Â
Profit before tax Â
447 Â
279 Â
Income tax, tax rate of 22% (2021: 22%) Â
98 Â
61 Â
Effect of deviation of foreign subsidiariesâ tax rate Â
relative to Danish tax rate Â
14 Â
11 Â
Permanent differences Â
(10) Â
(14) Â
Other taxes and adjustments Â
11 Â
1
Change in valuation of net tax assets Â
(2) Â
(2) Â
Prior years adjustments, income tax Â
3
3
Prior years adjustments, deferred tax Â
(2) Â
-
Tax on profit for the year Â
112 Â
60 Â
Tax related to equity comprises an expense of DKK 16 million (2021: income of DKK 10 million) and other Â
comprehensive income comprises an expense of DKK 26 million (2021: expense of DKK 9 million). Â Intangible Â
Tangible Â
Current and Â
Tax losses Â
assets Â
assets Â
other assets Â
Liabilities Â
carried forward Â
Total Â
Amounts in DKKm Â
2022 Â
Deferred tax Â
Carrying amount beginning of year Â
(20) Â
(98) Â
438 Â
129 Â
340 Â
789 Â
Adjustment to prior yearsâ deferred tax Â
-
(3) Â
1
2
2
2
Adjustment of receivables from group companies Â
-
-
-
-
(17) Â
(17) Â
Currency adjustments Â
-
(3) Â
-
2
1
-
Adjustment of deferred tax due to coming year change of tax rates Â
-
(1) Â
-
1
-
-
Recognised in the income statement, net Â
(4) Â
(2) Â
(37) Â
-
21 Â
(22) Â
Change in valuation of net tax assets Â
-
-
-
2
-
2
Recognised in other comprehensive income, net Â
-
-
-
(30) Â
4
(26) Â
Recognised in equity, net (share-based payments) Â
-
-
(32) Â
-
16 Â
(16) Â
Carrying amount year end Â
(24) Â
(107) Â
370 Â
106 Â
367 Â
712 Â
2021 Â
Deferred tax Â
Carrying amount beginning of year Â
(7) Â
(103) Â
340 Â
135 Â
332 Â
697 Â
Adjustment to prior yearsâ deferred tax Â
3
1
(4) Â
-
-
-
Adjustment of receivables from group companies Â
-
-
-
-
(6) Â
(6) Â
Currency adjustments Â
-
(2) Â
-
1
1
-
Recognised in the income statement, net Â
(16) Â
6
125 Â
(4) Â
(16) Â
95 Â
Change in valuation of net tax assets Â
-
-
-
2
-
2
Recognised in other comprehensive income, net Â
-
-
-
(5) Â
(4) Â
(9) Â
Recognised in equity, net (share-based payments) Â
-
-
(23) Â
-
33 Â
10 Â
Carrying amount year end Â
(20) Â
(98) Â
438 Â
129 Â
340 Â
789 Â
Deferred tax consists of deferred tax assets of DKK 716 million (2021: DKK 790 million) and deferred tax liabilities of DKK 4 million (2021: DKK 1 million). Â
Unrecognised deferred tax assets comprising tax losses carried forward amount to DKK 11 million and relate to US entities (2021: DKK 14 million). The tax losses have no expiry date. Â Tax on the profit for the year comprises the yearâs current tax and changes in deferred tax. The Â
tax expense relating to the profit/loss for the year is recognised in the income statement, and the Â
tax expense relating to items recognised in other comprehensive income and directly in equity, Â
respectively, is recognised in other comprehensive income or directly in equity. Exchange rate Â
adjustments of deferred tax are recognised as part of the adjustment of deferred tax for the year. Â
Current tax payable and receivable is recognised in the balance sheet as the expected tax on the Â
taxable income for the year, adjusted for tax paid on account. Â
The current tax charge for the year is calculated based on the tax rates and rules enacted at the balance Â
sheet date. Â
Uncertain tax position is recognised for those matters for which the tax determination is uncertain but it Â
is considered probable that there will be a future outflow of funds to a tax authority (and a future inflow Â
of funds from a tax authority). The uncertain tax position is measured at the best estimate of the amount Â
expected to become payable (and receivable). Â
Deferred tax is measured using the balance sheet liability method on all temporary differences between Â
the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised Â
on temporary differences relating to the initial recognition of goodwill or the initial recognition of a Â
transaction, apart from business combinations, and where the temporary difference existing at the Â
date of initial recognition affects neither profit/loss for the year nor taxable income. Â
Deferred tax is calculated based on the planned use of each asset and settlement of each liability, Â
respectively. Deferred tax is measured using the tax rates and tax rules that, based on legislation Â
enacted or in reality enacted at the balance sheet date, are expected to apply in the respective Â
countries when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a Â
result of changed tax rates or rules are recognised in the income statement, in other comprehensive Â
income or in equity, depending on where the deferred tax was originally recognised. Deferred tax Â
related to equity transactions is recognised in equity. Â
Deferred tax assets, including the tax value of tax loss carry-forwards, are recognised in the balance Â
sheet at the value at which the asset is expected to be realised, either through a set-off against deferred  tax liabilities or as net assets to be offset against future positive taxable income. Deferred tax assets Â
including the tax value of tax losses are recognised if it is probable that it can be utilised against future Â
taxable income within a foreseeable future. This includes an assessment of the possibilities to utilise tax Â
losses in the joint Danish taxation scheme with the Lundbeck Foundation (Lundbeckfond Invest A/S). Â
At each balance sheet date, it is reassessed whether it is likely that there will be sufficient future taxable Â
income for the deferred tax asset to be utilised. Â
The parent company is included in a joint Danish taxation scheme with the Lundbeck Foundation Â
(Lundbeckfond Invest A/S) and its Danish subsidiaries. The tax charge for the year is allocated among Â
the jointly taxed companies in proportion to the taxable incomes of individual companies, taking into Â
account taxes paid. Â Management is required to make an estimate in the recognition of deferred tax assets. This assessment Â
includes estimates of future taxable income in ALK and other members of the joint Danish taxation scheme Â
with the Lundbeck Foundation. The forecasts for ALK-Abelló A/S with increased positive results (EBT) is Â
based on growth in revenue and earnings driven by SLIT-tablets. Â
At 31 December 2022, the value of the total net deferred tax asset is DKK 712 million (2021: DKK 789 Â
million). It includes a net deferred tax asset in Denmark related to tax losses carried forward of DKK 343 Â
million (2021: DKK 328 million). Â
Complying with tax rules, when conducting business globally, can be complex as the interpretation of Â
legislation and case law may change over time or may not always be clear. Managementâs judgements Â
are applied to assess the possible effect of exposures and the possible outcome of disputes or Â
interpretational uncertainties when transfer pricing disputes with local tax authorities may occur. Â
Dialogue with local tax authorities, tax advisors, business plans and knowledge of the business are key Â
parameters for Management to estimate the tax assets and liabilities. Â
At 31 December 2022, the ALK Group recognises uncertain tax position as part of non-current tax. The Â
actual outcome may deviate and depends on the result of litigation and settlements with the relevant Â
local tax authorities.  3.1 Intangible assets Â
Patents, Â
Other Â
trademarks Â
intangible Â
Goodwill Â
Software Â
and rights Â
assets* Â
Total Â
Amounts in DKKm Â
2022 Â
Cost beginning of year Â
479 Â
420 Â
236 Â
249 Â
1,384 Â
Currency adjustments Â
4
-
3
2
9
Additions Â
-
8
-
47 Â
55 Â
Disposals Â
(1) Â
(4) Â
(32) Â
-
(37) Â
Transfer to/from other groups Â
-
35 Â
-
(35) Â
-
Cost year end Â
482 Â
459 Â
207 Â
263 Â
1,411 Â
Amortisation and impairment Â
beginning of year Â
22 Â
332 Â
225 Â
183 Â
762 Â
Currency adjustments Â
-
1
3
1
5
Amortisation for the year Â
-
28 Â
6
4
38 Â
Disposals during the year Â
(1) Â
(4) Â
(32) Â
-
(37) Â
Impairment during the year, Â
cf. note 2.3 Â
1
-
-
-
1
Amortisation and Â
impairment year end Â
22 Â
357 Â
202 Â
188 Â
769 Â
Carrying amount year end Â
460 Â
102 Â
5
75 Â
642 Â
* Other intangible assets includes individual minor development projects running for short-term periods. Â Patents, Â
Other Â
trademarks Â
intangible Â
Goodwill Â
Software Â
and rights Â
assets* Â
Total Â
Amounts in DKKm Â
2021 Â
Cost beginning of year Â
475 Â
396 Â
231 Â
245 Â
1,347 Â
Currency adjustments Â
4
1
5
1
11 Â
Additions Â
-
8
1
36 Â
45 Â
Disposals Â
-
(17) Â
(1) Â
(1) Â
(19) Â
Transfer to/from other groups Â
-
32 Â
-
(32) Â
-
Cost year end Â
479 Â
420 Â
236 Â
249 Â
1,384 Â
Amortisation and impairment Â
beginning of year Â
23 Â
313 Â
214 Â
173 Â
723 Â
Currency adjustments Â
(1) Â
-
4
1
4
Amortisation for the year Â
-
25 Â
7
9
41 Â
Disposals during the year Â
-
(17) Â
(1) Â
-
(18) Â
Impairment during the year, Â
cf. note 2.3 Â
-
11 Â
1
-
12 Â
Amortisation and Â
impairment year end Â
22 Â
332 Â
225 Â
183 Â
762 Â
Carrying amount year end Â
457 Â
88 Â
11 Â
66 Â
622 Â Goodwill Â
Goodwill is related to acquisition of companies in previous years and has been subject to an impairment Â
test, which has been submitted to the Audit Committee for subsequent approval by the Board of Â
Directors. The impairment test performed in 2022 revealed no need for impairment of goodwill. Â
Impairment of goodwill in 2022 of DKK 1 million is associated with closing down activities in Turkey. Â
Goodwill has been tested at an aggregated level for ALK as one cash-generating unit. In the calculation Â
of the value in use of the cash-generating unit, future free net cash flow is estimated based on Board Â
of Directors-approved budget (2023) and financial forecasts (2024-2025) in line with the ALK Groupâs Â
strategy. Â
The budget and the forecast plans are based on specific future business initiatives for which the risks Â
relating to key parameters have been assessed and recognised in estimated future free cash flows. Â
The key parameters in the calculation of the value in use are revenue, earnings, working capital, Â
capital expenditure, discount rate and the preconditions for the terminal value. Estimates are based on Â
historical data and expectations on future changes in the markets and products. These expectations Â
are based on a number of assumptions including expected product launches, volume forecasts, price Â
information and profitability of both the ALK Groupâs business as well as geographical expansions. Â
For financial years after the three year forecast period (2023-2025), the cash flows in the most recent Â
period have been extrapolated adjusted for a growth factor of 1.5% (2021: 1.5%) during the terminal Â
period. The discount rate used is 9.6% pre-tax and 7.5% after tax (2021: 9% pre-tax and 7% after tax). Â
The calculated value in use shows that future earnings and cash flows fully support the carrying amount Â
of total net assets, including goodwill. Â Goodwill Â
On initial recognition, goodwill is measured and recognised as the excess of the cost of the acquired Â
company over the fair value of the acquired assets, liabilities and contingent liabilities. Â
On recognition of goodwill, the goodwill amount is allocated to the ALK Groupâs cash-generating unit. Â
The ALK Group is considered as one cash-generating unit as the individual companies and business Â
units in the ALK Group cannot be evaluated separately due to the value-adding processes are generated Â
across corporations and entities. Â Goodwill is not amortised, but is tested for impairment at least once a year. To the extent that the Â
carrying amount of goodwill exceeds the recoverable amount, goodwill is written down to this lower Â
amount. Impairment of goodwill is not reversed. Â Software, patents, trademarks and rights Â
Acquired intellectual property rights in the form of software, patents, trademarks, licenses, customer Â
base, and similar rights are measured at cost less accumulated amortisation and impairment. Â
The cost of software includes costs of installation and direct salaries. Â
Intangible assets with determinable useful lives are amortised on a straight-line basis over the expected Â
useful lives of the assets, typically not exceeding 10 years. If the actual useful life is shorter than either Â
the remaining life or the contract period, the asset is amortised over this shorter useful life. The carrying Â
amounts are reviewed at the balance sheet date to determine whether there are any indications of Â
impairment. If such indications are identified, the recoverable amount of the asset is calculated to Â
determine any need for an impairment write-down and, if so, the amount of the write-down. Â
Intangible assets with indeterminable useful lives are not amortised, but are tested for impairment at Â
least once a year. To the extent that the carrying amount of the assets exceeds the recoverable amount, Â
the assets are written down to this lower amount. Â
See note 3.2 for more information on assessment, recognition and reversal of impairment. Â Other intangible assets Â
Other intangible assets includes individual minor development projects running for short-term periods, Â
including software development projects, which fulfil the requirements in IFRS. The measurement and Â
impairment follow the same rules as described above for software, patents, trademarks, and rights. Â The assessment of whether goodwill is impaired requires a determination of the value in use of the cash- Â
generating unit. The determination of the value in use requires estimates of the expected future cash Â
flow of the cash-generating unit and a reasonable discount rate. Â
At 31 December 2022, the carrying amount of goodwill is DKK 460 million (2021: DKK 457 million).  3.2 Property, plant and equipment Â
Property, Â
Other Â
plant and Â
Land and Â
Plant and fixtures and equipment Â
buildings* Â
machinery equipment in progress Â
Total Â
Amounts in DKKm Â
2022 Â
Cost beginning of year Â
1,623 Â
1,028 Â
272 Â
325 Â
3,248 Â
Currency adjustments Â
35 Â
19 Â
2
5
61 Â
Additions Â
83 Â
23 Â
11 Â
260 Â
377 Â
Lease contract modifications Â
(17) Â
-
-
-
(17) Â
Disposals Â
(11) Â
(67) Â
(11) Â
-
(89) Â
Transfer to/from other groups Â
30 Â
45 Â
4
(79) Â
-
Cost year end Â
1,743 Â
1,048 Â
278 Â
511 Â
3,580 Â
Depreciation and impairment Â
beginning of year Â
665 Â
577 Â
192 Â
-
1,434 Â
Currency adjustments Â
7
9
1
-
17 Â
Depreciation for the year Â
91 Â
87 Â
20 Â
-
198 Â
Disposals during the year Â
(11) Â
(66) Â
(11) Â
-
(88) Â
Impairment during the year, Â
cf. note 2.3 Â
-
1
-
-
1
Depreciation and Â
impairment year end Â
752 Â
608 Â
202 Â
-
1,562 Â
Carrying amount year end Â
991 Â
440 Â
76 Â
511 Â
2,018 Â
of which financing costs Â
-
Value of land and buildings Â
subject to mortgages Â
176 Â
* Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended Â
and the estimated lease terms are 15 years. See also note 3.3. Â Property, Â
Other Â
plant and Â
Land and Â
Plant and fixtures and equipment Â
buildings* Â
machinery equipment in progress Â
Total Â
Amounts in DKKm Â
2021 Â
Cost beginning of year Â
1,493 Â
947 Â
256 Â
269 Â
2,965 Â
Currency adjustments Â
41 Â
21 Â
2
7
71 Â
Additions Â
46 Â
18 Â
12 Â
176 Â
252 Â
Disposals Â
(1) Â
(25) Â
(13) Â
(1) Â
(40) Â
Transfer to/from other groups Â
44 Â
67 Â
15 Â
(126) Â
-
Cost year end Â
1,623 Â
1,028 Â
272 Â
325 Â
3,248 Â
Depreciation and impairment Â
beginning of year Â
572 Â
505 Â
184 Â
-
1,261 Â
Currency adjustments Â
9
12 Â
2
-
23 Â
Depreciation for the year Â
85 Â
77 Â
19 Â
-
181 Â
Disposals during the year Â
(1) Â
(24) Â
(13) Â
(1) Â
(39) Â
Impairment during the year, Â
cf. note 2.3 Â
-
7
-
1
8
Depreciation and Â
impairment year end Â
665 Â
577 Â
192 Â
-
1,434 Â
Carrying amount year end Â
958 Â
451 Â
80 Â
325 Â
1,814 Â
of which financing costs Â
-
Value of land and buildings Â
subject to mortgages Â
186 Â
* Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended Â
and the estimated lease terms are 15 years. See also note 3.3. Â Land and buildings, plant and machinery, and other fixtures and equipment are measured at cost less Â
accumulated depreciation and impairment. Land is not depreciated. Â
Cost comprises the purchase price and any costs directly attributable to the acquisition and any Â
preparation costs incurred until the date when the asset is available for use. Â
The depreciation base is cost less the estimated residual value at the end of the useful life. The residual Â
value is determined as the amount the company expects to obtain for the asset less costs of disposal. Â
The cost of an asset is divided into smaller components that are depreciated separately if such Â
components have different useful lives. Â
Tangible assets are depreciated on a straight-line basis over their estimated useful lives as follows: Â
Buildings Â
25-50 years Â
Plant and machinery Â
5-10 years Â
Other fixtures and equipment Â
5-10 years Â
Depreciation methods, useful lives and residual values are reassessed once a year. Â Impairment Â
The carrying amounts of tangible assets are reviewed at the balance sheet date to determine whether Â
there are any indications of impairment. If such indications are found, the recoverable amount of the Â
asset is calculated to determine any need for an impairment write-down and, if so, the amount of the Â
write-down. Â If the asset does not generate any cash flows independently of other assets, the recoverable amount is Â
calculated for the smallest cash-generating unit that includes the asset. Â
The recoverable amount is calculated as the higher of the fair value less costs to sell and the value in use Â
of the asset or the cash-generating unit, respectively. In determining the value in use, the estimated Â
future cash flows are discounted to their present value, using a discount rate reflecting current market Â
assessments of the time value of money as well as risks that are specific to the asset or the cash- Â
generating unit and which have not been taken into account in the estimated future cash flows. Â
If the recoverable amount of the asset or the cash-generating unit is lower than the carrying amount, Â
the carrying amount is written down to the recoverable amount. For the cash-generating unit, the write- Â
down is allocated in such a way that goodwill amounts are written down first, and any remaining need Â
for write-down is allocated to other assets in the unit, although no individual assets are written down to Â
a value lower than their fair value less costs to sell. Â
Impairment write-downs are recognised in the income statement. If write-downs are subsequently Â
reversed as a result of changes in the assumptions on which the calculation of the recoverable amount Â
is based, the carrying amount of the asset or the cash-generating unit is increased to the adjusted Â
recoverable amount, not, however, exceeding the carrying amount that the asset or cash-generating Â
unit would have had, had the write-down not been made. Â 3.3 Leases Â
Specification of right-of-use assets: Â
Other Â
Land and fixtures and Â
buildings* equipment Â
Total Â
Amounts in DKKm Â
2022 Â
Cost beginning of year Â
335 Â
2
337 Â
Currency adjustments Â
5
-
5
Additions Â
78 Â
1
79 Â
Lease contract modifications** Â
(17) Â
-
(17) Â
Disposals Â
(6) Â
-
(6) Â
Cost year end Â
395 Â
3
398 Â
Depreciation beginning of year Â
109 Â
1
110 Â
Currency adjustments Â
1
-
1
Depreciation for the year Â
43 Â
-
43 Â
Disposals Â
(6) Â
-
(6) Â
Depreciation year end Â
147 Â
1
148 Â
Carrying amount year end Â
248 Â
2
250 Â
* Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended Â
and the estimated lease terms are 15 years. Â
** Lease contract modifications include changes to existing lease contracts different from lease extensions or new lease Â
contracts that are included as additions. Â Specification of right-of-use assets: Â
Other Â
Land and fixtures and Â
buildings* equipment Â
Total Â
Amounts in DKKm Â
2021 Â
Cost beginning of year Â
295 Â
2
297 Â
Currency adjustments Â
6
-
6
Additions Â
34 Â
-
34 Â
Cost year end Â
335 Â
2
337 Â
Depreciation beginning of year Â
69 Â
1
70 Â
Currency adjustments Â
2
-
2
Depreciation for the year Â
38 Â
-
38 Â
Depreciation year end Â
109 Â
1
110 Â
Carrying amount year end Â
226 Â
1
227 Â
* Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended Â
and the estimated lease terms are 15 years. Â Leases in the income statement Â
2022 Â
2021 Â
Amounts in DKKm Â
Expenses from short-term leases Â
2
1
Expenses from low-value assets (including cars) Â
18 Â
19 Â
Depreciation of right-of-use assets Â
43 Â
38 Â
Interest expenses on lease liabilities Â
6
7
Total Â
69 Â
65 Â
Cash outflow related to lease agreements was DKK 45 million (2021: DKK 39 million). Â
Lease liabilities are disclosed in note 4.2 Financial risks and financial instruments. Â Lease liabilities Â
Lease assets are recognised at the commencement date of the contract if it is or contains a lease. Â
Lease assets are recognised at cost less accumulated depreciation and impairment. Cost is defined as Â
the lease liability adjusted for any lease payments made at or before the commencement date. Lease Â
assets are depreciated on a straight-line basis over the lease term. Â
On initial recognition, lease liabilities are measured as the present value of future payments. The lease Â
payments contain fixed payments less any lease incentives receivable and variable lease payments Â
that depend on an index or a rate. Â
On subsequent recognition, lease liabilities are measured at amortised cost. The difference between Â
the present value and the nominal value of lease payments is recognised in the income statement over Â
the term of the lease as a finance charge. Â
If the interest rate cannot be determined in the agreement, the lease payments are discounted using Â
the ALK Groupâs incremental borrowing rate adjusted for the functional currency and length of the lease Â
term. The lease liability is remeasured if or when the future payment or lease term changes. Â
Short term lease expenses and low value assets are not recognised as part of lease liabilities. They are Â
recognised in the income statement when incurred as an operating expense. Â 3.4 Inventories Â
2022 Â
2021 Â
Amounts in DKKm Â
Raw materials Â
265 Â
245 Â
Work in progress Â
507 Â
432 Â
Manufactured goods and goods for resale Â
525 Â
527 Â
Total Â
1,297 Â
1,204 Â
Amount of write-down of inventories during the year Â
50 Â
40 Â
Amount of reversal of write-down of inventories during the year* Â
19 Â
15 Â
Total cost of materials included in cost of sales Â
490 Â
396 Â
Net carrying amount of inventory not expected to be sold in following year Â
333 Â
209 Â
* Reversal of provision for slow moving items, sold in 2022.  Inventories are measured at cost determined under the FIFO method or net realisable value where this Â
is lower. Â
Cost comprises raw materials, goods for resale, and direct payroll costs as well as fixed and Â
variable production overheads. Variable production overheads comprise indirect materials and Â
payroll costs and are allocated based on predetermined costs of the goods actually produced. Fixed Â
production overheads comprise maintenance of and depreciation on the machines, factory buildings Â
and equipment used in the manufacturing process as well as the cost of factory management and Â
administration. Fixed production overheads are allocated based on the normal capacity of the Â
production plant. Â The net realisable value of inventories is calculated as the expected selling price less completion costs Â
and costs incurred in making the sale. Â
A minor part of ALKâs raw materials inventory contains biological assets from agricultural activities. Due Â
to missing market on which a fair value can be established these products are not valuated. Â The valuation of inventories includes Managementâs assessment of the saleability of the finished goods, Â
and the quality of raw materials to be used in the production process. If the expected sales price less Â
any completion costs and costs to execute sales (net realisable value) of inventories is lower than the Â
carrying amount, the inventories are written down to net realisable value. When assessing salability Â
and net realisable value, Management uses estimates for future sales and related costs. Â
End of 2022, the write-down of inventories to net realisable value amounted to DKK 85 million (2021: DKK Â
97 million). Â
Further, work in progress and manufactured goods and goods for resale are measured at cost including Â
indirect production costs. The indirect production costs are measured using a standard cost method. Â
This is reviewed regularly to ensure reliable measurement of employee costs, capacity utilisation, cost Â
drivers and other relevant factors. When including the indirect productions costs for capitalisation, Â
Management makes estimates about cost of production, standard cost variances, cost drivers and Â
capacity utilisation. Changes in these parameters may have a significant impact on the gross margin Â
and the overall valuation of work in progress and manufactured goods and goods for resale. Â
End of 2022, the indirect production costs capitalised under inventories amounted to DKK 442 million Â
(2021: DKK 406 million).  3.5 Trade receivables Â
Days past due Â
Amounts in DKKm Â
Not due <180 days Â
180-360 >360Â days Â
Total Â
2022 Â
Average expected credit loss rate Â
1% Â
2% Â
8% Â
50% Â
Trade receivables (gross) Â
671 Â
86 Â
13 Â
2
772 Â
Loss allowance Â
4
2
1
1
8
Trade receivables (net) Â
667 Â
84 Â
12 Â
1
764 Â
Loss allowance: Â
Balance beginning of year Â
11 Â
Change in allowances during the year Â
2
Realised losses during the year Â
(5) Â
Loss allowance, year end Â
8
2021 Â
Average expected credit loss rate Â
1% Â
6% Â
20% Â
50% Â
Trade receivables (gross) Â
519 Â
68 Â
5
2
594 Â
Loss allowance Â
5
4
1
1
11 Â
Trade receivables (net) Â
514 Â
64 Â
4
1
583 Â
Loss allowance: Â
Balance beginning of year Â
15 Â
Change in allowances during the year Â
(1) Â
Realised losses during the year Â
(3) Â
Loss allowance, year end Â
11 Â On initial recognition, receivables are measured at fair value, subsequently at amortised cost. Â
Expected credit losses are measured based on historical data adjusted by forward-looking information. Â
Forward-looking information includes assessment of the probability of default as well as consideration Â
of various external sources of actual and economic information that is reasonable and supportable Â
without undue cost or effort. Â
ALK recognises expected credit losses that result from default events possible within the whole asset Â
life. Risk related to trade receivables is managed in ALK locally by entities, based on an individual Â
assessment. Loss allowance for doubtful trade receivables is also based on an individual assessment Â
of the receivables. ALK has not implemented a global provision matrix due to different characteristics Â
related to receivables across the ALK Group. Loss allowance are calculated based on variables, e.g. Â
probability-weighted amount (based on historical realised losses), the time value of money, additional Â
supportable information, including an individual assessment of each customer/customer group. Â
An impairment loss or reversal of prior impairment loss is recognised in the income statement. Â
Receivables are written down when information indicates severe financial difficulties and that there is Â
no reasonable expectation of recovery. Financial assets written off may still be subject to enforcement Â
activities. Any recoveries made are recognised in the income statement. Â 3.6 Prepayments Â
Amounts in DKKm Â
2022 Â
2021 Â
Clinical trials, cf. note 2.2 Â
130 Â
240 Â
Royalties Â
39 Â
-
Other Â
70 Â
74 Â
Total Â
239 Â
314 Â Prepayments are recognised as an asset and comprise incurred costs relating to subsequent financial Â
years. Prepayments are measured at cost.  3.7 Pensions and similar liabilities Â
The ALK Group has entered into defined contribution plans as well as defined benefit plans. Â
In defined contribution plans, the ALK Group is obliged to pay a certain contribution to a pension fund or Â
the like but bears no risks regarding the future development in interest, inflation, mortality, disability Â
rates etc. regarding the amount to be paid to the employee. Â
The ALK Group sponsors defined benefit plans for qualifying employees of its subsidiaries in Germany, Â
France and Switzerland. The defined benefit plans guarantee employees a certain level of pension Â
benefits for life. The pension is based on seniority and salary at the time of retirement. The ALK Group Â
bears the risks regarding the future development in interest, inflation, mortality, disability rates etc. Â
regarding the amount to be paid to the employee. Â
Amounts in DKKm Â
2022 Â
2021 Â
Costs related to defined contribution plans Â
107 Â
91 Â
Costs related to defined benefit plans Â
24 Â
24 Â
Total Â
131 Â
115 Â
Present value of funded pension obligations Â
24 Â
25 Â
Fair value of plan assets (100% insurance contract) Â
(21) Â
(17) Â
Funded pension obligations, net Â
3
8
Present value of unfunded pension obligations Â
161 Â
246 Â
Pension obligations Â
164 Â
254 Â
Anniversary liabilities Â
10 Â
11 Â
Other liabilities* Â
62 Â
59 Â
Pension obligations and similar liabilities, year end Â
236 Â
324 Â
* Other liabilities include liability related to the transition period for the Danish Holiday Act of DKK 60 million (2021: DKK 59 million). Â
Plan assets consist of assets placed in pension companies. Assets are placed in investments classified Â
as other assets than shares, bonds and property by the pension companies, and are not measured at Â
quoted prices. Â
The weighted average duration of the pension obligations is 16.58 years (2021: 19.24 years). Â 2022 Â
2021 Â
Amounts in DKKm Â
The principal assumptions used for the actuarial valuations Â
Discount rate range of 2% - 3.9% (weighted average rate) Â
3.8% Â
1.0% Â
Expected future rate of salary increase range of 1% - 2.5% Â
(weighted average rate) Â
2.4% Â
2.4% Â
Assumed life expectations on retirement age for current pensioners Â
(years based on weighted average)*: Â
Males Â
21.1 Â
21.1 Â
Females Â
24.3 Â
24.4 Â
Assumed life expectations on retirement age for current employees Â
(future pensioners) (years based on weighted average)*: Â
Males Â
22.4 Â
22.4 Â
Females Â
26.3 Â
26.3 Â
Sensitivity analysis: Â
Significant actuarial assumptions for determining the Â
defined benefit obligation Â
Discount rate, effect in case of increase in range of 0.25% - 1%** Â
(21) Â
(42) Â
Discount rate, effect in case of decrease in range of 0.25% - 1%** Â
27 Â
50 Â
Salary, effect in case of 0.25% - 0.5% increase** Â
2
4
Salary, effect in case of 0.25% - 0.5% decrease** Â
(2) Â
(4) Â
Life expectancy, effect in case of increase by 1 year* Â
6
11 Â
Life expectancy, effect in case of decrease by 1 year* Â
(6) Â
(11) Â
Movements in the present value of the funded defined benefit obligation Â
in the current year Â
Opening funded defined benefit obligation Â
25 Â
20 Â
Current service costs Â
2
2
Actuarial (gains)/losses arising from changes in financial assumptions Â
(5) Â
-
Benefits paid Â
1
2
Currency translation adjustment Â
1
1
Closing funded defined benefit obligation Â
24 Â
25 Â
*
Based on national statistics for mortality. Â
** Based on actuarial reports with different rates.  2022 Â
2021 Â
Amounts in DKKm Â
Movements in the fair value of the plan assets in the current year Â
Opening fair value of plan assets Â
17 Â
13 Â
Contribution from plan participants Â
2
2
Benefits paid Â
1
2
Currency translation adjustment Â
1
-
Closing fair value of plan assets (fully invested in insurance contracts) Â
21 Â
17 Â
Movements in present value of unfunded pension obligations Â
in the current year Â
Opening present value of unfunded pension obligations Â
246 Â
268 Â
Other adjustments Â
-
(12) Â
Current service costs Â
7
7
Interest costs Â
3
2
Actuarial (gains)/losses from changes in financial assumptions Â
(87) Â
(15) Â
Actuarial (gains)/losses arising from experience adjustments Â
(4) Â
(1) Â
Benefits paid Â
(4) Â
(3) Â
Closing present value of unfunded pension obligations Â
161 Â
246 Â
Amount recognised as staff expenses in the income statement Â
Current service costs Â
9
10 Â
Net interest expense Â
3
2
Total Â
12 Â
12 Â
Amount recognised in comprehensive income in respect Â
of defined benefit plans Â
Actuarial (gains)/losses Â
(96) Â
(16) Â
Total Â
(96) Â
(16) Â The expected contribution for 2023 for the defined benefit plans is DKK 13 million (2022: DKK 12 million). Â
The most recent actuarial valuations of the defined benefit liability were carried out by external Â
independent actuary agents at 31 December 2022. Â The ALK Group has entered into pension agreements and similar agreements with some of the ALK Â
Groupâs employees. Â
In respect of defined contribution plans, the ALK Group pays in fixed contributions to independent pension Â
funds etc. The contributions are recognised in the income statement during the period in which the Â
employee renders the related service. Payments due are recognised as a liability in the balance sheet. Â
In respect of defined benefit plans, the ALK Group is required to pay an agreed benefit in connection with Â
the retirement of the employees covered by the plan, e.g. in the form of a fixed amount or a percentage of Â
the salary at retirement. Â
For defined benefit plans, an annual actuarial assessment is made of the net present value of future Â
benefits to which the employees have earned the right through their past service for the ALK Group and Â
which will have to be paid under the plan. The Projected Unit Credit Method is applied to determine net Â
present value. Â
The net present value is calculated based on assumptions of the future development of salary, interest, Â
inflation, mortality and disability rates. Â
The net present value of pension liabilities is recognised in the balance sheet, after deduction of the Â
fair value of any assets attached to the plan, as either plan assets or pension liabilities, depending on Â
whether the net amount is an asset or a liability, as described below. Â
If the assumptions made with respect to discount factor, inflation, mortality and disability are changed, Â
or if there is a discrepancy between the expected and realised return on plan assets, actuarial gains Â
or losses occur. These gains and losses concerning previous financial years are recognised in other Â
comprehensive income. Â 3.8 Provisions Â
Restructuring Â
Other Â
programs* Â
provisions** Â
Total Â
Amounts in DKKm Â
2022 Â
Provisions beginning of year Â
10 Â
2
12 Â
Provisions made during the year Â
-
1
1
Used during the year Â
(10) Â
-
(10) Â
Provisions, year end Â
-
3
3
Provisions are recognised as follows: Â
Current liabilities Â
-
3
3
Provisions, year end Â
-
3
3
2021 Â
Provisions beginning of year Â
-
3
3
Provisions made during the year Â
10 Â
-
10 Â
Used during the year Â
-
(1) Â
(1) Â
Provisions, year end Â
10 Â
2
12 Â
Provisions are recognised as follows: Â
Current liabilities Â
10 Â
2
12 Â
Provisions, year end Â
10 Â
2
12 Â
*
Provision used in 2022 for restructuring programs of DKK 10 million relates to restructuring of ALKâs Spanish entity Â
ALK-Abelló S.A. Â
** Other provisions include a provision for sales in Italy of DKK 3 million (2021: DKK 2 million).  Provisions are recognised when, as a consequence of a past event during the financial year or previous Â
years, the ALK Group has a legal or constructive obligation, and it is likely that settlement of the Â
obligation will require an outflow of the ALK Groupâs financial resources. Provisions are measured as the Â
best estimate of the costs required to settle the obligations at the balance sheet date. Provisions with an Â
expected term of more than a year after the balance sheet date are measured at present value.  3.9 Other payables Â
2022 Â
2021 Â
Amounts in DKKm Â
Rebates and commissions, cf. note 2.1 Â
274 Â
294 Â
Salaries, holiday payments etc. Â
270 Â
239 Â
Clinical trials, cf. note 2.2 Â
114 Â
179 Â
VAT and other taxes Â
81 Â
85 Â
Other Â
239 Â
153 Â
Total Â
978 Â
950 Â Other payables are recognised as a current liability and comprise costs due in the subsequent financial Â
year. Other payables are measured at amortised cost. Â Contingent liabilities Â
In the ordinary course of business, the ALK Group is involved in certain claims, disputes etc. In the Â
opinion of Management, settlement or continuation of pending claims and other disputes will have no Â
material impact on the ALK Groupâs financial position. Â
The ALK Group operates in a wide variety of jurisdictions, in some of which the tax law is subject to Â
varying interpretations and potentially inconsistent enforcement. As a result, there can be practical Â
uncertainties in applying tax legislation to the ALK Groupâs activities. Whilst the ALK Group considers Â
that it operates in accordance with applicable tax law, there are potential tax exposures in respect of its Â
operations, the impact of which cannot be reliably estimated, but could be material. Â
Joint taxation scheme Â
ALK-Abelló A/S is included in a joint Danish taxation scheme with the Lundbeck Foundation Â
(Lundbeckfond Invest A/S) and its Danish subsidiaries. The Danish companies are joint and several Â
liable for the joint taxation liability. The joint taxation liability covers income taxes and withholding taxes Â
on dividends, royalties and interest. The joint taxation liability is capped at an amount equal to the share Â
of the capital of the company directly or indirectly owned by the ultimate parent company. The total tax Â
obligation under the joint Danish taxation scheme is shown in the financial statements of the Lundbeck Â
Foundation (Lundbeckfond Invest A/S). Â
Change of control Â
The ALK Groupâs credit facilities and drawn loans are subject to standard change of control clauses Â
according to which the lender has the right to cancel the commitment and demand repayment of Â
outstandings. Â Commitments Â
Land and buildings provided as security vis-Ã -vis for mortgage debt amount to DKK 176 million Â
(2021: DKK 186 million) out of mortgage debt of DKK 221 million (2021: DKK 240 million). Â 2022 Â
2021 Â
Amounts in DKKm Â
Bank guarantees* Â
76 Â
2
Other guarantees Â
11 Â
6
Total Â
87 Â
8
* Bank guarantees include DKK 75 million related to ongoing tax audits (2021: DKK 0)  4.1 Share capital and earnings per share Â
2022 Â
2021 Â
Nominal Â
Nominal Â
value Â
value Â
Units Â
(DKKm) Â
Units Â
(DKKm) Â
Share capital Â
The share capital consists of: Â
A shares (nominal value of DKK 0.5) Â
18,415,200 Â
9
18,415,200 Â
9
AA shares (nominal value of DKK 0.5) Â
1,841,520 Â
1
1,841,520 Â
1
B shares (nominal value of DKK 0.5) Â
202,567,200 Â
101 Â
202,567,200 Â
101 Â
Total Â
222,823,920 Â
111 222,823,920 Â
111  In March 2022, ALK-Abelló A/S completed a share split at a ratio of 1:20, each existing share of a Â
nominal value of DKK 10 was split into 20 new shares of a nominal value of DKK 0.50 each. The company's Â
share capital remains DKK 111,411,960. As a result of the share split, comparison figures for number of Â
shares, EPS, and DEPS have been restated accordingly. Â
Each A and AA share carries 10 votes, whereas each B share carries 1 vote. AA shares no longer held by Â
individuals or legal entities other than the Lundbeck Foundation or companies which are group affiliated Â
with the Lundbeck Foundation, cf. the definition of groups in section 6 of the Danish Companies Act, Â
or in the event that a company which holds AA shares is no longer group affiliated with the Lundbeck Â
Foundation, such AA shares shall be transferred to the B share capital. Â
According to a resolution passed by the parent company at the annual general meeting, the parent Â
company is allowed to purchase treasury shares, up to 10% of the share capital. The parent company Â
has purchased treasury shares in connection with the issuance of share-based incentive plans. All Â
shares are paid in. Â 2022 Â
2021 Â
Treasury shares Â
Treasury shares beginning of year (B-shares), units Â
2,970,560 Â
4, 2 57,46 0 Â
Sale of treasury shares, units Â
(1,145, 58 5) Â
(1,286,900) Â
Treasury shares year end (B-shares), units Â
1,824,975 Â
2,970,560 Â
Proportion of share capital year end Â
0.8% Â
1.3% Â
Nominal value year end Â
0.9 Â
1.5 Â
Market value year end Â
175 Â
509 Â
Earnings per share Â
The calculation of earnings per share is based on the following: Â
Net profit (DKKm) Â
335 Â
219 Â
Number in units: Â
Average number of issued shares Â
222,823,920 Â
222,823,920 Â
Average number of treasury shares Â
(2,321,447) Â
(3,430,180) Â
Average number of shares used for calculation Â
of earnings per share Â
220,502,473 Â
219,393,740 Â
Average dilutive effect of outstanding share options Â
870,206 Â
1,596,200 Â
Average number of shares used for calculation Â
of diluted earnings per share Â
221,372,679 Â
220,989,940 Â
Earnings per share (EPS) (DKK) Â
1.52 Â
1.00 Â
Earnings per share, diluted (DEPS) (DKK) Â
1.51 Â
0.99 Â Acquisition and sales sums arising on the purchase and sale of treasury shares and dividends on Â
treasury shares are recognised directly in retained earnings under equity. Â Financial risk management policy Â
As a result of operations, investments and financing, the ALK Group is exposed to exchange and interest Â
rate changes. ALK-Abelló A/S manages the ALK Groupâs financial risks centrally and coordinates the Â
ALK Groupâs cash management, including the raising of capital and investment of excess cash. The ALK Â
Group complies with a policy, approved by the Board of Directors, to maintain a low risk profile, ensuring Â
that the ALK Group is only exposed to foreign exchange rate risk, liquidity risk, interest rate risk, and Â
credit risk in connection with its commercial activities. Â
Capital structure Â
The ALK Group manages its capital to ensure that all entities will be able to continue as going concern Â
while maximising the return to stakeholders through the optimisation of the debt and equity balances. Â
The capital structure of the ALK Group consists of net debt and equity. The dividend policy of the ALK Â
Group is to distribute maximum possible dividend to ALK-Abelló A/S. Â
The ALK Groupâs Risk Committee reviews the capital structure annually. As a part of this review, the Â
committee considers the cost of capital and the risks associated with each class of capital. Â Foreign exchange rate risk Â
Foreign exchange rate risk arises due to imbalances between revenue and expenses in each individual Â
currency. Foreign exchange rate exposure relating to future transactions and assets and liabilities is Â
evaluated and hedged through matching of payments received and paid in the same currency. This Â
serves to limit the impact on the financial results of any exchange rate fluctuations. The exchange Â
rate exposure relating to net investments in foreign subsidiaries is not hedged by forward exchange Â
contracts. In case it is evaluated to be relevant, the ALK Group hedges significant exchange rate Â
exposures regarding future sales and purchase of goods in the coming six months in accordance with Â
the ALK Groupâs policy. Â
The general objective of the ALK Groupâs foreign exchange risk management is to limit and delay Â
any adverse impact of exchange rate fluctuations on earnings and cash flows and thus increase Â
the predictability of the financial results. The most significant financial risk relates to exchange  rate fluctuations. The greatest exposure is to USD and in 2022, 17% (2021: 15%) of the revenue was Â
denominated in USD. The sales are not deemed to be exposed to EUR due to Denmarkâs participation in Â
the European Exchange Rate Mechanism. Â
The ALK Group is exposed to exchange rate risks when intercompany balances and net assets of foreign Â
subsidiaries are translated into DKK. In accordance with the ALK Groupâs accounting policies, such Â
currency translation adjustments are recognised in the income statement and in other comprehensive Â
income, respectively. Â
No exchange rate hedge contracts were open at 31 December 2022 or 31 December 2021. Â Sensitivity to a 10% increase in USD exchange rate Â
The table below shows the estimated effect of a 10% increase in the USD exchange rate on revenue, Â
EBIT and equity levels, respectively. A decrease in the exchange rates will have a corresponding Â
adverse effect. In the sensitivity analysis, data for revenue and EBIT are based on current short-term Â
expectations and data for equity are based on actual equity at 31 December 2022. Â
Revenue Â
EBIT Â
Equity Â
Amounts in DKKm Â
31 December 2022 Â
USD Â
approx. +80 Â
approx. +5 Â
approx. +15 Â
31 December 2021 Â
USD Â
approx. +65 Â
approx. -10 Â
approx. 0 Â Net positions Â
Amount Â
Net Â
Cash Receivables Â
Liabilities Â
hedged Â
position Â
Amounts in DKKm Â
31 December 2022 Â
DKK Â
(12) Â
89 Â
(909) Â
-
(832) Â
USD Â
111 Â
228 Â
(328) Â
-
11 Â
EUR Â
48 Â
433 Â
(956) Â
-
(475) Â
GBP Â
2
18 Â
(21) Â
-
(1) Â
SEK Â
2
34 Â
(16) Â
-
20 Â
Other Â
70 Â
180 Â
(90) Â
-
160 Â
Total Â
221 Â
982 Â
(2,320) Â
-
(1,117) Â
31 December 2021 Â
DKK Â
(9) Â
69 Â
(957) Â
-
(897) Â
USD Â
67 Â
123 Â
(176) Â
-
14 Â
EUR Â
75 Â
342 Â
(1,093) Â
-
(676) Â
GBP Â
4
12 Â
(21) Â
-
(5) Â
SEK Â
3
39 Â
(19) Â
-
23 Â
Other Â
54 Â
135 Â
(84) Â
-
105 Â
Total Â
194 Â
720 Â
(2,350) Â
-
(1,436) Â Liquidity risk Â
In connection with the ALK Groupâs ongoing financing of operations, including refinancing, efforts Â
are made to ensure adequate and flexible liquidity. This is guaranteed by placing free funds in credit- Â
worthy, liquid, interest bearing instruments of relatively short durations in accordance with the ALK Â
Groupâs policy. Â
The liquidity risk is considered to be minimal due to the ALK Groupâs current capital structure. Â Interest rate risk Â
The ALK Group does not hedge its interest rate exposure, as this is not considered to be financially viable. Â
Concerning the ALK Groupâs financial assets and financial liabilities, the earlier of the contractual Â
revaluation and redemption date is applied. Effective interest rates are stated on the basis of the Â
current level of interest rates on the balance sheet date. Â Interest rate exposure Â
Carrying Â
Fixed/ Â
Effective Â
amount Â
Currency Expiry date Â
floating interest rate Â
Amounts in DKKm Â
31 December 2022 Â
Cash Â
221 Â
Various Â
Floating Â
(0.6)-4.75 Â
Interestbearing assets Â
221 Â
Mortgage debt Â
221 Â
DKK Â
2035 Â
Floating Â
0.2 Â
Lease liabilities Â
267 Â
Various Â
2023-2036 Â
Fixed Â
2.0 Â
Bank loans Â
208 Â
Various Â
2023 Â
Fixed Â
2.8-3.3 Â
Interestbearing liabilities Â
696 Â
31 December 2021 Â
Cash Â
194 Â
Various Â
Floating (1.09)-(0.10) Â
Interestbearing assets Â
194 Â
Mortgage debt Â
240 Â
DKK Â
2035 Â
Floating Â
0.2 Â
Lease liabilities Â
244 Â
Various Â
2022-2033 Â
Fixed Â
2.0 Â
Bank loans Â
226 Â
EUR Â
2022 Â
Fixed Â
0.4-0.5 Â
Interestbearing liabilities Â
710 Â An increase in the interest rate of 1 percentage point on mortgage debt and bank loans would decrease Â
net profit and equity by approximately DKK 4 million (2021: decrease of DKK 4 million). An increase in Â
the interest of 1 percentage point on cash would increase net profit and equity by approximately DKK 2 Â
million (2021: increase of DKK 2 million). Â Credit risk Â
The ALK Groupâs primary credit exposure is related to trade receivables and cash. The ALK Group has Â
no major exposure relating to one single customer or business partner. According to the ALK Groupâs Â
policy for assuming credit exposure, all customers and business partners are credit rated regularly. Â
Trade receivables are monitored at the local level and are distributed across a number of markets and Â
customers. Therefore, the credit risk is considered to be low. For more information, see note 3.5. Â Embedded derivative financial instruments Â
The ALK Group has made a systematic review of contracts that might contain terms that would make Â
the contract or parts thereof a derivative financial instrument. The review did not lead to recognition of Â
derivative financial instruments relating to the contracts. Â Categories of financial instruments Â
2022 Â
2021 Â
Amounts in DKKm Â
Financial assets Â
Financial assets measured at Â
amortised cost Â
Impairment method Â
Receivables from group companies Â
12m ECL Â
18 Â
12 Â
Prepayments Â
12m ECL Â
94 Â
29 Â
Trade receivables Â
Lifetime ECL (simplified approach) Â
764 Â
583 Â
Other receivables Â
12m ECL Â
82 Â
82 Â
Cash Â
221 Â
194 Â
Total Â
1,179 Â
900 Â
Financial liabilities Â
Financial liabilities measured at Â
amortised cost Â
Mortgage debt Â
221 Â
240 Â
Bank loans Â
208 Â
226 Â
Lease liabilities Â
267 Â
244 Â
Trade payables Â
131 Â
115 Â
Other payables Â
978 Â
950 Â
Total Â
1,805 Â
1,775 Â Measurement and fair value hierarchy Â
Revaluation/payment date Â
Fair Â
Within Â
From Â
After Â
Amounts in DKKm Â
value Â
1 year Â
1-5 years Â
5 years Â
31 December 2022 Â
Mortgage debt Â
225 Â
18 Â
74 Â
133 Â
Bank loans Â
208 Â
208 Â
-
-
Total Â
433 Â
226 Â
74 Â
133 Â
31 December 2021 Â
Mortgage debt Â
243 Â
18 Â
73 Â
152 Â
Bank loans Â
226 Â
226 Â
-
-
Total Â
469 Â
244 Â
73 Â
152 Â
All financial assets and liabilities are measured at cost or amortised cost. The carrying amounts for Â
these approximate fair value. Â
Fair value for mortgage debt is measured by level 1 input (quoted prices in active markets) from the Â
fair value hierarchy and fair value for bank loans is measured by level 2 input (inputs other than quoted Â
markets that are observable) from the fair value hierarchy. Â
No financial derivatives were used in 2022 or 2021. Â
Financial resources Â
The ALK Group has a DKK 1,500 million credit facility which runs until the end of 2025. By the end of 2022, Â
DKK 208 million was drawn. Â Financial assets Â
On initial recognition, investments and other financial assets are measured at cost, corresponding to Â
fair value. They are subsequently measured at fair value either through the income statement or through Â
comprehensive income. Â Financial liabilities Â
Other financial liabilities, including bank loans, lease liabilities, trade payables, and other payables, Â
are on initial recognition measured at fair value. The liabilities are subsequently measured at amortised Â
cost. Â Debt Â
Trade payables, other payables, including sales discounts and rebates as well as debt to public Â
authorities etc., are measured at amortised cost. Â Mortgage debt Â
Mortgage debt is recognised on the raising of a loan at cost, equalling fair value of the proceeds Â
received, and net of transaction costs incurred. Subsequently, mortgage debt is measured at amortised Â
cost. Â The ALK Group has established long-term equity-based incentive plans linked to the creation of Â
shareholder value and the fulfilment of strategic goals. The plans are established for the members of Â
Board of Management and other key employees, reward long-term value creation and align to interests Â
of the shareholders. Â
The incentive plans consist of share options and performance share units that are considered Â
sufficiently covered by treasury shares. Â
Ordinary incentive plans Â
The share options entitle the holder to acquire one existing B share of DKK 0.5 nominal value in the Â
company per share option and the performance share units entitle the holder to receive one existing B Â
share per performance share unit free of charge. Â
The vesting period for both share options and performance share units is three years after grant. Â
Vesting is conditional upon certain targets being met and upon the participant not having resigned. Â
Target achievement is met upon fulfilment of strategic key performance indicators. In case performance Â
is below the threshold there will be no units vesting, and if above target, a multiplier is applied that can Â
increase the vesting by up to 100%. Â
The exercise of share options is possible in the trading windows following the release of annual and Â
interim reports conditional upon the share option holder not having resigned at the time of exercise. Â
For performance share units, the final transfer of ownership takes place at vesting three years after the Â
grant. Â
Special incentive plan 2018 Â
ALKâs special incentive plan was a one-time scheme designed to implement ALKâs growth strategy and Â
consisted of both share options and performance share units with a vesting period of three years. Â
The special incentive plan was adopted at the annual general meeting in March 2018 and vested in Â
March 2021. The grant value of the plan did not exceed 50% of the Executiveâs 2018 annual base salary  on the grant date. The plan was conditional upon strategic key performance indicators being attained. Â
Based on the financial results for 2020, the KPI achievements exceeded their targets increasing the Â
granted number of performance shares and share options by 100%. However, the overall payout of the Â
plan on the vesting date for the performance shares and on the exercise date for the share options can Â
never exceed a total value of 300% of the recipientâs 2018 annual base salary. Â
Share split Â
In March 2022, ALK-Abelló A/S completed a share split at a ratio of 1:20, each existing share of a Â
nominal value of DKK 10 was split into 20 new shares of a nominal value of DKK 0.50 each. As a result Â
of the share split, comparison figures for number of share options and performance share units, Â
share prices, exercise prices, and calculated fair value of granted share options have been adjusted Â
accordingly. Â
Expensed in the income statement: Â
2022 Â
2021 Â
Amounts in DKKm Â
Cost for the year regarding share-based payments is recognised as follows: Â
Cost of sales Â
4
5
Research and development expenses Â
7
7
Sales and marketing expenses Â
8
11 Â
Administrative expenses Â
8
12 Â
Financial expenses Â
-
1
Total Â
27 Â
36 Â
In 2022, the total cost of share-based payments did not include a financial expense due to the exercise Â
and cash settlement of share options (2021: DKK 1 million). The total cost included DKK 3 million related Â
to adjustment in the share options and performance share units expected to vest (2021: DKK 11 million). Â Specification of outstanding share options and performance share units: Â
Share options Â
Performance share units Â
Board of Â
Other key Â
Weighted average Â
Board of Â
Other key Â
Management Â
employees Â
Total Â
exercise price Â
Management Â
employees Â
Total Â
units Â
units Â
units Â
DKK Â
units Â
units Â
units Â
2022 Â
Outstanding at 1 January Â
1,285,800 Â
768,18 0 Â
2,053,980 Â
59 Â
130,220 Â
518,180 Â
648,400 Â
Additions Â
261,420 Â
2 27,4 20 Â
488,840 Â
108 Â
58,860 Â
244,980 Â
303,840 Â
Exercised/settled Â
(851,200) Â
(356,860) Â
(1,208,060) Â
48 Â
(92,720) Â
(328,540) Â
(421,260) Â
Cancellations Â
(105,900) Â
-
(105,900) Â
90 Â
(17, 3 4 0) Â
(10,700) Â
(28,040) Â
Outstanding at 31 December Â
590,120 Â
638,740 Â
1,228,860 Â
82 Â
79,020 Â
423,920 Â
502,940 Â
Total number of vested share options Â
5 07,18 0 Â
Average remaining life at year end (years) Â
2.0 Â
Exercise prices at year end (DKK) Â
41-141 Â
2021 Â
Outstanding at 1 January Â
1,795,160 Â
1,186,760 Â
2,981,920 Â
49 Â
268,880 Â
708,520 Â
97 7,4 0 0 Â
Additions Â
596,220 Â
509,880 Â
1,106,10 0 Â
56 Â
125,000 Â
215,980 Â
340,980 Â
Exercised/settled Â
(1,105, 58 0) Â
(926,460) Â
(2,032,040) Â
42 Â
(263,660) Â
(406,320) Â
(669,980) Â
Expired Â
-
(2,000) Â
(2,000) Â
40 Â
-
-
-
Outstanding at 31 December Â
1,285,800 Â
768,180 Â
2,053,980 Â
59 Â
130,220 Â
518,180 Â
648,400 Â
Total number of vested share options Â
984,940 Â
Average remaining life at year end (years) Â
2.1 Â
Exercise prices at year end (DKK) Â
40 -116 Â
The Board of Directors decided for four trading windows in 2022 to settle share options by shares and a total of 1,208,060 share options were exercised. Â
The Board of Directors decided for one trading window in 2021 to settle share options by cash and a total of 1,339,720 share options were exercised and total cash payments amounted to DKK 62 million. For three Â
trading windows the Board of Directors decided to settle share options by shares and a total of 692,320 share options were exercised. Â Outstanding share options and performance share units have the following characteristics: Â
Share options Â
Performance share units Â
Average Â
exercise Â
Exercise Â
price Â
Vested periode Â
Vested Â
Plan Â
Units Â
DKK Â
as per Â
(years) Â
Units Â
as per Â
2016 Plan Â
14,000 Â
56 Â
1 Mar 2019 Â
4
2018 Plan Â
22,660 Â
40 Â
1 Mar 2021 Â
2
2018 Plan â special plan* Â
238,920 Â
40 Â
1 Mar 2021 Â
2
2019 Plan Â
231,600 Â
57 Â
1 Mar 2022 Â
2
2020 Plan Â
340,520 Â
73 Â
1 Mar 2023 Â
2
213,140 Â
1 Mar 2023 Â
2021 Plan Â
200,500 Â
122 Â
1 Mar 2024 Â
2
150,120 Â
1 Mar 2024 Â
2022 Plan Â
180,660 Â
148 Â
1 Mar 2025 Â
2
139,680 Â
1 Mar 2025 Â
Outstanding at Â
31 December Â
1,228,860 Â
502,940 Â
* The payout upon exercise of the outstanding options cannot exceed DKK 5 million according to the conditions of the plan.  Fair value of share options and performance share units granted: Â
Share options Â
Fair value at grant date is measured in accordance with the Black & Scholes model for valuation of share Â
options, using the following assumptions: Â
2022 Â
2021 Â
Plan Â
Plan Â
Average share price (DKK) Â
141 Â
116 Â
Expected exercise price (DKK) Â
152 Â
125 Â
Expected volatility rate, based on the historical volatility Â
35% p.a. Â
36% p.a. Â
Expected option life Â
4 years Â
4 years Â
Expected dividend per share Â
-
-
Risk-free interest rate Â
0.14% p.a. -0.49% p.a. Â
Calculated fair value of granted share options (DKK) Â
33 29 Â
Performance share units Â
Performance share units have been granted at DKK 141 per share (2021: DKK 116 per share). Â Share-based incentive plans (equity-settled share-based payments), which comprise share options Â
and performance share units, are measured at the grant date at fair value and recognised in the income Â
statement under the respective functions over the vesting period and offset in equity. Â
The fair value of share options is determined using the Black & Scholes model. The exercise price is Â
equivalent to the average market price of the share for the five trading days immediately preceeding the Â
date of grant and is increased by 2.5% p.a. and reduced by dividends paid. The fair value of performance Â
share units is determined using the average share price (closing) five days after annual general meeting. Â
The ALK Group settles the equity-settled share-based incentive plans in shares. However, the share Â
option agreement entitles the ALK Group to demand cash settlement of the options. The ALK Group Â
recognises share options, in case of cash settlement, as other liabilities and adjusts to fair value as from Â
the time when the ALK Group has an obligation to settle in cash. The ALK Group recognises subsequent Â
adjustment to fair value in the income statement under financial income or financial expenses.  5.2 Cash flow Â
Adjustment for non-cash items Â
Amounts in DKKm Â
2022 Â
2021 Â
Tax on profit Â
112 Â
60 Â
Financial income and expenses Â
23 Â
13 Â
Share-based payments Â
27 Â
36 Â
Depreciation, amortisation and impairment Â
238 Â
242 Â
Other adjustments* Â
6
49 Â
Total Â
406 Â
400 Â
* In 2021, other adjustments included non-cash transactions related to the divestment of ALKâs part-share of a formulation Â
production line for tablets to production partner Catalent of DKK 33 million. Â
Changes in working capital Â
Amounts in DKKm Â
2022 Â
2021 Â
Change in inventories Â
(74) Â
(84) Â
Change in receivables and prepayments Â
(172) Â
(5) Â
Change in short-term payables Â
11 Â
61 Â
Total Â
(235) Â
(28) Â
Reconciliation of liabilities arising from financing activities Â
Amounts in DKKm Â
2022 Â
2021 Â
Liabilities from financing activities at 1 January Â
710 Â
943 Â
Proceeds from borrowings Â
60 Â
226 Â
Repayment of borrowings Â
(94) Â
(464) Â
Lease additions, modifications and, disposals Â
56 Â
34 Â
Instalments of lease liabilities Â
(39) Â
(32) Â
Exchange rate adjustments Â
3
3
Liabilities from financing activities at 31 December Â
696 Â
710 Â Financial reserves Â
Amounts in DKKm Â
2022 Â
2021 Â
Cash Â
221 Â
194 Â
Undrawn facilities Â
1,292 Â
1,277 Â
Total Â
1,513 Â
1,471 Â
ALK has a DKK 1,500 million credit facility which runs until the end of 2025. By the end of 2022, DKK 208 Â
million was drawn. Â Cash flow Â
The cash flow statement of the ALK Group is presented using the indirect method and shows cash flows Â
from operating, investing and financing activities as well as cash at the beginning and at the end of the Â
financial year. Â
The cash effect of acquisitions and divestments is shown separately under cash flows from investing Â
activities. In the cash flow statement, cash flows concerning acquired companies are recognised from Â
the date of acquisition, while cash flows concerning divested companies are recognised until the date of Â
divestment. Â
Cash flows from operating activities are stated as net profit, adjusted for non-cash operating items and Â
changes in working capital, less the income tax paid and plus net financial items. Â
Cash flows from investing activities comprise payments in connection with acquisition and divestment of Â
companies and financial assets as well as purchase, development, improvement and sale of intangible Â
and tangible assets. Â
Cash flows from financing activities comprise changes to the parent companyâs share capital and Â
related costs as well as the raising and repayment of loans, instalments on interest-bearing debt, lease Â
liabilities, purchase of treasury shares, and settlement of share options and payment of dividends. Â Cash flows in currencies other than the functional currency are recognised in the cash flow statement Â
using average exchange rates for the individual months if these are a reasonable approximation of the Â
actual exchange rates at the transaction dates. If this is not the case, the actual exchange rates for the Â
specific days in questions are used. Â
Cash comprise cash subject to an insignificant risk of changes in value less any overdraft facilities that Â
are an integral part of the ALK Groupâs cash management.  5.3 Related parties Â
Related party exercising control Â
ALK-Abelló A/S is controlled by the Lundbeck Foundation (Lundbeckfond Invest A/S) domiciled in Â
Copenhagen, Denmark, which holds 67.2% of the total number of votes in ALK Abelló A/S. The remaining Â
shares are widely held. ALK-Abelló A/S is parent company, and ultimate parent for the ALK Group is the Â
Lundbeck Foundation (Lundbeckfond Invest A/S, incorporated in Denmark). Â
Other related parties comprise ALKâs Board of Management and Board of Directors, companies in Â
which the majority shareholder exercises control, and such companiesâ subsidiaries, in this case e.g, Â
H. Lundbeck A/S and Falck A/S and their subsidiaries. Â
Transactions and balances Â
Transactions and balances with the parent companyâs majority shareholder: Â
â¢
ALK-Abelló A/S received DKK 52 million (2021: DKK 26 million) concerning outstanding company tax Â
from the Lundbeck Foundation (Lundbeckfond Invest A/S). The company tax relates to ALK-Abelló Â
A/S and ALK-Abelló Nordic A/S. Â
â¢
Receivables from group companies to ALK-Abelló A/S relate to outstanding company tax of DKK 18 Â
million (2021: DKK 12 million) covering ALK-Abelló A/S and ALK-Abelló Nordic A/S. Â
Transactions with key management personnel consist of remuneration and exercise of share options, Â
see notes 2.4 and 5.1 of the consolidated financial statements. Â
No other transactions have taken place during the year with Board of Directors, Board of Management, Â
major shareholders or other related parties.  5.4 Events after the reporting period Â
No events have occured after the reporting period, that influence the evaluation of the consolidated Â
financial statements.  5.5 Approval of financial statements Â
The financial statements were approved by the Board of Directors and authorised for issue on 3 Â
February 2023.  5.6 List of companies in the ALK Group Â
Activity Â
Production Â
Sales and distribution Â
Research and development Â
Services Â
Percentage of Â
Entity Â
Country shares owned Â
Activity Â
Parent company Â
ALK-Abelló A/S Â
Denmark Â
Subsidiaries by geographical area Â
Europe Â
ALK-Abelló Allergie-Service GmbH Â
Austria Â
100% Â
ALK-Abelló Nordic A/S Â
Denmark Â
100% Â
ALK-Abelló Nordic A/S (branch) Â
Finland Â
100% Â
ALK-Abelló Nordic A/S (branch) Â
Norway Â
100% Â
ALK-Abelló Nordic A/S (branch) Â
Sweden Â
100% Â
ALK-Abelló S.A.S. Â
France Â
100% Â
ALK-Abelló Arzneimittel GmbH Â
Germany Â
100% Â
ALK-Abelló B.V.* Â
Netherlands Â
100% Â
ALK-Abelló Sp. z o.o. Â
Poland Â
100% Â
ALK Slovakia s.r.o. Â
Slovakia Â
100% Â
ALK Slovakia s.r.o. â odÅ¡teËpny´ závod (branch) Â
Czech Republic Â
100% Â
ALK-Abelló S.A. Â
Spain Â
100% Â
ALK-Abelló S.p.A. Â
Italy Â
100% Â
ALK AG (in liquidation) Â
Switzerland Â
100% Â
ALK-Abelló AG Â
Switzerland Â
100% Â
ALK-Abelló Ltd. Â
United Kingdom Â
100% Â
* Exemption for local audit of the 2022 accounts under the ruling of the Article 2:403 of the Dutch Civil Code is intended â Â
Btw-nr. NL005302766B01 Â Percentage of Â
Entity Â
Country shares owned Â
Activity Â
North America Â
ALK-Abelló Pharmaceuticals, Inc. Â
Canada Â
100% Â
ALK-Abelló, Inc. Â
USA Â
100% Â
OKC Allergy Supplies, Inc. Â
USA Â
100% Â
ALK-Abelló Source Materials, Inc. Â
USA Â
100% Â
OKC Crystal Laboratory, Inc. Â
USA Â
100% Â
International markets Â
ALK-Abelló A/S (branch) Â
China Â
100% Â
ALK (Shanghai) Medical Technology Co., Ltd. Â
China Â
100% Â
ALK (Shanghai) Medical Technology Co., Ltd. Beijing (branch) Â
China Â
100% Â
ALK (Shanghai) Medical Technology Co., Ltd. Guangzhou (branch) Â
China Â
100% Â
ALK (Guangzhou) Medical Technology Co., Ltd. Â
China Â
100% Â
Tasfiye Halinde ALK Ilac ve Alerji Ãrünleri Ticaret Anonim Sirketi Â
(in liquidation) Â
Turkey Â
100% Â </ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory>
<ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory contextRef="ctx18" id="fact1890" xml:lang="en">1.1 General accounting policies  The consolidated financial statements Â
for the period 1 January to 31 Â
December 2022 have been prepared Â
in accordance with the International Â
Financial Reporting Standards (IFRS) Â
as adopted by the EU and in accordance Â
with Danish disclosure requirements Â
for listed companies. Additional Danish Â
disclosure requirements for annual Â
reports are imposed by the Statutory Â
Order on Adoption of IFRS issued under Â
the Danish Financial Statements Act. Â The consolidated financial statements Â
are presented in Danish kroner (DKK), Â
which is considered the primary Â
currency of the ALK Groupâs activities Â
and the functional currency of the Â
parent company. Â
The consolidated financial statements Â
are presented on a historical cost basis, Â
apart from certain financial instruments, Â
which are measured at fair value. Â
The general accounting policies Â
described below apply to the Â
consolidated financial statements as Â
a whole. To enhance understanding, Â
specific accounting policies are Â
described in the notes to which they Â
relate. The description of accounting Â
policies in the notes form part of the Â
overall description of accounting Â
policies. Â The accounting policies are unchanged Â
from last year except for the below Â
mentioned impacts of new standards. Â New standards effective from Â
1 January 2022 Â
The ALK Group has implemented all Â
new and amended standards and IFRIC Â
interpretations which are effective Â
for the financial year 2022. This has Â
not resulted in any changes to the Â
accounting policies of the ALK Group. Â New standards effective on or after Â
1 January 2023 Â
A number of IFRS standards, amended Â
standards and IFRIC interpretations, Â
which are effective on or after 1 January Â
2023, have not been implemented. Â
Based on a preliminary assessment it Â
is estimated that these standards and Â
interpretations will have no material Â
impact on the consolidated financial Â
statements. Â Basis of consolidation Â
The consolidated financial statements Â
comprise the financial statements of Â
ALK-Abelló A/S (the parent company) Â
and companies (subsidiaries) Â
controlled by the parent company. Â
The consolidated financial statements Â
are prepared as a consolidation of Â
items of a uniform nature. The financial  statements used for consolidation are Â
prepared in accordance with the ALK Â
Groupâs accounting policies. Â
On consolidation, intra-group income Â
and expenses, intra-group balances Â
and dividends, and gains and losses Â
arising on intra-group transactions are Â
eliminated. Â Foreign currency translation Â
On initial recognition, transactions Â
denominated in currencies other Â
than DKK are translated at average Â
exchange rates, which are an Â
approximation of the exchange rates Â
at the transaction date. Receivables Â
and debt and other monetary items not Â
settled at the balance sheet date are Â
translated at the closing rate. Â
Exchange rate differences between Â
the exchange rate at the date of Â
the transaction and the exchange Â
rate at the date of payment or the Â
balance sheet date, respectively, are Â
recognised in the income statement Â
under financial items. Tangible assets Â
and intangible assets, inventories and Â
other nonmonetary assets acquired in Â
foreign currency and measured based Â
on historical cost are translated at the Â
exchange rates at the transaction date. Â On recognition in the consolidated Â
financial statements of subsidiaries Â
whose financial statements are Â
presented in a functional currency other Â
than DKK, the income statements are Â
translated at average exchange rates Â
for the respective months, unless these Â
deviate materially from the actual Â
exchange rates at the transaction Â
dates. In that case, the actual exchange Â
rates are used. Balance sheet items Â
are translated at the exchange rates Â
at the balance sheet date. Goodwill is Â
considered to belong to the acquired Â
company in question and is translated Â
at the exchange rate at the balance Â
sheet date. Â
Exchange rate differences arising on Â
the translation of foreign subsidiariesâ Â
opening balance sheet items to the Â
exchange rates at the balance sheet Â
date and on the translation of the Â
income statements from average Â
exchange rates to exchange rates at the Â
balance sheet date are recognised in Â
other comprehensive income. Â
Foreign exchange rate adjustment of Â
receivables or debt to subsidiaries Â
which are considered part of the Â
parent companyâs overall investment Â
in the subsidiary in question are also Â
recognised in other comprehensive  income in the consolidated financial Â
statements. Â Definitions and ratios Â
The key ratios have been calculated in Â
accordance with generally accepted Â
financial ratios applied by financial Â
analysts. Definitions are shown on page Â
94. Â
Reporting under the ESEF regulation Â
The Commission Delegated Regulation Â
(EU) 2019/815 on the European Â
Single Electronic Format (ESEF) (ESEF Â
Regulation) has introduced a single Â
electronic reporting format for the Â
annual financial reports of issuers with Â
securities listed on the EU regulated Â
markets. Â
The ESEF Regulation sets out the Â
following main requirements: (1) Â
Issuers shall draw up and disclose Â
their annual financial reports using Â
the XHTML format; and (2) issuers that Â
draw-up their primary consolidated Â
financial statements in accordance Â
with IFRS as endorsed by the EU shall Â
tag those consolidated financial Â
statements using inline eXtensible Â
Business Reporting Language (iXBRL) Â
including block-tag of the notes to the Â
consolidated financial statements. Â The combination of the XHTML Â
format with the iXBRL tags makes the Â
annual financial reports both human- Â
readable and machine-readable, Â
thus enhancing accessibility, analysis Â
and comparability of the information Â
included in the annual financial reports. Â
iXBRL tags shall comply with the ESEF Â
taxonomy, which is included in the ESEF Â
Regulation and developed based on the Â
IFRS taxonomy published by the IFRS Â
Foundation. Â
As part of the tagging process financial Â
statement line items are marked up Â
to elements in the ESEF taxonomy. Â
If a financial statement line item is Â
not defined in the ESEF taxonomy, an Â
extension to the taxonomy is created. Â
Extensions have to be anchored Â
to elements in the ESEF taxonomy, Â
except for elements corresponding to Â
subtotals. Â
The annual report 2022 for the ALK Â
Group submitted to the Danish Financial Â
Supervisory Authority and Nasdaq Â
consists of the XHTML document Â
together with some technical files all Â
included in a ZIP file named âALK-2022- Â
12-31-en.zipâ. Â Key definitions Â
XHTML (eXtensible HyperText Markup Â
Language) is a text-based markup Â
language used to structure and mark Â
up content such as text, images, and Â
hyperlinks in documents that are Â
displayed as Web pages in an updated Â
standard Web browser like Chrome or Â
Edge. Â iXBRL tags (or Inline XBRL tags) are Â
hidden meta-information embedded Â
in the source code of an XHTML Â
document in accordance with the Inline Â
XBRL 1.1 specification, which enables Â
the conversion of XHTML-formatted Â
information into a machine-readable Â
XBRL data record by appropriate Â
software. Â The tagging process is a process where Â
iXBRL tags are applied to financial Â
statement line items, notes etc. Â Taxonomy is an electronic dictionary Â
of business reporting elements used Â
to report business data. A taxonomy Â
element is an element defined in a Â
taxonomy that is used for the machine- Â
readable labeling of information in an Â
XBRL data record. Â </ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory>
<ifrs-full:StatementOfIFRSCompliance contextRef="ctx18" id="fact1907" xml:lang="en">The consolidated financial statements Â
for the period 1 January to 31 Â
December 2022 have been prepared Â
in accordance with the International Â
Financial Reporting Standards (IFRS) Â
as adopted by the EU and in accordance Â
with Danish disclosure requirements Â
for listed companies. Additional Danish Â
disclosure requirements for annual Â
reports are imposed by the Statutory Â
Order on Adoption of IFRS issued under Â
the Danish Financial Statements Act. Â </ifrs-full:StatementOfIFRSCompliance>
<ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory contextRef="ctx18" id="fact1908" xml:lang="en">New standards effective from Â
1 January 2022 Â
The ALK Group has implemented all Â
new and amended standards and IFRIC Â
interpretations which are effective Â
for the financial year 2022. This has Â
not resulted in any changes to the Â
accounting policies of the ALK Group. Â </ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory>
<ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory contextRef="ctx18" id="fact1909" xml:lang="en">New standards effective from Â
1 January 2022 Â
The ALK Group has implemented all Â
new and amended standards and IFRIC Â
interpretations which are effective Â
for the financial year 2022. This has Â
not resulted in any changes to the Â
accounting policies of the ALK Group. Â </ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory>
<ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory contextRef="ctx18" id="fact1913" xml:lang="en">Foreign currency translation Â
On initial recognition, transactions Â
denominated in currencies other Â
than DKK are translated at average Â
exchange rates, which are an Â
approximation of the exchange rates Â
at the transaction date. Receivables Â
and debt and other monetary items not Â
settled at the balance sheet date are Â
translated at the closing rate. Â
Exchange rate differences between Â
the exchange rate at the date of Â
the transaction and the exchange Â
rate at the date of payment or the Â
balance sheet date, respectively, are Â
recognised in the income statement Â
under financial items. Tangible assets Â
and intangible assets, inventories and Â
other nonmonetary assets acquired in Â
foreign currency and measured based Â
on historical cost are translated at the Â
exchange rates at the transaction date. Â On recognition in the consolidated Â
financial statements of subsidiaries Â
whose financial statements are Â
presented in a functional currency other Â
than DKK, the income statements are Â
translated at average exchange rates Â
for the respective months, unless these Â
deviate materially from the actual Â
exchange rates at the transaction Â
dates. In that case, the actual exchange Â
rates are used. Balance sheet items Â
are translated at the exchange rates Â
at the balance sheet date. Goodwill is Â
considered to belong to the acquired Â
company in question and is translated Â
at the exchange rate at the balance Â
sheet date. Â
Exchange rate differences arising on Â
the translation of foreign subsidiariesâ Â
opening balance sheet items to the Â
exchange rates at the balance sheet Â
date and on the translation of the Â
income statements from average Â
exchange rates to exchange rates at the Â
balance sheet date are recognised in Â
other comprehensive income. Â
Foreign exchange rate adjustment of Â
receivables or debt to subsidiaries Â
which are considered part of the Â
parent companyâs overall investment Â
in the subsidiary in question are also Â
recognised in other comprehensive  income in the consolidated financial Â
statements. Â </ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory>
<ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory contextRef="ctx18" id="fact1916" xml:lang="en">Foreign currency translation Â
On initial recognition, transactions Â
denominated in currencies other Â
than DKK are translated at average Â
exchange rates, which are an Â
approximation of the exchange rates Â
at the transaction date. Receivables Â
and debt and other monetary items not Â
settled at the balance sheet date are Â
translated at the closing rate. Â
Exchange rate differences between Â
the exchange rate at the date of Â
the transaction and the exchange Â
rate at the date of payment or the Â
balance sheet date, respectively, are Â
recognised in the income statement Â
under financial items. Tangible assets Â
and intangible assets, inventories and Â
other nonmonetary assets acquired in Â
foreign currency and measured based Â
on historical cost are translated at the Â
exchange rates at the transaction date. Â On recognition in the consolidated Â
financial statements of subsidiaries Â
whose financial statements are Â
presented in a functional currency other Â
than DKK, the income statements are Â
translated at average exchange rates Â
for the respective months, unless these Â
deviate materially from the actual Â
exchange rates at the transaction Â
dates. In that case, the actual exchange Â
rates are used. Balance sheet items Â
are translated at the exchange rates Â
at the balance sheet date. Goodwill is Â
considered to belong to the acquired Â
company in question and is translated Â
at the exchange rate at the balance Â
sheet date. Â
Exchange rate differences arising on Â
the translation of foreign subsidiariesâ Â
opening balance sheet items to the Â
exchange rates at the balance sheet Â
date and on the translation of the Â
income statements from average Â
exchange rates to exchange rates at the Â
balance sheet date are recognised in Â
other comprehensive income. Â
Foreign exchange rate adjustment of Â
receivables or debt to subsidiaries Â
which are considered part of the Â
parent companyâs overall investment Â
in the subsidiary in question are also Â
recognised in other comprehensive  income in the consolidated financial Â
statements. Â </ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory>
<ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations contextRef="ctx18" id="fact1910" xml:lang="en">New standards effective on or after Â
1 January 2023 Â
A number of IFRS standards, amended Â
standards and IFRIC interpretations, Â
which are effective on or after 1 January Â
2023, have not been implemented. Â
Based on a preliminary assessment it Â
is estimated that these standards and Â
interpretations will have no material Â
impact on the consolidated financial Â
statements. Â </ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations>
<ifrs-full:DisclosureOfBasisOfConsolidationExplanatory contextRef="ctx18" id="fact1911" xml:lang="en">Basis of consolidation Â
The consolidated financial statements Â
comprise the financial statements of Â
ALK-Abelló A/S (the parent company) Â
and companies (subsidiaries) Â
controlled by the parent company. Â
The consolidated financial statements Â
are prepared as a consolidation of Â
items of a uniform nature. The financial  statements used for consolidation are Â
prepared in accordance with the ALK Â
Groupâs accounting policies. Â
On consolidation, intra-group income Â
and expenses, intra-group balances Â
and dividends, and gains and losses Â
arising on intra-group transactions are Â
eliminated. Â </ifrs-full:DisclosureOfBasisOfConsolidationExplanatory>
<ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification contextRef="ctx18" id="fact1503" xml:lang="en">ALK-Abelló A/S</ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification>
<ifrs-full:DomicileOfEntity contextRef="ctx18" id="fact1504" xml:lang="en">Denmark</ifrs-full:DomicileOfEntity>
<ifrs-full:LegalFormOfEntity contextRef="ctx18" id="fact1505" xml:lang="en">A/S</ifrs-full:LegalFormOfEntity>
<ifrs-full:CountryOfIncorporation contextRef="ctx18" id="fact1506" xml:lang="en">Denmark</ifrs-full:CountryOfIncorporation>
<ifrs-full:AddressOfRegisteredOfficeOfEntity contextRef="ctx18" id="fact1507" xml:lang="en">Bøge Allé 6-8, DK-2970 Hørsholm</ifrs-full:AddressOfRegisteredOfficeOfEntity>
<ifrs-full:PrincipalPlaceOfBusiness contextRef="ctx18" id="fact1508" xml:lang="en">Global</ifrs-full:PrincipalPlaceOfBusiness>
<ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities contextRef="ctx18" id="fact1509" xml:lang="en">ALK is a global allergy solutions</ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities>
<ifrs-full:NameOfParentEntity contextRef="ctx18" id="fact1510" xml:lang="en">Lundbeckfond Invest A/S</ifrs-full:NameOfParentEntity>
<ifrs-full:NameOfUltimateParentOfGroup contextRef="ctx18" id="fact1511" xml:lang="en">Lundbeck Foundation</ifrs-full:NameOfUltimateParentOfGroup>
<ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory contextRef="ctx18" id="fact1919" xml:lang="en">1.2 Significant accounting estimates and judgements  In the preparation of the consolidated Â
financial statements according to Â
IFRS, Management is required to make Â
certain estimates as many financial Â
statement items cannot be reliably Â
measured, but must be estimated. Â
Such estimates comprise judgements Â
made on the basis of the most recent Â
information available at the reporting Â
date. Â It may be necessary to change previous Â
estimates as a result of changes to the Â
assumptions on which the estimates Â
were based or due to supplementary  information, additional experience or Â
subsequent events. Similarly, the value Â
of assets and liabilities often depends Â
on future events that are somewhat Â
uncertain. In that connection, it is Â
necessary to set out e.g. a course of Â
events that reflects Managementâs Â
assessment of the most probable Â
course of events. Â Management considers those listed Â
below as the key accounting estimates Â
and related judgements used in the Â
preparation of the consolidated Â
financial statements. Â A description of significant accounting Â
estimates and judgements as well as Â
assumptions applied is included in the Â
relevant notes. Â Estimate/ Â
Note Â
Key accounting estimates and judgements Â
judgement Â
Sales deductions comprising rebates, discounts, and mandated Â
2.1 Revenue and segment information Â
Estimate Â
price adjustments Â
2.2 Expenses Â
Recognition of costs for outsourced clinical trials Â
Estimate Â
Provision for uncertain tax positions and measurement of Â
Estimate/ Â
2.7 Income tax and deferred tax Â
deferred tax assets Â
judgement Â
3.1 Intangible assets Â
Recoverable amount of goodwill Â
Estimate Â
Valuation of inventories and capitalisation of indirect production Â
3.4 Inventories Â
Estimate Â
costs  Sales deductions comprising rebates, discounts, and mandated price adjustments are estimated Â
and accrued for at the time when the related sales are recorded. Management is required to make Â
significant estimates in the revenue recognition relating to the accruals for sales deductions as not all Â
conditions are known at the time of sale and as revenue can only be recognised to the extent that it is Â
probable that a significant reversal of the recognised revenue will not occur. Â
Managementâs estimate of accruals for sales deductions is based on a calculation taking into Â
consideration among other factors, existing contractual obligations, the extent of predictability, Â
historical experience with similar transactions and whether the consideration is highly susceptible to Â
factors outside ALKâs influence. Â
ALK considers the accruals established for sales deductions to be reasonable and appropriate based Â
on currently available information. The accruals for sales deductions are adjusted regularly as new or Â
more detailed information becomes available and when actual amounts are processed. Â Clinical trials, which are outsourced to Clinical Research Organisations (âCROsâ), take several years Â
to complete. As such, Management is required to make estimates based on the progress and costs Â
incurred to-date for the ongoing trials. Estimates are made in determining the amount of costs to be Â
expensed during the period or recognised as prepayments or accruals on the balance sheet. Â
At 31 December 2022, DKK 114 million is recognised as accrued expenses (2021: DKK 179 million) and Â
DKK 130 million as prepayments in the balance sheet (2021: DKK 240 million). In 2022, clinical trials Â
expenses of DKK 240 million have been recognised in the income statement (2021: DKK 242 million). Â Management is required to make an estimate in the recognition of deferred tax assets. This assessment Â
includes estimates of future taxable income in ALK and other members of the joint Danish taxation scheme Â
with the Lundbeck Foundation. The forecasts for ALK-Abelló A/S with increased positive results (EBT) is Â
based on growth in revenue and earnings driven by SLIT-tablets. Â
At 31 December 2022, the value of the total net deferred tax asset is DKK 712 million (2021: DKK 789 Â
million). It includes a net deferred tax asset in Denmark related to tax losses carried forward of DKK 343 Â
million (2021: DKK 328 million). Â
Complying with tax rules, when conducting business globally, can be complex as the interpretation of Â
legislation and case law may change over time or may not always be clear. Managementâs judgements Â
are applied to assess the possible effect of exposures and the possible outcome of disputes or Â
interpretational uncertainties when transfer pricing disputes with local tax authorities may occur. Â
Dialogue with local tax authorities, tax advisors, business plans and knowledge of the business are key Â
parameters for Management to estimate the tax assets and liabilities. Â
At 31 December 2022, the ALK Group recognises uncertain tax position as part of non-current tax. The Â
actual outcome may deviate and depends on the result of litigation and settlements with the relevant Â
local tax authorities. Â The assessment of whether goodwill is impaired requires a determination of the value in use of the cash- Â
generating unit. The determination of the value in use requires estimates of the expected future cash Â
flow of the cash-generating unit and a reasonable discount rate. Â
At 31 December 2022, the carrying amount of goodwill is DKK 460 million (2021: DKK 457 million). Â The valuation of inventories includes Managementâs assessment of the saleability of the finished goods, Â
and the quality of raw materials to be used in the production process. If the expected sales price less Â
any completion costs and costs to execute sales (net realisable value) of inventories is lower than the Â
carrying amount, the inventories are written down to net realisable value. When assessing salability Â
and net realisable value, Management uses estimates for future sales and related costs. Â
End of 2022, the write-down of inventories to net realisable value amounted to DKK 85 million (2021: DKK Â
97 million). Â
Further, work in progress and manufactured goods and goods for resale are measured at cost including Â
indirect production costs. The indirect production costs are measured using a standard cost method. Â
This is reviewed regularly to ensure reliable measurement of employee costs, capacity utilisation, cost Â
drivers and other relevant factors. When including the indirect productions costs for capitalisation, Â
Management makes estimates about cost of production, standard cost variances, cost drivers and Â
capacity utilisation. Changes in these parameters may have a significant impact on the gross margin Â
and the overall valuation of work in progress and manufactured goods and goods for resale. Â
End of 2022, the indirect production costs capitalised under inventories amounted to DKK 442 million Â
(2021: DKK 406 million). Â </ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory>
<ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory contextRef="ctx18" id="fact1931" xml:lang="en">2.1 Revenue and segment information Â
Europe Â
North America Â
International markets Â
Total Â
Amounts in DKKm Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
SCIT/SLIT-drops Â
1,266 Â
1,273 Â
349 Â
302 Â
133 Â
80 Â
1,748 Â
1,655 Â
SLIT-tablets Â
1,519 Â
1,340 Â
151 Â
120 Â
432 Â
314 Â
2,102 Â
1,774 Â
Other products and services Â
273 Â
196 Â
357 Â
261 Â
31 Â
30 Â
661 Â
487 Â
Total revenue Â
3,058 Â
2,809 Â
857 Â
683 Â
596 Â
424 Â
4 , 511 Â
3,916 Â
Sale of goods Â
4,411 Â
3,835 Â
Royalties Â
93 Â
81 Â
Services Â
7
-
Total revenue Â
4 , 511 Â
3,916 Â
Of total revenue, DKK 119 million (2021: DKK 101 million) is derived from Denmark. Â
The ALK Groupâs non-current tangible and intangible assets are distributed among the following geographical markets: Â
Europe Â
North America Â
International markets Â
Total Â
Amounts in DKKm Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
Non-current tangible and Â
intangible assets Â
1,754 Â
1,671 Â
899 Â
763 Â
7
2
2,660 Â
2,436 Â
Of total non-current tangible and intangible assets, DKK 1,356 million relates to assets in Denmark (2021: DKK 1,283 million). Â Revenue Â
The primary performance obligation of Â
the ALK Group is the sale and delivery of Â
own-manufactured goods and goods for resale Â
for allergy treatment. Revenue from the sale of Â
goods is recognised in the income statement Â
upon the control of the goods being transferred Â
to the customer, i.e. when goods are delivered. Â
Revenue is recognised by the ALK Group at a Â
point in time. Â The ALK Groupâs customers have payment terms that reflect the customer type and the market in which Â
sales take place, which typically varies from 0 to 180 days. Â Revenue is measured as the fair value of the consideration received or receivable. Â Revenue is measured exclusive of VAT, taxes etc. charged on behalf of third parties and less any Â
commissions and discounts in connection with sales. Â
Furthermore, revenue includes licence income and royalties from outlicensed products as well as Â
up-front payments, milestone payments and services in connection with partnerships. These revenues Â
are recognised in the income statement in accordance with the agreements and when the ALK Group Â
obtains the right to the payments, which is when services have been delivered to the customer or at the Â
point in time the subsequent sales occur. Â
When combined contracts are entered, the elements of the contracts are identified and assessed Â
separately for accounting purposes. Â Sales deductions comprising rebates, discounts, and mandated price adjustments are estimated Â
and accrued for at the time when the related sales are recorded. Management is required to make Â
significant estimates in the revenue recognition relating to the accruals for sales deductions as not all Â
conditions are known at the time of sale and as revenue can only be recognised to the extent that it is Â
probable that a significant reversal of the recognised revenue will not occur. Â
Managementâs estimate of accruals for sales deductions is based on a calculation taking into Â
consideration among other factors, existing contractual obligations, the extent of predictability, Â
historical experience with similar transactions and whether the consideration is highly susceptible to Â
factors outside ALKâs influence. Â
ALK considers the accruals established for sales deductions to be reasonable and appropriate based Â
on currently available information. The accruals for sales deductions are adjusted regularly as new or Â
more detailed information becomes available and when actual amounts are processed. Â </ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory>
<ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory contextRef="ctx18" id="fact1937" xml:lang="en">2.1 Revenue and segment information Â
Europe Â
North America Â
International markets Â
Total Â
Amounts in DKKm Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
SCIT/SLIT-drops Â
1,266 Â
1,273 Â
349 Â
302 Â
133 Â
80 Â
1,748 Â
1,655 Â
SLIT-tablets Â
1,519 Â
1,340 Â
151 Â
120 Â
432 Â
314 Â
2,102 Â
1,774 Â
Other products and services Â
273 Â
196 Â
357 Â
261 Â
31 Â
30 Â
661 Â
487 Â
Total revenue Â
3,058 Â
2,809 Â
857 Â
683 Â
596 Â
424 Â
4 , 511 Â
3,916 Â
Sale of goods Â
4,411 Â
3,835 Â
Royalties Â
93 Â
81 Â
Services Â
7
-
Total revenue Â
4 , 511 Â
3,916 Â
Of total revenue, DKK 119 million (2021: DKK 101 million) is derived from Denmark. Â
The ALK Groupâs non-current tangible and intangible assets are distributed among the following geographical markets: Â
Europe Â
North America Â
International markets Â
Total Â
Amounts in DKKm Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
Non-current tangible and Â
intangible assets Â
1,754 Â
1,671 Â
899 Â
763 Â
7
2
2,660 Â
2,436 Â
Of total non-current tangible and intangible assets, DKK 1,356 million relates to assets in Denmark (2021: DKK 1,283 million). Â Segment information Â
Based on the internal reporting used by the Â
Board of Management to assess the results of Â
operations and allocation of resources, the ALK Â
Group has identified one operating segment Â
âAllergy treatmentâ, which is in accordance Â
with the way the activities are organised and Â
managed. Even though revenue within the Â
operating segment âAllergy treatmentâ can Â
be divided by product lines and market, the Â
main part of the activities within production, Â
research and development, sales and Â
marketing and administration are shared by Â
the ALK Group as a whole. The disclosures in Â
the financial statements include a breakdown Â
of revenue by product line and a geographical Â
breakdown of revenue and non-current assets. Â
The geographical information on markets is Â
based on customer and asset location. Â Revenue Â
The primary performance obligation of Â
the ALK Group is the sale and delivery of Â
own-manufactured goods and goods for resale Â
for allergy treatment. Revenue from the sale of Â
goods is recognised in the income statement Â
upon the control of the goods being transferred Â
to the customer, i.e. when goods are delivered. Â
Revenue is recognised by the ALK Group at a Â
point in time. Â </ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory>
<ifrs-full:DisclosureOfRevenueExplanatory contextRef="ctx18" id="fact1940" xml:lang="en">2.1 Revenue and segment information Â
Europe Â
North America Â
International markets Â
Total Â
Amounts in DKKm Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
SCIT/SLIT-drops Â
1,266 Â
1,273 Â
349 Â
302 Â
133 Â
80 Â
1,748 Â
1,655 Â
SLIT-tablets Â
1,519 Â
1,340 Â
151 Â
120 Â
432 Â
314 Â
2,102 Â
1,774 Â
Other products and services Â
273 Â
196 Â
357 Â
261 Â
31 Â
30 Â
661 Â
487 Â
Total revenue Â
3,058 Â
2,809 Â
857 Â
683 Â
596 Â
424 Â
4 , 511 Â
3,916 Â
Sale of goods Â
4,411 Â
3,835 Â
Royalties Â
93 Â
81 Â
Services Â
7
-
Total revenue Â
4 , 511 Â
3,916 Â
Of total revenue, DKK 119 million (2021: DKK 101 million) is derived from Denmark. Â
The ALK Groupâs non-current tangible and intangible assets are distributed among the following geographical markets: Â
Europe Â
North America Â
International markets Â
Total Â
Amounts in DKKm Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
2022 Â
2021 Â
Non-current tangible and Â
intangible assets Â
1,754 Â
1,671 Â
899 Â
763 Â
7
2
2,660 Â
2,436 Â
Of total non-current tangible and intangible assets, DKK 1,356 million relates to assets in Denmark (2021: DKK 1,283 million). Â Revenue Â
The primary performance obligation of Â
the ALK Group is the sale and delivery of Â
own-manufactured goods and goods for resale Â
for allergy treatment. Revenue from the sale of Â
goods is recognised in the income statement Â
upon the control of the goods being transferred Â
to the customer, i.e. when goods are delivered. Â
Revenue is recognised by the ALK Group at a Â
point in time. Â The ALK Groupâs customers have payment terms that reflect the customer type and the market in which Â
sales take place, which typically varies from 0 to 180 days. Â Revenue is measured as the fair value of the consideration received or receivable. Â Revenue is measured exclusive of VAT, taxes etc. charged on behalf of third parties and less any Â
commissions and discounts in connection with sales. Â
Furthermore, revenue includes licence income and royalties from outlicensed products as well as Â
up-front payments, milestone payments and services in connection with partnerships. These revenues Â
are recognised in the income statement in accordance with the agreements and when the ALK Group Â
obtains the right to the payments, which is when services have been delivered to the customer or at the Â
point in time the subsequent sales occur. Â
When combined contracts are entered, the elements of the contracts are identified and assessed Â
separately for accounting purposes. Â Sales deductions comprising rebates, discounts, and mandated price adjustments are estimated Â
and accrued for at the time when the related sales are recorded. Management is required to make Â
significant estimates in the revenue recognition relating to the accruals for sales deductions as not all Â
conditions are known at the time of sale and as revenue can only be recognised to the extent that it is Â
probable that a significant reversal of the recognised revenue will not occur. Â
Managementâs estimate of accruals for sales deductions is based on a calculation taking into Â
consideration among other factors, existing contractual obligations, the extent of predictability, Â
historical experience with similar transactions and whether the consideration is highly susceptible to Â
factors outside ALKâs influence. Â
ALK considers the accruals established for sales deductions to be reasonable and appropriate based Â
on currently available information. The accruals for sales deductions are adjusted regularly as new or Â
more detailed information becomes available and when actual amounts are processed. Â </ifrs-full:DisclosureOfRevenueExplanatory>
<ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory contextRef="ctx18" id="fact1946" xml:lang="en">Segment information Â
Based on the internal reporting used by the Â
Board of Management to assess the results of Â
operations and allocation of resources, the ALK Â
Group has identified one operating segment Â
âAllergy treatmentâ, which is in accordance Â
with the way the activities are organised and Â
managed. Even though revenue within the Â
operating segment âAllergy treatmentâ can Â
be divided by product lines and market, the Â
main part of the activities within production, Â
research and development, sales and Â
marketing and administration are shared by Â
the ALK Group as a whole. The disclosures in Â
the financial statements include a breakdown Â
of revenue by product line and a geographical Â
breakdown of revenue and non-current assets. Â
The geographical information on markets is Â
based on customer and asset location. Â </ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory>
<ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue contextRef="ctx18" id="fact1947" xml:lang="en">Revenue Â
The primary performance obligation of Â
the ALK Group is the sale and delivery of Â
own-manufactured goods and goods for resale Â
for allergy treatment. Revenue from the sale of Â
goods is recognised in the income statement Â
upon the control of the goods being transferred Â
to the customer, i.e. when goods are delivered. Â
Revenue is recognised by the ALK Group at a Â
point in time. Â The ALK Groupâs customers have payment terms that reflect the customer type and the market in which Â
sales take place, which typically varies from 0 to 180 days. Â Revenue is measured as the fair value of the consideration received or receivable. Â Revenue is measured exclusive of VAT, taxes etc. charged on behalf of third parties and less any Â
commissions and discounts in connection with sales. Â
Furthermore, revenue includes licence income and royalties from outlicensed products as well as Â
up-front payments, milestone payments and services in connection with partnerships. These revenues Â
are recognised in the income statement in accordance with the agreements and when the ALK Group Â
obtains the right to the payments, which is when services have been delivered to the customer or at the Â
point in time the subsequent sales occur. Â
When combined contracts are entered, the elements of the contracts are identified and assessed Â
separately for accounting purposes. Â Sales deductions comprising rebates, discounts, and mandated price adjustments are estimated Â
and accrued for at the time when the related sales are recorded. Management is required to make Â
significant estimates in the revenue recognition relating to the accruals for sales deductions as not all Â
conditions are known at the time of sale and as revenue can only be recognised to the extent that it is Â
probable that a significant reversal of the recognised revenue will not occur. Â
Managementâs estimate of accruals for sales deductions is based on a calculation taking into Â
consideration among other factors, existing contractual obligations, the extent of predictability, Â
historical experience with similar transactions and whether the consideration is highly susceptible to Â
factors outside ALKâs influence. Â
ALK considers the accruals established for sales deductions to be reasonable and appropriate based Â
on currently available information. The accruals for sales deductions are adjusted regularly as new or Â
more detailed information becomes available and when actual amounts are processed. Â </ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue>
<ifrs-full:DisclosureOfCostOfSalesExplanatory contextRef="ctx18" id="fact1952" xml:lang="en">Cost of sales Â
The item comprises cost of sales and production costs incurred in generating the revenue for the year. Â
Costs for raw materials, consumables, goods for resale, production staff and a proportion of production Â
overheads, including maintenance and depreciation, amortisation and impairment of tangible assets Â
and intangible assets used in production as well as operation, administration and management of Â
factories are recognised in cost of sales and production costs. In addition, the costs and write-down to Â
net realisable value of obsolete and slow-moving goods are recognised.  2.3 Depreciation, amortisation and impairment Â
Amounts in DKKm Â
2022 Â
2021 Â
Depreciation, amortisation and impairment allocation: Â
Cost of sales Â
163 Â
158 Â
Research and development expenses Â
9
8
Sales and marketing expenses Â
23 Â
36 Â
Administrative expenses Â
43 Â
40 Â
Total Â
238 Â
242 Â
Impairment amounts to DKK 2 million (2021: DKK 20 million), of which DKK 1 million relates to impairment Â
of tangible assets (2021: DKK 8 million) and DKK 1 million relates to intangible assets (2021: DKK 12 Â
million). Â
The impairment of tangible assets is related to impairment of production equipment of DKK 1 million with Â
no recoverable amount after impairment. The impairment is recognised as cost of sales. Â
The impairment of intangible assets is related to impairment of goodwill of DKK 1 million with no Â
recoverable amount after impairment. The impairment is associated with closing down activities in Â
Turkey and is recognised as sales and marketing expenses. Â </ifrs-full:DisclosureOfCostOfSalesExplanatory>
<ifrs-full:DisclosureOfExpensesExplanatory contextRef="ctx18" id="fact1954" xml:lang="en">Cost of sales Â
The item comprises cost of sales and production costs incurred in generating the revenue for the year. Â
Costs for raw materials, consumables, goods for resale, production staff and a proportion of production Â
overheads, including maintenance and depreciation, amortisation and impairment of tangible assets Â
and intangible assets used in production as well as operation, administration and management of Â
factories are recognised in cost of sales and production costs. In addition, the costs and write-down to Â
net realisable value of obsolete and slow-moving goods are recognised. Â Research and development expenses Â
The item comprises research and development expenses, including expenses incurred for wages Â
and salaries, amortisation, impairment of capitalised development projects in progress, and other Â
overheads as well as costs relating to research partnerships. Research expenses are recognised in the Â
income statement when incurred. Due to the long development periods and significant uncertainties Â
in relation to the development of new products, including risks regarding clinical trials and regulatory Â
approvals, it is the assessment that most of the ALK Groupâs development expenses do not meet the Â
capitalisation criteria in IAS 38, Intangible Assets. Consequently, development expenses are generally Â
recognised in the income statement when incurred. Development expenses relating to individual minor Â
development projects running for short-term periods and subject to limited risk are capitalised under Â
other intangible assets. Â Sales and marketing expenses Â
The item comprises selling and marketing expenses, including salaries and expenses relating to sales Â
staff, advertising and exhibitions, depreciation, amortisation and impairment losses on tangible assets Â
and intangible assets used in the sales and marketing process as well as other indirect costs. Â Administrative expenses Â
The item comprises expenses incurred for management and administration, including expenses for Â
administrative staff and management, office expenses and depreciation, amortisation and impairment Â
losses on tangible assets and intangible assets used in administration. Â Clinical trials, which are outsourced to Clinical Research Organisations (âCROsâ), take several years Â
to complete. As such, Management is required to make estimates based on the progress and costs Â
incurred to-date for the ongoing trials. Estimates are made in determining the amount of costs to be Â
expensed during the period or recognised as prepayments or accruals on the balance sheet. Â
At 31 December 2022, DKK 114 million is recognised as accrued expenses (2021: DKK 179 million) and Â
DKK 130 million as prepayments in the balance sheet (2021: DKK 240 million). In 2022, clinical trials Â
expenses of DKK 240 million have been recognised in the income statement (2021: DKK 242 million).  2.3 Depreciation, amortisation and impairment Â
Amounts in DKKm Â
2022 Â
2021 Â
Depreciation, amortisation and impairment allocation: Â
Cost of sales Â
163 Â
158 Â
Research and development expenses Â
9
8
Sales and marketing expenses Â
23 Â
36 Â
Administrative expenses Â
43 Â
40 Â
Total Â
238 Â
242 Â
Impairment amounts to DKK 2 million (2021: DKK 20 million), of which DKK 1 million relates to impairment Â
of tangible assets (2021: DKK 8 million) and DKK 1 million relates to intangible assets (2021: DKK 12 Â
million). Â
The impairment of tangible assets is related to impairment of production equipment of DKK 1 million with Â
no recoverable amount after impairment. The impairment is recognised as cost of sales. Â
The impairment of intangible assets is related to impairment of goodwill of DKK 1 million with no Â
recoverable amount after impairment. The impairment is associated with closing down activities in Â
Turkey and is recognised as sales and marketing expenses. Â Leases in the income statement Â
2022 Â
2021 Â
Amounts in DKKm Â
Expenses from short-term leases Â
2
1
Expenses from low-value assets (including cars) Â
18 Â
19 Â
Depreciation of right-of-use assets Â
43 Â
38 Â
Interest expenses on lease liabilities Â
6
7
Total Â
69 Â
65 Â
Cash outflow related to lease agreements was DKK 45 million (2021: DKK 39 million). Â
Lease liabilities are disclosed in note 4.2 Financial risks and financial instruments. Â </ifrs-full:DisclosureOfExpensesExplanatory>
<ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory contextRef="ctx18" id="fact1961" xml:lang="en">Cost of sales Â
The item comprises cost of sales and production costs incurred in generating the revenue for the year. Â
Costs for raw materials, consumables, goods for resale, production staff and a proportion of production Â
overheads, including maintenance and depreciation, amortisation and impairment of tangible assets Â
and intangible assets used in production as well as operation, administration and management of Â
factories are recognised in cost of sales and production costs. In addition, the costs and write-down to Â
net realisable value of obsolete and slow-moving goods are recognised. Â Research and development expenses Â
The item comprises research and development expenses, including expenses incurred for wages Â
and salaries, amortisation, impairment of capitalised development projects in progress, and other Â
overheads as well as costs relating to research partnerships. Research expenses are recognised in the Â
income statement when incurred. Due to the long development periods and significant uncertainties Â
in relation to the development of new products, including risks regarding clinical trials and regulatory Â
approvals, it is the assessment that most of the ALK Groupâs development expenses do not meet the Â
capitalisation criteria in IAS 38, Intangible Assets. Consequently, development expenses are generally Â
recognised in the income statement when incurred. Development expenses relating to individual minor Â
development projects running for short-term periods and subject to limited risk are capitalised under Â
other intangible assets. Â Sales and marketing expenses Â
The item comprises selling and marketing expenses, including salaries and expenses relating to sales Â
staff, advertising and exhibitions, depreciation, amortisation and impairment losses on tangible assets Â
and intangible assets used in the sales and marketing process as well as other indirect costs. Â Administrative expenses Â
The item comprises expenses incurred for management and administration, including expenses for Â
administrative staff and management, office expenses and depreciation, amortisation and impairment Â
losses on tangible assets and intangible assets used in administration. Â Clinical trials, which are outsourced to Clinical Research Organisations (âCROsâ), take several years Â
to complete. As such, Management is required to make estimates based on the progress and costs Â
incurred to-date for the ongoing trials. Estimates are made in determining the amount of costs to be Â
expensed during the period or recognised as prepayments or accruals on the balance sheet. Â
At 31 December 2022, DKK 114 million is recognised as accrued expenses (2021: DKK 179 million) and Â
DKK 130 million as prepayments in the balance sheet (2021: DKK 240 million). In 2022, clinical trials Â
expenses of DKK 240 million have been recognised in the income statement (2021: DKK 242 million). Â </ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory>
<ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory contextRef="ctx18" id="fact1966" xml:lang="en">Research and development expenses Â
The item comprises research and development expenses, including expenses incurred for wages Â
and salaries, amortisation, impairment of capitalised development projects in progress, and other Â
overheads as well as costs relating to research partnerships. Research expenses are recognised in the Â
income statement when incurred. Due to the long development periods and significant uncertainties Â
in relation to the development of new products, including risks regarding clinical trials and regulatory Â
approvals, it is the assessment that most of the ALK Groupâs development expenses do not meet the Â
capitalisation criteria in IAS 38, Intangible Assets. Consequently, development expenses are generally Â
recognised in the income statement when incurred. Development expenses relating to individual minor Â
development projects running for short-term periods and subject to limited risk are capitalised under Â
other intangible assets.  2.3 Depreciation, amortisation and impairment Â
Amounts in DKKm Â
2022 Â
2021 Â
Depreciation, amortisation and impairment allocation: Â
Cost of sales Â
163 Â
158 Â
Research and development expenses Â
9
8
Sales and marketing expenses Â
23 Â
36 Â
Administrative expenses Â
43 Â
40 Â
Total Â
238 Â
242 Â
Impairment amounts to DKK 2 million (2021: DKK 20 million), of which DKK 1 million relates to impairment Â
of tangible assets (2021: DKK 8 million) and DKK 1 million relates to intangible assets (2021: DKK 12 Â
million). Â
The impairment of tangible assets is related to impairment of production equipment of DKK 1 million with Â
no recoverable amount after impairment. The impairment is recognised as cost of sales. Â
The impairment of intangible assets is related to impairment of goodwill of DKK 1 million with no Â
recoverable amount after impairment. The impairment is associated with closing down activities in Â
Turkey and is recognised as sales and marketing expenses. Â </ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory>
<ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory contextRef="ctx18" id="fact1968" xml:lang="en">Research and development expenses Â
The item comprises research and development expenses, including expenses incurred for wages Â
and salaries, amortisation, impairment of capitalised development projects in progress, and other Â
overheads as well as costs relating to research partnerships. Research expenses are recognised in the Â
income statement when incurred. Due to the long development periods and significant uncertainties Â
in relation to the development of new products, including risks regarding clinical trials and regulatory Â
approvals, it is the assessment that most of the ALK Groupâs development expenses do not meet the Â
capitalisation criteria in IAS 38, Intangible Assets. Consequently, development expenses are generally Â
recognised in the income statement when incurred. Development expenses relating to individual minor Â
development projects running for short-term periods and subject to limited risk are capitalised under Â
other intangible assets. Â </ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory>
<ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory contextRef="ctx18" id="fact1969" xml:lang="en">Administrative expenses Â
The item comprises expenses incurred for management and administration, including expenses for Â
administrative staff and management, office expenses and depreciation, amortisation and impairment Â
losses on tangible assets and intangible assets used in administration.  2.3 Depreciation, amortisation and impairment Â
Amounts in DKKm Â
2022 Â
2021 Â
Depreciation, amortisation and impairment allocation: Â
Cost of sales Â
163 Â
158 Â
Research and development expenses Â
9
8
Sales and marketing expenses Â
23 Â
36 Â
Administrative expenses Â
43 Â
40 Â
Total Â
238 Â
242 Â
Impairment amounts to DKK 2 million (2021: DKK 20 million), of which DKK 1 million relates to impairment Â
of tangible assets (2021: DKK 8 million) and DKK 1 million relates to intangible assets (2021: DKK 12 Â
million). Â
The impairment of tangible assets is related to impairment of production equipment of DKK 1 million with Â
no recoverable amount after impairment. The impairment is recognised as cost of sales. Â
The impairment of intangible assets is related to impairment of goodwill of DKK 1 million with no Â
recoverable amount after impairment. The impairment is associated with closing down activities in Â
Turkey and is recognised as sales and marketing expenses. Â </ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory>
<ifrs-full:DisclosureOfEmployeeBenefitsExplanatory contextRef="ctx18" id="fact1983" xml:lang="en">2.4 Staff costs Â
2022 Â
2021 Â
Amounts in DKKm Â
Wages and salaries Â
1,584 Â
1,425 Â
Pensions, cf. note 3.7 Â
131 Â
115 Â
Other social security costs, etc. Â
207 Â
193 Â
Share-based payments, cf. note 5.1 Â
27 Â
35 Â
Total Â
1,949 Â
1,768 Â
Staff costs are allocated as follows: Â
Cost of sales Â
747 Â
682 Â
Research and development expenses Â
279 Â
254 Â
Sales and marketing expenses Â
673 Â
604 Â
Administrative expenses Â
187 Â
170 Â
Included in the cost of assets Â
63 Â
58 Â
Total Â
1,949 Â
1,768 Â
Remuneration to Management: Â
Remuneration to Board of Management:* Â
Salaries Â
19 Â
18 Â
Short-term incentive (cash bonus) Â
12 Â
12 Â
Pensions Â
1
1
Long-term incentives (share-based) based on expensed accounting value Â
7
11 Â
Total remuneration to Board of Management Â
39 Â
42 Â
Remuneration to Board of Directors Â
6
5
Total remuneration to Board of Management and Board of Directors Â
45 Â
47 Â
Employees Â
Average number (FTE) Â
2,609 Â
2,492 Â
Number year end (FTE) Â
2,680 Â
2,537 Â
*
The expensed costs include DKK 0 (2021: DKK 5 million) related to adjustment in the share options and performance share Â
units expected to vest.  3.7 Pensions and similar liabilities Â
The ALK Group has entered into defined contribution plans as well as defined benefit plans. Â
In defined contribution plans, the ALK Group is obliged to pay a certain contribution to a pension fund or Â
the like but bears no risks regarding the future development in interest, inflation, mortality, disability Â
rates etc. regarding the amount to be paid to the employee. Â
The ALK Group sponsors defined benefit plans for qualifying employees of its subsidiaries in Germany, Â
France and Switzerland. The defined benefit plans guarantee employees a certain level of pension Â
benefits for life. The pension is based on seniority and salary at the time of retirement. The ALK Group Â
bears the risks regarding the future development in interest, inflation, mortality, disability rates etc. Â
regarding the amount to be paid to the employee. Â
Amounts in DKKm Â
2022 Â
2021 Â
Costs related to defined contribution plans Â
107 Â
91 Â
Costs related to defined benefit plans Â
24 Â
24 Â
Total Â
131 Â
115 Â
Present value of funded pension obligations Â
24 Â
25 Â
Fair value of plan assets (100% insurance contract) Â
(21) Â
(17) Â
Funded pension obligations, net Â
3
8
Present value of unfunded pension obligations Â
161 Â
246 Â
Pension obligations Â
164 Â
254 Â
Anniversary liabilities Â
10 Â
11 Â
Other liabilities* Â
62 Â
59 Â
Pension obligations and similar liabilities, year end Â
236 Â
324 Â
* Other liabilities include liability related to the transition period for the Danish Holiday Act of DKK 60 million (2021: DKK 59 million). Â
Plan assets consist of assets placed in pension companies. Assets are placed in investments classified Â
as other assets than shares, bonds and property by the pension companies, and are not measured at Â
quoted prices. Â
The weighted average duration of the pension obligations is 16.58 years (2021: 19.24 years). Â 2022 Â
2021 Â
Amounts in DKKm Â
The principal assumptions used for the actuarial valuations Â
Discount rate range of 2% - 3.9% (weighted average rate) Â
3.8% Â
1.0% Â
Expected future rate of salary increase range of 1% - 2.5% Â
(weighted average rate) Â
2.4% Â
2.4% Â
Assumed life expectations on retirement age for current pensioners Â
(years based on weighted average)*: Â
Males Â
21.1 Â
21.1 Â
Females Â
24.3 Â
24.4 Â
Assumed life expectations on retirement age for current employees Â
(future pensioners) (years based on weighted average)*: Â
Males Â
22.4 Â
22.4 Â
Females Â
26.3 Â
26.3 Â
Sensitivity analysis: Â
Significant actuarial assumptions for determining the Â
defined benefit obligation Â
Discount rate, effect in case of increase in range of 0.25% - 1%** Â
(21) Â
(42) Â
Discount rate, effect in case of decrease in range of 0.25% - 1%** Â
27 Â
50 Â
Salary, effect in case of 0.25% - 0.5% increase** Â
2
4
Salary, effect in case of 0.25% - 0.5% decrease** Â
(2) Â
(4) Â
Life expectancy, effect in case of increase by 1 year* Â
6
11 Â
Life expectancy, effect in case of decrease by 1 year* Â
(6) Â
(11) Â
Movements in the present value of the funded defined benefit obligation Â
in the current year Â
Opening funded defined benefit obligation Â
25 Â
20 Â
Current service costs Â
2
2
Actuarial (gains)/losses arising from changes in financial assumptions Â
(5) Â
-
Benefits paid Â
1
2
Currency translation adjustment Â
1
1
Closing funded defined benefit obligation Â
24 Â
25 Â
*
Based on national statistics for mortality. Â
** Based on actuarial reports with different rates.  2022 Â
2021 Â
Amounts in DKKm Â
Movements in the fair value of the plan assets in the current year Â
Opening fair value of plan assets Â
17 Â
13 Â
Contribution from plan participants Â
2
2
Benefits paid Â
1
2
Currency translation adjustment Â
1
-
Closing fair value of plan assets (fully invested in insurance contracts) Â
21 Â
17 Â
Movements in present value of unfunded pension obligations Â
in the current year Â
Opening present value of unfunded pension obligations Â
246 Â
268 Â
Other adjustments Â
-
(12) Â
Current service costs Â
7
7
Interest costs Â
3
2
Actuarial (gains)/losses from changes in financial assumptions Â
(87) Â
(15) Â
Actuarial (gains)/losses arising from experience adjustments Â
(4) Â
(1) Â
Benefits paid Â
(4) Â
(3) Â
Closing present value of unfunded pension obligations Â
161 Â
246 Â
Amount recognised as staff expenses in the income statement Â
Current service costs Â
9
10 Â
Net interest expense Â
3
2
Total Â
12 Â
12 Â
Amount recognised in comprehensive income in respect Â
of defined benefit plans Â
Actuarial (gains)/losses Â
(96) Â
(16) Â
Total Â
(96) Â
(16) Â The expected contribution for 2023 for the defined benefit plans is DKK 13 million (2022: DKK 12 million). Â
The most recent actuarial valuations of the defined benefit liability were carried out by external Â
independent actuary agents at 31 December 2022. Â The ALK Group has entered into pension agreements and similar agreements with some of the ALK Â
Groupâs employees. Â
In respect of defined contribution plans, the ALK Group pays in fixed contributions to independent pension Â
funds etc. The contributions are recognised in the income statement during the period in which the Â
employee renders the related service. Payments due are recognised as a liability in the balance sheet. Â
In respect of defined benefit plans, the ALK Group is required to pay an agreed benefit in connection with Â
the retirement of the employees covered by the plan, e.g. in the form of a fixed amount or a percentage of Â
the salary at retirement. Â
For defined benefit plans, an annual actuarial assessment is made of the net present value of future Â
benefits to which the employees have earned the right through their past service for the ALK Group and Â
which will have to be paid under the plan. The Projected Unit Credit Method is applied to determine net Â
present value. Â
The net present value is calculated based on assumptions of the future development of salary, interest, Â
inflation, mortality and disability rates. Â
The net present value of pension liabilities is recognised in the balance sheet, after deduction of the Â
fair value of any assets attached to the plan, as either plan assets or pension liabilities, depending on Â
whether the net amount is an asset or a liability, as described below. Â
If the assumptions made with respect to discount factor, inflation, mortality and disability are changed, Â
or if there is a discrepancy between the expected and realised return on plan assets, actuarial gains Â
or losses occur. These gains and losses concerning previous financial years are recognised in other Â
comprehensive income. Â </ifrs-full:DisclosureOfEmployeeBenefitsExplanatory>
<ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory contextRef="ctx18" id="fact1989" xml:lang="en">2.4 Staff costs Â
2022 Â
2021 Â
Amounts in DKKm Â
Wages and salaries Â
1,584 Â
1,425 Â
Pensions, cf. note 3.7 Â
131 Â
115 Â
Other social security costs, etc. Â
207 Â
193 Â
Share-based payments, cf. note 5.1 Â
27 Â
35 Â
Total Â
1,949 Â
1,768 Â
Staff costs are allocated as follows: Â
Cost of sales Â
747 Â
682 Â
Research and development expenses Â
279 Â
254 Â
Sales and marketing expenses Â
673 Â
604 Â
Administrative expenses Â
187 Â
170 Â
Included in the cost of assets Â
63 Â
58 Â
Total Â
1,949 Â
1,768 Â
Remuneration to Management: Â
Remuneration to Board of Management:* Â
Salaries Â
19 Â
18 Â
Short-term incentive (cash bonus) Â
12 Â
12 Â
Pensions Â
1
1
Long-term incentives (share-based) based on expensed accounting value Â
7
11 Â
Total remuneration to Board of Management Â
39 Â
42 Â
Remuneration to Board of Directors Â
6
5
Total remuneration to Board of Management and Board of Directors Â
45 Â
47 Â
Employees Â
Average number (FTE) Â
2,609 Â
2,492 Â
Number year end (FTE) Â
2,680 Â
2,537 Â
*
The expensed costs include DKK 0 (2021: DKK 5 million) related to adjustment in the share options and performance share Â
units expected to vest. Â </ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory>
<ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory contextRef="ctx18" id="fact1990" xml:lang="en">2.4 Staff costs Â
2022 Â
2021 Â
Amounts in DKKm Â
Wages and salaries Â
1,584 Â
1,425 Â
Pensions, cf. note 3.7 Â
131 Â
115 Â
Other social security costs, etc. Â
207 Â
193 Â
Share-based payments, cf. note 5.1 Â
27 Â
35 Â
Total Â
1,949 Â
1,768 Â
Staff costs are allocated as follows: Â
Cost of sales Â
747 Â
682 Â
Research and development expenses Â
279 Â
254 Â
Sales and marketing expenses Â
673 Â
604 Â
Administrative expenses Â
187 Â
170 Â
Included in the cost of assets Â
63 Â
58 Â
Total Â
1,949 Â
1,768 Â
Remuneration to Management: Â
Remuneration to Board of Management:* Â
Salaries Â
19 Â
18 Â
Short-term incentive (cash bonus) Â
12 Â
12 Â
Pensions Â
1
1
Long-term incentives (share-based) based on expensed accounting value Â
7
11 Â
Total remuneration to Board of Management Â
39 Â
42 Â
Remuneration to Board of Directors Â
6
5
Total remuneration to Board of Management and Board of Directors Â
45 Â
47 Â
Employees Â
Average number (FTE) Â
2,609 Â
2,492 Â
Number year end (FTE) Â
2,680 Â
2,537 Â
*
The expensed costs include DKK 0 (2021: DKK 5 million) related to adjustment in the share options and performance share Â
units expected to vest. Â </ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory>
<ifrs-full:DisclosureOfRelatedPartyExplanatory contextRef="ctx18" id="fact1991" xml:lang="en">2.4 Staff costs Â
2022 Â
2021 Â
Amounts in DKKm Â
Wages and salaries Â
1,584 Â
1,425 Â
Pensions, cf. note 3.7 Â
131 Â
115 Â
Other social security costs, etc. Â
207 Â
193 Â
Share-based payments, cf. note 5.1 Â
27 Â
35 Â
Total Â
1,949 Â
1,768 Â
Staff costs are allocated as follows: Â
Cost of sales Â
747 Â
682 Â
Research and development expenses Â
279 Â
254 Â
Sales and marketing expenses Â
673 Â
604 Â
Administrative expenses Â
187 Â
170 Â
Included in the cost of assets Â
63 Â
58 Â
Total Â
1,949 Â
1,768 Â
Remuneration to Management: Â
Remuneration to Board of Management:* Â
Salaries Â
19 Â
18 Â
Short-term incentive (cash bonus) Â
12 Â
12 Â
Pensions Â
1
1
Long-term incentives (share-based) based on expensed accounting value Â
7
11 Â
Total remuneration to Board of Management Â
39 Â
42 Â
Remuneration to Board of Directors Â
6
5
Total remuneration to Board of Management and Board of Directors Â
45 Â
47 Â
Employees Â
Average number (FTE) Â
2,609 Â
2,492 Â
Number year end (FTE) Â
2,680 Â
2,537 Â
*
The expensed costs include DKK 0 (2021: DKK 5 million) related to adjustment in the share options and performance share Â
units expected to vest. Â The ALK Group has established long-term equity-based incentive plans linked to the creation of Â
shareholder value and the fulfilment of strategic goals. The plans are established for the members of Â
Board of Management and other key employees, reward long-term value creation and align to interests Â
of the shareholders. Â
The incentive plans consist of share options and performance share units that are considered Â
sufficiently covered by treasury shares. Â
Ordinary incentive plans Â
The share options entitle the holder to acquire one existing B share of DKK 0.5 nominal value in the Â
company per share option and the performance share units entitle the holder to receive one existing B Â
share per performance share unit free of charge. Â
The vesting period for both share options and performance share units is three years after grant. Â
Vesting is conditional upon certain targets being met and upon the participant not having resigned. Â
Target achievement is met upon fulfilment of strategic key performance indicators. In case performance Â
is below the threshold there will be no units vesting, and if above target, a multiplier is applied that can Â
increase the vesting by up to 100%. Â
The exercise of share options is possible in the trading windows following the release of annual and Â
interim reports conditional upon the share option holder not having resigned at the time of exercise. Â
For performance share units, the final transfer of ownership takes place at vesting three years after the Â
grant. Â
Special incentive plan 2018 Â
ALKâs special incentive plan was a one-time scheme designed to implement ALKâs growth strategy and Â
consisted of both share options and performance share units with a vesting period of three years. Â
The special incentive plan was adopted at the annual general meeting in March 2018 and vested in Â
March 2021. The grant value of the plan did not exceed 50% of the Executiveâs 2018 annual base salary  on the grant date. The plan was conditional upon strategic key performance indicators being attained. Â
Based on the financial results for 2020, the KPI achievements exceeded their targets increasing the Â
granted number of performance shares and share options by 100%. However, the overall payout of the Â
plan on the vesting date for the performance shares and on the exercise date for the share options can Â
never exceed a total value of 300% of the recipientâs 2018 annual base salary. Â
Share split Â
In March 2022, ALK-Abelló A/S completed a share split at a ratio of 1:20, each existing share of a Â
nominal value of DKK 10 was split into 20 new shares of a nominal value of DKK 0.50 each. As a result Â
of the share split, comparison figures for number of share options and performance share units, Â
share prices, exercise prices, and calculated fair value of granted share options have been adjusted Â
accordingly. Â
Expensed in the income statement: Â
2022 Â
2021 Â
Amounts in DKKm Â
Cost for the year regarding share-based payments is recognised as follows: Â
Cost of sales Â
4
5
Research and development expenses Â
7
7
Sales and marketing expenses Â
8
11 Â
Administrative expenses Â
8
12 Â
Financial expenses Â
-
1
Total Â
27 Â
36 Â
In 2022, the total cost of share-based payments did not include a financial expense due to the exercise Â
and cash settlement of share options (2021: DKK 1 million). The total cost included DKK 3 million related Â
to adjustment in the share options and performance share units expected to vest (2021: DKK 11 million). Â Specification of outstanding share options and performance share units: Â
Share options Â
Performance share units Â
Board of Â
Other key Â
Weighted average Â
Board of Â
Other key Â
Management Â
employees Â
Total Â
exercise price Â
Management Â
employees Â
Total Â
units Â
units Â
units Â
DKK Â
units Â
units Â
units Â
2022 Â
Outstanding at 1 January Â
1,285,800 Â
768,18 0 Â
2,053,980 Â
59 Â
130,220 Â
518,180 Â
648,400 Â
Additions Â
261,420 Â
2 27,4 20 Â
488,840 Â
108 Â
58,860 Â
244,980 Â
303,840 Â
Exercised/settled Â
(851,200) Â
(356,860) Â
(1,208,060) Â
48 Â
(92,720) Â
(328,540) Â
(421,260) Â
Cancellations Â
(105,900) Â
-
(105,900) Â
90 Â
(17, 3 4 0) Â
(10,700) Â
(28,040) Â
Outstanding at 31 December Â
590,120 Â
638,740 Â
1,228,860 Â
82 Â
79,020 Â
423,920 Â
502,940 Â
Total number of vested share options Â
5 07,18 0 Â
Average remaining life at year end (years) Â
2.0 Â
Exercise prices at year end (DKK) Â
41-141 Â
2021 Â
Outstanding at 1 January Â
1,795,160 Â
1,186,760 Â
2,981,920 Â
49 Â
268,880 Â
708,520 Â
97 7,4 0 0 Â
Additions Â
596,220 Â
509,880 Â
1,106,10 0 Â
56 Â
125,000 Â
215,980 Â
340,980 Â
Exercised/settled Â
(1,105, 58 0) Â
(926,460) Â
(2,032,040) Â
42 Â
(263,660) Â
(406,320) Â
(669,980) Â
Expired Â
-
(2,000) Â
(2,000) Â
40 Â
-
-
-
Outstanding at 31 December Â
1,285,800 Â
768,180 Â
2,053,980 Â
59 Â
130,220 Â
518,180 Â
648,400 Â
Total number of vested share options Â
984,940 Â
Average remaining life at year end (years) Â
2.1 Â
Exercise prices at year end (DKK) Â
40 -116 Â
The Board of Directors decided for four trading windows in 2022 to settle share options by shares and a total of 1,208,060 share options were exercised. Â
The Board of Directors decided for one trading window in 2021 to settle share options by cash and a total of 1,339,720 share options were exercised and total cash payments amounted to DKK 62 million. For three Â
trading windows the Board of Directors decided to settle share options by shares and a total of 692,320 share options were exercised. Â Outstanding share options and performance share units have the following characteristics: Â
Share options Â
Performance share units Â
Average Â
exercise Â
Exercise Â
price Â
Vested periode Â
Vested Â
Plan Â
Units Â
DKK Â
as per Â
(years) Â
Units Â
as per Â
2016 Plan Â
14,000 Â
56 Â
1 Mar 2019 Â
4
2018 Plan Â
22,660 Â
40 Â
1 Mar 2021 Â
2
2018 Plan â special plan* Â
238,920 Â
40 Â
1 Mar 2021 Â
2
2019 Plan Â
231,600 Â
57 Â
1 Mar 2022 Â
2
2020 Plan Â
340,520 Â
73 Â
1 Mar 2023 Â
2
213,140 Â
1 Mar 2023 Â
2021 Plan Â
200,500 Â
122 Â
1 Mar 2024 Â
2
150,120 Â
1 Mar 2024 Â
2022 Plan Â
180,660 Â
148 Â
1 Mar 2025 Â
2
139,680 Â
1 Mar 2025 Â
Outstanding at Â
31 December Â
1,228,860 Â
502,940 Â
* The payout upon exercise of the outstanding options cannot exceed DKK 5 million according to the conditions of the plan.  Fair value of share options and performance share units granted: Â
Share options Â
Fair value at grant date is measured in accordance with the Black & Scholes model for valuation of share Â
options, using the following assumptions: Â
2022 Â
2021 Â
Plan Â
Plan Â
Average share price (DKK) Â
141 Â
116 Â
Expected exercise price (DKK) Â
152 Â
125 Â
Expected volatility rate, based on the historical volatility Â
35% p.a. Â
36% p.a. Â
Expected option life Â
4 years Â
4 years Â
Expected dividend per share Â
-
-
Risk-free interest rate Â
0.14% p.a. -0.49% p.a. Â
Calculated fair value of granted share options (DKK) Â
33 29 Â
Performance share units Â
Performance share units have been granted at DKK 141 per share (2021: DKK 116 per share). Â Share-based incentive plans (equity-settled share-based payments), which comprise share options Â
and performance share units, are measured at the grant date at fair value and recognised in the income Â
statement under the respective functions over the vesting period and offset in equity. Â
The fair value of share options is determined using the Black & Scholes model. The exercise price is Â
equivalent to the average market price of the share for the five trading days immediately preceeding the Â
date of grant and is increased by 2.5% p.a. and reduced by dividends paid. The fair value of performance Â
share units is determined using the average share price (closing) five days after annual general meeting. Â
The ALK Group settles the equity-settled share-based incentive plans in shares. However, the share Â
option agreement entitles the ALK Group to demand cash settlement of the options. The ALK Group Â
recognises share options, in case of cash settlement, as other liabilities and adjusts to fair value as from Â
the time when the ALK Group has an obligation to settle in cash. The ALK Group recognises subsequent Â
adjustment to fair value in the income statement under financial income or financial expenses.  5.3 Related parties Â
Related party exercising control Â
ALK-Abelló A/S is controlled by the Lundbeck Foundation (Lundbeckfond Invest A/S) domiciled in Â
Copenhagen, Denmark, which holds 67.2% of the total number of votes in ALK Abelló A/S. The remaining Â
shares are widely held. ALK-Abelló A/S is parent company, and ultimate parent for the ALK Group is the Â
Lundbeck Foundation (Lundbeckfond Invest A/S, incorporated in Denmark). Â
Other related parties comprise ALKâs Board of Management and Board of Directors, companies in Â
which the majority shareholder exercises control, and such companiesâ subsidiaries, in this case e.g, Â
H. Lundbeck A/S and Falck A/S and their subsidiaries. Â
Transactions and balances Â
Transactions and balances with the parent companyâs majority shareholder: Â
â¢
ALK-Abelló A/S received DKK 52 million (2021: DKK 26 million) concerning outstanding company tax Â
from the Lundbeck Foundation (Lundbeckfond Invest A/S). The company tax relates to ALK-Abelló Â
A/S and ALK-Abelló Nordic A/S. Â
â¢
Receivables from group companies to ALK-Abelló A/S relate to outstanding company tax of DKK 18 Â
million (2021: DKK 12 million) covering ALK-Abelló A/S and ALK-Abelló Nordic A/S. Â
Transactions with key management personnel consist of remuneration and exercise of share options, Â
see notes 2.4 and 5.1 of the consolidated financial statements. Â
No other transactions have taken place during the year with Board of Directors, Board of Management, Â
major shareholders or other related parties. Â </ifrs-full:DisclosureOfRelatedPartyExplanatory>
<ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory contextRef="ctx18" id="fact1971" xml:lang="en">2.3 Depreciation, amortisation and impairment Â
Amounts in DKKm Â
2022 Â
2021 Â
Depreciation, amortisation and impairment allocation: Â
Cost of sales Â
163 Â
158 Â
Research and development expenses Â
9
8
Sales and marketing expenses Â
23 Â
36 Â
Administrative expenses Â
43 Â
40 Â
Total Â
238 Â
242 Â
Impairment amounts to DKK 2 million (2021: DKK 20 million), of which DKK 1 million relates to impairment Â
of tangible assets (2021: DKK 8 million) and DKK 1 million relates to intangible assets (2021: DKK 12 Â
million). Â
The impairment of tangible assets is related to impairment of production equipment of DKK 1 million with Â
no recoverable amount after impairment. The impairment is recognised as cost of sales. Â
The impairment of intangible assets is related to impairment of goodwill of DKK 1 million with no Â
recoverable amount after impairment. The impairment is associated with closing down activities in Â
Turkey and is recognised as sales and marketing expenses.  3.1 Intangible assets Â
Patents, Â
Other Â
trademarks Â
intangible Â
Goodwill Â
Software Â
and rights Â
assets* Â
Total Â
Amounts in DKKm Â
2022 Â
Cost beginning of year Â
479 Â
420 Â
236 Â
249 Â
1,384 Â
Currency adjustments Â
4
-
3
2
9
Additions Â
-
8
-
47 Â
55 Â
Disposals Â
(1) Â
(4) Â
(32) Â
-
(37) Â
Transfer to/from other groups Â
-
35 Â
-
(35) Â
-
Cost year end Â
482 Â
459 Â
207 Â
263 Â
1,411 Â
Amortisation and impairment Â
beginning of year Â
22 Â
332 Â
225 Â
183 Â
762 Â
Currency adjustments Â
-
1
3
1
5
Amortisation for the year Â
-
28 Â
6
4
38 Â
Disposals during the year Â
(1) Â
(4) Â
(32) Â
-
(37) Â
Impairment during the year, Â
cf. note 2.3 Â
1
-
-
-
1
Amortisation and Â
impairment year end Â
22 Â
357 Â
202 Â
188 Â
769 Â
Carrying amount year end Â
460 Â
102 Â
5
75 Â
642 Â
* Other intangible assets includes individual minor development projects running for short-term periods. Â Patents, Â
Other Â
trademarks Â
intangible Â
Goodwill Â
Software Â
and rights Â
assets* Â
Total Â
Amounts in DKKm Â
2021 Â
Cost beginning of year Â
475 Â
396 Â
231 Â
245 Â
1,347 Â
Currency adjustments Â
4
1
5
1
11 Â
Additions Â
-
8
1
36 Â
45 Â
Disposals Â
-
(17) Â
(1) Â
(1) Â
(19) Â
Transfer to/from other groups Â
-
32 Â
-
(32) Â
-
Cost year end Â
479 Â
420 Â
236 Â
249 Â
1,384 Â
Amortisation and impairment Â
beginning of year Â
23 Â
313 Â
214 Â
173 Â
723 Â
Currency adjustments Â
(1) Â
-
4
1
4
Amortisation for the year Â
-
25 Â
7
9
41 Â
Disposals during the year Â
-
(17) Â
(1) Â
-
(18) Â
Impairment during the year, Â
cf. note 2.3 Â
-
11 Â
1
-
12 Â
Amortisation and Â
impairment year end Â
22 Â
332 Â
225 Â
183 Â
762 Â
Carrying amount year end Â
457 Â
88 Â
11 Â
66 Â
622 Â Goodwill Â
Goodwill is related to acquisition of companies in previous years and has been subject to an impairment Â
test, which has been submitted to the Audit Committee for subsequent approval by the Board of Â
Directors. The impairment test performed in 2022 revealed no need for impairment of goodwill. Â
Impairment of goodwill in 2022 of DKK 1 million is associated with closing down activities in Turkey. Â
Goodwill has been tested at an aggregated level for ALK as one cash-generating unit. In the calculation Â
of the value in use of the cash-generating unit, future free net cash flow is estimated based on Board Â
of Directors-approved budget (2023) and financial forecasts (2024-2025) in line with the ALK Groupâs Â
strategy. Â
The budget and the forecast plans are based on specific future business initiatives for which the risks Â
relating to key parameters have been assessed and recognised in estimated future free cash flows. Â
The key parameters in the calculation of the value in use are revenue, earnings, working capital, Â
capital expenditure, discount rate and the preconditions for the terminal value. Estimates are based on Â
historical data and expectations on future changes in the markets and products. These expectations Â
are based on a number of assumptions including expected product launches, volume forecasts, price Â
information and profitability of both the ALK Groupâs business as well as geographical expansions. Â
For financial years after the three year forecast period (2023-2025), the cash flows in the most recent Â
period have been extrapolated adjusted for a growth factor of 1.5% (2021: 1.5%) during the terminal Â
period. The discount rate used is 9.6% pre-tax and 7.5% after tax (2021: 9% pre-tax and 7% after tax). Â
The calculated value in use shows that future earnings and cash flows fully support the carrying amount Â
of total net assets, including goodwill. Â Software, patents, trademarks and rights Â
Acquired intellectual property rights in the form of software, patents, trademarks, licenses, customer Â
base, and similar rights are measured at cost less accumulated amortisation and impairment. Â
The cost of software includes costs of installation and direct salaries. Â
Intangible assets with determinable useful lives are amortised on a straight-line basis over the expected Â
useful lives of the assets, typically not exceeding 10 years. If the actual useful life is shorter than either Â
the remaining life or the contract period, the asset is amortised over this shorter useful life. The carrying Â
amounts are reviewed at the balance sheet date to determine whether there are any indications of Â
impairment. If such indications are identified, the recoverable amount of the asset is calculated to Â
determine any need for an impairment write-down and, if so, the amount of the write-down. Â
Intangible assets with indeterminable useful lives are not amortised, but are tested for impairment at Â
least once a year. To the extent that the carrying amount of the assets exceeds the recoverable amount, Â
the assets are written down to this lower amount. Â
See note 3.2 for more information on assessment, recognition and reversal of impairment. Â Other intangible assets Â
Other intangible assets includes individual minor development projects running for short-term periods, Â
including software development projects, which fulfil the requirements in IFRS. The measurement and Â
impairment follow the same rules as described above for software, patents, trademarks, and rights. Â The assessment of whether goodwill is impaired requires a determination of the value in use of the cash- Â
generating unit. The determination of the value in use requires estimates of the expected future cash Â
flow of the cash-generating unit and a reasonable discount rate. Â
At 31 December 2022, the carrying amount of goodwill is DKK 460 million (2021: DKK 457 million).  3.2 Property, plant and equipment Â
Property, Â
Other Â
plant and Â
Land and Â
Plant and fixtures and equipment Â
buildings* Â
machinery equipment in progress Â
Total Â
Amounts in DKKm Â
2022 Â
Cost beginning of year Â
1,623 Â
1,028 Â
272 Â
325 Â
3,248 Â
Currency adjustments Â
35 Â
19 Â
2
5
61 Â
Additions Â
83 Â
23 Â
11 Â
260 Â
377 Â
Lease contract modifications Â
(17) Â
-
-
-
(17) Â
Disposals Â
(11) Â
(67) Â
(11) Â
-
(89) Â
Transfer to/from other groups Â
30 Â
45 Â
4
(79) Â
-
Cost year end Â
1,743 Â
1,048 Â
278 Â
511 Â
3,580 Â
Depreciation and impairment Â
beginning of year Â
665 Â
577 Â
192 Â
-
1,434 Â
Currency adjustments Â
7
9
1
-
17 Â
Depreciation for the year Â
91 Â
87 Â
20 Â
-
198 Â
Disposals during the year Â
(11) Â
(66) Â
(11) Â
-
(88) Â
Impairment during the year, Â
cf. note 2.3 Â
-
1
-
-
1
Depreciation and Â
impairment year end Â
752 Â
608 Â
202 Â
-
1,562 Â
Carrying amount year end Â
991 Â
440 Â
76 Â
511 Â
2,018 Â
of which financing costs Â
-
Value of land and buildings Â
subject to mortgages Â
176 Â
* Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended Â
and the estimated lease terms are 15 years. See also note 3.3. Â Property, Â
Other Â
plant and Â
Land and Â
Plant and fixtures and equipment Â
buildings* Â
machinery equipment in progress Â
Total Â
Amounts in DKKm Â
2021 Â
Cost beginning of year Â
1,493 Â
947 Â
256 Â
269 Â
2,965 Â
Currency adjustments Â
41 Â
21 Â
2
7
71 Â
Additions Â
46 Â
18 Â
12 Â
176 Â
252 Â
Disposals Â
(1) Â
(25) Â
(13) Â
(1) Â
(40) Â
Transfer to/from other groups Â
44 Â
67 Â
15 Â
(126) Â
-
Cost year end Â
1,623 Â
1,028 Â
272 Â
325 Â
3,248 Â
Depreciation and impairment Â
beginning of year Â
572 Â
505 Â
184 Â
-
1,261 Â
Currency adjustments Â
9
12 Â
2
-
23 Â
Depreciation for the year Â
85 Â
77 Â
19 Â
-
181 Â
Disposals during the year Â
(1) Â
(24) Â
(13) Â
(1) Â
(39) Â
Impairment during the year, Â
cf. note 2.3 Â
-
7
-
1
8
Depreciation and Â
impairment year end Â
665 Â
577 Â
192 Â
-
1,434 Â
Carrying amount year end Â
958 Â
451 Â
80 Â
325 Â
1,814 Â
of which financing costs Â
-
Value of land and buildings Â
subject to mortgages Â
186 Â
* Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended Â
and the estimated lease terms are 15 years. See also note 3.3. Â 3.3 Leases Â
Specification of right-of-use assets: Â
Other Â
Land and fixtures and Â
buildings*