XML 53 R25.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Financial Risk Management | 12 Months Ended
--- | ---
Dec. 31, 2024
Disclosure of detailed information about financial instruments [abstract] |
Financial Risk Management | Note 17 – Financial Risk Management The Company manages capital to ensure that all group enterprises will be able to continue as a going concern while maximizing the return to shareholders through the optimization of debt and equity balances. Capital Structure The Company’s capital structure consists of equity and external debt obtained through issuance of convertible notes and royalty funding liabilities. The Company is not subject to any contractually imposed capital requirements or financial covenants. The capital structure is reviewed on an ongoing basis for the adequacy of the Company’s capital compared to the resources required for carrying out ordinary activities. Development in the Company’s share capital and treasury shares reserves are described in the following sections. Other equity reserves are described in Note 2, “Summary of Material Accounting Policies.” Share Capital The share capital of Ascendis Pharma A/S consists of 60,689,487 fully paid shares at a nominal value of DKK 1, all in the same share class, and which includes 845,887 ordinary shares represented by ADSs held by Ascendis Pharma A/S. The development in outstanding shares of the Company was as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |
|  | (Number) |
Changes in share capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 1 |  |  | 57,707,439 |  |  |  | 57,152,295 |  |  |  | 56,937,682 |  |  |  | 53,750,386 |  |  |  | 47,985,837 |
Increase through cash contributions |  |  | 2,982,048 |  |  |  | 555,144 |  |  |  | 214,613 |  |  |  | 3,187,296 |  |  |  | 5,764,549 |
December 31 |  |  | 60,689,487 |  |  |  | 57,707,439 |  |  |  | 57,152,295 |  |  |  | 56,937,682 |  |  |  | 53,750,386 |
Treasury Shares Reserve The development in holding of treasury shares was as follows:
|  | Nominal value |  |  | Holding |  |  | Holding in % of total outstanding shares |
|  | (EUR’000) |  |  | (Number) |  |  |  |
Treasury shares |  |  |  |  |  |  |  |  |
January 1, 2023 |  |  | 149 |  |  |  | 1,113,152 |  |  |  | — |
Transferred under stock incentive programs |  |  | (3 | ) |  |  | (20,098 | ) |  |  | — |
December 31, 2023 |  |  | 146 |  |  |  | 1,093,054 |  |  |  | 1.9 | %
Transferred under stock incentive programs |  |  | (33 | ) |  |  | (247,167 | ) |  |  | — |
December 31, 2024 |  |  | 113 |  |  |  | 845,887 |  |  |  | 1.4 | %
Financial Risk Management Objectives The Company regularly monitors the access to domestic and international financial markets, manages the financial risks relating to its operations, and analyzes exposures to risk, including market risk, such as foreign currency risk and interest rate risk, credit risk and liquidity risk. The Company’s financial risk exposure and risk management policies are described in the following sections. Market Risk The Company’s activities expose the group enterprises to the financial risks of changes in foreign currency exchange rates and interest rates. Derivative financial instruments are not applied to manage exposure to such risks. Foreign Currency Risk Management The Company is exposed to foreign currency exchange risks arising from various currency exposures, primarily with respect to the U.S. Dollar (“USD”). Foreign currency exchange risks to the USD are unchanged to prior year, and primarily relate to sales and purchases in foreign currencies, convertible notes and royalty funding liabilities, countered by cash and cash equivalents. The exposure from foreign currency exchange risks is managed by maintaining cash positions in the currencies in which the majority of future expenses are denominated, and payments are made from those reserves. Foreign Currency Sensitivity Analysis The following table details how a strengthening of the USD against the EUR would impact profit or loss, and equity before tax at the reporting date. A similar weakening of the USD would have the opposite effect. A positive number indicates an increase in profit or loss and equity before tax, while a negative number indicates the opp osite. The sensitivity analysis is deemed representative of the inherent foreign currency exchange risk associated with the operations.
|  |  |  |  | Hypothetical impact on consolidated financial statements |
|  | Nominal positions (net) |  |  | Increase in foreign currency exchange rate |  |  | Profit/(loss) before tax |  |  | Equity before tax |
|  | (EUR ‘000) |
USD/EUR |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2024 |  |  | (735,064 | ) |  |  | 10 | % |  |  | (73,506 | ) |  |  | (73,506 | )
December 31, 2023 |  |  | (369,091 | ) |  |  | 10 | % |  |  | (36,909 | ) |  |  | (36,909 | )
Interest Rate Risk Management Outstanding convertible notes comprise a 2.25% coupon fixed rate structure. Further, the effective interest rate on royalty funding liabilities is estimated at initial recognition and takes into account anticipated amount and timing of future cash flows, which further depends on future commercial revenue forecasts and the probability of exercising the embedded buy-out option. Material changes to anticipated future cash flows could potentially increase or decrease future interest expense. In addition, the interest rate on lease liabilities is fixed at the lease commencement date. Future indebtedness, including those related to lease arrangements, if any, may be subject to higher interest rates. In addition, future interest income from interest-bearing bank deposits may fall short of expectations due to changes in interest rates. Derivative liabilities are measured at fair value through profit or loss. Since the fair value is exposed from the development in interest rates, the profit or loss is exposed to volatility from such development. The effects of interest rate fluctuations are not considered a material risk to the Company’s financial position. Accordingly, no interest sensitivity analysis has been presented. Credit Risk Management The Company has adopted an investment policy with the primary purpose of preserving capital, fulfilling liquidity needs and diversifying the risks associated with cash, cash equivalents and marketable securities. This investment policy establishes minimum ratings for institutions with which the Company holds cash and cash equivalents, as well as rating and concentration limits for marketable securities held. The exposure to credit risk primarily relates to cash and cash equivalents. The credit risk on bank deposits is limited because the counterparties, holding significant deposits, are banks with minimum credit-ratings of A3/A- assigned by international credit-rating agencies. The banks are reviewed on a regular basis and deposits may be transferred during the year to mitigate credit risk. In order to mitigate the concentration of credit risks on bank deposits and to preserve capital, a portion of the bank deposits may be placed into investment grade rated marketable securities. The Company’s investment policy, approved by the Board, only allows investment in marketable securities having investment grade credit-ratings, assigned by international credit-rating agencies. Accordingly, the risk from probability of default is low. On each reporting date, the risk of expected credit loss on bank deposits and marketable securities, if any, including the hypothetical impact arising from the probability of default, is considered in conjunction with the expected loss caused by default by banks or securities with similar credit-ratings and attributes. In line with previous periods, this assessment did not reveal a material impairment loss, and accordingly no provision for expected credit loss has been recognized. At the reporting dates, there are no significant overdue trade receivable balances. As a result, write-down to accommodate expected credit-losses is not deemed material. Liquidity Risk Management Historically, the risk of insufficient funds has been addressed through proceeds from sale of the Company’s securities in private and public offerings, through issuance of convertible notes in 2022, and through royalty funding liabilities in 2024 and 2023. Liquidity risk is managed by maintaining adequate cash reserves and banking facilities. The risk of shortage of funds is monitored, using a liquidity planning tool, to ensure sufficient funds are available to settle liabilities as they fall due. Besides long term deposits on leases, the Company’s financial assets are recoverable within twelve months after the reporting date. Maturity analysis The following table summarizes maturity analysis (on an undiscounted basis) for non-derivative financial liabilities recognized in the consolidated statements of financial position:
|  | < 1 year |  |  | 1-5 years |  |  | >5 years |  |  | Total contractual cash-flows |  |  | Carrying amount |
|  | (EUR’000) |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings (excluding lease liabilities) |  |  | 32,303 |  |  |  | 1,027,558 |  |  |  | 13,660 |  |  |  | 1,073,521 |  |  |  | 763,586 |
Lease liabilities |  |  | 15,482 |  |  |  | 52,007 |  |  |  | 39,127 |  |  |  | 106,616 |  |  |  | 93,030 |
Trade payables, accrued expenses and other liabilities |  |  | 96,705 |  |  |  | — |  |  |  | — |  |  |  | 96,705 |  |  |  | 96,705 |
Total financial liabilities |  |  | 144,490 |  |  |  | 1,079,565 |  |  |  | 52,787 |  |  |  | 1,276,842 |  |  |  | 953,321 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings (excluding lease liabilities) |  |  | 11,708 |  |  |  | 742,925 |  |  |  | 42,397 |  |  |  | 797,030 |  |  |  | 545,472 |
Lease liabilities |  |  | 14,385 |  |  |  | 51,426 |  |  |  | 49,056 |  |  |  | 114,867 |  |  |  | 98,793 |
Trade payables, accrued expenses and other liabilities |  |  | 94,566 |  |  |  | — |  |  |  | — |  |  |  | 94,566 |  |  |  | 94,566 |
Total financial liabilities |  |  | 120,659 |  |  |  | 794,351 |  |  |  | 91,453 |  |  |  | 1,006,463 |  |  |  | 738,831 |
“Borrowings (excluding lease liabilities)” comprise convertible notes and royalty funding liabilities. Further details regarding classification of convertible notes as current liabilities in the consolidated statement of financial position are provided in Note 2, “Summary of Material Accounting Policies,” section “New and Amended IFRS Accounting Standards and Interpretations.” Expected maturity for royalty funding liabilities is based on anticipated amount and timing of future revenue from sale of commercial products. Further details regarding the payment structure of the royalty funding agreements are provided above.

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfFinancialInstrumentsAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the entity's financial risk management practices and policies. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2024-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_10_e&doctype=Standard -URIDate 2024-03-27 + Details
Name: | ifrs-full_DisclosureOfFinancialRiskManagementExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-2022:textBlockItemType
Balance Type: | na
Period Type: | duration