Annual Report (ESEF) • Mar 16, 2023
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Download Source FileUntitled ANNUAL REPORT 2022 GreenMobility A/S I Landgreven 3, 4.sal I 1301 Copenhagen I Denmark I CVR-nr. 35521585 GreenMobility I To index CONTENTS 1 From the executive management 2 Highlights 5 Quarterly performance 2022 6 Our business 7 ESG 9 Our Markets Denmark Finland Belgium Netherlands 16 Guidance 2023 & Strategy 17 Shareholder information 20 Corporate Governance 21 Risk factors 22 Executive Management 23 Board of Directors 26 Company details 27 Statement by Magagement on the Annual Report 28 Independet Autitor’s Report 33 Consolidated Financial Statements - GROUP 74 Financial Statements - PARENT MANAGEMENT REVIEW STATEMENTS FINANCIAL STATEMENTS GreenMobility I To index 1 At the beginning of 2022, as the last Covid restrictions were lifted, GreenMobility as most looked ahead to expand and grow our business. The mega trends of Urbanization, Sustainability & the Sharing Economy, that GreenMobility is built upon were becoming increasingly more relevant in many cities. While the year was still impacted on supply chains globally as a result of the pandemic, we were soon faced with additional challenges globally, which also directly impacted the automotive industry and carsharing. Ultimately causing delays in delivery of new elec- tric vehicles. GreenMobility’s business is based on generating revenue on our electric vehicles, so with delays there was also an impact on revenue. Next up, the market was faced with a his- torical increase in energy prices, which affected everyone and naturally as well GreenMobility on our charging costs. The combined effects ultimately impacted consumer spending towards the last part of the year, with the result of GreenMobility needing to adjust its guidance for the year. In no way sat- isfactory for the company, but a clear result of external factors. Despite this, our focus on improving the environment by reducing the CO impact as well as other key areas in our ESG strategy, in the cities we operate in, remained unchanged. During 2022, GreenMobility included the Netherlands in its operation by acquisition of Fetch Mobility and launched its operation in Germany as well. Increasing our fleet to 1,600 electric vehicles for an even greater impact to our customers and the cities we operate in. We stay committed to our long- term aspirations of being an industry leader in European carsharing. This will include the continued growth in our existing markets as well as expansion to new markets in both existing and new countries when the opportunities and markets are right. On the short term, we have re-focused our strategy and for now consolidate our business in our four strong core markets which are Denmark, Finland, Belgium and the Netherlands. This consolidation enables us to operate the business with our existing liquid- ity and bring the company to group profitability expectedly in 2024. This will mark a huge accomplishment for GreenMobility but also for sustainable carsharing globally. On longer term, our aspirations remain the same, and we will surely expand the business to new markets in coming years. We want to make a lasting change, while creating value to our shareholders. This also mean we respect the trust of our investors and scale the company according to external factors and financial market developments. GreenMobility is a company and service of the time we live in. The political focus on changing mobility in cities for better alternatives with lower or no pollution as an alternative to privately owned polluting cars, have never been higher. GreenMobility have from the first day supported this transition and will be the foundation for our continued growth across Europe. With green regards, Anders Wall Group CFO FROM THE EXECUTIVE MANAGEMENT CONTINUED GROWTH IN OUR BUSINESS GreenMobility I To index 2 The growth in the business was based on a 42% growth (vs 2021) in customers to a total end of year of 224,611 custom- ers and a growth (vs 2021) of 22% in number of trips for a total of 1,090,755 during the year and by that, we have had more than 4 million trips in our service since launch. In 2022 the trips ensured the reduction of 2,036 tonnes of CO emission, which historically had led to more than 5,400 tonnes reduced. Average trip length across the group increased by 10 minutes to 68 minutes, which in part is due to increased use of hourly and daily packages, and in part to different usage across the markets. Key figures Growth 2022 2021 2020 2019 2018 Revenue (DKK'000) 56% 97.310 62.414 34.650 33.421 25.426 Customers 42% 224.611 158.604 115.744 80.630 38.443 CO 2 saved (tonnes) 50% 2.036 1.353 775 702 471 Trips 22% 1.090.755 893.053 671.722 681.890 492.835 EV fleet 54% 1.600 1.040 950 750 650 Cities 0% 11 11 7 3 2 With the continued external uncer- tainty, GreenMobility has re-focused its strategy to preserve liquidity and operate the business based on bring- ing the group to profitability and have that as a foundation for future growth.. Therefore, GreenMobility announced a consolidation of its markets in the beginning of 2023 to ensure no new equity is required for 2023. This involved closing two of its markets and moving cars to high revenue markets. See The Guidance & Strategy section for more details on this. GreenMobility’s 3 must win battles con- tinue to focus on: Commercialization – where we con- tinue the revenue growth in our markets towards profitability in 2024. Simplication – across all our processes towards customers and internally, to continuously operate more effectively. Funding – where GreenMobility is still secured with no expectations of equity raises the coming year. The Key Figures include the operation in Oslo from the end of 2018 until mid-2020. Calculated based on comparable CO emissions on gasoline and diesel cars as reported by the European Energy Agency. Comparative figures have been restated as an impact of discontinued operations, please refer to note 29 for details. HIGHLIGHTS In 2022, GreenMobility continued its strong growth in revenue across its markets, to further support the demand for sustainable shared mobility across Europe. We have expanded the busi- ness to new markets but also seen the effect from external factors in the form of delays on delivery of new cars, energy crisis with a direct impact on our cost base to a general negative impact on consumer spending due to increased living cost. We have ongoingly adjusted our operation to these external factors but towards the end of the year it was clear that revenue was impacted and led to an adjustment of guidance. Despite the external factors in society, GreenMobility has had a strong year, with continued high revenue growth of 56% in its business. In the start of the year, we finalized the acquisition of Fetch Mobility in the Netherlands to add a new market to the group. And in the Spring, we launched GreenMobility in two cities in Germany. In addition, we renewed a large number of electric vehicles including a full renewal and increase of the fleet in both Finland and the Netherlands for a total fleet of 1,600 electric vehicles by the end of the a premium segment of cars initially in Copenhagen but over time it will be included in all markets. The premium segment has shown good potential on revenue per car, as an appealing alter- native for example for business trips or longer trips. FINANCIAL REVIEW GreenMobility continued its strong growth in 2022 and realized a reve- nue growth of 56% for a total of DKK 97.3 million. For the parent company, the growth was 28% for a total reve- nue of DKK 65.5 million. The revenue is within the adjusted guidance and while the result is not as expected in the beginning of the year, it is con- sidered satisfying given the external factors such as increased electricity cost and rising interest rates which both GreenMobility and the general society faced during 2022, not least the change in consumer spending as a result. Overall, all markets have realized reve- nue growth, bringing our all-time high revenue levels upwards, and supporting the business of electric carsharing. GreenMobility I To index Electric car sharing Electric car sharing 3 During the year, GreenMobility entered two new markets: the Netherlands by way of acquisition of Fetch Mobility and Germany as green field launch. In addition to pre-market and launch cost, these markets also prompted a natu- ral increase in the company’s fleet. In addition to this, GreenMobility renewed and increased the fleet in Sweden and Finland, growing the fleet from approx- imately 1,000 to 1,600 electric vehicles. These market launches and fleet increases have resulted in an increase in external expenses, and deprecia- tions, although a significant part of the increase in external expenses is related to the growth in revenue. Net result amounted to DKK (77.2) mil- lion, compared to DKK (51.6) million in 2021, and is a result of the new markets launched, but also consequences from external factors as mentioned. Group assets have increased by DKK 19.5 million to a total of DKK 285.6 million, and for the parent company a decrease of DKK 1.6 million to a total of DKK 238.8 million which reflects new markets and additions in the subsidiaries. The main changes are on the fixed assets, which have increased by 90.1 million to a total of DKK 209.4 million, which is tied to the large increase in the fleet. Trade and other receivables have increased due to additional activity and new markets. HIGHLIGHTS DKK'000 2022 2021 2020 2019 2018 Revenue 97.310 62.414 34.650 33.421 25.426 Operating Profit/loss (70.032) (48.922) (57.360) (28.669) (29.070) Financial items (8.050) (2.656) (2.952) (1.301) (1.153) Profit/loss for the year before tax (78.082) (51.578) (59.721) (29.889) (30.279) Profit/loss for the year (77.224) (51.578) (59.721) (29.889) (33.115) Assets 285.586 266.105 147.232 98.465 42.841 Property, plant and equipment 209.371 119.306 100.888 59.989 35.688 Cash 43.613 130.132 32.443 28.727 1.560 Other assets 32.602 16.667 13.901 9.749 5.593 Equity and Liabilities 285.586 266.105 147.232 98.465 42.841 Equity incl minority interests 65.702 144.087 51.290 30.069 (2.609) 219.884 122.021 95.942 68.396 45.450 Investment in Property, plant and equipment 99.344 7.816 37.305 0 0 Solvency ratio 23,1 54.2 34,8 30,5 -6,1 2.036 TONNES CO2 saved in 2022 Comparative figures have been restated as an impact of discontinued operations, please refer to note 30 for details. +50% COMPARED TO 2021 224.611 CUSTOMERS +42% COMPARED TO 2021 1.600 EV FLEET COMPARED TO 2021 +54% Cash has a consequence of the year’s activity dropped to DKK 43.6 million. The company’s operation is still funded by the successful rights issue in 2021, so no new equity was raised during the year. A few warrants were exercised, resulting in an increase of the share liabilities have increased due directly to the fleet increase as mentioned above. - pany’s loans from the Danish Green Investment Fund and Nefco and are both used entirely for fleet financing, and thus there is no loan related to the operation of the company. The loan from the Danish Green Investment Fund was established in 2021, where GreenMobility has drawn additional DKK 58 million on the facility in 2022. Nefco provided a loan for GreenMobility’s fleet in Finland of EUR 1 million in 2022. See note 22 for more details on the loans. On cash flow, the year ended as expected with a lower cash position due to the operation of the company. As part of some of the new electric vehicles in the fleet we obtained subsidies of DKK 22.4 million during the year. As previously announced, GreenMobility expects the current funding to support the compa- ny’s operation in 2023, and therefore no equity raise is planned or expected. GreenMobility I To index 4 GreenMobility is a great alternative to car ownership GreenMobility user, 2022 GreenMobility I To index 5 QUARTERLY PERFORMANCE 2022 (DKK'000) Q1 - 2022 Q2 - 2022 Q3 - 2022 Q4 - 2022 AR2022 Revenue 19.046 23.346 26.424 28.494 97.310 Other operating income 298 516 197 378 1.389 External expenses (20.156) (22.170) (24.738) (27.875) (94.939) Gross profit/loss (812) 1.692 1.883 997 3.760 Staff costs (9.016) (8.558) (9.943) (10.147) (37.664) Depreciations (8.057) (9.373) (10.102) (8.596) (36.128) Operating profit/loss (17.885) (16.239) (18.162) (17.746) (70.032) Financial expenses (471) (331) (2.135) (5.113) (8.050) Tax on profit/loss for the year 0 0 0 858 858 Net result (18.356) (16.570) (20.297) (22.001) (77.224) Fleet of electric cars 1.112 1.217 1.549 1.604 1.604 Average revenue per car per month 5,7 6,4 5,7 5,9 5,9 Trips 248.650 271.503 275.769 294.833 1.090.755 Trips per car per month 75 74 59 61 66 Ton of CO savings 368 528 618 522 2.036 GreenMobility I To index 6 BACKGROUND Urbanization, Sustainability and the Sharing Economy are the three pillars, GreenMobility was founded upon, and remains to this day as important as ever. Utilizing our electrical fleet of cars, we strive to improve mobility in cities through shared use of the resources. Through our service we help reduce the number of private cars in the cities, improve ever-annoying issues such as parking, noise, traffic and naturally pollution. Since the launch of GreenMobility 6 years ago, we have proven both our business model, but also our ability to reduce CO emissions – so far by more than 5,500 tonnes. Simultaneously, we can help reduce the number of pri- vate cars in the city, by a factor of 6:1, meaning more than 9,600 vehicles are reduced a year because of our service. This is based on our customer surveys as well as external market reports. Over time, this factor is increased to the ben - efit of our environment. OUR APPROACH & SERVICES GreenMobility offers a free float car- sharing service, using only 100% electric vehicles, of which we have approxi- mately 1,600 (as of 31 December 2022). The vehicles are easily located through our app, where you can also reserve the car until you get to it. Once at the car, you simply unlock the car via the app, and you are ready to go. The service is available within a defined zone in each of our operational cities. In some cities you will also find additional sub-zones away from the main zone – in some cities it will enable you to go to an air- port or suburb, in others it will enable you to go to a neighboring city. For all locations, you have to be within a zone or sub-zone to start and end the trip. You will be able to find much more information as well as our various price models for minute-, hourly-, or daily use. in our app. To enable our customers to have a better access to our cars, not least when OUR BUSINESS PROVIDING FLEXIBLE & SUSTAINABLE MOBILITY ON-DEMAND time may be critical, we also offer a pre- book service where the GreenMobility car will be delivered to you. Another convenient service is our radar function, in the app that notifies you of the first available car within the desired distance and time. Our service is on-demand whenever and wherever our customers need mobility. With our operational experi - ence and strong platform development, we can provide availability when it is needed, and thereby ensure optimised usage of the car around the clock. OUR FLEET In addition to our well-known Renault Zoe which is our widely used EV in the fleet, we also offer cargo vans for when- ever you need to move larger items or if your shopping ended up beyond plans. As the latest addition to the fleet, we are now also offering a premium ride with either Polestars (in Copenhagen) or Renault Megane (in Amsterdam). BUSINESS MODEL Our fleet of electric vehicles which we operate across our cities is measured on a per-car basis, as the car is our rev- enue driver as well as our cost center. Revenue is typically comprised of min- utes, packages, subscriptions and fees. We track the revenue development ongoingly and report it on a quarterly basis. Thereby, we are able to report on our development – and ensure a trans- parent performance. GreenMobility I To index 7 Governance emphasizes our commit- ment to a transparent management, much in tune with the way modern society gravitates towards transparency and accountability. Thus, we have put a string of policies in place to ensure oversight, integrity, and professionalism. With this framework, we feel confident that our leadership is governed in a trustworthy manner. DEVELOPMENT GOALS Based on our materiality assessment and an analysis of the United Nations Sustainable Development Goals, we have identified SDG 11 (Sustainable cities and communities), SDG 12 (Responsible consumption and production), and SDG 13 (climate action) as the goals provid- ing us with the best opportunities to impact the green transition and society the most. We have coupled the material issues with our sustainability agenda under two headlines: ‘Track 1. Adapting to the green transition’ and ‘Track 2. Responsible and ethical business con- duct and practice’. The figure elaborate how we work with these two tracks. POLICY OVERVIEW GreenMobility has prepared a compre- hensive ESG & Sustainability Report, which complies with the Statutory Statement on CSR, cf. the Danish Financial Statements Act Section 99a, 99b and 99d. 5 Sustainability is at the heart of what we do. Our greatest sustainability impact, and core to our purpose as a company, is the decarbonisation of global mobil- ity. We have now published 3 annual sustainability reports that contains comprehensive information about our company and how we seek to reduce our negative social and environmental impact. The sustainability report is our com- munication to all stakeholders on our progress in the three sustainability focus areas: Environmental impact of GreenMobility from the societal trend affecting our business; increased focus on health concerns in urban areas related to air pollution, followed by an increased access to renewable energy. By coun- teracting the negative consequences of urbanization through sustainable carsharing, we aspire to set off a chain of effects for an improved environment. Social criteria define our outlook and engagement in human capital. The fundamental values of GreenMobility – derived from the societal trend of sharing goods and services – reflects our social awareness and conduct. It is visible in areas like our multi-cultural workforce and in our community col- laboration with a job center. ESG All our governance documents and policies, including rules of procedures, Diversity Policy, Environmental Policy and more, are available a www.greenmobility.com/governance. ENVIRONMENT GOVERNANCE Avoiding carbon emissions Promoting green charging Safer driving Private car reduction Promote green and exible company transportation Permanently change mobility patterns in urban areas Employee retention rate Compensation (Board and Management) Board composition Supplier due diligence Track 2. Responsible business conduct Track 1. Adapting to the green transition SOCIAL Our Sustainability Report is available at www.greenmobility.com/investor/ sustainability GreenMobility I To index 8 The best thing about GreenMobility? Sustainability and great prices! GreenMobility user, 2022 GreenMobility I To index 9 During 2022, we took GreenMobility to two new markets: Germany and the Netherlands, both strong carsharing markets. So as of 31 December 2022, GreenMobility operated in 11 cities across 6 countries where we serviced cities spanning from 300,000 inhabit- ants to more than 1 million, through our free float service. As announced on 10 January 2023, GreenMobility will consolidate its business into its four core markets of Denmark, Finland, Belgium and the Netherlands, and as a consequence will close its Swedish and German markets during Q1-2023. While our markets are close to each other, there are also natural differences. Our business model accounts for differ- ent structures unique to the markets we operate in, in order to create maxi- mum customer value. Based on this, we have proven that we can operate across countries and in various city scenarios and societies – a truly international mobility operator. OUR MARKETS In the backend, we have the same platform, the same app and the same service for all our cities. Operating a strong platform that works across all markets is one of our key strengths – and the basis for our continued develop- ment and growth. We operate centralized services such as our call center, marketing, maintenance and other, in order to ensure the best processes and cost optimization. Simply put – we use the same structure and same procedures in all cities. Naturally, our customers can use the same app and service across all our cities, regard- less of nationality. Since the launch in Copenhagen in 2016, we have built up significant knowledge and data insights, enabling us to launch new cities faster and better. Our flexible operational backend allows us to span across various markets, despite different local requirements on parking, charging or other. Aarhus Copenhagen Antwerp Gent Brussels Helsinki Amsterdam Customer satisfaction is 85,2% compared to 84,7% the previous year (Customer Satisfaction Survey 2022) DID YOU KNOW THAT GreenMobility I To index 10 DENMARK OUR MARKETS COPENHAGEN In the beginning of the year, we finalized renewal and increase of the fleet for a total of 500 cars. In addition to our main fleet of Renault Zoe’s, Copenhagen also has a selection of small cargo vans and during the year, we introduced a premium segment where you can rent a Polestar for you trip. We expect to increase this segment, as it has shown good development based on the initial cars. Copenhagen was like many cities impacted in the second half of the year by energy crisis and growing interests which affected consumer spending in gen- eral. Overall, we grew the total revenue by 26%, and kept a stable revenue per car of DKK 9,500 per car. Denmark is the original market for GreenMobility and continues to be the largest of the markets GreenMobility operate in, with approximately 66% of the reve- nue coming from Denmark. This is expected to change over the coming years, with other mar- kets growing larger. Danish customers continue to join the business, and the cus- tomer base is now at 150,000 Danish customers. Trip charac- teristics are similar to 2021, with the same level of trips and an average trip length of 53 min- utes (2021 it was 51 minutes). The trip numbers stayed at the same level mainly due to a drop in activity towards the last part of the year with overall drop in consumer spending. In total our trips in Denmark help save 1,220 tonnes of CO emission to improve our city environments. Average monthly revenue per car per quarter (in DKK’000) GreenMobility I To index 11 Average monthly revenue per car per quarter (in DKK’000) AARHUS Aarhus also had an increase in the fleet to start the year, based on the good development the city had shown. The city has as Copenhagen been impacted by the same external factors in energy prices and consumer spending, which also impacted the year. Overall we see a continued stable development in the city with strong support from local Aarhus Copenhagen DENMARK OUR MARKETS customers, of which we grew by 51% in 2022. On total revenue, Aarhus grew 28% compared to 2021, however slightly lower per car than 2021, mainly due to the changed market conditions. We expect to continue to grow the fleet and our business in Aarhus in 2023. GreenMobility I To index 12 Helsinki FINLAND OUR MARKETS During 2022, our revenue in Finland grew an impressive 182% and the rev- enue per car grew from DKK 3,300 to DKK 3,700 which is significant consid- ering the fleet was increased from 61 to 150 new electric cars. Since our launch in Finland end of 2020, we have seen a continued growth and going into 2022, it was clear the market could support additional growth in the fleet. We chose to exchange the exist- ing fleet to 150 brand new cars in the summer of 2022. The market has shown a good uptake of the new fleet. Unlike other market, Finland is our most sea- sonal market, where especially the winter has a direct negative effect on usage. Carsharing in Finland is developing positively overall, which is also sup- ported by new competitors seeing the possibilities of shared mobility in Finland. We expect the market to con- tinue its positive development, based both on our increased availability, but also the development in commercial partnerships we have made and will continue to make. The growth in revenue is based on a customer growth of 125% and trip growth of 180% for +50,000 trips in 2022. With these trips, we managed to save more that 116 ton of CO2 emissions to make a positive impact on the environ- ment in Finland. During the year, we made a number of expansions to our zone including adding new hotspots to support our growing fleet. One of the expansions was to nearby Espoo which is home to both universities and corporate busi- ness areas, both natural for carsharing. A significant hotspot added in the start of the year is in Helsinki Airport, where we gladly serve travellers with an easy access from parking close to the terminal. Average monthly revenue per car per quarter (in DKK’000) GreenMobility I To index Antwerp Gent Brussels 13 BELGIUM OUR MARKETS Average monthly revenue per car per quarter (in DKK’000) The growth during the year was closely tied to a 128% increase in customers and 83% increase in trips for more than 103, 000 trips in 2022. All in all, this enabled us to save more than 300 tonnes of CO emissions, also a strong increase com- pared to 2021. Our Belgian customers continue to take longer trips than our GreenMobility average, with almost 120 minutes on average per trip. This supports among other the possibility of travelling convenient and sustainable between 3 cities in Belgium. During 2022, the Belgian market proved its potential and is GreenMobility’s second strongest market today with a growth of 165% in total revenue in 2022 based on the same fleet as in 2021. This correlates to a growth in revenue per car from DKK 2,800 to DKK 6,700 during the year, and by that also clearly on a path towards profitability. Throughout the year we have expanded the operational zones in our 3 Belgian cities, including new hotspots as well. The most significant ones were the con- version of a number of satellite zones in Brussels for a full operational city zone and as well the full inclusion of Brussels Airport to make connection to flights easy and convenient. Over the year, we have engaged with a number of local events including support of local stu- dents in our Belgian cities. GreenMobility I To index 14 Amsterdam NETHERLANDS OUR MARKETS GreenMobility officially entered the Netherlands in the beginning of 2022, by the acquisition of Fetch Mobility, that had operated successfully and shown stable performance based on cost focus, high utilization and customer sat- isfaction. All in line with GreenMobility’s business model. The Netherlands - and not least Amsterdam – has been a frontrunner on carsharing and electric mobility in Europe. The migration of customers and brand into GreenMobility was successfully completed in May and since then the focus has been on growing our busi- ness in the Netherlands. During 2022, we grew revenue per car from DKK 4,800 to 5,500 by end of the year while at the same time replacing the existing fleet of 60 cars to 150 new cars (initially 112 cars during the summer and the rest by end of year). We have served more than 15,000 customers during the year, who have an average trip of 80 minutes. Our contribution to the environment has so far been the saving of more than 140 tonnes of CO emissions in the Netherlands, but we have only just started. The Dutch market continues to mature, not least from the political support and that of Amsterdam city, where the charging network grows continuously and there are clear agreements for car- sharing and a general promotion of it to the benefit of everyone in Amsterdam. During the year, it was also natural to adjust and extend our operational zone, which now among other includes Amsterdam North as well as additional hotspots. We have strengthened the existing team and look forward to grow- ing our presence in the Netherlands even further. Average monthly revenue per car per quarter (in DKK’000) GreenMobility I To index 15 Always 5 stars to GreenMobility’s customer service GreenMobility user, 2022 GreenMobility I To index 16 GUIDANCE 2023 & STRATEGY GUIDANCE 2023 For 2023, GreenMobility expects to continue a continued strong growth in its existing markets that have already proven potential for the fur- ther growth in carsharing. At the same time, GreenMobility operates in mar- kets, where external uncertainty has increased in the past 6-12 months, which may continue to impact GreenMobility in the coming year. This includes spe- cifically the increases in interest rates, energy prices and as a consequence changes in consumer behavior where mobility preferences may change. GreenMobility will in 2023 focus on growing the existing markets and bring the existing operation to a break-even level with a clear outlook for profitabil- ity in 2024. This will be done through increased revenue from commercializa- tion and usage as well as simplification to reduce cost. Therefore, the company has no short-term plans of expanding to new markets. With the strategic changes imple- mented in the beginning of 2023, GreenMobility expects to have suffi- cient liquidity to operate its business and therefore has no plans or expecta- tion of raising new equity in 2023. STRATEGY GreenMobility’s long-term goal to be leading the market for sustainable carsharing in Europe is unchanged. Our aspirations for 35 cities and 10,000 electric vehicles with a signifi- cant positive environmental footprint are unchanged, but with the current complicated operational and financial market conditions, this will take longer, and we therefore expect to reach it by 2030. On short term, we have re-focused the strategy to preserve liquidity and set a clear path towards group profitability, which we expect to reach in 2024, based on the existing business’ expected growth and the developments of the markets. This will be the foundation to build the future growth of the business on, based on profitable core markets. Forward looking statements Statements about the future expressed in the annual report, reflects GreenMobility’s current expectations for future events and financial results. The nature of these statements is affected by risk, uncertainties and other ele- ments that are out of GreenMobility’s control. Therefore, the company’s actual results can differ from the expectations expressed in the management report. From 11 to From 1,100 to Aspiration 2030 In the beginning of 2023, GreenMobility announced a consolidation of its busi- ness to its core markets of Denmark, Finland, Belgium and the Netherlands (see company announcement 118 from 10 January 2023). With this the com- pany extends its liquidity run rate and ensures no new equity is required in 2023. A key part of this has been the closing of the Swedish and German markets and moving vehicles from these markets to core markets with higher revenue per car to support a stronger business foundation. Across its operational cities, GreenMobility is seeing an increase in the use of shared and sustainable mobility, which falls directly in line with the development across Europe in general. Cities are making continued efforts in improve mobility in cities to benefit the environment, which sup- ports GreenMobility’s business. We expect this development to continue both in 2023 and the years to come, and to enable GreenMobility to continue to grow its business. For 2023, we have the following expectations for the GreenMobility group: Revenue of DKK 135-145 million, which corresponds to a growth of 40-50% vs 2022 Net result of DKK (35-45) million While GreenMobility expects its liquid- ity to be sufficient for the coming year, the board and management are con- tinuously following the changes in external factors such as interest rates, energy prices and consumer spending and are ongoingly assessing if adjust- ments in the business are needed or if external financing facilities can be ben- eficial. By taking pre-emptive steps of consolidating the company’s markets and assessing additional strengthening of the liquidity, the management and board have chosen a belt-and-braces approach in these uncertain times. • • GreenMobility I To index 17 Investor interest in sustainable busi- nesses as GreenMobility remains high, supported by global trends and political focus on changing mobility, among other aspects in our societies, to improve our city environment. During 2022, GreenMobility’s inves- tor base remained at the same level, but with lower trading volume which GreenMobility does not find satisfactory. The company remains a growth com- pany, with clear leadership aspirations for Europe on free float carsharing but will at all times adapt its business to current financial climate. Therefore, as stated previously, the company expects no expansion to new cities in 2023 and expects its current funding to be suffi- cient for 2023. SHARE CAPITAL As of December 31, 2022, GreenMobility’s share capital had a nominal value of DKK 1,779,614, divided into 4,449,034 shares with a nominal value of DKK 0.40 each. Each share carries one vote, thereby the shares are equal to 4,449,034 votes, all with the same rights. GreenMobility A/S’s shares are listed on NASDAQ Copenhagen under the symbol “GREENM” and the ISIN is DK0060817898. During 2022, GreenMobility issued a total of 26,959 new shares as a result OWNERSHIP As of December 31, 2022, GreenMobility had 4,708 registered shareholders. The following shareholders state that they own 5% or more of the company’s shares/voting rights, at the end of 2022. of 2 warrant exercises by current and former employees. First exercise for 25,632 shares was reported in company announcement 112 on 9 May 2022 and second exercise for 1,327 shares was reported in company announcement 114 on 28 September 2022. The issue of new shares increased the total shares from 4,422,075 to 4,449,034. GreenMobility had a market value of DKK 197 million at the end of 2022 (end of 2021: DKK 420 million). The average daily trading was DKK 113,134 (2021: DKK 848,898). Until 21 April 2023, the Board of Directors is authorized, without pre-emptive rights for the company's existing share- holders, to increase the company's share capital by up to a nominal amount of DKK 1,686,797.60. The increase must at least be made at market price. SHARE PRICE SHAREHOLDER COMPOSITION (as of 31 December 2022) HICO Group ApS, 25.2% A/S Arbejdernes 16.6 % Kapitalforeningen MP Invest, 9.2 % shareholders (>10,000 shares), 15.6 % Other shareholders, 25.2 % Board & management, 2.1% SHAREHOLDER INFORMATION Kapitalforeningen BankInvest Selec, 6.2 % • HICO Group ApS: 25.2 % • • Kapitalforeningen MP Invest: 9.2 % • Kapitalforeningen BankInvest: 6.2 % GreenMobility I To index 18 SHAREHOLDER INFORMATION DIVIDEND POLICY GreenMobility’s policy is that share- holders should receive a return on their investment in the form of a share price increase based on the group’s growth. Because of the group’s expected need for capital for growth into new cities and operating existing cities, no dividend is expected to be paid on short term. On a longer term and as the company gen- erates profits, the company expects to be able to provide shareholders direct returns in the form of dividends and/or share buybacks in addition to a return on the share price. CHANGE OF CONTROL GreenMobility has a part of some of its financing agreements related to its fleet change of control clauses that can be subject to exercise in the case the com- pany delists from Nasdaq Copenhagen. ANUAL SHAREHOLDER MEETING GreenMobility A/S will hold its annual shareholder meeting on April 25, 2023. Details on exact timing and location will be announced latest on April 3rd via the company’s investor website www.greenm.dk WARRANT PROGRAM The Board has established two war- rant programs, the first in 2019 and the second in 2020, pursuant to the author- ization from the General Meetings. The warrant programs have been estab- lished with the purpose of ensuring incentive for retaining and motivating management and employees. No new warrants were granted in 2022. At the end of 2022, a total of 124,791 warrants were outstanding for exercise and additional 100,000 warrants can be granted in accordance with the authori- zation to grant warrants in section 4.1 in the Company's Articles of Association. Further, as approved at the annual gen- eral assembly held on 22 April 2021, the board is entitled to a total of 12,000 war- rants which have not yet been granted but are due. The warrant program is described in more detail in note 8 to the consoli- dated financial statements. GreenMobility I To index 19 +100 employees with 14 different nationalities work together at GreenMobility for a greener future DID YOU KNOW THAT GreenMobility I To index 20 CORPORATE GOVERNANCE GreenMobility A/S has prepared the statutory statement on corporate gov- ernance, cf. section 107(a) and 107(b) of the Danish Financial Statements Act, which can be read or downloaded at www.greenmobility.com/governance. The statement contains a review of the company's work with the recommenda- tions for good corporate governance, of which GreenMobility follow the major- ity but deviates on recommendation 1.1.3 as the company publishes trading statement in Q1 & Q3, 1.4.2 on tax policy, 2.2.1 by not having a vice chairman, and 4.1.6 on clawback. REMUNERATION POLICY GreenMobility’s remuneration policy has been prepared in accordance with the principles in sections 139 and 139(a) of the Danish Companies Act, and the policy sets out the frame- work for remuneration to members of the Board of Directors and Executive Management. The overall objective of the Remuneration Policy is to attract, motivate and retain qualified members to the Board of Directors and Executive management, as GreenMobility’s future development and success depends on management performance. The Remuneration Policy will be reviewed by the Board of Directors at least once a year, and updates to the policy will be proposed to the general meeting, if deemed relevant. The policy was approved by the annual general meeting on April 21, 2022, and can be read or downloaded at www.greenmobility.com/governance. REMUNERATION REPORT 2022 At the annual general meeting in 2023, our Remuneration Report will be presented for approval for the first time. The report can be read or down- loaded at www.greenmobility.com/ governance. GENDER-BASED AND DIVERSITY COMPOSITION The board of directors of GreenMobility has reviewed the current diversity, including gender diversity and prepared a review of the gender-based compo- sition of the Executive Management and Board of Directors, cf. the Danish Financial Statements Act Section 99(b). It is the board’s assessment, that GreenMobility has an appropriate representation of both genders, when taking the industry into account. Diversity across all layers of the organ- ization is vital for GreenMobility’s continued growth. This includes gender, age and nationality, not least in light of the company’s international operation. GreenMobility is particularly aware of the importance of promoting diversity at management level and on the board, and has adopted a Diversity Policy, which can be read or down- loaded at www.greenmobility.com/ governance. The diversity policy details the impor- tance of promoting diversity at all management levels. Further it details the initiatives to ensure this, including recruiting based on merits and expe- rience exclusively and the ban from basing recruitment, promotion or dis- missal on race, gender, religion, sexual orientation or similar. It is the board's goal to continuously pri- oritize adequate representation of both genders in the company's management levels. This will take place as vacan- cies arise. However, the goal must not detract from other competency require- ments in the nomination of members to the management team of the company. Gender Female Male Board of Directors 33% 67% Executive Management 0% 100% All FTEs 24% 76% Nationalities 14 The diversity in GreenMobility at the end of 2022 GreenMobility I To index 21 RISK FACTORS OPERATIONAL RISKS GreenMobility’s fleet is entirely elec- tric and therefore exposed to changes in energy cost (specifically the price of KwH in the respective markets) related to charging across its operational cities. While GreenMobility used to have sev- eral fixed-rate agreements, all have been increased due to the energy crisis in 2022. Electricity cost increased significantly in second half of 2022. To balance this extra cost, GreenMobility introduced a tempo- rary energy fee in Q4-2022. An outbreak of disease or similar public health threat, such as the COVID-19 pandemic, may impact GreenMobility negatively as a result of less overall mobil- ity among GreenMobility users due to quarantine measures or strict work-from- home policies along with a decreased or entirely dissipated travel demand from airports, educational institutions, as well as decreased social and cultural activities in society. Users may perceive the use of GreenMobility’s cars as being unsafe due to several different users touching the interior and exterior of the car. GreenMobility’s fleet is financed by leas- ing agreements and/or asset financing agreements on reasonable commercial terms, where changes in interest rates will impact the financing conditions and thus GreenMobility’s cost levels on a monthly basis. During 2022, interest rates grew significantly which also impacted GreenMobility’s business. Interest rates are still subject to uncertainty and increases will impact GreenMobility’s business negatively. Given the changes in society as a con- sequence of increased living cost, a change in consumer behaviour where customers change their mobility prefer- ences as a consequence, may also impact GreenMobility’s business negatively. As a data-driven platform GreenMobility faces a general cyber security risk where a hacker attack on the company’s backend could potentially interrupt or damage the operational functions with immediate consequences for the customer relations, revenue etc. This threat is addressed by a vigilant oversight on our part. Serious traffic accidents involving the company’s vehicles can add additional cost to the company, as well as impacting fleet availability and brand reputation. In Denmark, additional cost can be caused by confiscation of vehicles due to reck- less driving. GreenMobility continue to practice a policy of blocking certain cus- tomers that are deemed reckless drivers or in other ways not suitable to drive the company’s cars and will pursue compen- sation from any customer violating laws or GreenMobility’s terms & conditions. We are not threatened in a substantial way by customers’ loss of ability or unwilling- ness to pay. Pre-paid minute packages contribute to secure timely payment and protect the company from losses. STRATEGIC RISKS GreenMobility is dependent of a contin- ued positive trend and response in the market for car sharing. While Europe constitutes one of the world’s largest markets for free floating car sharing with an expected growth rate of +25% by 2023 (according to Berg Insights), the trend might stagnate or even decline in current or prospective future host cities. However, we do not foresee a departure in the green agenda’s foothold in con- sumers demand and we are prepared to accommodate surges in new forms of transportation, like autonomous cars. GreenMobility has targeted future expan- sion into selected European cities viewed to offer the best commercial, regulatory and operational roll-out conditions. Aspiring to be present in 35 cities by 2030 involve various risks, including the need to invest significant resources in such expansions, and efforts to expand into new international markets may prove more difficult than expected. We counter- act this by thorough preparation ahead of entering a new city and by establishing a foothold fast through a setup replica of existing cities. The continued sourcing of new electric vehicles may by impacted by external factors to manufacturers production and ultimately impacting GreenMobility’s fleet needs, or cause delays in launch due to delays in manufacture production. The market of free-floating car sharing services is highly competitive and char- acterized by rapid changes in technology, shifting user needs and frequent intro- duction of new services and offerings. Generally, we believe that that presence of competitors in the market is positive as it increases the combined availabil- ity of cars, which is important to users. GreenMobility looks to anticipate or react to changes in the competitive environ- ment or market terms and compete successfully to attain a leading car shar- ing provider position. As a growth company not yet prof- itable and with considerable scaling costs for the ambitious roll-out plans, GreenMobility has an ongoing challenge of financing the fleet and operations respectively. Across Europe, regulation and infra- structure conditions favoring EV’s have enticed drivers to choose EVs over com- bustion-engine vehicles. As EVs become more common, regulatory benefits and subsidies may be phased out, as is already partly the case in Denmark which may cause GreenMobility to incur higher costs. Still, we do not expect legislation to lean back in favor of fossil fuel cars. GreenMobility I To index 22 Shares: 3,500 Warrants: 42,079 Gender: Male Joined: 2017 Anders Wall Group CFO Managing director of ANWA ApS Board member of Niwa Holding A/S Buzau Skovdistrikt A/S EXECUTIVE MANAGEMENT Shares: 0 Warrants: 0 Gender: Male Joined: 2023 Kasper Gjedsted Group CEO Managing director of Swiss Holding ApS Advisory Board of Copenhagen Business Shool GreenMobility I To index 23 Mie Levi Fenger Board Member Audit Committee member Born: 1971 Joined: 2020 End of term: 2023 Gender: Male Independent: Yes Shares: 15,993 Warrants: 2,352 Director and owner of HC Andersen Capital Holding ApS CEO of HC Andersen Capital 2 ApS Chairmand of the board of Solitwork A/S Board member of DanCann Pharma Curo Fondsmæglerselskab A/S Curo Alternativer FAIF A/S HC Andersen Capital 2 ApS Born: 1987 Joined: 2018 End of term: 2023 Gender: Female Independent: Yes Shares: 250 Warrants: 4,725 Head of Business Growth at Vice Chairman of the board of Roskilde Kulturservice A/S Board member of Foreningen Roskilde Festival Born: 1965 Joined: 2019 End of term: 2023 Gender: Male Independent: Yes Shares: 5,386 Warrants: 4,725 Founder and CEO of Director of Danstrup Vin Aps 4Skel Chairman of the board of Copenhagen-Malmø Port A/B Fors A/S Fors Holding A/S Board member of Zeuthen Storm A/S Nordea Invest BOARD OF DIRECTORS Tue Østergaard Chairman Remuneration & Nomination Committee Chairman Claus Juhl Board Member GreenMobility I To index 24 Born: 1969 Joined: 2022 End of term: 2023 Gender: Female Independent: Yes Shares: 0 Warrants: 0 Born: 1964 Joined: 2021 End of term: 2023 Gender: Male Independent: Yes Shares: 62,500 Warrants: 0 CEO of Viacom Television Nordic Board member of Charge Amps AB Minestorage international AB Carbon Capture Company AB DeepGrid AB Group CFO of Ahlstrom Director and adviser Born: 1973 Joined: 2021 End of term: 2023 Gender: Male Independent: Yes Shares: 4,400 Warrants: 0 CEO of Vestas Development A/S Board member of Wind Power Invest A/S Clinical Microbiomics A/S Thomas Alsbjerg Board Member Boel Rydenå-Swartling Board Member Jørn P. Jensen Board Member Audit Committee Chairman Remuneration & Nomination Committee member BOARD OF DIRECTORS GreenMobility I To index 25 DID YOU KNOW THAT 91% of GreenMobility’s users have told friends and family about GreenMobility Customer Survey 2022 GreenMobility I To index 26 COMPANY DETAILS GreenMobility A/S 1301 Copenhagen Business Registration No: 35521585 Registered in: Copenhagen, Denmark Date of establishment: 24.10.2013 Financial year: 01.01.2022 to 31.12.2022 Company Tue Østergaard, Chairman Claus Schønemann Juhl Thomas Alsbjerg Jørn P. Jensen Boel Rydenå-Swartling Board of Directors Kasper Gjedsted Anders Wall Executive Board Deloitte Statsautoriseret Revisionspartnerselskab Company auditors GreenMobility I To index 27 STATEMENT BY MANAGEMENT ON THE ANNUAL REPORT The Board of Directors and the Executive Management have today considered and approved the Annual Report of GreenMobility A/S for 1 January - 31 December 2022. The annual report is prepared in accord- ance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies. In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company as of 31 December 2022 as well as of the results of the Group and Parent Company operations and cash flows for the financial year 1 January - 31 December 2022. In addition, in our opinion the Annual Report for GreenMobility A/S for 1 January - 31 December 2022 with the zip in all material aspects is prepared in accordance with ESEF Regulation. In our opinion, Management’s Review gives a true and fair account of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year, cash flows and of the Parent Company’s financial position, as well as a description of the key risks and uncertainties facing the Group and the Parent Company. We recommend the Annual Report for adoption at the Annual General Meeting. COPENHAGEN, 16.03.2023 Tue Østergaard, Chairman Claus Schønemann Juhl Thomas Alsbjerg Jørn P. Jensen Boel Rydenå-Swartling Board of Directors Kasper Gjedsted Anders Wall Executive Board DID YOU KNOW THAT some users call our cars “greenies” among friends GreenMobility I To index 28 INDEPENDENT AUDITOR’S REPORT Opinion We have audited the consolidated financial statements and the parent financial statements of GreenMobility A/S for the financial year January 1 – December 31, 2022, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of sig- nificant accounting policies, for the Group as well as the Parent, and the statement of comprehensive income and the cash flow statement of the Group. The consolidated financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act, and the parent financial statements are pre- pared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated finan- cial statements give a true and fair view of the Group’s financial position at December 31, 2022 and of the results of its operations and cash flows for the financial year January 1 – December 31, 2022 in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements under the Danish Financial Statements Act. Further, in our opinion, the parent financial statements give a true and fair view of the Parent’s financial posi- tion at December 31, 2022 and of the results of its operations for the financial year January 1 – December 31, 2022 in accordance with the Danish Financial Statements Act. Our opinion is consistent with our audit book comments issued to the Audit Committee and the Board of Directors. INDEPENDENT AUDITOR’S REPORT TO THE Basis for opinion We conducted our audit in accord- ance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those stand- ards and requirements are further described in the Auditor’s responsibil- ities for the audit of the consolidated financial statements and the parent financial statements section of this auditor’s report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethi- cal responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evi- dence we have obtained is sufficient and appropriate to provide a basis for our opinion. To the best of our knowledge and belief, we have not provided any pro- hibited non-audit services as referred to in Article 5(1) of Regulation (EU) No 537/2014. In the same year that Green Mobility A/S was listed on the Nasdaq First North Growth Market Denmark in 2017, we were appointed auditors at the Annual General Meeting held on March 1, 2017, for the 2016 financial year. We have been reappointed annually at the annual general meeting for a total consecutive engagement period of 7 years up to and including the 2022 financial year. GreenMobility I To index 29 Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements and the parent financial statements for the period January 1 – December 31, 2022. These matters were addressed in the context of our audit the consol- idated financial statements and the parent financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Continuing financing The availability of sufficient funding and the assessments of whether the Group and Parent will be able to con- tinue meeting its obligations based on the Group’s and Parent’s activity are significant aspects of our audit. This assessment is largely based on the expectations of and the estimates made by Management. The expecta- tions and estimates can be influenced by subjective elements such as esti- mated future cash flows, forecasted results, investment in current and new operations/cities, and Management’s ability to attract and successfully completion of capital increases from shareholders and/or financing form credit institutions. Estimates are based on assumptions including expectations, regarding future developments in the economy and in financing market. The audit procedures we performed consist of, among other things, an assessment of the assumptions made by Management in the forecast for 2023. We have specifically challenged the assumptions made with respect to the future revenue average monthly revenue per car, results and the cash flows in order to assess the Group’s and Parent’s ability to continue meeting its payment obligations and its obligations under the financing its operational, investing and financing activities in the year ahead. We have considered the Group’s and Parent’s history in obtaining financing and we have assessed the complete- ness and accuracy of the disclosures in note 3. Further, we have held discussions with Management on the main terms of the current and planned financing activities and any uncertainties and risks related to the completion of suffi- cient financing resources as expected for 2023, including possible alternative measures to be taken by Management. Statement on the management commentary Management is responsible for the management commentary. Our opinion on the consolidated finan- cial statements and the parent financial statements does not cover the man- agement commentary, and we do not express any form of assurance conclu- sion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the manage- ment commentary and, in doing so, consider whether the management commentary is materially inconsist- ent with the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the management commentary provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that management com- mentary is in accordance with the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatements of the management commentary. Management's responsibilities for the consolidated financial statements and the parent financial statements Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act as well as the prepara- tion of parent financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of consoli- dated financial statements and parent financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements and the parent financial statements, Management is responsi- ble for assessing the Group’s and the Parent’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consoli- dated financial statements and the parent financial statements unless Management either intends to liqui- date the Group or the Entity or to cease operations, or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the consolidated financial statements and the parent financial statements Our objectives are to obtain reason- able assurance about whether the consolidated financial statements and the parent financial statements as a whole are free from material mis- statement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements appli- cable in Denmark will always detect a INDEPENDENT AUDITOR’S REPORT GreenMobility I To index 30 and related disclosures made by Management. • Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the con- solidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast sig- nificant doubt on the Group's and the Parent’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the con- solidated financial statements and the parent financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Entity to cease to con- tinue as a going concern. • Evaluate the overall presentation, structure and content of the consol- idated financial statements and the parent financial statements, including the disclosures in the notes, and whether the consolidated financial statements and the parent financial statements rep- resent the underlying transactions and events in a manner that gives a true and fair view. • Obtain sufficient appropriate audit evidence regarding the financial infor- mation of the entities or business activities within the Group to express an opinion on the consolidated financial material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, indi- vidually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and these parent financial statements. As part of an audit conducted in accord- ance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of mate- rial misstatement of the consolidated financial statements and the parent 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 mate- rial misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresenta- tions, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro- priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent’s internal control. • Evaluate the appropriateness of accounting policies used and the rea- sonableness of accounting estimates statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with gov- ernance with a statement that we have complied with relevant ethical require- ments regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independ- ence, and, where applicable, safeguards put in place and measures taken to elim- inate threats. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements and the parent financial statements of the current period and are therefore the key audit matters. We describe these mat- ters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse conse- quences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. INDEPENDENT AUDITOR’S REPORT GreenMobility I To index 31 Copenhagen, March 16, 2023 Deloitte Statsautoriseret Revisionspartnerselskab Business Registration No 33 96 35 56 Eskild Nørregaard Jakobsen State-Authorized Public Accountant Identification No mne11681 Jens Serup State-Authorized Public Accountant Identification No mne45825 Report on compliance with the ESEF Regulation As part of our audit of the consolidated financial statements and the parent financial statements of GreenMobility A/S we performed procedures to express an opinion on whether the Annual Report of GreenMobility A/S for the financial year January 1 - December 31, 2022 with the file is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation financial statements including notes. Management is responsible for prepar- ing an annual report that complies with the ESEF Regulation. This responsibility includes: • The preparing of the annual report • The selection and application of extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for financial information required to be tagged using judgement where necessary; • tagged data and the Consolidated Financial Statements presented in human readable format; and • For such internal control as Manage- ment determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation. Our responsibility is to obtain reasona- ble assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s judgement, including the assessment of the risks of material departures from the require- ments set out in the ESEF Regulation, whether due to fraud or error. The pro- cedures include: • Testing whether the annual report • Obtaining an understanding of the of internal control over the tagging process; • Evaluating the completeness of the Financial Statements including notes; • Evaluating the appropriateness of 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 • with the audited Consolidated Financial Statements. In our opinion, the Annual Report of GreenMobility A/S for the financial year January 1 - December 31, 2022 with the zip is prepared, in all material respects, in compliance with the ESEF Regulation. INDEPENDENT AUDITOR’S REPORT GreenMobility I To index 32 DID YOU KNOW THAT 72% are willing to walk a longer distance to take an electric car rather than a gasoline car Customer Survey 2022 GreenMobility I To index 33 CONSOLIDATED FINANCIAL STATEMENTS - GROUP 35 Consolidated income statement 36 Consolidated statement of comprehensive income 37 Consolidated balance sheet 39 Consolidated statement of changes in equity 40 Consolidated cash flow statement 41 Notes GreenMobility I To index 34 DKK’000 Notes 31.12.2022 31.12.2021 31.12.2020 Revenue 4 97.310 62.414 34.650 Other operating income 5 1.389 3.717 4.506 External expenses 6 (94.939) (58.992) (49.641) Gross profit/loss 3.760 7.139 (10.485) Staff costs 7 (37.664) (35.370) (32.947) Amortisation & depreciation 9 (36.128) (20.691) (13.928) Operating profit/loss (70.032) (48.922) (57.360) Financial expenses 10 (8.050) (2.656) (2.952) Profit/loss before tax (78.082) (51.578) (60.312) Tax on profit/loss for the year 11 858 0 0 Profit/loss - continuing operations (77.224) (51.578) (60.312) 31 0 0 591 Profit/loss for the year (77.224) (51.578) (59.721) Distribution of profit/loss Shareholders of GreenMobility A/S (75.845) (49.433) (58.555) Minority Interests (1.379) (2.145) (1.166) (77.224) (51.578) (59.721) Proposed distribution of profit/loss Basic earnings per share – continuing operations 12 (17,40) (15,39) (24,11) Diluted earnings per share– continuing operations 12 (16,88) (14,74) (23,51) Basic earnings per share for the year 12 (17,40) (15,39) (23,87) Diluted earnings per share for the year 12 (16,88) (14,74) (23,28) CONSOLIDATED INCOME STATEMENT GreenMobility I To index 35 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME DKK’000 Notes 2022 2021 2020 Profit/loss for the year (77.224) (51.578) (59.721) Other comprehensive income - Exchange rate gain/loss (2.513) (598) 900 Comprehensive income (79.737) (52.176) (58.821) Distribution of comprehensive income Shareholders of GreenMobility A/S (78.358) (50.031) (57.657) Minority Interests (1.379) (2.145) (1.164) Comprehensive income (79.737) (52.176) (58.821) GreenMobility I To index 36 CONSOLIDATED BALANCE SHEET DKK’000 Notes 31.12.2022 31.12.2021 31.12.2020 Development projects 13 2.784 1.825 2.296 Trademarks 14 5.026 0 0 Intangible assets 7.810 1.825 2.296 15 2.266 3.673 5.052 Cars incl. prepayments 16,17,18 207.105 115.633 95.836 Property, plant and equipment 209.371 119.306 100.888 Deposits 423 360 1.111 Fixed asset investments 423 360 1.111 Non-current assets 217.604 121.491 104.295 Inventories 3.342 1.238 609 Trade receivables 19 8.847 4.674 2.811 Other receivables 9.832 6.092 6.937 Receivables from related parties 27 0 466 0 Prepayments and accrued income 2.348 2.012 137 Receivables 21.027 13.244 9.885 Cash at bank and in hand 43.613 130.132 32.443 Current assets 67.982 144.614 42.937 Assets 285.586 266.105 147.232 GreenMobility I To index 37 DKK’000 Notes 31.12.2022 31.12.2021 31.12.2020 Share capital 20 1.780 1.768 1.179 Retained earnings 66.275 143.092 48.860 Currency reserves (2.213) 300 898 Equity Shareholders of GreenMobility A/S 65.842 145.160 50.937 Equity Minority interest (140) (1.076) 353 Total equity 65.702 144.084 51.290 21 65.414 51.953 55.860 22 65.868 19.682 0 Other payables 23 0 0 1.157 Non-current liabilities 131.282 71.635 57.017 21 53.557 33.478 20.167 22 16.565 4.921 0 Trade payables 6.135 3.094 8.581 Payables to related parties 39 163 2.407 Other payables 23 12.306 8.730 7.770 Current liabilities 88.602 50.386 38.925 Liabilities 219.884 122.021 95.942 Equity and liabilities 285.586 266.105 147.232 CONSOLIDATED BALANCE SHEET GreenMobility I To index 38 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY DKK’000 Share capital Retained earnings Currency reserves Shareholders of GreenMobility A/S Minority interests Equity Total Equity at 01.01.2020 955 29.114 0 30.069 0 30.069 Profit/loss (58.555) (58.555) (1.166) (59.721) Other comprehensive income 898 898 2 900 Capital increase 224 74.776 75.000 1.517 76.517 Expenses related to capital increase (4.008) (4.008) (4.008) Share based payment cost 7.533 7.533 7.533 Equity at 31.12.2020 1.179 48.860 898 50.937 353 51.290 Equity at 01.01.2021 1.179 48.860 898 50.937 353 51.290 Profit/loss (49.433) (49.433) (2.145) (51.578) Other comprehensive income (598) (598) 0 (598) Capital increase 589 146.813 147.402 716 148.118 Expenses related to capital increase (5.994) (5.994) 0 (5.994) Share based payment cost 2.846 2.846 0 2.846 Equity at 31.12.2021 1.768 143.092 300 145.160 (1.076) 144.084 Equity at 01.01.2022 1.768 143.092 300 145.160 (1.076) 144.084 Profit/loss 0 (75.845) 0 (75.845) (1.379) (77.224) Other comprehensive income 0 0 (2.513) (2.513) 0 (2.513) Capital increase 12 16 0 28 2.315 2.343 Expenses related to capital increase 0 0 0 0 0 0 Share based payment cost 0 (988) 0 (988) 0 (988) Equity at 31.12.2022 1.780 66.275 (2.213) 65.842 (140) 65.702 GreenMobility I To index 39 DKK’000 Notes 2022 2021 2020 Operating profit/loss (70.032) (48.922) (57.360) Amortisation & depreciation 36.128 20.691 13.928 Share based payment cost (988) 2.846 7.533 Working capital changes 26 (3.394) (11.916) 9.344 Interest on leasing 26 (2.575) (1.908) 0 Discontinued operations 0 0 591 Special tax credit received 72 0 0 Exchange rate adjustment - other comprehensive income 302 300 900 Exchange rate adjustments of cash and cash equivalents (2.815) 0 0 Other non-cash operating activities 88 98 (38) Cash flows from operating activities (43.214) (38.811) (25.102) Cars acquired (99.344) 0 (37.305) Development projects (1.767) (429) (2.245) Business acquisitions (5.889) 0 0 Deposits repaid 7.814 0 0 Deposits paid (63) (8.176) (70) Cash flows from investing activities (99.249) (8.605) (39.620) CONSOLIDATED CASH FLOW STATEMENT The consolidated cash flow statement continues on the next page GreenMobility I To index 40 CONTINUED CONSOLIDATED CASH FLOW STATEMENT Financial expenses paid, less interest on lease liabilities (5.475) (748) (1.732) 26 (21.172) (20.875) (14.183) Subsidies 22.418 0 11.844 57.830 24.603 0 Proceeds from non-controlling interest 2.315 716 1.517 Capital increase 28 147.402 75.000 Expenses related to capital increase, recognised in equity 0 (5.994) (4.008) Founding received from related parties 0 0 0 Cash flows from financing activities 55.944 145.105 68.438 Increase/decrease in cash and cash equivalents (86.519) 97.689 3.716 Cash and cash equivalents at 01.01 130.132 32.443 28.727 Cash and cash equivalents at 31.12. 43.613 130.132 32.443 Deposits repaid consists of repaid deposit (DKK 7.8 million) for cars ordered in 2021 and delivered in 2022. In the annual report for 2021 the deposit was presented as cars acquired as it was initially a partial payment of cars, but in the cash flow statement for 2022 it is presented as deposits paid in the comparison figures for 2021. GreenMobility I To index 41 NOTES 1. Summary of significant accounting policies The consolidated financial statements included in this Annual Report have been prepared in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act for reporting class D enterprises. The accounting policies as a whole are disclosed in Note 33. Adoption of new and amended IFRSs Management has assessed the impact of new or amended and revised accounting standards and interpreta- tions (IFRSs) issued by IASB and IFRSs endorsed by the European Union effec - tive on or after 1 January 2021. It is assessed that application of new amendments effective from 1 January 2021 has not a material impact on the consolidated financial statements in 2022. Furthermore, Management does not anticipate any significant impact on future periods from adoption of these new amendments. Share-based payments The company has issued warrants to Board of Directors and Executive Board as part of the company’s incentive plans in accordance with the authorization given by the shareholders to the Board of Directors. The value of services received in exchange for warrants granted is meas- ured at fair value on the grant date using an appropriate valuation method. The fair value is recognized in profit or loss as staff costs with a corresponding entry in equity, over the period in which the service conditions are fulfilled (vest- ing period). At the initial recognition of the warrants, the number of warrants expected to be vested is estimated. Subsequently, the amount is adjusted for changes in the estimated number of war- rants ultimately vested. Reference is made to note 2 regarding significant accounting judgements, estimates and assumptions. GreenMobility I To index 42 2. Judgements and estimates In relation to the practical application of the accounting policies described, Management has made material accounting estimates and assessments which may have a significant influ- ence of the Annual Report’s assets and liabilities at the balance sheet date. Management bases its estimates on historical experience and a number of assumptions which are assessed as being reasonable in the circumstances. The result thereof forms the basis of the reported carrying amounts of assets and liabilities and of the reported income and expenses which are not directly dis- closed in other documentation. Actual results realised may vary from these estimates recognised at the balance sheet date. The following accounting estimates are considered significant to the financial statements: Share based payments (estimate) The Company has issued warrants and allocated to the Board of Directors, Executive Board and other employees. The calculated fair value and subse- quent compensation expenses for the Company’s share-based compensation are subject to significant assumptions and estimates. The fair value of each warrant granted during the year is calculated using the Black-Scholes pricing model. This NOTES 3. Going concern During 2022, GreenMobility has realized a 56% revenue growth in its business and expects that its operational cities will continue the positive revenue growth. pricing model requires the input of subjective assumptions. The key assumptions used for determining the fair value of these are: • Expected volatility • Expected future dividend yield per share • Expected life of warrants • Annual risk-free interest rate The expected volatility is based on the historic volatility of the Company’s share over a period similar to the life of the warrants is indicative of future trends, which may not necessarily be the actual outcome. The market share-price at the time of grant has been determined as the share price at the valuation date. The Company does not expect to pay dividend in the foreseeable future. The expected life of warrants is based on vesting terms, expected rate of exercise and life terms in the warrant programs. For details on exercise prices, volatility & fair value estimates, see note 8. Impairment losses on Property, plant, and equipment In connection with recognition of leased assets Management makes an assessment of the lease term, includ- ing whether it is reasonable certain that options to extend the lease will be exercised and whether it is reason- able certain that purchase options after expiry of the lease term will be exercised. Furthermore, Management consider the need for write down of recognized assets at the balance sheet date for impairment based on an esti- mates of the value of the assets which is the higher of fair value net of selling costs and value in use. In respect of leased cars Management has assessed the values of the cars based on observ- able asking prices of cars. As the fair value net of selling costs does not involve any indication of impairment, the Company has not estimated the value in use. Based on this assessment, a detailed impairment review of the carrying amount of recognized cars has not been carried out. The carrying amount of leased cars as at 31.12.22 was Dkk 123.2m (DKK 83.5m at 31.12.2021 and DKK 68.4m at 31.12.2020). To strengthen the company’s liquidity position, the company announced that it will consolidate its business to its core markets (see company announcement 118 on 10 January 2023). Therefore, two markets have been closed in the start of 2023 and electric vehicles have been moved to cities with higher revenue per car, to further strengthen the overall growth expectations. No operational credit facilities were in place or needed as of 31 December 2022. Based on this the Management con- siders the company’s cash resources, to be sufficient to ensure its future oper- ations at least one year ahead so as to present the financial statements on a going concern basis. While GreenMobility expects its liquid- ity to be sufficient for the coming year, the board and management are continuously following the changes in external factors such as interest rates, energy prices and other and are ongoingly assessing if adjustments in the business are needed or if external financing facilities can be beneficial. By taking pre-emptive steps of con- solidating the company’s markets and assessing additional strengthening of the liquidity, the management and board have chosen a belt-and-braces approach in these uncertain times. GreenMobility I To index 43 DKK’000 2022 2021 2020 Revenue 97.310 62.414 34.650 97.310 62.414 34.650 Denmark 63.933 51.075 32.750 Sweden 7.938 5.372 1.518 Belgium 11.672 4.176 357 Finland 4.806 1.613 25 Germany 3.680 178 0 Netherlands 5.281 0 0 97.310 62.414 34.650 4. Segmentation The reporting of operating segments is in accord- ance with the internal reporting to the Executive Management. Segment information is prepared in accordance with the Group’s accounting policies and the internal financial reporting framework. GreenMobility have identified several operating seg- ments which have been aggregated into reporting segment. The operating segments all share similar economic characteristics, are similar in the nature of services, the methods used to provide the services and customer base. DKK’000 2022 2021 2020 Non-recurring operating grants 1.389 3.717 2.831 Government Grant - Wage compensation COVID 0 0 896 Government Grant - Fixed costs COVID 0 0 779 1.389 3.717 4.506 5. Other operating income DKK’000 2022 2021 2020 Operating expenses of cars 61.003 39.018 27.250 Selling costs 13.357 10.311 9.574 Costs of premises 1.045 849 475 Administrative expenses 19.534 8.814 12.342 94.939 58.992 49.641 6. External expenses * Government grants encompass the expected total grants in relation to compensation grants for March-June 2020. The Company has not applied for additional grants. NOTES Administrative expenses have increased significantly due mainly to increased activity and higher revenue as well as the start-up of a new contry and a take- over & implementation of another. In addition, the group has had increased cost related to recruitment to strengthen its organization. Finally, there is one- time cost of approximately DKK 3.5 million related to projects. GreenMobility I To index 44 7. Staff costs DKK’000 2022 2021 2020 Salaries and wages 34.844 29.576 23.426 Share based payment cost (988) 2.846 7.533 Defined contribution plans 2.119 1.612 1.203 Other social security costs 1.689 1.338 787 37.664 35.370 32.949 FTE (incl. part-time emploees recalculated) 92 64 62 Board of Directors Executive Board Other management DKK’000 2022 2021 2020 20222 2021 2020 20223 2021 2020 Director’s remuneration 1.492 742 505 0 - - 0 - - Wages and salaries 0 0 0 2.696 4.199 3.336 3.473 1.409 1.331 Share-based payment cost 0 118 215 0 2.383 6.576 (218) 345 232 Defined contribution plans 0 0 0 176 236 214 230 91 80 1.492 860 720 2.872 6.818 10.126 3.485 1.845 1.643 For purposes of motivating and retaining key staff and encouraging the achievement of common objectives for staff, management and shareholders, the Company has set up a share-based remuneration programme in the form of a share option scheme for members of the Executive Board, other management employees.The scheme which may be used only to purchase the shares in question (equity-settled share-based payment arrangement) entitles staff members to purchase a number of shares at a previously set price. For further information on share-based payment, please refer to note 8. The warrant programs vest over 2-3 years, however share-based payment cost is recognized according to IFRS 2 and rules applying to graded vesting. This implies that 70,7% of the total cost of the warrant programs are recognized in 2020. This does not reflect the remuneration paid out in 2021. NOTES In 2022 the executive management consisted of 2 members vs. 3 in previous years. Other management group was extended by 3 during the year for a total of 5 and subsequently reduced to 2 again. GreenMobility I To index 45 Warrants Share-based incentive plans in which employees can only opt to buy shares in the Company (warrants) are measured at the equity instruments’ fair value at the grant date and recognized in the income statement over the vesting period. The balancing item is recognized directly in equity. The fair value on the date of grant is determined using the Black-Scholes model. 8.Share-based payment The Board of Directors has been granting and selected employees of the Company and its subsidiaries. The warrants are granted in accordance with the authorizations given to the Board of Directors by the shareholders. The Board of Directors has fixed the terms of and the size of the grants of warrants, taking into account authorizations from the shareholders, the Group’s guidelines for incentive pay, an assessment of expec- well as the need to motivate and retain the recipient. Grant takes place on the date of establishment of the program. Exercise of warrants is by default sub- ject to continuing employment with the Warrant overview - 2022 Outstanding as of 01.01 Additions Exercised Annulled Outstanding as of 31.12 Can be exercised as of 31.12 Average exercise price (outstanding shares) General Warrant Program 2019 40.139 0 0 (2.937) 37.202 37.202 93,83 Extraordinary Warrant Program 2020 109.114.911 0 (26.959) (11.468) 70.687 70.611 1,00 General Warrant Program 2020 18.224 0 0 (1.322) 16.902 16.902 91,87 167.477 0 (26.959) (15.727) 124.791 124.715 32,37 Warrant overview - 2021 General Warrant Program 2019 34.400 5.939 0 (200) 40.139 40.139 93,83 Extraordinary Warrant Program 2020 96.911 12.203 0 0 109.114 87.483 1,00 General Warrant Program 2020 15.550 2.674 0 0 18.224 0 91,87 146.861 20.816 0 (200) 167.477 127.622 32,37 Warrant overview - 2020 General Warrant Program 2019 35.400 0 0 (1.000) 34.400 0 93,83 Extraordinary Warrant Program 2020 0 96.911 0 0 96.911 55.222 1,00 General Warrant Program 2020 0 15.550 0 0 15.550 0 91,87 35.400 112.461 0 (1.000) 146.861 55.222 32,37 Group. The warrants granted are subject to the provisions of the Danish Public Companies Act regarding termination of employees prior to their exercise of warrants in the case of recipients who are subject to the act. The additions made in 2021 are a result of the dilution effect from the rights issue carried out in 2021. NOTES GreenMobility I To index 46 8.Share-based payment (continued) Warrant overview - 2022 Outstanding as of 01.01 Additions Exercised Annulled Transferred Outstanding as of 31.12 Board of Directors 10.538 0 0 0 0 10.538 Executive Management 84.158 0 0 0 (42.079) 42.079 Other Management 6.764 0 (1.327) (215) 0 5.222 Other employees 11.495 0 (385) (5.801) 0 5.309 Resigned employees 54.522 0 (25.247) (9.711) 42.079 61.643 Total 167.477 0 (26.959) (15.727) 0 124.791 Weighted average exercise price (outstanding Shares) 40,98 Weighted average share price at exercise N/A Number of warrants which can be exercised as of December 31, 2021 124,715 at a weighted average exercise price of DKK 41,01 Warrant overview - 2021 Board of Directors 17.000 1.802 0 0 (8.264) 10.538 Executive Management 105.144 13.972 0 0 (34.958) 84.158 Other Management 5.740 1.024 0 0 0 6.764 Other employees 7.677 4.018 0 (200) 0 11.495 Resigned employees 11.300 0 0 0 43.222 54.522 Total 146.861 20.816 0 (200) 0 167.477 Weighted average exercise price (outstanding Shares) 33,14 Weighted average share price at exercise N/A Number of warrants which can be exercised as of December 31, 2021 127,602 at a weighted average exercise price of DKK 30,20 NOTES GreenMobility I To index 47 8.Share-based payment (continued) Outstanding as of 01.01 Additions Exercised Annulled Transferred Outstanding as of 31.12 Warrant overview - 2020 Board of Directors 15.000 10.000 0 (8.000) 17.000 Executive Management 12.000 93.144 0 0 105.144 Other Management 4.350 3.565 0 (2.175) 5.740 Other employees 4.050 4.927 (1.000) (300) 7.677 Resigned employees 0 825 0 10.475 11.300 Total 35.400 112.461 (1.000) 0 146.861 Weighted average exercise price (outstanding Shares) 32,37 Weighted average share price at exercise N/A Number of warrants which can be exercised as of December 31, 2020 55,222 at a weighted average exercise price of DKK 1,00 NOTES GreenMobility I To index 48 General Warrant Program 2019 Extraordinary Warrant Program 2020 General Warrant Program 2020 Average share price 96,00 99,50 99,50 Average exercise price at grant 93,83 1,00 91,87 Expected volatility rate 33,4% 37% 37% Expected life (years) 5 4 4 Expected dividend per share 0 0 0 Risk-free interest rate p.a. 0 0 0 Fair value at grant 1) 28,8 94,7 31,5 Specification of parameters for Black-Scholes model 1) Fair value of each warrant at grant date applying the Black-Scholes model 8.Share-based payment (continued) General Warrant Program 2019 Warrants can be exercised in the period from 12 December 2021 until 11 December 2024. Extraordinary Warrant Program 2020 Warrants can be exercised in the period from 29 September 2022 until 28 September 2025. General Warrant Program 2020 Warrants can be exercised in the period from 29 September 2020 until 28 September 2025. For all programs, only vested warrants can be exercised. Within the Exercise Period, vested warrants may be exercised four times a year in a 3 (three) weeks' uti- lization window beginning at the time of publication of the Company's annual report, respectively interim reports (3, 6 or 9 months) (each a “Utilization Window”). Warrant exercise periods: • • • NOTES GreenMobility I To index 49 9. Amortisation and depreciation DKK’000 2022 2021 2020 Depreciation of cars 33.365 18.386 11.968 Depreciation of land and buildings 1.397 1.405 1.415 Amortisation of development projects 808 890 545 Amortisation of trademarks 558 0 0 Amortisation and depreciation 36.128 20.681 13.928 10. Financial expenses DKK’000 2022 2021 2020 Financial expenses regarding finance leases 2.575 1.908 1.220 Financial expenses regarding loan 4.282 563 0 Exchange rate adjustment 454 8 5 Other financial expenses 581 55 1.413 Guarantee commission to related parties 158 122 314 Interest expenses for financial liabilities measured at amortized cost 8.050 2.656 2.952 NOTES GreenMobility I To index 50 11. Tax on profit/ loss for the year DKK’000 2022 2021 2020 Current tax (858) 0 0 Change in deferred tax (17.516) (8.474) (11.474) Reversal of joint taxation contribution recognised 0 0 0 (18.374) (8.474) (11.474) Non-recognised deferred tax, refer to below 17.516 8.474 11.474 Tax recognised in profit/loss (858) 0 0 Tax computed on profit/loss before tax, 22% (17.178) (11.347) (13.139) Tax effect of non-deductible items (338) 2.873 1.665 (17.516) (8.474) (11.474) Of this, non-recognised tax loss 17.516 8.474 11.474 Reversal of joint taxation contribution recognised 0 0 0 0 0 0 Effective tax rate (%) 1,1 0 0,0 NOTES GreenMobility I To index 51 Deferred tax is incumbent on the following items: DKK’000 2022 2021 2020 Intangible assets (1.718) (402) (505) Assets held under finance leases (1.594) (1.235) 556 Tax deductible losses 56.731 34.774 31.005 53.419 33.137 31.056 Deferred tax asset not recognised (53.419) (33.137) (31.056) Carrying amount 0 0 0 The tax loss carry forwards have no expiry date. The Company’s ability to use tax loss carry forwards in any one year is limited to 100% of the first DKK 8.2 million of taxable income plus 60% of the taxable income above DKK 8.2 million. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of 11. Tax on profit/ loss for the year (continued) future taxable profits together with future tax planning strategies. This judgment is made periodically after considering current fact and circumstances, budgets and busi- ness plans. It is assessed by the company, that the tax asset is not recognized as the company con- tinues to have a financial loss going forward but the company expects profitability in 2024 basad on existing operation. NOTES GreenMobility I To index 52 12. Earnings per share DKK’000 2022 2021 2020 Profit/loss – continuing operations (77.224) (51.579) (60.312) Profit/loss for the year (77.224) (51.579) (59.721) Number of shares at DKK 0.4 each 4.449.034 4.422.075 2.948.050 Average number of shares 4.439.071 3.350.789 2.501.512 Basic earnings per share – continuing operations (17.40) (15.39) (24,11) Diluted earnings per share – continuing operations (16.88) (14.74) (23,51) Basic earnings per share for the year (17.40) (15.39) (23,87) Diluted earnings per share for the year (16.88) (14.74) (23,28) 13. Development projects DKK’000 2022 2021 2020 Cost at 01.01. 3.960 3.531 1.286 Additions 1.767 429 2.245 Disposals (619) 0 0 Cost at 31.12. 5.108 3.960 3.531 Amortisation and impairment losses at 01.01. (2.135) (1.235) (688) Amortisation for the year (808) (900) (545) Reversal regarding disposals 619 0 (2) Amortisation and impairment losses at 31.12. (2.324) (2.135) (1.235) Carrying amount at 31.12. 2.784 1.825 2.296 NOTES GreenMobility I To index 53 14. Trademarks DKK’000 2022 2021 2020 Cost at 01.01. 0 0 0 Additions 5.584 0 0 Disposals 0 0 0 Cost at 31.12. 5.584 0 0 Amortisation and impairment losses at 01.01. 0 0 0 Amortisation for the year (558) 0 0 Reversal regarding disposals 0 0 0 Amortisation and impairment losses at 31.12. (558) 0 0 Carrying amount at 31.12. 5.026 0 0 NOTES GreenMobility I To index 54 15. Land and buildings (right-of-use assets) DKK’000 2022 2021 2020 Cost at 01.01. 7.532 7.506 7.440 Additions 0 26 66 Disposals (10) 0 0 Cost at 31.12. 7.522 7.532 7.506 Depreciation at 01.01. (3.859) (2.454) (1.039) Depreciation for the year (1.397) (1.405) (1.415) Reversal regarding disposals 0 0 0 Depreciation at 31.12. (5.256) (3.859) (2.454) Carrying amount at 31.12. 2.266 3.673 5.052 The carrying amount of land and buildings solely comprises assets held under leases. NOTES GreenMobility I To index 55 16. Cars (right-of-use assets) DKK’000 2022 2021 2020 Cost at 01.01. 134.138 100.355 71.163 Additions 77.666 39.742 33.415 Subsidies (4.464) 0 (2.968) Disposals (11.172) (5.958) (1.255) Cost at 31.12. 196.168 134.138 100.355 Depreciation at 01.01. (50.649) (31.906) (17.574) Depreciation for the year (22.350) (14.933) (10.966) Reversal regarding disposals 0 (3.810) (3.366) Depreciation at 31.12. (72.999) (50.649) (31.906) Carrying amount at 31.12. 123.169 83.489 68.449 The carrying amount of cars solely comprises assets held under leases. Assets held under leases cannot be provided as security for the Company’s commitments. For cars owned by the Group, please refer to note 17. NOTES GreenMobility I To index 56 17. Cars (own cars) DKK’000 2022 2021 2020 Cost at 01.01. 36.245 28.429 0 Additions 99.344 7.816 37.305 Subsidies (17.954) 0 (8.876) Disposals (26.448) 0 0 Cost at 31.12. 91.187 36.245 28.429 Depreciation and impairment losses at 01.01. (4.101) (1.042) 0 Depreciation for the year (11.014) (3.453) (1.002) Exchange rate adjustment 0 394 40 Reversal regarding disposals 7.864 0 0 Depreciation and impairment losses at 31.12. (7.251) (4.101) (1.042) Carrying amount at 31.12. 83.936 32.144 27.387 The carrying amount comprises assets owned by the Group. NOTES GreenMobility I To index 57 NOTES 18 . Deposits on ordered cars GreenMobility has as of 31 December 2022 not placed orders for new cars and as a consequence, no deposits have been paid. In comparison, DKK 7,8 million was paid in deposit in 2021 for ordered cars. GreenMobility I To index 58 Not due Between 1 and 30 days Between 31 and 60 days More than 60 days 2022 DKK’000 Total 2021 DKK’000 Total 2020 DKK’000 Total Gross receivables 4.934 4.960 2.794 4.537 17.225 6.523 4.184 Provisions for bad and doubtful debts (564) (3.721) (148) (3.945) (8.378) 1.849 1.373 Net receivables 4.370 1.239 2.646 592 8.847 4.674 2.811 19. Trade receivables 2022 Age analysis DKK’000 2022 2021 2020 Provisions account at 01.01. 1.849 1.373 853 Net change in provision for bad and doubtful debts 6.529 476 520 Provisions account at 31.12. 8.378 1.849 1.373 The expected credit losses on trade receivables are estimated using a provision matrix and assessment of individual debtors. Approximately 50% of receivables ex. VAT above 60 days is offset in the allowance for loss. Historical experience has indicated that a certain part of the outstanding debt is paid through collection agen- cies. Receivables from 1-60 days are considered with a small credit risk and offset accordingly. Receivables that are not past due are predominantly deemed to have a high credit quality, thus no allowance for loss is offset for these receivables. A provision of 85% is made on receiv- ables regarding damage to cars due to the higher credit risk on these customers. The Group’s customers are typically individual persons with a limited out- standing debt why the customers are generally not credit rated. With con- tracts with larger customers a credit rating will be applied. NOTES GreenMobility I To index 59 20. Share capital The share capital consists of 4.449.034 shares at DKK 0.4. The shares are not divided into classes. Change in share capital since the establishment of the Company: DKK’000 2021 Establishment, registered on 24.10.2013 (private limited company) 80 Capital increase, registered on 11.03.2016 as part of the conversion into a public limited company 420 Capital increase, registered on 16.06.2017 as part of the Company’s admission for listing on Nasdaq First North 167 Capital increase, registered on 25.03.2019 147 Capital increase, registered on 15.11.2019 141 Capital increase, registered on 19.10.2020 224 Capital increase, registered on 29.09.2021 589 Capital increase, registered on 09.05.2022 and on 26.09.2022 12 Share capital at 31.12.2022 1.780 NOTES GreenMobility I To index 60 21. Lease liabilities Lease payments Nominal amount DKK’000 31.12.2022 31.12.2021 31.12.2020 Within one year from the balance sheet date 55.990 35.141 21.936 Between one and five years from the balance sheet date 67.700 53.349 57.477 After more than five years from the balance sheet date 0 0 0 123.690 88.490 79.413 Discounting premium to be recognised in future as an expense (4.719) (3.060) (3.385) Present value of lease payments 118.971 85.430 76.028 Current liabilities 53.557 33.477 20.167 Non-current liabilities 65.414 51.953 55.860 118.971 85.430 76.027 The Company lease cars through finance lease agreements. The lease periods vary from three to five years, after which a residual value has been agreed, that is guaranteed by the Company, and the Company has an option to buy the cars at the resid- ual value. All lease agreements follow a fixed repayment profile, and no agreements contain provisions about contingent lease payments. The lease agreements are non-cancellable over the agreed lease periods but may be prolonged on renewed terms. Management has the intention to take over the cars as the lease term end, why the lease liabilities and assets cf. note 15 and 16 include the residual value. The Company has entered into a lease agreement on premises. This agreement is non-cancellable until 31.05.2024, after which it may be termi- nated at six months’ notice. The lease agreement follows a fixed repayment profile that is subject to indexation, and it does not contain any provisions about contingent lease payments. The annual lease payment is DKK 1,195k exclusive of VAT. The increase in the portion of the lease liability falling due within one year is due to increase fleet and a portion of the older fleet in Copenhagen and Belgium reaching end of lease term. NOTES GreenMobility I To index 61 22. Loans Loan from the Danish Green Investment Fund In September 2021, GreenMobility entered a loan agreement with the Danish Green Investment Fund for financing of the company’s electric cars primarily for Sweden and Finland. The agreement was in June 2022 extended to also finance electric cars in Germany. The loan agreement is provided as a loan frame of DKK 100 million, which can be drawn upon in a number of tranches. In 2021, GreenMobility received the first tranche of DKK 24.6 million and in 2022, GreenMobility has received an additional second tranche of DKK 58.2 million which has been used to finance new cars in Sweden & Finland as well as some of the fleet in Germany. GreenMobility has drawn a total of DKK 82.8 million of the loan facility. GreenMobility has repaid DKK 7,8 mil- lion in total of the loan, resulting in a loan balance as of 31 December 2022 of DKK 75.0 million. The loan is repaid over a 5-year period, respectively from each tranche beginning, and as such on a profile cor- responding to the depreciation model of the cars. First ranking floating charge of the assets in both GreenMobility Sweden AB, in GreenMobility Finland Oy and in GreenMobility Germany GmbH, proportionally to the fleet size. Additionally, a first ranking pledge of the shares in both GreenMobility Sweden AB, GreenMobility Finland Oy and GreenMobility Germany GmbH, as well as a Danish assignment over the intra-group loans. As of 31 December 2022, the book value of the charge is DKK 75,0 million. During the loan period, GreenMobility must ensure sufficient liquidity for debt service for the following 9 month, meas- ured on quarterly basis. Additionally ensure that the loan value does not exceed 74% of the asset value. As of 31 December 2022, no covenants have been broken. NOTES Loan from NEFCO In June 2022, GreenMobility entered a loan agreement with NEFCO, for partly financing of its electric fleet in Finland. The loan agreement provides GreenMobility with a loan of € 1 million, which has been fully paid out. The loan is repaid over a 6-year period, with the first year being without repay- ments. Therefore, no repayment was made during 2022, and the loan balance as of 31 December 2022 is € 1 million. Second ranking floating charge of the assets in GreenMobility Finland Oy has been established. Additionally, a second ranking pledge of the shares in GreenMobility Finland Oy. The loan carries similar covenants as the loan from The Danish Green Investment Fund and similarly no covenants have been broken as of 31 December 2022. GreenMobility I To index 62 23. Other payables DKK’000 2022 2021 2020 Salaries and wages, personal income tax, social security costs, etc payable 534 1.520 1.999 Holiday pay obligations 1.100 1.283 865 Other expenses payable 10.672 5.927 4.906 12.306 8.730 7.770 Non-current Holiday pay obligations 0 0 1.157 25. Recourse guarantee commitments, contingent liabilities and contractual obligations The Company has entered into long term agreements with two major IT providers to support the software solution of the platform. The contracts can be terminated 3 or 6 months in advance, respectively. The Company’s liabilities at the end of December 2022 total DKK 3,930k. The Company has entered a loan agreement with the Danish Green Investment Fund and NEFCO on financing of cars in Sweden, Finland and Germany. The loan is distributed as sub-loans to the entities, proportionally to their fleet sizes. For more information on the securities provided, see note 22 for details. GreenMobility has provided an on-de- mand guarantee of DKK 991k to for any balances between GreenMobility a cooperation agreement on car rental service. The guarantee is non-cancel- lable by GreenMobility. The agreement may be terminated at six months’ notice, equivalent to an amount of DKK 690k. GreenMobility has entered into a com- mercial lease agreement with Jeudan parking facilities. The lease may be ter- minated at six months’ notice, however, no earlier than on 31.05.2024, equiva - lent to an amount of DKK 2,282k. Refer also to Note 21 on contingent liabilities regarding lease liabilities. GreenMobility has provided an on-de- mand guarantee of DKK 6,138k to collateral for any balances between Nederland B.V. pursuant to a lease con- tract for the leased cars in Amsterdam. DKK’000 2022 2021 2020 Statutory audit 418 404 438 Audit-related services 490 35 40 Tax related services related to VAT 0 61 15 Other services Comprised of warrants, reporting standards & subsidiaries 52 35 239 Total fee to statutory auditors 960 535 732 24. Fee to statutory auditors NOTES GreenMobility I To index 63 26. Cash flows DKK’000 2022 2021 2020 Change in receivables, inventory, prepayments and accrued income (9.887) (3.988) (2.384) Change in trade payables, other payables etc 6.493 (7.928) 11.728 Working capital changes (3.394) (11.916) 9.344 Lease liabilities at 01.01. 85.430 76.027 60.226 (21.172) (22.783) (14.183) Adjustment of other non-cash items, including: New lease liabilities incurred and settlement of lease liabilities 52.138 30.278 28.764 Interest charged for the year on lease liabilities 2.575 1.908 1.220 Lease liabilities at 31.12. 118.480 85.430 76.027 NOTES GreenMobility I To index 64 27. Related parties Group enterprises Name Registered in Basis of influence GreenMobility Sweden AB Gothenburg, Sweden 100% subsidiary GreenMobility Finland OY Helsinki, Finland 100% subsidiary GreenMobility Belgium NV Antwerp, Belgium 78,6% subsidiary GreenMobility Gent BV Gent, Belgium 78,6% subsidiary GreenMobility Germany GmbH Hamburg, Germany 100% subsidiary Twist Mobility GmbH Stuttgart, Germany 100% subsidiary GreenMobility Austria GmbH Vienna, Austria 100% subsidiary Fetch Mobility BV Amsterdam, Netherlands 100% subsidiary Other Related Parties Name Registered in Basis of influence HC Andersen Capital Holding Aps Birkerød, Denmark Tue Østergaard, Chairman of the Board Henrik Isaksen, HICO Group ApS & Mobility Service Danmark A/S Denmark Ownership 25,2% NOTES GreenMobility I To index 65 27. Related parties (continued) Transactions between related parties and GreenMobility A/S DKK’000 2022 2021 2020 Services purchased 2.157 3.370 3.128 Cars purchased 7.543 0 0 Guarantee commission (expense) 39 163 319 Receivables from related parties Payables to related parties DKK’000 31.12.2022 31.12.2021 31.12.2020 31.12.2022 31.12.2021 31.12.2020 Other related parties 0 466 0 39 163 2.407 Services acquired from related parties comprise administrative services, con- sultancy, rent of cars and purchase of cars. They are acquired at normal selling prices as well and all arrangements have been made on an arm’s length basis. Interest on balances and guarantee commission has been paid at a rate that a third party could be expected to charge. The guarantee commission concerns the HICO Group ApS’s recourse guarantee for the lease liabil- ities. The guarantee commission is 0.5% per annum on the lease liabilities. The Company has entered into agree- ments with Mobility Service Danmark A/S about the preparation and charg- ing of the Company’s car fleet that is used at Mobility Service Denmark A/S’s locations in Copenhagen and Aarhus. Additionally, in some cases Mobility Service A/S handles car repairs. H. C. Andersen Capital Holding ApS supports the Company with consul- tancy service related to capital market. Please refer to Note 7 and 8 for informa- tion about remuneration to the Board of Directors, the Executive Board and other management employees. NOTES Other Related Parties GreenMobility I To index 66 28. Acquisition of Subsidiaries As announced on 1 February 2022 in company announcement no. 106, GreenMobility acquired Fetch Mobility B.V. (Fetch) in the Netherlands. Fetch has been operating electric free float carsharing in Amsterdam since 2019, in many ways a similar business struc- ture as GreenMobility’s. Fetch has built up a strong customer base in the Netherlands and has a well-run operation. GreenMobility took over 100% of the shares in the company, as of 1 February 2022. As part of the acquisi- tion, GreenMobility took over a team of 3 employees and the existing fleet of 60 cars. The existing fleet has been returned to the lease provider during the year has been replaced with a new fleet of 150 cars, of which the last cars were delivered in January 2023. Fetch customers were migrated to GreenMobility’s platform and now have access to all the services GreenMobility offers. Fetch has been included in the Consolidated Financial Statements of GreenMobility A/S as of 1 January 2022. GreenMobility A/S has made the follow- ing final calculation of the fair value of the acquired net assets an equity at the time of the acquisition: The acquisition in 2021 is related to the purchase of Twist Mobility GmbH. DKK’000 2022 2021 Trademarks 5.584 0 Proberty, plant and equipment 0 490 Receivables 257 476 Deferred tax 379 (126) Other payables (332) (1.153) Acquired net Assets 5.888 (313) Equity 0 0 Estimated fair value of the business 5.888 (313) Acquired cash at bank 436 313 Cash consideration at closing 6.324 0 NOTES GreenMobility I To index 67 29. Ownership and group structure The Company has registered the follow- ing shareholders as holding more than 5% of the voting rights or more than 5% of the nominal value of share capital: • HICO Group ApS & Henrik Isaksen, Reg. No 21517909. Ownership 25.2% • • Kapitalforeningen MP Invest, Reg. No 28386540. Ownership 9.2% • Kapitalforeningen BankInvest Select No 38365029. Ownership 6.2% 30. Financial risks and financial instruments Categories of financial instruments DKK’000 2022 2021 2020 Deposits 423 360 1.111 Trade receivables 8.847 4.674 2.811 Other receivables 9.832 6.092 6.937 Receivables from other related parties 0 466 0 Cash 43.613 130.132 32.443 Financial assets measured at amortised cost 64.737 141.724 43.302 118.971 85.431 76.027 Trade payables 6.135 3.094 8.581 Payables to other related parties 39 163 2.407 Other payables 12.306 8.730 8.927 Non-current other payables 0 0 1.157 Financial liabilities measured at amortised cost 137.451 97.418 97.099 NOTES GreenMobility I To index 68 30. Financial risks and financial instruments (continued) For all of the Company’s assets and liabilities, their carrying amount is con¬- sidered to be an approximation of the fair value as they are either current or applicable to leases incepted shortly before the balance sheet date, for which reason there has not been any signifi¬- cant changes in the market rate since their inception. The Group has no financial instruments measured at fair value. Because of its activities and invest¬- ments, the Group is exposed to various financial risks, including credit risks. The Group pursues a policy of operating with a low risk profile so that currency risks, interest rate risks and credit risks only arise from commercial affairs and conditions. It is the Company’s policy not to conduct active speculation in financial risks. With the current Group structure, the company is exposed to EUR and SEK currencies. Relevant circumstances regarding the Group’s risk management are described below. Interest rate risks The Group has cash deposited with its banks at market terms. The Group is exposed to increased interest rates which would impact the Groups leasing and loan agreements. An increase in the interest rate by 1% on lease liabilities would have an effect of estimated DKK 1 million on finance expenses of the group on a yearly basis. Some of the Group’s leasing agreement are on fixed interest rates but more than half of the Group’s interest-bearing debt is on variable interest rates. Liquidity risks The Group ensures sufficient cash resources in managing its liquidity. The Group’s cash resources are com- posed as follows: DKK’000 2022 2021 2020 Cash 43.613 130.132 32.443 Total 43.613 130.132 32.443 Credit risks The Group’s primary credit risk is related to trade receivables. The Group is not exposed to major risks from a single customer or business partner. So far, For further details, please refer to Note 3 "Going Concern". NOTES the Group has not sustained any major losses on receivables, and the risk of such losses on total receivables at 31.12.2022 is deemed acceptable. For further details, refer to Note 19 “Trade receivables”. To reduce the Group’s counter party risks, deposits are only made with reputable banks. Capital structure Management regularly assesses whether the Group’s capital struc- ture is consistent with the interests of the Group and its shareholders. The general objective is to ensure a capital struc¬ture that supports long-term economic growth as well as maximizes returns for the Group’s shareholders. The Group has subsequently raised capital through four capital increases in 2019, 2020 and 2021 since its origi- nal listing in 2017. The Group’s capital structure is com¬posed of equity (including share capital and retained earnings) for its operation and a combination of leasing and loans to finance its fleet of electric cars. GreenMobility I To index 69 32. Events after the balance sheet date 31Discontinued operations Discontinuing operations in 2020 include the termination of the franchise agreement with Vy related to the operation i Oslo, Norway. Furthermore it include the termination of contract with the Groups former IT partner Vulog as Vy customers was the only remaining customers on that platform. The close down was executed i co-operation with Vy as well as Vulog as both parties with the termination contracts was allowed to enter into a new joined contract. 2022 2021 2020 Revenue Income from franchising agreements, including resale of hardware 0 0 921 Other operating Income 0 0 1.729 External Expenses 0 0 (2.059) Wages and salaries 0 0 0 Profit/loss before tax 0 0 591 Tax on profit/loss for the year 0 0 0 Profit/loss for the year from discontinued operations 0 0 591 Cash flow from discontiued operations 0 0 591 On 10 January 2023, GreenMobility announced an updated strategy of consolidation into its core markets. As a consequence, two markets have been closed and electric vehicles have been moved to cities with higher reve- nue per car, to further strengthen the overall growth expectations. This will strengthen the company’s liquidity position and the company expects to bring the company close to break-even on group level by end of 2023 and at the same time expect group profit in 2024 based on its current business operation. At the same time GreenMobility announced that there is no need for new capital in 2023, and thus no plans or expectation of capital increases during the year. On 2 March 2023, GreenMobility announced through company announcement 119, the appointment of Kasper Gjedsted as Group CEO. Kasper has joined the company as of 6 March 2023. Going forward, the exec- utive management consists of Group CEO Kasper Gjedsted and Group CFO Anders Wall. NOTES GreenMobility I To index 70 33. Summary of significant accounting policies The Annual Report is presented in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act for reporting class D enterprises. The annual report has been presented in DKK. Basis of recognition and measurement Assets are recognized in the balance sheet when it is probable as a result of a prior event that future economic bene- fits will flow to the Group, and the value of the asset can be measured reliably. sheet when the Group has a legal or constructive obligation as a result of a prior event and it is probable that future economic benefits will flow out of the Group, and the value of the liability can be measured reliably. On initial recognition, assets and liabili- ties are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item. Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or inval- idate affairs and conditions existing at the balance sheet date are considered on recognition and measurement. Income is recognized in the income statement when earned, whereas costs are recognized by the amounts attrib- utable to the financial year. Principles of consolidation The consolidated financial statements are prepared on the basis of the finan- cial statements of the parent company and the individual subsidiaries, and these are prepared in accordance with the Group’s accounting policies and for the same accounting period. Intra-group income and expenses together with all intra-group profits, receivables and payables are eliminated on consolidation. In the preparation of the consolidated financial statements, the book value of shares in subsidiaries held by the parent company is set off against the equity of the subsidiaries. Segmentation The reporting of operating segments is in accordance with the internal report- ing to the Executive Management which constitute The Group’s chief operating decision makers. Segment information is prepared in accordance with the Group’s accounting policies and the internal financial reporting framework. GreenMobility have identified several operating segments which have been aggregated into reporting segment. The operating segments all share sim- ilar economic characteristics, are similar in the nature of services, the methods used to provide the services and cus- tomer base. Cash flow statement The cash flow statement is compiled according to the indirect method based on the subtotal “Operating profit/loss” in the income statement. Cash flows show how the following three activities have affected cash for the year: • Cash flows from operating activities are composed of operating profit or loss adjusted for non-cash operat- ing items, working capital changes for the year and income taxes paid or received. • Cash flows from investing activities comprise cash flows from the pur- chase and sale of intangible assets, property, plant and equipment. • Cash flows from financing activi- ties are composed of cash flows from capital increases, loans from group enterprises, and payments (repayments and interest) regard- ing leases. Cash and cash equivalents comprise cash and bank deposits. NOTES GreenMobility I To index 71 33. Summary of significant accounting policies (continued) INCOME STATEMENT Revenue Revenue primarily arises from users’ car drives, and it is recognized when the drive has ended. Revenue is calculated net of VAT, duties and discounts. Subsidies and grants Subsidies are recognized when it is virtually certain that the conditions underlying the subsidies have been met and that the subsidy will be received. Subsidies related to an asset are deducted from the cost of such asset whereas operating grants, grants for marketing activities, and government COVID-19 compensation packages are recognized as other operating income as and when the conditions have been fulfilled. Other operating income Other operating income comprises income of a secondary nature as viewed in relation to the Group’s primary activ- ities. Other operating income consists of non-recurring operating grants, gov- ernment grants, marketing grants and income not related to primary activities. External expenses External expenses comprise expenses for the operation of cars, advertising, administration, premises, bad debts, etc. The Group recognizes lease payments for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as personal computers, small items of office furniture and telephones) as external expense on a straight-line basis over the term of the lease. Staff costs Staff costs comprise salaries and wages, social security costs, pension contri- butions, etc. for the Group’s staff. All pension plans are defined contribution plans. Share-based payments The Group has issued equity-settled warrants to Board of Directors and Executive Board as part of the Group’s incentive plans in accordance with the authorization given by the shareholders to the Board of Directors. The value of services received in exchange for warrants granted is meas- ured at fair value on the grant date using an appropriate valuation method. The fair value is recognized in profit or loss as staff costs with a corresponding entry in equity, over the period in which the service conditions are fulfilled (vest- ing period). At the initial recognition of the warrants, the number of warrants expected to be vested is estimated. Subsequently, the amount is adjusted for changes in the estimated number of warrants ultimately vested. Depreciation and amortisation on intangible assets and property, plant and equipment Intangible assets and property, plant and equipment including leased assets where an option to acquire the assets is expected to be exercised is depreciated assets without an option to acquire the assets after expiry of the lease term are depreciated over the shorter of the useful life of the asset and the lease term. On this basis intangible assets and property, plant and equipment are depreciated on a straight-line basis over the following periods: Buildings 5 years Cars 3-5 years Development projects 3 years Trademarks. 10 years Management reviews its estimate of the useful lives of intangible assets, prop- erty, plant and equipment annually. Gains or losses arising from the disposal of items of intangible assets or property, plant and equipment is determined as the difference between the selling price net of selling costs and the carry- ing amount at the time of sale, and it is recognized in the income statement as part of amortisation and depreciations. Financial income and expenses Financial income and expenses are recognized in the income statement by the amounts attributable to this NOTES GreenMobility I To index 72 33. Summary of significant accounting policies (continued) financial year. These items comprise interest income and interest expenses, realized and unrealized exchange gains and losses on liabilities and foreign cur- rency transactions. Income tax Tax on profit for the year comprises current tax on the expected taxable income for the year and adjustments for the year of deferred tax less the portion of tax for the year which con- cerns other comprehensive income and changes in equity. Current and deferred tax relating to other comprehensive income and changes in equity is rec- ognized directly in equity. BALANCE SHEET Intangible assets Development projects are measured at cost less accumulated amortisation and impairment losses. Amortisation occurs from the time when the development project is put into service. Development projects are written down to the lower of recoverable amount and carrying amount. Trademarks are measured at cost less accumulated amortisation and impair- ment losses. Amortisation occurs from the time the trademark is acquired. Trademarks are written down to the lower of recoverable amount and car- rying amount. Property, plant and equipment Property, plant and equipment com- prise land and buildings held under leases and cars, both held under leases and directly owned, and is initially measured at cost. For assets held under leases, cost is present value of future lease payments plus lease payments made before the commencement date and direct transaction costs and less assets where an option to acquire the assets is expected to be exercised is depreciated over the useful life of the asset. For directly owned assets the cost includes the costs directly attributable to the purchase of the asset, until the asset is ready to use. The basis of depre- ciation is cost less residual value. The residual value is measured under the assumption that the entity exercise an option to acquire the assets after the expiry of the lease term and is the esti- mated amount that would be earned if selling the asset today net of selling costs, if the asset is of an age and a con- dition that is expected after the end of option to acquire the assets after expiry of the lease term are depreciated over the shorter of the useful life of the asset and the lease term. Depreciation methods, useful lives and residual values are reassessed annually. Property, plant and equipment are writ- ten down to the lower of recoverable amount and carrying amount, refer to the section below on impairment losses. Impairment losses on property, plant and equipment The carrying amounts of items of prop- erty, plant and equipment are tested at the balance sheet date for any indi- cation of impairment. If impaired, the recoverable amount of the asset is estimated to determine the need for any writedown for impairment and the extent thereof. The recoverable amount is calculated as the higher of the asset’s fair value net of selling costs and value in use. When the value in use is determined, esti- mated future cash flows are discounted at present value using a discount rate that reflects current market estimates of the time value of money and the par- ticular associated risks, and for which no adjustment has been made in the estimated future cash flows. If the recoverable amount of the asset is lower than the carrying amount, the carrying amount is written down to recoverable amount. Impairment losses are recognized in profit or loss. In case of any subsequent reversals of impairment losses resulting from changes in assumptions underly- ing the calculated recoverable amount, the carrying amount of the asset is increased to the adjusted recoverable amount, however, not exceeding the carrying amount which the asset would have had if no writedown for impair- ment had been made. Receivables Receivables are measured at amortized cost, usually equalling nominal value less writedowns for bad and doubtful debts. Inventory Inventories are measured at cost prices. use of the same car model, therefore no amortization is assumed. Acquisitions The assets, liabilities, and contingent liabilities of acquired companies have been recognized under the purchase method in the financial statements of GreenMobility. The key assets of the companies are, trademarks, customer relations, property, plant and equip- ment, inventories, receivables, deferred tax, and payables. Especially regarding the intangible assets acquired, there are no efficient markets to be used to determine fair value. Therefore, man- agement has made an estimate in connection with the calculation of the fair value of the acquired assets and liabilities at the date of acquisition and has allocated the purchase price on that basis. Prepayments and accrued income Prepayments and accrued income comprise incurred costs relating to sub- sequent financial years. Prepayments and accrued income are measured at cost. NOTES GreenMobility I To index 73 Dividends Dividend is recognized as a liability at the time of adoption at the general meeting. Dividend proposed for the financial year is disclosed as a separate item in equity. Lease liabilities The lease liability is initially measured at the present value of the lease payments that are not paid at the commence- ment date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. - urement of the lease liability comprise: • Fixed lease payments including lease payments during periods covered by an option to extend the lease if it is rea- sonably certain that such options will be exercised less any lease incentives receivable; • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the com- mencement date; • The amount expected to be payable by the lessee under residual value guar- antees; and • The exercise price of purchase options, if it is reasonably certain that such options will be exercised. The lease liability is presented as a sep- arate line in the consolidated statement of financial position. The lease liability is subsequently meas- ured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability (and makes a corresponding adjust- ment to the related right-of-use asset) whenever: • The lease term has changed or there is a significant event or change in cir- cumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. • The lease payments change due to changes in an index or rate or a change in expected payment under a guaran- teed residual value, in which cases the lease liability is remeasured by discount - ing the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used). • A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease pay- ments using a revised discount rate at the effective date of the modification. The Group did not make any such adjust- ments during the periods presented. Current tax and deferred tax The current tax payable and receivable is recognized in the balance sheet as tax computed on this year’s taxable income, adjusted for prior years’ taxable income and prepaid taxes. Deferred tax is measured in accordance with the balance sheet liability method of temporary differences between the carrying amount and tax-based value of assets and liabilities. Where the computation of the tax base can be made according to alternative tax rules, deferred tax is measured on the basis of the planned use of the asset or settle- ment of the liability. Deferred tax assets, including the tax base of tax loss carryforwards, are measured by the amount at which the asset is expected to be realized either as an elimination against tax on future income or as a set-off against deferred tax liabilities. Any deferred net tax assets are measured at their net realizable value. Deferred tax is measured based on the tax regulations and tax rates that will be in effect using the laws at the bal- ance sheet date, when the deferred tax is estimated to be triggered as current tax. Changes in deferred tax resulting from changed tax rates are recognized in the income statement. Other financial liabilities Other financial liabilities are measured at amortised cost, which usually equals nominal value. Loan liabilities The loan liability liabilities are meas- ured at present value, however split into short-term and long-term liability. As the loans are repaid the present value will be adjusted accordingly. To the extent additional tranches of the loan is committed, then such tranches will follow a separate value calculation relative to its installment date and repayments. Any fees will be recognized as financial expenses. Foreign currency translation On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in for- eign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange dif- ferences that arise between the rate at the transaction date and the rate in effect at the payment date, or the bal- ance sheet date, are recognized in the income statement as financial income or financial expenses. Key figures definition Solvency ratio is calculated as equity incl. minority interests divided by total assets. 33. Summary of significant accounting policies (continued) NOTES GreenMobility I To index 74 FINANCIAL STATEMENTS - PARENT 74 Income statement 75 Statement of comprehensive income 76 Balance sheet 78 Statement of changes in equity 80 Notes 79 Cash flow statement GreenMobility I To index 75 DKK’000 Notes 31.12.2022 31.12.2021 31.12.2020 Revenue 2 65.451 51.074 32.750 Other operating income 3 875 3.714 4.506 External expenses 4 (53.813) (38.548) (37.390) Gross profit/loss 12.513 16.240 (134) Staff costs 5 (24.286) (26.039) (29.237) Amortisation & depreciation 6 (17.906) (14.089) (12.301) Operating profit/loss (29.679) (23.888) (41.672) Results from investment in subsidiaries (47.219) (24.509) (15.677) Financial expenses 7 (1.799) (1.036) (1.797) Profit/loss before tax (78.697) (49.433) (59.146) Tax on profit/loss for the year 8 858 0 0 Profit/loss - continuing operations (77.839) (49.433) (59.146) 20 0 0 591 Profit/loss for the year (77.839) (49.433) (58.555) INCOME STATEMENT GreenMobility I To index 76 STATEMENT OF COMPREHENSIVE INCOME DKK’000 Notes 2022 2021 2020 Profit/loss for the year (77.839) (49.433) (58.555) Other comprehensive income - Exchange rate gain (519) (598) 898 Comprehensive income (78.358) (50.031) (57.657) Distribution of comprehensive income Shareholders of GreenMobility A/S (78.358) (50.031) (57.657) Comprehensive income (78.358) (50.031) (57.657) GreenMobility I To index 77 DKK’000 Notes 31.12.2022 31.12.2021 31.12.2020 Development projects 9 2.784 1,825 2.296 Intangible assets 2.784 1.825 2.296 10 2.240 3.646 5.052 Cars 11, 12 78.284 58.828 40.978 Property, plant and equipment 80.524 62.474 46.030 Deposits 353 342 1.099 Investments in subsidiaries 13 2.984 544 1.294 Receivables from group enterprises 17 65.868 19.682 14.454 Fixed asset investments 69.205 20.568 16.847 Non-current assets 152.513 84.867 65.173 Inventories 1.500 1.238 609 Trade receivables 3.347 3.882 2.322 Receivables from group enterprises 17 62.896 25.698 20.000 Other receivables 1.245 4.809 3.464 Prepayments and accrued income 682 894 99 Receivables 68.170 35.283 25.885 Cash at bank and in hand 15.582 118.041 19.909 Current assets 85.252 154.562 45.794 Assets 237.765 239.429 111.576 BALANCE SHEET GreenMobility I To index 78 DKK’000 Notes 31.12.2022 31.12.2021 31.12.2020 Share capital 1.780 1.768 1.179 Retained earnings 64.281 143.091 48.860 Currency reserves (219) 300 898 Equity 65.842 145.160 50.937 14 44.968 36.363 34.139 65.868 19.682 Other payables 0 0 1.157 Non-current liabilities 110.836 56.045 35.296 14 34.110 24.931 12.134 16.565 4.921 Trade payables 3.600 2.449 6.257 Payables to related parties 17 39 163 69 Other payables 15 6.773 5.760 6.883 Current liabilities 61.087 38.224 25.343 Liabilities 171.923 94.269 60.639 Equity and liabilities 237.765 239.429 111.576 BALANCE SHEET GreenMobility I To index 79 STATEMENT OF CHANGES IN EQUITY DKK’000 Share capital Retained earnings Currency reserves Equity Total Equity at 01.01.2020 955 29.114 0 30.069 Profit/loss 0 (58.555) 0 (58.555) Other comprehensive income 0 0 898 898 Capital increase 224 74.776 0 75.000 Expenses related to capital increase 0 (4.008) 0 (4.008) Share based 0 7.533 0 7.533 Equity at 31.12.2020 1.179 48.860 898 50.937 Equity at 01.01.2021 1.179 48.860 898 50.937 Profit/loss 0 (49.433) 0 (49.434) Other comprehensive income 0 0 (598) (598) Capital increase 589 146.813 0 147.403 Expenses related to capital increase 0 (5.994) 0 (5.994) Share based 0 2.846 0 2.846 Equity at 31.12.2021 1.768 143.092 300 145.160 Equity at 01.01.2022 1.768 143.092 300 145.160 Profit/loss 0 (77.839) 0 (77.839) Other comprehensive income 0 0 (519) (519) Capital increase 12 16 0 28 Expenses related to capital increase 0 0 0 0 Share based 0 (988) 0 (988) Equity at 31.12.2022 1.780 64.281 (219) 65.842 GreenMobility I To index 80 CASH FLOW STATEMENT DKK’000 Notes 2022 2021 2020 Operating profit/loss (29.679) (23.888) (41.672) Amortisation & depreciation 17.906 14.089 12.301 Share based payment cost (988) 2.846 7.533 Working capital changes 19 (19.465) (21.249) (26.658) Interest on leasing 19 (1.329) (891) 0 Tax on profit/loss for the year 858 0 0 Discontinued operations 0 0 591 Special tax credit received 72 0 0 Exchange rate adjustment - other comprehensive income 302 (598) 898 Exchange rate adjustments of cash and cash equivalents (821) 0 0 Other non-cash operating activities (288) (27) (66) Cash flows from operating activities (34.290) (29.718) (47.073) Cars acquired (3.115) 0 0 Development projects (1.766) (471) (2.245) Business acquisitions (5.889) 0 0 Deposits paid (11) (342) (70) Investment in subsidiaries (47.219) (24.509) (16.536) Cash flows from investing activities (58.000) (25.322) (18.851) The consolidated cash flow statement continues on the next page GreenMobility I To index 81 Financial expenses paid, less interest on lease liabilities (470) (145) (773) 19 (21.371) (12.696) (12.678) 11.644 24.603 0 Capital increase 28 147.403 75.000 Expenses related to capital increase, recognised in equity 0 (5.994) (4.008) Cash flows from financing activities (10.169) 153.172 57.541 Increase/decrease in cash and cash equivalents (102.459) 98.132 (8.383) Cash and cash equivalents at 01.01 118.041 19.909 28.292 Cash and cash equivalents at 31.12. 15.582 118.041 19.909 CONTINUED CASH FLOW STATEMENT GreenMobility I To index 82 1. Summary of significant accounting policies The Annual Report is presented in accordance with International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act for reporting class D enterprises. The annual report has been presented in DKK, which is also the functional currency of the Parent Company. The accounting policies are unchanged from previous year. Basis of recognition and measurement Assets are recognized in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Company, and the value of the asset can be measured reliably. sheet when the Company has a legal or constructive obligation as a result of a prior event and it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. On initial recognition, assets and liabili- ties are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item. Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or inval- idate affairs and conditions existing at the balance sheet date are considered on recognition and measurement. Income is recognized in the income statement when earned, whereas costs are recognized by the amounts attrib- utable to the financial year. Segmentation So far, the Company is only operating in one segment, and its management reporting does not include any other operating segments, for which reason no operating segment information is reported in the financial statements. Cash flow statement The cash flow statement is compiled according to the indirect method based on the subtotal “Operating profit/loss” in the income statement. Cash flows show how the following three activities have affected cash for the year: • Cash flows from operating activities are composed of operating profit or loss adjusted for non-cash operat- ing items, working capital changes for the year and income taxes paid. • Cash flows from investing activities comprise cash flows from the pur- chase and sale of intangible assets, property, plant and equipment. • Cash flows from financing activi- ties are composed of cash flows from capital increases, loans from group enterprises, and payments (repayments and interest) regard- ing leases. Cash and cash equivalents comprise cash and bank deposits. INCOME STATEMENT Revenue Revenue primarily arises from users’ car drives, and it is recognized when the drive has ended. Revenue is calculated net of VAT, duties and discounts. Subsidies and grants Subsidies are recognized when it is virtually certain that the conditions underlying the subsidies have been met and that the subsidy will be received. Subsidies related to an asset are deducted from the cost of such asset whereas operating grants, grants for marketing activities, and government COVID-19 compensation packages are recognized as other operating income as and when the conditions have been fulfilled. Other operating income Other operating income comprises income of a secondary nature as viewed in relation to the Company’s primary activities. Other operating income con- sists of non-recurring operating grants, government grants, marketing grants and income not related to primary activities. External expenses Other external expenses comprise expenses for the operation of cars, advertising, administration, premises, bad debts, etc. The Company recog- nizes lease payments for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as personal computers, small items of office furni- ture and telephones) as other external expense on a straight-line basis over the term of the lease. Staff costs Staff costs comprise salaries and wages, social security costs, pension contribu- tions, etc. for the Company’s staff. All pension plans are defined contribution plans. NOTES GreenMobility I To index 83 Share based payments The Company has issued equity-set- tled warrants to Board of Directors and Executive Board as part of the Group’s incentive plans in accordance with the authorization given by the shareholders to the Board of Directors. The value of services received in exchange for warrants granted is measured at fair value on the grant date using an appro- priate valuation method. The fair value is recognized in profit or loss as staff costs with a corresponding entry in equity, over the period in which the service conditions are fulfilled (vesting period). At the initial recognition of the warrants, the number of warrants expected to be vested is estimated. Subsequently, the amount is adjusted for changes in the estimated number of warrants ultimately vested. Depreciation and amortisation on intangible assets and property, plant and equipment Intangible assets and property, plant and equipment including leased assets where an option to acquire the assets is expected to be exercised is depreciated assets without an option to acquire the assets after expiry of the lease term are depreciated over the shorter of the useful life of the asset and the lease term. On this basis intangible assets and property, plant and equipment are depreciated on a straight-line basis over the following periods: Buildings 5 years Cars 3-5 years Development projects 3 years Trademarks. 10 years Management reviews its estimate of the useful lives of intangible assets, property, plant and equipment annually. Gains or losses arising from the disposal of items of intangible assets or property, plant and equipment is determined as the difference between the selling price net of selling costs and the carrying amount at the time of sale, and it is rec- ognized in the income statement as part of amortisation and depreciations. Income from investment in subsidiaries The items ”Income from investments in subsidiaries” in the income statement include the proportionate share of the profit for the year. Financial income and expenses Financial income and expenses are rec- ognized in the income statement by the amounts attributable to this finan- cial year. These items comprise interest income and interest expenses, realized and unrealized exchange gains and losses on liabilities and foreign currency transactions. Income tax Tax on profit for the year comprises cur- rent tax on the expected taxable income for the year and adjustments for the year of deferred tax less the portion of tax for the year which concerns other compre- hensive income and changes in equity. Current and deferred tax relating to other comprehensive income and changes in equity is recognized directly in equity. BALANCE SHEET Intangible assets Development projects are measured at cost less accumulated amortisation and impairment losses. Amortisation occurs from the time when the development project is put into service. Development projects are written down to the lower of recoverable amount and carrying amount. Trademarks are measured at cost less accumulated amortisation and impair- ment losses. Amortisation occurs from the time the trademark is acquired. Trademarks are written down to the lower of recoverable amount and carry- ing amount. Property, plant, and equipment Property, plant and equipment comprise land and buildings held under leases and cars, both held under leases and directly owned, and is initially measured at cost. For assets held under leases, cost is present value of future lease payments plus lease payments made before the commencement date and direct trans- action costs and less any lease incentives to acquire the assets is expected to be exercised is depreciated over the useful life of the asset. For directly owned assets the cost includes the costs directly attrib- utable to the purchase of the asset, until the asset is ready to use. The basis of depreciation is cost less residual value. The residual value is measured under the assumption that the entity exercise an option to acquire the assets after the expiry of the lease term and is the esti- mated amount that would be earned if selling the asset today net of selling costs, if the asset is of an age and a condition that is expected after the end of useful acquire the assets after expiry of the lease term are depreciated over the shorter of the useful life of the asset and the lease term. Depreciation methods, useful lives and residual values are reassessed annually. 1. Summary of significant accounting policies (continued) NOTES GreenMobility I To index 84 Property, plant and equipment are writ- ten down to the lower of recoverable amount and carrying amount, refer to the section below on impairment losses. Impairment losses on property, plant and equipment The carrying amounts of items of prop- erty, plant and equipment are tested at the balance sheet date for any indication of impairment. If impaired, the recover- able amount of the asset is estimated to determine the need for any writedown for impairment and the extent thereof. The recoverable amount is calculated as the higher of the asset’s fair value net of selling costs and value in use. When the value in use is determined, estimated future cash flows are discounted at present value using a discount rate that reflects current market estimates of the time value of money and the particular associated risks, and for which no adjust- ment has been made in the estimated future cash flows. If the recoverable amount of the asset is lower than the carrying amount, the carrying amount is written down to recoverable amount. Impairment losses are recognized in profit or loss. In case of any subsequent reversals of impairment losses resulting from changes in assumptions underlying the calculated recoverable amount, the carrying amount of the asset is increased to the adjusted recoverable amount, however, not exceeding the carrying amount which the asset would have had if no writedown for impairment had been made. Investments in subsidiaries Investments in subsidiaries are recog- nized and measured under the equity method. The items “Investments in subsidiaries” in the balance sheet include the pro- portionate ownership share of the net asset value of enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with addition of any remaining value of posi- tive differences (goodwill) and deduction of any remaining value of negative differ- ences (negative goodwill). The total net revaluation of investments in subsidiaries and associates is trans- ferred upon distribution of profit to “Reserve for net revaluation under the equity method” under equity. The reserves is reduced by dividend dis- tributed to the Company and adjusted for other equity movements in the subsidiaries. Subsidiaries with a negative net asset value are recognized af DKK 0. Any legal or constructive obligation of the Company to cover the negative bal- ance of the enterprise is recognized in provisions. Receivables Receivables are measured at amortized cost, usually equalling nominal value less writedowns for bad and doubtful debts. Inventory Inventories are measured at cost prices. use of the same car model, therefore no amortization is assumed. Acquisitions The assets, liabilities, and contingent liabilities of acquired companies have been recognized under the purchase method in the financial statements of GreenMobility. The key assets of the companies are, trademarks, customer relations, property, plant and equip- ment, inventories, receivables, deferred tax, and payables. Especially regarding the intangible assets acquired, there are no efficient markets to be used to deter- mine fair value. Therefore, management has made an estimate in connection with the calculation of the fair value of the acquired assets and liabilities at the date of acquisition and has allocated the purchase price on that basis. Prepayments and accrued income Prepayments and accrued income comprise incurred costs relating to sub- sequent financial years. Prepayments and accrued income are measured at cost. Dividends Dividend is recognized as a liability at the time of adoption at the general meeting. Dividend proposed for the financial year is disclosed as a separate item in equity. Lease liabilities The lease liability is initially measured at the present value of the lease payments that are not paid at the commence- ment date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. - urement of the lease liability comprise: • Fixed lease payments including lease payments during periods covered by an option to extend the lease if it is rea- sonably certain that such options will be exercised less any lease incentives receivable; • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; 1. Summary of significant accounting policies (continued) NOTES GreenMobility I To index 85 • The amount expected to be payable by the lessee under residual value guaran- tees; and • The exercise price of purchase options, if it is reasonably certain that such options will be exercised. The lease liability is presented as a sep- arate line in the consolidated statement of financial position. The lease liability is subsequently meas- ured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever: • The lease term has changed or there is a significant event or change in cir- cumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. • The lease payments change due to changes in an index or rate or a change in expected payment under a guaran- teed residual value, in which cases the lease liability is remeasured by discount- ing the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used). • A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discount- ing the revised lease payments using a revised discount rate at the effective date of the modification. Current tax and deferred tax The current tax payable and receivable is recognized in the balance sheet as tax computed on this year’s taxable income, adjusted for prior years’ taxable income and prepaid taxes. Deferred tax is measured in accordance with the balance sheet liability method of temporary differences between the carry- ing amount and tax-based value of assets and liabilities. Where the computation of the tax base can be made according to alternative tax rules, deferred tax is meas- ured on the basis of the planned use of the asset or settlement of the liability. Deferred tax assets, including the tax base of tax loss carryforwards, are meas- ured by the amount at which the asset is expected to be realized either as an elim- ination against tax on future income or as a set-off against deferred tax liabilities. Any deferred net tax assets are measured at their net realizable value. Deferred tax is measured based on the tax regulations and tax rates that will be in effect using the laws at the balance sheet date, when the deferred tax is estimated to be triggered as current tax. Changes in deferred tax resulting from changed tax rates are recognized in the income statement. Other financial liabilities Other financial liabilities are measured at amortised cost, which usually equals nominal value. Loan liabilities The loan liability liabilities are meas- ured at present value, however split into short-term and long-term liability. As the loans are repaid the present value will be adjusted accordingly. To the extent additional tranches of the loan is committed, then such tranches will follow a separate value calcula- tion relative to its installment data and repayments. Any fees will be recognized as financial expenses. Foreign currency translation On initial recognition, foreign currency transactions are translated applying the 1. Summary of significant accounting policies (continued) exchange rate at the transaction date. Receivables, payables and other mon- etary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transac- tion date and the rate in effect at the payment date, or the balance sheet date, are recognized in the income statement as financial income or financial expenses. NOTES GreenMobility I To index 86 DKK’000 2022 2021 2020 Revenue from own cars 65.451 51.074 32.750 65.451 51.074 32.750 Denmark 65.451 51.074 32.750 65.451 51.074 32.750 2. Segmentation NOTES GreenMobility I To index 87 3. Other operating income DKK’000 2022 2021 2020 Operating expenses of cars 34.844 26.220 20.780 Selling costs 5.844 5.548 5.512 Costs of premises 585 570 433 Administrative expenses 12.540 6.210 10.665 53.813 38.548 37.390 4. External expenses DKK’000 2022 2021 2020 Non-recurring operating grants & projects 875 3.714 2.831 Government Grant - Wage compensation COVID 0 0 896 Government Grant - Fixed costs COVID 0 0 779 875 3.714 4.506 * Government grants encompass the expected total grants in relation to compensation grants for March-June 2020. The Company has not applied for additional grants. NOTES Administrative expenses have increased significantly due mainly to increased activity and higher revenue as well as the start-up of a new contry and a take-over & implementation of another. In addition, the group has had increased cost related to recruitment to strengthen its organization. Finally, there is one-time cost of approxi- mately DKK 3.5 million related to projects. GreenMobility I To index 88 5. Staff costs DKK’000 2022 2021 2020 Wages and salaries 23.066 21.285 20.254 Share-based payment costs (988) 2.846 7.533 Defined contribution plans 1.785 1.447 1.204 Other social security costs 423 461 246 24.286 26.039 29.237 Average FTE (including part-time) 57 45 47 For information regarding remuneration to the Board of Directors and Executive Management, please refer to note 7 to the consolidated financial statements. 6. Amortisation, and depreciation DKK’000 2022 2021 2020 Depreciation of cars 15.702 11.784 10.341 Depreciation of land and buildings 1.397 1.405 1.415 Amortisation of development projects 807 900 545 17.906 14.089 12.301 7. Financial expenses DKK’000 2022 2021 2020 Financial expenses regarding finance leases 1.329 891 1.024 Financial expenses regarding finance loan 442 126 0 Other financial expenses (99) (102) 540 Guarantee commission 127 122 233 Interest expenses for financial liabilities measured at amortized cost 1.799 1.037 1.797 For information regarding share-based payment, please refer to note 8 to the consolidated financial statements. NOTES GreenMobility I To index 89 8. Tax on profit/ loss for the year DKK’000 2022 2021 2020 Current tax (858) 0 0 Change in deferred tax (7.205) 11.903 (7.767) Reversal of joint taxation contribution recognised 0 0 0 (8.063) 11.903 (7.767) Non-recognised deferred tax, refer to below 7.205 (11.903) 7.767 Tax recognised in profit/loss (858) 0 0 Tax computed on profit/loss before tax, 22% (17.313) (11.347) (12.882) Tax effect of non-deductible items 10.109 23.250 5.115 (7.205) 11.903 (7.767) Of this, non-recognised tax loss 7.205 (11.903) 7.767 Reversal of joint taxation contribution recognised 0 0 0 0 0 0 Effective tax rate (%) 1,1 0,0 0,0 NOTES GreenMobility I To index 90 8. Tax on profit/ loss for the year (continued) Deferred tax is incumbent on the following items: DKK’000 2022 2021 2020 Intangible assets (612) (402) (505) Assets held under finance leases (73) (3.943) 53 Tax deductible losses 45.002 15.395 27.298 44.317 11.050 26.846 Deferred tax asset not recognised (44.317) (11.050) (26.846) Carrying amount 0 0 0 Development projects For information on development pro- jects, please refer to note 13 to the Consolidated Financial statements as the parent company covers the groups consolidated development projects. 10. Land and buildings (right-of-use assets) (right of use assets), please refer to note 15 to the Consolidated Financial state- ments as the parent company covers the (right of use assets). 9. Intangible assets NOTES GreenMobility I To index 91 11. Cars (right-of-use assets) DKK’000 2022 2021 2020 Cost at 01.01. 105.581 72.261 71.163 Additions 43.146 38.890 2.353 Disposals (10.511) (5.571) (1.255) Cost at 31.12. 138.216 105.581 72.261 Depreciation at 01.01. (46.753) (31.283) (17.574) Depreciation for the year (14.810) (11.784) (10.341) Reversal regarding disposals 0 (3.686) (3.368) Depreciation at 31.12. (61.563) (46.753) (31.283) Carrying amount at 31.12. 76.653 58.828 40.978 The carrying amount of cars solely comprises assets held under leases. Assets held under leases cannot be provided as security for the Company’s commitments. DKK’000 2022 2021 2020 Cost at 01.01. 0 0 0 Additions 3.115 0 0 Disposals (594) 0 0 Cost at 31.12. 2.521 0 0 Depreciation at 01.01. 0 0 0 Depreciation for the year (601) 0 0 Reversal regarding disposals 0 0 0 Depreciation at 31.12. (601) 0 0 Carrying amount at 31.12. 1.920 0 0 12. Cars (own cars) NOTES GreenMobility I To index 92 13. Investment in subsidiaries DKK’000 2022 2021 2020 Cost at 01.01. 8.247 5.613 435 Additions 26.604 2.634 5.578 Adjustments 36.825 0 0 Disposals 0 0 (400) Cost at 31.12. 71.676 8.247 5.613 Revaluations at 01.01. (7.703) (4.319) 0 Net profit for the year (44.913) (24.509) (15.677) Amortisation of goodwill (558) 0 0 Adjustments (34.231) 0 0 Exchange rate gain 606 (598) 898 Offset in receivables from Group enterprises 18.107 21.723 10.460 Revaluations at 31.12. (68.692) (7.703) (4.319) Carrying amount at 31.12. 2.984 544 1.294 Name Registered office Ownership interest GreenMobility Sweden AB Gothenburg, Sweden 100% GreenMobility Finland OY Helsinki, Finland 100% GreenMobility Belgium NV Antwerp, Belgium 78,6% GreenMobility Gent BV Gent, Belgium 78,6% GreenMobility Germany GmbH Hamburg, Germany 100% Twist Mobility GmbH Stuttgart, Germany 100% GreenMobility Austria GmbH Vienna, Austria 100% Fetch Mobility BV Amsterdam, Netherlands 100% NOTES GreenMobility I To index 93 14. Lease liabilities Lease payments Nominal amount DKK’000 31.12.2022 31.12.2021 31.12.2020 Within one year from the balance sheet date 35.549 25.893 12.909 Between one and five years from the balance sheet date 46.071 37.446 34.796 After more than five years from the balance sheet date 0 0 0 81.620 63.339 47.705 Discounting premium to be recognised in future as an expense (2.542) (2.045) (1.432) Present value of lease payments 79.078 61.294 46.273 Current liabilities 34.110 24.931 12.134 Non-current liabilities 44.968 36.363 34.139 79.078 61.294 46.273 The increase in the portion of the lease liability falling due within one year is due to increase fleet and a portion of the older fleet in Copenhagen reaching end of lease term. The Company lease cars through finance lease agreements. The lease periods vary from three to five years, after which a residual value has been agreed, that is guaranteed by the Company, and the Company has an option to buy the cars at the resid- ual value. All lease agreements follow a fixed repayment profile, and no agreements contain provisions about contingent lease payments. The lease agreements are non-cancellable over the agreed lease periods but may be prolonged on renewed terms. Management has the intention to take over the cars as the lease term end, why the lease liabilities and assets cf. note 11 include the residual value. The Company has entered into a lease agreement on premises. This agreement is non-cancellable until 31.05.2024, after which it may be termi- nated at six months’ notice. The lease agreement follows a fixed repayment profile that is subject to indexation, and it does not contain any provisions about contingent lease payments. The annual lease payment is DKK 1,195k exclusive of VAT. NOTES GreenMobility I To index 94 15. Other payables DKK’000 2022 2021 2020 Salaries and wages, personal income tax, social security costs, etc payable 79 688 1.751 Holiday pay obligations 510 843 544 Other expenses payable 6.184 4.229 4.588 Current liabilities 6.773 5.760 6.883 Non-current Holiday obligations 0 0 1.157 16. Fee to statutory auditors DKK’000 2022 2021 2020 Statutory audit 318 393 395 Audit-related services 335 35 40 Tax related services 0 61 15 Other services 52 35 239 Total fee to statutory auditors 705 524 689 NOTES GreenMobility I To index 95 17. Group enterprises and Related parties Group enterprises Name Registered in Basis of influence GreenMobility Sweden AB Gothenburg, Sweden 100% subsidiary GreenMobility Finland OY Helsinki, Finland 100% subsidiary GreenMobility Belgium NV Antwerp, Belgium 78,6% subsidiary GreenMobility Gent BV Gent, Belgium 78,6% subsidiary GreenMobility Germany GmbH Hamburg, Germany 100% subsidiary Twist Mobility GmbH Stuttgart, Germany 100% subsidiary GreenMobility Austria GmbH Vienna, Austria 100% subsidiary Fetch Mobility BV Amsterdam, Netherlands 100% subsidiary Other Related Parties NOTES Name Registered in Basis of influence HC Andersen Capital Holding Aps Birkerød, Denmark Tue Østergaard, Chairman of the Board Henrik Isaksen, HICO Group ApS & Mobility Service Danmark A/S Denmark Ownership 25,2% GreenMobility I To index 96 17. Group enterprises and Related parties (continued) Services sold to related parties com- prise consultancy services, and they are sold at normal selling prices. Services acquired from related parties comprise administrative services, consultancy, and cars. They are acquired at normal selling prices as well and all arrange- ments have been made on an arm’s length basis. Interest on balances and guarantee commission has been paid at a rate that a third party could be expected to charge. The guarantee commis- sion concerns the HICO Group ApS’s recourse guarantee for the lease liabil- ities. The guarantee commission is 0.5% per annum on the lease liabilities. The Company has entered into agree- ments with Mobility Service Danmark A/S about the preparation and charg- ing of the Company’s car fleet that is used at Mobility Service Denmark A/S’s locations in Copenhagen and Aarhus. Additionally, in some cases Mobility Service A/S handles car repairs. In 2020, The Company has also rented cars from Mobility Service A/S on short term arrangements. H. C. Andersen Capital Holding ApS supports the Company with consul- tancy service related to capital market. Please refer to Note 7 and 8 in the Consolidated Financial Statement for information about remuneration to the Board of Directors, the Executive Board and other management employees. Receivables from related parties Payables to related parties DKK’000 31.12.2022 31.12.2021 31.12.2020 31.12.2022 31.12.2021 31.12.2020 Other related parties 0 0 0 39 163 69 NOTES DKK’000 2022 2021 2020 Services purchased 2.157 3.370 3.128 Cars purchased 7.543 0 0 Guarantee commission (expense) 39 163 319 Other Related Parties GreenMobility I To index 97 18. Recourse guarantee commitments, contingent liabilities and contractual obligations The Company has entered into long term agreements with two major IT providers to support the software solution of the platform. The contracts can be terminated 3 or 6 months in advance, respectively. The Company’s liabilities at the end of December 2022 total DKK 3,930k. The Company has entered a loan agreement with the Danish Green Investment Fund and NEFCO on financing of cars in its subsidiaries in Sweden, Finland and Germany. The loan is distributed as sub-loans to the subsidiaries, proportionally to their fleet sizes. For more information on the securities provided, see note 22 on the Group Consolidated Financials. GreenMobility has provided an on-demand guarantee of DKK 991k - lateral for any balances between GreenMobility and Københavns - tion agreement on car rental service. The guarantee is non-cancellable by GreenMobility. The agreement may be terminated at six months’ notice, equivalent to an amount of DKK 690k. GreenMobility has entered into a commercial lease agreement with and parking facilities. The lease may be terminated at six months’ notice, however, no earlier than on 31.05.2024, equivalent to an amount of DKK 2,282k. Refer also to Note 14 on contingent lia- bilities regarding lease liabilities. GreenMobility has provided an on-de- mand guarantee of DKK 6,138k to collateral for any balances between Nederland B.V. pursuant to a lease con- tract for the leased cars in Amsterdam. NOTES GreenMobility I To index 98 19. Cash flows DKK’000 2022 2021 2020 Change in receivables, inventory, prepayments and accrued income (33.492) (15.255) (32.838) Change in trade payables, other payables etc 14.714 (5.994) 6.180 Working capital changes (18.778) (21.249) (26.658) Lease liabilities at 01.01. 61.294 46.273 60.226 (21.371) (13.587) (12.678) Adjustment of other non-cash items, including: New lease liabilities incurred and Settlement of lease liabilities 37.826 27.717 (2.299) Interest charged for the year on lease liabilities 1.329 891 1.024 Lease liabilities at 31.12. 79.078 61.294 46.273 NOTES GreenMobility I To index 99 20. Discontinued operations Discontinued operations For information on Discontinued operations, please refer to note 31 to the Consolidated Financial statements. 21. Financial risks and financial instruments Categories of financial instruments DKK’000 2022 2021 2020 Deposits 353 342 1.099 Trade receivables 3.347 3.882 2.322 Other receivables 1.245 4.809 3.464 Receivables from Group enterprises 128.764 45.380 34.454 Cash 15.582 118.041 19.909 Financial assets measured at amortised cost 149.291 172.454 61.248 79.078 61.296 46.273 82.433 24.603 Trade payables 3.600 2.449 6.257 Payables to other related parties 39 163 69 Other payables 6.773 5.760 6.883 Non-current other payables 0 0 1.157 Financial liabilities measured at amortised cost 171.923 94.271 60.639 For other information on Financial risk and financial instruments than spe- cifically mentioned in the Financial Statement, please refer to note 30 in the Consolidated Financial Statement. Liquidity risks The Group ensures sufficient cash resources in managing its liquidity. The Group’s cash resources are com- posed as follows: DKK’000 2022 2021 2020 Cash 15.582 118.041 19.909 Total 15.582 118.041 19.909 For further details, please refer to Note 3 "Going Concern" in the Consolidated Financial Statements. NOTES GreenMobility I To index 100 1301 Copenhagen K, Denmark Business Registration No 35 52 15 85 Annual Report 2022 (9th financial year) The Annual Report has been presented and adopted at the Company’s Annual General Meeting on 21.04.2023 Chairman of the General Meeting A/S GreenMobility I To index 101 GreenMobility A/S I Landgreven 3, 4.sal I 1301 Copenhagen I Denmark I CVR-nr. 35521585 GreenMobility I To index Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2022-01-012022-12-312021-01-012021-12-312023-04-21213800PLNNPY2L2GUV16Reporting class D2013-10-242023-03-16Anders Wall213800PLNNPY2L2GUV16OpinionBasis for Opinion2023-03-16213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember1213800PLNNPY2L2GUV162022-01-012022-12-31213800PLNNPY2L2GUV162021-01-012021-12-31213800PLNNPY2L2GUV162020-01-012020-12-31213800PLNNPY2L2GUV162022-12-31213800PLNNPY2L2GUV162021-12-31213800PLNNPY2L2GUV162020-12-31213800PLNNPY2L2GUV162019-12-31ifrs-full:IssuedCapitalMember213800PLNNPY2L2GUV162020-01-012020-12-31ifrs-full:IssuedCapitalMember213800PLNNPY2L2GUV162020-12-31ifrs-full:IssuedCapitalMember213800PLNNPY2L2GUV162019-12-31ifrs-full:RetainedEarningsMember213800PLNNPY2L2GUV162020-01-012020-12-31ifrs-full:RetainedEarningsMember213800PLNNPY2L2GUV162020-12-31ifrs-full:RetainedEarningsMember213800PLNNPY2L2GUV162019-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800PLNNPY2L2GUV162020-01-012020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800PLNNPY2L2GUV162020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800PLNNPY2L2GUV162019-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800PLNNPY2L2GUV162020-01-012020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800PLNNPY2L2GUV162020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800PLNNPY2L2GUV162019-12-31ifrs-full:NoncontrollingInterestsMember213800PLNNPY2L2GUV162020-01-012020-12-31ifrs-full:NoncontrollingInterestsMember213800PLNNPY2L2GUV162020-12-31ifrs-full:NoncontrollingInterestsMember213800PLNNPY2L2GUV162019-12-31213800PLNNPY2L2GUV162021-01-012021-12-31ifrs-full:IssuedCapitalMember213800PLNNPY2L2GUV162021-12-31ifrs-full:IssuedCapitalMember213800PLNNPY2L2GUV162021-01-012021-12-31ifrs-full:RetainedEarningsMember213800PLNNPY2L2GUV162021-12-31ifrs-full:RetainedEarningsMember213800PLNNPY2L2GUV162021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800PLNNPY2L2GUV162021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800PLNNPY2L2GUV162021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800PLNNPY2L2GUV162021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800PLNNPY2L2GUV162021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember213800PLNNPY2L2GUV162021-12-31ifrs-full:NoncontrollingInterestsMember213800PLNNPY2L2GUV162022-01-012022-12-31ifrs-full:IssuedCapitalMember213800PLNNPY2L2GUV162022-12-31ifrs-full:IssuedCapitalMember213800PLNNPY2L2GUV162022-01-012022-12-31ifrs-full:RetainedEarningsMember213800PLNNPY2L2GUV162022-12-31ifrs-full:RetainedEarningsMember213800PLNNPY2L2GUV162022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800PLNNPY2L2GUV162022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800PLNNPY2L2GUV162022-01-012022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800PLNNPY2L2GUV162022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800PLNNPY2L2GUV162022-01-012022-12-31ifrs-full:NoncontrollingInterestsMember213800PLNNPY2L2GUV162022-12-31ifrs-full:NoncontrollingInterestsMember213800PLNNPY2L2GUV162021-01-012021-12-31cmn:ConsolidatedMember213800PLNNPY2L2GUV162020-01-012020-12-31cmn:ConsolidatedMember213800PLNNPY2L2GUV162022-12-31cmn:ConsolidatedMember213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember2213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember2213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember1213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember3213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember4213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember5213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember6213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember1213800PLNNPY2L2GUV162022-01-012022-12-31cmn:ConsolidatedMember2iso4217:DKKiso4217:DKKxbrli:sharesxbrli:pure
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