Copenhagen, 28 February 2023
Annual report for the period
1 January 2022 - 31 December 2022
Company announcement 03-2023
ANNUAL REPORT
2022
Penneo A/S
Enghavevej 40, 4. sal,
1674 Copenhagen V, Denmark
Business reg. no. 35633766
Penneo Annual report 2022 2
Contents
Management’s Review 3
ARR performance highlights 3
Financial performance highlights 4
Our vision 5
Letter to our stakeholders 6
Penneo at a glance 10
How we measure our performance 12
Performance highlights 13
Outlook 21
Guidance methodology 22
Analyst coverage 23
ESG strategy 24
ESG highlights 25
ESG statement 27
Our business 28
Our growth drivers 29
Breaking into new markets 31
Green light for acceptance on the EU Trust List 33
Governance section 34
Governance 35
Executive bios and Board of Directors 36
Key risks 39
Company information 40
Financial review 41
CFO statement 42
Key gures 43
Financial commentary 45
Financial statements 47
Statement by management 48
Independent auditor’s report 49
Financial statements 53
Notes 58
ESG report 2022
In our ESG report, you can read more
about Penneo’s environmental, social, and
governance indicators.
https://penneo.com/wp-content/up
-
loads/2023/02/penneo-2022-esg-report.
pdf
Remuneration report 2022
In our remuneration report, we provide a
transparent overview of the remuneration
of our Executive Board and our Board of
Directors.
https://penneo.com/wp-content/up
-
loads/2023/03/penneo-2022-remunera-
tion-report.pdf
Penneo Annual report 2022 3
Management’s review
ARR performance highlights
Performance highlights
ARR increased by 6.0M DKK compared to
5.2M DKK in 2021-Q4
ARR increase from Newbiz amounted to
2.3M DKK compared to 2.7M DKK in 2021-Q4
ARR increase from uplift amounted to 4.4M
DKK compared to 2.7M DKK in 2021-Q4
ARR lost to churn amounted to 0.8M DKK
compared to 0.2M DKK in 2021-Q4
ARR from foreign markets increased by 0.9M
DKK compared to 1.2M DKK in 2021-Q4
ARR increased by 15.5M DKK compared to
18.5M DKK in 2021
ARR increase from Newbiz amounted to
8.5M DKK compared to 9.8M DKK in 2021
ARR increase from uplift amounted to 9.1M
DKK compared to 9.5M DKK in 2021
ARR lost to churn amounted to 2.2M DKK
compared to 0.9M DKK in 2021
ARR from foreign markets increased by 5.2M
DKK compared to 7.1M DKK in 2021
2022-Q4 development 2022 development
ARR amounted to 71.0M DKK at the end of
2022 compared to 55.5M DKK at the end of
2021 (28% YoY growth)
YoY ARR net retention rate amounted to
113%
YoY ARR uplift amounted to 16%
YoY ARR churn rate amounted to 4%
ARR from foreign markets amounted to 19.6M
DKK at the end of 2022 compared to 14.4M
DKK at the end of 2021 (36% YoY growth)
2023 ARR guidance
Penneo expects continued growth in ARR and guides ARR at the level of 87-95M DKK at the end of 2023
corresponding to an ARR growth rate of 23%-34%.
The outlook is based on currency exchange rates per end of 2022.
End of year 2022
Penneo Annual report 2022 4
*EBITDA does not include income and costs categorised as “Other income” and “Other operating expenses”
on page 53.
Financial performance highlights
EBITDA development
Cash development
*Adjusted for the cost that is associated with the listing on both the First North and the Copenhagen Main
Market (2.3M DKK in 2020 and 2.4M DKK in 2022)
M DKK 2019 2020 2021 2022
Revenue 27.6 35.5 54.3 72.1
Cost of sales (5.4) (7.0) (9.7) (12.5)
Gross prot 22.2 28.5 44.6 59.5
Other external expenses (4.6) (8.6) (14.4) (17.8)
Sta costs (16.8) (28.6) (44.2) (52.8)
EBITDA* 0.8 (8.7) (14.1) (11.1)
M DKK 2019 2020 2021 2022
Cash ow from operating activities (1.0) (8.7) (8.1) (10)
Cash ow from investing activities (4.7) (13.4) (15.5) (19.4)
Free Cash Flow (5.7) (22.2) (23.6) (29.4)
Adjusted* 2.3 2.4
Adjusted Free Cash Flow (5.7) (19.9) (23.6) (27.1)
Cash ow from nancing activities 9.7 45.8 17.1 57.2
Cash and cash equivalents EoY 8.2 31.8 25.4 53.2
Management’s review Performance highlights
2023 EBITDA guidance
Penneo expects an EBITDA at a level of
negative 10M DKK to negative 15M DKK.
Despite a volatile macroeconomic envi-
ronment, Penneo remains condent in its
current growth strategy. We will contin-
ue to invest in maturing and scaling our
organization, although we may choose to
adjust investments if market conditions
change. These investments span across
sales and marketing, product develop-
ment and other key areas.
5Penneo Annual report 2022
Our vision
Let’s make it easy and benecial for
companies to be compliant in a world
where being accountable for the way
you do business is a matter of course.
In 2022, Penneo continued its journey evolving from a digital signature platform company to a broader provider of advanced automation solutions. These solutions help
businesses operate in AML-regulated industries by optimizing document transactions and meeting compliance requirements in a more simple and ecient way.
Penneo Annual report 2022 6
Management’s review Letter to our stakeholders
Letter to our
stakeholders
In the past year, Penneo has made solid progress
scaling its business for growth, serving more customers
than ever before and expanding our geographical
footprint in Europe. Meanwhile, we have improved and
broadened the functionality of the solutions we oer
in digital signing, document workows and regulatory
compliance.
Despite this progress, 2022 has also been an
extraordinary year with various external factors
impacting the markets where we operate. For example
the Russian invasion of Ukraine, rising ination and
interest rates, unfavourable exchange rates, energy
crisis, supply chain disruption and the pressing need
to tackle climate change. All of these factors combined
to produce a dicult set of conditions that negatively
impacted our customers’ buying behaviour and also
led to somewhat longer sales cycles for some of our
larger deals.
Nevertheless, Penneo achieved an ARR of 71.0M DKK
in 2022 which is in line with the adjusted guidance of
70-75M DKK we provided in October 2022 (company
announcement no. 29-2022). This corresponds to a
YoY growth rate of 28%, which is lower than our initial
expectation of a 40%-49% yearly growth rate.
Furthermore, we do not believe the current economy
has changed the longer term growth potential of
Penneo. We remain a company with a solid subscription-
based business model with growing ARR from both
existing and new customers, low yearly ARR churn,
and a relatively high contribution margin. Moreover,
we continue to see strong underlying market trends
that translate into attractive possibilities in both our
existing markets and new foreign markets across the
two distinct solution areas we cover; digital signing and
document workows (Penneo Sign), and Know Your
Customer software (Penneo KYC) that helps companies
onboard new customers and take care of regulatory
compliance.
Across Europe, and especially in countries that are
late digital adopters, political focus on automation
and digitization remains strong due to the huge
potential it holds to unleash eciency improvements
saving both time and money. This focus is supported
by national political initiatives and also regulation at
the EU level. In addition, companies continued to face
more stringent regulatory demands within Anti Money
Laundering (AML) regulation in 2022, driving them to
be more accountable for the way they do business. This
triggered growing interest for regulatory tech solutions
including our Penneo KYC solution.
In May 2022, for example, Penneo announced (company
announcement no. 16-2022) that an existing strategic
cooperation with PwC Denmark was expanded to
include the company’s KYC software in a move aimed at
automating key parts of PwC’s compliance processes.
Moreover, constructive sales dialogue about similar
projects in other large audit and accounting companies
was initiated, although the current macroeconomic
climate has led to some delays and a more cautious
approach to start new projects.
More broadly speaking, 2022 was a year characterised
by several catalytic moments for Penneo. We entered
the year on a high since COVID-19 drove strong demand
for our Penneo Sign solution throughout 2021. This
demand dropped somewhat in late 2021, but was
outweighed by adding our Penneo KYC solution as a
new revenue stream. Therefore, we kicked o 2022
with lots of optimism and in March, while still listed on
the Nasdaq First North Growth Market, we issued new
7Penneo Annual report 2022
shares in a private placement directed at a group of
institutional investors that led to net proceeds of 59M
DKK. This capital raise was a historic milestone since it
boosted the overall cash position we can leverage to
accelerate and scale our organisation for growth.
After this, we migrated from Nasdaq First North
Growth Market to the Copenhagen Main Market in
April, marking another signicant milestone. This move
was a natural next step for us and also a clear indicator
that Penneo has now reached a new level of maturity in
the way we operate our business.
More importantly, as we moved further into 2022,
our focus has been to take advantage of our new cash
position and use it to accelerate and create an even
more professional organisation with the right structure
and mix of competences. Due to the economic climate,
we have taken a slightly more conservative approach,
but our strategic objective remains the same. We want
to achieve growth in our existing markets, primarily
Denmark and the Nordics, and simultaneously expand
into new markets in Europe. Consequently, in the second
half of 2022 we established a local team in Belgium and
intensied the evaluation of other markets in Europe.
As we continue to scale, hiring new talent while making
sure we can hold on to the employees we already have, is
a critical success factor. In 2022 this proved challenging
in part due to the general ‘war for talent’, but also
due to a reorganisation of our sales structure aimed
at serving existing and new customers better. This
transformation triggered some undesired employee
attrition, but was mitigated and we now have a new
organisational setup in place that we are ramping up
with additional sales sta. Furthermore, over the last
year we have also hired senior recruitment specialists
and made general improvements to our HR processes
Highlights 2022
Penneo submits application and
receives approvals for listing on Nasdaq
Copenhagen Main Market and deletion
from First North.
While listed on First North, Penneo carries
out an oering of new shares to a group of
institutional investors resulting in net pro-
ceeds of 59M DKK.
Penneo publishes a prospectus for the
admission to trading and listing on the
Copenhagen Main Market. April 1 marks
the last day of trading on First North.
March March April April April
The rst day of trading and ocial listing
on Nasdaq Copenhagen Main Market
using the company’s existing symbol,
“PENNEO”.
Steen Heegaard is elected as a new
member of the Penneo Board of Directors
joining Christian Sagild, Rikke Stampe Skov
and Morten Kenneth Elk.
Management’s review Letter to our stakeholders
8Penneo Annual report 2022
Management’s review Letter to the our stakeholders
that we believe will help us attract and retain talent as
we move forward.
Another noteworthy Penneo achievement is the
important work that we did to upgrade our Penneo
Sign technology platform to offer the highest level of
electronic signature in the eIDAS regulation: Qualified
Electronic Signatures (QES). In early 2023, this led to
the official acceptance of Penneo on the EU Trust List,
a public list of providers that are officially accredited
to deliver the highest levels of compliance with the EU
signature regulation.
This approval is important because we believe it
will serve both as a door opener and competitive
differentiator in our ongoing effort to penetrate the
audit and accounting vertical and related AML regulated
industries in EU countries outside Scandinavia. As
such, we believe it will contribute to our future growth
across Europe and we look forward to taking advantage
of this.
Also related to our Penneo Sign product, we announced
in November (company announcement no. 30-2022)
that Penneo has expanded an existing strategic
agreement with Bankdata, a major Danish financial IT
provider, extending the usage of Penneo Sign to the
private customers of Bankdata’s member institutions
that include eight major banks in Denmark with more
than 1.6 million private customers. Again, this solidified
the market position that our Sign solution has achieved
within the financial industries while also underlining
that the investments we have made in improving the
functionality of this solution, are paying off.
As we enter 2023, we believe Penneo is well equipped
to continue its growth journey. During the last year
we have matured significantly and the challenges and
uncertainties we faced is something our employees have
handled with an admirable spirit and determination. It
is thanks to their hard work, planning and care for each
other that we can look back on a year in which Penneo
delivered such strong results and kept the trust of our
customers.
We speak on behalf of the entire Penneo Board of
Directors and leadership team when we say that this
makes us extremely proud and grateful. So, thank you
to all Penneos, customers, shareholders and partners
for the progress we made together in 2022. We look
forward to taking the next steps on our journey in 2023.
Highlights 2022
Penneos expands an existing cooperation
with PwC Denmark to include the company’s
electronic KYC solution that automates
parts of its compliance process.
Penneo expands an existing agreement
with Bankdata extending the usage of Sign
to the 1.6M private customers that are
served by Bankdata’s member institutions.
Penneo hires Hans J. Skovgaard as Chief
Technology and Product Ocer.
Christian Sagild
Chairman of the Board of Directors
Christian Stendevad
Chief Executive Ocer
Penneo announces that it is working on
upgrading Sign to oer the highest level of
electronic signatures in the eIDAS regulation,
and get listed on the EU Trust List.
Penneo hires a new head of sales for the
Belgian market to build a local team and
secure growth in this market.
May June August November December
9Penneo Annual report 2022
Penneo Annual report 2022 10
$
Penneo is currently pursuing a two-fold growth strategy aimed at creating
more growth in our existing markets, while simultaneously expanding to
new geographical markets across Europe.
This eort is supported by three primary investment streams:
In existing markets, our focus is
to target the broader auditing
and accounting industry as well as
other AML regulated industries.
We also want to take advantage
of the network eect to other
industries.
Step Step
Penneo is a Danish Software-as-a-Service (SaaS)
company and a market leader in software for
the audit and accounting industry in the Nordic
countries.
Management’s review Penneo at a glance
Our strategy Our equity story
Upsell Penneo KYC
product to auditor
and accounting
customers
Penetrate AML
regulated industries
with Penneo’s KYC
and Sign products
Expand through the
audit and accounting
vertical to become
the preferred solution
for auditors in Europe
Outside of the Nordics, our
approach is initially to attract
auditing and accounting companies
by capitalizing on the product-
m a r k e t t a n d s t r o n g r e l a t i o n s h i p w e
have with auditing and accounting
customers in Scandinavia.
1 2
The combination of a strong subscription-based model with growing ARR
from both existing and new customers, low yearly churn, high contribution
margin, and attractive possibilities in both existing and new markets gives
us a strong foundation for growth. Particularly since our business model is
scalable and we operate in high growth markets driven by both digitalization,
increased regulatory demands and sustainability.
We provide a scalable platform
that provides automation features
across multiple aspects of digital
transactions and workows related
to client onboarding, digital signing,
and document management in a
compliant, ecient and easy way.
Growing digitisation in Europe and the
network eects provided by the large
audit and accounting customers are
powerful enablers and distribution
channels for Penneo to become the
preferred solution for the audit and
accounting industry in Europe.
Penneo Annual report 2022 11
Our marketsOur history
Denmark
Norway
Sweden
Belgium
Penneo was founded in 2014 by by a group of Danish entrepreneurs with
a shared ambition of reducing the “hassle to get documents signed” by re-
placing pen and paper with a digital alternative.
Penneo has a strong presence in Denmark, Norway and Sweden and has
entered Belgium. These four countries have our main commercial focus. In
addition, we have customers in Finland, Germany and other countries.
The Nordic markets are some of the most digitalized in Europe and have by
far the highest adoption of eIDs. Despite a strong foothold among auditors,
Penneo still has a considerable potential to penetrate the Nordic markets
further with Penneo Sign and Penneo KYC by focusing on other AML-
regulated industries such as nance, lawyers, property admin, real estate,
etc. with a need for both our Sign and KYC solution.
In line with the broader digitalization of Europe, including the adoption of
national eIDs, Penneo is also well positioned to gain market share outside
the Nordics. Currently, Penneo is considering entering markets such as the
Netherlands, France, Germany and Austria, and others as well.
Today, Penneo has evolved into much more
than just a digital signature tool. With our two
solutions, we ensure secure and convenient
digital interactions with digital signing featuring
automated signing ows and identity verication,
as well as automated client onboarding/KYC
processes with risk assessment, record keeping,
and continuous data monitoring in compliance
with GDPR and AML regulation.
customers
2,500+
Early on, auditors became a strategic focus for
Penneo, and the company has evolved together
with the increasing complexity of workows and
requirements related to this industry. However,
as companies in many other industries carry out
similar workows and are subject to the same
regulation, Penneo is now helping more than
2,500 customers across many industries with
automating recurring administrative tasks. We
are headquartered in Copenhagen and currently
employ 111 people.
Management’s review Penneo at a glance
Penneo Annual report 2022 12
Management’s review Performance highlights
How we measure
our performance
SaaS terms explained
Penneo uses a range of SaaS metrics to evaluate its
performance. E.g. Annual Recurring Revenue (ARR), ARR
churn, Net Retention Rate (NRR), Customer Acquisition
Cost (CAC) and Customer Life-Time Value (CLTV).
These metrics provide a picture of our potential ability
to generate revenue and cash ow in the future and
how eective we are in terms of gaining and keeping
customers. Some of the metrics we use to evaluate our
performance are described here.
Annual Recurring Revenue (ARR)
Used to measure the recurring revenue from customers. ARR can
be measured in two ways: Live ARR and Contract ARR. Live ARR is the
recurring revenue currently being received, whereas Contract ARR also
includes the recurring revenue that a company has contracted to receive
from its customers, but not necessarily started receiving yet.
In Penneo, we calculate ARR as Live ARR since we prefer to present the
current status of our business. From 2019 and onwards, all new customers
in Penneo were onboarded to a fully subscription-based model. By the
end of 2022, 80% of the revenue was subscription-based compared to
75% at the end of 2021.
ARR churn
Refers to the decrease in ARR in a given time period due to the expiration of
a customer relationship. A low ARR churn rate indicates that a company’s
products have a strong market t and the price/value relationship is in
balance. In Penneo, we consider a churn rate below 5% as healthy.
Continuous high ARR growth rates
Development in ARR comes from three sources: (i) main-
taining low churn, (ii) securing upsell and cross sales to
existing customers, and (iii) attracting new customers
on existing and new markets. Penneo has signicant-
ly increased ARR each year since it was founded. From
2020 to 2021, Penneo increased ARR by 50% from 37M
DKK to 55M DKK, and in 2022, Penneo realized an ARR
of 71M DKK corresponding to a growth of 28%.
Low ARR churn rate
By providing a strong product t to our customers,
Penneo has maintained a low ARR churn rate of 2% and
4% for 2021 and 2022 respectively. Churned customers
primarily fall outside our strategic focus areas,
emphasizing the ‘stickiness’ of our software.
Signicant ARR uplift from existing customers
In absolute terms, Penneo increased uplift from
existing customers from DKK 6.3M in 2020 to 9.5M DKK
in 2021 and realized an uplift of 9.1M DKK in 2022. In
2022, the uplift was driven by two factors; (i) existing
customers increasing their usage of Penneo Sign and
upgrading their subscription, and (ii) existing Penneo
Sign customers subscribing to Penneo KYC.
New customers onboarded
Over the years, Penneo has been able to expand its
customer base signicantly. In 2021 for example, we
onboarded 530 new customers and in 2022, a total of
404 new customers were added.
ARR uplift
Used to measure growth from customers who became customers in a
previous period. In Penneo, ARR uplift comes from upgrading existing
subscriptions, e.g. a larger commitment from Penneo Sign customers or
upselling Penneo KYC to Sign customers.
Customer Acquisition Cost (CAC)
How much a company spends to acquire one new customer in a given
period. Overall, there are two types of CAC; Fully loaded CAC and Direct
CAC. Fully Loaded CAC includes all the costs associated with acquiring a
new customer, whereas Direct CAC includes only the direct costs.
In Penneo, we include compensation costs to reps in sales and marketing
who are directly involved in the sales process and also direct advertising
expenses. In other words, we use Direct CAC, since we believe it is the best
metric in a scaling phase where measuring the incremental investment in
one new customer makes sense. In the future, where overall protability
has a higher priority than growth, it makes sense to use Fully loaded CAC.
It’s important to note that CAC is a metric that should be tracked over
time, as the number of new customers can vary due to seasonality, selling
cycle and coincidental factors.
Average Revenue Per Account (ARPA)
A metric used to measure the average yearly revenue generated from
each individual customer. Commonly used to measure the ability to
create uplift from customers.
Customer Life-Time Value (CLTV)
Highlights the long-term value of a customer relationship making it pos
-
sible to make informed decisions about pricing, customer acquisition, and
retention. Development in CLTV should be viewed alongside CAC to eva-
luate the protability in a scaling phase where cash ow often is negative.
Net Retention Rate (NRR)
Measures the retention of ARR from existing customers in a given time
period. NRR is calculated by subtracting ARR churn from ARR uplift. A
high NRR indicates that it might be protable in the long term to invest in
acquiring more customers in the short term even if CAC increases.
Penneo Annual report 2022 13
1
1 1
1
2 2 2
2
4
4
4
5
6
8
8
4
6
9
10
5
5
6
7
7
8
8
10
14
9
3
4
5
6
7
8
3
4
4
6
6
6
1
2
3
3
7
10
18
25
37
55
71
2015 2016 2017 2018 2019 2020 2021 2022
2014
2015
2022
2021
2020
2019
2018
2017
2016
Annual Recurring Revenue Development
Yearly cohorts (M DKK)
This chart shows net ARR
growth development
from customer cohorts in
M DKK. Customer cohorts
refer to groups of new
customers that Penneo
has acquired in a 12
month nancial period.
Management’s review
ARR growth from
nancial year
cohorts
Performance highlights
New customers that Penneo acquires in one specic
nancial period (customer cohorts) evolve and gradually
contribute with additional ARR in subsequent years.
This is important since the cost of acquiring a new
customer on average initially outweighs the upfront
income generated by this customer.
An analysis of all nancial years since Penneo was
established in 2014 shows a yearly average growth of
18% in net ARR from any given customer cohort during
the rst ve years.
Moreover, when viewed individually, cohorts are
developing with a positive year-on-year growth.
From 2019 and onwards, new customers have been
onboarded to a fully subscription-based model. By
the end of 2022, 80% of the revenue was subscription-
based compared to 75% at the end of 2021.
Penneo Annual report 2022 14
60
70
The annual development represents the development from 2021 to 2022 and is measured on the last day of
both periods.
EoY 2021 Churn
Penneo Sign
Churn
Penneo KYC
Uplift
Penneo
Sign
Uplift
Penneo
KYC
Existing
customers
New Penneo
Sign
New Penneo
KYC
EoY 2022
-2.1
-0.1
62.5
55.5
40
50
6.7
1.9
71.0
4% ARR churn on
lost customers
2.8
6.3
Sign
52,1
15% ARR new
customers
Sign
63.0
Sign
56.4
Annual Recurring Revenue Development
In the period (M DKK)
KYC
8.0
KYC
6.1
KYC
3.4
16% ARR uplift on
existing customer
In Q4 2022, Penneo realized its second largest quarterly
result increasing ARR with 6M DKK to 71M DKK. This
performance was driven by strong ARR uplift from
existing customers, especially due to an expansion of
our agreement with Bankdata. In addition, Penneo also
secured 125 new customers in Q4, making it the quarter
of 2022 with the highest number of new customers
onboarded.
Looking at 2022 as a whole, however, reveals a more
mixed picture. Penneo reached an ARR of 71M DKK
which corresponds to a YoY growth rate of 28%. This
result is in line with our latest ARR guidance of 70-75M
DKK, but lower than our previous expectation of a 40%-
49% yearly growth rate.
In Q4, the buying behavior observed in Q3 continued,
negatively impacting selling cycles by delaying larger
Penneo KYC deals or resulting in smaller initial business
commitments. Similarly, the average deal size for new
customers in Q4 continued to be lower than in H1, even
though it was higher when compared to Q3.
Overview of ARR
development
Management’s review Performance highlights
Penneo Annual report 2022 15
Reported numbers 2021-Q1 2021-Q2 2021-Q3 2021-Q4 2022-Q1 2022-Q2 2022-Q3 2022-Q4
ARR newbiz 2.5 3.2 1.4 2.7 1.9 2.9 1.1 2.3
ARR uplift 1.4 3.6 1.8 2.7 1.6 2.4 1.0 4.4
ARR churn 0.0 (0.1) (0.6) (0.2) (0.4) (0.3) (0.7) (0.8)
Total ARR growth 3.9 6.7 2.6 5.2 3.1 5.0 1.5 6.0
ARR EoQ 40.9 47.6 50.2 55.5 58.5 63.5 65.0 71.0
ARR churn
In 2022, Penneo maintained a low churn of 4%, higher
than the 2% achieved in 2021. The churn in 2022,
however, is still below the 5% that we consider as
satisfactory. The Average Revenue Per Account (ARPA)
for our churned customers remained in the lower end
signaling that churned customers on average were
made up of smaller customers in 2022.
ARR uplift
Penneo achieved an uplift from existing customers
adding 9.1M DKK to our ARR which corresponds to 16%
of our total ARR at the beginning of the year. Penneo
Management’s review Performance highlights
New business from Penneo Sign, however, decreased
from 8.7M DKK in 2021 to 6.7M DKK in 2022, primarily
because customers on average committed to a smaller
initial business volume, which is a trend we have also
observed for new KYC customers.
In 2022, new business growth was positively impacted
by growth in foreign markets, particularly the Belgian
market that achieved its best Q4 so far in terms of new
customers, average deal size, and ARR contribution. The
Belgium market now accounts for 15% of foreign ARR
contribution up from 6% in 2021.
KYC contributed 31% to our total uplift in 2022 growing
from a contribution of 2.3M DKK in 2021 to 2.8M DKK
in 2022 indicating growing interest among our existing
customers. Uplift from Penneo Sign, however, decreased
from 7.2M DKK in 2021 to 6.3M DKK in 2022 due to lower
growth in the level of engagement with our platform
among existing customers.
ARR newbiz
In 2022, Penneo realized an ARR new business growth
of 15% compared to 26% in 2021. KYC accounted
for a larger share of new business contributing with
1.9M DKK in 2022 compared to 1.1M DKK in 2021.
Penneo Annual report 2022 16
In 2022, the average ARR for new customers was 20.5T
DKK compared to 18.5T DKK in 2021 corresponding to
an increase of 11%.
In 2022-Q4, average ARR for new customers was 19T
DKK up from 15T DKK in 2022-Q3. This increase was in
part created by the Belgian market, where our sales
team made solid progress in Q4 securing 28 new
customers with 28T DKK in average ARR, primarily in
our tier 1 customer target segment that generally has
a higher ARPA. Despite this positive development,
SaaS metrics
Management’s review Performance highlights
average ARR for new customers in Q4 remained at a
lower level compared with 2022-H1.
On average, Customer Acquisition Cost (CAC) was 32T
DKK in 2022. Consequently, it takes approximately 19
months to recover the CAC.
In 2022-Q4, the net ARR retention rate amounted to
113%* as a result of an ARR uplift of 16% and ARR churn
of 4%, which indicates steady growth, as also supported
by the continued increase in ARPA.
* The net ARR retention rate is calculated using these gures:
(62.5/55.5*100=112.61)
2021-Q1 2021-Q2 2021-Q3 2021-Q4 2022-Q1 2022-Q2 2022-Q3 2022-Q4
New customers 149 171 87 123 98 103 78 125
Average ARR in the rst year for new customers 17,027 18,845 16,366 21,939 19,432 28,131 14,686 18,619
Customer Acqusition Costs (CAC) (22,511) (21,523) (35,640) (32,229) (29,871) (31,952) (35,833) (32,633)
Net ARR retention (NRR) 123% 130% 124% 124% 120% 114% 112% 113%
Average Revenue per account (ARPA) 19,988 21,444 21,960 23,137 23,751 25,092 25,288 26,608
Penneo Annual report 2022 17
Management’s review
Projected ARR
contribution
Year 1 Year 2 Year 3 Year 4 Year 5
20
24
29
34
40
CAC (Last 12 months)
Expected ARR for new customers (Last 12 months)
Average ARR development (T DKK)
A ve year cohort analysis based on new customers
32
CAGR 18%
Performance highlights
A cohort analysis based on all nancial years since the
establishment of Penneo in 2014, shows a yearly growth
of 18% in net ARR over the rst ve years for a given
cohort (including both churn of customers and ARPA
development of retained customers). Consequently,
the ARR could grow from 20T DKK in year one to 40T
DKK in year ve.
In a SaaS business model, it is important to understand
the relationship between the cost of acquiring the next
new customer with the projected Customer Life-Time
Value (CLTV) of the customer.
To calculate this relationship, there are various
elements that Penneo considers. Among others
Customer Acquisition Cost (CAC), Average ARR Per
New Customer (ARPA), contribution margin, yearly ARR
uplift and expected customer lifespan based on churn
rate. While these elements are provided in this report,
we have chosen not to provide this calculation since
our low churn in principle provides a customer lifespan
of 25 years and we have only been active in the market
for eight years.
Penneo Annual report 2022 18
2021-Q12020-Q4 2021-Q2 2021-Q3 2021-Q4 2022-Q1 2022-Q2 2022-Q3 2022-Q4
32
30
35
37
41
42
45
46
51
13
14
16
18
19
20
Foreign markets
Foreign markets break-down
(2022-Q4)
Domestic market
Norway 58.7%
Belgium 14.8%
Other 2.6%
Sweden 24.0%
9
12
7
Management’s review
Domestic and foreign
ARR base split
Performance highlights
Penneo’s growth strategy is based on entering new
markets while simultaneously increasing its market
share in existing markets. This chart shows the growth
of Penneo’s ARR base split into the domestic market
(Denmark) and foreign markets including Norway,
Sweden, Belgium and others.
In 2022, ARR from the Danish market grew by 24% year-
on-year driven by a continued eort to strengthen the
company’s market position further as well as growing
demand for Penneo KYC. Meanwhile, ARR from foreign
markets increased by 43% year-on-year, due to Penneo’s
expansion strategy including in particular success in
the Belgium market.
Looking into ARR from foreign markets in 2022, Norway
was the largest market (59%) followed by Sweden (24%).
Belgium currently accounts for 15%, an increase from
6% in 2021.
Penneo Annual report 2022 19
2020 2021 2022
ARR growth /
Negative free cash ow
12.0
(19.9)
18.6
(23.6)
15.5
(27.1)
-1.7 -1.3 -1.7
ARR growth, positive
Free cash ow, negative*
*Adjusted for the cost that is
associated with the listing on
both the First North Growth
Market and the Copenhagen
Main Market (2.3M DKK in 2020
and 2.4M DKK in 2022)
ARR growth compared to
negative free cash ow
In 2022, Penneo realized an ARR growth
of 15.5M DKK and a free cash ow of
negative 27.1M DKK adjusted for the cost
that is associated with being listed on the
Copenhagen Main Market (2.4M DKK in
2022-Q2).
This is equivalent to a cash to acquired ARR
ratio of 1.7 which we consider satisfactory
considering that one acquired DKK of ARR
on average results in a revenue of more
than seven DKK in the rst ve years.
Moreover, our current level of cash to ARR
growth ratio also reects that we are in the
early phase of our investment plan, having
recruited relatively many new employees
in 2022.
Looking ahead, we will carry out
investments with caution to ensure a
balance between negative free cash ow
and the growth rate.
Management’s review Performance highlights
Penneo Annual report 2022 20
2019-Q3
2020-Q4
2019-Q4
2021-Q1
2022-Q1
2020-Q1
2021-Q3
2022-Q2
2020-Q2
2021-Q2
2022-Q3
2020-Q3
2021-Q4
2022-Q4
35
42
48
52
58
82
82
84
82
78
83
91
97
107
35
42
48
52
58
83
83
85
83
83
87
95
101
111
Contractors
Employee
1
1
1
1
5
4
4
4
4
Management’s review
Employee
development
Performance highlights
Penneo is investing in sales and marketing, product de-
velopment and business operations to lay the founda-
tion for continued growth. Most of these investments
are being made in the recruitment of new employees.
Penneo has raised growth capital on two occasions; in
Q2-2020 as part of our listing on Nasdaq First North
Growth Market and most recently in Q1-2022 when we
issued new shares in a private placement that led to
net proceeds of 59M DKK. Penneo’s sta growth over
the last two years reects this. In 2020, for example, we
increased the number of employees by 71% from 48 in
Q1 to 83 in Q2. Following this, 2021 remained relatively
at with an average number of 84 employees. In 2022,
however, the number of employees grew by 28% from
87 in Q1 to 111 in Q4.
Penneo’s workforce is diverse with +20 nationalities and
a gender representation of 33% women and 67% men.
We regularly measure employee engagement using an
eNPS survey tool. In 2022, engagement increased from
8.0 to 8.4 on a scale from 0-10.
In 2022, employee retention proved challenging in part
due to the general ‘war for talent’, but also due to the
transition of our organization. This triggered some un-
desired employee churn, but has to a large extent been
mitigated in 2022–H2.
Outlook 2023Management’s review
Penneo Annual report 2022 21
Outlook 2023
ARR guidance
Penneo expects continued growth in ARR
and guides ARR at the level of 87-95M
DKK at the end of 2023 corresponding to
an ARR growth rate of 23%-34%.
EBITDA guidance
Penneo expects an EBITDA at a level of
negative 10M DKK to negative 15M DKK.
The outlook is based on currency
exchange rates per end of 2022.
Penneos guidance for 2023 is based on a number of key
assumptions that are outlined below.
Continued conservative buying patterns
In 2023, we expect a continuation of the unfavorable
macroeconomic market conditions that we observed
during 2022, particularly in H2. Consequently, we also
expect a continuation of the more conservative buying
patterns that we have experienced among our existing
and new customers. Compared to historical performance,
this includes for example lower average deal sizes due to
smaller initial sales commitments and longer sales cycles
for some types of larger deals (Penneo KYC in particular).
Low churn and continued uplift
In 2023, we expect a slightly higher customer churn rate,
yet still below the 5% benchmark that we have set as
our general company goal as a result of the historical
performance. We also expect a continued uplift from
existing customers based on increased engagement
with Penneo Sign and revenue from the cross-selling of
Penneo KYC. Moreover, we expect a net positive eect
on ARR uplift from an annual adjustment of our pricing
reecting the general increase in ination rate. This has
been introduced in 2022 and steps into eect from 1
January 2023.
Forward-looking statements
Statements about the future expressed in the annual
report reect Penneo’s current expectations for future
events and nancial results. The nature of these
statements are aected by risk and uncertainties.
Therefore, the company’s actual results may dier from
the expectations expressed in the management report.
Unchanged strategic priorities
Despite uncertain market conditions, Penneo remains
condent in its current growth strategy. We will continue
to invest in maturing and scaling up our organization,
although we may choose to adjust investments if market
conditions deteriorate. These investments span across
sales and marketing, product development and other
key areas that play a critical role in supporting the
continued geographic expansion of Penneo Sign and roll
out of Penneo KYC.
In 2023, our intention is also to enter at least one new
market in Europe (in addition to our existing markets in
Scandinavia and Belgium). However, since it requires time
to gain traction and adapt our solutions to local rules and
legislation, we have assumed only a relatively small share
of new revenue from new markets in our 2023 guidance.
Increased demand generation capabilities
Over the last year, particularly in 2022-H2, Penneo has
carried out organizational changes aimed at increasing
our demand generation capabilities and sales reach. Our
primary way of creating demand, acquiring leads and
converting them to customers remains digital inbound
marketing and sales.
However, in 2022, we strengthened our outbound sales
with reps who are solely focused on sales prospecting.
Therefore, we expect a larger share of new customers
from this sales channel and also a larger number of new
customers in 2023 compared to 2022. This will contribute
positively to ARR growth despite lower average deal size
per new customer due to the current market conditions.
Guidance methodologyManagement’s review
Penneo Annual report 2022 22
Guidance
methodology
ARR guidance
The initial projected Annual Recurring Revenue (ARR)
is based on historical performance gures, however,
adjusted with a higher weighting for the last six months
to reect more recent changes in our macroeconomic
environment as well as seasonality and concrete plans
outlining how we plan to scale our organization further
in 2023.
This initial ARR projection is then reviewed and discussed
with the commercial teams and Executive Management,
who review it based on their knowledge of our current
pipeline as well as their specic qualitative knowledge
of the current conditions across Penneo’s dierent
markets. Based on this analysis, we adjust the initial ARR
projection to increase the precision of the forecast of
expected ARR.
Lastly, the adjusted forecast and the underlying drivers
are presented to the Board of Directors for nal approval.
EBITDA guidance
Penneo’s expected EBITDA is closely correlated to the
expectations for ARR since the company is committed
to scale up its organization and hire the sta it needs to
realize its full growth potential. This includes maintaining
a negative EBITDA because Penneo based on historical
data believes that the cost of investing in acquiring new
customers will consistently be outweighed by prot from
the subscription revenue from these customers over the
following years. Growth investments, however, are done
within the cash ow limits of the company, and its long-
term business strategy and associated investment plan.
In Penneo, development in our realized ARR is closely
monitored on a monthly basis and the hiring plan is
adjusted accordingly to reect a matching level. This
means EBITDA will likely not be directly impacted
following a change in expected ARR. If the expected ARR
is lower than expected, for example, fewer hirings will
be executed, and conversely, if ARR increases, additional
hirings will be made.
Since Penneo adjusts its costs according to the expected
cash ow, the expected EBITDA is subject to change
in accordance with changes in the relation between
expected ARR, cash ow, and costs.
Analyst coverageManagement’s review
Penneo Annual report 2022 23
Sponsored coverageIndependent coverage
Analyst coverage
Frederikke Due Olsen
frederikke.due.olsen@carnegie.dk
+45 32 88 03 26
Jesper Billeskov
jesper.billeskov@abgsc.dk
+45 35 46 30 17
Kasper Lihn
kasper@hcandersencapital.dk
+45 28 73 93 22
Rasmus Overgaard
rasmus.overgaard@abgsc.dk
+45 35 46 30 14
Casper Christiansen
Chief Financial Ocer
Mobile +45 26 47 63 73
Mail cc@penneo.com
Christian Stendevad
Chief Executive Ocer
Mobile +45 27 29 50 02
Mail cst@penneo.com
Mads Gyldenkærne
Investor Relations
Mobile +45 52 27 10 27
Mail mcg@penneo.com
Penneo IR contacts
Penneo A/S is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding
Penneo’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or
predictions of Penneo A/S or its management. Penneo A/S does not by its reference above or distribution imply its
endorsement of or concurrence with such information, conclusions or recommendations.
Jacob Svensson
jacob.svensson@redeye.se
+46 733 004 288
24Penneo Annual report 2022
ESG strategy
In 2022, Penneo has created a baseline for
future ESG progress and target setting
For every new employee that Penneo hires, the company plants a tree working together with the Danish company
Klimatræ (Climate Tree). The collaboration with Klimatræ began in 2022 and initially 100 trees were planted.
ESGManagement’s review
Penneo Annual report 2022 25
62 million sheets of paper
1,016 tons of wood
25 million liters of water
280 tons of paper
2,300 tons of CO
2
165,561 kilos of solid waste
Penneo has estimated the environmental impact from
the digital workows that Penneo Sign creates using
the Paper Calculator from the Environmental Paper
Network’s Paper Calculator Version 4.0:
https://c.environmentalpaper.org/
Estimates are based on the total number of documents
completed via Penneo’s Sign solution in 2022. The
model assumes that each recipient would print their
document(s) once and that there is an average of 10 A4
sheets of paper per document completed.
The reduced paper estimate builds on the assumption
of a recycled content percentage of 10%. This is
slightly higher than the 8% estimate that is part of
the Environmental Paper Network’s 2018 State of the
Global Paper Industry Report, which leads to a more
conservative estimate.
Penneo is aware that its business activities also negatively
impact the environment, for example by CO2 emissions
from the data centers we use, energy consumption at
our oces or employee travel.
We will continue to prioritize reducing these impacts in
parallel with our eort to promote digital processes over
paper-based alternatives.
ESG highlights
In 2022, Penneo’s digital sign has helped save approximately…
ESGManagement’s review
Penneo Annual report 2022 26
ESG highlights
Environment Social Governance
2023 goal < 0.2
2023 goal < 0.8
2023 goal < 3.5
2023 goal 30%/70%
0.2
8.4
25%
100%
+33%0.8
3.2 29%
2022 indirect CO2 emissions (scope 2)
measured in tons per FTE
2022 employee engagement score
2022: 25% female/75% male BoD gender
diversity
Attendance at BoD meetings
2022: 33% female/67% male employee
gender diversity
2022 energy consumption in GJ per FTE
2022 water consumption in M3 per FTE
2022: 29% female/71% male diversity for
managers, senior management and C-level
2023 goal 8.6
2023 goal 35%/65%
2023 goal 25%/75%
2023 goal > 95
ESG
Penneo Annual report 2022 27
Management’s review
*Due to the nature of Penneo’s business, we do not have any direct CO
2
emissions.
ESG statement
Environment Total 2022 Unit Target 2023 2022 2021
CO
2
e, scope 1 (direct emissions) 0* Tons per FTE < 0.1 0.0 0.0
CO
2
e, scope 2 (indirect emissions) 12.94 Tons per FTE < 0.2 0.2 0.1
Energy consumption 67.56 GJ per FTE < 0.8 0.8 0.6
Renewable energy share N/A % > 10 19 19
Water consumption 267.50 M3 per FTE < 3.5 3.2 2.4
Documents sent through Penneo 4,286,616 No. of signed documents > 5,000,000 4,286,616 3,367,285
Social Unit Target 2023 2022 2021
Average full-time employees incl.
contractors
FTE 85 78
Gender diversity f/m % 35/65 33/67 32/68
Gender diversity for managers, senior
management and C-level
f/m % 30/70 29/71 13/87
Sickness absence % < 3 1.3 1.3
Employee satisfaction Engagement 8.6 8.4 8.0
Customer satisfaction (measured as churn) % < 5 4 2
Governance Unit Target 2023 2022 2021
Gender diversity - Board of Directors (BoD) f/m 25/75 25/75 33/66
Attendance at the BoD meetings % > 95 100 97
28Penneo Annual report 2022
Our business
Our growth drivers
Penneo Annual report 2022 29
Our business
Our growth drivers
Increased focus on digitalization across Europe, stricter
regulatory demands, especially in industries that are
regulated by anti money laundering (AML) regulation,
and a growing focus on mitigating climate change
are some of the main underlying growth drivers that
pushed Penneo’s business forward in 2022.
The two key markets in which Penneo operates today –
the digital signature and the KYC market – are both part
of three broader markets; the digital identity market,
the digital transaction management market, and the
business process automation market. These markets
are all characterized by high annual growth rates and
tap into several global trends that have been key for the
development of Penneo in the past and remain highly
important to the company’s continued growth.
Looking more closely at these trends, the single
most important one is increased digitalization and
automation across the public and private sectors aimed
at enhancing work eciency and saving cost. In Europe
and around the world, industries are still undergoing
comprehensive digital transformation because it
provides an essential way forward to gain competitive
edge, improve operational eciency and reduce costs.
Across Europe and particularly in 2021, the COVID-19
crisis accelerated digital transformation of the economy
simply because digitalization and bringing services
online in many cases became integral to mitigate the
crisis. In this way, companies used digitalization to
mitigate the eects of the disruption caused by the
pandemic including closing down oces and asking
employees to work from home. As digitalization
increased, however, so did identity and nancial fraud,
which increased the need for safer digital methods and
tools such as secured digital identication and the KYC
solution that Penneo oers.
Large potential in Europe
Despite the rapid advancement of digitalization in
Europe, the continent has still not closed the gap with
the United States. According to data for 2021-2022 from
the European Investment Bank, for example, the share
of companies using advanced digital tech is slightly
higher in the United States (66%) than in the European
Union (61%). Furthermore, digital adoption across
Europe remains very heterogeneous with a very high
Our growth driversOur business
Penneo Annual report 2022 30
uptake of advanced technologies in some countries
and others lagging signicantly behind. According to
the Digital Economy and Society Index (DESI) published
annually by the EU Commission, particularly countries
in the Nordics, including Denmark, Sweden, Norway,
Finland along with Netherlands for example are ahead
in terms of having ‘advanced digital economies’ whereas
other countries, e.g. Germany, Spain, Italy are behind.
Overall, this means Europe has a large market potential.
For example in digital signatures where Europe is
currently the second largest region in terms of market
size and is expected to see the highest growth in the
coming years.
In the auditing and accounting industry vertical which
is of key strategic importance to Penneo, investment
in digitalization is also picking up speed. According to
research carried out by McKinsey, this industry has a
particularly high technical potential for automation
since 86% of all current tasks and workows can
be digitalized. Not surprisingly, leveraging this
potential to deliver new services, drive sta eciency
and protability is a highly important focus area,
particularly in the larger accounting companies, but
increasingly also in smaller companies.
EU legislation is paving the way
Political ambition for increased cybersecurity in the
EU is another underlying dynamic that is driving
growth for Penneo. Upcoming regulations such as the
Digital Operational Resilience Act (DORA) and the NIS2
directive, for example, are both legislative initiatives
that will increase cybersecurity requirements for
companies in the EU. Along with GDPR and other
regulations as well, this is raising the bar in terms of
what it requires to stay compliant.
AML compliance requirements are also becoming
increasingly stringent as authorities tighten the reins of
control to detect money laundering. The UN currently
estimates that the cost of global money laundering
annually is between $800 billion – $2 trillion which
makes up 2-5% of global GDP. Unfortunately, only 1% of
the money laundered can be detected and acted upon.
Regulatory bodies are therefore responding with more
Three reasons why AML nes are rising
1. In June 2022, the EU announced that a new AML Authority (AMLA) body
will be established to ght money laundering. This means that a range of
industries that are subject to this regulation in the EU can expect more
frequent and detailed AML investigations.
2. Many organizations rely on conventional AML systems that are not up-
to-date with the functionality that modern software oers, making them
fail in discovering false positives and suspicious activities.
3. Insucient customer due diligence and automated checks mean that
nancial institutions are vulnerable because they fail to verify the identity
and the source of the funds.
regulation, but also increasing nes for companies that
are not compliant with AML regulation.
Climate change and the growing focus on sustainable
business practices are yet another growth driver.
Digitalization removes the need for physical documents
and helps companies to become more sustainable by
increasing resource eciency and reducing waste.
Penneos solutions remove the need for physical
documents, which helps companies increase resource
eciency, reduce waste, and thus generally make
business practices more sustainable.
Break into new marketsOur business
Penneo Annual report 2022 31
USD
USD
Global market
growth is
assessed to be
representative
for EU market
growth
2022 2020
Expected market growth in the global digital
signature market
Expected market growth in the global
KYC market
Source: MarketsandMarkets Source: Fatpos Global
2027E 2026E
5.5bn 3.0bn
25.2bn
10.1bn
36%
CAGR
22%
CAGR
Break into new
markets while
expanding
existing ones
Over the last years, Penneo has successfully improved
its market position in Denmark, Sweden, and Norway,
and also secured a number of large auditing and
accounting customers in Belgium and Finland. In this
way, we have managed to attract several new large
companies and at the same time create revenue uplift
from our existing customer base of Penneo Sign.
To continue on this path, Penneo has adopted a growth
strategy that outlines how we plan to create additional
revenue by entering new geographical markets and
simultaneously expand further in the ones where we
are already present.
In our existing markets, the plan is to strengthen our
collaboration with the largest auditing and accounting
customers and target other players in the same industry
as well as companies in dierent industries with heavy
document workows.
Meanwhile, in new markets outside Scandinavia, our
approach is to leverage the strong relationships we
have with large auditing and accounting companies in
the Nordics to secure business in new geographies.
In general, and regardless of whether it is a new or
existing market, we are committed to invest in three
areas that we believe are critical to stay competitive:
Break into new marketsOur business
Penneo Annual report 2022 32
1. Additional investments in
the auditing and accounting industry
To secure a leading position, both in existing and newer markets such as
Belgium, Penneo is increasing investments both from a commercial and
technological perspective. This entails for example sales and marketing,
solution adaptation to meet language and industry standards and comply
with local rules and regulation. In new markets our priority is the local au-
diting and accounting industry because it brings us into a position where
we can capitalize on network eects and make our value proposition visi-
ble towards companies in other AML-regulated industries.
2. Providing value-adding solutions to
other AML-regulated industry companies
Penneo intends to leverage its traction in the auditing and accounting
industry and also tailor its solutions further to address customers
operating in adjacent industries that are also subject to AML regulations,
and have a need for both our Penneo Sign and KYC solution. This includes
for example leasing companies, real estate and property administration
companies among several others.
3. Upsell Penneo KYC to
auditing and accounting industry
Penneo KYC is a new growth lever and plays a key role in consolidating
our position as a critical software provider for auditors. During 2022, we
have made solid progress upselling KYC to existing Sign customers, but
also in using the product to secure new business. To exploit this potential
further, we are investing in sales and marketing and product development.
Integrations, for example, is a key focus area intended to make it easier for
our customers to make KYC work with their current IT infrastructure. In
addition, tailoring KYC to meet dierent regional compliance requirements
in Europe is also a focus area.
Penneo Annual report 2022 33
Penneo receives
green light for
acceptance on the
EU Trust List
Penneo has been accepted for inclusion on the EU
Trust List marking a major milestone reached for the
company since it paves the way for further growth in
the audit and accounting vertical and other industries
across Europe.
In early 2023, the Agency for Digital Government
in Denmark (Digitaliseringsstyrelsen) completed
its review and approved Penneo’s application to be
included on the European Commission Trust list (EUTL).
This means that Penneo is now ocially listed on a
public list of Quality Trust Service Providers (QTSPs)
that are specically accredited and authorized to
deliver the highest levels of compliance with the EU
eIDAS electronic signature regulation.
During 2022, Penneo has invested signicant resources
to enhance its tech infrastructure and upgrade the
company’s Sign platform according to EU legislation. The
recent approval means that Penneo is now authorized
to oer the highest level of electronic signature in the
eIDAS regulation: Qualied Electronic Signatures (QES)
in addition to Advanced Electronic Signatures (AES)
that Penneo already oers. The signature type that is
issued in dierent EU member states depends on the
assurance level and maturity of the eID infrastructure
in a given country. Becoming a QTSP, however, positions
Penneo as a key player in this eld and will allow the
company to increase the security and compliance level
for signatures as soon as the market allows it.
In eIDAS, only QES signatures are perceived legally and
automatically equivalent to handwritten signatures.
Also, they are the only types of signatures that are
automatically recognized in transactions across EU
member states.
All EU member states oversee providers in their own
country, but once a QTSP is approved in one country,
their services can be marketed in other EU countries
with the same level of compliance. In other words,
the approval will improve Penneo’s overall value
proposition and ability to serve larger companies
across borders in the EU.
In Denmark, the only entities listed on the EUTL are
currently the Danish Government and Nets. In many
countries outside the Nordics, QES is required for
certain document types to be considered legally valid.
For example, this is the case for employee contracts in
Belgium and annual reports in Germany. In this way,
QES is an important market enabler and Penneos
expects it will speed up new market entries.
The eIDAS regulation was introduced in 2016 and
became mandatory in all EU member states taking
precedence over any conicting national laws. At
the time, it replaced the eSignature Directive that
was introduced in the late 90’s by establishing an
EU-wide legal framework for electronic signatures
and a range of newly dened digital “trust services”.
The overall objective of the regulation is to enable
convenient and secure electronic transactions
across EU borders for citizens, businesses, and
public sector institutions.
Green light acceptance on the EU Trust ListOur business
Penneo Annual report 2022 34
Governance Section
Penneo Annual report 2022 35
Governance Section Company information
Governance
Board of Directors
Company information
Executive Board Auditor
Penneo A/S
Enghavevej 40
DK-1674 Copenhagen V
Christian Sagild (Chairman)
Morten Kenneth Elk
Rikke Stampe Skov
Steen Heegaard
CEO Christian Stendevad Deloitte Statsautoriseret
Revisionspartnerselskab
Business Registration No.: 35 63 37 66
Registered oce: Copenhagen
Date of incorporation: 09.01.2014
Accounting period: 01.01.2022 - 31.12.2022
Penneo Annual report 2022 36
Christian Stendevad has solid experience within the digital identity and security space and
in scaling SaaS businesses globally. Christian is an experienced leader who previously held
a position as Chief Operating Ocer in Omada. Christian has been with Omada for the past
17 years, where he successfully co-headed the international scaling and growth journey of
Omada. Prior to Omada he held a position as Managing Consultant in PwC Consulting and
IBM.
Christian Stendevad privately owns 21,554 shares in Penneo A/S.
Christian Stendevad privately holds 930,000 warrants in Penneo A/S.
Christian Stendevad
CEO (Chief Executive Ocer) since 18.08.2021
Profession: Chief Executive Ocer at Penneo
Educational background:
Master in Engineering in Electronics, DTU
Christian Sagild is currently the Chairman of Nordic Solar A/S, Deputy Chairman of Ambu A/S,
and member of the Board of Directors in Royal Unibrew A/S. He was the CEO of Topdanmark A/S
between 2009-2017. His areas of expertise are capital markets, managing public companies,
stakeholder and reputation management, and complex framework management.
Other key positions: Chairman of the Remuneration and Nomination committee and member
of the Audit and Risk Committee in Nordic Solar A/S. Member of the Audit Committee of Ambu
A/S. Chairman of the Audit Committee of Royal Unibrew A/S
Independent of Company
Christian Sagild privately owns 200,000 shares in Penneo A/S.
Christian Sagild privately holds 597,037 warrants in Penneo A/S.
Christian Sagild
Chairman of the Board
Chairman since 28.04.2021
Profession: Professional board member
Educational background:
Actuary, cand. act. , University of Copenhagen
Governance Section Executive bios and Board of Directors
Penneo Annual report 2022 37
Rikke Stampe Skov is the CEO of Impero A/S, a position, which she has held since June 2018.
Prior to joining Impero, Rikke Stampe Skov worked as a partner in PwC co-chairing the Risk
Assurance Services service line, and later as a partner with Odgers Berndtson. Before this,
Rikke co-founded the IT security consulting company, Protego. Rikke Stampe Skov’s long
career also includes positions with Maersk, ISS, and Siemens. She also serves as a board
advisor with several organizations.
Other key positions: CEO at Impero, Chairman of the Board at Union Bulk, member of the
Board of Representatives at Forenet Kredit.
Independent of Company
Rikke Stampe Skov privately owns 1,615 shares in Penneo A/S.
Rikke Stampe Skov privately holds 15,000 warrants in Penneo A/S.
Rikke Stampe Skov
Board member
Board member since 5.03.2021
Profession: CEO at Impero A/S
Educational background:
Board Master Class (CBS), HD(O) (CBS), HA(jur.) (CBS)
Governance Section Executive bios and Board of Directors
Steen Heegaard has more than 30 years of experience within capital market communication,
investor relations and ESG, primarily from Topdanmark. He was Head of Investor Relations,
Communications and ESG, Executive Vice President at Topdanmark from 1999-2021 and has
now transitioned into a board career.
Other key positions: Board member at Luxor A/S, Chairman of the Board of Directors
at Flowering ApS, Chairman of the Board of Directors at Janica A/S, Board member at HC
Andersen Capital.
Independent of Company
Steen Heegaard owns 7,222 shares in Penneo A/S.
Steen Heegaard privately holds 15,000 warrants in Penneo A/S.
Steen Heegaard
Board member
Board member since 27.04.2022
Profession: Professional board member
Educational background: Cand.merc.r, Copen-
hagen Business School (CBS); Board Leadership
Masterclass, Copenhagen Business School (CBS)
Penneo Annual report 2022 38
Morten Kenneth Elk
Board member since 14.09.2018
Profession: Professional board member and
investor
Educational background: Ph.D. Physics, University
of Copenhagen
Morten Elk is a serial entrepreneur, board member and business angel. He began his career
in 1997 after leaving a postdoctoral position in Physics to co-found what became a leading
Danish digital agency. In 2003, Morten Elk co-founded SimpleSite, a global player in the DIY
website building eld. The company was exited to Group.One in 2022. Morten Elk has invested
in several start-ups and holds board and chairman positions in a number of them. He is also
the initiator behind the event series Nordic Growth Hackers where members from the tech
community in Copenhagen come together to share growth experiences and tactics.
Independent of Company
Morten Kenneth Elk privately owns 18,083 shares in Penneo A/S.
Morten Kenneth Elk privately holds 283,167 warrants in Penneo A/S.
Board composition
As of 31 December 2022, the Board of Directors consists
of four members. To ensure constructive and value-
creating discussions, the Board aims at ensuring the
right composition and balance of competencies. This
includes Board members with competencies related to
scaling SaaS based businesses and preparing them for
international growth, but also members that hold solid
experience in other elds and a strong track record
from large listed companies to ensure long term value-
creation for Penneo.
Board evaluation
In Q4-2022, the Board of Directors conducted a self-
evaluation to ensure that it serves Penneo’s overall
purpose and promotes its culture and values. The
Chairman of the Board was responsible for conducting
this evaluation and it included all members of the Board
as well as the Executive Board. The evaluation was
conducted using the recommendations on Corporate
Governance that are aimed primarily at Danish
companies whose shares are admitted to trading on a
regulated market. As part of the evaluation, the Board
focused on how collaboration and board operations
can be improved as well as current board composition
among several other areas. The intention is to repeat
the Board evaluation yearly.
Board committees
During 2022, following the general assembly, Penneo
has established a formal Audit Committee. Following
the recommendations on Corporate Governance,
this committee is composed such that the chairman
of the board of directors is not chairman of the audit
committee. Rikke Skov is currently Chairman of
Penneo’s Audit committee, while Christian Sagild is a
member of the committee. The Audit Comittee has held
three meetings during 2022.
Penneo’s Corporate Governance Statement is available on
the company’s website
www.penneo.com/investors
Governance Section Executive bios and Board of Directors
Penneo Annual report 2022 39
Key risks
Risk management
Penneo regularly assesses which risks the company is
facing as an organization in order to make sure that
appropriate mitigation measures are taken to address
them. The risk management approach is inspired by the
International Organisation for Standardization (ISO)
31000 (Risk Management Framework) and covers all
areas within Penneo, such as nancial, organizational,
legal, market, industry and cyber risks. Risk owners
evaluate relevant risks and Penneo’s CEO evaluates
the risk assessments. The results of these assessments
are then presented to Penneo’s Audit Committee
and ultimately to the Board of Directors where nal
discussions are held and decisions are made.
Cyber risk
As a processor of sensitive customer data through
the products Penneo Sign and Penneo KYC, Penneo
continues to have product security as a top priority to
mitigate the risk of cyber threats, as well as other kinds
of risks that could disrupt Penneo’s services or lead to
unintended disclosure of data.
Penneo continues to operate its Information Security
Management System (ISMS), which is based on the
internationally recognised ISO 27001 standard, to
ensure that appropriate internal processes and controls
address relevant risks related to the condentiality,
integrity and availability of data.
Penneo engages an external audit rm to audit
relevant internal processes and controls for both
Penneo Sign and Penneo KYC, which results in ISAE
3000 audit reports that are shared with customers
and other relevant stakeholders. Both technical and
organizational measures are audited and cover areas
such as governance, access control, encryption,
disaster recovery and software development. Penneo
also engages an external IT security rm to perform
security penetration tests aimed at testing Penneo’s
infrastructure and applications and discover potential
vulnerabilities.
Penneo uses Amazon Web Services (AWS) as its
Infrastructure as a Service (IaaS) provider, which
continues to be a secure and reliable hosting provider.
Both performance and compliance is monitored by
Penneo’s engineers and Legal and Compliance teams.
In 2022, Penneo has been audited by an independent
auditor using the the criteria that are applied to
European Qualied Trust Service Providers (QTSP),
a group of providers that have been specically
accredited to deliver the highest levels of compliance
with the EU eIDAS electronic signature regulation. As
part of this audit, Penneo has been evaluated across
a range of dierent organizational and technical
requirements. Penneo successfully completed this
audit demonstrating its ability to provide secure and
reliable products.
GDPR risk
Penneo handles a large amount of EU citizens personal
data and is subject to the General Data Protection
Regulation. Penneo is subject to risks as we operate
both as a Data Processor, in relation to our customers
data, and as a Data Controller for our employees’
personal data. Non-compliance with this legislation can
be due to human error, insucient technical security
measures, misinterpretation of the rules or case law.
The consequences for non-compliance are either
public criticism or a ne. Most severely, Penneo could
face reputational damages.
Implemented measures
Penneo has implemented several internal guidelines
and all employees must complete an annual awareness
training. Penneo vets all vendors and suppliers from
a GDPR and security perspective. Through dialogue
and follow-up between our management, legal and
product/engineering department, Penneo tries to
update our products in response to new case law or
data privacy specications.
Penneo will implement more automated ways of
improving and scaling our data protection eorts and
is planning to become ISO 27701 certied. Penneo
also ensures adequate training of legal sta through
seminars and certications to stay updated on
relevant changes to the legislation and the practical
implementation of data privacy rules/case law.
Governance Section Key risks
Penneo Annual report 2022 40
Company
information
Penneo is a Software-as-a-Service (SaaS) provider
originally established to help companies with digital
document signatures. Penneo was founded by Danish
entrepreneurs, who joined forces with a shared ambition
to reduce the “hassle of getting documents signed” by
replacing pen and paper with a digital alternative. This
new digital “pen” (Pen-neo) was launched in 2014.
Today, Penneo has evolved into an eco-system of
automation solutions that digitize company workows
in connection with onboarding of customers (KYC),
secure signing and management of documents. The
comp any o e r s a R e gTec h s olu ti o n t ha t g i v es co m p an i e s
an ecient and inexpensive tool for complying with
regulatory requirements.
Penneo holds a strong position across the geographical
markets it operates in. In total, 1.8 million individuals
signed documents electronically with Penneo in 2022
across all of the markets we operate in.
For more information about Penneo please visit:
https://penneo.com/investors/
2023
nancial calender
Q1 REPORT
ANNUAL GENERAL MEETING
H1 REPORT
Q3 REPORT
May 16, 2023
March 29, 2023
August 17, 2023
November 21, 2023
Governance Section Company information
41Penneo Annual report 2022
Financial review
Penneo Annual report 2022 42
Financial review CFO statement
CFO statement
Deployment of raised growth capital
Following the net 59M DKK capital raise carried out at
the end 2022-Q1, the main focus of 2022 has been to
scale up our team in preparation for future growth. Even
though we faced some employee retention challenges in
2022, we also addressed these issues and took relevant
mitigating actions.
Consequently, we ended the year as a team of 111
people compared to 83 people at the end of 2021. In
2023, we do not expect to increase our headcount as
much as in 2022. Our plans for 2023 include additional
headcounts to scale our product development team
further and also hire additional sales sta focused on
foreign markets later on in 2023.
For now, however, our core focus is to consolidate
and make sure that new resources hired in 2022 are
productive and fully ramped up to deliver expected
outcomes. Looking ahead, we will carry out investments
with caution to ensure a balance between negative free
cash ow and the growth rate.
Customer Acquisition Cost (CAC)
In 2022, we onboarded 404 new customers with initial
ARR at 20T DKK on average per customer. In total, costs
related to acquiring new customers including lead
generation as well as sales and marketing sta costs
amounted to 13M DKK corresponding to an average cost
of 32T DKK per new customer.
Consequently, it takes approximately 19 months to
recover CAC. In general, the customer is invoiced for 12
months up front, which is why the customer is expected
to be cash positive after one year of subscription. Due to
this rapid pay-back time as well as the long and growing
‘tail’ of positive cash-ow that continues after year one
(with net ARR retention of 113% in 2022), we consider
our current customer acquisition process protable.
In 2022, 19% of our xed costs were allocated to acquiring
new customers. This gure reects our dual focus
between upsell and sales to new customers. We expect
roughly the same focus in 2023, and consequently the
total amount of costs spent on getting new customers
on board will increase when we scale the xed costs.
In addition, we have established a revenue operation
department to ensure a constant focus and follow up on
all the initiatives set in place across the dierent units
that make up our commercial organization.
EBITDA
In 2022, we realized a less negative EBITDA (negative
11M DKK) than we provided in our initial guidance
(negative 15-20M DKK). As previously communicated
(Company Announcement No. 01-2023) this is due to
a higher recognized revenue, a change in the method
we used to measure provision related to the accounts
receivables and slightly lower than expected overall
costs related to payroll.
Even if we had not encountered these changes, our
EBITDA for 2022 would have approached the ‘positive’
end of our initial guidance (negative 20-15M DKK). This
is due to a combination of two factors. Firstly, in 2022
we encountered unintended employee attrition and
also challenges recruiting new employees in 2022 which
translated into signicantly lower than expected costs
related to payroll. Secondly, we took a more cautious
approach to investments in general due to the changed
macroeconomic environment.
Penneo Annual report 2022 43
Key gures
Financial review Key gures
DKK 2022-Q4 2022-Q3 2022-Q2 2022-Q1 2021-Q4 2021-Q3 2021-Q2 2021-Q1
Revenue 25,388,533 14,748,751 17,565,608 14,354,746 18,458,693 9,128,555 15,832,776 10,860,201
Cost of sales (3,563,534) (2,834,338) (3,187,849) (2,936,584) (2,690,089) (2,071,042) (2,607,159) (2,294,986)
Gross prot 21,824,999 11,914,413 14,377,759 11,418,162 15,768,604 7,057,514 13,225,617 8,565,215
86% 81% 82% 80% 85% 77% 84% 79%
Other external expenses (4,419,983) (4,820,340) (4,556,908) (4,025,980) (3,626,638) (3,405,948) (3,298,648) (4,114,219)
Sta costs (14,185,712) (11,764,446) (13,489,501) (13,399,421) (12,729,816) (11,741,094) (10,628,358) (9,140,370)
EBITDA* (3,319,304) (4,670,373) (3,668,650) (6,007,239) (587,850) (8,089,529) (701,389) (4,689,374)
DKK 2022 2021
Revenue 72,057,638 54,280,225
Cost of sales (12,522,305) (9,663,276)
Gross prot 59,535,333 44,616,950
83% 82%
Other external expenses (17,823,211) (14,445,453)
Sta costs (52,839,080) (44,239,638)
EBITDA* (11,126,958) (14,068,142)
*EBITDA does not include income and costs categorised as “Other income” and “Other operating expenses” on page 53.
Penneo Annual report 2022 44
Key gures
Financial review Key gures
M DKK 2022 2021 2020 2019 2018*
Financial performance
Annual recurring revenue** 71.0 55.5 37.0 25.0 18.0
Revenue 72.1 54.3 35.5 27.6 22.7
Gross prot 59.5 44.6 28.5 22.2 19.7
Operating prot (23.5) (22.7) (16.2) (2.2) 3.7
Net nancials (2.3) (1.4) (1.0) (0.5) (0.1)
Net prot/(loss) (20.3) (18.6) (12.8) (2.7) (2.2)
Purchase of property, plant and equipment 0.1 0.7 0.6 0.2 0.0
Purchase of intangible assests 19.1 14.8 23.9 3.4 5.6
Trade receivables 20.0 11.8 8.7 3.5 5.2
Free cash ow (29.4) (23.6) (22.2) (5.7) 2.9
Equity 105.5 57.0 57.6 9.0 6.1
Total assets 152.0 104.5 95.9 39.4 22.9
Financial ratios
ARR growth 28% 50% 48% 39% 80%
Revenue growth 33% 53% 29% 21% 141%
Gross margin 83% 82% 80% 81% 87%
Operating margin (33%) (42%) (46%) (8%) 16%
Solvency ratio 69% 55% 60% 23% 27%
Asset turnover 0.6 0.5 0.5 0.9 1.4
Trade receivables turnover ratio 4.5 5.4 6.1 5.8 3.7
ARR growth vs FCF*** (1.9) (1.3) (1.8) (0.8) 0.4
Adjusted ARR growth vs FCF**** (1.7) (1.3) (1.7) (0.8) 0.4
* The annual report of 2018 was prepared in accordance with the Danish Financial Statements Act.
** Annual recurring revenue is a non-IFRS nancial measurement.
*** The growth rate represents the cost of increasing Annual Recurring Revenue by 1 DKK.
**** Adjusted for the cost that is associated with the listing on both the First North and the Copenhagen Main Market (2.3M DKK in 2020 and 2.4M DKK in 2022)
Penneo Annual report 2022 45
Financial review Financial commentary
Financial commentary
Recognized revenue
In 2022, total recognized revenue increased by 33%
compared to 2021. Revenue from the Belgian market
increased by 229% in 2022 compared to 2021 due to
Penneo’s increased focus on internationalization and
the presence of a new local Penneo team. Meanwhile,
revenue from the Danish market grew by 32% in 2022
compared to 2021.
The deviation between ARR and recognized revenue is
caused by the following three reasons.
1. One-time fees recognized does not count for any
ARR.
2. Recognized revenue from signature packages are
not equal to the ARR from signatures, since the ARR
is calculated by taking the past 12 months of usage
multiplied by the signature price.
3. Revenue is recognized when outlined performance
obligations are met. Please refer to note 1 for fur-
ther explanation.
Cost of sales
Cost of sales has increased by 30% in 2022 compared
to 2021, which is caused by the continuously increased
usage of Penneo’s products. As a result of the increases
in revenue of 33% and cost of sales of 30%, the gross
prot margin has increased from 82% in 2021 to 83%
in 2022.
Other external expenses
Other external expenses have increased by 23% in 2022
compared to 2021. This is a result of the investments
we have made to improve the way Penneo operates
and support the company’s growth and internationali-
zation. It includes for example marketing costs and the
cost of four consultants working full-time for Penneo.
Sta costs
Sta costs have increased by 19% in 2022 compared to
2021 driven primarily by the recruitment of new em-
ployees in sales, marketing and software development.
Furthermore, Penneo has also invested in recruiting
specialists and resources devoted to management to
strengthen and professionalize its organization further.
Other operating expenses
Other operating expenses have increased by 133% in
2022 compared to 2021. Other operating expenses
solely consist of costs related to the Nasdaq Copenha-
gen Main Market listing.
Intangible assets
Intangible assets have increased by 27% in 2022 com-
pared to 2021 which is caused by the growing continu-
ous investment into development projects.
Trade receivables
Trade receivables have increased by 69% in 2022 com-
pared to 2021. The increased sum of trade receivables
is caused by December 2022 being the highest invoicing
month in the lifetime of Penneo. In December 2022, in-
voicing increased by 65% compared to December 2021.
Income tax receivables
Income tax receivable consists of tax credit related to
Penneo’s innovative development projects.
Trade payables
Trade payables have decreased by 40% in 2022 com-
pared to 2021. This decrease has been caused by ex-
traordinary high trade payables in 2021.
Cash ow from operating activities
Net cash ow from operating activities resulted in an
outow of 10.0M DKK in 2022 compared to an outow
of 8.1M DKK in 2021. Net cash ow from operating ac-
tivities is related to the increase in the operations re-
lated costs (e.g. sta costs and increased marketing
activities) that are being invested in the international
expansion of Penneo according to the strategy in ad-
dition to the Nasdaq Copenhagen Main Market listing.
Cash ow from investing activities
Net cash ow from investing activities resulted in an
outow of 19.4M DKK in 2022 compared to an outow
of 15.5M DKK in 2021. The increase is caused by an
increased focus and investment in the continued devel-
opment and enhancement of Penneo’s products.
Cash ow from nancing activities
Net cash ow from nancing activities resulted in an
inow of 57.2M DKK in 2022 compared to an inow of
17.1M DKK in 2021. The increase was caused by the net
59M DKK capital raise in March 2022.
Penneo Annual report 2022 46
Financial review Financial commentary
DKK 2022 2021
Cash ow from operating activities (10,043,589 (8.079,301)
Cash ow from investing activities (19,403,043) (15,481,131)
Free Cash Flow (29,446,632) (23,560,432)
Adjusted* 2.365,758
Adjusted Free Cash Flow (27,080,874) (23,560,432)
Cash ow from nancing activities 57,192,126 17,133,378
Cash and cash equivalents EoY 53,161,291 25,415,797
DKK 2022-Q4 2022-Q3 2022-Q2 2022-Q1 2021-Q4 2021-Q3 2021-Q2 2021-Q1
Cash ow from operating activities 795,552 (2,054,739) (3,542,478) (5,241,924) (617,208) 482,436 2,655,548 (10,600,077)
Cash ow from investing activities (5,037,090) (5,198,482) (4,481,480) (4,685,991) (4,755,818) (3,661,802) (3,436,842) (3,626,669)
Free Cash Flow (FCF) (4,241,537) (7,253,221) (8,023,958) (9,927,915) (5,373,026) (3,179, 366) (781,294) (14,226,746)
Adjusted* 2,365,758
Adjusted free cash ow (4,241,537) (7,253,221) (5,658,200) (9,927,915) (5,373,026) (3,179,366) (781,294) (14,226,746)
Cash ow from nancing activities 9.7 45.8 169,800 57,891,011 9,223,422 9,031,981 (591,338) (530,624)
Cash and cash eqivalents EoY 8.2 31.8 65,524,735 73,378,894 25,415,797 21,565,401 15,712,849 17,085,481
*Adjusted for the cost that is associated with the listing on both the First North and the Copenhagen Main Market (2.3M DKK in 2020 and 2.4M DKK in 2022)
47Penneo Annual report 2022
Financial statements
Penneo Annual report 2022 48
Statement by
Management
Copenhagen, 28 February 2023
Executive Board
CEO, Christian Stendevad
Board of Directors
Christian Sagild
Rikke Stampe Skov
Morten Kenneth Elk
Steffen Heegaard
The Board of Directors and Executive Board have today
considered and approved the annual report for the
nancial year 1 January 2022 – 31 December 2022 for
Penneo A/S.
The nancial statements have been prepared in
accordance with International Financial Reporting
Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
In our opinion, the nancial statements give a true and
fair view of Penneo’s assets, liabilities and nancial
position as of 31 December 2022 and of the results of
Penneo’s activities and cash ows for the nancial year
01 January 2022 – 31 December 2022. We believe that
the management commentary contains a fair review
of the aairs and conditions referred to therein. The
annual report is submitted for adoption at the Annual
General Meeting which is scheduled to be held on 29
March 2023.
In our opinion, the annual report of Penneo A/S for
the nancial year 1 January to 31 December 2022, with
the le name Penneo-Annual-Report-2022, has been
prepared, in all material respects, in compliance with
the ESEF Regulation.
Financial statements
Penneo Annual report 2022 49
Independent auditor
To the shareholders of PENNEO A/S
Our opinion
We have audited the nancial statements of Penneo
A/S for the nancial year 1 January 2022 – 31 December
2022, which comprise the income statement, statement
of nancial position, statement of changes in equit y and
notes, including a summary of signicant accounting
policies, statement of comprehensive income and cash
ow statement. The nancial statements are prepared
in accordance with International Financial Reporting
Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
In our opinion, the nancial statements give a true
and fair view of the Company’s nancial position at 31
December 2022, and of the results of its operations
and cash ows for the nancial year 1 January 2022 –
31 December 2022 in accordance with International
Financial Reporting Standards as endorsed by the EU
and additional requirements under the Danish Financial
Statements Act.
Our opinion is consistent with our Audit Book
comments issued to the Audit Committee and the
Board of Directors.
Financial statements
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark.
Our responsibilities under those standards and
requirements are further described in the Auditor’s
responsibilities for the audit of the nancial statements
section of this auditor’s report. We are independent of
the Company 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 fullled our other ethical
responsibilities in accordance with these requirements
and the IESBA Code. We believe that the audit evidence
we have obtained is sucient and appropriate to
provide a basis for our opinion.
To the best of our knowledge and belief, we have not
provided any prohibited non-audit services as referred
to in Article 5(1) of Regulation (EU) No 537/2014.
We were appointed auditors of Penneo A/S for the rst
time on 29 December 2019, for the nancial year 2019.
We have been reappointed annually by decision of the
general meeting for a total contiguous engagement
period of 4 years up to and including the nancial year
2022.
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most signicance in
our audit of the nancial statements for the nancial
year 1 January 2022 – 31 December 2022.
These matters were addressed in the context of our
audit of the nancial statements as a whole, and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Revenue recognition
The recognition of revenue is subject to the inherent
complexities in the software industry. We focused on
this area due to the judgemental and complex nature
of revenue recognition, which include identication of
performance obligations in the contracts including the
associated timing of the revenue recognition. Refer to
note 3 “Critical accounting judgements and key sources
of uncertainty” and note 5 “Revenue” in the Financial
Statements.
How the matter was addressed in our audit
We performed risk assessment procedures to obtain an
understanding of the IT systems, business processes
and relevant controls over the Company’s revenue
cycle. For revenue recognized, we evaluated and
challenged Management’s assessment that all benets
for the licenses have been transferred.
For revenue recognized at a point in time, we evaluated
and challenged Management’s documentation for
the right to payment and that the licenses have been
transferred and made available to the customer.
For revenue recognized over time we evaluated and
challenged Management’s assessment that customers
over time consumes and benet from the services
delivered. We also assessed the outcome of prior
period estimates.
Penneo Annual report 2022 50
Financial statements
Statement on the management review
Management is responsible for the management review.
Our opinion on the nancial statements does not cover
the management review, and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the nancial statements,
our responsibility is to read the management review and,
in doing so, consider whether the management review
is materially inconsistent with the nancial 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 review provides the information required
under the Danish Financial Statements Act.
Based on the work we have performed, we conclude that
t h e m a n a g e m e n t r e v i e w i s i n a c c o r d a n c e w i t h t h e n a n c i a l
statements and has been prepared in accordance with
the requirements of the Danish Financial Statements
Act. We did not identify any material misstatement of
the management review.
Management’s responsibilities for the Financial
Statements
Management is responsible for the preparation of
nancial statements that give a true and fair view in
accordance with International Financial Reporting
Standards as endorsed by the EU and additional
requirements of the Danish Financial Statements Act
as well, and for such internal control as Management
determines is necessary to enable the preparation
of nancial statements that are free from material
misstatement, whether due to fraud or error. In
preparing the nancial statements, Management
is responsible for assessing the Company’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 nancial statements unless Management either
intends to liquidate the Entity or to cease operations,
or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
Financial Statements
Our objectives are to obtain reasonable assurance
about whether the nancial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the additional
requirements applicable in Denmark will always detect
a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to inuence the economic
decisions of users taken on the basis of these nancial
statements.
As part of an audit conducted in accordance 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 material
misstatement of the nancial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sucient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
eectiveness of the Entity’s internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by Management.
• Conclude on the appropriateness of Management’s
use of the going concern basis of accounting in
preparing the nancial statements, and, based on
the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast signicant doubt on the Entity’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
Penneo Annual report 2022 51
Financial statements
disclosures in the nancial 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
Entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and
content of the nancial statements, including the
disclosures in the notes, and whether the nancial
statements represent the underlying transactions
and events in a manner that gives a true and fair
view.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and signicant audit ndings,
including any signicant deciencies in internal control
that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and, where applicable, safeguards put in
place and measures taken to eliminate threats.
From the matters communicated with those charged
with governance, we determine those matters that
were of most signicance in the audit of the nancial
statements of the current period and are therefore
the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes
public disclosure about the matter.
Report on compliance with the ESEF Regulation
As part of our audit of the nancial statements of
Penneo A/S we performed procedures to express an
opinion on whether the annual report of Penneo A/S
for the nancial year 1 January 2022 – 31 December
2022 with the le name Penneo-Annual-Report-2022 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
of the annual report in XHTML format.
Management is responsible for preparing an annual
report that complies with the ESEF Regulation. This
responsibility includes the preparing of the annual
report in XHTML format.
Our responsibility is to obtain reasonable 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 procedures consist of
testing whether the annual report is prepared in XHTML
format.
In our opinion, the annual report of Penneo A/S for the
nancial year 1 January 2022 – 31 December 2022 with
the le name Penneo-Annual-Report-2022 is prepared,
in all material respects, in compliance with the ESEF
Regulation.
Copenhagen, 28 February 2023
Deloitte
Statsautoriseret Revisionspartnerselskab
CVR-nr.: 33 96 35 56
Bjørn Winkler Jakobsen
State-Authorised Public Accountant
MNE-nr. mne32127
Henrik Wolff Mikkelsen
State-Authorised Public Accountant
MNE-nr. mne33747
52Penneo Annual report 2022
Penneo Annual report 2022 53
Statement of prot or loss and other comprehensive income
Note
2022
DKK
2021
DKK
Revenue 5 72,057,638 54,280,225
Cost of sales (12,522,305) (9,663,276)
Gross prot 59.535,333 44,616,950
Other external expenses (17,823,211) (14,445,453)
Sta costs 6 (52,839,080) (44,239,638)
Other income 44,785 44,785
Other operation expenses (2,365,758) (1,017,363)
Depreciation, amortisation, impairment 8 (10,012,975) (7,682,379)
Operating prot/(loss) (23,460,907) (22,723,098)
Financial income 9 122,528 128,363
Financial expenses 10 (2,420,728) (1,576,313)
Prot/(loss) before tax (25,759,107) (24,171,048)
Tax for the year 11 5,500,000 5,536,417
Prot/(loss) for the year (20,259,107) (18,634,631)
Total comprehensive income for the year (20,259,107) (18,634,631)
Earnings per share, basic (EPS) 18 (0.65) (0.72)
Earnings per share, diluted (DEPS) 18 (0.65) (0.72)
Financial statements
Penneo Annual report 2022 54
Statement of nancial position
Note
31.12.2022
DKK
31.12.2021
DKK
Intangible assets 12 57,012,359 45,048,292
Property, plant and equipment 13 1,094,886 1,227,193
Right-of-use assets 14 11,602,470 12,852,335
Deposits 15 1,439,174 1,288,942
Total non-current assets 71,148,888 60,416,763
Trade receivables 16 19,980,670 11,830,821
Income tax receivables 11 5,500,000 4,756,084
Other receivables 1,585 22,325
Prepayments 2,198,270 2,039,272
Cash 53,161,291 25,415,797
Total current assets 80,841,817 44,064,299
Total assets 151,990,705 104,481,061
Financial statements
Penneo Annual report 2022 55
Statement of nancial position
Note
31.12.2022
DKK
31.12.2021
DKK
Share capital 18 642,933 542,579
Reserves for development 43,224,973 30,600,906
Retained earnings 44,232,570 12,050,329
Treasury shares 4,477 7,177
Other capital reserves 19 17,396,193 13,842,673
Total equity 105,501,146 57,043,664
Interest bearing liabilities 20 10,699,587 14,366,991
Provisions 21 454,302 442,790
Lease liabilities 14 9,626,100 11,212,840
Other payables 2,442,713 2,384,316
Contract liabilities 5 358,281 403,066
Total non-current liabilites 23,580,983 28,810,003
Contract liabilities 5 5,104,931 4,216,457
Lease liabilites 14 2,835,660 2,347,715
Trade payables 2,691,826 4,487,375
Other payables 8,606,762 7,245,187
Interest bearing liabilities 20 3,669,397 330,660
Total current liabilities 22,908,576 18,627,395
Total liabilities 46,489,559 47,437,397
Total equity and liabilites 151,990,705 104,481,061
Financial statements
Penneo Annual report 2022 56
Statement of changes in equity
2022
Share Capital
DKK
Reserves for
development
expenditure
DKK
Retained earnings
DKK
Treasury shares
DKK
Other capital
reserves
DKK
Total
DKK
Equity beginning of 2022 542,579 30,600,906 12,050,329 7,177 13,842,673 57,043,664
Net prot/(loss) for the period (20,259,107) (20,259,107)
Excercise of warrants 10,770 2,790,926 (457,521) 2,344,176
Capital increase 89,584 61,499,471 61,589,055
Transaction costs (3,659,841) (3,659,841)
Transfer to reserves 12,624,067 (12,624,067) 0
Treasury shares transfered as consideration
in a business combination
3,001,826 (1,826) (3,000,000) 0
Transfer of shares as a part of Employee
Share Scheme
1,433,033 (874) (1,432,159) 0
Shared-based payments 8,443,200 8,443,200
Equity end of 2022 642,933 43,224,973 44,232,570 4,477 17,396,193 105,501,145
2021
Share Capital
DKK
Reserves for
development
expenditure
DKK
Retained earnings
DKK
Treasury shares
DKK
Other capital
reserves
DKK
Total
DKK
Equity beginning of 2021 502,615 15,928,604 35,227,386 7,177 5,910,269 57,576,051
Net prot/(loss) for the period (18,634,631) (18,634,631
Excercise of warrants 39,964 10,159,877 (295,361) 9,904,480
Transaction costs (30,000) (30,000)
Transfer to reserves 14,672,302 (14,672,302) 0
Shared-based payments 8,227,765 8,227,765
Equity end of 2021 542,579 30,600,906 12,050,329 7,177 13,842,673 57,043,664
Financial statements
Penneo Annual report 2022 57
Cash ow statement
Note
2022
DKK
2021
DKK
Operating prot/loss (23,460,907) (22,723,098)
Depreciation, amortisation and impairment 10,012,975 7,682,379
Share-based payment expense 8,443,200 8,227,765
Other income (44,785) (44,785)
Changes in working capital 17 (7,775,213) (2,895,167)
Income taxes received 4,756,084 2,745,144
Financial income received 122,528 128,363
Financial expenses paid (2,097,471) (1,199,901)
Cash ow from operating activities (10,043,589) (8,079,301)
Investments in intangible assets (19,149,425) (14,763,630)
Investments in property plant and equipment (103,386) (687,259)
Deposits (150,232) (30,242)
Cash ow from investing activities (19,403,043) (15,481,131)
Proceeds from borrowings 0 10,000,000
Repayment of borrowings (328,668) (372,778)
Payment of principal portion of lease liabilities (2,752,596) (2,368,323)
Transactions costs from capital increase (3,659,841) (30,000)
Cash increase from capital 63,933,231 9,904,480
Cash ow from nancing activities 57,192,126 17,133,378
Change in cash and cash equivalents
Cash and cash equivalents 1 January 25,415,797 31,842,851
Net cash ow 27,745,494 (6,427,054)
Cash and cash equivalents 31 December 53,161,291 25,415,797
Financial statements
Penneo Annual report 2022 58
Notes
Financial statements
1. Accounting policies 59
2. Adoption of new and amended standards 65
3.
Critical accounting judgements and key
sources of estimation uncertainty
66
4. Segment information 67
5. Revenue 68
6. Sta costs 69
7. Share-based payments 70
8.
Depreciation, amortisation and
impairment
75
9. Financial income 75
10. Financial expenses 75
11. Tax for the year 76
12. Intangible assets 78
13. Property, plant and equipment 81
14. Leases 82
15. Deposits 83
16. Trade receivables 84
17. Working capital changes 84
18. Share capital and earnings per share 85
19. Other capital reserves 86
20. Interest-bearing liabilities 86
21. Provisions 88
22. Financial risks 89
23. Liabilities arising from nancing activities 92
24.
Guarantees, contigent liabilities and
collateral
92
25. Business combinations 93
26. Fee to the auditor 93
27. Related parties 94
28. Events after the reporting period 94
Penneo Annual report 2022 59
1. Accounting policies
Penneo’s nancial statements have been prepared
in accordance with International Financial Reporting
Standards (“IFRS”) as adopted by the EU and additional
Danish disclosure requirements for the nancial
statements of reporting class D enterprises cf. the
Danish Executive Order on Adoption of IFRSs (“IFRS
bekendtgørelsen“) issued in accordance with the
Danish Financial Statements Act (“DFSA”).
Reporting under the ESEF Regulation The Commission
Delegated Regulation (EU) 2019/815 on the European
Single Electronic Format (ESEF Regulation) requires
the use of a particular electronic reporting format for
annual reports of listed companies. More specically,
the ESEF Regulation requires the annual report to
be prepared in XHTML format. Consistently with the
requirements of the ESEF Regulation, the annual
report approved by Management is an XHTML le
Penneo-Annual-Report-2022 that may be opened using
standard web browsers.
Basis of preparation
The nancial statements are presented in Danish
kroner (DKK). The nancial statements have been
prepared on a going concern basis and in accordance
with the historical cost convention, except where IFRS
explicitly requires the use of other values.
For the purpose of clarity, the nancial statements
and the notes to the nancial statements are prepared
using the concepts of materiality and relevance. This
means that line items not considered material in terms
of quantitative and qualitative measures or relevant to
nancial statement users are aggregated and presented
together with other items in the nancial statements.
Similarly, information not considered material is not
presented in the notes.
The accounting policies, except as described below,
have been applied consistently during the nancial
year and for the comparative gures.
Foreign currency translation
Transactions denominated in currencies other than
the functional currency are considered transactions in
foreign currency.
On initial recognition, transactions denominated in
foreign currencies are translated to the functional
currency at the exchange rates at the transaction date.
Foreign exchange rate adjustments arising between
the transaction date and at the date of payment are
recognised in the income statement under nancial
income or nancial expenses.
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates at the
reporting date. The dierence between the exchange
rates at the reporting date and at the date of the
transaction or the exchange rate in the latest nancial
statements is recognised in the income statement
under nancial income or nancial expenses.
Cash ow statement
The cash ow statement is presented using the
indirect method and shows cash ows from operating,
investing, and nancing activities for the year as well as
Penneo’s cash and cash equivalents at the beginning
and end of the nancial year.
Cash ows from operating activities are calculated
based on operating prot/loss, adjusted for the cash
ow eect of non-cash operating items, working
capital changes, nancial expenses paid and income
tax paid. Cash ows from investing activities comprise
payments in connection with the acquisition and sale
of non-current intangible assets, property, plant, and
equipment, as well as nancial assets.
Cash ows from nancing activities comprise payments
arising from changes in the size or composition of
Penneo’s share capital and dividend paid.
Income statement
Revenue
Revenue is recognised exclusive of VAT and taxes
and with deduction of any rebates given. Net
revenue is allocated to performance elements,
where performance elements are training/education,
customer access to systems agreed, delivery of any
validations and certicates of signatures and to a lesser
extent support and storage. Allocation is based on the
contract with the customer to the extent possible, but
for combined contracts, an estimate is being made
for the distribution of sales price to the performance
elements. Such allocation to performance elements is
Penneo Annual report 2022 60
based on historical data to the extent possible, with
frequent reestimation based on the development
in data or other knowledge around tendencies or
expected development. The contracts held by Penneo
are to a huge extent combined contracts. The main
contracts contain three elements: right to use the
system, signatures and support.
Penneo has two main price models within the
Sign solution: “old” transaction based and “new”
subscription based price model. The “old” transaction
based price model which is only for customers who
signed up before 2019 is recognized when the two
distinct performance obligations are met. The invoiced
subscription is recognized upfront at the start date of
the subscription. The signatures are recognized upon
the specic use since the customers have an inventory
that comprises signatures. Bought but not used
signatures are deferred according to the cost-plus a
margin approach as a part of the Contract liabilities.
The “new” subscription based price model which
comprises a fair usage is recognized according to the
subscription period by a specic percentage upfront
and the remaining amount recognized on a straight-
line basis over time. The percentage is calculated by
the average cost of signature lines as certicates on the
signature lines is the only performance element not
fullled at the start date of the subscription. Refer to
note 3 for further details.
One-time fees comprises onboarding and other
consult anc y ser v ices and is recognized upon fulllment.
Cost of sales
Cost of sales comprise costs incurred to achieve the
year’s revenue.
Other external costs
Other external expenses include expenses relating to
Penneo’s ordinary activities, including expenses for
stationery and oce supplies, marketing costs, etc.
Sta costs
Sta costs consist of salaries and wages, share-based
payments, and other benets. Salaries, share-based
payment s , and other benets are recognised in the year
in which the associated services are rendered by the
employees. Contributions to dened contribution plans
are recognised in the income statement in the period
to which they relate and any contributions outstanding
are recognised in the statement of nancial position as
other liabilities.
Depreciation, amortisation and impairment losses
Depreciation, amortisation and impairment losses
relating to property, plant and equipment, intangible
assets and right-of-use assets comprise depreciation
and amortisation.
Share-based payments
The Board of Directors, Management and other
employees have been granted warrants. In addition
the Company has also had an employee share scheme
where the employees were able to sign up. The warrants
as well as the share scheme are measured at fair value
at the grant date and are recognised as an expense
in sta costs over the vesting period. Expenses are
set o against equity as a consequence of the share
based payments being equity settled. Lender warrants
are measured at fair value at the grant date and are
recognised as an expense in nancial expenses over
the vesting period. Expenses are set o against equity
as a consequence of the share based payments being
equity settled.
The fair value of the warrants is measured using the
Black Scholes valuation method or other generally
accepted valuation techniques. The calculation takes
into account the terms and conditions under which the
warrants are granted.
Fair value is not subsequently remeasured. If
subsequent modications to a warrant program
increase the value of the warrants granted, measured
before and after the modication, the increase is
recognised as an expense. If the modication occurs
before the end of the vesting period the increase in
value is recognised as an expense over the period for
services to be received. If the modication occurs after
the vesting date, the increase in value is recognised as
an expense immediately. Consideration received for
warrants sold are recognised directly in equity.
Other operating income and expenses
Other operating income and other operating expenses
comprise income and expenses of a secondary nature
relative to the principal activities of Penneo.
Penneo Annual report 2022 61
Other nancial income
Other nancial income comprises dividends etc.
received on other investments, interest income, net
capital or exchange gains on securities, payables and
transactions in foreign currencies, amortisation of
nancial assets as well as tax relief under the Danish
Tax Prepayment Scheme etc..
Impairment losses on nancial assets
Impairment losses on nancial assets comprise
impairment losses on nancial assets which are not
measured at fair value on a current basis. They are
included in the line item “depreciation, amortisation
and impairment losses”.
Other nancial expenses
Other nancial expenses comprise interest expenses,
lease interest, net capital or exchange losses on payables
and transactions in foreign currencies, amortisation of
nancial liabilities as well as tax surcharge under the
Danish Tax Prepayment Scheme, etc.
Tax
Tax on the prot/loss for the year comprises the year’s
current tax and changes in deferred tax. The tax expense
relating to the prot/loss for the year is recognised in
the income statement, and the tax expense relating to
items recognised in other comprehensive income and
directly in equity, respectively, is recognised in other
comprehensive income or directly in equity. Exchange
rate adjustments of deferred tax are recognised as part
of the adjustment of deferred tax for the year.
Current tax payable and receivable is recognised in
the balance sheet as the expected tax on the taxable
income for the year, adjusted for tax paid on account.
The current tax charge for the year is calculated based
on the tax rates and rules enacted at the balance sheet
date.
Deferred tax is calculated using the liability method
on all temporary dierences between the accounting
and taxable values of assets and liabilities. Deferred
tax assets are assessed yearly and only recognised
to the extent that it is more likely than not that they
can be utilised. Deferred tax assets, including the tax
value of tax losses carried forward, are recognised as
other non-current assets and measured at the amount
at which they are expected to be realised, either by
setting o deferred tax liabilities or by setting o tax
on future earnings within the same legal entity.
However, no deferred tax is recognised for amortisation
of goodwill disallowed for tax purposes and temporary
dierences arising at the date of acquisition that do
not result from a business combination and that do not
have any eect on prot or loss or on taxable income.
Penneo recognises deferred tax assets relating to
losses carried forward when Management nds that
these can be oset against taxable income in the
foreseeable future. An assessment is made taking into
consideration the eect of restrictions in utilisation
in local tax legislation. Future taxable income is
assessed based on budgets as well as Management’s
expectations regarding growth and opeating margin in
the coming years.
Balance sheet
Intangible assets
Goodwill
In connection with every acquisition of businesses,
goodwill and a non-controlling interest (minority) are
recognised as follows: Goodwill relating to the entity
acquired comprises a positive dierence, if any, between
the consideration paid plus the fair value of previous
held interest in the acquiree and the fair value of the
total net assets for accounting purposes.
Goodwill is recognised in intangible assets. It is not
amortised, but reviewed for impairment once a year
and also if events or changes in circumstances indicate
that the carrying value may be impaired. If impairment
is present, the goodwill is written down to its lower
recoverable amount. Sold or liquidated entities are
recognised up to the date of disposal.
Intellectual property rights and development projects
Intellectual property rights etc. comprise development
projects completed and in progress with related
intellectual property rights, acquired intellectual
property rights and prepayments for intangible
assets. Development projects on clearly dened and
identiable products and processes, for which the
technical feasibility, adequate resources and a potential
future market or development opportunity in the
enterprise can be established, and where the intention
is to manufacture, market or apply the product or
process in question, are recognised as intangible assets.
Development costs that does not meet the criteria for
capitalization are recognised as costs in the income
Penneo Annual report 2022 62
statement as incurred. Following initial recognition of
the development expenditure as an asset, the asset is
carried at cost less any accumulated amortisation and
accumulated impairment losses. Amortisation of the
asset begins when development is complete and the
asset is available for use.
Acquired intangible assets are at initial recognition
measured at cost where as intangible assets acquired
in a business combination is measured at fair value.
Intangible assets are amortised over the period
of expected future benet. During the period of
development, the asset is tested for impairment
annually. For development projects protected by
intellectual property rights, the maximum period of
amortisation is the remaining duration of the relevant
rights. The amortisation periods used are 3-10 years.
Property, plant and equipment
Property, plant and equipment comprise other xtures
and ttings as well as leasehold improvements and
are measured at cost less accumulated depreciation
and accumulated impairment. Cost comprises the
acquisition price, costs directly attributable to the
acquisition and preparation costs of the asset until the
time when it is ready to be put into operation. Property,
plant and equipment are depreciated on a straight-line
basis over the expected useful lives of the nite-lived
assets, which are as follows:
Leasehold improvements - 5 years
Other xtures - 5 years
For leasehold improvements, the depreciation period
cannot exceed the contract period. Estimated useful
lives and residual values are reassessed annually. Items
of property, plant and equipment are written down to
the lower of recoverable amount and carrying amount.
Leasehold improvements are tested for impairment
if indications of impairment exist. Tangible assets are
written down to its recoverable amount, if the carrying
amount exceeds the higher of the fair value less costs to
sell and the value in use. Depreciation and impairment
charges are recognised in the income statement.
Leases
When entering into an agreement, Penneo assesses
whether an agreement is a lease agreement or contains
a lease element.
The right-of-use asset is measured at cost, which is cal-
culated as the present value of the lease obligation plus
any direct costs related to the entering into of the lease
and prepaid lease payments. The cost also includes an
estimate of costs to be incurred by the lessee in dis-
mantling and removing the underlying asset.
The right-of-use asset is depreciated on a straight-line
basis over the shorter of the lease term and the useful
life of the asset.
Penneo leases properties which includes a service el-
ement in the payments to the lessor. This service is
deducted from the lease payment when measuring the
lease obligation. Where Penneo cannot reliably sepa-
rate lease and non-lease items, it is considered a single
lease payment. Short leases with a maximum lease
term of 12 months and leases where the underlying as-
set has a low value are not recognised in the statement
of nancial position.
The lease term is dened as the non-cancellable period
of a lease together with periods covered by options
to extend the lease if it is reasonably certain that
the options will be exercised and periods covered by
options to terminate the lease if it is reasonably certain
that the options will not be exercised. A number of
leases contain extension and termination options in
order to guarantee operational exibility in managing
the leases.
The lease obligation, which is recognised under “Lease
liabilities”, is measured at the present value of the
remaining lease payments, discounted by Penneo
incremental loan interest rate, if the implicit interest
rate is not stated in the lease agreement or cannot
reasonably be determined. The lease obligation is
subsequently adjusted if:
• The value of the index or interest rate on which the
lease payments are based changes.
• There is a change in the exercise of options to
extend or shorten the lease period due to a
material event or material change in circumstances
which are within the control of the lessee.
• The lease term is changed as a result of exercising
an option to extend or shorten the lease term.
Penneo Annual report 2022 63
Subsequent adjustments of the lease obligation are
recognised as a correction to the right-of-use asset.
Trade receivables
Trade receivables are measured at amortised cost less
allowance for lifetime expected credit losses. For trade
receivables, Penneo applies a simplied approach in
calculating expected credit losses (ECLs). Therefore,
Penneo does not track changes in credit risk, but
instead recognises a loss allowance based on lifetime
ECLs at each reporting date.
Provisions for bad debts are determined on the basis
of a general provision based on overdue accounts
receivables, adjusted for forward-looking factors
specic to the debtors and the economic environment.
Penneo may also consider a nancial asset to be in
default when internal or external information indicates
that Penneo is unlikely to receive the outstanding
contractual amounts in full before taking into account
any credit enhancements held by Penneo. Trade
receivables are written o when all possible options
have been exhausted and there is no reasonable
expectation of recovery.
The cost of allowances for expected credit losses and
write-os for trade receivables are recognised in the
income statement under other external expenses.
Prepayments
Prepayments comprise incurred costs relating to subse-
quent nancial years. Prepayments are measured at cost.
Cash and cash equivalents
Cash comprises bank deposits.
Contract liabilities
Contract liabilities include prepayments from
customers, which comprise amounts received from
customers prior to delivery of the goods agreed or
completion of the service agreed.
Interest-bearing liabilities
Interest-bearing liabilities are measured at amortised
cost, which usually corresponds to nominal value.
Trade payables and other payables
Other payables include bonus and commission
accruals, vacation pay obligations, payroll taxes and
VAT. Payables are measured at cost.
Provisions
Provisions are recognised when Penneo has a present
obligation (legal or constructive) as a result of a past
event, it is probable that an outow of resources
embodying economic benets will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation.
If the eect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reects, when appropriate, the risks specic to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as
nancial expense.
Reserves for development expenditure
Reserves for development expenditure is a reserves
mandatory by law related to development projects.
The reserves is increasing upon additions to
the development projects and decreasing upon
depreciation or impairment of the development
projects. The reserves does not hold any deferred
tax as the deferred tax asset of Penneo has not been
recognized. Refer to note 11.
Other capital reserves
Other capital reserves is used to recognise the value
of equity-settled share-based payments provided to
employees, including key management personnel, as
part of their remuneration as well as lender warrants.
In addition the reserves is used for shares issued as
consideration in a business combination refer to
note 25. The reserves is decreasing upon exercise of
warrants and issuance of shares as consideration for
the business combination.
Cash ow statement
The cash ow statement shows cash ows from
operating, investing and nancing activities as well as
cash and cash equivalents at the beginning and end of
the nancial year.
Cash ow from operating activities are presented using
the indirect method and calculated as the operating
prot adjusted for non-cash operating items, working
capital changes as well as nancial income received,
nancial expenses paid and income taxes received.
Penneo Annual report 2022 64
Cash ows from investing activities comprise
investments in intangible assets, property plant and
equipment and deposits.
Cash ows from nancing activities comprise proceeds
from borrowings, repayment of borrowings, payments
relating to leasing obligations as well as cash increase
from capital and transaction costs related to the
increase.
Cash and cash equivalents comprise cash.
Penneo Annual report 2022 65
2. Adoption of
new and amended
standards
Management has assessed the impact of new or amend-
ed accounting standards and interpretations (IFRSs)
issued by the IASB and IFRSs endorsed by the European
Union eective on or after 1 January 2022. Management
assessed that application of these has not had a materi-
al impact on the nancial statements for 2022.
Furthermore, Management has assessed the impact of
new or amended accounting standards and interpreta-
tions (IFRSs) issued by the IASB that has not yet become
eective. Management does not anticipate any signif-
icant impact on future periods from the adoption of
these amendments.
Penneo Annual report 2022 66
ponents. Subscription to the platform and certicates
on signature lines constitute the main performance
obligations. The fees allocated to the dierent perfor-
mance obligations are recognized separately.
The only performance obligation related to subscription
has been identied as the right to use the Penneo
platform which is why this is recognized upon the start
date of subscription.
Penneo uses the cost-plus a margin approach relating
to the determination of the deferred revenue relating
to the certicates on the signature lines. The residual
between the transaction price and the allocated price
for certicates on the signature lines are allocated to
the subscription to the platform. Judgment is applied
in allocating the transaction price to the dierent
performance obligations, subscription and certicates.
Development costs
Penneo capitalises costs for software development
projects. Initial capitalisation of costs is based on
management’s judgement that technological and eco-
nomic feasibility is conrmed, usually when a product
development project has reached a dened milestone
according to an established project management mod-
el. In determining the amounts to be capitalised, man-
agement makes assumptions regarding the expected
future cash generation of the project and the expect-
ed period of benets. At 31 December 2022, the carry-
ing amount of capitalised development costs was DKK
43,497k (2021: DKK 30,873k).
Share-based payments
Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which depends on the
terms and conditions of the grant. This estimate also
requires determination of the most appropriate inputs
to the valuation model including the expected life of
the share option or appreciation right, volatility and
dividend yield and making assumptions about them.
The assumptions and models used for estimating
fair value for share-based payment transactions are
disclosed in note 7.
Impairment of non-nancial assets
Impairment exists when the carrying value of an
asset or cash-generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs
of disposal and its value in use. The fair value less costs
of disposal calculation is based on available data from
binding sales transactions, conducted at arm’s length,
for similar assets or observable market prices less
incremental costs of disposing of the asset. The value-
inuse calculation is based on a DCF model.
The cash ows are derived from the budget for the next
six years and do not include restructuring activities
that Penneo is not yet committed to or signicant
future investments that will enhance the performance
of the assets of the CGU being tested. The recoverable
amount is sensitive to the discount rate used for the
DCF model as well as the expected future cash-inows
and the growth rate used for extrapolation purposes.
3. Critical accounting
judgements and key
sources of estimation
uncertainty
As part of the preparation of the nancial statements,
Management makes a number of accounting estimates
and assumptions as a basis for recognising and measuring
Penneo’s assets, liabilities, income and expenses as well
as judgements made in applying Penneo’s accounting
policies. The estimates, judgements and assumptions
made are based on experience gained and other
factors that are considered prudent by Management in
the circumstances, but which are inherently subject to
uncertainty and volatility.
The assumptions may be incomplete or inaccurate,
and unforeseen events or circumstances may occur
for which reason the actual results may dier from
the estimates and judgements made. The accounting
policies are described in detail in note 1 to the nancial
statements to which we refer. Management considers
the following accounting estimates and judgements
to be signicant in the preparation of the nancial
statements.
Revenue
Contracts with customers often include several com-
Penneo Annual report 2022 67
4. Segment
information
For management purposes and based on internal
reporting information, Penneo is organised in only
one operating segment, as the information reported
includes operating results at a consolidated level only.
The company setup and costs related to the main nature
of the business are not attributable to any specic
revenue stream or customer type and are therefore
borne centrally. The results of the single reporting
segment are shown in the statement of comprehensive
income. All non-current assets are related to Denmark.
These estimates are most relevant to goodwill and
other intangibles with indenite useful lives recognised
by Penneo.
The assumptions may be incomplete or inaccurate,
and unforeseen events or circumstances may occur,
for which reason the actual results may dier from the
estimates and judgements made.
Penneo Annual report 2022 68
5.
Revenue
2022
DKK
2021
DKK
Subscription 54,707,740 39,713,249
Signature packages 15,512,159 12,699,575
One-time fee 1,837,739 1,867,401
Total 72,057,638 54,280,225
2022
DKK
2021
DKK
Denmark 52,633,272 39,936,676
Sweden 4,767,952 3,916,318
Norway
11,474,263 9,233,066
Belgium
2,693,868
819,631
Other countries
488,284
374,534
Total 72,057,638 54,280,225
Contract balances (liability)
2022
DKK
2021
DKK
Contract balances at 1 January 4,619,523 4,511,444
Additions 3,954,261 2,644,914
Performance obligations satised (3,110,572) (2,536,835)
Contract balances at 31 December 5,463,212 4,619,523
None of the Company’s customers constitutes 10% or more of the total revenue
Customers are invoiced in the starting or renewal month of their subscription. In addition the signature packages are invoiced upon request or at latest when the customer
runs out of signatures. The default payment term is net 14 days.
The following table shows the opening and closing balances of contract liabilities. There was no revenue recognised in the current reporting period that related to performance
obligations that were satisred in a prior year.
Management expects that around 80% of the transaction price allocated to the unsatised contracts as of the year ended 2022 will be recognised as revenue during the next
reporting period. The remaining 20% will be recognised in the upcoming nancial years.
Penneo Annual report 2022 69
6.
Staff costs
2022
DKK
2021
DKK
Salaries (38,852,945) (33,245,634)
Shared-based payments (8,299,591) (7,631,651)
Other social security costs (2,857,974) (1,247,608)
Other sta costs (2,828,570) (2,114,744)
Total (52,839,080) (44,239,638)
Average numbers of FTE during the year 85 78
2022
Board of
Directors
Executive
management
Key management
personnel Total
Remuneration (939,167) (2,861,448) (2,990,789) (6,791,404)
Shared-based payments (2,303,447) (5,103,213) (214,178) (7,620,837)
Total (3,242,613) (7,964,661) (3,204,967) (14,412,241)
2021
Board of
Directors
Executive
management
Key management
personnel Total
Remuneration (324,182) (1,424,432) (4,920,616) (6,669,230)
Shared-based payments (3,449,277) (3,799,236) 0 (7,248,513)
Total (3,773,459) (5,223,668) (4,920,616) (13,917,743)
In 2022, Penneo has activated an amount corresponding to DKK 15,012k of sta costs as a part of development projects (2021: DKK 11,441k)
Penneo does not provide pension contributions.
Employment contracts for members of the Key Management Personnel contain terms and conditions that are common to those of their peers in similar companies including
terms of notice and non-competitive clauses.
Penneo Annual report 2022 70
7.
Shared-based payments
2022
DKK
2021
DKK
Cost of share-based payments (8,418,126) (8,225,676)
Cost of lender warrants (25,072) (2,089)
Total (8,443,198) (8,227,765)
Costs of share-based payments are recognised as
sta costs with a corresponding eect in equity. In
2022 Penneo has activated an amount corresponding
to DKK 119k of the share-based payments as a part of
development projects (2021: DKK 594k).
Costs of lender warrants are recognised as nancial
expenses with a corresponding eect in equity.
Consideration received for warrants sold is recognised
directly in equity.
Employee shares
In 2020, the employees were oered to participate in
an Employee Share Scheme. A number of shares with
a total fair value at grand date equal to a voluntary
deduction in pre-tax salary vest successively over a
period of 14 months ending 31 December 2021 and are
transferred to the employees when the Company has
published the 2021 Annual Report. If the employee has
left in the vesting period, the employee will still receive
the shares corresponding to the amount deducted
from the pre-tax salary until they left. Every employee
was oered to subscribe for shares within a maximum
of 20% of the pre-tax salary before deduction. 56
employees have accepted the oer and 44,045 shares
were earned corresponding to 0.16% of the share
capital. The share price was DKK 32.77 per share based
on the average share price during week 38 in 2020.
The shares were transferred after the publication of
the 2021 Annual Report.
In December 2021, the employees were oered to
participate in an Employee Share Scheme starting as
of January 2022. A number of shares with a total fair
value at grand date equal to the voluntary deduction
in pre-tax salary vest successively over a period of 12
months ending 31 December 2022 and are transferred
to the employees when the Company has published
the 2022 Annual Report. If the employee leaves in the
vesting period, the employee will still receive the shares
corresponding to the amount deducted from the pre-
tax salary until they leave. Every employee was oered
to subscribe for shares within a maximum of 20% of the
pre-tax salary before deduction.
27 employees accepted the oer and 51,481 shares
were earned corresponding to 0.16% of the share
capital. The share price was DKK 25.81 per share based
on the average share price during week 47 in 2021.
In December 2022, the employees were oered to
participate in an Employee Share Scheme starting as
of January 2023. A number of shares with a total fair
value at grand date equal to the voluntary deduction
in pre-tax salary vest successively over a period of 12
months ending 31 December 2023 and are transferred
to the employees when the Company has published
the 2023 Annual Report. If the employee leaves in the
vesting period, the employee will still receive the shares
corresponding to the amount deducted from the pre-
tax salary until they leave. Every employee was oered
to subscribe for shares within a maximum of 20% of
the pre-tax salary before deduction. 32 employees
accepted the oer corresponding to the issue of 81,702
shares equal to 0.25% of the share capital. The share
price was DKK 10.49 per share based on the average
share price during week 48 in 2022.
Penneo Annual report 2022 71
Employee warrant programmes
The company has over the years introduced Warrant
programmes aimed to key employees. Warrants are
vesting over time to ensure the retention of such key
employees. The warrant program of 28 May 2020 is fully
vested and is a modication to non-exercised warrants
under an existing program where all warrants were fully
vested upon the listing of the Company on First North
in 2020. The program consists of 4,502,603 warrants.
The warrants can be exercised within a period of 14
days after the announcement of the interim nancial
reporting ending 30 June 2021 at the earliest and no
later than 14 days after announcement of the interim
report ending 30 September 2023.
Further, in accordance with the provisions of the
warrant programme the warrant holders are bound by
a lock-up agreement on terms equivalent to the terms
of the Lock-Up Obligation applying to the Existing
Shareholders.
At 13 October 2020, 37,500 warrants were granted to
two key employees divided in 5 tranches. The warrants
in each tranche vest upon the fulllment of dierent
performance conditions before 30 September 2023
provided that the employee is employed at the date the
performance condition is fullled. Vested warrants can
be exercised after the announcement of the nancial
reporting ending 30 June 2021 at the earliest and no
later than 14 days after announcement of the interim
report ending 30 September 2023.
At 22 March 2021, 630,000 warrants were granted
in connection with the appointment of Christian
Stendevad as the new CEO of Penneo. The warrants are
vested over 36 months starting from the rst day of
the employment. Continuous employment during the
vesting period is a condition for the vesting. Warrants
that have not been exercised before 22 March 2029 will
lapse automatically. Vested warrants can be exercised
in periods of four weeks starting the day after the
publication of the Company’s annual report, half-year
report or quarterly report, respectively.
At 28 April 2021, 406,377 warrants were granted in
connection with the election of Christian Sagild as
new Chairman of Penneo. The warrants will vest over
36 months starting from the rst day of employment.
Continuous board duties during the vesting period is a
condition for the vesting. Warrants that have not been
exercised before 28 April 2029 will lapse automatically.
Vested warrants can be exercised in periods of four
weeks starting the day after the publication of the
Company’s annual report, half-year report or quarterly
report, respectively.
At 27 April 2022, 220,600 warrants were granted to
the Board of Directors. The warrants are vested over
36 months starting from the grant date. Continuous
board duties during the vesting period is a condition
for the vesting. Warrants that have not been exercised
no later than 8 years after the date of issuance will
lapse automatically. Vested warrants can be exercised
in periods of four weeks starting the day after the
publication of the Company’s annual report, half-year
report or quarterly report, respectively.
At 1 July 2022, 660.000 warrants were granted to Key
management personnel as well as key employees. The
warrants are vested over 36 months starting from
between the grant date and 1 January 2023. Continuous
employment during the vesting period is a condition
for the vesting. Warrants that have not been exercised
no later than 8 years after the date of issuance will
lapse automatically. Vested warrants can be exercised
in periods of four weeks starting the day after the
publication of the Company’s annual report, half-year
report or quarterly report, respectively.
Penneo Annual report 2022 72
Lender warrant programme
At 8 December 2021, 25,000 warrants were granted to Vækstfonden in connection with raising of a loan. The warrants will vest upon and can solely be exercised in connection
with one of the following three events: In a period of fourteen days following repayment of the loan, in a period of fourteen days from the due date of repayment in which
repayment has not been completed or in a period of ten working days following the Company’s announcement of delisting from Nasdaq First North with no simultaneous listing
of the Company on Nasdaq Copenhagen Main Market. Warrants that have not been exercised before 18 January 2027 will lapse automatically.
The average weighted share price on exercised warrants in 2022 was DKK 13.39.
As of 31-12-2022, 2,583,921 of the outstanding warrants have been vested and are able to be exercised. 1,965,888 of those warrants have a lower exercise price than the closing
share price as of 31-12-2022 which amounted to 9.15 DKK
Number of warrants
Weighted
average
exercise price
DKK
Board of
Directors
Key
management
personnel
Employees,
former
employees
and advisors
Lender
warrants Total
Outstanding at 1 January 2021 4.90 283,167 1,798,726 2,458,210 0 4,540,103
Granted 2021 56.12 406,377 630,000 25,000 1,061,377
Exercised 2021 4.96 0 (63,421) (1,934,782) (1,998,203)
Outstanding at 31 December 2021 19.96 689,544 2,365,305 523,428 25,000 3,603,277
Transferred 2022 4.35 0 (848,302) 848,302 0 0
Granted 2022 12.15 220,660 350,000 310,000 0 880,660
Exercised 2022 4.35 0 (182,413) (356,099) 0 (538,512)
Forfeited 2022 19.06 0 0 (77,222) 0 (77,222)
Outstanding at 31 December 2022 20.38 910,204 1,684,590 1,248,409 25,000 3,868,203
Specication of outstanding warrants:
Penneo Annual report 2022 73
Specication of outstanding warrants:
Warrants outstanding
Weighted average
exercise price
DKK Vesting period Exercise period 2022 2021
Warrants granted 28 May 2020 4.86 Fully vested as of 28 May 2020 From August 2021 to November 2023 1,965,888 2,504,400
Warrants granted 13 October 2020 32.93 From October 2020 to November 2023 From August 2021 to November 2023 7,500 37,500
Warrants granted 22 March 2021 58.94 From August 2021 to July 2024 From August 2021 to March 2029 630,000 630,000
Warrants granted 28 April 2021 53.79 From April 2021 to March 2024 From April 2021 to April 2029 406,377 406,377
Warrants granted 8 December 2021 23.20 From December 2021 to January 2027 From December 2021 to January 2027 25,000 25,000
Warrants granted 27 April 2022 17.85 From May 2022 to April 2025 From May 2022 to April 2030 220,660 0
Warrants granted 1 July 2022 10.24 From August 2022 to July 2025 From August 2022 to July 2030 127,778 0
Warrants granted 1 July 2022 10.24 From November 2022 to October 2025 From November 2022 to October 2030 35,000 0
Warrants granted 1 July 2022 10.24 From December 2022 to November 2025 From December 2022 to November 2030 50,000 0
Warrants granted 1 July 2022 10.24 From January 2023 to December 2025 From January 2023 to December 2030 400,000 0
Outstanding at 31 december 3,868,203 3,603,277
2022 2021
Average remaining life of outstanding warrants at 31 December (years) 3,8 3.5
Exercise price for outstanding warrants at 31 December (DKK) 4.28 to 58.94 4.28 to 58.94
Penneo Annual report 2022 74
Warrant programs
2022
Warrant programs
2021
Lender warrants
2021
Warrant programme
2020
Average share price (DKK) 10.24 -17.85 53.79-58.94 23.20 10.99
Expected volatility rate (% p.a.) 15.75-16.49 25 25 24.92
InterRisk-free interest rate (% p.a.) 0.5 0 0 0
Expected warrant life (no. years) 8 8 5 3
Exercise price (DKK) 10.24 -17.85 53.79-58.94 23.20 4.86
Fair value all warrants, after dilusion (DKK’000) 1,762 16,300 129 27,741
In 2022 the expected volatility rate is based on Penneos historical standard deviation on the share price during Penneos time listed on the Nasdaq market. The standard deviation
on the share price is dened as the daily average.
Before 2022 expected volatility rate is applied based on the annualised volatility on relevant peer groups derived from the standard deviation of daily observations over 12 months
ending 2020 as the entity had not been listed for 12 months as of grant date.
The fair value of the warrants issued is measured at calculated market price at the grant date based on the Black & Scholes option pricing model. Penneo expects no dividend to
be paid out within the near future. The calculation is based on the following assumptions at the grant date:
Penneo Annual report 2022 75
2022
DKK
2021
DKK
Amortisation of intangible assets (7,185,359) (4,971,625)
Depreciation of property, plant and equipment (235,693) (194,806)
Depreciation of right-of-use assets (2,591,924) (2,515,948)
Total (10,012,975) (7,682,379)
2022
DKK
2021
DKK
Interest expenses (1,667,262) (768,498)
Exchange rate adjustments (346,740) (171,165)
Other nancial expenses (406,727) (636,650)
Total (2,420,728) (1,576,313)
2022
DKK
2021
DKK
Exchange rate adjustments 122,528 128,363
Total 122,528 128,363
8. Depreciation, amortisation, and impairment
9. Financial income
10. Financial expenses
Penneo Annual report 2022 76
11. Tax for the year
2022
DKK
2021
DKK
Current tax for the year income 5,500,000 4,756,084
Adjustment concerning previous years 0 780,333
Recognised as receivable tax credit 5,500,000 5,536,417
2022
DKK
2021
DKK
Tax calculated as 22% of prot/loss before tax (5,667,004) (5,317,631)
Non-capitalised tax assets 1,165,207 1,986,393
130% development costs (1,792,313) (1,426,825)
Non-deductible expenses 794,110 1,979
Eective tax (5,500,000) (4,756,084)
Eective tax rate for the year (%) 21% 20%
Income tax benets for both the years 2022 and 2021 relate to tax credit for research and development expenses at the applicable tax rate under the Danish Corporate Income
Tax Act.
Penneo Annual report 2022 77
Deferred tax is recognized in the statement of nancial position as follows:
2022
DKK
2021
DKK
Deferred tax (asset) 0 0
Deferred tax (liability) 0 0
Total 0 0
Deferred tax concerns
2022
DKK
2021
DKK
Intangible assets 9,243,000 6,611,000
Other xtures and ttings, tools, and equipment 41,000 22,000
Right-of-use assets 2,446,000 2,769,000
Lease liabilities (2,742,000) (2,983,000)
Tax loss carried forward (8,988,000) (6,419,000)
Total 0 0
Due to uncertainty of utilisation of the tax loss carry-forward, Penneo has not recognised any deferred tax assets. Deferred tax asset not recognized has a total value of DKK
14,874k as of 31-12-2022 (2021: DKK 13,687k). Total tax loss carried forward amounts to DKK 23,862k in 2022 (2021: DKK 20,105k).
Penneo Annual report 2022 78
12. Intangible assets
2022 DKK
Acquired
intellectual
property rights
Completed
development
project
Development
projects in
progress Goodwill Total
Cost as at 1 January 6,600,000 27,927,134 14,763,630 9,500,000 58,790,764
Additions 19,149,426 19,149,426
Transfer 12,282,376 (12,282,376) 0
Cost as at 31 December 6.600.000 40,209,510 21,630,680 9.500.000 77,940,190
Amortisation and impairment as at 1 January (825,000) (11,817,472) (1,100,000) (13,742,472)
Amortisations during the year (660,000) (6,525,359) (7,185,359)
Amortisations and impairment as at 31 December (1,485,000) (18,342,831) (1,100,000) (20,927,831)
Carrying amount as at 31 December 5,115,000 21,866,679 21,630,680 8,400,000 57,012,359
2021 DKK
Acquired
intellectual
property rights
Completed
development
project
Development
projects in
progress Goodwill Total
Cost as at 1 January 6,600,000 17,963,202 9,963,932 9,500,000 44,027,134
Additions 14,763,630 14,763,630
Transfer 9,963,932 (9,963,932) 0
Cost as at 31 December 6,600,000 27,927,134 14,763,630 9,500,000 58,790,764
Amortisation and impairment as at 1 January (165,000) (7,505,847) (1,100,000) (8,770,847)
Amortisations during the year (660,000) (4,311,625) (4,971,625)
Amortisations and impairment as at 31 December (825,000) (11,817,472) (1,100,000) (13,742,472)
Carrying amount as at 31 December 5,775,000 16,109,662 14,763,630 8,400,000 45,048,292
Penneo Annual report 2022 79
Impairment testing
Penneo tests goodwill for impairment annually, or more frequently if there are indications that goodwill might be impaired. The carrying amount of goodwill has been allocated
to the following cash-generating unit:
* Expected remaining lifetime of Acquired intellectual property rights are 8 years. (2021: 9 years)
** Expected remaining lifetime of Completed development projects are 4 years. (2021: 5 years)
Development projects in progress include the
development of a new software platform. The
development project essentially consists of costs in
the form of direct costs which are registered through
Penneo’s internal project module.
Management is of the opinion that it is technically
possible to complete the development projects during
execution.
Completed development projects comprise software
development costs related to development of the
existing software platform. The software is under
continuous development for the use of customers
and is sold as a licence to use the software for a given
period. The user has access to upgrades and new
functionalities during the contract period. Costs related
to maintenance are expensed when incurred.
Development costs for the year cover both development
of the front-end and the back-end part of the software
solution. Both parts to increase the user experience and
functionalities within the software in order to increase
Penneo’s revenue by maintaining existing clients and
acquiring new clients.
It is Management’s assessment that the expected useful
lives, as well as the expected future revenue streams
from the assets are sucient to cover the value of
recognised developed software at the reporting date.
In 2022, Penneo expensed DKK 8,007k (2021:
DKK 6,855k) for development projects, primarily
planning, administrative and other general overhead
expenditures not meeting the recognition criteria
applicable to internally generated intangible assets.
2022
DKK
Penneo KYC
2021
DKK
Penneo KYC
Goodwill 8,400,000 8,400,000
Acquired intellectual property rights* 5,115,000 5,775,000
Development projects in progress 5,899,422 4,127,726
Completed development projects** 3,750,471 597,721
Total 23,164,893 18,900,447
Penneo Annual report 2022 80
Management is of the opinion that the lowest level of cash-generating unit to which the carrying amount of goodwill can be allocated is in the CGU.
In both 2022 and 2021, the impairment test of goodwill showed no impairment.
The following key assumptions have been used in the impairment testing:
Budgets used for the impairment testing are based on an external and independent research report. The report has been evaluated by management and adjusted to the
Penneo KYC CGU. In addition to the research report a projection has been made by Management according to the research report, historical values and expected revenue split.
WACC:
WACC has been calculated before tax and according to the company’s nancial numbers and loan agreements.
Growth rate in terminal period:
Growth rate in the terminal period has been set to 2% according to external and independent research reports.
Budget period:
The budget period of 10 years has been set according to the current growth stage of Penneo. The growth is not expected to hit a terminal period before 10 years.
CAGR:
Compound annual growth rate has been set to 32% for the budget period. The revenue growth rate is decreasing over the years.
Penneo has conducted an analysis of the sensitivity of the impairment test to changes in the key assumptions used to determine the recoverable amount for the company’s
CGU to which goodwill is allocated. Management believes that any reasonably possible change in the key assumptions on which the recoverable amount of Penneo KYC is based
would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the related CGU.
Penneo KYC
WACC 15.81%
Growth rate in terminal period 2.00%
Budget period (years) 10
CAGR 32%
Penneo Annual report 2022 81
13. Property, plant and equipment
2022
Other xtures
DKK
Leasehold improvements
DKK
Total
DKK
Cost as at 1 January 494,966 1,201,525 1,696,491
Additions 14,271 89,115 103,386
Cost as at 31 December 509,237 1,290,640 1,799,877
Depreciation as at 1 January 0 (469,298) (469,298)
Depreciation during the year (16,975) (218,718) (235,693)
Depreciation as at 31 December (16,975) (688,016) (704,991)
Carrying amount as at 31 December 492,262 602,624 1,094,886
2021
Other
xtures
DKK
Leasehold
improvements
DKK
Total
DKK
Cost as at 1 January 0 1,009,231 1,009,231
Additions 494,966 192,294 687,260
Cost as at 31 December 494,966 1,201,525 1,696,491
Depreciation as at 1 January 0 (274,492) (274,492)
Depreciation during the year 0 (194,806) (194,806)
Depreciation as at 31 December 0 (469,298) (469,298)
Carrying amount as at 31 December 494,966 732,227 1,227,193
Penneo Annual report 2022 82
14. Leases
2022
Properties
DKK
Cost as at 1 January 17,795,996
Additions 221,842
Adjustments and revaluations 1,120,216
Cost as at 31 December 19,138,054
Depreciation as at 1 January (4,943,661)
Depreciation during the year (2,591,924)
Depreciation as at 31 December (7,535,585)
Carrying amount as at 31 December 11,602,469
2021
Properties
DKK
Cost as at 1 January 17,797,072
Adjustments and revaluations (1,076)
Cost as at 31 December 17,795,996
Depreciation as at 1 January (2,427,713)
Depreciation during the year (2,515,948)
Depreciation as at 31 December (4,943,661)
Carrying amount as at 31 December 12,852,335
Penneo Annual report 2022 83
Carrying amounts of lease liabilities and movements during the period:
The following amounts have been recognized in the income statement:
Penneo had total cash outow for leases of DKK 2,753k (2021: DKK 2,368k).
Penneo leases oces and lease terms are negotiated on an individual basis and contain dierent terms and conditions.
In addition Penneo have in 2022 entered into short term and low value leases which according to IFRS 16 have not been recognised as a part of Leases. The total recognised
cost in the income statement amounted to DKK 237k in 2022.
Refer to note 22 for a table of the maturity prole of Penneo’s lease liabilities.
2022
DKK
2021
DKK
As at 1 January 13,560,555 15,564,063
Additions 221,842
Acrual of interest 311,743 365,893
Payments (2,752,596) (2,368,325)
Adjustments 1,120,216 (1,076)
As at 31 December 12,461,760 13,560,555
Non-current 9,626,100 11,212,840
Current 2,835,660 2,347,715
2022
DKK
2021
DKK
Depreciation expense of right-of-use assets 2,591,924 2,515,948
Interest expense on lease liabilities 311,743 365,893
Total amount recognised in the income statement 2,903,667 2,881,841
15. Deposits
2022
DKK
2021
DKK
Cost as at 1 January 1,288,942 1,258,700
Additions 150,232 30,242
Cost as at 31 December 1,439,174 1,288,942
Penneo Annual report 2022 84
16. Trade receivables
31.12.2022
DKK
31.12.2021
DKK
01.01.2021
DKK
Trade receivables 21,653,655 13,370,333 9,084,581
Write-downs (1,672,985) (1,539,512) (423,740)
Total 19,980,670 11,830,821 8,660,841
Not past due Overdue by 0-45 days Overdue by 46-90 days Overdue by >90 days Write-downs
Carring amount of
receivables
31 December 2022 (Trade receivables) 13,026,399 4,670,121 1,061,224 2,895,911 (1,672,985) 19,980,670
31 December 2021 (Trade receivables) 9,100,665 1,646,099 1,084,057 1,539,512 (1,539,512) 11,830,821
01 January 2021 (Trade receivables) 7,404,976 807,554 448,311 423,740 (423,740) 8,660,841
The carrying amounts are equivalent to the fair value of the assets. In 2022 write-downs of DKK 133k has been recognized as an expense (2021: DKK 1,116k)
The following table details the risk prole of trade receivables based on Penneo’s expected loss on trade receivables:
Expected credit loss
The expected credit losses on trade receivables are estimated using a provision matrix. The matrix has been divided into the specic industries in which Penneo has sales. In ad-
dition to the matrix, Penneo has made specic provisions towards high risk customers. The total provision is considered to cover all expected credit loss in the trade receivables.
17. Working capital changes
2022
DKK
2021
DKK
Change in receivables and prepayments (8,288,108) (4,430,075)
Change in trade payables and other payables etc. 512,895 1,534,907
Total (7,775,213) (2,895,168)
Penneo Annual report 2022 85
18. Share capital and earnings per share
As at 31 December 2022, the share capital consisted of 32,146,647 (2021: 27,128,931) shares with a nominal value of DKK 0.02 each.
The shares are not divided into classes and carry no right to xed income.
Earnings per share
*The diluted eect of outstanding share options has not been calculated as the Earnings per share is negative.
DKK Number of shares
As at 1 January 2021 502,615 25,130,728
Capital increase 39,964 1,998,203
As at 31 December 2021 542,579 27,128,931
Capital increase 100,354 5,017,716
Share capital as at 31 December 2022 642,933 32,146,647
The calculation of earnings per share is based on the following: 2022 2021
Prol/(loss) for the period (20,259,107) (18,634,631)
Average numbers of ordinary shares for calculation of earnings per share: 31,054,573 25,719,152
Earnings per share, basic (EPS) (0.65) (0.72)
Earnings per share, diluted (DEPS)* (0.65) (0.72)
Treasury shares Number Nominal value
% of share capital,
year-end
Holding at 1 January 2021 358,841 7,177 1,3%
Holding at 31 December 2021 358,841 7,177 1,3%
Shares issued as consideration in a business combination (43,698) (874) (0,1%)
Transfer of shares as a part of Employee Share Scheme (91,302) (1,826) (0,3%)
Holding at 31 December 2022 223,841 4,477 0,7%
Penneo Annual report 2022 86
20. Interest-bearing liabilities
The carrying amount is by Management assessed as equivalent to the fair value of the liabilities as explained in note 22.
Non-current borrowings
31.12.2022
DKK
31.12.2021
DKK
Debt to credit institutions 10,699,587 14,366,991
Lease liabilities 9,626,100 11,212,840
Total 20,325,687 25,579,831
Current borrowings
Debt to credit institutions 3,669,397 330,660
Lease liabilites 2,835,660 2,347,715
Total 6,505,057 2,678,375
19. Other capital reserves
Other capital reserves is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their
remuneration as well as lender warrants. Refer to Note 7 for further details of these programmes.
In addition the reserves is used for the potential shares issued as consideration in a business combination (earn out), see note 25.
The reserves is decreasing upon exercise of warrants and issuance of shares as consideration for the business combination.
Penneo Annual report 2022 87
2022 Vækstfonden (i) Vækstfonden (ii) Vækstfonden (iii) Total
Non-current borrowings (DKK) 300,387 2,451,814 7,947,386 10,699,587
Current borrowings (DKK) 364,468 1,252,315 2,052,614 3,669,397
Total 664,855 3,704,129 10,000,000 14,368,984
2021 Vækstfonden (i) Vækstfonden (ii) Vækstfonden (iii) Total
Non-current borrowings (DKK) 662,862 3,704,129 10,000,000 14,366,991
Current borrowings (DKK) 330,660 0 0 330,660
Total 993,522 3,704,129 10,000,000 14,697,651
Vækstfonden (i) Vækstfonden (ii) Vækstfonden (iii)
Last scheduled repayment July 2024 July 2025 January 2027
Exit obligation (maximized DKK) 0 800,000 0
Performance obligation (maximized DKK) 0 400,000 0
Dividend limitation agreement Yes Yes Yes
Warrants granted No No Yes
Debt to credit institutions
Penneo has signed a dividend limitation agreement, which entails that the Company is not entitled to propose a resolution to pay dividends without the consent of Vækstfonden.
The dividend limitation agreement applies until all current and future loans are fully repaid. The last scheduled repayment fall due on January 4, 2027.
Vækstfonden has the right to demand the loans to be repaid if a change of control in Penneo should happen. A “change of control” is dened as a direct or indirect transfer of
more than 25% of the shares or the rights of the shares in the Company, or in any other way the transfer of a controlling majority.
Vækstfonden (ii) is entitled to a one-time performance bonus of DKK 400,000.00 if the Company reaches a performance target within a nancial year during the loan period. The
performance target is reached when the Company’s accumulated earnings measured at EBITDA-level exceeds DKK 15,000,000.00 in accordance with the latest audited report.
Penneo Annual report 2022 88
21. Provisions
2022
Decommissioning
DKK
As at 1 January 442,790
Unwinding of discount and changes in the discount rate 11,512
As at 31 December 454,302
2021
Decommissioning
DKK
As at 1 January 432,267
Unwinding of discount and changes in the discount rate 10,523
As at 31 December 442,790
A provision has been recognised for decommissioning costs associated with an oce lease. Penneo is committed to restore the site at the end of the lease term.
Cash ow eect of the decommissioning is expected in 2027.
Further, Vækstfonden (ii) is entitled to a one-time exit bonus of DKK 800,000, if an exit transaction occurs, and the Company has experienced an added (equity) value in the
period between July 2019 and the date of the exit transaction. An “exit transaction” is dened as a direct or indirect transfer of more than 25% of the shares or the rights of the
shares in the Company, or in any other way the transfer of a controlling majority. For the avoidance of doubt, capital increases by the issuance of new shares does not constitute
an exit transaction.
Warrants have been granted as a part of the loan agreement with Vækstfonden(iii). Refer to Note 7 for further details regarding the warrants.
Penneo Annual report 2022 89
22. Financial risks
Capital Management
Penneo manages its capital to ensure that it will be
able to continue as a going concern while maximising
the growth in ARR through the optimisation of the
debt and equity balances. The capital structure of
Penneo consists of net debt and equity. Management
reviews the capital structure continually to consider if
the current capital structure is in accordance with the
company and shareholders’ interests. In March 2022,
the company made a capital increase of net 59M DKK
in order to continue to invest in continued ARR growth
and optimise the capital structure.
Financial risk management
Due to the nature of its operations, investments, and
nancing, Penneo is exposed to a number of nancial
risks. It is company policy to operate with a low risk
prole, so that currency risk, interest rate risk and
credit risk only occur in commercial relations.
The scope and nature of the nancial instruments
appear from the income statement and statement of
nancial position in accordance with the accounting
policies applied. Provided below is information about
factors that may inuence amounts, time of payment, or
reliability of future payments, where such information
is not provided directly in the nancial statements. This
note addresses only nancial risks directly related to
Penneo’s nancial instruments.
Credit risk
Credit risk is the risk that a counterparty will not meet
its obligations towards Penneo, leading to a nancial
loss. Penneo is exposed to credit risk primarily related
to its trade and other receivables. Penneo are using
a provision matrix to write o expected credit loss,
in addition to a specic provision towards high risk
customers or when there is a court order of bankruptcy
from the counterparty. The maximum exposure to
credit risk at the reporting date is the carrying value
of trade receivables in note 16. Penneo does not hold
collateral as security.
Penneo is also exposed to credit risk in regards to
bankdeposits. In order to limit Penneo’s counterparty
risk, deposits are only made in well-reputed banks.
Foreign currency risk
Foreign currency risk is the risk that the fair value or
future cash ows of an exposure will uctuate because
of changes in foreign exchange rates. Penneo issues
invoices in local currency, which is why the incoming
cash ow reects dierent currencies. Penneo has in
all aspects only transactions in DKK, NOK, SEK and EUR.
The material costs and investments are primarily paid
in DKK and EUR, which is why there is low risk on that
part.
However management established bank accounts for
NOK and EUR currencies in 2021, to reduce costs and
lower risk in the short term. Penneo is avoiding the
small uctations since both incoming and outgoing
payments are paid directly in the currency.
Liquidity risk
Penneo ensures sucient liquidity resources by
liquidity management. Overall Penneo has a policy
to only allocate cash ow that the company has at its
disposal dened as cash, cash equivalents, forecasted
cash ow and credit facility.
After each month, the previous month is nancially
closed and reviewed with an updated running 12
month forecast. The forecast is adjusted to meet
Penneo’s policy through adapting it to the hiring plan.
Each quarter, an updated 12 month cash ow forecast
is reviewed and approved by the Board of Directors.
At 31 December 2022, Penneo’s cash and cash
equivalents amounted to DKK 53,161k (2021: DKK
25,416k). The cash reserves including the current credit
facility at DKK 5,000k and expected cash ow for 2023
are considered to be adequate to meet the obligations
of Penneo as they fall due.
Penneo Annual report 2022 90
The table below summarises the maturity prole of Penneo’s nancial liabilities based on contractual undiscounted payments:
Year ended 31 December 2022
On
demand
DKK
Less than 6
months
DKK
6 to 12 months
DKK
1 to 5 years
DKK
> 5 years
DKK
Total
DKK
Interest-bearing loans and borrowings 2,372,768 2,372,768 12,101,339 0 16,846,875
Lease liabilities 1,553,928 1,555,948 10,006,221 0 13,116,097
Trade and other payables 704,443 8,926,588 2,442,713 12,073,744
704,443 12,853,284 3,928,716 24,550,273 0 42,036,715
Year ended 31 December 2021
On
demand
DKK
Less than 6
months
DKK
6 to 12 months
DKK
1 to 5 years
DKK
> 5 years
DKK
Total
DKK
Interest-bearing loans and borrowings 208,800 208,800 16,145,287 701,589 17,264,475
Lease liabilities 1,342,746 1,314,518 11,073,256 736,087 14,466,607
Trade and other payables 304,398 8,604,387 2,384,316 11,293,101
304,398 10,155,933 1,523,318 29,602,859 1,437,676 43,024,183
Financial liabilities:
Penneo Annual report 2022 91
Financial assets measured at amortised cost
2022
DKK
2021
DKK
Deposits 1,439,174 1,288,942
Trade receivables 19,980,670 11,830,821
Other recelvables 1,585 22,325
Current Cash 53,161,291 25,415,797
Total 74,582,721 38,557,885
Financial liabilities measured at amortised cost
Interest bearing loan 14,368,984 14,697,652
Lease liabilities 12,461,760 13,560,555
Trade payables 2,691,826 4,487,375
Other payables 9,381,918 9,629,502
Total 38,904,488 42,375,084
Financial instruments:
Interest rate risk
Interest rate risk arises in relation to interest-bearing assets and liabilities. Penneo’s interest-bearing debt to Vækstfonden of DKK 14,369k as per 31 December 2022 (2021: DKK
14,698k) is subject to a variable rate of interest based on a 3-month CIBOR plus a premium. If market interest rates increased by one percentage point, the interest rate sensitivity
as calculated based on the loan balance to credit institutions as per end of 2022 would lead to a yearly increase in interest expenses of DKK 0,14 million. A corresponding decrease
in market interest rates would have the opposite impact.
Penneo’s bank deposit at Danske Bank of DKK 53,161k as per 31 December 2022 (2021: DKK 25,416k) is subject to a variable rate of interest based on Danske Banks calculations
including, among other things, the interest rates of Nationalbanken as well as competitive and business considerations. If the interest rate decreased by one percentage point,
the interest rate sensitivity as calculated based on the bank deposit as per end of 2022 would lead to a yearly increase in interest expenses of DKK 0,53 million. A corresponding
increase in interest rates would have the opposite impact.
Fair value of nancial assets measured at amortised cost
Since Penneo’s nancial instruments measured at amortised cost are either short-term and/ or exposed to oating interest rates, Management has assessed that the carrying
amount is a reasonable approximation of fair value.
Penneo Annual report 2022 92
23. Liabilities arising from nancing activities
2022
Interest bearing
liabilities
Lease
liabilities
Total
DKK
Liabilities as at 1 January 14,697,652 13,560,555 28,258,207
Loans raised 0 221,842 221,842
Repayments (328,668) (2,752,596) (3,081,264)
Adjustments 0 1,120,216 1,120,216
Other 0 311,743 311,743
Liabilities as at 31 December 14,368,984 12,461,760 26,830,745
2021
Interest bearing
liabilities
Lease
liabilities
Total
DKK
Liabilities as at 1 January 5,070,430 15,564,063 20,634,493
Loans raised 10,000,000 0 10,000,000
Repayments (372,778) (2,368,325) (2,741,103)
Adjustments 0 (1,076) (1,076)
Other 365,893 365,893
Liabilities as at 31 December 14,697,652 13,560,555 28,258,207
24. Guarantees, contingent liabilities and collateral
Contingent liabilities
As security for debt to credit insitutions of DKK 14,369k, a company charge of DKK 15,000k has been provided comprising trade recievables, intangible assets and property, plant
and equipment. The total carrying amount of the comprised assets is DKK 78,088k (2021: 58,106k).
Penneo Annual report 2022 93
Acquisition of business activities from CLA Reply in 2020
On 6 October 2020, Penneo acquired a part of CLA Reply business division concerning Anti Money Laundering (AML) and Know Your Customer (KYC) activities, in exchange for
cash consideration, issue of Penneo shares and earn out in terms of potential Penneo shares.
As a part of the acquisition an earn-out clause was agreed. The earn-out clause was triggered by:
a) Retention of critical business knowledge and know-how from key stakeholders
b) Successful technical integration of Penneo’s and CLA Reply’s platforms
c) Proof of internationalizing CLA Reply’s platform
The fair value of the earn-out was DKK 3,000k and was recognised upon acquisition due to the expectation of fulllment. The triggers were as of 31-12-2021 all fullled which is
why there has been no changes to the recognised amount. The earn out in terms of Penneo shares has been transferred in January 2022.
25. Business combinations
26. Fee to the auditor
2022
DKK
2021
DKK
Statutory audit 545,500 286,100
Other assurance agreements 45,000 45,000
Tax and VAT avisory services 0 42,500
Other services 23,000 193,000
Total fee to the auditor 613,500 566,000
Penneo Annual report 2022 94
27. Related parties
Shareholders Registered oce Basis of inuence*
Andersen Advisory Group A/S Denmark 9.7%
Biostrat Biotech Consulting ApS Denmark 7.2%
ARBEJDSMARKEDETS TILLAEGSPENSION Denmark 6.8%
Clausen Online ApS Denmark 6.3%
Flora IT ApS Denmark 5.7%
* None of the shareholders have control or signicant inuence over the company
Other related parties
Other related parties of Penneo A/S with signicant inuence comprise the Board of Directors and Executive Board and their related parties. There where no other related parties
identied.
There has been no related party transactions other than normal remuneration of the Board of Directors and Executive Board which are disclosed as part of note 6.
From the balance sheet date and until today, no matters, which would inuence the evaluation of the annual report has occured.
28. Events after the reporting period
Learn more on www.penneo.com
Penneo Annual report 2022 95