ANNUAL REPORT 2021 slide image

ANNUAL REPORT 2021

LUNDBECK ANNUAL REPORT 2021 = CONTENTS CONSOLIDATED FINANCIAL STATEMENTS NOTES 8-10 8 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES 68/111 The maturity analysis of lease liabilities is provided in the table "Classification of and contractual maturity dates for financial assets and financial liabilities" in note 19 Financial instruments. Amounts recognized in profit or loss Expenses relating to short-term leases, not capitalized Depreciation of right-of-use assets, land and buildings Interest expenses relating to lease liabilities Total 2021 DKKm 2020 DKKm 2 2 9 INVENTORIES 83 85 7 8 92 95 Raw materials and consumables Work in progress 2021 2020 Land and buildings Cost at 1 January DKKm DKKm Finished goods and goods for resale Total 2021 2020 DKKm DKKm 207 206 1,534 1,155 1,034 802 2,775 2,163 596 545 Effect of foreign exchange differences 14 (20) Additions 45 34 Disposals during the year (11) (19) Adjustments to right-of-use assets during the year 61 56 Cost at 31 December 705 596 Inventories recognized as cost of sales amounted to DKK 2,337 million (DKK 2,618 million in 2020). Inventories of DKK 1,071 million at 31 December 2021 are expected to be recovered after more than 12 months (DKK 722 million in 2020). Depreciation and impairment losses at 1 January Effect of foreign exchange differences Depreciation Depreciation and impairment on disposals Depreciation and impairment losses at 31 December Carrying amount at 31 December Development in lease liabilities 2021 Lease liabilities Total lease liabilities 140 69 6 (6) 10 TRADE RECEIVABLES 83 85 (8) (8) 221 140 Trade receivables 484 456 Writedowns Trade receivables, net Balance at Non-cash 1 January Cash outflow flow DKKm DKKm DKKm Balance at 31 December DKKM Credit risks 493 (82) 128 493 (82) 128 539 539 2020 Lease liabilities 516 (83) 60 493 Total lease liabilities 516 (83) 60 493 The total cash outflow from recognized lease agreements amounted to DKK 89 million (DKK 91 million in 2020) and includes repayment of lease liabilities and interest. 2021 2020 DKKm DKKm 2,484 2,579 (25) (26) 2,459 2,553 Lundbeck's products are sold primarily to distributors of pharmaceuticals, pharmacies and hospitals. The payment conditions for the customers, including credit periods and any payment of interest in case of non- payment, vary, but are always based on industry practice in the relevant market. As a result of special trading conditions in specific markets, the credit period may be up to approximately 200 days and for one customer 360 days. The weighted average credit period is approximately 50 days.
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