ANNUAL REPORT 2021 slide image

ANNUAL REPORT 2021

LUNDBECK ANNUAL REPORT 2021 = CONTENTS CONSOLIDATED FINANCIAL STATEMENTS NOTES 12-13 72/111 12 EQUITY - CONTINUED Before tax DKKm Tax DKKm After tax DKKm 2020 Other comprehensive income recognized under foreign currency translation reserve in the statement of changes in equity Exchange rate gains/losses on investments in foreign subsidiaries Exchange rate gains/losses on additions to net investments in foreign subsidiaries (1,007) (1,007) (21) 3 Hedging of net investments in foreign subsidiaries 356 (79) (18) 277 Total (672) (76) (748) Other comprehensive income recognized under hedging reserve in the statement of changes in equity Deferred exchange gains/losses, hedging 313 (69) 244 13 RETIREMENT BENEFIT OBLIGATIONS AND SIMILAR OBLIGATIONS Defined contribution plans The major defined contribution plans cover employees in Australia, Canada, Denmark, Finland, South Korea, Sweden, the UK and the U.S. The cost of defined contribution plans, representing contributions to the plans, amounted to DKK 246 million in 2021 (DKK 234 million in 2020). Defined benefit plans The Group has defined benefit plans in a few countries. The most important plans comprise current and former employees in Germany and the UK. The defined benefit plan in Germany is unfunded and administered by Lundbeck Germany. The defined benefit plan in the UK is funded and constituted under a trust, whose assets are legally separated from the Group. Both plans entitle the employees to an annual pension on retirement based on the service and salary level until retirement. Deferred fair value of interest rate swaps (90) 20 (70) Exchange gains/losses, hedging (transferred to revenue) (5) 1 (4) Total 218 (48) Retirement benefit obligations and similar obligations 170 Present value of defined benefit plans Other comprehensive income recognized under retained earnings in the statement of changes in equity Fair value of plan assets Defined benefit plans at 31 December Actuarial gains/losses Total (1) (1) 1 Other obligations of a retirement benefit nature 1 Retirement benefit obligations and similar obligations at 31 December 2021 DKKm 2020 DKKm 539 530 (285) (275) 254 255 35 35 289 290 Recognized in other comprehensive income (455) (123) (578) Retirement benefit obligations and similar obligations break down as follows: Non-current obligations 288 288 Exchange rate gains/losses on investments in foreign subsidiaries, a gain of DKK 960 million (a loss of DKK 1,007 million in 2020), and exchange rate gains/losses on additions to net investments in foreign subsidiaries, a loss of DKK 157 million (DKK 21 million in 2020), are primarily driven by developments in USD/DKK and GBP/DKK exchange rates. Current obligations 1 2 Retirement benefit obligations and similar obligations at 31 December 289 290
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