The LEGO Group
Annual Report 2021
CVR: 54 56 25 19

Content
04 	 Letter from the CEO
05 	 2021 Performance Snapshot
06 	 Strategic Overview
09 	 2021 Sustainability Highlights
10 	 2021 Financial Review
12 	 Financial Highlights of the LEGO Group
13 	 Board of Directors and Management
Management’s 
Review
71 	 Management’s Statement
72 	 Independent Auditor’s Report
Management’s 
Statement and 
Auditor’s Report
Parent Company 
Financial Statements
58	 Income Statement
59	 Balance Sheet
60	 Statement of Changes in Equity
61	
Notes
15 	 Income Statement
15 	 Statement of Comprehensive Income
16 	 Balance Sheet
17 	 Statement of Changes in Equity
18 	 Statement of Cash Flow
19 	 Notes
Consolidated 
Financial Statements
2 Management’s Review

Management’s Review
Management’s Review
Management’s Review
Our ambition is to bring the 
power of LEGO® play to even 
more children around the world.
3 Management’s Review

Letter from the CEO
As I look back over 2021, I am grateful for 
what the LEGO Group was able to achieve. 
Our passionate and committed team of 
more than 24,000 employees navigated 
the ongoing uncertainty of the COVID-19 
pandemic and worked tirelessly to meet 
extraordinary demand for our products. 
Their efforts led to our strong financial 
performance and allowed us to reach more 
children with LEGO® play.
I am also grateful for our fans. During the 
year, thousands of children contacted us to 
share their LEGO experiences. It gives such 
strong purpose to our work when we see 
first-hand the pride, skill, and excitement, 
that comes with creating and sharing a 
LEGO build!
Investing in long-term growth
The progress we made in advancing strate­
gic investments will fuel growth now, and 
for generations to come. Investments in 
product innovation, retail experiences, 
digitalisation, and sustainability will keep 
our brand relevant and create opportunities 
for more children to benefit from play. 
Our 2021 portfolio was the largest and 
most diverse ever. We saw strong perfor-
mances from our homegrown themes such 
as LEGO NINJAGO which celebrated its 10th 
anniversary, and licensed themes such as 
LEGO Super Mario™ and LEGO Star Wars™. 
We also welcomed adults with a range of 
challenging builds which brought families 
together and inspired fans of all ages.  
Our successful Rebuild the World brand 
campaign further strengthened love for the 
brand, and we announced steps to remove 
harmful gender stereotypes from our 
marke­ting and products so that all builders 
everywhere feel included. 
Innovative retail channels
We continued to welcome visitors back to 
our stores and unveiled a new retail format 
designed to create immersive, memorable 
brand experiences. We continue to see 
value in physical retail stores and opened 
165 LEGO branded stores around the 
world in 2021. Long-term investments in 
e-­commerce continue to pay off, helping 
to drive double-digit growth in online sales 
across our own and partner channels.
 
Expanding global supply chain 
Our long-standing network of factories 
positioned us well to navigate the supply 
challenges that affected all industries. 
Our five manufacturing sites on three 
continents make our supply chain short, 
flexible, and able to meet shifting demand 
in our largest markets. We will continue 
to invest in expanding capacity across our 
manufacturing network to meet long-term 
growth and announced plans to build a 
new operationally carbon neutral factory in 
Vietnam. 
Building a sustainable future brick by brick
Children are increasingly concerned about 
the future of the planet. We are committed 
to giving them a voice and taking action to 
become a more sustainable company. After 
three years of research and development, we 
announced a breakthrough with our proto-
type brick made from recycled PET bottles. 
For COP26 (UN Climate Change Conference 
of the Parties), we met with children to hear 
their ideas and released a set of ten Building 
Instructions for a Better World. 
I am optimistic the planet will be in safe 
hands with today’s builders of tomorrow. 
They inspire us with their creativity, 
resilience, and optimism. And we are 
grateful to be able to inspire and develop 
them in return.
It is this purpose that drives us to continue 
to invest in our future – and the future of 
generations to come. 
Niels B. Christiansen
CEO, the LEGO Group
Our passionate and 
committed team of more 
than 24,000 employees 
navigated the ongoing 
uncertainty of the 
COVID-19 pandemic and 
worked tirelessly to meet 
extraordinary demand for 
our products.
“
4 Management’s Review

Positive impact  
on future generations
million parents reached  
with our digital citizenship 
programme.
We are very pleased with our financial performance in 2021. Revenue, 
operating profit, and consumer sales all grew double digits. Our 
performance was driven by strong demand for our portfolio and the 
benefits of our multi-year investments in e-commerce, product innovation, 
and a global supply chain network.
We are making good progress towards our ambition to have a positive impact on 
future generations by being a more sustainable company and bringing learning 
through play activities to millions of children, families, and local LEGO® communities. 
2021 Performance 
Snapshot
Strategic investments
Environmental & social impact 
Financial performance
27%
55.3
17.0
12.9
Free Cash Flow
94%
Return on Invested Capital
Revenue growth
Operating Profit growth
Building a  
sustainable future
2018
10.7
2019
10.9
2020
12.9
2021
Revenue
Operating Profit
32%
Market share growth  
in largest markets
Digitally-enabled brand 
Global supply chain network
digital hubs in Billund, Copenhagen, 
London & Shanghai.
factories on 3 continents. 
portfolio - largest and most diverse.
branded stores globally, 165 opened in 2021.
Innovating retail
million downloads of digital Building Instructions.
branded stores in China, 95 opened in 2021.
million downloads of LEGO Life app.
branded stores feature new, immersive 
store design.
9.6
340
7.3
70+
4
5
Innovating play 
2021 
832
kg (305,145 lbs) of LEGO bricks 
donated to the LEGO Replay 
programme in 2021.
prototype brick made  
from recycled material.
of the LEGO Group is owned by the 
LEGO Foundation which uses profit 
dividends to give millions of children 
the chance to play and learn.
Top themes
LEGO® City  
LEGO® Technic  
LEGO® Creator Expert 
LEGO® Harry Potter™  
LEGO® Star Wars™
billion  
DKK
billion  
DKK
billion  
DKK
1st operationally carbon neutral factory 
in Vietnam in 2024.
million children reached with  
learning through play activities.
increase in solar panel capacity  
at LEGO factories.
17.0
2018
36.0
2019
39.0
2020
43.7
2021
55.3
1
st
25%
3.5+ 
98% 
138,411
77.5
5 Management’s Review

The LEGO® Super Mario™ 
theme was expanded 
with the introduction 
of the character LEGO 
Luigi™ and a new 
2-player experience. 
Strategic  
Overview
At the LEGO Group, we have a singular 
vision – to be a global force for learning 
through play. 
This guides the decisions we make and the 
work we do. 
We believe that play, and LEGO® play in 
particular, has the power to transform a 
child’s life. From the earliest age, play de-
velops cognitive and physical skills critical 
to help children reach their full potential.  
We believe that if we can reach as many 
children as possible, we can give future 
generations the best opportunity to tackle 
increasingly complex challenges with 
creative solutions. 
But play also has short-term benefits. Dur-
ing periods of lockdown over the past two 
years, families have reported that coming 
together to build and play helps them feel 
less stressed and more connected. And 
this is why we are so passionate about our 
vision. Play is fun and good for you. 
Investing in our future
Over the past three years, we have made 
strategic investments designed to deliver 
growth in the long term. We have innovated 
our portfolio, expanded and evolved our 
retail experiences, increased capacity within 
our global supply chain network, trans-
formed our approach to digital, and made 
our business and products more sustainable. 
We saw the benefits of these investments 
in our 2021 financial performance and be-
lieve they will continue to drive sustainable 
growth in the long term. 
Innovating play 
The LEGO System in Play is, by its very 
nature, innovative. It allows you to build, un-
build and rebuild anything you can imagine. 
Each year our designers are inspired by 
the endless possibilities of the LEGO brick 
to create hundreds of new products which 
inspire and delight builders of all ages and 
interests. In 2021, around half of the port-
folio was made up of new products which 
keep it relevant to shifting consumer trends. 
This was also our largest ever portfolio, and 
existing as well as novelty products care-
fully balanced to appeal to builders of all 
ages and passions - from sports and super 
heroes to animals and the arts.
Seven in ten parents told us they would be happi-
er to let their child play with digital games if they 
also involved physical play.1 This is one reason 
1	 According to the Play Well Study 2020, seven in ten (72%) parents 
would prefer their child to play mostly with​ non-digital games.
6
Management’s Review

we have seen strong success with LEGO 
Super Mario™ which embeds technology into 
the brick characters. In 2021, we expanded 
this successful theme, adding LEGO Luigi™ to 
the universe which for the first time enabled 
brand new 2-player adventures. 
We also expanded our digital LEGO Building 
Instructions that provide a range of building 
suggestions based on elements available in 
a given box. More than 7 million people also 
downloaded the play app LEGO Life, which 
encourages young builders to share their 
creations in a safe digital environment.
Making play more inclusive
We are investing to make our building and 
brand experiences more inclusive for all. We 
want children to be able to see themselves 
represented in what we do and help them 
learn about the diverse world around them 
through play. 
One step towards this is a more inclusive 
marketing approach. In 2021, we began 
working with the Geena Davis Institute on 
Gender in Media and UNICEF to ensure 
that LEGO products and marketing are 
accessible to all and free of gender bias and 
harmful stereotypes.
This approach also includes our adult fans 
and in 2021, we launched the LEGO Every-
one is Awesome set designed to celebrate 
the diversity of our global LEGO community. 
Creating memorable retail experiences
For the past three years, we have invested 
to expand, innovate, and transform the 
experiences we offer our shoppers and our 
retail partners. 
Investments in our e-commerce capabili-
ties helped drive our performance in 2021. 
Over proportional e-commerce sales in 
our own and our partner sites compared 
to con­sumer sales growth, indicates that 
the shift to online sales is set to continue. 
Our technology platforms seamlessly 
supported over a quarter of a billion visits 
to LEGO.com during the year. We will 
accelerate investments in e-commerce 
and digital marketing to reach even 
more shoppers & fans and ensure people 
everywhere have a great digital brand 
experience.
 
We will also accelerate investments in our 
brick and mortar stores. In 2021, together 
with our partners, we opened 165 LEGO 
branded stores around the world, taking 
our global total to 832. This global network 
allows us to reach new builders and to 
inspire them with great instore brand and 
building experiences. This is especially 
important in China, where we now have 
340 branded stores and are able to directly 
connect with the first generation of chil-
dren to enjoy the benefits of LEGO play.
Part of this investment is our new retail 
platform. The new concept is designed 
to make visitors feel they have walked 
into a magical world of bricks filled with 
awe-inspiring builds. Launched in a new 
flagship store in New York City, the concept 
was introduced to more than 70 branded 
stores in 2021. In 2022, we expect to open 
over 150 new branded stores.
Global supply chain network
Our global network of five factories in three 
continents proved its value in 2021. When 
much of the world’s supply was disrupt-
ed due to the pressures of the COVID-19 
pandemic and a capacity shortage, we 
continued to meet demand due to our 
factories being in close proximity to our 
major markets. This offers the flexibility 
to respond to local demand, shortens the 
supply chain, and reduces the time and 
environmental impact of shipping products 
long distances. 
In 2021, we announced a further expan-
sion of this network with a new factory 
in Vietnam. Located near Ho Chi Minh 
City, the site will be our first operationally 
carbon neutral factory, constructed to 
support long-term growth in the region. 
Construction will commence in 2022 with 
production due to start in 2024.
We are also investing to expand capacity 
at existing sites to meet immediate and 
long-term demand in line with growth 
expectations. 
The LEGO System in Play is  
by its very nature innovative. 
It allows you to build, unbuild 
and rebuild anything you  
can imagine.
A new retail store format 
was introduced to create 
an immersive brand 
experience for shoppers 
of all ages.
7 Management’s Review

Investing in a digital future
During the past year, we have stepped up 
significant long-term investments in digital 
infrastructure, engineering capabilities, 
and digital product experiences while 
expand­ing our digital teams in London 
(UK), Shanghai (China), and Billund & 
­Copenhagen ­(Denmark). 
We will accelerate this effort across our 
entire business in 2022 so that children, 
shoppers, partners, and colleagues have 
a fantastic digital experience when they 
engage with the LEGO brand. 
  
Positive impact on the planet & society 
Our sustainability efforts are driven by our 
Planet Promise which is to have a positive 
impact on the planet and society our 
children will inherit.  
In 2021, we revealed a prototype brick 
made from recycled plastic bottles, the cul-
mination of three years’ work by more than 
150 experts who tested over 250 vari­ations 
of PET materials. We have also worked 
to expand the range of bio-based LEGO 
elements made from bio-polyethylene 
(bio-PE), a soft, durable, and flexible plastic 
derived from sugarcane. There are current-
ly around 150 elements made from bio-PE 
and nearly half of our sets are designed to 
contain at least one of these elements.
During the past year, we completed a 
successful trial to replace plastic with 
paper­-based bags in our boxes. We will 
begin phasing in the new packaging in 
2022, keeping us on track to make all pack-
aging more sustainable by 2025. 
By encouraging the donation and reuse 
of LEGO bricks through the LEGO Replay 
programmes in the US and Canada, we 
extended the creative life of approximately 
62 million bricks through 138,411 kg 
(305,145 lbs) of LEGO bricks donated to 
more than 67,000 children in North America 
in 2021. Since its launch in 2019 in the US, 
and in 2020 in Canada, this brings the 
total number of bricks donated to the 
programme to 296,072 kg (652,727 lbs), 
a milestone exceeding 100,000 children 
reached in North America.
Reaching children 
Despite the continued COVID-19 pandemic, 
we reached more than 3.5 million children 
via learning through play initiatives. We 
also supported children spending more 
time online and at home, through an ex-
panded suite of activities to help families 
talk about digital child safety. 
Through our Build the Change programme, 
we challenged children to voice their hopes 
and dreams for the future which resulted in 
ten Building Instructions for a Better World 
handed to leaders at COP26 in Glasgow.  
You can read more about our sustainability 
efforts in our 2021 Sustainability Progress 
Report or visit: LEGO.com/AboutUs/Sus-
tainability.
Motivated and engaged colleagues 
We have a team of more than 24,000 
employees working across 39 countries. 
Each year we track levels of engagement to 
ensure we are providing a great workplace 
experience. We are pleased to report that 
despite the continued disruption, levels 
of motivation and satisfaction were out-
standing as our colleagues feel valued and 
believe they have opportunities to develop.
We continued to introduce Parental Leave 
globally, which guarantees at least 26 weeks 
of fully paid leave to the primary caregiver 
and 8 weeks’ paid leave to the secondary 
caregiver. Our commitment to developing 
future generations begins with our employ-
ees’ children, which is why we believe the 
opportunity to be present during the earli-
est stages of development is so important. 
Finally, in recognition of colleagues’ out-
standing efforts to bring play to more 
children around the world, meet the strong 
demand characterising 2021 and the 
company’s extraordinary strong financial 
performance, the owner family provided 
additional days off during the holiday peri-
od for colleagues to spend with family and 
friends at the end of a busy and extraordi-
nary year. In addition, an extra performance 
bonus will be paid out in April 2022 via the 
existing Performance Management Plan.
 
We are extremely grateful for our colleagues 
who continue to work so incredibly hard to 
inspire millions of children around the world.
A prototype brick made 
from recycled PET 
bottles is an important 
step towards using more 
sustainable materials for 
our products.
8
Management’s Review

We have set ourselves ambitious environmental and social 
targets to create a better world for future generations.  
We are proud of the progress we made in 2021.
Visit LEGO.com/Sustainability/Reporting,  
to find out more about our sustainability journey.
2021 Sustainability 
Highlights
Environment 
People
Children
Building sustainable 
businesses together
Caring for colleagues
Working with our suppliers to reduce 
the carbon footprint in our supply chain.
80 suppliers committed to the CDP 
carbon disclosure system.
Protect the rights and wellbeing of every-
one involved in making LEGO products. 
’Top in class’ motivation and satisfaction 
among employees in the LEGO Group 
People Pulse against external benchmark.1
All suppliers must sign our Responsible 
Business Principles which legally requires 
them to provide a safe, fair, and healthy 
workplace for all employees.
Sustainable 
materials
Sustainable 
packaging
Keep LEGO 
bricks in play
Make products from more 
sustainable sources by 2030.
1st prototype LEGO brick made 
from recycled material.
Almost 50% of products de-
signed to contain elements of 
bio-PE.
Make packaging more sustainable 
by 2025.
Single-use plastic removed from  
LEGO.com orders in Europe.
Introduced paper-based Pick-a-Brick 
cups in LEGO Brand Retail stores.
Paper-based bags in LEGO boxes will 
be phased in from mid-2022.
Give consumers an easy and 
safe way to pass along LEGO 
bricks they are not using.
138,411 kg (305,145 lbs) of 
LEGO bricks donated via the  
LEGO Replay programme.
67,000+ children in the US and 
Canada benefited from dona-
tions.
Science-
based target 
Reduce absolute carbon  
emissions by 37% by 2032  
compared to 2019 baseline.
100% balanced by renewable 
energy. 
98% increase in solar panel 
capacity at LEGO® factories 
­compared to 2020.
70% reduction of landfilled waste 
compared to 2020. 
Achieved an ‘A’ leadership status in 
2021 CDP climate change rating.
Help children learn about our 
planet through play and provide 
a platform so they can partici-
pate in the climate debate.
At COP26, launched ten Building 
Instructions for a Better World, 
which reflected input from 6,000 
children around the world. 
Almost 170,000 children reached 
through Build the Change ac-
tivities designed to inspire and 
educate children on sustainability.
1   Ennova Employee Engagement Survey 2021
Amplify  
children’s voices 
Help families build online 
child safety & wellbeing skills 
and empower children to 
become good digital citizens.
77.5 million parents reached 
with LEGO digital citizenship 
programme.
Expanded our range of tools 
and activities for families, 
such as Build & Talk, to help 
address online safety and 
cyberbullying issues.
Digital safety 
and wellbeing 
Learning 
through play
Reach 8 million children a 
year with learning through 
play programmes & activities 
by 2022.
3.5+ million children reached  
in 2021 despite COVID-19 
pandemic-related limitations. 
1.5 million LEGO sets  
donated through Build  
to Give programme.
Play 
for all
Make products and marketing ac-
cessible to all and free of gender 
bias and harmful stereotypes.
Partnered with the Geena Davies 
Institute on Gender in Media who 
audits and consults on select LEGO 
product and marketing assets.
Worked with UNICEF to launch an 
internal LEGO D&I Playbook to in-
form communication and product 
development going forward.
Partner 
for play 
Give children in rural  
China an opportunity  
to learn through play.
Partnerships with the LEGO 
Foundation and UNICEF  
announced in 2021 expected 
to directly benefit 20,000 
children aged 0 to 6 years 
and around 40,000 care­givers 
through access to family 
support services and play 
materials.  
 OUR AMBITIONS & PROGRESS  
9 Management’s Review

Summary 
Overall, 2021 was a very satisfactory 
year for the LEGO Group. The company 
achieved double-digit revenue, consumer 
sales, and profit growth while making 
investments in strategic initiatives designed 
to drive long-term growth. 
The LEGO Group’s main activity is the 
development, production, marketing, and 
sale of play materials. It operates in the 
traditional toy market, which grew 9% in 
2021.1 Consumer sales grew 22% which out-
paced the industry’s growth and was driven 
by a strong and diverse portfolio, resilient 
global supply chain network, strong retailer 
partnerships both online and instore, and a 
robust e-commerce platform. 
Revenue 
Revenue for the full year increased by 27% to 
DKK 55.3 billion compared to DKK 43.7 billion 
in 2020. Excluding the impact of foreign 
currency exchange rates, revenue for the full 
year increased by 28% against 2020. Con-
sumer sales grew double digits in all market 
groups, ahead of 2021 plans which antici-
pated single-digit growth. Revenue grew as 
a result of extraordinarily strong consumer 
demand for the company’s portfolio which 
appealed to builders of all ages and interests.
Expenses, Tax & Profit 
In 2021, the LEGO Group made significant 
investments in initiatives designed to 
deliver long-term growth. This included 
portfolio innovation, investing in brand 
awareness, expanding the number of LEGO 
branded stores globally, upgrading the 
LEGO.com e-commerce platform, increas-
ing capacity in its global supply chain 
network, and building presence in newer 
markets such as China. 
Operating profit grew 32% to DKK 17.0 billion 
in 2021 compared to DKK 12.9 billion in 2020. 
The operating margin was 30.8% in 2021 
against 29.6% in 2020. Net financials created 
an expense of DKK 39 million compared to 
DKK 412 million in 2020. This resulted in a 
profit before income tax of DKK 17.0 billion 
against DKK 12.5 billion the prior year. 
Income tax expense amounted to DKK 3.7 
billion compared to DKK 2.6 billion in the 
prior year and the effective tax rate was 
21.9% against 20.7% in 2020 which is in line 
with expectations. 
Net profit was DKK 13.3 billion in 2021 
against DKK 9.9 billion in 2020. This was 
above expectations and driven by the same 
reasons as mentioned under “Revenue”.
Cash flow and equity 
The LEGO Group’s assets increased to DKK 
48.0 billion in 2021 compared to DKK 37.2 
billion in 2020. Cash flow from operating 
activities was DKK 16.0 billion, against DKK 
13.4 billion in 2020. After recognition of the 
profit and distribution of dividends, the 
LEGO Group’s equity was DKK 29.1 billion 
up from DKK 23.5 billion in 2020. Return on 
equity for the LEGO Group was 50.4% in 
2021 against 43.4% in 2020.
Investments 
In 2021, the LEGO Group increased invest-
ments in property, plant, and equipment to 
DKK 3.1 billion up from DKK 1.8 billion prior 
year. This included increasing processing ca-
pacity in factories in Nyíregyháza (Hungary), 
Monterrey (Mexico), and Jiaxing (China).
2021 Financial Review
1	 The NPD Group / Retail Tracking Service / G13 – YTD Dec 2021
10 Management’s Review

Sustainability Progress Report (COP report) 
describes how it is working to adhere to the 
Compact. Pursuant to sections 99a and 99b 
of the Danish Financial Statements Act, the 
2021 Sustainability Progress Report consti-
tutes the statutory statement of corporate 
social responsibility. This also includes 
information about the required quantitative 
targets for the under-represented gender 
on the Board of Directors. The 2021 Sustain-
ability Progress Report is available at: LEGO.
com/AboutUs/Sustainability/Reporting.
Risks and governance 
The LEGO Group has no significant trade 
receivables risk concentrated in specific 
countries but has some single significant 
trade debtors in the Americas. The LEGO 
Group has fixed procedures for determining 
the granting of credit. The LEGO Group’s 
risk relating to trade receivables is consid-
ered to be moderate. For more information, 
see note 3.4. 
The majority of the LEGO Group’s sales are 
in foreign currency, and the risks relating to 
currency are described in note 4.6. 
The LEGO Group is committed to comply-
ing with all applicable laws and regulations 
in the countries in which it operates.
The LEGO Group’s global Tax Strategy is de-
fined by the Board of Directors and reviewed 
on an annual basis to ensure it remains 
compliant. More information about the tax 
strategy and the total tax contribution can 
be found in the 2021 Sustainability Progress 
Report and at LEGO.com/AboutUs.
The LEGO Group is committed to handling 
data responsibly. In 2021, the company have 
worked with data ethics around four key prin-
ciples which are that data must be used within 
the company in a positive, fair, clear, and 
responsible way. This has resulted in a written 
set of data ethic principles. The next steps will 
be to make these principles operational and 
applicable to the organisation. A dedicated 
team will collaborate with relevant internal 
stakeholders to develop a simple and useful 
framework that can be applied across projects.
The LEGO Group’s principles regarding data 
ethics can be found at LEGO.com/AboutUs/
Policies-and-reporting/Policies. 
Events after the reporting date 
No events have occurred after the balance 
sheet date that would influence the evalua-
tion of the Annual Report. 
Outlook 
The LEGO Group expects single-digit growth 
in 2022, ahead of the global toy market. This 
is expected to be achieved through contin-
ued focus on product innovation and appeal 
and growth in established and newer mar-
kets. The LEGO Group will continue to invest 
in areas such as digitalisation, sustainability, 
retail channels, and innovation which will 
drive long-term sustainable growth.
Research and development (R&D) 
Innovation is critical to the company’s 
success and in 2021, new products make 
up around 50% of the portfolio. The LEGO 
Group invests in innovating core play 
themes as well as exploring new play 
patterns. Digitalisation is influencing how 
children play and the LEGO Group has 
stepped up investments to understand the 
intersection between digital and physical 
play and create new products to meet 
these changing needs. R&D activities 
include developing new technologies 
to enable learning through play; trend 
spotting; anthropological studies; and 
collaborating with educational institutions 
to deepen our understanding of children’s 
development. 
Intellectual capital resources 
The number of employees at the end of 
2021 was 24,484 compared to 20,468 at the 
end of 2020. Employees participate in the 
LEGO Group’s Performance Management 
Programme. The programme is designed to 
ensure all colleagues work towards achiev-
ing the LEGO Group’s short and long-term 
ambitions. Employees have targets that 
are aligned to the Group’s overall targets 
and are awarded a bonus based on perfor-
mance versus target.
Responsible business conduct 
The LEGO Group aims to have a positive 
impact on its stakeholders and its local 
communities. In 2003, the LEGO Group 
signed the United Nations Global Compact 
to demonstrate its support of human rights, 
labour standards, anti-corruption, and 
the environment. The LEGO Group’s 2021 
Innovation is critical to the 
success of the LEGO Group 
and each year new products 
make up around 50% of  
the portfolio.
11
Management’s Review

The Financial Highlights for 2021, 2020 and 2019 are 
affected by the implementation of IFRS 16 Leases 
as from 1 January 2019. Comparison figures for 2018 
and 2017 have not been restated due to the use of 
the modified retrospective approach.
The comparison figures for the financial ratio, Re-
turn on invested capital (ROIC), have been restated 
in 2020 and 2019 to reflect a classification change 
in the balance sheet, see note 1.1, as well as includ-
ing goodwill in the calculation.
Financial ratios are calculated in accor­dance with  
the guidelines from the Danish Society of Financial 
Analysts. Definitions are disclosed in note 1.1.
Parentheses denote negative figures.
Financial  
Highlights of 
the LEGO Group
(mDKK)
2021
2020
2019
2018
2017
Income Statement
Revenue
55,294
43,656
38,544
36,391
34,995
Expenses
(38,250)
(30,744)
(27,707)
(25,617)
(24,636)
Operating profit
17,044
12,912
10,837
10,774
10,359
Financial income and expenses
(39)
(412)
(85)
(264)
(158)
Profit before income tax
17,005
12,500
10,752
10,510
10,201
Net profit for the year
13,285
9,916
8,306
8,076
7,806
Balance Sheet
Total assets
47,991
37,202
34,946
31,485
29,911
Equity
29,138
23,547
22,183
21,753
20,714
Liabilities
18,853
13,655
12,763
9,732
9,197
Statement of Cash Flow
Cash flow from operating activities
16,048
13,382
9,557
9,847
10,691
Purchase of property, plant, equipment and intangible assets
(3,159)
(1,891)
(2,173)
(1,502)
(1,529)
Free cash flow
12,892
11,498
7,395
8,355
9,168
Employees
Average number (full-time)
20,198
17,431
16,112
15,050
16,480
Headcount end of year
24,484
20,468
18,800
17,385
17,534
Other financials (in %)
Revenue growth in constant currency
28
16
4
7
(7)
Financial ratios (in %)
Gross margin
69.6
69.7
68.4
67.8
67.1
Operating margin
30.8
29.6
28.1
29.6
29.6
Net profit margin
24.0
22.7
21.5
22.2
22.3
Return on equity (ROE)
50.4
43.4
37.8
38.0
38.3
Return on invested capital (ROIC)
94.0
74.1
68.4
78.9
72.3
Equity ratio
60.7
63.3
63.5
69.1
69.3
12
Management’s Review

Vice Chairman 
Søren Thorup  
Sørensen
Søren Thorup Sørensen has been a 
member of the Board since 2010 and 
currently serves as Deputy Chairman 
and Chairman of the Audit Committee. 
He is the Chief Executive Officer of 
KIRKBI A/S. Søren is also a member 
of the Board of Directors of Merlin 
Entertainments Limited (where he also 
is Chairman of the audit committee), 
Landis + Gyr AG, ISS World Services A/S, 
Ole Kirk’s Fond, Koldingvej 2 Billund A/S, 
Boston Holding A/S (where he is Chair-
man of the Board of Directors) and six 
fully owned subsidiaries of KIRKBI A/S. 
Thomas Kirk 
Kristiansen
Thomas Kirk Kristiansen represents 
the fourth generation of the owner 
family and became the Chairman of 
the Board in February 2020. He was 
previously Deputy Chairman from May 
2016 to February 2020 and joined the 
Board in 2007. Thomas is also Deputy 
Chairman of LEGO Brand Group, mem-
ber of the Board of KIRKBI A/S and one 
fully owned subsidiary, Chairman of 
the Board of LEGO Foundation and a 
member of the Executive Management 
team of Kirk & Kirk Holding ApS with 
management roles in four subsidiaries.
Chairman
Niels B. Christiansen
President and Chief Executive Officer
Jesper Andersen
Chief Financial Officer
Atul Bhardwaj
Chief Digital & Technology Officer
Colette Burke
Chief Commercial Officer
Julia Goldin
Chief Product & Marketing Officer
Carsten Rasmussen
Chief Operations Officer
Loren I. Shuster
Chief People Officer & Head of Corporate Affairs
Board of Directors
and Management
Executive
Leadership Team
Eva  
Berneke
Eva Berneke has been a member of 
the Board since 2011 and is currently a 
member of the Audit Committee. Eva is 
the Chief Executive Officer of Eutelsat, 
one of the world’s leading satellite 
operators. She is also a member of the 
Board of Directors of Vestas and École 
Polytechnique Paris.
Jan Thorsgaard 
Nielsen
Jan Thorsgaard Nielsen has been 
a member of the Board since 2013 
and is currently member of the Audit 
Committee. He is the Chief Investment 
Officer of A.P. Møller Holding. Jan also 
holds positions as Chairman of the 
Board of KK Wind Solutions A/S and 
Nissens Cooling Solutions, Deputy 
Chairman of the Board of Danske Bank 
A/S and Faerch A/S and member of 
the Board of APMH Invest A/S. 
Fiona 
Dawson
Fiona Dawson has been a member 
of the Board since August 2020. She 
worked for family-owned Mars, In-
corporated for over thirty years and 
retired in July 2021 to focus on her 
Board Portfolio. Fiona joined the Board 
of Marks and Spencer in May 2021 and 
Kerry Foods in January 2022 and sits on 
a number of advisory Boards including 
as member of the Board of the Trinity 
Business School in Dublin and The 
Social Mobility Foundation. 
Jørgen Vig  
Knudstorp
Jørgen Vig Knudstorp has been a 
member of the Board since 2017 and 
has previously served as Chairman 
from May 2017 to February 2020. 
Jørgen is the Executive Chairman of 
LEGO Brand Group. He also holds 
positions as member of the Board of 
Starbucks and member of the Board of 
Merlin Entertainments Limited. Jørgen 
joined the LEGO Group in 2001, where 
he served as President and CEO from 
2004 to 2016.
Anne 
Sweeney
Anne Sweeney has been a member of 
the Board since April 2020. She is also 
a member of the Board of Directors 
of Netflix, the Board of Trustees of the 
Mayo Clinic, Board of Trustees of J. Paul 
Getty Trust, and a Deans Distinguished 
Fellow at the Harvard University 
Graduate School of Education. Anne 
previously served as co-chair of Disney 
Media, President of the Disney/ABC 
Television Group, which includes The 
Walt Disney Company’s global enter-
tainment and news television proper-
ties, owned television stations group.
13 Management’s Review

Consolidated  
Financial Statements
Financial Statements
Financial Statements
14 Consolidated Financial Statements

Income Statement
Statement of  
Comprehensive Income
1 January – 31 December
1 January – 31 December
(mDKK)
Note
2021
2020
Revenue
2.1
55,294
43,656
Production costs
2.2
(16,783)
(13,244)
Gross profit
38,511
30,412
Sales and distribution expenses 
2.2
(16,446)
(13,540)
Administrative and IT expenses
2.2
(4,005)
(3,023)
Other operating expenses
2.2
(1,016)
(937)
Operating profit
17,044
12,912
Financial income
4.1
108
7
Financial expenses
4.1
(147)
(419)
Profit before income tax
17,005
12,500
Income tax expense
2.6
(3,720)
(2,584)
Net profit for the year
13,285
9,916
(mDKK)
2021
2020
Profit for the year
13,285
9,916
Items to be reclassified to the income statement, when specific 
conditions are met:
Change in market value of cash flow hedges 
(524)
246
Reclassification of cash flow hedges from equity 
to be recognised as part of:
Revenue in the income statement
235
(96)
Production costs in the income statement
(14)
(9)
Tax on cash flow hedges
67
(31)
Currency translation differences
532
(653)
Items not to be reclassified to the income statement:
Remeasurements of defined benefit plans
14
(11)
Tax on remeasurements of defined benefit plans
(4)
2
Total comprehensive income for the year
13,591
9,364
15 Consolidated Financial Statements

Balance Sheet
at 31 December
(mDKK)
Note
2021
2020
Intangible assets
3.1
406
443
Property, plant and equipment
3.2
14,191
12,099
Right-of-use assets
4.4
4,679
3,067
Other receivables
4.5
70
63
Deferred tax assets
2.6
999
789
Total non-current assets
20,345
16,461
Inventories
3.3
3,509
2,948
Trade receivables
3.4, 4.5 
8,409
6,590
Other receivables
4.5
1,345
891
Prepayments
475
299
Income tax receivables
123
373
Loans to related parties
4.5, 5.5
12,748
8,463
Cash at banks
4.5
1,037
1,177
Total current assets
27,646
20,741
Total assets
47,991
37,202
(mDKK)
Note
2021
2020
Share capital
4.2
20
20
Reserve for hedge accounting
(161)
75
Reserve for currency translation
(538)
(1,070)
Retained earnings
29,817
24,522
Total equity
29,138
23,547
Borrowings
4.3, 4.5
127
137
Lease liabilities
4.4, 4.5
4,038
2,519
Deferred tax liabilities
2.6
29
111
Employee benefit obligations
3.5
146
223
Provisions
3.6
153
85
Deferred revenue
3.7
6
23
Other debt
3.8, 4.5
148
86
Total non-current liabilities
4,647
3,184
Borrowings
4.3, 4.5
10
10
Lease liabilities
4.4, 4.5
714
581
Trade payables
4.5
5,116
2,947
Income tax liabilities
427
541
Provisions
3.6
67
75
Deferred revenue
3.7
501
360
Other debt
3.8, 4.5
7,371
5,957
Total current liabilities
14,206
10,471
Total liabilities
18,853
13,655
Total equity and liabilities
47,991
37,202
16 Consolidated Financial Statements

Statement of Changes in Equity
1 January – 31 December
§	 Accounting policies
Reserve for hedge accounting
The reserve for hedge accounting consists of 
the effective portion of gains and losses on 
hedging instruments designated as cash flow 
hedges.
Reserve for currency translation
The reserve for currency translation consists 
of exchange rate differences that occur when 
translating the foreign subsidiaries’ financial 
statements from their functional currency into 
the LEGO Group’s presentation currency. On 
disposal of the net investment, the reserve for 
currency translation of that foreign subsidiary is 
recognised in the income statement. Reduction 
of a net investment in a foreign operation which 
does not result in loss of control is not treated 
as a disposal.
2021 (mDKK)
Share capital
Reserve for 
hedge accounting
Reserve for 
currency translation
Retained earnings
Total equity
Balance at 1 January
20
75
(1,070)
24,522
23,547
Profit for the year
 –
 -
 -
13,285
13,285
Comprehensive income/(expenses) for the year
 -
(236)
532
10
306
Dividend paid relating to prior year
 -
 -
 -
(8,000)
(8,000)
Balance at 31 December
20
(161)
(538)
29,817
29,138
2020 (mDKK)
Share capital
Reserve for
hedge accounting
Reserve for 
currency translation
Retained earnings
Total equity
Balance at 1 January
20
(35)
(417)
22,615
22,183
Profit for the year
–
–
–
9,916
9,916
Comprehensive income/(expenses) for the year
–
110
(653)
(9)
(552)
Dividend paid relating to prior year
–
–
–
(8,000)
(8,000)
Balance at 31 December
20
75
(1,070)
24,522
23,547
17 Consolidated Financial Statements

Statement of Cash Flow
1 January – 31 December
Cash flow used in investing activities includes 
the purchase and sale of intangible and tangible 
assets. 
Cash flow used in financing activities includes 
the obtaining and repayment of long-term lia-
bilities, short-term bank loans and the payment 
of dividends to shareholders. Payment of lease 
liabilities is included under financing activities 
and the related interest is included as a financial 
item under operating activities.
Cash at banks comprises cash that readily can 
be converted into cash.
§	 Accounting policies
The statement of cash flow has been prepared 
using the indirect method, and shows the 
consolidated cash flow from operating, invest-
ing and financing activities for the year and the 
consolidated cash at banks at the beginning 
and end of the year. The statement of cash flow 
cannot be derived directly from the balance 
sheet and income statement.
Cash flow from operating activities is specified 
as the profit before income tax for the year 
adjusted for operating items without cash flow 
effect, changes in the working capital (such 
as trade payables, trade receivables, prepaid 
costs, etc.), payments relating to financial items 
and income tax paid.
(mDKK)
Note
2021
2020
Profit before income tax
17,005
12,500
Adjustments for non-cash items
5.4
2,044
2,763
Change in working capital
5.4
927
888
Interest received
4.1
11
7
Interest paid
4.1
(147)
(119)
Income tax paid
(3,792)
(2,657)
Cash flow from operating activities
16,048
13,382
Purchases of intangible assets
3.1
(45)
(51)
Purchases of property, plant and equipment 
3.2
(3,114)
(1,840)
Proceeds from sale of property, plant and equipment
3
7
Cash flow used in investing activities
(3,156)
(1,884)
Repayments of borrowings
(10)
(10)
Payment of lease liabilities
(697)
(606)
Repayments from related parties
5.5
14,469
12,388
Payments to related parties
5.5
(18,754)
(14,975)
Dividends paid to shareholders
4.2
(8,000)
(8,000)
Cash flow used in financing activities
(12,992)
(11,203)
Total cash flow
(100)
295
Cash at banks at 1 January
1,177
858
Cash flow for the year
(100)
295
Effect of exchange (losses)/gains
(40)
24
Cash at banks at 31 December
1,037
1,177
18 Consolidated Financial Statements

Notes
Notes
Notes
20	 1.1 	 Basis for preparation of the  
Consolidated Financial Statements
21	 1.2 	 Changes in accounting policies
21	 1.3 	 Significant accounting estimates 
and judgements
28 	 3.1 	 Intangible assets
30 	 3.2 	Property, plant and equipment
32 	 3.3 	Inventories
33	 3.4 	Trade receivables
35 	 3.5 	Employee benefit obligations
36 	 3.6 	Provisions
37 	 3.7 	 Deferred revenue
38 	 3.8 	Other debt
Basis of
preparation
Results  
for the year
Operating assets
and liabilities
39 	 4.2 	Share capital
39 	 4.3 	Borrowings
40 	 4.4 	Leases
42 	 4.5 	Financial assets and liabilities
44 	 4.6 	Financial risks
48 	 4.7 	 Derivative financial instruments
51 	 5.1 	 Fees to independent auditor
51 	 5.2 	Remuneration of  
Group Management
52 	 5.3 	Contingent assets, contingent  
liabilities and other obligations
53 	 5.4 	Cash flow specifications
54 	 5.5 	Related parties
55 	 5.6 	Events occurring after  
the reporting period
56 	 5.7 	 Group structure
Capital structure
and financing
Other
disclosures
22	 2.1 	 Revenue
23	 2.2 	Expenses by nature
24	 2.3 	Employee costs
25	 2.4 	Depreciation, amortisation  
and impairment
25 	 2.5 	Research and development 
expenses
26 	 2.6 	Tax
19
Consolidated Financial Statements

Free cash flow
Cash flow from operating activities -  
Cash flow used in investing activities
Gross margin
Gross profit x 100
Revenue
Operating margin
Operating profit (EBIT) x 100
Revenue
Net profit margin
Net profit for the year x 100
Revenue
Return on equity (ROE)
Net profit for the year x 100
Average equity
Return on invested capital (ROIC)
Operating profit (EBIT) x 100
Average invested capital
Equity ratio
Equity x 100
Total liabilities and equity
Note 1.1
This section introduces the LEGO Group’s 
accounting policies and significant accounting 
estimates and judgements. A more detailed de-
scription of accounting policies and significant 
accounting estimates and judgements related 
to specific reported amounts is disclosed in the 
respective notes.
General Accounting Policies
The Consolidated Financial Statements of the 
LEGO Group have been prepared in accor­
dance with International Financial Reporting 
Stan­dards (IFRS) as adopted by the EU and 
additional requirements of the Danish Financial 
Statements Act applying to enterprises of 
reporting class C (large).
The Consolidated Financial Statements are 
presented in Danish kroner (DKK), which is the 
functional currency of the Parent Company. All 
amounts are rounded to nearest million DKK, 
unless otherwise stated.
The Consolidated Financial Statements have 
been prepared in accordance with the historical 
cost convention, with the exception of finan-
cial assets and financial liabilities, which are 
measured at fair value as disclosed in Note 4.5 
Financial assets and liabilities.
As described in note 1.2, accounting policies 
are unchanged from last year.
Change in classification in the income statement 
Comparative figures in the income statement 
have been restated to match this year’s presen-
tation. The adjustment of comparative figures 
have no effect on operating profit.
Change in classification in the balance sheet
Comparative figures in the balance sheet have 
been restated to match this year’s presentation. 
The adjustment of comparative figures have no 
effect on total assets.
Change in classification in the notes
Comparative figures in the notes have been 
restated to match this year’s restatements in the 
income statement and balance sheet. Additional 
off-balance notes have been restated.
The adjustment of comparative figures is not a 
change in accounting policies.
Consolidation practice
The Consolidated Financial Statements comprise 
of LEGO A/S (Parent Company) and entities 
controlled by LEGO A/S. Control is achieved 
when the LEGO Group is exposed or has the 
rights to variable returns from its involvement of 
the investee and can affect those returns through 
its power over the investee. LEGO A/S and these 
entities are referred to as the LEGO Group.
Subsidiaries are fully consolidated from the date 
where control is transferred to the LEGO Group. 
They are deconsolidated from the date where 
control ceases.
Intercompany transactions, balances and unre-
alised gains on transactions between entities 
in the LEGO Group are eliminated. Unrealised 
losses are also eliminated unless the transaction 
provides evidence of impairment of the asset 
transferred. Subsidiaries’ accounting policies 
have been changed, where necessary, to ensure 
consistency with the policies adopted by the 
LEGO Group.
Foreign currency translation
Functional currency
Items included in the financial statements 
of each of the LEGO Group’s entities are 
measured using the currency of the primary 
economic environment in which the entity 
operates.
Transactions and balances
Foreign currency transactions are translated 
into the presentation currency using the 
exchange rates prevailing at the date of the 
transactions. Foreign exchange gains and 
losses resulting from the settlement of such 
transactions and from the translation at balance 
sheet date exchange rates of monetary assets 
and liabilities denominated in foreign curren-
cies are recognised in the income statement, 
except when deferred in equity as reserve for 
exchange rate adjustments.
Group entities
The results and financial position of subsidiaries 
that have a functional currency different from 
the presentation currency in the LEGO Group, 
are translated into the presentation currency as 
follows:
•	 Assets and liabilities for each subsidiary are 
translated into DKK at the closing rate at the 
balance sheet date. 
•	 Income and expenses for each subsidiary are 
translated into DKK at the exchange rate at 
transaction date. An average exchange rate 
per month is used as equivalent to the extent 
it does not deviate significantly from the actual  
exchange rate at transaction date. 
•	 Differences deriving from translation of the 
foreign subsidiaries’ opening equity to the 
exchange rates prevailing at the balance 
sheet date, and differences from the transla-
tion of the income statements of the foreign 
subsidiaries from average exchange rates 
to balance sheet date exchange rates are 
recognised in Statement of Comprehensive 
Income and classified as a separate reserve 
for exchange rate adjustments under equity.
Financial highlights
Revenue growth in constant currency is calcu-
lated as revenue growth adjusted for exchange 
rate translation effects.
Basis for preparation of the
Consolidated Financial Statements
Financial ratios have been calculated in ac-
cordance with the guidelines from the Danish 
Society of Financial Analysts.
20 Consolidated Financial Statements

Note 1.2
All amended standards and interpretations 
issued by IASB and endorsed by the EU effec-
tive as of 1 January 2021 have been adopted by 
the LEGO Group. None of the newly adopted or 
amended standards impacted the Consolidated 
Financial Statements.
None of the amendments that are issued, 
but not yet effective, are likely to impact the 
Consolidated Financial Statements.
Changes in accounting policies
Note 1.3
When preparing the Consolidated Financial 
Statements it is necessary that Management 
makes a number of accounting estimates and 
judgements that affect the reported amounts of 
assets and liabilities and the reported amounts 
of revenue and expenses.
The estimates and underlying assumptions are 
reviewed on an ongoing basis.
The key accounting estimates identified are 
those that have a significant risk of resulting 
in a material adjustment. The estimates are 
expectations of the future, or other sources of 
estimation uncertainty, based on assumptions. 
These assumptions are to the extent possible 
supported by historical trends or reasonable 
expectations.
Management believes that the estimates are the 
most likely outcome of future events. Manage-
ment bases the estimates on historical experience 
and other assumptions that Management assess-
es are reasonable under the given circumstances. 
Actual results may differ from these estimates 
under different assumptions or conditions.
Accounting judgements are made when apply-
ing accounting policies. Key accounting judge-
ments are the judgements made, that can have 
significant impact on the amounts recognised in 
the Financial Statements.
Further information on the areas that involve a 
high degree of estimation and judgement and 
are material to the financial statements, can be 
obtained in the respective notes.
Significant accounting  
estimates and judgements
Note
Key accounting estimates and judgements
2.6 Tax
Tax provisions
3.2 Property, plant and equipment
Estimate of residual value and useful life of assets
3.3 Inventories
Estimate in calculation of actual cost and provision
3.4 Trade receivables
Estimate level of expected losses
21 Consolidated Financial Statements

Note 2.1
§	 Accounting policies
Revenue recognition
Revenue is recognised when the LEGO Group 
fulfils its contractual performance obligations 
towards the buyer, and the transaction is relat-
ed to the main activities.
Revenue from sale of goods
Revenue from sale of goods is recognised when 
control over the goods has been transferred to 
the buyer. This condition is usually met by the 
time the products are delivered to the cus­
tomer and legal title transfers.
Revenue is measured at the transaction price to 
which the LEGO Group expects to be entitled. 
Transaction price includes variable amounts 
(rebates, sales incentives and provisions for re-
turned products etc.), thus the variable amount 
is recognised as revenue only when it is highly 
probable that a significant reversal will not occur.
Provisions and accruals for rebates, sales incen-
tives and return of products are made in the 
period in which the related sales are recorded. 
Historical data are readily available and reliable 
and are used for estimating the amount of the 
reduction in sales.
Sale of goods that results in award credits 
under the LEGO Group’s consumer loyalty 
programme is accounted for by allocating the 
transaction price between the goods supplied 
and the award credits granted based on a 
relative stand-alone selling price. The loyalty 
programme is a separate performance obli-
gation, as the loyalty programme points are 
considered a material right derived from the 
contract entered at the time of purchase. Rev­
enue from the award credits is recognised when 
the points are redeemed or when they expire.
Revenue from royalty and licence agreements
Licence fees are recognised as revenue when 
the performance obligations in the relevant 
agreements have been satisfied.  
Revenue is measured at the transaction price to 
which the LEGO Group expects to be entitled. 
Revenue from licence agreements comprises 
both agreements where performance obligations 
are satisfied over time such as sales-based agree-
ments which most of the LEGO Group’s licence 
revenue is related to, and agreements where 
performance obligations are satisfied at a point 
in time, which would normally be upon delivery.
Licence revenue is recognised based on a clas-
sification of either a “right to access” or “right 
to use” as described below.
Right to access 
Revenue derived from the LEGO® trademark is 
generally considered a “right to access” and 
performance obligations related to licence 
income of this nature are satisfied over time. 
Licences with a “right to access” comprise 
income from console games, movies, mobile 
and tablet platforms, and outbound licensing 
business generating sales-based royalty fees for 
intellectual properties related to content like 
stories, style guides and prints.
Revenue based on a “right to access” is recog­
nised based on the licensee’s actual sales or 
forecasts, which in all material aspects cor-
responds with the value-add to the licence part-
ner. The process is therefore assessed to give 
a faithful depiction of the transfer of licence 
income.
Right to use  
All other licence revenues are per definition 
performance obligations satisfied at a point 
in time (“right to use”). Revenue is recog-
nised at a point in time, where the customer 
directly uses and obtains substantially all the 
benefits from the licence, at the point when 
control is transferred to the licensee. Revenue 
recognised at a point in time will primarily be 
related to media content produced by the 
LEGO Group. Media content has significant 
standalone functionality and the LEGO Group 
does not affect the intellectual properties after 
the right to use occurs. Revenue is recognised 
when the control of the content has been 
transferred to the customer.
Revenue
(mDKK)
2021
2020
Sale of goods
54,844
43,262
Licence income
450
394
Total revenue
55,294
43,656
Sale of goods per region:
Americas
22,031
16,345
Europe, Middle East & Africa
22,906
19,060
Asia & Pacific
9,907
7,857
54,844
43,262
22 Consolidated Financial Statements

Note 2.2
§	 Accounting policies
Expenses by nature discloses information about 
expenses arising from the main inputs that are 
consumed in order to accomplish the LEGO 
Group’s activities, such as expenses related to 
materials and consumables, employees, depre-
ciation and amortisation, licence and royalty. 
Information about how costs are allocated to 
functions within the LEGO Group’s business is 
disclosed in the income statement.
Expenses by function allocates and combines 
expenses according to the activity from which 
the cost arises, as follows:
Production costs 
Production costs include direct and indirect 
costs related to production including move-
ments in volumes on inventory and related 
inventory re-evaluation. Direct costs comprise 
raw materials, consumables, trademark royalty 
and direct labour costs. Indirect costs comprise 
other costs related to production of goods 
including depreciation, amortisation and impair-
ment on production related material and other 
supply chain related costs.
Sales and distribution expenses
Sales and distribution expenses comprise 
expenses related to sales and distribution staff, 
advertising and marketing expenses, write-
down of receivables as well as depreciation, 
amortisation and impairment, and government 
grants. Grants are recognised when there is 
reasonable certainty that they will be received.
Administrative and IT expenses
Administrative and IT expenses comprise 
expenses for IT, Facility, Human Resources, 
Finance, Legal and Management, including 
depreciation, amortisation and impairment.
Other operating expenses
Other operating expenses include research and 
development expenses.
For more information, see note 2.5 Research 
and development expenses.
Expenses by nature
(mDKK)
Note
2021
2020
Raw materials and consumables used
7,567
5,775
Employee costs
2.3
10,198
8,470
Depreciation, amortisation and impairment
2.4
2,298
2,114
Licence and royalty expenses
4,481
3,308
Other external expenses
13,706
11,077
Total expenses
38,250
30,744
Included in the income statement under the following headings:
Production costs
16,783
13,244
Sales and distribution expenses
16,446
13,540
Administrative and IT expenses
4,005
3,023
Other operating expenses
1,016
937
38,250
30,744
23 Consolidated Financial Statements

Note 2.3
Employee costs
§	 Accounting policies
Wages and salaries, social security costs, leave 
and sick leave, bonuses and non-monetary em-
ployee benefits are recognised in the financial 
year in which the services are rendered. Re-
structuring costs comprise termination indem-
nities to employees and are recognised in the 
financial year where the decision is made, and a 
detailed plan created raising a valid expectation 
for those affected was announced. Whenever 
the LEGO Group provides long-term employee 
benefits, the costs are accrued to match the 
rendering of the services by the employees.
Benefit costs and obligations towards employ-
ees are specified in note 3.5 Employee benefit 
obligations.
(mDKK)
Note
2021
2020
Wages and salaries
9,194
7,657
Restructuring costs
48
19
Pension costs
3.5
301
257
Social security and other costs
721
598
Employee costs before capitalised to assets
10,264
8,531
Capitalised to assets
(66)
(61)
Total employee costs
10,198
8,470
Included in the income statement under the following headings:
Production costs
2,909
2,326
Sales and distribution expenses
4,260
3,516
Administrative and IT expenses
2,335
1,924
Other operating expenses
694
704
10,198
8,470
Average number of full-time employees
20,198
17,431
Headcount end of year
24,484
20,468
24 Consolidated Financial Statements

Note 2.4
Note 2.5
§	 Accounting policies
Research and development expenses are 
expenses that do not meet the criteria for asset 
recognition. These are expensed as incurred 
and include costs like wages, salaries and 
consumables.
Research and development expenses are pre-
sented under other operating expenses in note 
2.2 Expense by nature.
For more information, see note 3.1 Intangible 
assets.
Depreciation, amortisation
and impairment
Research and  
development expenses
§	 Accounting policies
Depreciation and amortisation 
Depreciation and amortisation are recognised in 
the income statement within production costs, 
sales and distribution, administrative and IT 
expenses and other operating expenses.
Impairment 
Any impairment losses are expensed in the 
income statement together with depreciation 
and amortisation.
For more information, see note 3.1 Intangible 
assets, 3.2 Property, plant and equipment and 
4.4 Leases.
(mDKK)
Note
2021
2020
Intangible assets, amortisation
3.1
77
96
Property, plant and equipment, depreciation
3.2
1,436
1,344
Property, plant and equipment, impairment
3.2
46
–
Right-of-use assets, depreciation
4.4
739
674
Total depreciation, amortisation and impairment
2,298
2,114
Included in the income statement under the following headings:
Production costs
1,389
1,276
Sales and distribution expenses
604
582
Administrative and IT expenses
282
236
Other operating expenses
23
20
2,298
2,114
(mDKK)
2021
2020
Research and development expenses
1,016
937
Total research and development expenses
1,016
937
25 Consolidated Financial Statements

Note 2.6
Tax
(mDKK)
2021
2020
Income tax charge for the year
3,756
 2,702 
Other tax for the year
69
 37 
Deferred tax change for the year
(192)
 (153)
Deferred tax impact of change in tax rates
3
 (5)
Adjustment to income tax for prior years
98
 16 
Adjustment to deferred tax for prior years
(14)
 (13)
Total income tax expense
3,720
 2,584 
Reconciliation of tax
Profit before tax
17,005
 12,500 
Corporate tax rate in Denmark
22.0%
22.0%
Higher/lower tax rate in subsidiaries
(1.3%)
(2.1%)
Permanent differences
(0.3%)
(0.3%)
Adjustment to deferred tax
0.1%
0.0%
Adjustment to tax for prior years
0.5%
0.0%
Corporate withholding taxes
0.3%
0.1%
Other corporate taxes
0.1%
0.2%
Other
0.5%
0.8%
Effective tax rate
21.9%
20.7%
(mDKK)
2021
2020
Deferred tax, net at 1 January
678
 570 
Charged to the income statement 
206
 166 
Charged to comprehensive income
63
 (29)
Change in tax rates recognised in the income statement
(3)
 5 
Exchange rate adjustments
26
 (34)
Deferred tax, net at 31 December
970
678
Deferred tax is recognised in the balance sheet as follows:
Deferred tax assets
999
 789 
Deferred tax liabilities
(29)
 (111)
970
 678 
Deferred tax relates to the following:
Non-current assets
(137)
 (140)
Inventories
394
 233 
Receivables
161
 109 
Provisions
149
 257 
Other liabilities
403
 219 
970
 678 
26 Consolidated Financial Statements

Note 2.6 (continued)
Tax
Deferred tax
Deferred tax liabilities and deferred tax assets 
are measured according to balance sheet 
liabilities method, which means that all tempo-
rary differences between the carrying amount 
and the tax base of assets and liabilities are 
recognised in the balance sheet as deferred tax 
liabilities and deferred tax assets.
Deferred tax reflects the effect of any temporary 
differences. To the extent calculated deferred 
tax is positive, this is recognised in the balance 
sheet as a deferred tax asset at the expected 
realisable value. Deferred tax assets are recog-
nised only to the extent that it is probable that 
future taxable profit will be available against 
which the temporary differences can be utilised.
Deferred tax is measured according to income 
tax rules and the tax rates expected to be in 
force on elimination of temporary differ­ences. 
The change in deferred tax as a result of 
­changes in tax rates is recognised in the income 
statement. Changes to deferred tax on items 
in comprehensive income are recognised in 
comprehensive income.
§	 Accounting policies
Tax for the year
The tax expenses for the year comprise income 
tax and deferred tax for the year, including 
changes as a result of a change in the tax rate. 
Companies belonging to the LEGO Group are 
liable to pay tax in the country they are located 
in. Income tax includes both Danish and foreign 
income tax.
The income and deferred taxes are recognised 
in the income statement, except to the extent 
that they relate to items recognised in compre-
hensive income. In this case, the tax is recog-
nised in comprehensive income.
All Danish subsidiaries are taxed jointly. The 
current Danish corporation tax is distributed 
among the jointly taxed companies in relation 
to their taxable income (full distribution with 
refunds regarding tax-related deficits).
Any changes in deferred tax due to changes in 
tax rates are recognised in the income statement.
Other tax comprises corporate withholding tax 
and other corporate taxes.
Tax assets arising from tax loss carry-forwards 
are capitalised based on an assessment of 
whether they can be utilised in the future.
  Significant accounting estimates  
Significant judgement and estimates are used 
when determining the worldwide accrual for 
income taxes, deferred income tax assets and 
liabilities, and provisions for uncertain tax 
positions.  
In order to identify uncertain tax treatments 
impacting the LEGO Group on a continuous 
basis, known and appropriate risks that poten-
tially could have a financial impact on the LEGO 
Group are assessed. The identified risks are re-
viewed and updated on a continuous basis. The 
LEGO Group updates and refines the estimated 
exposure based on new legislation, guidance or 
status of an audit.
The possible outcome of uncertain tax positions 
are measured based on management’s estimate 
of the amount required to settle the obligation 
and recognised in deferred tax or income tax, 
depending on the tax position.
27 Consolidated Financial Statements

Note 3.1
Intangible assets
2021 (mDKK)
Development
projects
in progress
Software
Licences,
patents and
other rights
Goodwill
Total
Cost at 1 January
35
641
224
284
1,184
Additions
32
13
 -
 -
45
Disposals
 -
(73)
(209)
 -
(282)
Transfers
(16)
16
 -
 -
 -
Exchange rate adjustments
 -
3
15
 -
18
Cost at 31 December
51
600
30
284
965
Amortisation and impairment 
losses at 1 January
 -
522
219
 -
741
Amortisation for the year
 -
76
1
–
77
Disposals
 -
(66)
(209)
 -
(275)
Exchange rate adjustments
 -
1
15
 -
16
Amortisation and impairment 
losses at 31 December
 -
533
26
 -
559
Carrying amount 
at 31 December
51
67
4
284
406
2020 (mDKK)
Development
projects
in progress
Software
Licences,
patents and
other rights
Goodwill
Total
Cost at 1 January
13
616
243
284
1,156
Additions
26
24
1
–
51
Disposals
–
(1)
(1)
–
(2)
Transfers
(4)
4
–
–
–
Exchange rate adjustments
–
(2)
(19)
–
(21)
Cost at 31 December
35
641
224
284
1,184
Amortisation and impairment 
losses at 1 January
–
431
237
–
668
Amortisation for the year
–
95
1
–
96
Disposals
–
(1)
(1)
–
(2)
Exchange rate adjustments
–
(3)
(18)
–
(21)
Amortisation and impairment 
losses at 31 December
–
522
219
–
741
Carrying amount  
at 31 December
35
119
5
284
443
28 Consolidated Financial Statements

Note 3.1 (continued)
Intangible assets
§	 Accounting policies
Development projects in progress 
Development projects in progress are currently 
running projects, primarily within software de-
velopment. Development projects in progress 
cover non-finalised projects at the balance 
sheet date.
Development projects in progress that are 
clearly defined and identifiable, where the 
technical feasibility, sufficient resources and a 
potential future market or utilisation opportunity 
within the company is demonstrated, and where 
the company intends to produce, market or use 
the project, are recognised as intangible assets 
provided that the cost can be measured reliably 
and that there is sufficient assurance that future 
earnings or the net selling price can cover cost 
of sales, selling and distribution costs, admin­
i­strative expenses and development costs. 
Other development costs are recognised in the 
income statement as incurred.
Recognised development costs are measured at 
cost less impairment. Cost includes direct and 
indirect expenses directly attributable to the 
asset until the asset is ready for use as intended.
Development projects in progress are annually 
tested for impairment. Development projects 
in progress are written down to the lower of 
recoverable amount and carrying amount.
Software
Software comprises mainly internally developed 
software for the purpose of supporting business 
operations.
Software is capitalised based on the costs 
incurred.
Software is amortised on a straight-line basis 
over the expected useful life, which is estimat-
ed at 3-5 years. Residual value is set at DKK 0. 
Useful lives are reviewed and adjusted at each 
balance sheet date, if appropriate.
Software is tested for impairment in case of in-
dications hereof and written down to the lower 
of recoverable amount and carrying amount.
Licences, patents and other rights
Licences comprise external purchases.
Licences, patents and other rights are capi­
talised based on the costs incurred.
Licences, patents and other rights are amor-
tised over the shorter of their estimated useful 
lives and the contractual duration, which is usu-
ally 5-10 years. Residual value is set at DKK 0. 
Useful lives are reviewed and adjusted at each 
balance sheet date, if appropriate.
Goodwill
Goodwill acquired in business combinations 
is recognised and measured as the difference 
between the total of the fair value of the con-
sideration transferred and the fair value of the 
identifiable net assets of the date of acquisition.
Goodwill is not amortised but is reviewed for 
impairment at least annually. For the purpose of 
impairment testing, goodwill is allocated to the 
lowest possible cash‑generating unit expected 
to benefit from the synergies of the combina-
tion. Cash‑generating units to which goodwill 
has been allocated are tested for impairment 
annually, or more frequently when there is an 
indication that the unit may be impaired. If the 
recoverable amount of the cash‑generating unit 
is less than the carrying amount of the unit, the 
impairment loss is allocated first to reduce the 
carrying amount of any goodwill allocated to 
the unit and then to the other assets of the unit 
pro rata on the basis of the carrying amount 
of each asset in the unit. An impairment loss 
recognised for goodwill is not reversed in a 
subsequent period. 
29 Consolidated Financial Statements

Note 3.2
Property, plant and equipment
2021 (mDKK)
Land, 
buildings and 
installations
Plant and 
machinery
Other fixtures 
and fittings, 
tools and 
equipment
Fixed 
assets under 
construction
Total
Cost at 1 January
7,840
9,746
3,135
1,271
21,992
Additions
79
1,197
166
1,672
3,114
Disposals
(10)
(351)
(49)
 -
(410)
Transfers
233
369
31
(633)
-
Exchange rate adjustments
339
157
167
52
715
Cost at 31 December
8,481
11,118
3,450
2,362
25,411
Depreciation and impairment 
losses at 1 January
1,678
6,724
1,491
 -
9,893
Depreciation for the year
227
986
223
 -
1,436
Impairment losses for the year
37
9
 -
 -
46
Disposals
(2)
(341)
(48)
 -
(391)
Exchange rate adjustments
59
93
84
 -
236
Depreciation and impairment 
losses at 31 December
1,999
7,471
1,750
 -
11,220
Carrying amount  
at 31 December
6,482
3,647
1,700
2,362
14,191
2020 (mDKK)
Land, 
buildings and 
installations
Plant and 
machinery
Other fixtures 
and fittings, 
tools and 
equipment
Fixed 
assets under 
construction
Total
Cost at 1 January
7,734
9,156
3,183
1,352
21,425
Additions
166
641
174
859
1,840
Disposals
(7)
(168)
(98)
(1)
(274)
Transfers
472
275
99
(846)
–
Exchange rate adjustments
(525)
(158)
(223)
(93)
(999)
Cost at 31 December
7,840
9,746
3,135
1,271
21,992
Depreciation and impairment 
losses at 1 January
1,552
6,058
1,459
–
9,069
Depreciation for the year
209
916
219
–
1,344
Disposals
(5)
(161)
(95)
–
(261)
Transfers
–
(3)
3
–
–
Exchange rate adjustments
(78)
(86)
(95)
–
(259)
Depreciation and impairment 
losses at 31 December
1,678
6,724
1,491
–
9,893
Carrying amount  
at 31 December
6,162
3,022
1,644
1,271
12,099
30 Consolidated Financial Statements

Note 3.2 (continued)
Property, plant and equipment
A commitment regarding the purchase of prop-
erty, plant and equipment of DKK 3,437 million 
exists at 31 December 2021 (DKK 1,189 million 
at 31 December 2020). The obligation has a 
maturity of maximum 5 years.
  Significant accounting estimates  
Assessment of residual value and useful life of 
property, plant and equipment requires esti-
mates. When performing estimates for residual 
value and useful life Management uses historical 
experience and other relevant factors, such as 
expectation of future use of the tangible assets. 
It is Management’s assessment that the esti-
mates are reasonable.
§	 Accounting policies
Land and buildings comprise mainly factories, 
warehouses and offices. Plant and machinery 
are mainly moulds, moulding machines, pro-
cessing and packing equipment. Whilst other 
fixtures, fittings, tools and equipment mainly 
comprise high bay warehouse equipment, lease 
hold improvements, measuring and testing 
equipment, furniture and IT hardware.
Property, plant and equipment are measured 
at cost, less subsequent depreciation and 
impairment, except for land, which is measured 
at cost less impairment.
Cost
Cost comprises acquisition price and expenses 
directly related to the acquisition until the time 
when the asset is ready for use as intended.
The cost of self-constructed assets comprises 
direct expenses such as wage consumption, 
materials and indirect expenses to the extent, 
that it directly supports the asset construction.
Subsequent expenditure for improvements and 
maintenance is allocated to the asset cost price 
if future economic benefits are likely. General 
repair and maintenance is expensed in the 
income statement as incurred.
Government grants for investments are offset 
against the cost of the assets to which the 
grants relate.
Depreciation and impairment 
Depreciation is calculated on a straight-line 
basis to allocate the cost of each asset to its 
residual value. Property, plant and equipment 
is tested for impairment when impairment 
indicators exist. Management performs an 
annual assessment of the assets’ future use 
eg. in relation to changes in building, prod-
uct and production setup or restructuring.       
Depreciation is calculated based on the follow-
ing estimated useful lives:
Land is not depreciated.
Depreciation commences when the asset is 
acquired or when the asset is ready for use as 
intended.
Useful life of the asset and residual values are 
reviewed and adjusted at each balance sheet 
date, if appropriate.
Gains and losses on disposals are determined 
by comparing the proceeds with the carrying 
amount and are recognised in the income 
statement.
Buildings 	
40 years
High bay warehouses 	
40 years
Installations 	
5-20 years
Plant and machinery 	
5-15 years
Moulds 	
2 years
Furniture, fittings	
3-10 years 
and equipment 	
31 Consolidated Financial Statements

Note 3.3
Inventories
Inventories recognised as an expense during 
the year ending 31 December 2021 amounted to 
DKK 10,978 million (DKK 8,690 million in 2020). 
These were included in production costs in the 
income statement.
Write-down of inventories is recognised in 
production costs as a cost of DKK 75 million 
(DKK 32 million in 2020 as an income).
  Significant accounting estimates  
The carrying amount of inventories is based on 
a number of assumptions including assumptions 
on future events. Inventories are adjusted to re-
flect the net realisable value, comprising actual 
cost less provisions for obsolescence.
Actual cost
The LEGO Group applies a standard cost model 
that is defined by estimated production capac-
ity. Cost and capacity can vary during the year 
and therefore adjustments are made to reflect 
the actual cost of inventories:
•	 Adjustments for Indirect Production Costs 
(IPC), covering productions costs other than 
direct materials and based on assumptions 
on cost elements and activity level compared 
to actual cost and activity level. 
•	 Adjustments for Purchase Price Variance 
(PPV) and Production Variance (PV) for 
variances arising from difference in purchase 
prices and production variance (measured in 
efficiency) mainly related to direct materials.
The cost adjustments are reviewed regularly to 
ensure that relevant assumptions are incorpo-
rated correctly.
Write down
When the net realisable value is lower than cost, 
inventory items are impaired and measured at 
net realisable value. The calculation of write 
down is based on the LEGO Group’s internal 
impairment policy, which in turn is evaluated 
based on a combination of assumptions on 
demand planning and Product Life Cycle stages. 
§	 Accounting policies
Inventories are measured at the lower of cost 
and net realisable value. Cost is accounted for 
on a first-in, first-out basis (FIFO). Cost compris-
es direct materials, direct labour and an appro-
priate proportion of variable and fixed overhead 
expenditure (indirect production costs), the 
latter being allocated on the basis of normal 
production capacity. Costs of purchased inven-
tory are determined after deducting rebates and 
discounts. Net realisable value is the estimated 
selling price in the ordinary course of business 
less the estimated costs of completion and the 
estimated costs necessary to make the sale.
(mDKK)
2021
2020
Raw materials
346
194
Work in progress
1,493
1,124
Finished goods
1,670
1,630
Total inventories
3,509
2,948
32 Consolidated Financial Statements

All trade receivables fall due within one year. 
Due to the short-term nature of the trade 
receivables, their carrying amount is considered 
to be approximately the same as their fair value.
Note 3.4
Trade receivables
The age distribution of trade receivables is as follows:
(mDKK)
2021
2020
Trade receivables, gross
9,237
7,646
Loss allowance for bad debts at 1 January
(1,056)
(840)
Change in loss allowance for the year
108
(293)
Realised losses for the year
156
23
Exchange rate adjustments
(36)
54
Loss allowance for bad debts at 31 December
(828)
(1,056)
Trade receivables, net
8,409
6,590
2021 (mDKK)
Gross carrying amount
Loss allowance for bad debts
Net carrying amount
Not overdue
8,194
(418)
7,776
0-60 days overdue
546
(15)
531
61-120 days overdue
40
(6)
34
121-180 days overdue
28
(7)
21
More than 180 days overdue
429
(382)
47
9,237
(828)
8,409
2020 (mDKK)
Gross carrying amount
Loss allowance for bad debts
Net carrying amount
Not overdue
6,626
(569)
6,057
0-60 days overdue
523
(20)
503
61-120 days overdue
22
(8)
14
121-180 days overdue
12
(11)
1
More than 180 days overdue
463
(448)
15
7,646
(1,056)
6,590
33 Consolidated Financial Statements

The LEGO Group has no significant trade 
receivables concentrated in specific countries, 
but has some single significant trade debtors 
in Americas. The LEGO Group has fixed proce-
dures for determining the LEGO Group’s grant-
ing of credit. The LEGO Group’s risk relating to 
trade receivables is considered to be moderate. 
For more information, see note 4.6 Financial 
risks.
  Significant accounting estimates  
The loss allowance for bad debts represents 
the Management’s estimate of the probable 
credit loss in trade receivables resulting from 
the deterioration of the financial position of 
a customer, causing it to be unable to make 
required payments.
The loss allowance model for lifetime expected 
credit losses is a probability-based measure-
ment based on historical credit loss experience 
Note 3.4 (continued)
Trade receivables
combined with macroeconomic factors, such 
as country risk, affecting the credit risk and is 
based on a combination of credit risk charac-
teristics for the customers within geography, 
creditworthiness, and payment history.
When assessing the adequacy of loss allowance 
for bad debts, Management also takes into ac-
count changes in payments terms, patterns and 
expected changes in risk, in particular related 
to changes observed in the retail landscape, 
not least during COVID-19 pandemic, where the 
LEGO Group experienced weakened financial 
strength in some groups of customers which in-
creased the risk and uncertainty of receivables.
§	 Accounting policies
Trade receivables are initially recognised at 
fair value equal to the transaction price, and 
subsequently measured at amortised cost less 
allowance for lifetime expected credit losses.
Trade receivables are written off when all possi-
ble options have been exhausted and there are 
no reasonable expectations of recovery.
The LEGO Group applies the IFRS 9 simplified 
approach to measure expected credit loss and 
a lifetime expected loss allowance for all trade 
receivables.
Exposure to credit risk on trade receivables is 
guided by the LEGO Group’s policy on manag-
ing credit risk. Credit limits are set based on the 
customer’s financial position and current market 
conditions.
34 Consolidated Financial Statements

Note 3.5
Employee benefit obligations
Defined contribution plans
The LEGO Group operates a number of defined 
contribution plans throughout the world. Defined 
contribution plans are fixed contributions paid 
to external pension funds after which the LEGO 
Group has no further legal nor constructive obli-
gation towards current or past employees. DKK 
291 million (DKK 240 million in 2020) have been 
recognised in the income statement as pension 
costs relating to defined contribution plans.
Defined benefit plans
In a few countries, the LEGO Group operates de-
fined benefit plans. The majority of the defined 
benefit plans in the LEGO Group includes em-
ployees in Germany and Mexico. Defined benefit 
plans are obligations to pay a specific benefit 
upon retirement or in health related situations 
etc. The LEGO Group bears the risk and uncer-
tainty as regards sufficient funds being available 
in the future. The LEGO Group does not enter 
into new defined benefit pension plans unless it 
is a legal requirement. In the LEGO Group a net 
obligation of DKK 146 million (DKK 223 million in 
2020) has been recognised relating to the LEGO 
Group’s obligations towards current or past 
employees concerning defined benefit plans. 
The obligation is calculated after deduction of 
the plan assets. DKK 60 million (DKK 22 million 
in 2020 as a cost) have been recognised in the 
income statement as income and DKK 14 million 
(DKK 11 million in 2020 as a cost) have been 
recognised in comprehensive income as income.
(mDKK)
2021
2020
The amounts recognised in the balance sheet are calculated as follows:
Present value of funded obligations
(170)
(178)
Fair value of plan assets
164
170
(6)
(8)
Present value of unfunded obligations
(140)
(215)
Net liability recognised in the balance sheet
(146)
(223)
Of which included as part of the liabilities
(146)
(223)
The change in present value of defined benefit obligations for the year is as follows:
Present value at 1 January 
(393)
(374)
Benefit costs relating to current year
(9)
(17)
Benefit costs relating to prior year
75
–
Interest expenses
(8)
(8)
Remeasurement gains/(losses)
26
(26)
Benefits paid
14
13
Exchange rate adjustments
(15)
19
Present value at 31 December
(310)
(393)
The change in fair value of plan assets for the year is as follows:
Plan assets at 1 January
170
165
Interest income
2
3
Remeasurement gains/(losses)
(12)
15
Employer contributions
3
2
Benefits paid
(8)
(8)
Exchange rate adjustments
9
(7)
Plan assets at 31 December
164
170
Movements in the net liability recognised in the balance sheet are as follows:
Net liability at 1 January
(223)
(209)
Total income/(expenses) charged to the income statement
60
(22)
Total income/(expenses) charged to comprehensive income
14
(11)
Contributions paid
9
7
Exchange rate adjustments
(6)
12
Net liability at 31 December
(146)
(223)
The actual return on plan assets amounts to
(10)
18
35 Consolidated Financial Statements

The actuarial assumptions applied in the calcu-
lations vary from country to country due to local 
Provisions for restructuring obligations relate pri-
marily to close-down and movement of activities.
Other provisions consist of various types of provi-
sions, primarily provisions for retirement obligations 
regarding leased premises and one offs. Rental of 
premises normally has a lease period of 3-10 years.
§	 Accounting policies
Provisions are recognised when the LEGO Group 
identifies legal or constructive obligation as a 
result of past events and it is probable that it will 
lead to an outflow of resources that can be reliably 
estimated. In this connection, the LEGO Group 
makes the estimate based upon an evaluation of 
the individual most likely outcome of the cases. In 
cases where a reliable estimate cannot be made, 
these are disclosed as contingent liabilities.
Provisions for restructuring expenses are only 
recognised when the decision is announced 
before the balance sheet date and a detailed 
plan is created raising a valid expectation for 
those affected. Provisions are not made for future 
operating losses.
Provisions are measured at the present value of the 
estimated obligation at the balance sheet date.
Note 3.5 (continued)
Note 3.6
Employee benefit obligations
Provisions
economic and social conditions. The ranges of 
assumptions applied are specified as follows:
§	 Accounting policies
Defined contribution plans
Contributions/costs are recognised in the in-
come statement in the year the related employ-
ee services are rendered.
Defined benefit plans
Net obligations in respect of defined benefit 
plans are calculated separately for each plan 
by estimating the amount of future benefits 
that employees have earned in return for their 
service in the current and prior periods; that 
benefit is discounted to determine its net 
present value. The fair value of any plan assets is 
deducted. Discount rates are based on the mar-
ket yield of high quality corporate bonds in the 
country concerned approximating to the terms 
of the LEGO Group’s employee benefit obliga-
tions. The calculations are performed annually 
by a qualified actuary using the Projected Unit 
Credit Method. When the benefits of a plan are 
increased, the portion of the increased benefit 
relating to past service by employees is recog-
nised as an expense in the income statement 
over the service period. To the extent that the 
benefits are vested, the expense is recognised 
in the income statement immediately.
Actuarial gains and losses arising from expe-
rience adjustments and changes in actuarial 
assumptions are charged or credited to com-
prehensive income in the year they occur.
Past service costs are recognised immediately 
in the income statement.
Net plan assets are recognised to the extent 
that the LEGO Group is able to derive future 
economic benefits in the way of refunds from 
the plan or reductions of future contributions.
2021
2020
Discount rate
1% - 8%
1% - 7%
Future salary increases
3% - 5%
1% - 5%
Future pension increases
2% - 3%
0% - 3%
2021 (mDKK)
Restructuring
Other
Total
Provisions at 1 January
19
141
160
Additions
21
83
104
Used
(17)
(1)
(18)
Reversed
(2)
(28)
(30)
Exchange rate adjustments
 -
4
4
Provisions at 31 December
21
199
220
Provisions are recognised in the balance sheet as follows:
Non-current
153
Current
67
220
36 Consolidated Financial Statements

Note 3.7
Deferred revenue
Deferred revenue consist of obligations re-
garding the LEGO Group VIP loyalty program, 
other obligations towards customers consisting 
of issued gift cards, prepayments related to 
licence income, and sale of goods.
Revenue recognised in 2021 included in 
deferred revenue at the beginning of 2021 
amounts to DKK 339 million (DKK 259 million in 
2020).
  Significant accounting estimates
The LEGO Group VIP loyalty programme is a 
separate performance obligation related to the 
non-performed proportion of revenue relating 
to the allocation of loyalty points. The perfor-
mance obligation is recognised at the date of 
recognition of the sale from which the loyalty 
points are derived.
The fair value of non-distributed loyalty points 
is calculated based on a model combining the 
value for the buyer and the expected future 
redemption and likelihood of redemption, ap-
plied as a breakage based on historical redemp-
tion and historical aging rates and is therefore 
inherently subject to uncertainty.
§	 Accounting policies
Revenue attributable to loyalty programme 
granted, gift cards and licence fee is deferred 
and recognised as revenue when the LEGO 
Group’s performance obligations towards the 
buyer have been fulfilled. 
Revenue attributable to the sale of goods is de-
ferred and recognised as revenue when transfer 
of control has occurred.
For more information regarding the timing of 
revenue recognition, see note 2.1 Revenue.
(mDKK)
2021
2020
Consumer loyalty programme
378
270
Other
129
113
Total deferred revenue
507
383
Deferred revenue is recognised in the balance sheet as follows:
Non-current
6
23
Current
501
360
507
383
37 Consolidated Financial Statements

Note 4.1
Financial income and expenses 
§	 Accounting policies
Financial income and expenses are recognised 
in the income statement with the amounts 
related to the financial year.
Financial income and expenses comprise interest 
income and expenses, realised and unrealised 
gains and losses on payables/receivables and 
transactions in foreign currencies.
For all financial instruments measured at amor­
tised cost, interest income or expenses are 
recognised using the effective interest rate. The 
rate is used to discount the estimated future 
cash payments or receipts to the net carrying 
amount of the financial asset or liability over 
the expected life of the financial instrument or a 
shorter period, where appropriate.
Note 3.8
Other debt
§	 Accounting policies
Other debt comprise wage related debt and 
other debts to authorities, sales incentives and 
royalty debt. Other debt is measured at amor-
tised cost.
(mDKK)
2021
2020
Interest income from financial assets measured at amortised cost
4
3
Exchange gains, net
97
–
Other interest income
7
4
Financial income
108
7
(mDKK)
2021
2020
Interest expenses related to lease liabilities
113
99
Interest expenses to related parties
21
14
Interest expenses to credit institutions
3
1
Total interest expenses measured at amortised cost
137
114
Exchange losses, net
 -
300
Other interest expenses
10
5
Financial expenses
147
419
(mDKK)
2021
2020
Wage-related payables and other charges
3,339
2,632
VAT and other indirect taxes
498
432
Sales incentives
1,573
1,144
Other liabilities to related parties
203
551
Other current liabilities
1,906
1,284
Total other debt
7,519
6,043
Other debt is recognised in the balance sheet as follows:
Non-current
148
86
Current
7,371
5,957
7,519
6,043
38 Consolidated Financial Statements

Note 4.3
Borrowings
Debt to credit institutions consists of variable 
interest mortgage with a remaining maturity of 
12-16 years.
§	 Accounting policies
Borrowings are initially recognised at fair 
value, net of transaction expenses incurred. 
Borrowings are subsequently measured at 
amortised cost. Any differences between the 
proceeds and the redemption value are recog-
nised in the income statement over the period 
of the borrowings using the effective interest 
method.
Note 4.2
Share capital
The share capital is divided into shares of DKK 
1,000 or multiples hereof. The share capital is 
fully paid.
A-shares carry 10 votes per DKK 1,000 share. 
B-shares carry 1 vote per DKK 1,000 share. 
C-shares carry 1 vote per DKK 1,000 share.
Dividend of DKK 8,000 million was paid in May 
2021 (DKK 8,000 million in April 2020), corre-
sponding to DKK 0.4 million per DKK 1,000 of 
share capital.
Proposed dividend for 2021 is DKK 10,000 
million, corresponding to DKK 0.5 million per 
DKK 1,000 of share capital.
Shareholders holding more than 5% of the 
share capital or 5% of the votes: 
KIRKBI A/S, Billund, Denmark
Koldingvej 2, Billund A/S, Billund, Denmark
§	 Accounting policies
Dividends are recognised as a liability in the 
period they are adopted at the Annual General 
Meeting (declaration date).
(mDKK)
2021
2020
Debt to credit institutions
137
147
Total borrowings
137
147
Borrowings are recognised in the balance sheet as follows:
Non-current liabilities
127
137
Current liabilities
10
10
137
147
(mDKK)
2021
2020
A-shares
1
1
B-shares
9
9
C-shares
10
10
Total share capital
20
20
39 Consolidated Financial Statements

Note 4.4
Leases
Right-of-use assets
Right-of-use assets
Lease liabilities
2021 (mDKK)
Rental of premises
Other assets
Total
Cost at 1 January
3,833
362
4,195
Additions
1,480
150
1,630
Remeasurements
608
(9)
599
Disposals
(72)
(90)
(162)
Exchange rate adjustments
203
5
208
Cost at 31 December
6,052
418
6,470
Depreciation at 1 January
969
159
1,128
Depreciation for the year
633
106
739
Disposals
(66)
(75)
(141)
Exchange rate adjustments
64
1
65
Depreciation at 31 December
1,600
191
1,791
Carrying amount at 31 December 
4,452
227
4,679
2020 (mDKK)
Rental of premises
Other assets
Total
Cost at 1 January
3,377
300
3,677
Additions
494
122
616
Remeasurements
146
3
149
Disposals
(40)
(56)
(96)
Exchange rate adjustments
(144)
(7)
(151)
Cost at 31 December
3,833
362
4,195
Depreciation at 1 January
464
90
554
Depreciation for the year
561
113
674
Disposals
(21)
(39)
(60)
Exchange rate adjustments
(35)
(5)
(40)
Depreciation at 31 December
969
159
1,128
Carrying amount at 31 December 
2,864
203
3,067
(mDKK)
2021
2020
Lease liabilities are recognised in the balance sheet as follows:
Non-current liabilities
4,038
2,519
Current liabilities
714
581
Total lease liabilities
4,752
3,100
40 Consolidated Financial Statements

Note 4.4 (continued)
Leases
Amounts recognised in the income statement
The LEGO Group leases various assets such as 
office buildings, store buildings, warehouses, 
company cars, forklifts etc. The leases have 
varying terms, clauses and rights under normal 
industry practice. In determining the lease 
term, all facts and circumstances that create 
an economic incentive to exercise an extension 
option, or not exercise termination option, are 
considered. Extension options (or periods after 
termination options) are only included in the 
lease term, if the lease is reasonably certain to 
be extended (or terminated).
The incremental borrowing rate is determined 
per country and per class of underlying assets.
The total cash outflow for leases in the year was 
DKK 1,068 million (DKK 906 million in 2020).
The LEGO Group does not have significant 
sub-leasing contracts.
The maturity analysis of lease liabilities is dis-
closed in note 4.5 Financial assets and liabilities.
The portfolio of lease commitments for short-
term leases at the end of the year, is similar 
to the portfolio of short-term leases that have 
been expensed during the year.
The LEGO Group has not entered any significant 
leases, not yet commenced, to which the LEGO 
Group is committed (DKK 1,164 million in 2020).
§	 Accounting policies
The right-of-use asset and corresponding lease 
liability are recognised at the commencement 
date, i.e. the date the underlying asset is available 
for use. The lease terms may include options to 
extend or terminate the lease when it is reason­
ably certain that the option will be exercised.
The LEGO Group applies the short-term lease 
recognition exemption for lease contracts that, 
at the commencement date, have a lease term 
of 12 months or less for all classes of underlying 
assets, and the exemption for lease contracts 
for which the underlying asset is of low value. 
Lease payments on short-term leases and 
leases of low-value assets are recognised as 
expense on a straight-line basis over the lease 
term. 
The lease liabilities are initially measured at the 
present value of lease payments to be made 
over the lease term. The lease payments are 
discounted using the incremental borrowing 
rate. The lease payments include fixed pay-
ments and variable lease payments that depend 
on an index or a rate, less any lease incentives 
receivable. The lease liability is subsequently 
measured by increasing the carrying amount 
to reflect interest on the lease liability and by 
reducing the carrying amount to reflect the 
lease payments made. If the contract holds an 
option to purchase, extend or terminate a lease 
and it is reasonably certain to be exercised 
by the LEGO Group, the lease payments will 
include those. 
The LEGO Group remeasures the lease liability 
(and makes a corresponding adjustment to the 
related right-of-use asset) whenever:
•	 The lease term has changed or there is a 
significant event or change in circumstances 
resulting in a change in the assessment 
of exercising an option, in which case the 
lease liability is remeasured by discounting 
the revised lease payments using a revised 
discount rate. 
•	 The lease payments change due to changes 
in index or rate. 
•	 A lease contract is modified and the lease 
modification is not accounted for as a sepa-
rate lease, in which case the lease liability is 
remeasured based on the lease term of the 
modified lease by discounting the revised 
lease payments using a revised discount rate 
at the effective date of the modification.
Right-of-use assets are measured at cost 
corresponding to the lease liability recognised, 
adjusted for any lease incentives received and 
initial direct costs. Depreciation is calculated 
using the straight-line method over the lease 
term or the useful life of the right-of-use assets, 
whichever is shortest. 
The variable lease payments that do not 
depend on index or a rate are recognised as 
expense in the year the event or condition that 
triggers the payment occurs. 
For all classes of assets, non-lease components 
will be separated from the lease components 
and thereby not form part of the right-of-use 
asset and financial lease liability recognised in 
the balance sheet.
Right-of-use assets classified as rental of premises 
and other assets have the following lease terms:
Rental of premises	
3-50 years
Other assets 	
2-8 years
(mDKK)
2021
2020
Expenses relating to short-term leases
135
130
Expenses relating to leases of low-value assets that are not short-term leases
9
8
Expenses relating to variable lease payments not included in lease liability
114
63
258
201
41 Consolidated Financial Statements

Note 4.5
Financial assets 
and liabilities
The maturity profile of financial liabilities is 
disclosed according to category and class 
distributed on period to maturity. All interest 
payments on and repayments of financial assets 
and liabilities are based on contracts.
At 31 December 2021 forward contracts and 
options have been applied for hedging of cash 
flow covering future financial periods. The hedg-
ing mainly relates to the LEGO Group’s sale of 
goods and services in USD, EUR, GBP, JPY, AUD, 
CNY and CAD as well as purchases of goods in 
CZK, MXN and HUF. All contracts are expected 
to expire – and thus affect result – in the financial 
year 2022. Derivatives are disclosed in note 4.7.
The following table shows the timing of cash flow related to financial liabilities and hedging instruments:
2021 (mDKK)
Carrying amount
Fair value
0–1 year
1–5 years
> 5 years
Total cash flow
Borrowings
137
137
11
41
86
138
Lease liabilities
4,752
4,752
858
2,180
2,471
5,509
Trade payables
5,116
5,116
5,116
 -
 -
5,116
Other debt
3,319
3,319
3,319
 -
 -
3,319
Measured at amortised cost (liabilities)
13,324
13,324
9,304
2,221
2,557
14,082
Measured at fair value through the income statement 
(fair value hedging)
128
128
128
 -
 -
128
Measured at fair value through comprehensive income 
(cash flow hedging)
214
214
214
 -
 -
214
Derivative financial instruments
342
342
342
–
–
342
Total financial liabilities
13,666
13,666
9,646
2,221
2,557
14,424
Trade receivables
8,409
8,409
8,409
 -
 -
8,409
Other receivables
533
533
463
70
 -
533
Loans to related parties
12,748
12,748
12,748
 -
 -
12,748
Cash at banks
1,037
1,037
1,037
 -
–
1,037
Measured at amortised cost (assets)
22,727
22,727
22,657
70
–
22,727
Measured at fair value through the income statement 
(fair value hedging)
11
11
11
 -
 -
11
Measured at fair value through comprehensive income 
(cash flow hedging)
7
7
7
 -
 -
7
Derivative financial instruments
18
18
18
 -
 -
18
Total financial assets
22,745
22,745
22,675
70
 -
22,745
42 Consolidated Financial Statements

Note 4.5 (continued)
Financial assets
and liabilities
Non-contractual items such as taxes, duties 
payable and wage related payables are 
excluded from other receivables and other debt 
balances as this analysis is only required for 
financial instruments.
Due to the short term nature and/or the ma-
teriality of trade receivables, trade payables, 
other receivables, other debt, loans to related 
parties and borrowings their carrying amount 
is considered to be approximately the same as 
their fair value.
Financial assets and liabilities measured at fair 
value comprise derivative financial instruments. 
The calculation of fair value of the LEGO Group’s 
derivative financial instruments is based on ob-
servable inputs like interest rates etc. (level 2) as 
per the IFRS Fair Value Hierarchy listed below: 
•	 Quoted prices (unadjusted) in active markets 
for identical assets or liabilities (level 1). 
•	 Inputs other than quoted prices included 
within level 1 that are observable for the 
assets or liabilities, either directly (that is, 
as prices) or indirectly (that is, derived from 
prices) (level 2). 
•	 Inputs for assets or liabilities that are not 
based on observable market data (that is, 
unobservable inputs) (level 3).
2020 (mDKK)
Carrying amount
Fair value
0–1 year
1–5 years
> 5 years
Total cash flow
Borrowings
147
147
10
42
97
149
Lease liabilities
3,100
3,100
668
1,481
1,435
3,584
Trade payables
2,947
2,947
2,947
–
–
2,947
Other debt
2,910
2,910
2,910
–
–
2,910
Measured at amortised cost (liabilities)
9,104
9,104
6,535
1,523
1,532
9,590
Measured at fair value through the income statement 
(fair value hedging)
8
8
8
–
–
8
Measured at fair value through comprehensive income 
(cash flow hedging)
38
38
38
–
–
38
Derivative financial instruments
46
46
46
–
–
46
Total financial liabilities
9,150
9,150
6,581
1,523
1,532
9,636
Trade receivables
6,590
6,590
6,590
–
–
6,590
Other receivables
363
363
300
63
–
363
Loans to related parties
8,463
8,463
8,463
–
–
8,463
Cash at banks
1,177
1,177
1,177
–
–
1,177
Measured at amortised cost (assets)
16,593
16,593
16,530
63
–
16,593
Measured at fair value through the income statement 
(fair value hedging)
81
81
81
–
–
81
Measured at fair value through comprehensive income 
(cash flow hedging)
134
134
134
–
–
134
Derivative financial instruments
215
215
215
–
–
215
Total financial assets
16,808
16,808
16,745
63
–
16,808
43 Consolidated Financial Statements

Note 4.6
Financial risks
The LEGO Group has centralised the manage-
ment of financial risks. The overall objectives 
and policies for the LEGO Group’s financial risk 
management are outlined in a Treasury Policy 
and a Credit Risk Policy.
The LEGO Group only hedges commercial expo-
sures and consequently does not enter into 
derivative transactions for trading or specula-
tive purpose. A fully integrated Treasury Man-
agement System is used to manage all financial 
positions.
Credit risk
The LEGO Group is exposed to credit risk from 
trading partners and customers.
Derivative financial instruments are entered with 
counterparties with investment grade level ratings.
Similarly, the LEGO Group only uses insurance 
companies with investment grade level ratings.
For trade receivables the exposures are man-
aged globally through fixed procedures, and 
credit limits are set as deemed appropriate for 
the customer, taking into account current local 
market conditions. The LEGO Group has no 
significant trade receivables risk concentrated 
in specific countries, but has some single signif-
icant trade debtors. Credit risk relating to trade 
receivables is disclosed in note 3.4.
For banks and financial institutions, only inde-
pendently rated parties with investment grade 
level ratings are accepted as main banks. 
The LEGO Group uses the related company 
KIRKBI Invest A/S for deposits. No independent 
rating exists but no significant risks are recog-
nised. The maximum credit risk, that corresponds 
to the carrying amount of receivables and loans 
granted is disclosed in note 4.5.
The overall credit risk of the LEGO Group is 
considered to be low.
Foreign exchange risk
The LEGO Group’s presentation currency is 
DKK, but the majority of the LEGO Group’s ac-
tivities and investments is denominated in other 
currencies. Consequently, there is a substantial 
risk of exchange rate fluctuations having an im-
pact on the LEGO Group’s reported cash flow, 
profit/(loss) and/or financial position in DKK.
The LEGO Group’s foreign exchange risk is 
managed centrally based on a Treasury Policy 
approved by the Board of Directors. Forward 
contracts and options are used to cover pur-
chases and sales in foreign currencies. These 
forward contracts and options are classified 
as hedging when they meet the accounting 
requirements for hedging future cash flow.
Type
­Financial risk
Credit risk
Low
Foreign exchange risk
High
Interest rate risk
Low
Liquidity risk
Low
44 Consolidated Financial Statements

The LEGO Group’s exposure to foreign currency risk on financial instruments denominated in main foreign currencies:
Note 4.6 (continued)
Financial risks
2021 (mDKK)
EUR
USD
GBP
CZK
MXN
HUF
CNY
SGD
CAD
JPY
Cash at banks
 27 
 22 
 91 
 9 
 7 
 3 
 39 
 13 
 10 
 9 
Trade receivables
 1,020 
 2,507 
 268 
 167 
 46 
 42 
 362 
 5 
 120 
 217 
Trade payables
 (2,569)
 (37)
 (551)
 (22)
 (1)
 (60)
 (1)
 717 
 (5)
 (463)
Current receivables/(debt), related parties
 (1,036)
 (1,343)
 (419)
 166 
 332 
 52 
 (47)
 (2,326)
 (202)
 (138)
Non-current receivables, related parties
 - 
 - 
 - 
 373 
 1,042 
 855 
 1,034 
 - 
 - 
 - 
Foreign currency forwards
 (35)
 (996)
 (176)
 6 
 50 
 - 
 (125)
 - 
 (147)
 (105)
Financial instruments impacting net profit
 (2,593)
 153 
 (787)
 699 
 1,476 
 892 
 1,262 
 (1,591)
 (224)
 (480)
Foreign currency forwards
 - 
 (2,982)
 (732)
 - 
 155 
 - 
 (605)
 - 
 (723)
 (208)
Foreign currency options
 - 
 327 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
Financial instruments not impacting net profit
 - 
 (2,655)
 (732)
 - 
 155 
 - 
 (605)
 - 
 (723)
 (208)
Total financial instruments impacting equity
 (2,593)
 (2,502)
 (1,519)
 699 
 1,631 
 892 
 657 
 (1,591)
 (947)
 (688)
45 Consolidated Financial Statements

The LEGO Group’s exposure to foreign currency risk on financial instruments denominated in main foreign currencies:
Note 4.6 (continued)
Financial risks
2020 (mDKK)
EUR
USD
GBP
CZK
MXN
HUF
CNY
SGD
CAD
JPY
Cash at banks
 11 
 94 
 108 
 (1)
 6 
 3 
 4 
 11 
 19 
 17 
Trade receivables
 1,583 
 1,352 
 444 
 303 
 70 
 36 
 127 
 1,022 
 118 
 208 
Trade payables
 (106)
 (101)
 (32)
 (351)
 (82)
 (248)
 (184)
 600 
 (6)
 (8)
Current receivables/(debt), related parties
 (1,575)
 (1,790)
 (449)
 (202)
 1,582 
 307 
 103 
 (2,829)
 (165)
 (168)
Non-current receivables, related parties
 - 
 - 
 - 
 487 
 - 
 777 
 928 
 - 
 - 
 - 
Foreign currency forwards
 (37)
 (565)
 (145)
 22 
 10 
 16 
 (94)
 - 
 (108)
 (89)
Financial instruments impacting net profit
 (124)
 (1,010)
 (74)
 258 
 1,586 
 891 
 884 
 (1,196)
 (142)
 (40)
Foreign currency forwards
 (226)
 (1,880)
 (500)
 164 
 55 
 66 
 (405)
 - 
 (442)
 (185)
Financial instruments not impacting net profit
 (226)
 (1,880)
 (500)
 164 
 55 
 66 
 (405)
 - 
 (442)
 (185)
Total financial instruments impacting equity
 (350)
 (2,890)
 (574)
 422 
 1,641 
 957 
 479 
 (1,196)
 (584)
 (225)
46 Consolidated Financial Statements

Note 4.6 (continued)
Financial risks
Sensitivity analysis based only on outstanding financial instruments:
The isolated effects of the financial instruments 
on profit and equity after tax of a currency 
strengthening of 10% against DKK at 31 De-
cember 2021 are specified below for the most 
important currencies in the LEGO Group. The 
sensitivities are based only on the impact of 
the financial instruments that are outstanding 
at the balance sheet date, and are thus not an 
expression of the LEGO Group’s total currency 
risk. The financial instruments included in the 
sensitivity analysis are the LEGO Group’s: Cash 
at banks, trade receivables, trade payables, bor-
rowings, foreign exchange forwards and foreign 
­exchange options.
Interest rate risk 
The LEGO Group’s interest rate risk relates 
to interest-bearing debt and interest-bearing 
assets. The LEGO Group’s interest-bearing 
assets consist mainly of bank deposits and 
deposit with KIRKBI Invest A/S. An increase 
in the interest level of 1 percentage point for 
2021 would have had a positive impact on the 
LEGO Group’s profit for the year of approx. 
DKK 70.8 million in 2021 (DKK 32.2 million in 
2020). The LEGO Group’s interest rate risk is 
considered immaterial and is not expected to 
have a significant impact on the LEGO Group’s 
results.
Liquidity risk
Liquidity is managed centrally and is continually 
assessed. It is ensured that, at any given time, 
sufficient financial resources are available. 
Based on the financial reserves with banks and 
credit facilities available in credit institutions 
and from related parties, there are no signifi-
cant liquidity risks. Furthermore, excess liquidity 
is placed at KIRKBI Invest A/S, which is why the 
counterparty risk is assessed to be low. Please 
refer to Note 4.5 Financial assets and liabilities 
for maturity analysis.
Capital structure and risk management 
The LEGO Group’s Dividend and Capital Structure 
Committee monitors the capital structure of all 
legal entities within the LEGO Group and takes 
adequate measures to ensure the LEGO Group is 
capitalised in the best interest of the LEGO Group 
and the shareholders. The overall objective is to 
ensure a continued development and strength-
ening of the LEGO Group’s capital structure that 
supports long-term profitable growth. The LEGO 
Group is not reliant on external financing and the 
Dividend and Capital Structure Committee seeks 
to maintain that the strong financials of the LEGO 
Group are applied to fund investments in sub­
sidiaries via equity and intercompany loan funding.
Dividend
Dividend of DKK 8,000 million has been paid in 
May 2021 (DKK 8,000 million in 2020).
It is expected that the dividend for 2021, to be 
paid in 2022, will amount to DKK 10,000 million.
The dividend payment reflects the strategy 
behind the capital structure where the LEGO 
Group is the operational company and any 
surplus liquidity is distributed to the owners.
Balances at 31 December
2021
2020
(mDKK)
Change in 
exchange rate
Profit/(loss)
Equity
Profit/(loss)
Equity
EUR
10%
(259)
(259)
(12)
(35)
USD
10%
15
(250)
(101)
(289)
GBP
10%
(79)
(152)
(7)
(57)
CZK
10%
70
70
26
42
MXN
10%
148
163
159
164
HUF
10%
89
89
89
96
CNY
10%
126
66
88
48
SGD
10%
(159)
(159)
(120)
(120)
CAD
10%
(22)
(95)
(14)
(58)
JPY
10%
(48)
(69)
(4)
(22)
47 Consolidated Financial Statements

Note 4.7
Derivative financial
instruments
Total hedging activities
The LEGO Group uses a number of forward 
contracts and options to hedge currency ex-
posure. The hedging activities are categorised 
into hedging of forecast transactions (cash flow 
hedges), and hedging of assets and liabilities 
(fair value hedges).
The table below shows the fair value of hedging activities specified by hedging instruments and the major currencies:
2021 (mDKK)
Contract amount
Positive fair value
Negative fair value
Period covered
Hedging of forecast transactions qualifying for hedge accounting:
USD (sale of currency)
 3,823 
 3 
 104 
 12 months 
JPY (sale of currency)
 267 
 1 
 2 
 12 months 
GBP (sale of currency)
 938 
 - 
 11 
 12 months 
AUD (sale of currency)
 898 
 2 
 13 
 12 months 
CAD (sale of currency)
 927 
 1 
 16 
 12 months 
CNY (sale of currency)
775
 - 
 49 
 12 months 
Other (purchase of currency)
 199 
 - 
 - 
 12 months 
Other (sale of currency)
 474 
 - 
 3 
 12 months 
Total forward contracts
 8,301 
 7 
 198 
USD (sale of currency)
 657 
 - 
 16 
 12 months 
Total currency options
657 
 - 
 16 
Hedging of balance sheet items qualifying for hedge accounting:
USD (sale of currency)
 1,278 
 1 
 67 
 2 months 
JPY (sale of currency)
 135 
 2 
 - 
 2 months 
GBP (sale of currency)
 226 
 - 
 10 
 2 months 
AUD (sale of currency)
 240 
 - 
 2 
 2 months 
CAD (sale of currency)
 189 
 3 
 13 
 2 months 
CZK (purchase of currency)
7
 - 
 - 
 2 months 
CNY (sale of currency)
 160 
 - 
 17 
 2 months 
Other (purchase of currency)
 64 
 - 
 - 
 2 months 
Other (sale of currency)
 148 
 2 
 2 
 2 months 
Total forward contracts
 2,447
 8 
 111 
USD (sale of currency)
 197 
 - 
 11 
 1 month 
Total currency options
 197
 - 
 11 
Total for which hedge accounting applies
11,602
15
336
Other forecast transaction hedges for which hedge accounting is not applied:
Options (time value)
 - 
 3 
 6 
 12 months 
Total currency options
 - 
 3 
 6 
Total for which hedge accounting is not applied
 - 
 3 
 6 
Total of forecast transactions
 11,602
 18 
 342 
48 Consolidated Financial Statements

Note 4.7 (continued)
Derivative financial
instruments
2020 (mDKK)
Contract amount
Positive fair value
Negative fair value
Period covered
Hedging of forecast transactions qualifying for hedge accounting:
USD (sale of currency)
2,410
107
–
12 months
JPY (sale of currency)
237
7
–
12 months
GBP (sale of currency)
641
1
3
12 months
AUD (sale of currency)
672
–
27
12 months
CAD (sale of currency)
567
4
2
12 months
CZK (purchase of currency) 
210
4 
–
12 months
CNY (sale of currency)
519
5
4
12 months
Other (purchase of currency)
154
6
2
12 months
Other (sale of currency)
110
–
–
12 months
Total forward contracts
5,520
134
38
Hedging of balance sheet items qualifying for hedge accounting:
USD (sale of currency)
724
56
–
2 months
JPY (sale of currency)
115
5
–
2 months
GBP (sale of currency)
186
9
1
2 months
AUD (sale of currency)
199
–
6
2 months
CAD (sale of currency)
138
6
–
2 months
CZK (purchase of currency)
28
1
–
2 months
CNY (sale of currency)
121
3
1
2 months
Other (purchase of currency)
38
1
–
2 months
Other (sale of currency)
28
–
–
2 months
Total forward contracts
1,577
81
8
Total for which hedge accounting applies
7,097
215
46
Total for which hedge accounting is not applied
–
–
–
Total of forecast transactions
7,097
215
46
49 Consolidated Financial Statements

Note 4.7 (continued)
Derivative financial
instruments
The LEGO Group has the following derivative financial instruments in the following line items in the balance sheet:
§	 Accounting policies
Derivative financial instruments are initially 
recognised at cost and are subsequently 
remeasured at their fair value at the balance 
sheet date. Positive and negative fair value of 
derivative financial instruments are disclosed in 
the same line as the hedged item.
The changes in the fair value of derivative finan-
cial instruments that are designated and qualify 
as cash flow hedges are recognised in compre-
hensive income within a separate reserve under 
equity. The cumulative gains or losses relating 
to these hedge transactions are reclassified 
from equity when the hedged item affects the 
income statement, or if the hedged transaction 
is no longer to take place. The amount is recog-
nised in the same reporting line as the hedged 
item. There is no hedging ineffectiveness.
For derivative financial instruments that do not 
meet the criteria to be classified as hedging 
instruments, the changes in fair value are recog-
nised immediately in the income statement.
When option contracts are used to hedge fore-
cast transactions, the LEGO Group designates 
only the intrinsic value of the option contract as 
the hedging instrument.
(mDKK)
2021
2020
Hedging of forecast transactions (cash flow hedges)
10
134 
Hedging of assets and liabilities (fair value hedges)
8
81 
Current assets
 18 
 215
Hedging of forecast transactions (cash flow hedges)
 (220)
(38)
Hedging of assets and liabilities (fair value hedges)
 (122)
(8)
Current liabilities
 (342)
 (46)
50 Consolidated Financial Statements

Note 5.1
Note 5.2
Fees to 
independent auditor
Remuneration of 
Group Management
Executive Management consists of one member, 
therefore remuneration of the Chief Executive 
Officer (Executive Management) and the Board 
Short-term incentive plans are based on yearly 
performance and long-term incentive plans are 
based on long-term goals for value creation.
of Directors is disclosed collectively with 
reference to §98b (3) of the Danish Financial 
Statement Act.
Remuneration to Executive Management and the Board of Directors
Remuneration to Key Management Personnel (Executive Leadership Team)
(mDKK)
2021
2020
Fee for statutory audit
12
12
Other assurance engagements
1
1
Total audit related services
13
13
Tax consultancy
8
9
Other services
15
14
Total non-audit services
23
23
Total fees to independent auditor
36
36
(mDKK)
2021
2020
Salaries and other remuneration
59
51
(mDKK)
2021
2020
Salaries
66
60
Pensions
 -
1
Short-term incentive plans
59
34
Long-term incentive plans
32
29
157
124
Severance payments and other one-offs
17
12
Total remuneration
174
136
Average number of Executive Leadership Team
7
9
Headcount of Executive Leadership Team end of year
7
10
51 Consolidated Financial Statements

Note 5.3
Contingent assets, contingent 
liabilities and other obligations
(mDKK)
2021
2020
Guarantees
127
197
Other obligations
4,282
972
Total contingencies and other obligations
4,409
1,169
Guarantees relate to bank guarantees for 
commitments.
Other obligations consist of purchase, service 
and licence agreements.
The LEGO Group has entered various contracts 
with vendors on usual terms and conditions of 
sales. 
Security has been given for land, buildings and 
installations with a net carrying amount of DKK 
474 million (DKK 490 million in 2020) for the 
LEGO Group’s mortgage loans totalling DKK 137 
million (DKK 147 million in 2020).
The LEGO Group has utilised tax losses 
in non-Danish jurisdictions in the Danish 
joint taxation until 31 December 2004.                           
The deferred tax of this amounts to DKK 80 
million (DKK 80 million in 2020), of which DKK 
0 million has been recognised as deferred tax. 
The amount of DKK 80 million (DKK 80 million in 
2020) is not expected to be recaptured.
The Danish companies in the LEGO Group are 
jointly and severally liable for corporate in-
come tax according to the joint taxation in the 
LEGO Group, KIRKBI A/S and in the companies 
controlled by KIRKBI A/S. The total amount of 
income tax liabilities, as well as related income 
tax credit counterparts are shown in the Annual 
Report of KIRKBI A/S, which is the administra-
tion company of the joint taxation. The Danish 
companies in the LEGO Group are furthermore 
jointly and severally liable for Danish taxes 
at source withheld on behalf of non-resident 
companies for dividend, royalty and interest.
52 Consolidated Financial Statements

Note 5.4
Cash flow specifications
(mDKK)
Note
2021
2020
Depreciation and amortisation of non-current assets
2.4
2,252 
 2,114 
Impairment of non-current assets 
2.4
46
–
Net loss on sale of non-current assets
21 
4 
Net movement in provisions
55 
77
Remeasurement of defined benefit plans
14 
(11) 
Net movement in employee benefit obligation
(80)
26 
Financial income and expenses
4.1
39
412
Hedge accounting
(303)
141 
Adjustments for non-cash items
2,044 
2,763 
(mDKK)
2021
2020
Inventories
(480)
(329)
Trade receivables
(1,537) 
322
Other receivables
(423) 
2
Prepayments
(170)
63
Trade payables
2,074
(413)
Deferred revenue
148 
97
Other debt
1,315
1,146
Change in working capital
927
888
2021 (mDKK)
Borrowings
Leases
Net debt at 1 January
147
3,100 
Cash flow
(10)
(697)
New leases
 - 
2,229
Terminated leases
 - 
(21)
Other changes
 - 
(2)
Exchange rate adjustments
 - 
143
Net debt at 31 December
137 
4,752 
2020 (mDKK)
Borrowings
Leases
Net debt at 1 January
157
3,096
Cash flow
(10)
 (606)
New leases
 -
765
Terminated leases
 -
(36)
Other changes
 -
(3)
Exchange rate adjustments
 -
(116)
Net debt at 31 December
 147 
3,100
Liabilities from financing activities
53 Consolidated Financial Statements

Note 5.5
Related parties
Identity of related parties
The Parent of the LEGO Group is LEGO A/S, 
a company incorporated in Denmark, whose 
shares are owned by KIRKBI A/S (75%) and 
Koldingvej 2, Billund A/S (25%). 
The shares of KIRKBI A/S are fully owned by 
the Kirk Kristiansen family (Billund, Denmark). 
Koldingvej 2, Billund A/S is fully owned by the 
LEGO Foundation. 
(mDKK)
2021
2020
KIRKBI A/S
Other transactions
(21)
(10)
Dividend
(6,000)
(6,000)
Balance end of year
12
19
Lease liability end of year
(1,733)
(847)
Koldingvej 2, Billund A/S
Sale of goods
22
14
Other transactions
(27)
(23)
Dividend
(2,000)
(2,000)
Balance end of year
(18)
(13)
KIRKBI Invest A/S Group
Trademark royalty
(1,988)
(1,568)
Other transactions
249
285
Balance end of year
167
(182)
Lease liability end of year
(145)
(8)
Merlin Entertainments Group
Sale of goods
508
295
Royalty
19
9
Other transactions
(1)
3
Balance end of year
81
68
Transactions with other related parties
Sale of goods
1
 -
Other transactions
27
15
Donations
144
110
Balance end of year
52
52
The LEGO Group has had the following material transactions and balances with related parties:
Being an associated company of KIRKBI A/S, 
Merlin Entertainments Group is considered a 
related party. Due to shared controlling share-
holder, KIRKBI Invest A/S Group is also consid-
ered a related party. 
Key Management Personnel are considered 
related parties.
54 Consolidated Financial Statements

Note 5.5 (continued)
Note 5.6
Related parties
Events occurring after 
the reporting period
No loss allowance was recognised in relation 
to balances or loans with related parties during 
the year. All balances and loans fall due within 
one year. Due to the short-term nature of the 
balances and loans from related parties, the 
carrying amount is considered to be the same 
as their fair value. 
Lease expenses paid to related parties are 
included in other transactions. The portfolio 
of lease commitments with related parties 
for short-term leases at the end of the year is 
similar to the portfolio of short-term leases that 
have been expensed during the year. The LEGO 
Group has not entered any leases with related 
parties, not yet commenced. 
Apart from the events recognised or disclosed 
in the consolidated financial statements, no 
events of importance to the consolidated 
financial statements have occurred after the 
reporting period.
Transactions with Key Management Personnel
There have been no transactions with the Board 
of Directors or Executive Leadership Team be-
sides remuneration. For information about the 
salaries of the Board of Directors and Executive 
Leadership Team, see note 5.2 Remuneration of 
Group Management.
Terms and conditions
All transactions were made on normal commer-
cial terms and conditions and at market rates. 
Outstanding balances and loans are unsecured 
and are repayable in cash.
§	 Accounting policies
Deposit between the LEGO Group and KIRKBI 
Invest A/S is considered to be a financial asset 
and treated according to IFRS 9 and is mea-
sured at amortised cost.
The LEGO Group has the following loan to KIRKBI Invest A/S (deposit agreement):
(mDKK)
2021
2020
Balance at 1 January
8,463
5,876
Loans advanced during the year
18,754
14,975
Repayments
(14,450)
(12,374)
Interest charged
(19)
(14)
Balance at 31 December
12,748
8,463
55 Consolidated Financial Statements

Note 5.7
Group structure
* Shares owned through LEGO Systems, Inc.
** Shares owned through LEGO Park Holding UK Ltd.
LEGO A/S directly or indirectly owns 
the entire share capital in all group 
subsidiaries.
LEGO A/S is 75% owned by KIRKBI 
A/S and is included in the Consolidat-
ed Annual Report of KIRKBI A/S. 
KIRKBI A/S is the ultimate Parent 
Company.
Manufacturing, Administration and Sales and Distribution
Denmark
LEGO System A/S
Manufacturing
China
LEGO Toy Manufacturing (Jiaxing) Co., Ltd.
Czech Republic
LEGO Production s.r.o.
Hungary
LEGO Manufacturing Kft.
Mexico
LEGO Operaciones de México, S.A. de C.V.
Sales and Distribution
Australia
LEGO Australia Pty. Ltd.
Austria
LEGO Handelsgesellschaft mbH
Belgium
LEGO Belgium n.v.
Brazil
LEGO do Brasil Comércio e Distribuicão de Brinquedos Ltda
Canada
LEGO Canada, Inc.
China
LEGO Education Technology (Shanghai) Co., Ltd.
China
LEGO Trading (Beijing) Co., Ltd.
China
LEGO Toy (Shanghai) Co., Ltd.
Czech Republic
LEGO Trading s.r.o.
Finland
Oy Suomen LEGO Ab
France
LEGO Brand Retail SAS
France
LEGO SAS
Germany
LEGO GmbH
Hong Kong
LEGO Hong Kong Limited
Hungary
LEGO Hungária Kft.
India
LEG GODT India Private Limited
Ireland
LEGO Ireland Limited
Italy
LEGO S.p.A.
Japan
LEGO Japan Ltd.
Malaysia
LEGO Trading (Malaysia) Sdn. Bhd.
Mexico
LEGO México, S.A. de C.V.
New Zealand
LEGO New Zealand Ltd.
Norway
LEGO Norge AS
Poland
LEGO Polska Sp. zo.o.
Portugal
LEGO Lda.
Romania
LEGO Romania S.R.L.
Russian Fed.
LEGO Ltd.
Singapore
LEGO Singapore Pte. Ltd.
South Africa
LEGO South Africa (Pty.) Ltd.
South Korea
LEGO Korea Co. Ltd.
Spain
LEGO S.A.
Sweden
LEGO Sverige AB
Switzerland
LEGO Schweiz AG
Taiwan
LEGO Trading (Taiwan) Co., Ltd.
The Netherlands
LEGO Nederland B.V.
Turkey
LEGO Turkey Oyuncak Ticearet Anonim Sirketi
Ukraine
LEGO Ukraine LLC
United Kingdom
LEGO Company Limited
USA
LEGO Systems, Inc.
USA*
LEGO Brand Retail, Inc.
Utd. Arab Emir.
LEGO Middle East FZ-LLC
Other
China
LEGO Commerce (Shenzhen) Co. Ltd.
Denmark
LEGO Security Billund ApS
Germany
LLD Share Verwaltungs GmbH
Hong Kong
LEGO Company Ltd.
Hong Kong
BrickLink Limited
India
LEGO India Private Limited
Mexico
LEGO Real Estate, S.A. de C.V.
United Kingdom
LEGO Park Holding UK Ltd.
United Kingdom**
LEGO Lifestyle International Ltd.
USA*
LEGO Bricklink, Inc.
56 Consolidated Financial Statements

Parent Company
Financial Statements
Financial Statements
Financial Statements
57 Parent Company Financial Statements

Income Statement
1 January – 31 December
(mDKK)
Note
2021
2020
Revenue
512
378
Gross profit
512
378
Administrative expenses
(349)
(253)
Operating profit
163
125
Net profit for the year from subsidiaries
3.3
13,145
9,774
Financial income
2.2
69
71
Financial expenses
2.2
(79)
(66)
Profit before income tax
13,298
9,904
Income tax expense
2.3
(90)
(66)
Net profit for the year
13,208
9,838
58 Parent Company Financial Statements

Balance Sheet
at 31 December
(mDKK)
Note
2021
2020
Intangible assets
3.1
199
230
Property, plant and equipment
3.2
5
7
Deferred tax assets
3.5
47
44
Investments in subsidiaries
3.3
27,420
23,596
Receivables from subsidiaries
1,611
1,143
Total non-current assets
29,282
25,020
Trade receivables
13
4
Other receivables
3
2
Cash at banks
16
–
Total current assets
32
6
Total assets
29,314
25,026
(mDKK)
Note
2021
2020
Share capital
3.4
20
20
Reserve from the use of the equity method
6,854
6,019
Retained earnings
12,103
9,424
Proposed dividend
10,000
8,000
Total equity
28,977
23,463
Provisions
13
13
Other debt
148
87
Total non-current liabilities
161
100
Trade payables
8
3
Income tax liabilities
51
38
Debt to subsidiaries
1
1,300
Other debt
116
122
Total current liabilities
176
1,463
Total liabilities
337
1,563
Total equity and liabilities
29,314
25,026
59 Parent Company Financial Statements

Statement of Changes in Equity
1 January – 31 December
2021 (mDKK)
Share capital
Reserve from the use of 
the equity method
Retained earnings
Proposed dividend
Total equity
Balance at 1 January
20
6,019
9,424
8,000
23,463
Dividend paid relating to prior year
–
–
–
(8,000)
(8,000)
Profit for the year
–
529
2,679
10,000
13,208
Currency translation adjustments
–
532
–
–
532
Entries recognised directly on equity in subsidiaries
–
(226)
–
–
(226)
Balance at 31 December
20
6,854
12,103
10,000
28,977
2020 (mDKK)
Share capital
Reserve from the use of 
the equity method
Retained earnings
Proposed dividend
Total equity
Balance at 1 January
20
4,944
9,213
8,000
22,177
Dividend paid relating to prior year
–
–
–
(8,000)
(8,000)
Profit for the year
–
1,627
211
8,000
9,838
Currency translation adjustments
–
(653)
–
–
(653)
Entries recognised directly on equity in subsidiaries
–
101
–
–
101
Balance at 31 December
20
6,019
9,424
8,000
23,463
60 Parent Company Financial Statements

Notes
Notes
Notes
62	 1.1 	 Basis of preparation
62 	 2.1 	 Employee costs
63 	 2.2 	Financial income and expenses
63 	 2.3 	Income tax expense
64 	 3.1 	 Intangible assets
65 	 3.2 	Property, plant and equipment
66 	 3.3 	Investments in subsidiaries 
67 	 3.4 	Share capital
67 	 3.5 	Deferred tax
68 	 3.6 	Contingent assets, contingent 
liabilities and other obligations
68 	 3.7 	 Related parties
69 	 3.8 	Proposed distribution of profit
Basis of
preparation
Income
Statement
Balance sheet and
other disclosures
61
Parent Company Financial Statements

The Financial Statements of the Parent Company 
have been prepared in accordance with the provi-
sions of the Danish Financial Statements Act apply-
ing to enterprises of reporting class C (large).
In pursuance of §86(4) of the Danish Financial 
Statement Act, the company has not prepared a 
statement of cash flow. Reference is made to the 
Consolidated Statement of Cash Flow on page 
18. Referring to §96(3) and §101(3) of the Danish 
Financial Statement Act, the company does not 
disclose the fee paid to the auditors appointed 
by the Annual General Meeting or five year 
financial summary. 
The Executive Management only consists of 
one member, therefore the remuneration of the 
Chief Executive Officer (Executive Management) 
Note 1.1
Basis of preparation
Note 2.1
Employee costs
Revenue comprises of income from services in 
Europe, thus additional segment information is 
not disclosed.
The accounting policies are the same as for 
the Consolidated Financial Statement except 
additional disclosure on tax, intangible assets 
and investments in subsidiaries. See the respec-
tive notes.
The accounting policies for the financial 
statements of the parent company remain 
unchanged from last year.
(mDKK)
2021
2020
Salaries and other remuneration
 59 
 51 
Remuneration to Executive Management and Board of Directors
and the Board of Directors is disclosed collec-
tively with reference to §98b (3) of the Danish 
Financial Statement Act.
(mDKK)
2021
2020
Salaries
 128 
 75 
Pension costs
 - 
 - 
Social security and other costs
 1 
 - 
Total employee costs
 129 
 75 
Included in the income statement under the following headings:
Administrative expenses
 129 
 75 
 129 
 75 
Average number of full-time employees
 5 
 3 
62 Parent Company Financial Statements

Note 2.2
Financial income and expenses
Note 2.3
Income tax expense
(mDKK)
2021
2020
Interest income from subsidiaries
69
61
Exchange gains, net
–
10
Financial income
69
71
(mDKK)
2021
2020
Interest expenses to subsidiaries
77
66
Exchange losses, net
2
–
Financial expenses
79
66
§	 Accounting policies
For Danish tax purposes, the parent company 
is assessed jointly with its Danish subsidiaries. 
The Danish jointly taxed companies are included 
in a Danish on-account tax payment scheme 
for Danish corporate income tax. All income 
taxes under the scheme are recorded in the 
individual companies. LEGO A/S and its Danish 
sub­sidiaries are included in the joint taxation of 
the parent company, KIRKBI A/S.
Subsidiaries are included in the joint taxation 
from the date they are consolidated in the 
consolidated financial statements and up to the 
date on which they are no longer consolidated.
(mDKK)
2021
2020
Income tax charge for the year
49
38
Other tax for the year
40
12
Deferred tax change for the year
(8)
(5)
Adjustment to income tax for prior years
4
22
Adjustment to deferred tax for prior years
5
(1)
Total income tax expense
90
66
63 Parent Company Financial Statements

Note 3.1
Intangible assets
§	 Accounting policies
Goodwill is amortised over the estimated 
useful life, which is estimated at 5 years. The 
amortisation period is determined by man-
agement based on their experience within the 
area of business conducted. Amortisation and 
impairment losses are recognised in the income 
statement as administrative expenses.
2021 (mDKK)
Goodwill
Patents, software 
and other rights
Total
Cost at 1 January
255
49
304
Transfers
48
–
48
Cost at 31 December
303
49
352
Amortisation and impairment losses at 1 January
55
19
74
Amortisation for the year
61
8
69
Transfers
10
–
10
Amortisation and impairment losses at 31 December
126
27
153
Carrying amount at 31 December
177
22
199
2020 (mDKK)
Goodwill
Patents, software 
and other rights
Total
Cost at 1 January
253
49
302
Additions
2
–
2
Cost at 31 December
255
49
304
Amortisation and impairment losses at 1 January
4
11
15
Amortisation for the year
51
8
59
Amortisation and impairment losses at 31 December
55
19
74
Carrying amount at 31 December
200
30
230
64 Parent Company Financial Statements

Note 3.2
Property, plant and equipment
2021 (mDKK)
Land, buildings and 
installations
Other fixtures and 
fittings, tools and 
equipment
Total
Cost at 1 January
6
2
8
Additions
–
1
1
Disposals
(3)
(1)
(4)
Cost at 31 December
3
2
5
Depreciation and impairment 
losses at 1 January
–
1
1
Disposals
–
(1)
(1)
Depreciation and impairment  
losses at 31 December
–
–
–
Carrying amount at 31 December
3
2
5
2020 (mDKK)
Land, buildings and 
installations
Other fixtures and 
fittings, tools and 
equipment
Total
Cost at 1 January
6
1
7
Additions
–
1
1
Cost at 31 December
6
2
8
Depreciation and impairment  
losses at 1 January
–
1
1 
Depreciation and impairment 
losses at 31 December
–
1
1
Carrying amount at 31 December
6
1
7
65 Parent Company Financial Statements

§	 Accounting policies
Subsidiaries of the Parent Company are recog­
nised under the equity method, which is at 
the respective share of the net asset values in 
subsidiaries. For subsidiaries internal gain and 
losses are eliminated.
Any costs in excess of net assets in the acquired 
entities are capitalised in the Parent Company 
under investments in subsidiaries as part of the 
investments (“Goodwill”). Amortisation of the 
goodwill is provided under the straight-line 
method over a period not exceeding 5 years 
based on estimated useful life.
To the extent it exceeds declared dividend from 
subsidiaries, net revaluation of investments in 
subsidiaries is transferred to net revaluation 
reserve according to the equity method under 
equity, deducted for approved dividends from 
sub­sidiaries on the date of the Annual General 
Meeting in LEGO A/S.
Profits in subsidiaries are disclosed as profit after tax 
in the income statement of the Parent Company.
Note 3.3
Investments in subsidiaries
(mDKK)
2021
2020
Cost at 1 January
9,577
9,562
Correction to cost at 1 January
–
(4)
Additions
1,106
19
Disposals
(35)
–
Transfers
(48)
–
Cost at 31 December
10,600
9,577
Value adjustment at 1 January
14,019
12,444
Currency translation adjustments
532
(653)
Share of net profit for the year
13,145
9,774
Dividend
(10,660)
(7,647)
Entries recognised directly on equity in subsidiaries
(226)
101
Transfers
10
–
Value adjustment at 31 December
16,820
14,019
Carrying amount at 31 December
27,420
23,596
66 Parent Company Financial Statements

Note 3.4
Note 3.5
Share capital
Deferred tax
(mDKK)
2021
2020
Deferred tax, net at 1 January
44
38
Change in deferred tax
3
6
Deferred tax, net at 31 December
47
44
Deferred tax is recognised in the balance sheet as follows:
Deferred tax assets
47
44
Deferred tax liabilities
–
–
47
44
2021
Number of 
shares
Nominal value 
(mDKK)
A-shares
19
1
B-shares
150
9
C-shares
36
10
Total share capital
205
20
The share capital is divided into shares of DKK 
1,000 or multiples hereof as specified below. 
The share capital is fully paid. 
There have been no changes in the share capi-
tal during the last 5 years.
Shareholders holding more than 5% of the 
share capital or 5% of the votes: 
KIRKBI A/S, Billund, Denmark
Koldingvej 2, Billund A/S, Billund, Denmark
67 Parent Company Financial Statements

Guarantees relate to commitments in subsidiaries.
LEGO A/S is jointly and severally liable for 
corporate income tax according to the joint 
taxation in the LEGO Group, KIRKBI A/S and 
in the companies controlled by KIRKBI A/S. 
The total amount of income tax liabilities, as 
well as related income tax credit counterparts, 
is shown in the Annual Report of KIRKBI A/S, 
which is the administration company of the 
joint taxation. LEGO A/S is furthermore jointly 
and severally liable for Danish taxes at source 
Remuneration to Key Management Personnel is 
disclosed in note 2.1.
Transactions with related parties were carried 
out on an arm’s length basis.
Note 3.6
Note 3.7
Contingent assets, contingent
liabilities and other obligations
Related parties
withheld on behalf of non-resident companies 
for dividend, royalty and interest.
The LEGO Group has utilised tax losses in 
non-Danish jurisdictions in the Danish joint 
taxation until 31 December 2004. The deferred 
tax of this amounts to DKK 80 million (DKK 80 
million in 2020), of which DKK 0 million has 
been recognised as a provision for deferred tax. 
The amount of DKK 80 million (DKK 80 million in 
2020) is not expected to be recaptured.
LEGO A/S has had the following material transactions and balances with related parties  
(excluding wholly owned subsidiaries):
(mDKK)
2021
2020
KIRKBI A/S
Other transactions
(1)
(11)
KIRKBI Invest A/S Group
Other transactions
1
–
Merlin Entertainments Group
Royalty
19
9
Balance end of year
16
2
(mDKK)
2021
2020
Guarantees
889
1,084
Other indemnities
103
689
Total contingencies and other obligations
992
1,773
68 Parent Company Financial Statements

§	 Accounting policies
Dividend proposed by Management for the 
financial year is recognised as a separate item 
under equity.
Note 3.8
Proposed distribution of profit
(mDKK)
2021
2020
Dividend
10,000
8,000
Reserve from the use of the equity method
529
1,627
Retained earnings
2,679
211
Total proposed distribution of profit
13,208
9,838
69 Parent Company Financial Statements

Management’s Statement 
and Auditor’s Report
and Auditor’s Report
and Auditor’s Report
70 Management’s Statement and Auditor’s Report

Management’s Statement
The Executive Management and the Board of 
Directors have today considered and adopted 
the Annual Report of LEGO A/S for the financial 
year 1 January to 31 December 2021. The consol-
idated financial statements have been prepared 
in accordance with International Financial 
Reporting Standards as adopted by the EU and 
additional requirements in the Danish Financial 
Statements Act and the Parent Company Fi-
nancial Statements are prepared in accordance 
with the Danish Financial Statements Act. Man-
agement’s Review is prepared in accordance 
with the Danish Financial Statements Act.
In our opinion, the Consolidated Financial State-
ments and the Parent Company Financial
Statements give a true and fair view of the 
financial position at 31 December 2021 of the 
LEGO Group and the Parent Company and of the 
results of the LEGO Group and the Parent Com-
pany operations and consolidated cash flow for 
the financial year 1 January to 31 December 2021.
In our opinion, Management’s Review includes a 
true and fair view of the development in the
operations and financial circumstances of the 
LEGO Group and the Parent Company, of the 
Executive Management
Niels B. Christiansen
President and Chief Executive Officer
Board of Directors
Thomas Kirk Kristiansen
Chairman
Fiona Dawson
Jørgen Vig Knudstorp
Søren Thorup Sørensen
Vice Chairman
Jan Thorsgaard Nielsen
Eva Berneke
Anne Sweeney
results for the year and of the financial position 
of the LEGO Group and the Parent Company as 
well as a description of the most significant risks 
and elements of uncertainty facing the LEGO 
Group and the Parent Company.
We recommend that the Annual Report be 
adopted at the Annual General Meeting.
Billund, 1 March 2022
71 Management’s Statement and Auditor’s Report

Independent Auditor’s Report
To the shareholders of LEGO A/S
Opinion
In our opinion, the Consolidated Financial 
Statements give a true and fair view of the 
Group’s financial position at 31 December 2021 
and of the results of the Group’s operations and 
cash flow for the financial year 1 January to 31 
December 2021 in accordance with Internation-
al Financial Reporting Standards as adopted by 
the EU and further requirements in the Danish 
Financial Statements Act.
Moreover, in our opinion, the Parent Company 
Financial Statements give a true and fair view 
of the Parent Company’s financial position at 31 
December 2021 and of the results of the Parent 
Company’s operations for the financial year 1 
January to 31 December 2021 in accordance 
with the Danish Financial Statements Act.
We have audited the Consolidated Financial 
Statements and the Parent Company Financial 
Statements of LEGO A/S for the financial year 
1 January – 31 December 2021, which comprise 
Income Statement, Balance Sheet, Statement 
of Changes in Equity and Notes to the financial 
statements, including summary of significant 
accounting policies, for both the Group and 
the Parent Company, as well as Statement 
of Comprehensive Income and Statement 
of Cash Flow for the Group (“financial state-
ments”).
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 Financial Statements section of 
our report. We are independent of the Group 
in accordance with the International Ethics 
Standards Board for Accountants’ International 
Code of Ethics for Professional Accountants 
(IESBA Code) and the additional ethical 
requirements applicable in Denmark, and we 
have fulfilled our other ethical responsibilities 
in accordance with these requirements and the 
IESBA code. We believe that the audit evidence 
we have obtained is sufficient and appropriate 
to provide a basis for our opinion.
Statement on Management’s Review
Management is responsible for Management’s 
Review.
Our opinion on the financial statements does 
not cover Management’s Review, and we do 
not express any form of assurance conclusion 
thereon.
In connection with our audit of the financial 
statements, our responsibility is to read Man-
agement’s Review and, in doing so, consider 
whether Management’s Review is materially 
inconsistent with the financial statements or 
our knowledge obtained during the audit, or 
otherwise appears to be materially misstated. 
Moreover, it is our responsibility to consider 
whether Management’s Review provides the 
information required under the Danish Financials 
Statements Act.
Based on the work we have performed, in our 
view, Management’s Review is in accordance 
with the Consolidated Financial Statements 
and the Parent Company Financial Statements 
and has been prepared in accordance with the 
requirements of the Danish Financial Statement 
Act. We did not identify any material misstate-
ment in Management’s Review.
Management’s Responsibility  
for the Financial Statements
Management is responsible for the preparation 
of Consolidated Financial Statements that 
give a true and fair view in accordance with 
International Financial Reporting Standards as 
adopted by the EU and further requirements 
in the Danish Financial Statements Act and for 
the preparation of Parent Company Financial 
Statements that give a true and fair view in ac-
cordance with the Danish Financial Statements 
Act, and for such internal control as Manage-
ment determines is necessary to enable the 
preparation of financial statements that are 
free from material misstatement, whether due 
to fraud or error.
72 Management’s Statement and Auditor’s Report

In preparing the financial statements, Manage-
ment is responsible for assessing the Group’s 
and the Parent Company’s ability to continue 
as a going concern, disclosing, as applicable, 
matters related to going concern and using the 
going concern basis of accounting in preparing 
the financial statements unless Management 
either intends to liquidate the Group or the 
Parent Company or to cease operations, or has 
no realistic alternative but to do so.
Auditor’s Responsibilities for  
the Audit of the Financial Statements
Our objectives are to obtain reasonable assur-
ance about whether the financial statements as 
a whole are free from material misstatement, 
whether due to fraud or error, and to issue an 
auditor’s report that includes our opinion. Rea-
sonable 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 influence the economic decisions of users 
taken on the basis of these financial 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 skepticism 
throughout the audit. 
We also:
•	 Identify and assess the risks of material 
misstatement of the financial statements, 
­whether due to fraud or error, design and 
perform audit procedures responsive to 
those risks, and obtain audit evidence that is 
sufficient and appropriate to provide a basis 
for our opinion. The risk of not detecting a 
material misstatement resulting from fraud 
is higher than for one resulting from error as 
fraud may involve collusion, forgery, inten-
tional omissions, misrepresentations, or the 
override of internal control.
•	 Obtain an understanding of internal control 
relevant to the audit in order to design 
audit procedures that are appropriate in the 
circumstances, but not for the purpose of 
expressing an opinion on the effectiveness 
of the Group’s and the Parent Company’s 
internal control.
•	 Evaluate the appropriateness of accounting 
policies used and the reasonableness of 
accounting estimates and related disclosures 
made by Management.
•	 Conclude on the appropriateness of Man-
agement’s use of the going concern basis 
of accounting in preparing the financial 
statements and, based on the audit evidence 
obtained, whether a material uncertainty ex-
ists related to events or conditions that may 
cast significant doubt on the Group’s and 
the Parent Company’s ability to continue as a 
going concern. If we conclude that a material 
uncertainty exists, we are required to draw 
attention in our auditor’s report to the related 
disclosures in the financial statements or, if 
such disclosures are inadequate, to modify 
our opinion. Our conclusions are based on 
the audit evidence obtained up to the date of 
our auditor’s report. However, future events 
or conditions may cause the Group and the 
Parent Company to cease to continue as a 
going concern.
•	 Evaluate the overall presentation, structure 
and contents of the financial statements, 
including the disclosures, and whether the 
financial statements represent the underlying 
transactions and events in a manner that 
gives a true and fair view.
•	 Obtain sufficient appropriate audit evidence 
regarding the financial information of the en-
tities or business activities within the Group 
to express an opinion on the Consolidated 
Financial Statements. We are responsible for 
the direction, supervision and performance of 
the group audit. We remain solely responsi-
ble for our audit opinion.
We communicate with those charged with 
governance regarding, among other matters, 
the planned scope and timing of the audit and 
significant audit findings, including any signif-
icant deficiencies in internal control that we 
identify during our audit.
Aarhus, 1 March 2022
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 3377 1231
Claus Lindholm Jacobsen
State Authorised Public Accountant
mne23328
Mads Melgaard
State Authorised Public Accountant
mne34354
73 Management’s Statement and Auditor’s Report

LEGO A/S
Aastvej 1
DK-7190 Billund
Tel: +45 7950 6070
CVR no: 54 56 25 19
Incorporated: 19 December, 1975
Residence: Billund
Financial Year: 1 January – 31 December
Internet: www.LEGO.com
Annual Report 2021 is published for
the LEGO Group by Finance and
Corporate Brand Communications.
Design: KIRK & HOLM
LEGO, the LEGO logo, the Minifigure, NINJAGO and 
the Brick and Knob ­configurations are trademarks 
of the LEGO Group. ©2021 The LEGO Group.
STARWARS.com© & ™ Lucasfilm Ltd.
© & ™ Warner Bros. Entertainment Inc. WB SHIELD: 
© & ™ WBEI. Publishing Rights © JKR. (s21)
© & ™ Lucasfilm Ltd.
TM & © 2021 Nintendo.