Accelerating the global
energy transition with
green hydrogen
Green Hydrogen Systems A/S
Nordager 21, 6000 Kolding
CVR: 30548701
Annual report 2022
We make it possible to transform
water into green energy
Green Hydrogen Systems Annual report 2022 2
At a glance / Our business / Governance / Financial statements
H
H
O
O
O
O
O
2
O
2
H
2
H
2
H
H
H
Electrolysis Hydrogen
How our products
transform water
into green energy
Green hydrogen is produced through water electrolysis using renewable energy to split water into
hydrogen and oxygen with no CO2 emission in the process. Additionally, water electrolysis results in
a higher purity of hydrogen compared to other hydrogen production methods such as reforming and
gasification, which means that green hydrogen is generally widely applicable in various end-use sectors
i.e. transportation, shipping, industrial processes and household heating.
At a glance / Our business / Governance / Financial statements
Green Hydrogen Systems Annual report 2022 3
Table of content
At a glance
Chairman & CEO letter 6
Financial & Non-financial highlights 8
Financial review 2022 9
Key figures 11
Outlook 12
Our business
Green Hydrogen Systems’ role
in the transition to a sustainable
global energy system 14
Macro perspective
– a hydrogen push for the Future 15
A product portfolio and production
capacity for the future 16
Our products 17
Increasing the production capacity 18
Our strategy 19
Sustainability and
statement of social responsibility 21
Risk management 23
Governance
A two-tier governance structure 27
Shareholder information 29
Executive management 30
Board of directors 31
Financial statements
Management’s statement 34
Independent auditors report 35
Income statement 38
Balance sheet 39
Statement of changes in equity 41
Cash flow statement 42
Notes 43
Definition of terms 75
Financial and
Non-financial highlights
2022
Outlook
Our strategy Chairman & CEO letter
Read more on page 8
Read more on page 19 Read more on page 6
Read more on page 12
Green Hydrogen Systems Annual report 2022 4
At a glance / Our business / Governance / Financial statements
At a glance
Chairman & CEO letter
Financial & Non-financial highlights
Financial review 2022
Key figures
Outlook
In this section
At a glance / Our business / Governance / Financial statements
Green Hydrogen Systems Annual report 2022 5
Christian
Clausen
Chairman
Sebastian Koks
Andreassen
CEO
In 2022 we continued the execution of
our strategy to scale our product offering,
manufacturing capacity and organisational ca-
pability alongside a market potential for green
hydrogen that grew as ever before. Unexpect-
edly, however, we identified certain function
and component issues with our product that
needed correction and validation, which
we, during the year, succeeded in achieving.
Towards the end of the year, we recognised
revenue from the first customer deliveries.
The product corrections required intensive
efforts across our team and provided us with
valuable learnings leading to optimisation
of our current A-Series product offering
and accelerated the product maturity of the
X-Series prototype that is currently in its final
assembly phase.
We reached a revenue of DKK 10.4m, within
the updated guidance range provided in Au-
gust 2022 but well below the initial revenue
guidance.
In Q4 2022, we also inaugurated our
expanded production facility in Kolding,
Denmark. An expansion was initiated in the
summer of 2021, adding 13,500 m2 of new
production and administrative facilities to
our current premises to enable an annual
electrolyser manufacturing capacity of 400
MW when fully equipped. The facility expan-
sion has been executed ahead of schedule,
and new production lines for the A-Series
and X-Series will gradually ramp up during
2023 and 2024. To this end, we invested
DKK 335m in innovative machinery and
equipment in 2022.
The scaling of our production capacity and
technology is important to maintain our
position as a leading supplier of hydrogen
electrolysers. We have an ambition to be
able to produce and deliver gigawatt capacity
within a few years which entails that further
capacity and production automation needs to
be planned before the end of next year.
At the Board of Directors, new profiles and
competencies were added to support the
company and its executive management in the
strategic transformation from its R&D-fo-
cused origin to rapidly becoming a serial
producer of its leading pressurised alkaline
electrolysers.
A year with strategy execution to scale
product offering, manufacturing capacity
and organisational capabilities
CEO and Chairman letter
Green Hydrogen Systems Annual report 2022
At a glance / Our business / Governance / Financial statements
6
Christian Clausen, former CEO at Nordea
and current Chairman and Senior Advisor
for Blackrock Nordics, was elected the new
Chairman of the Board of Directors. Anders
Vedel, Chief Science Advisor and former CTO
at Vestas Wind Systems, Dr Armin Schnettler,
former Executive Vice President at Siemens
Energy, and Karen Dyrskjøt Boesen, CFO at
Sonnedix entered the Board of Directors. At
the same time, our former chairman Thyge
Boserup and Karen-Marie Katholm decided
to step down from the Board of Directors. In
connection with the changes to the Board of
Directors, a new Manufacturing & Technology
Committee was established to support the
technology development and industrialisation
of the production.
At the executive level, Ole Vesterbæk joined
our company as Chief Financial Officer,
bringing a vast experience from various Danish
companies with international operations. Ad-
ditionally, Stephan Kim joined as the new Chief
Technology Officer at the beginning of 2023,
bringing in science, technology, and industrial
experience from various international industry
groups.
Organisational capability remains key for us to
achieve our strategic targets, and supported by
our strong purpose and employer profile, we
attracted 125 new employees in 2022, mainly
within R&D, manufacturing, and sales.
The war in Ukraine has led to unprecedented
disruptions of what was previously deemed
stable and reliable supply chains and energy
resources supporting European industries.
The new realities revealed ingrained depen-
dencies in the European supply of energy, raw
materials, and critical components needed for
an uninterrupted industrial production and
operation.
Some of these challenges were overcome
through extraordinary and temporary policy
measures to curb the European energy de-
mand and import. Other challenges will linger
for longer.
The new realities dawning on Europe and all
Europeans have led to new political priorities
at the highest levels. European energy con-
sumers and industries are now top of mind as
Europe seeks to reduce dependency on fossil
energy imports through strategic initiatives
and actions.
Some of these European political actions
were previously promoted and prioritised as
the European Green Deal on the grounds of
climate concerns and carbon emission reduc-
tions. Such sustainable targets are now further
supported by strategic considerations related
to ensuring the security of energy supply
and, thereby, domestic industry capabilities,
deferring import dependencies, and building
resilience in supply chains.
The same set of priorities was the driving
force in the US Inflation Reduction Act (IRA).
A much-awaited US bill that puts the world’s
second-largest energy consumer at the global
forefront of national support for green hydro-
gen and renewable energy.
The IRA and the potential countermeasures
across the globe will have rippling effects on
the race to attract climate-related investments,
induce industry development and boost eco-
nomic activity.
The macro developments in 2022 led to an
even stronger political, industry and public
sentiment on the prospects for green hydro-
gen, which is the energy carrier most capable
of converting renewable power to green fuels
that can directly substitute fossil fuels and
products in the future.
Combining the outlook for green hydrogen
with our own learnings as a Danish manufac-
turer of reliable, sustainable and price compet-
itive green hydrogen electrolysers brings us to
a significantly strengthened position compared
to the same time last year.
Christian
Clausen,
Chairman
Sebastian Koks
Andreassen,
CEO
“We have during
the year succeeded
in achieving needed
correction and
validation of the
A-Series, and
towards the end
of the year, we
recognised revenue
from the first
customer deliveries”
Green Hydrogen Systems Annual report 2022 7
At a glance / Our business / Governance / Financial statements
0.2
GW
111
GW
351
GW
574
GW
2022 2030 2040 2050
Green Hydrogen Systems ended
2022 with deliveries of the A90
electrolyser module to two
customers in Norway and Sweden
At a glance
-10
Gross Profit
(DKK million)
10
Revenue
(DKK million)
-249
EBITDA
(DKK million)
-283
EBIT
(DKK million)
335
million invested in product development
and production capacity expansion
(DKK million)
276
Employees
Growing demand for electrolyser capacity
31%
order backlog growth
and customers in
11 countries
+400
MW production
capacity
The expected growing demand for green hydrogen will require a nearly exponential expansion in electrolyser
production capacity towards 2050. From a modest electrolysis capacity in 2022 at approximately 0.2 GW external
studies suggest an increase to 111 GW of electrolyser capacity in 2030 and further to 574 GW in 2050 to supply
the expected EU demand for green hydrogen.
Non-Financial Highlights
Financial Highlights
With these first deliveries, the core functionalities of the A90 electrolysers have been confirmed
which enables continued deliveries and order intake in 2023 and onwards. Green Hydrogen Sys-
tems has invested in organisational capabilities, research and product development in 2022 and
will continue to do so in order to be positioned to take a share of the future increasing demand for
electrolysis capacity.
Source: DNV – Hydrogen Forecast to 2050 (2022)
Green Hydrogen Systems Annual report 2022 8
At a glance / Our business / Governance / Financial statements
Financial review 2022
Revenue from customer contracts of DKK 10 million and an EBITDA
of -249 million. The firm order backlog grew by 31% to 13 MW of
electrolyser capacity.
Revenue
In 2022, total income was DKK 10.4 million with
DKK 9.7 million from product sales and DKK 0.7
million from other customer activities. Revenue
from customer contracts increased by DKK 5.3
million compared to 2021 due to the delivery and
revenue recognition of the first A90 electroly-
ser units to customers in Norway and Sweden.
Revenue from other activities consist of service
revenue related to the Mk0 A-Series electroly-
sers installed at customer sites in Denmark and
other European countries.
Gross profit
Gross profit was DKK -10 million compared to
-17 million in 2021. Gross profit was impacted
negatively by liquidated damages, performance
guarantees and other provisions related to
delayed projects in the order backlog. The un-
derlying profitability of deliveries in the backlog
remains healthy.
EBITDA
In 2022, EBITDA was DKK -249 million com-
pared to DKK -148 million in 2021. The negative
development in EBITDA was a direct conse-
quence of continued investments throughout
the organisation with a focus on the finalisation
of the A-Series as well as the development and
prototype build of the X-Series. In addition to
the R&D efforts organisational capabilities have
been strengthened within sales, health & safety
and production excellence which all are reflected
in the number of employees that have increased
from 188 to 276 in the last 12 months.
EBIT
In 2022, depreciation and amortisation amount-
ed to DKK 34 million compared to DKK 15
million in 2021. The increase is mainly due to the
amortisations of the A-Series technology and the
depreciation of production equipment and facil-
ities. The increase in depreciation and amortisa-
tion combined with the development in EBITDA
resulted in an EBIT of DKK -283 million in 2021
compared to DKK -163 million in 2021.
Net financials and net profit
In 2022, net financials were DKK -4.8 million
compared to DKK -335 million in 2021. Ex-
penses in 2022 were mainly related to interest
expenses whereas the 2021 net financials were
related to a non-cash fair value adjustment of a
convertible loan facility entered with A. P. Møller
Holding, Nordic Alpha Partners and Norlys.
Net profit was DKK -282 million in 2022 com-
pared to DKK -493 million in 2021.
Balance sheet
As of 31 December 2022, total assets were DKK
1,550 million compared to DKK 1,295 million as
of 31 December 2021. Compared to 2021 intan-
gible assets increased by DKK 115 million due
to development activities mainly related to the
A-Series and X-Series. Tangible assets increased
by DKK 152 million mainly due to the produc-
tion capacity expansion to an initial 400 MW
name-plate capacity. Furthermore, inventories
have increased by DKK 97 million to secure parts
and materials for assembly and delivery of the
current backlog.
Equity decreased by DKK 310 million compared
to 31 December 2021 mainly due to the net prof-
it of DKK -282 million.
DKK million 2022 2021 Change
Revenue from customer contracts 10 5 5
Gross profit (10) (17) 7
Gross profit margin (96%) (329%) 233pp
EBITDA (249) (148) (101)
Operation profit, EBIT (283) (163) (120)
Net financials (5) (335) 330
Ta x 6 6 0
Net profit for the period (282)
(493)
211
Profil & loss
Green Hydrogen Systems Annual report 2022 9
At a glance / Our business / Governance / Financial statements
Cash flow
In 2022, free cash flow excluding financial assets
was DKK -579 million compared to DKK -348
million in 2021. The negative free cash flow
development of DKK 231 million compared to
2021 was mainly due to negative development
in cash flow from operations of DKK 128 million
whereof DKK 57 million was related to changes
in net working capital. Furthermore, cash flow
from investing activities excluding financial assets
was DKK -296 compared to DKK -192 in 2021.
The negative development of DKK 102 million
was mainly related to the development activities
of the A-Series and the X-Series.
At the end of 2022, cash and cash equivalents
amounted to DKK 340 million including financial
assets. As part of Green Hydrogen Systems’ risk
policy, a placement of around DKK 750 million
was made in triple-A-rated Danish mortgage
bonds. The placement is recognised as a financial
asset in the balance sheet and stated as an
investing activity in the cash flow statement.
The financial assets are utilized from repur-
chase agreements (repo) and are recognised as
borrowings.
Order backlog
At the end of 2022, the order backlog had accu-
mulated to 13 MW based on customer orders
from Europe, Australia and South America. Com-
pared to the end of 2021, the backlog increased
by 31%.
The total backlog of 13 MW is targeted for
delivery in 2023. When delivered, the electrol-
ysers will be applied across different end-use
applications such as ammonia production and
other Power-to-X installations, transportation for
trucks, taxis and planes, and heating for private
homes. In addition, Green Hydrogen Systems
entered a 7 MW order in January 2023 which is
not part of the 13 MW backlog end of 2022. The
7 MW order is targeted for delivery in 2023 and
2024.
DKK million
2022
realised
2022
outlook
Revenue 10 1 to 19
Gross profit -10 -20 to -15
EBITDA -249 -255 to -235
EBIT -283 -290 to -270
CAPEX 335* 310 to 350
* Including raw materials purchased for prototypes and work in progress related
to the assembly of prototypes.
Income statement and investments
Green Hydrogen Systems Annual report 2022
At a glance / Our business / Governance / Financial statements
10
Key figures
Pro forma*
DKK '000 2022 2021 2020 2019 2018
Customer orders
Order backlog (MW) 13.2 9.9 4.9 n.a. n.a.
Profit/loss
Revenue 10,422 5,172 9,433 14,196 4,179
Operating profit, EBIT (282,967) (163,333) (72,689) (12,027) (4,142)
Net financials (4,849) (335,038) (2,859) (83) (16)
Net profit for the year (282,316) (492,871) (73,241) (10,736) (2,762)
Balance sheet
Balance sheet total 1.549,982 1.295.001 232,898 40,909 14,494
Equity 862,056 1.171.842 (4,077) 20,534 137
Cash flows
Operating activities (283,869) (155,394) (25,172) (21,682) (1,302)
Investing activities (377,290) (886,771) (31,625) (1,412) (3,821)
Hereof investments in property,
plant and equipment (167,049) (145,417) (20,647) (106) (147)
Financing activities 489,574 1,153,136 203,338 31,907 4,816
Net cash flow for the year (171,584) 110,971 146,541 8,813 (307)
Employees
Average number of employees 242 110 37 11 7
Financial key ratios
Solvency ratio (%) 56% 90% (2)% 50% 1%
Return on invested capital (%) (20)% (65)% (53)% (39)% (26)%
Return on equity (%) (28)% (84)% (890)% (104)% (520)%
Pro forma*
DKK '000 2022 2021 2020 2019 2018
Other performance measures
Gross profit (10,020) (17,017) (4,022) 222 678
Gross profit margin (96)% (329)% (43)% 2% 16%
EBITDA (249,174) (148,450) (69,617) (11,711) (3,864)
EBITDA margin (2391)% (2886)% (738)% (82)% (91)%
Intangible CAPEX (128,573) (46,889) (11,490) (1,745) (3,756)
Tangible CAPEX (167,049) (145,417) (20,647) (106) (147)
Total CAPEX (295,622) (192,306) (32,137) (1,851) (3,904)
Net working capital (43,694) 10,009 (22,945) 7,012 (4,399)
Free cash flow (661,158) (1,042,165) (56,797) (23,094) (5,123)
Cash and cash equivalent** 340,382 958,418 155,953 9,412 n.a.
FTE end of period 276 188 55 18 9
The financial ratios have been calculated in accordance with the recommendations of
the Association of Danish Financial Analysts.
* The company implemented IFRS on 1 January 2020.
** Including financial assets (listed bonds) that easily can be converted into cash with a
repurchase agreement (repo) less related borrowings.
Seen over a five-year period, the development of the Company
is described by the following financial highlights:
Green Hydrogen Systems Annual report 2022 11
At a glance / Our business / Governance / Financial statements
Revenue DKK 120 to 160 million
EBITDA DKK -240 to -210 million
CAPEX DKK 270 to 300 million
Outlook
In 2023, Green Hydrogen Systems expects to deliver rev-
enue of DKK 120 to 160 million with an EBITDA of DKK
-240 to -210 million.
Guidance 2023
Following successful acceptance tests and
deliveries of A90 electrolyser units in December
2022, further delivery in the first two months
of 2023 as well as continued order backlog
increase, Green Hydrogen Systems maintains
the guidance for 2023 as announced 23 January
2023 (company announcement 02/2023).
In 2023 Green Hydrogen Systems will continue
its efforts to scale its business with a focus on
industrialisation of its production facilities to
enable scalable serial production of the A-Series
and later the X-Series. Green Hydrogen Systems
continues to invest in R&D activities with a main
focus on the X-Series prototype, general product
efficiency measures and next generation elec-
trolyser platforms as technological competitive-
ness is a key element in securing the Company’s
future market position.
In 2023, revenue is expected in the range of
DKK 120 to 160 million. The revenue range is
substantiated by the current order backlog with
a potential increase from in-for-out orders that
may be signed and revenue recognised in 2023..
Due to costs related to delivery delays, the
recognised revenue will be reduced by DKK 15
million compared to the initial order value.
EBITDA for 2023 is expected in the range of
DKK -240 to -210 million. Gross profit will in-
crease and investments in the sales organisation
and in marketing efforts will continue as well as
focus on R&D activities related to the X-Series
product platform.
Investments are expected in the range of DKK
270 to 300 million. The investments relate to
production scale-up, X-Series production line,
X-Series prototype build, test facilities as well
as R&D activities focusing on the X-Series and
numerous initiatives to further increase the
system performance of the A-Series and X-Series
product platforms.
The revenue guidance range reflects the uncer-
tainty of the exact timing of the electrolysers
passing revenue recognition criteria within
the 2023 calendar year. Furthermore, factory
acceptance test (FAT), the exact delivery, site
acceptance test (SAT), revenue recognition and
EBITDA may be negatively impacted by e.g. the
current supply chain disruptions, increasing com-
ponent and raw material costs, general inflation,
delays in product assembly and pandemics.
The level of investments peaked in 2021 and
2022 due to expansion of the production facili-
ties, the concurrent acquisition of the land plot
and facilities and the advanced investments in
the development of the A-Series and X-Series
electrolyser platforms. In 2023-2025, the organ-
isational scaling is expected to stabilise.
Medium-term targets
The Company targets delivery and revenue rec-
ognition of around 150 MW electrolysis capacity
in 2025 creating visibility to revenue of around
DKK 1,000 million. The targets will among others
be based on assumptions related to utilisation of
the production capacity.
Update on potential capital increase
As communicated in the company announcement
02/2023 Green Hydrogen Systems targets a
capital increase during the first half of 2023.
The capital raise is targeting gross proceeds of
up to DKK 650 million and is contemplated to
be a rights issue with pre-emptive rights for the
existing shareholders. A prospectus is expected
to be published in the second quarter of 2023.
In connection with the Annual General Meeting
scheduled on April 18 2023, Green Hydrogen
Systems’ Board of Directors plans to seek
authorisation to increase the share capital with
pre-emptive rights for the existing shareholders.
The Company is in dialogue with several of its
current larger shareholders as well as potential
new shareholders regarding such potential
capital increase.
Guidance 2023
Green Hydrogen Systems Annual report 2022 12
At a glance / Our business / Governance / Financial statements
Our business
In this section
Green Hydrogen Systems’ role
in the transition to a global
energy system
Hydrogen in a macro perspective
A product portfolio and production
capacity for the future
Our strategy
Green Hydrogen Systems Annual report 2022 13
At a glance / Our business / Governance / Financial statements
Technology owner
Industry
feedstock
Refineries Steel
production
Grid stabilisation: through storage of hydrogen and
reconversion to energy through fuel cell technology
Power-to-X: Indirect use as the basis for
production of green fuels/e-fuels
Direct application in tranportation
and as a feedstock in the industry
H
2
H
2
H
2
Production of green
hydrogen through
electrolysis
Renewable
energy
production
Conversion via
synthesis
Conversion via
fuel cell
Storage and
transportation of
hydrogen
Electric
grid
Transport, aviation
and shipping
Fertilizer
(e-ammonia)
Replace
natural gas
Busses and
trucks
Smaller
ships
Green hydrogen has the capacity to play a
central role at the heart of a future sus-
tainable energy system covering all parts of
societies globally. Achieving this position
will further be central staying below the
two-degree global warming target limit and
achieving a zero-emission economy. As a
result, the demand for green hydrogen is
surging, requiring a significant scale-up of
electrolysis capacity for use in applications
such as:
1. Direct applications for decarbonization
of industry feedstock and heavy-duty
and long-range transportation.
2. Indirect applications through the
manufacture of e-fuels, e-ammonia
and low-carbon gas through synthesis
(Power-to-X) for use in transportation,
industry and building heat.
3. Energy storage and grid stabilization,
enabling sufficient scaling of renewable
energy to replace fossil fuels, by creating
the necessary buffer to increase the
resilience of a renewables-based energy
system. Further, hydrogen can enable ef-
ficient energy distribution across sectors
of the economy and across geographical
regions.
Green Hydrogen Systems’ role in the transition
to a sustainable global energy system
The potential role of green hydrogen
in the future energy system
Green Hydrogen Systems Annual report 2022 14
At a glance / Our business / Governance / Financial statements
Macro perspective
– a hydrogen push for the Future
A long list of developments throughout 2022
boosted investor confidence and market
prospects of the long-term growth trajectory of
green hydrogen. Some of the events unrolled
were patiently anticipated but surprising in
scale, while others of the year’s unfoldings were
an unpleasant reminder of the need for reliable
access to affordable energy resources to ensure
continued domestic growth and prosperity,
particularly in Europe.
For decades the overarching theme in interna-
tional trade has been globalisation. Resources
and goods should be produced anywhere in the
world based on comparative advantages, lead-
ing to the interdependence of complex global
trade flows and supply chains.
In 2022 global industries and markets driven
supply chains were challenged by new political
priorities. Russia’s invasion of Ukraine in late
February 2022 significantly altered the seamless
flow of metals and energy from exporters to im-
porters. Especially the raw materials import-de-
pendent European markets and industries,
sanctioning and shunning such shipments from
their largest suppliers, saw the drawbacks of
those Russian dependencies.
Sharp price spikes in oil, natural gas and elec-
tricity amid actual threats of supply disruption
forced swift reactions from policymakers.
Urgent measures have fed the ground for a
tidal turn away from global supply chain reliance
and towards an envisaged increase in domestic
production of critical components and resources
needed to safeguard national industries.
In this benign environment for the revival of do-
mestic industrial policies, numerous new nation-
al strategies for green hydrogen were presented
Including new hydrogen strategies in Denmark,
China, and India. The European RePowerEU plan
and the national strategies were supplemented
by regional targets for hydrogen production and
electrolyser capacity. Two such significant po-
litical declarations related to the North Sea and
the Baltic Sea were presented in May 2022 and
in August 2022 cementing Denmark’s position
as a prime location for converting abundant
renewable energy to green fuels for the future.
Across the Atlantic, the US took unprecedent-
ed strides in their commitment to reducing US
climate emissions and turning away from fossil
fuels and towards green fuels. The Inflation
Reduction Act provides tax incentives at a scale
that makes US green fuels and green ammonia,
produced from domestic renewable energy,
among the cheapest availables alternative to
global fossil-infused energy and energy prod-
ucts.
The turn of events and the sharp shift in the
global bearings for the center of the most
favorable conditions for climate investments
surprised even the most committed cli-
mate-conscious politicians. We expect that this
will continue well into 2023 to have rippling
effects on national and regional policy proposals
across the globe.
The near-term estimates for 2025 remain at
6GW for European electrolyser capacity needed
to meet green hydrogen demand and is driven
by an understanding of the continued short-
term capacity issues experienced by ramping-up
electrolyser manufacturing as well as a continued
need for the development of additional renew-
able energy sources.
The 2022 medium-term estimate for the need-
ed European electrolyser capacity is 110GW,
a near threefold increase from 40GW in 2021.
The 2022 long-term 2050 estimates reach
575GW, up from 225GW estimated in 2021.
Combining the full range of all green hydro-
gen-related events sums to a significant increase
in the expectations for especially European es-
timates of the hydrogen markets and the need
for electrolyser capacity compared to estimates
provided in 2021.
Green Hydrogen Systems Annual report 2022
At a glance / Our business / Governance / Financial statements
15
A product portfolio and production
capacity for the future
1
Competitive technology to work
with renewable energy sources
Green Hydrogen Systems has based its technol-
ogy on pressurized alkaline electrolysis, which
the Company believes is well-positioned to be a
competitive technology in the future electrolyser
market. The Company’s technology has several
competitive propositions including flexibility,
reliability and efficiency. The flexibility stem-
ming from the capability to switch dynamically
between load rates allows the technology to be
highly compatible with renewable and variable
energy sources required when producing green
hydrogen.
2
Modular and versatile solutions
suited for serial production
Green Hydrogen Systems’ standardised electrol-
ysers are based on a modular design, and each
module can be used as a stand-alone electrolyser.
Combined in clusters, the electrolysers can be
used in larger multi-MW applications like a cluster
of wind turbines. Given product standardization
and an industrial approach to manufacturing, the
products are further suited for a serial produc-
tion which enhances manufacturing scalability,
efficiency and predictability as well as quality as-
surance and work safety procedures. All electrol-
yser units are pre-tested at the factory in Kolding
before being shipped to customers, which allows
for rapid deployment at customer sites.
Based on a decade of research,
Green Hydrogen Systems has
developed a competitive
electrolysis platform
3
Significant potential to reduce
the cost of hydrogen
Green Hydrogen Systems estimates that its
levelised cost of hydrogen (LCOH) starting point
is competitive across technology regimes and
competitors. The Company has a clear cost-
out plan in place which includes initiatives to
reduce costs for product components, improve
procurement terms and optimize sub-system
designs to ease manufacturing at scale, enhance
durability and facilitate the use of cheaper com-
ponents. Furthermore, the Company works on
optimizing its technology, design and assembly
processes to increase the suitability for serial
production. Product standardization, serial pro-
duction and learning curve effects are expected
to enable further efficiency and cost competi-
tiveness following a scale-up of manufacturing.
Lastly, the Company is focused on R&D efforts
to achieve higher system energy efficiency.
While the Company cannot control the price
of electricity, it has the ability to influence the
efficiency of its electrolysers, i.e. the conversion
rate of electricity to green hydrogen.
16
At a glance / Our business / Governance / Financial statements
Green Hydrogen Systems Annual report 2022
The A-Series The X-Series
Transport Train Airplane Power-to-X Eco village
Our products
The A-Series and X-Series bring energy to:
The A-Series is currently the Company’s core
product platform. It is a complete, pressurised
alkaline electrolysis solution available in stan-
dardised and modular configurations for high
product efficiency, versatility and scalability. Be-
ing the result of +13 years of R&D, the A-Series
builds on a proven pressurised alkaline tech-
nology with robust operational performance.
During 2021 and 2022, the entire A-Series has
been upgraded from Mk0 to an optimised Mk1
version. The Mk1 version includes the A90 pro-
cess module, the balance of plant as well as the
HyProManagerTM software and control system
enabling automatic and remote operations.
Furthermore, the Company is in the process of
The X-Series is a pressurised alkaline electroly-
ser currently under development. One X-1200
electrolysis unit consists of 6 stacks, a balance
of plant and software and a control system,
which has a green hydrogen production capaci-
ty of 1200 Nm3 per hour and with an expected
power consumption of 6 MW. The X-1200 unit
will enable Green Hydrogen Systems to target
medium to large-scale projects, potentially also
targeting the GW scale over time. The power
consumption may be increased over time as the
X-Series platform is further advanced. The X-Se-
ries platform will be based on the stack tech-
nology of the A-Series, with increased electric
current density and number of electrodes. The
obtaining third-party design verification in ad-
dition to an improved safety concept according
to ISO 12100, EN ISO 13849 and IEC 61508,
which has already been obtained.
By the end of 2022, the first A-Series Mk1
electrolysers were delivered to customers in
Norway and Sweden which is continued in the
first months of 2023.
platform will further build on the Company’s
product principles of optimised modular design
entailing seamless system scaling and dynamic
operation. Furthermore, the X-Series will drive
costs down for its customers’ production of
hydrogen (LCOH) through increased system
efficiency, serial production and a number of
cost-out initiatives.
The first X-Series prototype is targeted for
delivery in March 2023 with installment in H1
2023. The commercial launch of the first fully
commercialised X-Series unit, including sales
effort intensified and binding offers submitted
to customers, targeted from late 2023.
Green Hydrogen Systems Annual report 2022 17
At a glance / Our business / Governance / Financial statements
+1,000
MW
75
MW
400
MW
The Company is currently expanding its facili-
ties and upscaling its manufacturing capacity to
accommodate expected future demand for green
hydrogen and electrolysis equipment. Currently,
the Company is in the process of commissioning
and equipping its expanded facility of around
18,000 m2 in total. Once completed and fully
upgraded it is expected to increase the total man-
ufacturing capacity to around 400 MW per year
when fully equipped. The expansion will comprise
investments in the production line for the A- and
X-Series as well as an increased warehousing area
and automation of certain parts of the manufac-
turing and assembly processes. Manufacturing
capacity could over time potentially reach more
than 1,000 MW per year in the current facilities
through continuous optimisation of manufac-
turing and assembly processes as well as a more
efficient supply chain integration.
A central aspect of the ongoing dialogue between
Green Hydrogen Systems and its customers is to
discuss future production capacity and capacity
planning. Based on these customer dialogues, the
short lead time from the decision to the opening
of subsequent capacity expansions allows for
timely capacity planning as demand for Green
Hydrogen Systems’ electrolysers continues to
grow. Potential new production facilities may as
well take place outside Denmark in pursuit of
lower costs, customer proximity or to satisfy local
content requirements.
Increasing the
production capacity
The demand for hydrogen
is expected to significantly
increase during the next
three decades
Initiated factory
expansion increasing
the production
capacity from:
Green Hydrogen Systems Annual report 2022 18
At a glance / Our business / Governance / Financial statements
Our strategy
Green Hydrogen Systems’ ambition is to advance and deploy a modular,
standardised and versatile electrolyser technology to drive and de velop
the green hy drogen market and meet the growing demand from customers
and other stak eholders.
Accelerate global growth
The acceleration of global growth will be an-
chored in three main areas:
Firstly, several countries have been selected
as short-term priorities for the Company to
address. Such focus markets include the Nordic
region, UK, Germany, Benelux, France, and Iberia,
along with selected high-potential markets such
as Australia. The Company is currently in the
process of planning the establishment of its local
sales platform. In addition, the Company aims to
Accelerate global growth
Maintain offering competitiveness
Scale-up across the value chain
To deliver on this ambition, Green Hydrogen
Systems will seek to establish the necessary
platform to accelerate growth, maintain the
competitiveness of its offerings and scale the
business across the value chain:
leverage partnerships with regional integrators
to cope with market-specific complexity across
its focus markets.
Secondly, a proactive sales effort has been
adapted to address the market demands of large
projects. Green Hydrogen Systems’ technology
and system design allow for a highly versatile
and application-agnostic electrolysis offering.
The Company is generally observing an industry
trend towards medium and large-scale projects
from 20 MW to +100 MW projects. As the
product portfolio is based on modular and scal-
able electrolyser units such as the A-Series and
the future X-Series, Green Hydrogen Systems
considers itself to be well-positioned to deliver to
such projects.
Finally, Green Hydrogen Systems will promote
and increase awareness of the Company, the
product portfolio and the green hydrogen indus-
try. In terms of direct sales-oriented awareness
among potential customers, the Company will
seek to increase pre-sales marketing efforts for
the upcoming X-Series, while keeping a certain
marketing focus on the A-Series. The Company
aims to leverage local and regional hydrogen
networks and trade groups, which provide
increased access to key opinion leaders in the
industry, complemented by conferences and
events with stakeholders across the industrial,
political, and regulatory levels. Furthermore, the
Company seeks to remain in continuous dialogue
with political and regulatory stakeholders in its
focus markets to promote the development of
favorable market conditions, while employing an
active media strategy to increase awareness with
the public. As Green Hydrogen Systems operates
in an ecosystem with numerous stakeholders, the
company seeks to employ a wide branding strat-
egy spanning several channels and activities and
acting as a thought leader in the green hydrogen
market.
Maintain offering competitiveness
On an industry level, LCOH is expected to
decline significantly over the coming years. It is a
development that is considered necessary to en-
able the cost parity pathway for green hydrogen
against fossil fuels and derived energy carriers.
Green Hydrogen Systems has an influence on
several central LCOH components and expects
to be able to drive cost reductions through
a combination of well-defined cost-out pro-
grammes, the realisation of serial production as
well as increased operational durability (uptime)
and energy efficiency.
It will also take a continuous high-priority R&D
effort to maintain Green Hydrogen Systems’
competitive edge. To meet the potential future
market demand for large-scale projects, a central
aspect of the strategy is the successful develop-
ment and launch of the X-Series. The first X-Se-
ries prototype is targeted for delivery in March
2023 with installment in H1 2023. The develop-
ment process is enabled by sharing and applying
relevant parts of the existing A-Series technology
in the development of the X-Series.
Moreover, the service and maintenance offering
is an important differentiator, a central element
in total project economics and a critical part of
the overall customer experience. As the install
base increases, Green Hydrogen Systems further
believes that revenue from service contracts will
constitute a noteworthy share of total revenues
and as such, strengthening the service and main-
tenance offering is a strategic priority.
To support the delivery of relevant service
solutions, the Company will seek to expand its
ability to leverage data extracted from installed
Green Hydrogen Systems Annual report 2022 19
At a glance / Our business / Governance / Financial statements
Our strategy (continued)
electrolysers and field technicians. This includes
establishing the necessary infrastructure to
retrieve, store and handle data, along with de-
veloping the principles for applying such data in
surveillance and diagnostics services. Applying a
more data-driven approach to its service offering
is expected to support the Company’s ability to
perform predictive maintenance service and re-
mote troubleshooting for its customers, conduct
targeted performance improvements across
an increasing install base and further provide
real-use data for optimisation of the Company’s
products.
Scale-up across the value chain
The Company is currently expanding its facilities
and upscaling its manufacturing capacity to ac-
commodate expected future order backlog and
pipeline. Once completed and fully upgraded,
the current facility expansion phase is expect-
ed to increase the Company’s total potential
manufacturing capacity to around 400 MW per
year. The expansion will comprise investments
in the production line for the A- and X-Series as
well as an increased warehousing area and au-
tomation. Further expansion phases could over
time increase manufacturing capacity to more
than 1,000 MW per year in the current facilities
through continuous optimisation of manufactur-
ing and assembly processes. Future expansion
may also take place outside Denmark in pursuit
of lower costs, customer proximity or to satisfy
local content requirements.
To meet the estimated growth in demand for
electrolysers and to support the scaling of
activities, Green Hydrogen Systems also seeks
to strengthen its organisational capabilities and
operational set-up. To scale the business glob-
ally at the pace required to meet the expected
future demand, the potential for entering into
partnerships within selected stakeholders in the
value chain – not considered strategically sensi-
tive to the business – is continuously evaluated.
Examples of such potential areas include the
development of regional partnerships with ded-
icated EPC-providers, local sales partnerships in
select markets where the Company has limited
presence and potential industrial partnerships
for processing of certain raw materials and man-
ufacturing of standard components.
To support the strategy and execution thereof,
the Company has in recent years strengthened
its organisational capabilities and operational
set-up to support the scaling of its activities.
Within sales efforts, the R&D efforts, the build-
out of manufacturing capacity and the admin-
istration of an increasingly global business, a
significant scale-up of the employee base is
considered necessary. The Company expects to
continue such organizational strengthening.
Green Hydrogen Systems Annual report 2022
At a glance / Our business / Governance / Financial statements
20
Our commitment
In 2023, Green Hydrogen Systems will continue
to increase its effort within sustainability. The
company will evolve its ESG reporting framework
and will as part of a medium-term business plan
establish and update ESG target figures. Green
Hydrogen Systems will also explore the possi-
bilities to become a signatory to the UN Global
Compact, reinforcing the Company’s commit-
it strives towards a diverse and inclusive work en-
vironment. The Company believes that a diverse
workforce steers and drives creativity, innova-
tion, decision-making and ultimately stronger
financial performance. The starting point is pro-
viding equal opportunity for everyone pursuing
a career in the Company. Furthermore, inclusion
and diversity are inherent parts of the Company’s
way of working, both internally and externally.
The focus on a diverse and inclusive working
environment is described in the Company’s Sus-
tainability Policy and Diversity & Inclusion policy.
By 31 December 2021, the underrepresented
gender was female and constituted 16% of the
workforce which by 31 December 2022 had
increased to 17%.
As the Company believes that diversity and inclu-
sion must be anchored at the management level
to ensure that the entire organisation ultimately
will reflect the Company’s values and principles
for diversity and inclusion the Board of Directors
has prepared a policy to increase the share of
the underrepresented gender at all management
levels of the Company including a focus on gen-
der pay equality. All members of the Executive
Management team and the senior management
team are required to prepare plans for ensuring
that proper diversity and inclusion measures are
duly implemented within the organisation of the
Company. For the purpose of creating an inclu-
sive and diversified organisation at management
level as well as at other levels of the Company’s
organisation, the Company continuously train
its employees in various aspects of diversity and
inclusion and how to practically adopt diversity
and inclusion principles into their day-to-day
operations.
The Board of Directors consists of eight men and
one woman. The Company aims to and has ini-
tiated a process to increase the share of the un-
derrepresented gender at the Board of Directors
to meet the Company’s target of a minimum of
40% female members of the Board of Directors
elected by the ordinary general meeting 2024.
In 2022, the target was not achieved since only
one female was elected by the General Assembly
while one female decided to step-down from the
Board of Directors.
Human rights
The Company observes and respects human
rights and has implemented global human rights
principles within the culture and day-to-day
operations of the Company. Furthermore, Green
Hydrogen Systems respects the right of employ-
ees to join or not to join labour organisations
276
Total number of employees
31 December 2022
17/83
Gender distribution
female/male %
8/92
Mgt gender distribution
female/male %
14.9
Voluntary employee
turnover %
7.4 LTIR
Out of 1,000,000
working hours
Sustainability and
statement of social
responsibility
With a vision to pioneer the field of green hydrogen to drive a sus-
tainable global energy transition, it is at the core of Green Hydrogen
Systems to contribute to curbing climate change. The commitment to
push for a more sustainable future happens with respect to respon-
sible and sustainable business behaviour as adopted in Green Hy-
drogen Systems’ sustainability policy in accordance with the Danish
Recommendations on Corporate Governance.
ment to the ten principles of human rights, labour
rights, anti-corruption, and the environment,
which serve as the foundation of the Company’s
work with sustainability.
Diversity
Green Hydrogen Systems considers tolerance
and respect to be fundamental values necessary
to achieve the best working environment and
At a glance / Our business / Governance / Financial statements
Green Hydrogen Systems Annual report 2022 21
Sustainability (continued)
and to engage in collective bargaining. Green
Hydrogen Systems’ position on human rights is
governed by the sustainability policy which cov-
ers sustainability principles, including principles
on corporate social responsibility.
Green Hydrogen Systems recognises the sig-
nificance of maintaining and promoting human
rights and has incorporated measures as part
of the company’s supplier code of conduct for
preventing any use of child labour, forced labours
etc. as part of the Company’s business. Internal
employees as well as suppliers are made aware of
Green Hydrogen Systems standpoint on human
rights. In 2022, the business operation has not
given rise to any reports on human rights misbe-
haviour directly to management or through the
company’ whistle-blower function.
Governance
As described in the Corporate Governance section,
Green Hydrogen Systems has a strong governance
setup aligned to the principles in the “Recommen-
dations on Corporate Governance”. To further
strengthen governance, Green Hydrogen Systems
has established a number of policies that have
been implemented in daily business behaviour.
Data ethics
When Green Hydrogen Systems processes data
or when designing, purchasing or implementing
new technologies, the company’s data ethics
policy must be assessed and included in the
considerations. The data ethics policy outlines
ethical, legal and security measures to consider
when processing data. As part of the onboarding
process of new employees, Green Hydrogen Sys-
tems’ general IT code of conduct and data ethics
policy are presented.
Green Hydrogen System does not pass on or sell
data to any third party. The data ethics policy is
updated annually and is approved by the Board
of Directors.
Whistle-blower
To reinforce direct, daily communication in the
workplace regarding errors and unsatisfactory
conditions, Green Hydrogen Systems has es-
tablished a whistle-blower scheme. The scheme
creates a secure framework for employees and
external parties to speak up about problemat-
ic issues at the Company while being able to
maintain anonymity. The whistle-blower scheme
is intended to contribute to the detection and, as
far as possible, the prevention of serious errors
and misconduct.
Supplier management and anti-corruption
Green Hydrogen Systems’ focus on sustainabil-
ity and societal issues is also reflected in the
Company’s supplier code of conduct. Besides
human rights as described above, the supplier
code of conduct outlines requirements related to
business ethics, anti-corruption, environmental
impact and safety that all suppliers must adhere
to. Green Hydrogen Systems reserves the right
to conduct inspections to ensure compliance
with the Code of Conduct. Inspections can be
carried out by independent third parties and may
be unannounced. Furthermore, to ensure align-
ment in the supplier value chain, suppliers must
be able to document that the requirements in the
supplier code of conduct have been forwarded
and implemented at any sub-supplier. In 2022,
the business operation has not given rise to any
reports on corruption or other supplier-related
misbehaviour directly to management or through
the company’s whistle-blower function.
Environmental awareness
Technology choice
Green Hydrogen Systems bases its electrol-
ysis systems on the low-carbon technology
pressurised alkaline, which is independent of
scarce and emission-intensive resources such
as iridium and platinum. Instead, it uses nickel as
catalysts, which is widely available and less than
1,000 times as emission intensive as iridium and
platinum; both metals which are used in the PEM
electrolysis technology.
Emissions
Green Hydrogen Systems is aware of the envi-
ronmental impact when producing, assembling
and testing electrolyser units. To partly offset the
impact, the current factory roof is fitted with solar
panels. The expansion of the production facilities
to 400 MW will enable further space for solar
panel installations. Additional electricity is sourced
through ‘guarantee of origin’ securing a high
degree of renewable energy in the total energy
consumption. In 2022, the factory acceptance
test (FAT) was designed to partly operate in off-
peak timeslot to utilise the available energy most
efficiently.
In 2022, Green Hydrogen Systems installed addi-
tional charging stations to encourage employees
to choose electric vehicles as their main trans-
port solution. Furthermore, a green car policy has
been issued also to encourage certain employees
to choose less CO
2
emitting vehicles for their
main transport solution.
Environmental certification
Green Hydrogen Systems holds certification in
ISO 14001 setting a framework to manage envi-
ronmental aspects, fulfil compliance obligations,
and address environmental risks and opportuni-
ties. Based on the implementation of ISO 14001,
Green Hydrogen Systems works with improving
resource and waste efficiency benefiting the
environment and the Company’s cost base.
Our people
Health and safety
The health and safety of Green Hydrogen
Systems’ employees and other stakeholders is
the uncompromising priority number one as the
working climate, personal and professional devel-
opment as wells as a working environment with
high safety awareness is key to attracting and
retaining employees. Green Hydrogen Systems
continuously promotes an organisational culture
with the safety mindset of “take care” in all pro-
duction processes to maintain vigilance and take
action to preserve a safe working environment.
Green Hydrogen Systems monitors safety daily,
and registers and handles possible incidents on-
or off-site to track and improve health and safety
aspects. As an important step in maturing and
formalising its systems’ the company holds certi-
fication for occupational health and safety man-
agement through ISO 45001. The focus on a safe
working environment is present at all levels of the
organisation. In 2022, the employees reported
on observations, near-miss and accidents and any
registration of incidents is a topic for manage-
ment attention on a daily and weekly basis.
For more information on risks related to employ-
ee related matter, please refer to “Talent attrac-
tion & retention” in the Risk management section.
Green Hydrogen Systems Annual report 2022 22
At a glance / Our business / Governance / Financial statements
1
2
3
4
5
Probability
Consequence
Our 5 key risks
Technology development
1
IT security
2
Talent attraction & retention
3
Safety
4
Supply Chain
5
An active approach to risk management supports
Green Hydrogen Systems in achieving its strategic
and operational objectives.
Risk management is seen as an integrated part of
the daily activities and execution of the strategy.
Green Hydrogen Systems continuously maintains
risk management policies to manage and mitigate
risks associated with its business and operations.
The overall responsibility for overseeing risks
and for maintaining a robust risk management
and internal control system is anchored by the
Board of Directors and the Audit Committee.
The Executive Management Group oversees the
day-to-day risk management. Selected key risks
for Green Hydrogen Systems are presented be-
low. Additional risks and uncertainties, including
risks that are not known to Green Hydrogen Sys-
tems at present or that its management currently
deems immaterial, may arise or become material
in the future, which might have a negative finan-
cial or reputational impact on the company.
Risk management
It is an essential part of good
governance and helps to:
drive a culture where everyone
takes responsibility for risk
empower the employees to
make informed decisions
enhance performance and
organisational resilience
Green Hydrogen Systems Annual report 2022 23
At a glance / Our business / Governance / Financial statements
Description: Green Hydrogen Systems’ future
primary revenue-generating product platform
– the X-Series – is still under development and
the current A-Series and future X-Series elec-
trolyser platforms have not been in operation
for the full duration of their expected lifetime.
The gradual upgrade of the A-Series electrolyser
platform is expected to strengthen the ability
to deliver to medium and large-scale projects in
the near term. Similarly, the X-Series is intended
to be used for large-scale green hydrogen proj-
ects requiring significant electrolyser capacity
and is expected to become a key revenue driver
for the Company in the future.
Risk: Successful and timely development
and launch of the electrolyser platforms are
important factors for Green Hydrogen Systems’
continued capacity to participate in large-scale
green hydrogen projects and in general for
future business and financial performance. Ac-
cordingly, if Green Hydrogen Systems does not
meet the planned development/launch of the
electrolyser platforms, it may have a significant
impact on the Company’s ability to reach its
revenue and profitability targets.
Mitigation:
Increased and advanced investments in
future product offerings to support timely
market launch
Engagement in industry and customer
partnerships to support the development of
relevant product offerings
Description: Green Hydrogen Systems is de-
pendent on reliable and efficient IT systems in all
aspects of its business operations.
Risk: IT systems may encounter loss of oper-
ational stability or loss of intellectual property
due to security vulnerabilities like unauthorised
access, malware or viruses, or similar threats. If
one or more of such events occur, it could result
in financial loss or loss of confidential company
or customer data and Green Hydrogen Systems
may be required to spend significant resources
on modifying its protective measures or on inves-
tigating issues and undertaking remedial action.
Any of the above might have a material adverse
effect on Green Hydrogen Systems´ business,
financial results and reputation.
Mitigation:
IT Security awareness training combined
with user and endpoint protection for all
employees in Green Hydrogen Systems
with system access
Resilience, retention and recovery initiatives
like high availability, firewalls, multilevel off-
site backup and timely patch management
Business Continuity Plan implementation
setting the direction for action if any IT
security breaches occur
24/7 monitoring of IT system landscape
for current and new threats to pro-actively
mitigate vulnerabilities
Description: Green Hydrogen Systems actively
pursues an ambitious growth strategy. To
support such growth, the company scales and
professionalises the organisation, including
streamlining and altering internal and administra-
tive processes as well as increasing the number
of employees. This is exemplified by the employ-
ee count of 18 as of 31 December 2019 having
increased to 276 as of 31 December 2022.
Risk: The high-paced expansion of Green Hy-
drogen Systems’ organisation may place substan-
tial demands on management, technical, financial
and other organisational resources which may
defocus other business objectives. Furthermore,
organisational scaling requires continued access
to the recruitment of talented employees which
on a continues basis may be challenged in a new
industry segment such as the green hydrogen
industry where labour market bottleneck may
occur.
Mitigation:
Recruit both nationally and internationally
creating an environment where all whatever
their background, can reach their full desired
potential
Close cooperation with educational
institutions to attract graduates and
students supporting the talent pipeline
Staying an attractive employer of choice,
developing employees and providing a safe
and efficient working environment, while
supporting a healthy work/life balance
Technology development IT security Talent attraction & retention
Green Hydrogen Systems Annual report 2022
At a glance / Our business / Governance / Financial statements
24
Description: As part of the equipment research,
development, assembling, testing, installation
and service, the employees in Green Hydro-
gen Systems are exposed to various risks. The
production process exposes the employees to
alkaline and corrosive substances as well as pres-
surised gases and high temperatures. In addition,
Green Hydrogen Systems products may - due
to defects, mishandling or for other reasons -
potentially inflict possible injuries to persons
and/or property. This is further aggravated by
the fact that the company’s equipment process-
es hydrogen, which is highly flammable under
certain conditions.
Risk: Any major incident involving hydrogen with
possible injuries to persons and/or property, may
result in governmental authorities and investors
becoming reluctant to invest in green hydro-
gen which could have a general adverse effect
on the green hydrogen market. Furthermore,
incidents related to the production process of
the electrolysers causing injuries to employees or
contractors may have a negative effect on Green
Hydrogen Systems’ reputation. The occurrence
of any of the above incidents could have a materi-
al adverse effect on the general development and
financial position of the company.
Mitigation:
Safety is deeply rooted in the culture and is
a key theme in the hiring and onboarding of
new employees
The electrolysers are tested at the factory
according to applicable governmental safety
measures
Automated software will shut down the
electrolysers in the event of any hydrogen-
related irregularities
Description: To meet the expected increase in
future demand for electrolysers, the Company is
undertaking an ongoing scale-up of its assembly
and production. To support this, the Company
is both ramping up general production capacity
as well as continuously seeking to improve its
supply chain management. The Company has an
assembly-focused production setup, meaning that
it generally obtains various electrolyser compo-
nents from its suppliers and assembles them in
its production facilities. Accordingly, scaling the
Company’s production is exposed to supply chain
disruptions causing shortages and fluctuating
prices of raw materials and components on which
the Company is dependent.
Risk: From a supply chain perspective, the Com-
pany is dependent on the ability of its suppliers
to consistently deliver electrolyser components
as well as other materials used in the Compa-
ny’s treatment and processing of electrolyser
components. Failure to ensure the delivery of
components and materials required for the Com-
pany’s assembly and production may impair the
Company’s ability to scale its production.
Mitigation:
Most components in the electrolysers are
standard or manufactured by standard pro-
cesses, and hence widely accessible
A dual sourcing strategy is in place by either
actively buying from several suppliers or
benchmarking and ensuring competition
between multiple suppliers
For long-lead items, frame agreements are in
place based on the manufacturing and deliv-
ery plan
Safety Supply chain
Green Hydrogen Systems Annual report 2022 25
At a glance / Our business / Governance / Financial statements
Green Hy drogen Systems Annua l report 2022 26
Governance
Corporate governance
Shareholder information
Executive Management
& Board of Directors
In this section
At a glance / Our business / Governance / Financial statements
Green Hydrogen Systems Annual report 2022 26
A two-tier governance structure
The shareholders of Green Hydrogen Systems
have the ultimate authority over the company
and can exercise their right to make decisions
at the annual general meetings. At the general
meetings, the shareholders vote to approve the
annual report and the remuneration report for
the past year and any proposed revisions to
Green Hydrogen Systems’ Articles of Asso-
ciation. The shareholders also elect board
members and an independent auditor. Board
members elected by the shareholders at the an-
nual general meeting serve for one-year terms
and are eligible for re-election.
Green Hydrogen Systems has a two-tier gov-
ernance structure, consisting of the Board of
Directors and the Executive Management. The
two bodies are separate and have no members in
common. The governance structure of the Board
of Directors and the Executive Management
is set out in the internal Rules of Procedure of
the Board of Directors. The Board of Directors
determines the overall strategy and takes on the
role of sounding board to the Executive Man-
agement whereas the Executive Management
undertakes the operational management of the
company.
The Executive Management has established an
Executive Management Group consisting of
the Chief Executive Officer, the Chief Financial
Officer and four C-level officers covering the
company’s commercial, operational, R&D and
HR-related activities.
As of 31 December 2022, the Board of Directors
consisted of nine shareholder-elected members.
No employee-elected board members have been
appointed as the Company is not subject to sec-
tion 140 of the Danish Companies Act.
Details on the individual board members are
available in the section ´Executive Management
and Board of Directors´.
In accordance with the Rules of Procedure
of Green Hydrogen Systems, the Board of
Directors has a Chairmanship consisting of two
members – the Chair and the Vice Chair. The
Chairmanship is to assist the Board of Directors
in planning meetings and engagements with the
Company’s Executive Management, while report-
ing back to the Board of Directors.
Board Member Board Meetings
Audit
Commitee
Remuneration &
Nomination Committee
Manufacturing & Technology
Committee
Ordinary Extraordinary
Thyge Boserup*
Troels Øberg
Christian Clausen
Lars Valsøe Bertelsen
Thomas Thune Andersen
Karen-Marie Katholm*
Jakob Fuhr Hansen
Simon Krogsgaard Ibsen
Dr. Armin Schnettler**
Anders Vedel**
Karen Dyrskjøt Boesen**
For the purpose of increasing efficiency and
improving the overall quality of the work of the
Board of Directors, an Audit Committee, a Remu-
neration & Nomination Committee and an ad-hoc
Manufacturing & Technology Committee have
been established. The Audit Committee assists
the Board of Directors in overseeing aspects
relating to accounting, auditing, risks, internal
Meeting attendance
*Member of the Board of Directors until 18 July 2022
**Member of the Board of Directors from 18 July 2022
Attending Not attending N/A
Green Hydrogen Systems Annual report 2022 27
At a glance / Our business / Governance / Financial statements
controls and financial, environmental, social and
governance data. The Remuneration & Nomina-
tion Committee assists the Board of Directors
in nominating and remunerating candidates
for the Board of Directors and the Executive
Management including guidelines on incentive
pay for the Executive Management. The ad-hoc
Manufacturing & Technology Committee assists
the Board of Directors in reviewing and assess-
ing the evolving energy landscape, the challenges
encountered and foreseen related to scaling
and industrialising Green Hydrogen Systems’
technology.
For details on the Board of Directors’ authority
to increase the share capital or to acquire trea-
sury shares please refer to item 5 of the Articles
of Association available at investor.greenhydro-
gen.dk
Board evaluation
The Board of Directors conducts an annual
self-assessment and review of the Board of
Directors’ performance, achievements and
competencies, including an evaluation of the in-
dividual board member’s performance and of the
collaboration with the Executive Management.
The Remuneration & Nomination Committee
has the overall responsibility for conducting the
annual self-assessment of the Board of Direc-
tors. Every third year, the self-assessment and
review are facilitated by professional external
consultants, who interview all members of the
Board of Directors. The last time the self-as-
sessment was facilitated by external consultants
was in September 2021. The annual self-assess-
ment in 2022, included an assessment of strat-
egy development and implementation, cooper-
ation between the Board of Directors and the
Executive Management, Board composition and
dynamics, preparation and accomplishment of
board meetings, risk awareness and evaluation
of the Chairman. Overall, the self-assessment
revealed good performance by the Board of
Directors as well as good cooperation between
the Board of Directors and the Executive Man-
agement.
The Board of Directors found that the initiatives
taken during 2022 to further increase the Board
of Directors’ focus on developing and imple-
menting the strategy and the monitoring of the
performance on relevant quantitative indicators,
linked to the strategy, had strengthened the
overall strategy.
Diversity
Green Hydrogen Systems believes that diversity
and inclusion must be anchored at the manage-
ment level to ensure that the entire organisation
will ultimately reflect the values and principles
of diversity and inclusion. Accordingly, the Board
of Directors and the Executive Management
are continuously evaluating the composition
of the management bodies of Green Hydrogen
Systems when assessing how new skills and
qualifications can be brought into play. Pursuant
to section139 (c) of the Danish Companies Act,
the Board of Directors has prepared target fig-
ures for increasing the share of the underrepre-
sented gender and prepared a policy to increase
the share of the underrepresented gender at
all management levels of the Company. Green
Hydrogen Systems’ Diversity Policy and Policy &
Target Figures for the underrepresented gender
are available at investor.greenhydrogen.dk
Remuneration
The remuneration of the Board of Directors
and the Executive Management is designed to
incentivise the achievement of Green Hydrogen
Systems’ strategic long-term and short-term tar-
gets for the benefit of the company’s sharehold-
ers. Furthermore, the Remuneration Policy of
Green Hydrogen Systems is designed to provide
a clear and transparent remuneration framework
through which shareholders can assess the basis
on which the Board of Directors and Executive
Management are compensated.
The members of the Board of Directors are
offered a fixed annual base fee. The Chairperson
and the Vice Chairperson as well as the members
of the Audit Committee, the Remuneration &
Nomination Committee and the ad-hoc Man-
ufacturing & Technology Committee receive a
supplementary fee. The members of the Board
of Directors do not participate in any incentive
schemes – however, part of the fixed fee may be
paid in ordinary shares.
The remuneration of the members of the Ex-
ecutive Management consists of a fixed annual
salary and a variable remuneration package,
which is comprised of a short-term incentive
programme and a long-term incentive pro-
gramme. The fixed salary serves the purpose of
attracting and retaining high-performing mem-
bers of the Executive Management with the
ability to implement the Company’s strategy and
deliver long-term shareholder value. Further-
more, the fixed salary enables the members of
the Executive Management to make decisions
with a long-term perspective in mind without
undue consideration for short or long-term
incentives. The long-term incentive is designed
to align the interests of management with those
of the shareholders by being share-based and
including targets that are linked to the achieve-
ment of long-term goals.
Green Hydrogen Systems’ remuneration policy is
reviewed annually by the Remuneration & Nom-
ination Committee and the Board of Directors.
The remuneration policy and the remuneration
report for 2022 are available at
investor.greenhydrogen.dk
Recommendations on Corporate
Governance
As a listed company on Nasdaq Copenhagen,
Green Hydrogen Systems is subject to the Dan-
ish recommendations on corporate governance.
In accordance with section 107b of the Danish
Financial Statements Act, Green Hydrogen
Systems publishes its Corporate Governance
Statement for the financial year 2022 at
investor.greenhydrogen.dk
A two-tier governance structure (continued)
Green Hydrogen Systems Annual report 2022 28
At a glance / Our business / Governance / Financial statements
10%
30%
10%
5%
35%
2%
8%
0
10
20
30
40
50
60
iShares Global Clean Energ y Closing price (rebased)
Mid-CA P Closing price (rebased)
GREENH Closing price
Jan Fe b Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Shareholder information
Ownership structure
(approximate figures)
Share price development
Share price development
The Green Hydrogen Systems share closed at
DKK 9.75 per share on 30 December 2022
with a total market capitalisation of DKK 811
million. From 1 January 2022 to 30 Decem-
ber 2022, the share price has decreased by
71.6%. In comparison, the global share index
for renewables iShare Global Clean Energy
increased by 4.6%, while the Nasdaq Copenha-
gen MidCap index, of which Green Hydrogen
Systems is a component, decreased by 11.7%
during the same period.
The daily average trading volume of the Green
Hydrogen Systems share in 2022 was 79,789
shares, corresponding to an average of DKK
1.6 million per day.
Share capital and ownership structure
Green Hydrogen Systems’ share capital amounts
to 83,165,961 shares each with a nominal
value of DKK 1. Green Hydrogen Systems has
one single share class with no restrictions on
ownership or voting rights. As of 31 December
2022, Green Hydrogen Systems had +18,000
registered shareholders. The diagram ‘Owner-
ship structure’ shows the composition of the
shareholders highlighting geographical presence
and holdings above 5% of the share capital.
Communication with shareholders
Green Hydrogen Systems aims to openly
communicate with investors, analysts and other
IR stakeholders ensuring that they can obtain
an updated understanding of the Company’s
financial and strategic performance as well as
Share information
Stock exchange: Nasdaq CPH A/S
Index: Mid Cap
Share capital (DKK): 83,165,961
Number of shares: 83,165,961
Nominal value (DKK): 1
ISIN code: DK0061540341
Trading symbol: GREENH
Share price at year-end (DKK): 9.75
Treasury shares: n/a
Financial calendar 2023
Annual General Meeting: 18 April 2023
Q1 2023 trading statement: 28 April 2023
Q2 2023 interim report: 22 August 2023
Q3 2023 trading statement: 1 November 2023
the opportunities and risks. Green Hydrogen
Systems engages in investor dialogue by means
of conference calls and investor meetings. The
Company also participates in conferences and
meetings arranged for communicating with
institutional and private investors. Conference
calls arranged by the Company will be set up for
discussing the quarterly trading statements, H1
interim report and annual financial performance
and material events relating to the Company’s
business. Participants may ask questions to The
Executive Management at the end of such con-
ference calls. Presentations from such events
will be made available at the Company’s website
afterwards.
Nordic Alpha Partners
APMH Invest A/S
Norlys Holding A/S
Arbejdsmarkedets Tillægspension
Rest of Denmark
Rest of World
Not registered
Green Hydrogen Systems Annual report 2022 29
At a glance / Our business / Governance / Financial statements
Troels
Hornsved
COO
Danish, born 1974
With Green Hydrogen
Systems as COO since 2020
Previous experience:
Universal Robots (VP, Supply
Chain & Operations), Vestas
(Senior Manager, Production)
Sebastian Koks
Andreassen
CEO, member of the
Ex ecutive Management
Danish, born 1973
With Green Hydrogen
Systems since 2020
Previous experience:
INEOS (CEO Oil & Gas
Scandinavia), Ørsted (CFO Oil
& Gas), Copenhagen Airports
Ole
V esterbæk
CFO, member of the
Ex ecutive Management
Danish, born 1969
With Green Hydrogen
Systems since 2022
Previous experience:
Danish Crown (CFO Danish
Crown Pork), Ecco Shoes
(COO & CFO USA)
Stephan
Jin Man Kim
CTO
German, born 1975
With Green Hydrogen
Systems since 2023
Previous experience:
BEGO (Chief Development
and Innovation Officer),
SENVION (VP Product
Development Services /
Strategic Projects
Executive Management
Birgitte Høgh
Frederiksen
CHO
Danish, born 1971
With Green Hydrogen
Systems since 2021
Previous experience:
INEOS (Head of HR Oil &
Gas, Denmark), Løgismose
Meyers Group (Senior HR
Business Partner), Tican Fresh
Meat (Manager, HR & Internal
comm.)
Søren
Rydbirk
CCO
Danish, born 1977
With Green Hydrogen
Systems since 2021
Previous experience:
FL. Schmidt (Senior VP,
Head of Service Business Unit),
Vestas (VP, Head of
Commercial)
Green Hydrogen Systems Annual report 2022 30
At a glance / Our business / Governance / Financial statements
Thomas Thune
Andersen
(Independent)
Danish, born 1955
Other positions:
Ørsted (Chairman),
VKR Holding (Chairman),
Lloyds Register (Chairman),
BW Group (Board Member)
Previous experience:
A.P. Møller-Mærsk (various
senior executive positions)
Jak ob Fuhr
Hansen
Danish, born 1974
Other positions:
Partner at Nordic Alpha
Partners, AgroIntelli (Board
Member), ReMatch (Board
Member)
Previous experience:
Partner Vækstfonden,
Microshade (Chairman)
Christian
Clausen
Chairman
(Independent)
Danish, born 1955
Other positions:
BlackRock Group Ltd
(Board Member), BW Group
(Board Member), Sampo
Group (Board Member)
Previous experience:
Nordea (Group CEO)
T roels
Øberg
Vice Chairman
Danish, born 1978
Other positions:
Nordic Alpha Partners
(Partner), AgroIntelli (Board
Member), Mater (Board
Member)
Previous experience:
Flokk (CEO),
Ørsted (Head of Sales)
Lars V alsøe
Bertelsen
(Independent)
Danish, born 1967
Other positions:
Norlys (VP M&A and Business
Development), Aros Capital
Fondsmæglerselskab (Board
Member)
Previous experience:
Eniig (Head of M&A), Ernst &
Young (Executive Director)
Board of Directors
Green Hydrogen Systems Annual report 2022 31
At a glance / Our business / Governance / Financial statements
Board of Directors
Karen Dyrskjøt
Boesen
(Independent)
Danish, born 1971
Other positions:
Sonnedix (Chief Financial
Officer)
Previous experience:
Total Energies (General
Manager), A.P. Møller-Mærsk
(Regional CFO)
Simon Krogsgaard
Ibsen
(Independent)
Danish, born 1987
Other positions:
Principal at A.P. Møller
Holding, KK Wind Solutions
(Board Member)
Previous experience:
EQT Partners, TA Associates,
J.P. Morgan
Anders
V edel
(Independent)
Danish, born 1957
Other positions:
Vestas (Chief Scientific Advisor
for the BoD and ExM),
GrennLab Skive A/S (Board
Member), Hvide Sande Havn
(Board Member)
Previous experience:
Vestas (Chief Technology
Officer)
Dr. Armin
Schnettler
(Independent)
Danish, born 1963
Other positions:
5THydrogen (Operating
Partner), Profas Energy
Consult GmbH (Managing
director), Reinhausen Group
(Advisory Board Member)
Previous experience:
Siemens (Executive Vice
President), Siemens Energy
(Executive Vice President)
Green Hydrogen Systems Annual report 2022 32
At a glance / Our business / Governance / Financial statements
Green Hydrogen Systems Annual report 2022 33
Financial
statements
Management’s statement
Independent auditor’s report
Financial statements
Notes
Definition of terms
In this section
Green Hydrogen Systems Annual report 2022 33
At a glance / Our business / Governance / Financial statements
Green Hydrogen Systems Annual report 2022 34
At a glance / Our business / Governance / Financial statements
Management's
statement
The Board of Directors and the Executive Man-
agement have today considered and adopted the
Annual Report of Green Hydrogen Systems A/S
for the financial year 1 January – 31 December
2022.
The Annual Report has been prepared in accor-
dance with International Financial Reporting
Standards as adopted by the EU and further
requirements in the Danish Financial Statements
Act.
In our opinion, the Financial Statements give
a true and fair view of the financial position at
31 December 2022 of the Company and of the
results of the Company operations and cash flows
for 2022.
Executive Management
Sebastian Koks Andreassen Ole Vesterbæk
Board of Directors
Christian Clausen (Chairman) Troels Øberg (Vice chairman)
Anders Jakob Vedel Jakob Fuhr Hansen
Thomas Thune Andersen Karen Dyrskjøt Boesen
Lars Valsøe Bertelsen Simon Krogsgaard Ibsen
Armin Schnettler
In our opinion, Management’s Review includes
a true and fair account of the development in
the operations and financial circumstances of
the Company, of the results for the year and of
the financial position of the Company as well as
a description of the most significant risks and
elements of uncertainty facing the Company.
In our opinion, the annual report of Green
Hydrogen Systems A/S for the financial year 1
January - 31 December 2022 with the file name
984500COESDF699DEC11-2022-12-31-en is
prepared, in all material respects, in compliance
with the ESEF regulation.
We recommend that the Annual Report be adopt-
ed at the Annual General Meeting.
Kolding, 1 March 2023
Green Hydrogen Systems Annual report 2022 35
At a glance / Our business / Governance / Financial statements
Independent
Auditors’ Reports
To the shareholders of Green Hydrogen Systems A/S
Report on the audit of the
Financial Statements
Our opinion
In our opinion, the Financial Statements give
a true and fair view of the Company’s financial
position at 31 December 2022 and of the results
of the Company’s operations and cash flows for
the financial year 1 January to 31 December
2022 in accordance with International Financial
Reporting Standards as adopted by the EU and
further requirements in the Danish Financial
Statements Act.
Our opinion is consistent with our Auditor’s Long-
form Report to the Audit Committee and the
Board of Directors.
What we have audited
The Financial Statements of Green Hydrogen
Systems A/S for the financial year 1 January to
31 December 2022 comprise income statement
and statement of comprehensive income, balance
sheet, statement of changes in equity, cash flow
statement and notes, including summary of signif-
icant accounting policies.
Basis for opinion
We conducted our audit in accordance with In-
ternational Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark.
Our responsibilities under those standards and
requirements are further described in the
Auditor’s responsibilities for the audit of the Finan-
cial Statements section of our report.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our opinion.
Independence
We are independent of the Company in accor-
dance with the International Ethics Standards
Board for Accountants’ International Code of
Ethics for Professional Accountants (IESBA
Code) and the additional ethical requirements
applicable in Denmark. We have also fulfilled our
other ethical responsibilities in accordance with
these requirements and the IESBA Code.
To the best of our knowledge and belief, prohibit-
ed non-audit services referred to in Article 5(1) of
Regulation (EU) No 537/2014 were not provided.
Appointment
Following a tendering procedure, we were ap-
pointed by shareholder resolution at the general
meeting on 30 March 2022 as auditor of Green
Hydrogen Systems A/S for the financial year
2022.
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most significance
in our audit of the Financial Statements for 2022.
These matters were addressed in the context of
our audit of the Financial Statements as a whole,
and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key audit matter
How our audit addressed
the key audit matter
Valuation of capitalised development cost
The Company capitalises development costs related
to electrolysers and electrodes when certain criteria
according to IFRS are met.
Development projects in progress are not amortised
but tested for impairment annually. Furthermore,
completed development projects are tested for im-
pairment if there are any indications of impairment.
Impairment indicators are continuously monitored,
and Management assesses whether there is any
indication of impairment, e.g., changes in the ability
to comply with the capitalisation criterias, technical
issues or other indications that the developed tech-
nology is impaired.
Management determined the recoverable amount
of the development projects based on an external
valuation, as the development, refinement and com-
mercialisation of the electrolysis technology is the
Company’s main activity. The external valuation ex-
ceeds the carrying amount with a substantial amount,
even though the required return rate includes a risk
premium reflecting the uncertainty related to the
Company's technical issues and delay in customer
deliveries.
We focused on this area, because Management is
required to exercise considerable judgement, and
because of the inherent complexity and subjectivity in
the estimation and assessment.
Refer to note 2 and 13 in the Financial Statements.
We selected a sample of development projects in
progress and considered whether the criterias in
IFRS were met for capitalisation. As part hereof, we
challenged Management’s assessment whether the
intent and feasibility to finalise the projects exists and
whether the projects are expected to generate future
economic benefits exceeding the carrying value.
We assessed relevant internal controls and
performed substantive audit procedures to verify
capitalised amounts.
We discussed with Management and evaluated
the methodology by which Management monitors
indicators of impairment including the commercial
expectations for the projects and significant assump-
tions applied.
In addressing the risk, we considered the appropri-
ateness of Management’s applied methodology for
impairment testing to determine compliance with
IFRS.
Further, we evaluated and challenged the impair-
ment test performed by Management including the
assumptions applied, hereunder by assessing the
external valuation obtained including the significant
data and assumptions applied. In assessing the exter-
nal valuation, we involved our valuation specialists.
Finally, we assessed Management’s disclosure of
these matters in the Financial Statements.
Green Hydrogen Systems Annual report 2022 36
At a glance / Our business / Governance / Financial statements
Key audit matter
How our audit addressed
the key audit matter
Valuation of inventories and onerous contracts
The Company has continued to build-up large inven-
tories in 2022 consistent with previous year due to
the commenced production of electrolysers.
Inventories are measured at the lower of cost and net
realisable value. Cost comprises raw materials, direct
labour and an appropriate proportion of variable
and fixed overhead expenditure. Valuation of work
in progress is based on standard costs, which are
derived from a framework of sub-assemblies and the
raw material and estimated direct labour needed to
produce these sub-assemblies.
During 2022, the Company has recognised additional
write downs on inventory for electrolysers under
construction due to expected negative margins
and late delivery rebates related to some of these
electrolysers, which was identified by Management
last year. As these onerous contracts relate to units
still under construction, an additional write down was
recognised.
We focused on this area, because estimation uncer-
tainty is high, as Management is required to exercise
considerable judgement in respect of determining
assumptions applied to raw materials and labour in
estimating costs to complete the construction and
timing of the delivery of these units.
Refer to note 2 and 18 in the Financial Statements
We assessed relevant internal controls and on a
sample basis performed substantive audit procedures
to verify amounts recognised as the cost of the elec-
trolysers. We considered the appropriateness of the
analysis of "raw materials and consumables used" in
the production, sample tested input data and evaluat-
ed the explanations provided by Management.
We evaluated the overview prepared by Manage-
ment detailing the expected negative margins on the
electrolysers under construction and estimated late
delivery rebates. We compared the overview to the
terms in the related sales contracts, and on a sample
basis verified the expected cost to complete the
electrolysers, by comparing the assumed costs of raw
materials to the most recent purchase prices of the
raw materials.
We evaluated and challenged Management’s expecta-
tions to the completion and delivery of the electroly-
sers, utilised in the calculation of late delivery rebates.
Finally, we assessed Management’s disclosure of
these matters in the Financial Statements.
Statement on Management’s
Review
Management is responsible for Management’s
Review.
Our opinion on the Financial Statements does
not cover Management’s Review, and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the Financial
Statements, our responsibility is to read Manage-
ment’s Review and, in doing so, consider whether
Management’s Review is materially inconsistent
with the Financial Statements or our knowledge
obtained in the audit, or otherwise appears to be
materially misstated.
Moreover, we considered whether Management’s
Review includes the disclosures required by the
Danish Financial Statements Act.
Based on the work we have performed, in our
view, Management’s Review is in accordance with
the Financial Statements and has been prepared in
accordance with the requirements of the Danish
Financial Statements Act. We did not identify any
material misstatement in Management’s Review.
Management’s responsibilities for
the Financial Statements
Management is responsible for the preparation
of financial statements that give a true and fair
view in accordance with International Financial
Reporting Standards as adopted by the EU and
further requirements in the Danish Financial
Statements Act, and for such internal control as
Management determines is necessary to enable
the preparation of financial statements that are
free from material misstatement, whether due to
fraud or error.
In preparing the Financial Statements, Manage-
ment is responsible for assessing the Company’s
ability to continue as a going concern, disclosing,
as applicable, matters related to going concern
and using the going concern basis of accounting
unless Management either intends to liquidate
the Company or to cease operations, or has no
realistic alternative but to do so.
Auditor’s responsibilities for the
audit of the Financial Statements
Our objectives are to obtain reasonable assur-
ance about whether the Financial Statements
as a whole are free from material misstatement,
whether due to fraud or error, and to issue
an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conduct-
ed in accordance with ISAs and the additional
requirements applicable in Denmark will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and
are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken
on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and
the additional requirements applicable in Den-
mark, we exercise professional judgement and
maintain professional scepticism throughout the
audit. We also:
• Identify and assess the risks of material
misstatement of the Financial Statements,
whether due to fraud or error, design and
perform audit procedures responsive to
those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a
Green Hydrogen Systems Annual report 2022 37
At a glance / Our business / Governance / Financial statements
material misstatement resulting from fraud
is higher than for one resulting from error, as
fraud may involve collusion, forgery, inten-
tional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of
the Company’s internal control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by Management.
• Conclude on the appropriateness of Man-
agement’s use of the going concern basis of
accounting and based on the audit evidence
obtained, whether a material uncertainty
exists related to events or conditions that
may cast significant doubt on the Company’s
ability to continue as a going concern. If we
conclude that a material uncertainty exists,
we are required to draw attention in our au-
ditor’s report to the related disclosures in the
Financial Statements or, if such disclosures
are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence
obtained up to the date of our auditor’s
report. However, future events or conditions
may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure
and content of the Financial Statements,
including the disclosures, and whether the
Financial Statements represent the underly-
ing transactions and events in a manner that
gives a true and fair view.
We communicate with those charged with
governance regarding, among other matters,
the planned scope and timing of the audit and
significant audit findings, including any significant
deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance
with a statement that we have complied with
relevant ethical requirements regarding indepen-
dence, and to communicate with them all relation-
ships and other matters that may reasonably be
thought to bear on our independence and, where
applicable, actions taken to eliminate threats or
safeguards applied.
From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the
audit of the Financial Statements of the current
period and are therefore the key audit matters.
We describe these matters in our auditor’s report
unless law or regulation precludes public disclo-
sure about the matter.
Report on compliance with the
ESEF Regulation
As part of our audit of the Financial Statements
we performed procedures to express an opinion
on whether the annual report of Green Hydro-
gen Systems A/S for the financial year 1 Jan-
uary to 31 December 2022 with the filename
984500COESDF699DEC11-2022-12-31-en is
prepared, in all material respects, in compliance
with the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic
Format (ESEF Regulation) which includes require-
ments related to the preparation of the annual
report in XHTML format and iXBRL tagging of the
Financial Statements including notes.
Management is responsible for preparing an
annual report that complies with the ESEF Regu-
lation. This responsibility includes:
• The preparing of the annual report in XHTML
format;
• The selection and application of appropri-
ate iXBRL tags, including extensions to the
ESEF taxonomy and the anchoring thereof
to elements in the taxonomy, for all financial
information voluntarily tagged and therefore
required to be tagged using judgement where
necessary;
• Ensuring consistency between iXBRL tagged
data and the Financial Statements presented
in human-readable format; and
• For such internal control as Management de-
termines necessary to enable the preparation
of an annual report that is compliant with the
ESEF Regulation.
Our responsibility is to obtain reasonable assur-
ance on whether the annual report is prepared,
in all material respects, in compliance with the
ESEF Regulation based on the evidence we have
obtained, and to issue a report that includes
our opinion. The nature, timing and extent of
procedures selected depend on the auditor’s
judgement, including the assessment of the risks
of material departures from the requirements set
out in the ESEF Regulation, whether due to fraud
or error. The procedures include:
• Testing whether the annual report is prepared
in XHTML format;
• Obtaining an understanding of the company’s
iXBRL tagging process and of internal control
over the tagging process;
• Evaluating the completeness of the iXBRL
tagging of the Financial Statements including
notes;
• Evaluating the appropriateness of the compa-
ny’s use of iXBRL elements selected from the
ESEF taxonomy and the creation of extension
elements where no suitable element in the
ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension
elements to elements in the ESEF taxonomy;
and
• Reconciling the iXBRL tagged data with the
audited Financial Statements.
In our opinion, the annual report of Green
Hydrogen Systems A/S for the financial year 1
January to 31 December 2022 with the file name
984500COESDF699DEC11-2022-12-31-en is
prepared, in all material respects, in compliance
with the ESEF Regulation.
Hellerup, 1 March 2023
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 3377 1231
Rasmus F riis Jørgensen Jacob Brinch
State Authorised Public
Accountant
State Authorised Public
Accountant
mne28705 mne35447
Green Hydrogen Systems Annual report 2022 38
At a glance / Our business / Governance / Financial statements
DKK '000 Notes 2022 2021
Profit/(loss) for the year (282,316) (492,871)
Other comprehensive income
Items that may be reclassified to profit or loss
Changes in the fair value of debt instruments at fair value through other comprehensive income net of tax 15 (23,981) (2,171)
Other comprehensive income for the year (23,981) (2,171)
Total comprehensive income for the period (306,296) (495,042)
Statement of comprehensive income
DKK '000 Notes 2022 2021
Revenue from contracts with customers 3, 4 10,422 5,172
Other operating income 8 3,330 2,382
Total revenue & operating income 13,752 7,554
Changes in inventory of finished goods and work in progress 26,658 25,580
Raw materials and consumables used
(99,556) (57,323)
Work performed by the Company and capitalised
79,704 49,272
Employee costs
5 (189,313) (108,374)
Other operating expenses
9 (80,418) (65,159)
Operating profit (loss) before depreciation, amortisation and impairment losses (EBITDA)
(249,174) (148,450)
Depreciation and amortisation
6 (33,792) (14,883)
Operating profit/(loss) (EBIT)
(282,967) (163,333)
Financial income
10 289 637
Financial expenses
11 (5,138) (335,675)
Profit/(loss) before tax
(287,816) (498,371)
Income tax benefit
12 5,500 5,500
Profit/(loss) for the period
(282,316) (492,871)
Earnings per share attributable to shareholders
24 (3.42) (7.85)
Diluted earnings per share attributable to shareholders
24 (3.42) (7.85)
Income statement
Statement of profit or loss
Green Hydrogen Systems Annual report 2022 39
At a glance / Our business / Governance / Financial statements
Balance sheet
DKK '000 Notes
31 December
2022
31 December
2021
Intangible assets 13 173,962 58,912
Property, plant and equipment 14 313,586 161,297
Financial assets at fair value through other comprehensive income 15 562,443 691,494
Right-of-use assets 17 7,875 8,235
Deposits 908 527
Total non-current assets 1,058,773 920,465
Inventories 18 170,004 73,423
Trade receivables 19 10,861 3,681
Income tax receivables 12 5,500 5,500
Prepayments 10,510 1,813
Other receivables 16,393 23,194
Financial assets at fair value through other comprehensive income 15 182,600 0
Cash and cash equivalents 95,340 266,924
Total current assets 491,209 374,536
Total assets 1,549,982 1,295,001
Green Hydrogen Systems Annual report 2022 40
At a glance / Our business / Governance / Financial statements
Balance sheet
DKK '000 Notes
31 December
2022
31 December
2021
Share capital 21 83,166 81,987
Share premium 1,742,521 1,740,789
Reserve for development costs 131,608 43,189
Reserve for financial assets at fair value through other comprehensive income (26,152) (2,171)
Accumulated deficit (1,069,088) (691,953)
Total equity 862,056 1,171,842
Lease liabilities 17, 23 4,560 3,938
Total non-current liabilities 4,560 3,938
Borrowings 22, 23 500,000 0
Trade payables 23 65,127 42,850
Lease liabilities 17, 23 3,440 3,460
Contract liabilities 20 41,428 27,576
Deferred income 8 33,297 31,614
Provisions 25 14,944 3,114
Other payables 25,131 10,607
Total current liabilities 683,366 119,221
Total liabilities 687,927 123,159
Total equity and liabilities 1,549,982 1,295,001
Green Hydrogen Systems Annual report 2022 41
At a glance / Our business / Governance / Financial statements
Statement of changes in equity
DKK '000 Notes Share capital Share premium
Reserve for
development
costs
Reserve for
financial assets
at fair value
through other
comprehensive
income
Accumulated
deficit Total equity
Equity at 1 January 2021 36,805 39,328 12,147 0 (92,357) (4,077)
Loss for the year 0 0 31,042 0 (523,913) (492,871)
Other comprehensive income 0 0 0 (2,171) 0 (2,171)
Total comprehensive income for the year 0 0 31,042 (2,171) (523,913) (495,042)
Transactions with owners in their capacity as owners
Capital increase, cash 31,681 1,234,069 0 0 0 1,265,750
Exercise of warrants, cash 1,453 2,135 0 0 0 3,588
Conversion of loan into shares, non cash 12,047 465,258 0 0 0 477,305
Share-based payments 0 0 0 0 16,033 16,033
Transaction costs for equity issuance 7 0 0 0 0 (91,715) (91,715)
Total transactions with owners 45,182 1,701,462 0 0 (75,682) 1,670,961
Equity at 31 December 2021 81,987 1,740,789 43,189 (2,171) (691,953) 1,171,842
Loss for the year 0 0 88,419 0 (370,735) (282,316)
Other comprehensive income 0
0
0 (23,981)
0
(23,981)
Total comprehensive income for the year 0 0 88,419 (23,981) (370,735) (306,296)
Transactions with owners in their capacity as owners
Exercise of warrants, cash 1,179 1,732 0 0 0 2,911
Share-based payments 7 0 0 0 0 4,673 4,673
Reclassification of warrant program 0
0 0 0
(11,073) (11,073)
Total transactions with owners 1,179 1,732 0 0 (6,400) (3,489)
Equity at 31 December 2022 83,166 1,742,521 131,608 (26,152) (1,069,088) 862,056
Green Hydrogen Systems Annual report 2022 42
At a glance / Our business / Governance / Financial statements
Cash flow statement
Cash flow statement
DKK '000 Notes 2022 2021
Loss for the year (282,316) (492,871)
Changes in net working capital 32 (71,226) (14,286)
Adjustments 32 64,884 362,584
Interests received 3,977 0
Interests paid (4,688) (13,348)
Income taxes paid/received 5,500 2,527
Net cash flow from operating activities (283,869) (155,394)
Payment for property, plant and equipment 14 (167,049) (145,417)
Payment for development costs 13 (128,573) (46,889)
Payment for financial assets at fair value through other comprehensive income 15 (103,367) (699,959)
Sale of financial assets at fair value through other comprehensive income
15
21,699 5,494
Net cash flow from investing activities (377,290) (886,771)
Principal elements of lease payments 29 (4,547) (4,658)
Proceeds from borrowings 29 500,000 0
Repayment of borrowings 29 0 (19,829)
Proceeds from share issues 2,911 1,269,338
Transaction costs for equity issuance 0 (91,715)
Cash settlement, warrants (8,790) 0
Cash flow from financing activities 489,574 1,153,136
Net cash flow for the period (171,584) 110,971
Cash and cash equivalents, beginning of the year 266,924 155,953
Cash and cash equivalents at end of the period 95,340 266,924
Green Hydrogen Systems Annual report 2022 43
At a glance / Our business / Governance / Financial statements
Contents notes
1. Accounting policies
2. Critical accounting estimates and judgements
3. Operating segments
4. Revenue from contracts with customers
5. Employee costs
6. Depreciation and amortisation
7. Share-based payment plans
8. Other operating income
9. Other operating expenses
10. Financial income
11. Financial expenses
12. Tax on profit for the year
13. Intangible assets
14. Property, plant and equipment
15. Financial assets at fair value through other
comprehensive income
16. Deferred tax
17. Leases
18. Inventory
19. Trade receivables
20. Contract balances
21. Share capital
22. Borrowings
23. Financial risk management
24. Earnings per share
25. Provisions
26. Capital management
27. Commitments and contingent liabilities
28. Fee to auditors appointed at the general meeting
29. Changes in liabilities arising from financing activities
30. Related parties
31. Events after the balance sheet date
32. Cash flow specifications
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Green Hydrogen Systems Annual report 2022 44
At a glance / Our business / Governance / Financial statements
Notes
Note 1
Accounting policies
Green Hydrogen Systems A/S is a Danish based
company focusing on development and produc-
tion of cost-efficient and scalable electrolysers
for hydrogen production based on renewable
energy. The Company serves industries estab-
lishing on-site green hydrogen production for
different purposes as well as energy and transport
companies being at the forefront of development
of Power-to-X applications and transition towards
emission-free fuel. Revenue is generated from sale
and installation of complete alkaline electrolysis
solutions as well as service of the installed systems.
Basis of preparation
The financial statements of the Company have
been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted
by the EU as well as additional Danish disclosure
requirements applying to companies of reporting
class D.
The annual report has been prepared under the
historic cost convention, except for certain finan-
cial assets (listed bonds) and derivative financial
instruments that are measured at fair value.
The financial statements are presented in DKK,
which is also the Company's functional currency.
The amounts have been rounded to the nearest
thousand.
performance and makes all significant decisions
regarding business development and allocation
of resources. For that purpose, a single business
segment has been identified as an operating
segment which is consistent with the internal
reporting to the chief operating decision making
body. Further information about the composition
of the Executive Management has been provided
in note 3.
There is also considered to be only one reporting
segment, the results of which are presented in
these financial statements.
Revenue
The Company mainly generates revenue from
delivery of electrolysers and related commision-
ing and maintenance services.
Revenue from contracts with customers is
recognized when control of the related goods and
services are transferred to the customer and is
recognised by the amount that reflects the con-
sideration to which the Company expects to be
entitled in exchange for those goods or services.
This normally corresponds to the amount as
specified in the contract.
A customer contract may include multiple prom-
ises such as delivery of electrolysers, commis-
sioning and after-sales maintenance service. By
applying the criteria in IFRS 15 the Company
has determined that these promises normally
comprise separate performance obligations for
which revenue is recognised, as control with the
respective performance obligation is transferred
to the customer.
Customer payments are normally due 30 days
after invoicing. No significant element of financing
is deemed present. The Company does in general
not accept returns.
Revenue from sale of electrolysers
The Company recognises revenue from sale
of electrolysers at the point in time where the
performance obligation is satisfied, which is
normally when the factory acceptence test or
the site acceptance test has been successfully
completed. This is the point in time where control
is considered to have been transferred to the
customer and where the customer has the ability
to direct the use of and obtain substantially all the
remaining benefits from the equipment.
In most contracts the customer makes partial
payments in advance of shipment and final site
acceptance test. Considerations received from
customers prior to the Company satisfies its
performance obligation are recognised as a
contract liability in the balance sheet. See further
description of contract liabilities.
The Company provides its customers with
warranties against design or manufacturing flaws
and defects, normally within a period of 12 - 24
months after commissioning has taken place. The
Company's estimated obligation under the stan-
dard warranty terms (assurance type warranties)
is recognised under provisions.
New and amended standards and interpreta-
tions adopted by the Company
The Company has adopted all new and amended
standards and interpretations that are effective
as of 1 January 2022 as adopted by the EU. None
of the new or amended standards or interpreta-
tions have had a significant impact on the Com-
pany's financial statements for the current and is
not expected to have a material impact on future
periods or on foreseeable future transactions.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements are
measured using the currency of the primary
economic environment in which the Company
operates (‘the functional currency') which is DKK.
Transactions and balances
Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions and from the translation of
monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are
generally recognised in profit or loss.
Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provid-
ed to the chief operating decision maker. The
Company considers the Executive Management
to be the operating decision making body, as the
Executive Management examines the Company’s
Green Hydrogen Systems Annual report 2022 45
At a glance / Our business / Governance / Financial statements
Revenue from sale of maintenance service
Revenue generated from maintenance services are
recognised as revenue when the work is performed.
For maintenance contracts where the Company
has agreed to provide routine maintenance over
an agreed period of time for a fixed price, revenue
is recognised on a straight-line basis over the
contract period, as this according to Management
provides the most faithful depiction of the trans-
fer of these maintenance services.
For maintenance contracts where the customers
are invoiced on an hourly basis, the Company
applies the practical expedient in IFRS 15 which
allows revenue to be recognised in the amount
the Company has the right to invoice the custom-
er. This practical expedient is applicable when
the amount corresponds directly with the value
to the customer of the Company's performance
completed to date.
Other operating income
Other operating income comprises items of a
secondary nature to the main activities of the
Company, including gains on sale of property,
plant and equipment. The amount of government
grants recognised in the income statement during
the year is also included, irrespectively of when
the grants were received.
Changes in inventory of finished goods and
work in progress
Changes in inventory of finished goods and work
in progress comprise of the periods change in
value of inventories of finished goods and work
in progress. The change in inventory considers
fixed and variable production overheads, such as
depreciations and employee costs, incurred in
converting materials into finished goods which
have been included in the cost of inventories.
Raw materials and consumables used
Raw materials and consumables include the cost
of raw materials and consumables used during
the year for the production of the Company's
finished goods as well as incurred development
costs. Any write-downs of inventories for the year
are also included.
Work performed by the Company and capi-
talised
Work performed by the Company and capitalised
includes the amount of employee costs incurred
and consumption of raw materials and consum-
ables, which during the year have been capitalised
as part of the Company's development projects.
Employee costs
Employee costs comprise salaries and wages,
including holiday pay and pensions and other
costs for social security, etc. as well as costs for
share-based payment programs for the Compa-
ny's employees and Management.
Other operating expenses
Other operating expenses include facility costs,
costs for advertising, administration, consultants,
bad debts expense, losses on the sale of property,
plant and equipment as well as costs for short-
term and low value leases.
Depreciation and amortisation
Depreciation and amortisation includes the
period's depreciation on property, plant and
equipment and right of use assets as well as the
period's amortisation on intangible assets.
Financial income and expenses
Financial income and expenses are recognised
in the income statements at the amounts that
concern the financial year. Net financials include
interest income, interest expenses calculated
using the effective interest rate method, fair value
adjustment of derivative financial instruments,
etc..
Income tax
The income tax expense or credit for the period
is the tax payable or receivable on the current
period’s taxable income based on the applicable
income tax rate adjusted by changes in deferred
tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on
the basis of the tax laws enacted or substantively
enacted at the balance sheet date. Management
periodically evaluates positions taken in tax re-
turns with respect to situations in which applica-
ble tax regulation is subject to interpretation, and
considers whether it is probable that a taxation
authority will accept an uncertain tax treatment.
The Company measures its tax balances either
based on the most likely amount or the expected
value, depending on which method provides a bet-
ter prediction of the resolution of the uncertainty.
Deferred income tax is provided in full, using the
liability method, on temporary differences arising
between the tax bases of assets and liabilities and
their carrying amounts in the financial state-
ments. Deferred income tax is not accounted
for if it arises from initial recognition of an asset
or liability in a transaction other than a business
combination that at the time of the transaction af-
fects neither accounting nor taxable profit or loss
Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially
enacted by the end of the reporting period and
are expected to apply when the related deferred
income tax asset is realised or the deferred
income tax liability is settled.
Deferred tax assets are recognised only if it is
probable that future taxable amounts will be
available to utilise those temporary differences
and losses.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset cur-
rent tax assets and liabilities. Current tax assets
and tax liabilities are offset where the Company
has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit
or loss, except to the extent that it relates to
items recognised in other comprehensive income
or directly in equity. In this case, the tax is also
recognised in other comprehensive income or
directly in equity, respectively.
Current tax on losses for the periods are originat-
ing from the tax credit scheme for research and
development costs, under which the tax value of
accumulated tax losses up to DKK 25 million are
paid to the Company.
Intangible assets
Intangible assets include in progress and com-
pleted development projects and other externally
acquired intangible rights such as rights and
licenses.
Green Hydrogen Systems Annual report 2022 46
At a glance / Our business / Governance / Financial statements
In progress and completed development
projects
Development costs that are directly attributable
to the development of identifiable electrolysers
and electrodes controlled by the Company are
recognised as intangible assets when the follow-
ing criteria are met:
• it is technically feasible to complete the elec-
trolysers so that it will be available for use
• management intends to complete the elec-
trolysers and use or sell it
• there is an ability to use or sell the electrolysers
• it can be demonstrated how the electrolysers
will generate probable future economic bene-
fits
• adequate technical, financial and other re-
sources to complete the development and to
use or sell the electrolysers are available, and
• the expenditure attributable to the electrol-
ysers during its development can be reliably
measured.
Directly attributable costs that are capitalised
as part of the projects include employee costs,
cost of materials and capitalized borrowing costs.
Capitalised development costs are recorded as
intangible assets and amortised from the point in
time at which the asset is ready for use.
Research expenditure and development expen-
diture that do not meet the criteria above are
recognised as an expense as incurred.
The Company amortises development projects
with a finite useful life using the straight-line
method over the following periods:
Development projects - In progress: None
Development projects - Completed: 3 years
Other intangible assets
Other intangible assets include separately
acquired rights and licences, which are measured
at historical cost. They have a finite useful life and
are subsequently carried at cost less accumulated
amortisation and impairment losses. Licenses and
software are amortised over 5 years.
Property, plant and equipment
Property, plant and equipment is measured at his-
torical cost less accumulated depreciations and
impairment losses. The cost includes expenditure
that is directly attributable to the acquisition of
the items.
Depreciations are calculated using the straight-
line method, net of their residual values over their
estimated useful lives, as follows:
Plant and machinery: 3 - 10 years
Other fixtures and fittings, tools and equipment:
3 - 5 years
Leasehold improvements: 3 - 15 years
Buildings: 25 - 40 years
The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at the end
of each reporting period.
Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These
are included in profit or loss as other operating
income/expenses.
Leases
The Company's leases include properties and
vehicles.
Leases are recognised as a right-of-use asset and
a corresponding liability at the date at which the
leased asset is available for use by the Company.
Each lease payment is allocated between the
liability and finance cost. The finance cost is
charged to profit or loss over the lease period so
as to produce a constant periodic rate of interest
on the remaining balance of the liability for each
period. The right-of-use asset is depreciated over
the shorter of the asset's useful life and the lease
term on a straight-line basis.
Contracts may contain both lease and non-lease
components. The Company has elected not
to separate lease and non-lease components
and instead accounts for these as a single lease
component.
Assets and liabilities arising from a lease are
initially measured on a present value basis. The
Company's lease liabilities include the net present
value of the following lease payments:
• fixed payments (including in-substance fixed
payments), less any lease incentives receivable
• variable lease payment that are based on an
index or a rate
The lease payments are discounted using the in-
terest rate implicit in the lease, if that rate can be
readily determined, or the Company’s incremen-
tal borrowing rate.
Lease liabilities are subsequently measured by
increasing the carrying amount to reflect interest
on the lease liability, and reducing the carrying
amount to reflect the lease payments made.
Right-of-use assets are measured at cost com-
prising the following:
• the amount of the initial measurement of
lease liability
• any lease payments made at or before the
commencement date less any lease incentives
received
• any initial direct costs, and
• restoration costs.
Variable lease payments other than those based
on an index or rate are recognised in the income
statement when incurred. Payments associated
with short-term or low value leases are rec-
ognised on a straight-line basis as an expense in
profit or loss under the line item other operating
expenses.
Impairment of non-current assets
Non-current assets are tested for impairment
whenever events or changes in circumstances
indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for
the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less
costs of disposal and value in use. For the purpos-
es of assessing impairment, assets are grouped at
the lowest levels for which there are separately
identifiable cash inflows which are largely inde-
pendent of the cash inflows from other assets or
groups of assets (cash-generating units). Non-fi-
nancial assets that suffered an impairment are
reviewed for possible reversal of the impairment
at the end of each reporting period.
Development projects in progress are tested for
impairment annually.
Trade receivables
Trade receivables are recognised initially at the
transaction price and subsequently measured at
amortised cost using the effective interest meth-
od, less loss allowance.
Green Hydrogen Systems Annual report 2022 47
At a glance / Our business / Governance / Financial statements
The Company holds the trade receivables with
the objective to collect the contractual cash
flows and then measures them subsequently at
amortised cost. The Company applies the IFRS
9 simplified approach in measuring the expected
credit losses, which uses a lifetime expected loss
allowance for all trade receivables.
See note 18 for a description of the Company's
impairment policies for trade receivables.
Financial assets at fair value through other
comprehensive income
Financial assets at fair value through other com-
prehensive income comprise listed bonds, where
the contractual cashflows are solely principal
and interest and the objective of the Company's
business model is achieved by both collecting
contractual cash flows and selling financial assets.
At initial recognition, these financial assets are
measured at fair value plus, transaction costs
that are directly attributable to the acquisition of
the financial asset. Subsequently, these finan-
cial assets are mesasured at fair value through
other comprehensive income. Movements in the
carrying amount are taken through other compre-
hensive income, except for the recognition of
impairment gains and losses, interest income
and foreign exchange gains and losses, which are
recognised in profit or loss. When the financial
asset is derecognised, the cumulative gain or loss
previously recognised in other comprehensive
income is reclassified from equity to profit or loss
and recognised in financial expenses/income.
Interest income from these financial assets is
included in finance income using the effective
interest rate method. Foreign exchange gains and
losses are presented in financial items.
Inventories
Raw materials, work in progress and finished
goods are stated at the lower of cost and net
realisable value. Cost comprises of direct materi-
als, direct labour and an appropriate proportion
of variable and fixed overhead expenditure, the
latter being allocated on the basis of normal op-
erating capacity. Costs are assigned to individual
items of inventory on the basis of first-in-first-
out (FIFO) method. Net realisable value is the
estimated selling price in the ordinary course of
business less the estimated costs of completion
and the estimated costs necessary to make the
sale.
Prepayments
Prepayments includes prepaid costs made by the
Company and is measured at costs.
Other receivables
Other receivables comprise government grants
receivable by the Company, VAT receivable, etc.
Other receivables are measured at cost which
normally correspond to the nominal amount.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand
and bank balances.
Equity
Share capital
Ordinary shares are classified as equity. Incre-
mental costs directly attributable to the issue of
new shares are shown in equity as a deduction,
net of tax, from the proceeds.
Share premium
The reserve include premium on issue of shares.
Reserve for development costs
When development costs are capitalised in the
balance sheet, a corresponding amount, net of
tax, is recorded within the reserve for develop-
ment costs. The reserve is reduced as the devel-
opment projects are amortised. The reserve for
development costs is not available for distribution
of dividend.
Reserve for financial assets at fair value
through other comprehensive income
The Company also has certain debt investments
measured at fair value through other comprehen-
sive income, as explained in note 23. For these
investments, changes in fair value are accumulated
within the fair value through other comprehensive
income reserve within equity. The accumulated
changes in fair value are transferred to profit or loss
when the investment is derecognised or impaired.
Transaction costs related to equity issuance
Qualifying transaction costs incurred in connec-
tion with issuance of equity instruments are de-
ducted from equity. Transaction costs incurred in
anticipation of an issuance of equity instruments
are deducted from equity as incurred. If the equity
instruments are not subsequently issued, the
transaction costs will be recognised as an expense.
Where the qualifying transaction costs relate to
lisiting of existing and new shares, the part of the
total transation costs deducted from equity are
based on a ratio between management’s expecta-
tions about the number of new shares compared
to the number of existing shares.
Earning per share
Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the com-
pany
• by the weighted average number of ordinary
shares outstanding during the financial year
Diluted earnings per share adjusts the figures
used in the determination of basic earnings per
share to take into account:
• the after-income tax effect of interest and
other financing costs associated with dilutive
potential ordinary shares, and
• the weighted average number of addition-
al ordinary shares that would have been
outstanding assuming the conversion of all
dilutive potential ordinary shares.
Borrowings
Borrowings are initially recognised at fair value
net of transaction costs incurred. Subsequently,
borrowings are measured at amortised cost.
Any difference between the proceeds (net of
transaction costs) and the redemption amount is
recognised in profit or loss over the period of the
borrowings using the effective interest method.
Derivatives embedded in financial liabilities which
are triggered upon certain events, such as addi-
tional payments upon an exit-event, are separated
and accounted for separately when the risks of
the derivative and the debt host contract are
dissimilar. Such derivatives are initially measured
at fair value and presented within borrowings.
The derivatives are subsequently measured at fair
value through profit or loss with fair value changes
presented within financial income and expenses.
Borrowings are removed from the balance sheet
when the obligation specified in the contract is
discharged, cancelled or expired. The difference
between the carrying amount of a financial liabil-
ity that has been extinguished and the consider-
ation paid is recognised in profit or loss as finance
costs.
Green Hydrogen Systems Annual report 2022 48
At a glance / Our business / Governance / Financial statements
Borrowings are classified as current liabilities
unless the Company has an unconditional right
to defer settlement of the liability for at least 12
months after the reporting period.
Borrowing costs
General and specific borrowing costs that are di-
rectly attributable to the acquisition, construction
or production of a qualifying asset are capitalised
during the period of time that is required to
complete and prepare the asset for its intended
use. Qualifying assets are assets that necessarily
take a substantial period of time to get ready for
their intended use and comprise of the Compa-
ny's development projects in progress that meet
the criteria.
Other borrowing costs are expensed in the period
in which they are incurred.
Trade and other payables
These amounts represent liabilities for goods and
services provided to the Company prior to the
end of the financial year which are unpaid. The
amounts are unsecured and are usually paid within
30 days of recognition. Trade and other payables
are presented as current liabilities unless payment
is not due within 12 months after the reporting
period. They are recognised initially at their fair
value and subsequently measured at amortised
cost using the effective interest method.
Provisions
Provisions for service warranties are recognised
when the Company has a present legal or con-
structive obligation as a result of past events, it
is probable that an outflow of resources will be
required to settle the obligation, and the amount
can be reliably estimated. Provisions are not
recognised for future operating losses.
Provisions are measured at the present value of
management’s best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The provision is recognised
when the control with the underlying goods and
services are transferred to the customer. A corre-
sponding entry is made in the income statement
within raw materials and consumables used.
Provisions for onerous contracts are recognised
where the unavoidable costs of fulfilling the ob-
ligations under the contract exceed the contract
amount. Any impairment loss that has ocurred on
assets dedicated to that contract is recognised
before a separate provision is established.
Contract liabilities
A contract liability is the obligation to transfer
good or services to a customer for which the
Company has received consideration (or an
amount of consideration is due) from the custom-
er. If a customer pays consideration before the
Company transfers goods or services to the cus-
tomer, a contract liability is recognised when the
payment is made or the payment is due (whichev-
er is earlier). Contract liabilities are recognised as
revenue when the Company performs under the
contract.
Share-based payments
Share-based compensation benefits are provided
to board members, executive management and
other employees and inlcude warrants-programs,
restructed stock units (RSUs) and Performance
Share Units (PSUs).
The fair value of the warrants, restricted stock
units and performance share units granted under
equity settled programs are recognised as an
expense with a corresponding increase in equity.
The total amount to be expensed is determined
by reference to the grant date fair value of the
warrants, restricted stock units and performance
share units, respectively.
The total expense is recognised over the vesting
period, which is the period over which all of the
specified vesting conditions are to be satisfied. At
the end of each period, the Company revises its
estimates of the number of warrants, restricted
stock units and performance share units that
are expected to vest based on the non-market
vesting and service conditions. It recognises the
impact of the revision to original estimates, if any,
in profit or loss, with a corresponding adjustment
to equity.
Warrant-programs where the Company has a
choice of settlement are classified as cash-set-
tled, when the Company, in substance, has an
obligation to settle the program in cash. Liabilities
for the Company's cash-settled warrant programs
are recognised as employee costs over the rele-
vant service period. The liabilities are remeasured
to fair value at each reporting date and are pre-
sented as other payables in the balance sheet.
In the event, the Company changes the classifica-
tion of an equity-settled warrant program to be
settled in cash, the Company remeasures the fair
value of the warrants to recognise a liability for
the Company's obligation to settle the program
in cash. Any change in the fair value arising from
the remeasurement is recongnised directly in
equity. Subsequent changes to the fair value of
the liability are recognised as employee costs as
described above.
Further information about the Company's share-
based payment programs are disclosed in note 7.
Government grants
Government grants are recognised at their fair
value where there is a reasonable assurance that
the grant will be received and the Company will
comply with all attached conditions.
Government grants relating to costs are deferred
and recognised in profit or loss over the period
necessary to match them with the costs that they
are intended to compensate.
Government grants relating to the purchase or
development of assets are included in liabilities as
deferred income and they are credited to profit
or loss on a straight-line basis over the expected
lives of the related assets.
Government grants that have been recognised as
income, when the recognition criteria have been
met, but which have not yet been received by the
Company are recognised as an asset presented
within other receivables.
Cash flow statement
The cash flow statement shows the Company's
cash flows for the year broken down by operating,
investing and financing activities, changes for
the year in cash and cash equivalents as well as
the Company's cash and cash equivalents at the
beginning and end of the year.
Cash flows from operating activities are calculat-
ed as the net profit/loss for the year adjusted for
changes in working capital and non-cash operat-
ing items such as depreciation, amortisation and
expenses from share-based payment. Working
capital comprises current assets less short-term
debt excluding items included in cash and cash
equivalents.
Green Hydrogen Systems Annual report 2022 49
At a glance / Our business / Governance / Financial statements
Cash flows from investing activities comprise
cash flows from acquisitions and disposals of in-
tangible assets and property, plant and equipment
as well as payments and proceeds from purchase
and sale of financial assets at fair value through
other comprehensive income.
Cash flows from financing activities comprise
cash flows from the raising and repayment of long
term debt, principal element on lease payments as
well as payments to and from shareholders, such
as proceeds from capital increases.
Key Figures
The financial ratios have been calculated in accor-
dance with the recommendations of the Associa-
tion of Danish Financial Analysts.
New standards and interpretations not yet
adopted
The IASB has issued certain new accounting stan-
dards, amendments to accounting standards and
interpretations that are not mandatory for 31 De-
cember 2022 reporting periods and which have
not been early adopted by the Company. None
of these standards, amendments or interpreta-
tions are expected to have a material impact on
the Company in the current or future reporting
periods and on foreseeable future
transactions.
Note 2
Critical accounting
estimates and judgements
The preparation of financial statements re-
quires the use of accounting estimates which, by
definition, will seldom equal the actual results.
Management also needs to exercise judgement in
applying the Company’s accounting policies.
The judgments, estimates and the related as-
sumptions made are based on historical experi-
ence and other factors that Management consid-
ers to be reliable, but which by their very nature
are associated with uncertainty and unpredict-
ability. These assumptions may prove incomplete
or incorrect, and unexpected events or circum-
stances may arise. Estimates and judgements are
continually evaluated. The most critical judg-
ments and estimates, including the assumptions,
for the individual items are described below.
Critical accounting estimates
Critical accounting estimates are expectations
of the future based on assumptions that to the
extent possible are supported by historical trends
or reasonable expectations. The assumptions may
change to adapt to the market conditions and
changes in economic factors etc. The Company
believe that the estimates are the most likely
outcome of future events. Assumptions and
estimates relating to assets and liabilities that
have a significant risk of resulting in a material
adjustment to their carrying amount within the
next financial year relate to:
Unrecognised deferred tax asset
As of 31 December 2022, the Company has
unrecognised deferred tax assets of DKK
116,891 thousand, hereof the tax value of tax
losses carried forward amounts to DKK 140,170
thousand (tax loss carry-forward of DKK 637,134
thousand). The Company has incurred the losses
in recent years as a consequence of expanding the
Company and its operations. The losses can be
carried forward indefinitely and have no expiration
date.
Recognition of deferred tax assets requires
that it is probable that future taxable profits are
available against which the unused tax losses
can be utilised. As the Company has a history
of making taxable losses, IAS 12 Income Taxes
further requires that convincing evidence is
available to support Management's assessment
that sufficient taxable profits will be available in
the future. Even though the approved budget
and business plan shows that the Company will
be generating taxable profits in the foreseeable
future, Management has concluded that it will
not be able to meet the strict criteria in IAS 12 to
provide 'convincing evidence', as the budget and
business plan are sensitive to the timing and level
of investments and similar factors. Consequently,
no deferred tax assets have been recognised for
the Company's tax loss carry-forwards.
Impairment of capitalized development costs
The Company undertakes internal development
projects for the advancement of electrolysers and
electrodes.
In the case of there being a trigger for a review of
impairment of completed development projects,
the Company performs a review on the carrying
amounts to determine whether there is any indi-
cation of impairment at the balance sheet date.
The completed development projects proceed
as expected, thus no impairment tests have been
made for the year.
In addition, the Company tests annually the re-
coverable amounts of the development projects in
progress to ensure that the capitalized costs have
not over-run their operational or commercial val-
ue. Management expects the market for electrol-
ysers will grow significantly in the coming years.
The key drivers and indicators of momentum in
the market for green hydrogen include societal
and political pressure to limit CO2 emissions,
regulatory push in national hydrogen roadmaps
as well as decreasing cost of green hydrogen. As
of 31 December 2022, the carrying amount of de-
velopment projects in progress is DKK 154,676
thousand (2021: DKK 30,843 thousand). At
year-end the company had solved the technical
issues that were confirmed by factory acceptance
tests and subsequent customer approval. The
Company has an increasing order backlog, and
the production ramp-up is progressing as expect-
ed. Therefore, the technical feasibility has been
demonstrated, and the practical ability to sell and
a market for the products exist. The recoverable
amount has been determined based on an exter-
nal valuation. The external valuation exceeds the
carrying amount with a substantial amount, even
though the required return rate includes a risk
premium reflecting the uncertainty related to the
Company's technical issues and delay in customer
deliveries.
Fair value of derivative financial instruments
The fair value of derivatives embedded in debt
host contracts, which are accounted for separate-
ly from the host contract, is determined using val-
uation techniques. The Company uses its judge-
ment to select appropriate valuation methods
and make assumptions that are mainly based on
Management's' expectations about unobservable
inputs. For details of the key assumptions used
and the impact of changes to these assumptions
see note 22 below.
Green Hydrogen Systems Annual report 2022 50
At a glance / Our business / Governance / Financial statements
Valuation of inventories and onerous contracts
As at 31 December 2021, a write-down of inven-
tory amounting to DKK 17,402 thousand was
recognised due to expected negative margins on
electrolysers under construction and late delivery
rebates related to some of these electrolysers.
As these onerous contracts related to units under
construction dedicated to fulfill specific customer
contracts, a write-down of inventories was
recognised. Assumptions and estimates relating
to a write-down of inventory are based on
Management's expectations to materials and
labour in determining the costs to complete the
construction and timing of the delivery of these
units. Management has accordingly revised its
estimate during 2022, whereby the write-down
of inventories has been increased by DKK 19,594
thousand. Thus, as at 31 December 2022 the
write-down in inventories amounts to DKK
36,996 thousand.
At 31 December 2022, Management has in ad-
dition recongised a provision related to onerous
customer contracts of DKK 10,476 thousand
where the unavoidable costs of fulfilling the ob-
ligations under the contract exceed the contract
amount. The separate provision is only recognised
in excess of any write-down made on dedicated
electrolysers included in inventory as described
above.
When determining whether a contract is loss-
making, the Company includes costs that are
incremental such as costs for material and labour
as well as an allocation of costs directly related to
contract activities.
Critical accounting judgements
Key accounting judgements are made when
applying accounting policies. Key accounting
judgements are the judgements made by the
Company that can have a significant impact on the
amounts recognised in the financial statements.
Revenue recognition
When the customer contracts include multiple
promises to be delivered to the customer, Man-
agement identifies the performance obligations
included in the contract. Contracts for delivery of
electrolysers do normally also include commis-
sioning of the equipment on the customer's
location and on-site maintenance and remote
monitoring and support as part of a multi-year
service agreement. Under IFRS 15, each distinct
good or service that an entity promises to trans-
fer is a performance obligation.
Judgement is particularly required to determine
whether the delivery of electrolysers and the
related commissioning service are separete
performance obligations within the context of
the contract. The customer is considered being
able to benefit from the commissioning together
with the electrolyser already provided under the
contract and the promisses are therefore capable
of being distinct. However, consideration is
especially given as to whether the commissioning
significantly integrates, customises or modifies
the electrolyser delivered to the customer. From
this consideration, Management has concluded
that delivery of electrolyser and commissioning
are separate performance obligations.
Depending on the terms of the individual con-
tract, control is assessed to have transferred to
the customer when either the factory acceptance
test or site acceptance test sucessfully has been
completed. Given the specific contractual terms
and conditions this is the point in time where:
- the customer has accepted the electrolyser,
- the customer has accepted transfer of title
related to the electrolyser,
- the customer has obtained physical posses-
sion of the electrolyser,
- the customer has the significant risks and
rewards of ownership.
Development costs
The Company capitalises costs for development
projects. Initial capitalisation of costs is based on
Management’s judgement that technological and
economic feasibility is confirmed, usually when
a development project has reached a defined
milestone. In determining the amounts to be
capitalised, Management makes assumptions
regarding the expected future cash generation of
the project, discount rates to be applied and the
expected period of benefits.
Note 3
Operating segments
Green Hydrogen Systems A/S serves one
segment, which is inherent in the way Executive
Management considers and operates the Com-
pany. The costs related to the main nature of the
business, being development and production of
electrolysers for on-site hydrogen production, are
not attributable to any specific revenue stream or
customer type and are therefore borne central-
ly. The results of the single reporting segment,
comprising the entire company, are shown in the
statements of comprehensive income.
The Executive Management is the Chief Oper-
ating Decision Maker (CODM), which is made
up of the senior leadership across the respec-
tive functional areas and is responsible for the
strategic decision-making and monitoring of the
operating results of the single operating segment
for the purpose of performance assessment.
Segment performance is evaluated by the CODM
based on profit or loss for the single segment and
is measured consistently with profit or loss in the
Financial Statements of the Company.
The CODM furthermore monitors revenue based
on the geography (based on the location of the
respective customers), product offering and
application.
Green Hydrogen Systems Annual report 2022 51
At a glance / Our business / Governance / Financial statements
DKK '000 2022 2021
Product revenue 9,711 4,931
Service and other revenue 711 242
Total revenue by product offering 10,422 5,172
Revenue recognised at a point in time 9,711 4,931
Revenue recognised over time 711 242
10,422 5,172
DKK '000 2022 2021
Wages and salaries 160,927 81,041
Pensions, defined contribution plans 19,965 9,558
Share-based payment 2,390 16,033
Other social security costs 2,363 1,078
Other employee costs 3,668 664
189,313 108,374
Average number of employees 242 110
DKK '000
Executive
Management
Board of
Directors
Total key
management
personnel
2022
Wages, salaries and board fees
8,285 4,182 12,467
Pensions, defined contribution plans 652 0 652
Share-based payment 3,806 0 3,806
Total remuneration 12,743 4,182 16,925
2021*
Wages, salaries and board fees
6,572 4,259 10,831
Pensions, defined contribution plans 494 0 494
Share-based payment 6,575 838
7,413
Total remuneration 13,641 5,097 18,738
* The company's CFO was registered as managing director in the Central Business Register in the period 1 March to
18 August. The full year remuneration related to the company's CFO is included.
Note 5
Employee costs
Note 4
Revenue from contracts with customers
Key management compensation
Key management consists of Executive
Management and Board of Directors.
The compensation paid or payable to key manage-
ment for employee services is shown below:
Information about revenue derived from individual
countries has been included in note 3.
The following table displays revenue by product offering:
Revenue of DKK 2,142 and 7,289 thousand,
respectively, are derived from two external
customers in 2022. Revenue of DKK 2,519, 1,490
and 657 thousand, respectively, are derived from
three external customers in 2021.
DKK '000 2022 2021
Denmark 368 899
Sweden 2,249 1,490
Norway 7,289 0
Other 516 2,783
Total Revenue 10,422 5,172
Non-current operating assets consist of intan-
gible assets (primarily development projects),
property, plant and equipment and right-of-use
assets are all geographically located in Denmark.
Revenue is derived in the following countries (based on customer location)
Note 3
Operations segments (continued)
Green Hydrogen Systems Annual report 2022 52
At a glance / Our business / Governance / Financial statements
Note 6
Depreciation and amortisation
DKK '000 2022 2021
Amortisation of intangible assets 13,523 6,303
Depreciation on property, plant and equipment 14,761 4,755
Depreciation on right of use assets 5,509 3,825
33,792 14,883
DKK '000 2022 2021
Outstanding at 1 January 0 0
Granted during the period 111 0
Forfeited during the periode (15) 0
Outstading at 31 December 97 0
Weighted average remaining contractual life of the
PSUs outstanding at end of period 2.3 years -
Note 7
Share-based payment plans
The Company operates various share-based
incentive programs comprising of:
• Performance Share Units program (PSU)
• Restricted Stock Units program (RSU)
• Warrant program
Performance Share Units program
In 2022, the Company introduced a Long-Term In-
centive (LTI) plan for the Executive Management
and key employees for the purpose of driving
value creation and rewarding the participants for
dedicated and focused results in driving the Com-
pany’s long-term performance and sustainability
aligned with the value created and strategic
ambitions. Participation in the program is at the
discretion of the Board of Directors.
Under the LTI, the participants are granted a
number of Performance Share Units (PSUs) free
of charge, which are vesting over a period of three
years. Vesting of the PSUs is subject to the partic-
ipant’s continued employment with the Company.
The number of PSUs actually vesting depends on
the fulfillment of predetermined performance
metrics in respect of revenue targets. The majori-
ty of the PSUs were granted in April 2022.
The participants do not receive any dividends and
are not entitled to vote in relation to the PSUs
during the vesting period.
Upon vesting, each PSU will automatically convert
into one ordinary share of the Company of a nom-
inal value of DKK 1 at an exercise price of nil. The
grant date fair value is recognised as an expense
over the 3-year vesting period.
The table below shows the PSUs granted and outstanding at the beginning and end of the year:
The grant date fair value of the RSU program was
DKK 7,395 thousand (based on 750,000 shares
expected to be provided) of which DKK 3,548
thousand was recognized in the income state-
ment for 2022 (2021: DKK 3,602 thousand). The
cost is recognized on a straight-line basis, as the
services are rendered, over the expected service
period.
No RSUs have been granted during the year
(2021: zero).
Warrant program
In 2020, the Company established a warrant pro-
gram to members of the Board of Directors, Exec-
utive Management and selected key employees.
The program was established with the purpose to
create a further incentive for the participants to
work for and contribute to future value added to
the Company, thus creating a positive develop-
ment in the market value of the Company's share.
Note 7
Share-based payment plans
PSUs granted in 2022 have a weighted average
fair value of 27.71 DKK per PSU. The fair value of
the rights corresponds to the grant date fair value
of the Company's ordinary share, as no dividend
is expected to be distributed during the vesting
period. 24,811 of the granted PSUs in 2022 were
to a member of the Executive Management.
Restricted Stock Units program
The RSU program was introduced on 1 November
2020 and involved the CEO. The program entitles
the CEO to receive shares in the Company,
without consideration, at the time the currently
controlling shareholder, does no longer hold any
shares in the Company (exit). The CEO is entitled
to receive shares corresponding to 0.75% of the
share capital at the time of exit. The program is
contingent on the CEO still being employed at
the time of exit. The participant in the RSU pro-
gramme is not entitled to receive dividend during
the vesting period.
Green Hydrogen Systems Annual report 2022 53
At a glance / Our business / Governance / Financial statements
Under the program, the participants were grant-
ed warrants in the Company for no consideration,
which entitled the warrant holder to subscribe
for A-shares in the Company of a nominal value of
DKK 1. The warrants were vesting over a period
of two years, proportionally once a year unless
vesting earlier in connection with an Exit-event.
At the occurrence of the Company's IPO in June
2021, all warrants fully vested conditional on the
holder's employment with the Company was not
terminated. All vested warrants are exercisable
only until the expiration date as specified in the
table further below.
Warrants provided to management were subject
to a lock-up arrangement and were exercisable
until 360 days after the exit-event. That condition
was added in 2021 resulting in an insignificant
revaluation of the warrants.
The cost of the warrant program has been rec-
ognised over the vesting period considering the
impact of accelerated vesting at the time of exit.
Upon the warrant holder's exercise, the Com-
pany is entitled to demand a cash settlement
of the warrant, so that instead of the warrant
holder subscribing for and receiving shares in the
Company, the warrant holder will receive a cash
settlement in an amount equal to the net value
of the warrant. The warrant program has been
classified as an equity-settled program. However,
Upon expiration of the lock-up period in June
2022 the Company made a one-time offer to
settle part of the warrants in cash based on the
Company's share price on 12 July 2022 less the
exercise price. In that connection, the related
warrants were reclassified from being equity-set-
tled to being cash-settled for which a liability of
DKK 11,073 thousand was recognized with a
corresponding entry to equity. The fair value at
Set out below are summaries of warrants granted, all under the same conditions:
Weighted average
exercise price per warrant
Number of warrants
(thousand)
Weighted average
fair value per warrant
(determined on grant date)
DKK '000 2022 2021 2022 2021 2022 2021
As at 1 January 2.47 2.47 1,935 3,388 8
Granted during the year 0 2.47 0 133 0 11
Exercised during the year 2.47 2.47 (1,935) (1,453) 8 7
Forfeited during the year 0 2.47
0
(133) 0 7
As at 31 December 0 2.47 0 1,935 0 8
Vested and exercisable
at 31 December 0 0
0
0 0 0
Note 7
Share-based payment plans (continued)
reclassification date amounting to DKK 11,073
thousand was recognized directly in equity. As
of 12 July 2022, the fair value of the liability
amounts to DKK 8,790 thousand. The fair value
adjustment of DKK 2,283 thousand was recog-
nized in employee costs. The remaining warrants
were exercised in July 2022 and were settled in
shares.
For warrants exercised during 2022, the weight-
ed average share price at the date of exercise was
DKK 14.1 (2021: DKK 40). The weighted average
exercise prices of warrants exercised during 2022
were DKK 2.47 (2021: DKK 2.47).
Green Hydrogen Systems Annual report 2022 54
At a glance / Our business / Governance / Financial statements
Exercise price Warrants (thousand)
Expiry date 2022 2021 2022 2021
Grant date
21 August 2020 28 August 2029 0 2.47 0 265
21 August 2020 31 December 2029 0 2.47 0 796
21 August 2020 25 February 2030 0 2.47 0 265
1 September 2020 31 August 2030 0 2.47 0 198
1 November 2020 31 December 2030 0 2.47 0 276
1 February 2021 31 January 2031 0 2.47
0
133
0 2.47
0
1,935
Weighted average remaining contractual life
of warrants outstanding at the end of period
(years) 0 8.07 0 0
Note 7
Share-based payment plans (continued)
DKK '000 2022 2021
Equity-settled programs
Warrant program 0 12,431
RSU program 3,547 3,602
PSU-program 1,125 0
Total expense for equity-settled programs 4,672 16,033
Cash-settled programs
Warrant program (2,282) 0
Total expense for cash-settled programs (2,282) 0
Total share-based payment expense 2,390 16,033
DKK '000 2022 2021
Total share-based payment expense for equity-settled
programs (4,672) 16,033
Reclassifying warrant program to be cash-settled 11,073 0
Total amount recognised in equity 6,401 16,033
Warrants outstanding at the end of the year have the following expiry date and exercise prices:
The fair value at grant date is determined using a
Black-Scholes Model calculation that takes into
account the share price at grant date, the exercise
price, the risk free interest rate for the term of
the warrants, the expected volatility and the term
of the warrant (the expected maturity).
The average model inputs for the warrants grant-
ed during the year ended 31 December 2021
included:
a. Share price at grant date: DKK 13.30
b. Exercise price: DKK 2.47
c. Expected price volatility of class-A shares:
82.60%
d. Risk-free interest rate: -0.53%
e. Expected maturity: 0.39 years
f. Probability of Exit: 1.00
The expected price volatility was based upon an
analysis of the historical volatility of peer-group
public companies and factors specific to Green
Hydrogen Systems A/S. The share price of the
class A-share was determined using interpolation
between two data points related to actual capital
transactions that occurred in 2020. The same
price was used for the grant in February 2021 as
the asumptions have not changed between the
grant dates.
The expected maturity corresponded to the
expected number of years until the occurrence of
an exit event. The expected likelihood of the oc-
currence of an exit event was taking into account
in determining the fair values of the grants.
Total expenses arising from share-based payment transactions
Total share-based payment expense recognised in the income statement for the period were:
The amount for equity-settled share-based payment programs recognised in equity relates to:
Green Hydrogen Systems Annual report 2022 55
At a glance / Our business / Governance / Financial statements
Note 8
Other operating income and deferred income
Government grants received but which have not yet been recognised in the income statement are
presented as deferred income. The movement in the balance of deferred income is as follows:
DKK '000 2022 2021
Government grants 3,330 1,584
Gains on disposals of property, plant and equipment
and leases 0 798
Total 3,330 2,382
Government grants recognised within other
operating income relate to the following:
Government grants related to income 1,985 391
Government grants related to assets, amortized 1,345 1,193
Total 3,330 1,584
DKK '000 2022 2021
Government grants at beginning of period 31,614 3,239
Grants received 5,013 29,959
Grants recognised as income (3,330) (1,584)
Government grants as of 31 December 33,297 31,614
Government grants related to income
Government grants related to income are rec-
ognized corresponding to the costs eligible for
grants. This is typically research and development
costs that do not meet the criteria for capitaliza-
tion. There can be unfulfilled conditions or other
contingencies attached to these grants. Such un-
ulfilled conditions or other contingencies relates
to the formal requirements such as finalizing the
grant project and reporting to grantor.
Government grants related to assets,
amortized
Government grants related to assets, amortized
are grants related to eligible costs that are cap-
italized as development projects. Recognition is
linear over the amortization period of the corre-
sponding assets. There are typically no unfulfilled
conditions or other contingencies attached to
these grants.
The Company did not benefit directly from any
other forms of government assistance.
DKK '000 2022 2021
Government grants receivable recognised
in other operating income, and presented
within other receivables in the balance sheet 0 0
Green Hydrogen Systems Annual report 2022 56
At a glance / Our business / Governance / Financial statements
Note 9
Other operating expenses
Note 11
Financial expenses
Note 10
Financial income
DKK '000 2022 2021
Sales and marketing costs 6,145 2,853
Administration costs 16,885 11,048
Consultancy services costs 25,106 29,482
Other general costs 32,283 21,776
Total 80,418 65,159
DKK '000 2022 2021
Interest expense on borrowings (2,954) (18,174)
Interest expense on lease liabilities
(443) (1,532)
Other financial costs
(1,462) 0
Interest on financial liabilities measured
at amortised cost (4,860) (19,706)
Fair value loss on derivatives at fair
value through profit or loss 0 (317,489)
Foreign exchange rate losses (278) (348)
(278) (317,837)
Of which capitalized 0 1,868
Other financial expense (0) 0
(5,138) (335,675)
Consultancy services costs incurred in 2022
amounting to DKK 0 thousand (2021: 11,951)
relate to non-recurring cost for external consul-
tants in respect of raise of funding and market
DKK '000 2022 2021
Interest income 83 308
Foreign exchange rate gains 206 329
Total 289 637
The capitalisation rate used to determine the
amount of borrowing costs to be capitalised is
the weighted average interest rate applied to the
Company's general borrowings during the year, in
this case 0 % (2021: 25 %) The Company has not
obtained specific borrowings for the purpose of
financing its development projects.
research. Other general costs relating to external
services and equipment have increased over the
period due to the increase of business activities
and number of employees.
Fair value loss on derivatives at fair value through
profit or loss amounting to DKK -317 million in
2021 related to an expected non-cash fair value
adjustment mechanism derived from the convert-
ible loan facility entered in December 2020.
Green Hydrogen Systems Annual report 2022 57
At a glance / Our business / Governance / Financial statements
Note 12
Tax on profit for the period
DKK '000 2022 2021
Current tax on profits for the period 5,500 5,500
Deferred tax 0 0
5,500 5,500
Aggregate current and deferred tax arising in the year
and not recognised in net profit or loss or other com-
prehensive income but directly debited or credited to
equity:
Deferred tax: Share-based payment 0 0
Reconciliation of effective tax rate
Calculated 22.0% tax on loss for the period before
income tax (63,319) (109,642)
Calculated 22.0% tax on loss for Other comprehensive
income for the year (5,276) (478)
Tax effects of:
Permanent differences between tax
and accounting purposes:
Non-deductible part of consultancy services, cf. note 9 0 2,018
Fair value adjustments, cf. note 11 0 69,848
Other (10,673) 3,615
Change in unrecognized deferred tax asset 73,768 29,139
63,095 104,620
Income tax as included in the statement of
profit or loss (5,500) (5,500)
Effective tax rate 2% 1%
Current tax on losses for the periods are originat-
ing from the tax credit scheme for research and
development costs, under which the tax value of
accumulated tax losses up to DKK 25 million are
paid to the Company.
Green Hydrogen Systems Annual report 2022 58
At a glance / Our business / Governance / Financial statements
Note 13
Intangible assets
Research and development costs that are not
eligible for capitalisation have been expensed in
the period incurred and are included in the in-
come statement within their relevant nature. In
2022, this amounted to DKK 32,802 thousand
(2021: DKK 7,172 thousand).
Development projects in progress includes the
Company's ongoing developement activities
realted to electrolysers and electrods. Devel-
opment projects in progress are not amortised
but are tested for impairment annually. There
have been no impairments related to these in
progress development projects for 2022 (2021:
nill). DKK 73,165 thousand relate to the deve-
lopment of the A-series electrolysers and DKK
56,571 thousand relate to the development of
the X-series electrolysers.
DKK '000
Completed
development
projects
Other
intangibles
Development
projects in
progress Total
Cost:
At 1 January 2021
5,511 1,518 11,899 18,928
Additions during the year 0 3,905 44,852 48,757
Transferred 25,908 0 (25,908) 0
At 31 December 2021 31,419 5,423 30,843 67,685
Accumulated amortisation and impairment:
At 1 January 2021
(1,837) (632) 0 (2,469)
Amortisation for the year (5,054) (1,249) 0 (6,303)
At 31 December 2021 (6,891) (1,881) 0 (8,772)
Carrying amount 31 December 2021 24,528 3,542 30,843 58,913
Cost:
At 1 January 2022
31,419 5,423 30,843 67,685
Additions during the year 4,740 123,833 128,573
At 31 December 2022 31,419 10,163 154,676 196,258
Accumulated amortisation and impairment:
At 1 January 2022
(6,891) (1,881) 0 (8,772)
Amortisation for the year (10,473) (3,050) 0 (13,523)
At 31 December 2022 (17,364) (4,931) 0 (22,295)
Carrying amount 31 December 2022 14,055 5,232 154,676 173,962
Green Hydrogen Systems Annual report 2022 59
At a glance / Our business / Governance / Financial statements
Note 14
Property, plant and equipment
DKK '000
Plant and
machinery
Leasehold
improve-
ments*
Other fixtures
and fittings,
tools and
equipment Buildings
Real estate and
similar rights
Assets under
construction Total
Cost:
At 1 January 2021 0 10,198 11,043 0 0 0 21,241
Additions during the year 7,014 0 12,684 78,885 11,550 35,284 145,417
Transferred 8,487 (10,198) (8,406) 10,117 0 0 0
At 31 December 2021 15,501 0 15,322 89,002 11,550 35,284 166,658
Accumulated amortisation and impairment:
At 1 January 2021 0 (55) (551) 0 0 0 (606)
Depreciation for the year (1,983) 0 (1,764) (1,008) 0 0 (4,755)
Transferred 0 55 (55) 0 0 0 0
At 31 December 2021 (1,983) 0 (2,370) (1,008) 0 0 (5,361)
Carrying amount 31 December 2021 13,518 0 12,951 87,994 11,550 35,284 161,297
Cost:
At 1 January 2022 15,501 0 15,322 89,002 11,550 35,284 166,658
Additions during the year 1,446 0 23,936 7,061 3,631 131,630 167,705
Disposals during the year (139) 0 492 (10) 0 0 343
At 31 December 2022 16,808 0 39,750 96,053 15,181 166,914 334,706
Accumulated amortisation and impairment:
At 1 January 2022 (1,983) 0 (2,370) (1,008) 0 0 (5,361)
Depreciation for the year (4,690) 0 (7,601) (3,125) 0 0 (15,416)
Disposals during the year 139 0 (492) (10) 0 0 (343)
At 31 December 2022 (6,534) 0 (10,463) (4,123) 0 0 (21,120)
Carrying amount 31 December 2022 10,274 0 29,287 91,930 15,181 166,914 313,586
* Transferred leasehold improvements relate to improvements and fittings on leased buildigs that was purchased during the year.
Green Hydrogen Systems Annual report 2022 60
At a glance / Our business / Governance / Financial statements
Note 15
Financial assets at fair value through
other comprehensive income
DKK '000
31 December
2022
31 December
2021
Cost at January 1 694,465 0
Additions for the year 103,367 699,959
Disposals for the year (21,699) (5,494)
Cost at December 31 776,133 694,465
Accrued interest January 1 (800) 0
Accrued for the year (4,139) (800)
Accrued interest (4,939) (800)
Fair value adjustment at January 1 (2,171) 0
Fair value adjustment for the year (23,981) (2,171)
Fair value adjustment at December 31 (26,152) (2,171)
Net book value at December 31 745,042 691,494
Financial assets at fair value through other
comprehensive income
Non-current assets 562.443 691.494
Current assets 182.600 0
745.042 691.494
DKK '000
31 December
2022
31 December
2021
Listed bonds
Gains / losses recognised in other comprehensive
income (23,981) (2,171)
Interest expence from investments held at fair value
through other comprehensive income recognised in
the income statement (1,290) (800)
(25,271) (2,971 )
During the year, the following gains and losses were recognised in the income statement and
other comprehensive income related to the Company's financial asset at fair value through other
comprehensive income:
Green Hydrogen Systems Annual report 2022 61
At a glance / Our business / Governance / Financial statements
Note 16
Deferred tax
As of 31 December 2022, the Company has a de-
ferred tax asset of DKK 116,891 thousand (2021:
DKK 43,123 thousand) which has not been
recognised in the balance sheet. The deferred
tax asset include tax losses to be carried forward
of DKK 637,134 thousand (2021: DKK 237,649
thousand) which is the result of previous years’
DKK '000
31 December
2022
31 December
2021
Intangible assets (37,208) (12,181)
Deferred income 7,325 1,793
Inventories 8,043 3,829
Right of use assets (1,732) (1,812)
Lease liabilities 1,845 1,713
Tax losses carried forward 140,170 52,283
Other (1,552) (2,502)
116,891 43,123
Deferred tax asset not recognized in the balance sheet 116,891 43,123
Deferred tax asset 0 0
taxable income. The tax loss carry-forwards are
available indefinitely for offsetting against future
taxable profits of the Company. Due to uncertain-
ties regarding future utilisation, the Company has
decided not to recognise net deferred tax assets
and tax asset on the tax losses carried forward.
Green Hydrogen Systems Annual report 2022 62
At a glance / Our business / Governance / Financial statements
Note 17
Leases
The Company's lease agreements relate primarily
to leases of properties, furniture and vehicles.
Leases of vehichles are typically made for fixed
periods of 3-4 years and do normally not include
extension options. Leases of properties are nego-
tiated on an individual basis and contain a wide
range of different terms and conditions. The prop-
erty leases are in general of a short-term nature.
The lease agreements do not impose any cov-
enants, but leased assets may not be used as
security for borrowing purposes.
DKK '000
31 December
2022
31 December
2021
Right-of-use assets
Properties 2,071 3,730
Vehicles 4,065 3,480
Furniture 1,739 1,025
7,875 8,235
Lease liabilities
Current 3,440 3,460
Non-current 4,560 3,938
8,000 7,398
Additions to the right-of-use assets were 5,492 3,296
Disposals to the right-of-use assets were 1,105 0
Additions to the right-of-use assets do not include
leased properties that was leased in the beginning
of 2021 and then during the year was purchased.
DKK '000 2022 2021
Depreciation charge of right-of-use assets
Properties (4,733) (1,473)
Vehicles (2,500) (1,417)
Furniture (471) (67)
(7,705) (2,957)
Interest expense (included in finance expenses) 443 1,532
Expense relating to short-term leases
(included in other operating expenses) 932 863
The total cash outflow for leases 5,922 7,052
The statement of profit or loss shows the follow-
ing amounts relating to leases:
A matirity analysis of lease payments has been
inlcuded in note 23.
Less than 1 year
Between 1
and 5 year
More than
5 years Total
DKK '000 2022 2021 2022 2021 2022 2021 2022 2021
622 1,481 2,680 2,615 0 505 3,302 4,601
The total future undiscounted cash outflows
relating to leases that have not yet commenced
amount to DKK 8,696 thousand (2021: DKK
4,601 thousand), which falls due as follows:
Green Hydrogen Systems Annual report 2022 63
At a glance / Our business / Governance / Financial statements
Note 18
Inventory
DKK '000
31 December
2022
31 December
2021
Inventory
Raw materials 115,022 45,099
Work in progress 54,982 24,432
Finished goods 0 3,892
Total 170,004 73,423
The costs of individual items of inventory are
determined using the FIFO-principle.
Inventories recognised as an expense during
the year ended 31 December 2022 amounted
to DKK 99,556 thousand (2021: DKK 57,323
thousand). These were included in "changes in
inventory of finished goods and work in progress"
and "raw materials and consumables used".
Write-downs of inventories to net realisable
value amounted to DKK 36,993 thousand (2021:
DKK 17,402 thousand). These were recognised
as an expense during the period and included in
"changes in inventory of finished goods and work
in progress". The amount for 2022 includes write-
downs of inventory items that are dedicated to
fulfill customer contracts of DKK 26,493 (2021:
DKK 17,402 thousand). Further information is
provided in note 2.
Note 19
Trade receivables
DKK '000
31 December
2022
31 December
2021
1 January
2021
Trade receivables 10,861 3,681 4,052
Trade receivables are amounts due from cus-
tomers for delivery of electrolysers and services
provided in the ordinary course of business.
Payments are generally due for settlement within
30 days after invoice date, and are therefore all
classified as current.
Due to the short-term nature of the current
receivables, their carrying amount is considered
to approximate their fair value.
The Company's customers are generally large
international industrial companies with the
adequate ressources and capital available for
investing in electrolysers and in the most recent
green technology as provided by the Company.
The customers does therefore normally have a
high credit quality.
The Company's contracts for delivery of elec-
trolysers include milestone payments. At time
of delivery, the Company has normally received
prepayments of up to 90% of the total consider-
ation, which naturally reduces the credit risk on
the remaining amout outstanding. Customers are
evaluated induvidually and if there are any doubts
about the customers solvency is the Company's
policy to evaluate the customer's credit rating
provided by external credit rating agencis, prior
to entering into a binding sales agreement, In ad-
dition, The Company has historically not incurred
any material losses from trade receivables. The
existence of pandemics is not expected to have
any significant impact on the Company's expected
credit losses.
On that basis, Managment has concluded that
the Company's credit risk from trade receivables
is not material, and has therefore not recognised
any significant allowance for expected credit
losses related to trade receivables.
Green Hydrogen Systems Annual report 2022 64
At a glance / Our business / Governance / Financial statements
Note 20
Contract balances
DKK '000
31 December
2022
31 December
2021
Trade receivables 10,861 3,681
Contract liabilities 41,428 27,576
As described above in note 19, the Company
receives milestone payments from the custom-
ers before delivery of electrolysers. Milestone
payments received are recognised as contract
liabilities until revenue is recognised.
The amount of contract liabilities has increased
compared to previous years in line with the Com-
pany's increased activities, whereby the Company
has received prepayment from new contracts on
large projects.
The contract balances primarily relates to deliv-
ery of electrolysers, where prepayments have
been received from the customers but where con-
trol has not yet been transferred to the customer.
DKK 2,485 thousand of the opening balance of
contract liabilities in 2022 have been recognised
during the year (2021: 4,200).
Amount of the transaction price allocated to
delivery of electrolysers, commissioning of the
equipment and service agreement is DKK 134
million. Management expects that 80-90% of the
transaction price allocated to remaining perfor-
mance obligations as of 31 December 2022 will
be recognised as revenue during the next report-
ing period (2023). The remaining 10-20% will be
recognised in the financial year of 2024 to 2028.
For contracts with a duration of 1 year or less the
aggregate amount of transaction price allocated
to performance obligations that are unsatisfied as
of the end of the reporting period, has not been
disclosed in accordance with the practical expe-
dient in IFRS 15. As the Company's contracts for
delivery of electrolysers in 2022 had a duration
of one year or less the aggregate amount of trans-
action price allocated to performance obligations
that were unsatisfied as of the end of the report-
ing period, has not been disclosed in accordance
with the practical expedient in IFRS 15.
The transaction price allocated to unsatisfied
service and maintenance contracts that are billed
based on time incurred are not disclosed as per-
mitted under IFRS 15.
The Company has recognised the following assets
and liabilities related to contracts with customers:
Note 21
Share capital
31 December 2022 31 December 2021
DKK '000
Number of
shares
Nominal
value (DKK)
Number of
shares
Nominal
value (DKK)
The share
capital comprise:
A-shares 83,166 83,166 81,987 81,987
Share capital
(fully paid) 83,166 83,166 81,987 81,987
All shares have nominal value of DKK 1. All shares
issued are fully paid. Each share carry one vote.
A-Shares
31 December
2022
31 December
2021
DKK '000
Number of
shares
Number of
shares
Changes in share capital
Opening balance
81,987 10,231
Capital increase, cash
0 31,682
Exercise of warrants, cash
1,179 1,453
Conversion of loan into shares
0 12,047
Conversion of shares
0 26,574
Total 83,166 81,987
Green Hydrogen Systems Annual report 2022 65
At a glance / Our business / Governance / Financial statements
Note 21
Share capital (continued)
Note 22
Borrowings
The Company's borrowings consist of the following:
DKK '000
31 December
2022
31 December
2021
Secured borrowings 500,000 0
Total borrowings 500,000 0
Current 500,000 0
Non-current 0 0
Total borrowings 500,000 0
At 31 December 2022, the Company's borrow-
ings amount to DKK 500 million (2021: DKK 0)
which are related to the repurchase agreement
(repo) the Company entered into during 2021
involving its holdings of listed bonds.
The secured borrowings in the repo are denom-
inated in DKK and carry a variable interest rate
(repo rate). Generally the borrowings have a ma-
turity of 1 month, which though may be up to 12
months. Thus, the secured borrowings are all clas-
sified as current liabilities in the balance sheet.
As substantially all of the risk and rewards of
ownership of the bonds have retained with
the Company, these are not derecognised. The
Company therefore continues to recognise the
transferred assets in their entirety in the balance
sheet. The Company considers that the 'held to
collect and selling' business model remains ap-
propriate for these financial assets and continues
therefore to measure them at fair value through
other comprehensive income.
At 31 December 2022, the carrying amount
of the listed bonds transferred under the repo
amounts to DKK 500 million (2021: DKK 0).
In connection with the IPO, the Company
incurred in 2021 transaction cost for advisory,
fees to investment bankers etc. amounting to
DKK 115 million of which DKK 92 million were
deducted to equity.
No dividends have been declared or paid out for
2022 or 2021.
In 2021, the B shares, which carried certain
special rights, were converted into A shares at a
conversion rate of 1:1.
Green Hydrogen Systems Annual report 2022 66
At a glance / Our business / Governance / Financial statements
Note 23
Financial risk management
Financial risk factors
Exposure to financial risk is an embedded part of
doing business. This includes risks from financial
instruments to which the Company is exposed,
and which can have an impact on the Company's
financial statements.
The Company’s financial liabilities comprise pri-
marily of secured borrwings, lease liabilities and
trade payables. The main purpose of the financial
liabilities is to finance the Company’s operations.
The Company’s financial assets include primarily
trade receivables, investment in listed bonds and
cash.
The financial risks that the Company is exposed to
include credit and liquidity risk as well as market
risk related to changes in market interest rates.
All of the Company's holdings of bonds are traded
in established markets.
The Company's exposure to those risks, including
our objectives, policies and processes for manag-
ing those risks are described below.
There has been no change in the Company's
financial risk management policies compared to
last year.
Market risk
Interest rate risk
Interest rate risk is the risk that the fair value or
future cash flows of a financial instrument will
fluctuate because of changes in market interest
rates.
The Company's exposure to interest rate risk is
primarily related to the cash balances deposited
with banks, investment in listed bonds as well as
secured borrowings.
The securities in which the Group has invested
bear interest rate risk, as a change in market
derived interest rates may cause fluctuations in
the fair value of the investments.
To control and minimize the interest risk, the
Company maintains an investment portfolio
in a variety of securities with a relatively short
effective duration with both fixed and variable
interest rates.
As of 31 December 2022, the portfolio has an
average effective duration of approximately 1,2
years (2021: 2.7 years) and no securities have an
effective duration of more than 3 years (2021: 4
years), which means that a change in the interest
rates of one percentage point will cause the fair
value of the securities to change by approximately
2.5% (2021: 3.7%). Due to the short-term nature
of the current investments, we consider our
current exposure to changes in fair value due to
interest rate changes to be insigificant compared
to the fair value of the portfolio.
DKK '000
Impact on post
tax profit
Impact on
equity
2022
Interest rate - increase of 100 basis points
5,613 (2,332)
Interest rate - decrease of 100 basis points
(5,613) 2,544
2021
Interest rate - increase of 100 basis points (8,322) (7,924)
Interest rate - decrease of 100 basis points
8,658 9,066
DKK '000 2022 2021
Years of maturity
2023 184,656 192,111
2024 356,667 269,410
2025 95,500 104,288
2026 112,689 125,685
Total 749,511 691,494
It is the Company's policy not to hedge its
exposure to interest rate risk.
Sensitivity from changes in interest rates:
A reasonably possible change in the market inter-
est rate compared to the interest rates as of the
end of the reporting period will have the following
hypothetical impact on profit after tax and equity:
Green Hydrogen Systems Annual report 2022 67
At a glance / Our business / Governance / Financial statements
The sensitivity analysis is based on the assump-
tion that all other variables and exposures
remains constant. The impact on post tax profit
is based on those financial instruments that were
recognised at the respective balance sheet dates.
The sensitivity analysis does not consider impact
from repayments and other changes in borrow-
ings made during the year. Part of the financial
assets are floting interest bonds and a change in
interest rate is expected to only have an insignif-
icant impact on fair value. Instead the interest
payments will change by approximately DKK
4,700 thousand and impact on profit or loss.
Foreign currency risk
Foreign currency risk is the risk that the fair value
or future cash flows of a balance sheet exposure
will fluctuate because of changes in foreign
exchange rates.
The Company primarily generates its sales in
DKK and EUR. Purchases are also primarily made
in DKK and EUR; with only minor purchases made
in USD. As the DKK is pegged against the EUR,
the Company's exposure to changes in the DKK/
EUR exchange rate is insignificant.
The Company's exposure from movement in the
DKK/USD exchange rate is considered immaterial.
Credit risk
Credit risk arises primarily fro m the Company's
cash position, investment in listed bonds as well
as credit exposures from outstanding receivables
from customers. The sensitivity analysis is based
on the assumption that all other variables and
exposures remains constant.
The Company's exposure and policy for manag-
ing credit risk from trade receivables has been
described in note 19.
The Company has a significant counterparty risk
related to deposit with banks, as the Company's
cash balance at 31 December 2022 amounts
to DKK 95,340 thousand (2021: DKK 266,924
thousand). To mitigate this risk, the Company only
enters into money market deposits with financial
Note 23
Financial risk management (continued)
counterparties possessing a satisfactory long-term
credit rating from an internationally recognized
agency (credit rating of minimum A-). Furthermore,
maximum credit lines defined for each counterpar-
ty diversify the overall counterparty risk.
In addition, the Company is exposed to credit risk
from its investment in listed bonds, which includ-
ing interest receivables amouts to DKK 749,511
thousand as at 31 December 2022 (2021: DKK
691,494 thousand). To manage and reduce credit
risks on bonds, the Company's policy is to ensure
only securities from investment grade issuers are
eligible for our portfolios. No issuer of bonds can
be accepted if it is not assumed that the credit
quality of the issuer would be equal to a AAA-rat-
ing.
The carrying amounts represent the maximum
credit exposure.
Liquidity risk
Prudent liquidity risk management implies
maintaining sufficient cash and the availability of
funding through an adequate amount of com-
mitted credit facilities to meet obligations when
due. Due to the dynamic nature of the underlying
businesses, the Company maintains flexibility in
funding by maintaining availability under commit-
ted credit lines.
The Company’s policy is to secure adequate
liquidity to always meet the planned future
financial and operational payment obligations
for minimum the next 12 months period. The
company has a liquidity position of DKK 95,340
thousand. The company monitors the liquidity
risk through follow up against plans. In addition,
the Company has placed its excess cash hold-
ings in listed bonds, which are considered being
part of its capital ressurces. It is the Company's
intention to hold the bonds until maturity, but are
however available for sale if necessary. In addition
to increase the flexibility of the Company's catpial
ressources the Company has entered into a
repurchase agreement (repo), which covers all of
the Company's listed bonds.
Green Hydrogen Systems Annual report 2022 68
At a glance / Our business / Governance / Financial statements
DKK '000 Less than 1 year
Between
1 and 5 year
More than
5 years Total
As at 31 December 2022
Non-derivatives
Borrowings 500,000 0 0 500,000
Trade payables 65,127 0 0 65,127
Lease liabilities 3,440 4,560 0 8,000
568,566 4,560 0 573,126
Derivatives
Exit-payment 3,000 0 3,000
3,000 0 0 3,000
As at 31 December 2021
Non-derivatives
Borrowings, current and non-current 0 0 0 0
Trade payables 42,850 0 0 42,850
Lease liabilities 3,460 3,938 0 7,398
Total non-derivatives 46,310 3,938 0 50,247
Derivatives
Exit-payment 3,000 0 0 3,000
Total derivatives 3,000 0 0 3,000
Note 23
Financial risk management (continued)
The exit-payment derivative was included in other
payables in the balance sheet as of 31 December
2022 and 2021.
The maturity analysis is based on the following
assumptions:
• The amounts disclosed in the table are the
contractual undiscounted cash flows (includ-
ing interest payments). Balances due within
12 months equal their carrying balances as
the impact of discounting is not significant.
• The exit-payment derivatives are presented
with their maximum amount payable and
within the time-band the potential payments
could earliest possibly occur.
• Payments for lease liabilities includes only
lease agreements which have commenced
before the end of the reporting period.
Maturity analysis.
The tables below analyse the Company’s financial
liabilities into relevant maturity groupings based
on their contractual maturities.
Green Hydrogen Systems Annual report 2022 69
At a glance / Our business / Governance / Financial statements
DKK '000
31 December
2022
31 December
2021
Financial assets and liabilities
per measurement category
Financial assets
Finacial assets at fair value through other
comprehensive income
Listed bonds 745,042 691,494
745,042 691,494
Financial assets at amortised cost:
Trade receivables 10,861 3,681
Cash and cash equivalents 95,340 266,924
Total 106,202 270,605
Financial liabilities
Financial liabilities at fair value
through profit or loss:
Exit-payment derivative 3,000 3,000
Total 3,000 3,000
Financial liabilities at amortised cost:
Trade payables 65,127 42,850
Borrowings, current and non-current 500,000 0
Lease liabilities, current and non-current 8,000 7,398
Total 573,127 50,247
DKK '000
31 December
2022
31 December
2021
Recurring fair value measurements
Financial assets at fair value through other
comprehensive income:
Listed bonds 745,042 691,494
Total financial assets - level 1 745,042 691,494
Financial liabilities measured at fair value
Exit-payment derivatives 3,000 3,000
Total financial liabilities - level 3 3,000 3,000
counted cash flows reflecting possible triggering
events, the probability and expected timing. In
2022 and 2021 the discounted cash flows are
considered insignificant and the liability is includ-
ed 100%.
An increase in the probability weighted time
to maturity will reduce the fair value of the
exit-payment liability. However, Management did
at the end of the reporting period for 2022 and
2021 not consider any significant change in the
Note 23
Financial risk management (continued)
Measurement and fair value hierarchy
This section explains the judgements and esti-
mates made in determining the fair values of the
financial instruments that are recognised and
measured at fair value in the financial statements.
To provide an indication about the reliability of
the inputs used in determining fair value, the
Company has classified its financial instruments
into the three levels prescribed under the
accounting standards. The fair value of financial
instruments traded in active markets is based on
quoted market prices at the end of the reporting
period. These instruments are included in level
1. If one or more of the significant inputs is not
based on observable market data, the instrument
is included in level 3.
For financial assets and liabilities of short-term
nature, such as trade receivables and trade
payables, the carrying amount approximates their
fair value. For borrowings, the fair values are not
materially different from their carrying amounts,
since the interest payable on those borrowings is
close to current market rates.
Exit-payment derivatives
The fair value of the exit-payment derivatives
were based on the probability weighted dis-
Green Hydrogen Systems Annual report 2022 70
At a glance / Our business / Governance / Financial statements
The were no changes in level 3 items during the
year. The following table presents the changes in
level 3 items for 2021:
DKK '000
Conversion
option liability
Exit-payment
derivatives Total
Opening balance 1 January 2021
4,591 3,410 8,001
Gains recognised in financial
income* 0 (410) (410)
Fair value losses recognised in
financial expenses
317,489 0 317,489
Exercise (322,080) 0 (322,080)
Closing balance
31 December 2021 0 3,000 3,000
* includes unrealised losses recognised in
profit or loss attributable to balances held at
the end of the reporting period
0 (410) (410)
Note 23
Financial risk management (continued)
expected maturity to be a realistic alternative.
The probability weighted cash flows reflected the
maximum amount payable, which Management
considers being the most realistic outcome.
The recurring fair value measurement required
for the Company's financial liabilities are moni-
tored by Management. The significant unobserv-
able inputs are based updated at least by the end
of each reporting period to reflect Management's
most recent expectations. The has been no
change in the valuation technique compared to
previous years.
The conversion option liability was related to a
convertible loan from 2020, which was converted
in 2021.
Green Hydrogen Systems Annual report 2022 71
At a glance / Our business / Governance / Financial statements
Note 24
Earnings per share
Note 25
Provisions
The calculation of diluted earnings per share does
not include potential ordinary shares that are
anti-dilutive.
At 31 December 2022, the Company has
recognised a provision for onerous contracts of
DKK 10,476 thousand related to fulfilment of
ongoing customer contracts. The amount reflects
the unavoidable costs of meeting the Company's
obligations under the contract exceeding the eco-
nomic benefits to be received under it and which
DKK '000 2022 2021
Net loss attributable to the ordinary equity holders
of the Company used in calculating basic and diluted
earnings per share (282,316) (492,871)
Basic earnings per share:
Issued ordinary shares, beginning of period 81,987 36,805
Effect of shares issued, weighted-average 559 25,995
Weighted-average number of ordinary shares
used as the denominator in calculating basic
earnings per share 82,546 62,800
Basic earnings per share for loss attributable to
the ordinary equity holders of the Company (3.42) (7.85)
Diluted earnings per share for loss attributable
to the equity holders of the Company (3.42) (7.85)
DKK '000
Onerous
contracts Warranty Total
Carrying amount 1 January 2022 0 3,114 3,114
Additional provisions recognised 10,476 4,468 14,944
Amounts used during the year 0 (3,114) (3,114)
Carrying amount
31 December 2022 10,476 4,468 14,944
The Company's provisions are pre-
sented as follows in the balance sheet:
Non-current liabilities 0 0 0
Current liabilities 10,476 4,468 14,944
Total 10,476 4,468 14,944
Note 26
Capital management
The Company's objective when managing capital
is to safeguard the ability to continue as a going
concern, so that the Company can fund its con-
tinuing growth and development while maintain-
ing an optimal capital structure to reduce the cost
of capital.
The Company has during 2022 grown significant-
ly. The financial policies are being refined on an
ongoing basis to support the Company’s risk man-
agement policies and objectives. The Company
intends to apply all available financial resources
for the purposes of current and future business
development. The Company does not expect to
make dividend payments within the foreseeable
future. The Company does not enter into any
speculative transactions.
are not included in the write-down of dedicated
inventory, cf. note 18.
Provision is made for estimated warranty claims
in respect of electrolysers sold which are still un-
der warranty at the end of the reporting period.
These claims are expected to be settled in the
next financial year.
Green Hydrogen Systems Annual report 2022 72
At a glance / Our business / Governance / Financial statements
DKK '000 2022 2021
PwC
Audit fee 1,175 1,179
Tax and VAT services 147 197
Audit-related services 0 8,504
Other services 260 5,854
Total 1,582 15,734
Note 28
Fee to auditors appointed at the general meeting
Guarantees
The Company has provided payment guarantees
of DKK 16 millions to suppliers in relation to
the expansion of its current facilities in Kolding,
Denmark. Cash balances of 9 millions and listed
bonds of 7 millions related to these guarantees
are restricted.
Contingent liabilities
None
DKK '000
31 December
2022
31 December
2021
Capital commitments
Property, plant and equipment 16,000 107,000
Note 27
Commitments and contingent liabilities
Commitments
On July 2021 the Board of Directors has in line
with the company’s strategy approved its planned
second expansion phase of its current combined
manufacturing, R&D, and office facilities in Kold-
ing, Denmark.
The Company has signed agreements amounting
to DKK 168 million in construction of the phase 2
expansion whereof DKK 152 million have effect
in 2022 and earlier.
The Company has in 2023 been granted a
mortgage loan on the new facilities at Nordager
21, Kolding amounting to DKK 120 million. In
addition to the mortgage loan the Company
targets a capital raise during the first half of
2023. Gross proceeds of up to DKK 650 million
are expected from a contemplated rights issue
with pre-emptive rights for the existing share-
holders. The Company remains in dialogue with
several of its current larger shareholders as well
as potential new shareholders regarding such
potential capital increase.
Note 26
Capital management (continued)
In 2022, the fee for non-audit services delivered
by PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab amounted to TDKK 407
relating to tax services and consulting services.
In 2021, the fee for non-audit services delivered
by PricewaterhouseCoopers Statsautoriseret Re-
visionspartnerselskab amounted to TDKK 14,455
and mainly consisted of services related to and
performed before the listing of Green Hydrogen
Systems.
Green Hydrogen Systems Annual report 2022 73
At a glance / Our business / Governance / Financial statements
Non-cash changes
DKK '000 1 January 2021 Cash flows New leases*
Changes in
fair value
Other
changes**
31 December
2021
Borrowings, current and non-current 170,908 (19,829) 0 0 (151,079) 0
Lease liabilities 14,531
(4,658) 9,188 0 (11,664)
7,397
Exit-payment derivative*** 3,410 0 0 (410) 0 3,000
Total liabilities from financing activities 188,849 (24,487) 9,188 (410) (165,743) 10,397
* Including remeasurements.
** Other changes include non-cash movements. The adjustments include DKK 154,079 thousand which was converted into shares in 2021.
*** Other changes include non-cash movements. The adjustments include DKK 11,664 thousand which relates to disposal of property.
Note 29
Changes in liabilities arising from financing activities
Non-cash changes
DKK '000 1 January 2022 Cash flows New leases
Changes in
fair value
Other
changes
31 December
2022
Borrowings, current and non-current 0 500,000 0 0 0 500,000
Lease liabilities 7,397
(4,547) 5,150 0 0
8,000
Exit-payment derivative 3,000 0 0 0 0 3,000
Total liabilities from financing activities 10,397 495,453 5,150 0 0 511,000
Green Hydrogen Systems Annual report 2022 74
At a glance / Our business / Governance / Financial statements
Note 30
Related parties
The Company do not have any parties with con-
trolling interest end of 2022. Until the IPO in June
2021, Nordic Alpha Partners Fund I K/S was the
ultimate controlling party.
Nordic Alpha Partners Fund I K/S has significant
influence due to ownership of shares.
No subsequent events have occurred after the
balance sheet date that required adjustment to
or disclosure in the Financial Statements of the
Company.
Note 32
Cash flow specifications
Transactions with key management personnel
Information about remuneration to key manage-
ment personnel has been disclosed in note 5.
The following transactions were carried through with related parties:
DKK '000 2022 2021
Transactions with entities
with controlling influence
Proceeds from loans 0 0
Interest accrued on loans 0 1,407
Conversion of loans to equity 0 (38,604)
Outstanding balances with entities
with controlling influence
Convertible loan* 0 0
Transactions with entities with
significant influence
Proceeds from loans 0 0
Repayment of loans 0 0
Interest accrued on loans 0 4,433
Conversion of loans to equity 0 (121,602)
31 December
2022
31 December
2021
Outstanding balances with entities with significant
influence
Convertible loan* 0 0
* The convertible loan issued in December 2020 is presented within borrowings in the balance sheet.
For further information about the terms and conditions for the loan reference is made to note 22.
DKK '000 2022 2021
Changes to net working capital
Decrease/(increase) in trade receivables (7,181) 371
Decrease/(increase) in deposits (381) 5,678
Decrease/(increase) in other assets (107,303) (84,312)
Decrease/(increase) in prepayments (8,698) (1,586)
Decrease/(increase) in trade payables 22,277 17,492
Decrease/(increase) in other liabilities 16,207 28,385
Decrease/(increase) in contract liabilities 13,852 19,687
(71,226) (14,286)
Adjustments
Income tax (5,500) (5,500)
Amortization of intangible assets 13,523 6,303
Depreciations of tangible assets
and right-of-use assets 20,269 8,580
Share-based payment 2,390 16,033
Finance expenses, net 4,849 335,038
Other 29,352 2,130
64,884 362,584
Note 31
Events after the balance sheet date
Green Hydrogen Systems Annual report 2022 75
At a glance / Our business / Governance / Financial statements
Definition of Terms
The financial ratios have been calculated in accordance with the recom-
mendations of the Association of Danish Financial Analysts.
Financial key ratios
Solvency ratio (%): Equity as a percentage of
total assets
Return on invested capital (%): Net profit/(loss)
for the period as a percentage of total assets,
average
Return on equity (%): Net profit/(loss) for the
period as a percentage of total equity, average
Other non-IFRS performance measures
The financial review includes other performance
measures which are not defined according to
IFRS. The Company usees these other per-
formance measures as we believe that these
financial measures provide valuable information
to our stakeholders and management as supple-
mentary information to the financial information.
The other performance measures may not be
directly comparable to similarly titled measures
presented by other companies, as the definitions
and calculations may be different. The other
performance measures applied by the Company
are defined as follows:
Order intake megawatts: The electrolyser
capacity in megawatts of signed orders during
the year.
Gross profit: Revenue from customer contracts,
less direct product and labor costs.
Gross profit margin: Gross profit in percent of
revenue
Gross profit margin excluding one-offs:
Gross profit adjusted for on-offs, comprising
of inventory write-downs.
EBITDA: Earnings before interest, tax,
depreciation and amortization.
EBITDA margin: Earnings before interest, tax,
depreciation and amortization in percent of
revenue.
Intangible CAPEX: Costs for development
activities.
Tangible CAPEX: Payments for property, plants
and equipment.
CAPEX: Investments in Intangible and Tangible
CAPEX.
Net working capital: Total net amount of depos-
its, inventories, trade receivables, other receiv-
ables and net prepayments less trade payables,
contract liabilities, deferred income and other
payables.
Free cash flow: Cash flow from operating activi-
ties less cash flow from investing activities.
Net cash position: An amount equal to the Cash
and Cash Equivalents less the aggregate gross
interest bearing debt.
Headcount: Numerical number of employees of
the Company.
Annual report 2022
Green Hydrogen Systems A/S
Nordager 21
DK-6000 Kolding
+45 7550 3500
CVR-no. 30 54 87 01
www.greenhy drogen.dk
Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2022-01-01 2022-12-31 2021-01-01 2021-12-31 984500COESDF699DEC11 Green Hydrogen Systems Reporting class D Nordager 21 6000 Kolding investor.greenhydrogen.dk 2023-03-01 CFO, member of the Executive Management 984500COESDF699DEC11 30548701 Green Hydrogen Systems Nordager 21 6000 Kolding Opinion Basis for Opinion 2023-03-01 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 984500COESDF699DEC11 2022-01-01 2022-12-31 984500COESDF699DEC11 2022-01-01 2022-12-31 2 984500COESDF699DEC11 2022-01-01 2022-12-31 2 984500COESDF699DEC11 2022-01-01 2022-12-31 ifrs-full:SeparateMember 984500COESDF699DEC11 2021-01-01 2021-12-31 ifrs-full:SeparateMember 984500COESDF699DEC11 2022-12-31 ifrs-full:SeparateMember 984500COESDF699DEC11 2021-12-31 ifrs-full:SeparateMember 984500COESDF699DEC11 2020-12-31 ifrs-full:IssuedCapitalMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-01-01 2021-12-31 ifrs-full:IssuedCapitalMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-12-31 ifrs-full:IssuedCapitalMember ifrs-full:SeparateMember 984500COESDF699DEC11 2020-12-31 ifrs-full:SharePremiumMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-01-01 2021-12-31 ifrs-full:SharePremiumMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-12-31 ifrs-full:SharePremiumMember ifrs-full:SeparateMember 984500COESDF699DEC11 2020-12-31 GRE:ReserveOfDevelopmentExpenseMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-01-01 2021-12-31 GRE:ReserveOfDevelopmentExpenseMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-12-31 GRE:ReserveOfDevelopmentExpenseMember ifrs-full:SeparateMember 984500COESDF699DEC11 2020-12-31 ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-01-01 2021-12-31 ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-12-31 ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember ifrs-full:SeparateMember 984500COESDF699DEC11 2020-12-31 ifrs-full:RetainedEarningsMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-01-01 2021-12-31 ifrs-full:RetainedEarningsMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-12-31 ifrs-full:RetainedEarningsMember ifrs-full:SeparateMember 984500COESDF699DEC11 2020-12-31 ifrs-full:SeparateMember 984500COESDF699DEC11 2022-01-01 2022-12-31 ifrs-full:IssuedCapitalMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-12-31 ifrs-full:IssuedCapitalMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-01-01 2022-12-31 ifrs-full:SharePremiumMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-12-31 ifrs-full:SharePremiumMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-01-01 2022-12-31 GRE:ReserveOfDevelopmentExpenseMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-12-31 GRE:ReserveOfDevelopmentExpenseMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-01-01 2022-12-31 ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-12-31 ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-01-01 2022-12-31 ifrs-full:RetainedEarningsMember ifrs-full:SeparateMember 984500COESDF699DEC11 2022-12-31 ifrs-full:RetainedEarningsMember ifrs-full:SeparateMember 984500COESDF699DEC11 2021-01-01 2021-12-31 984500COESDF699DEC11 2022-01-01 2022-12-31 1 984500COESDF699DEC11 2022-01-01 2022-12-31 4 984500COESDF699DEC11 2022-01-01 2022-12-31 5 984500COESDF699DEC11 2022-01-01 2022-12-31 1 984500COESDF699DEC11 2022-01-01 2022-12-31 2 984500COESDF699DEC11 2022-01-01 2022-12-31 3 984500COESDF699DEC11 2022-01-01 2022-12-31 9 984500COESDF699DEC11 2022-01-01 2022-12-31 6 984500COESDF699DEC11 2022-01-01 2022-12-31 7 984500COESDF699DEC11 2022-01-01 2022-12-31 8 984500COESDF699DEC11 2022-01-01 2022-12-31 1 iso4217:DKK iso4217:DKK xbrli:shares xbrli:pure