2021 at a glance

2021 was an exceptional year with the KIRKBI Group delivering strategic progress and strong performance in all business areas.

For the KIRKBI Group, 2021 was a year with continued progress on the strategic journey towards 2032 and strong performance in all business areas.

It was a year with continued impact from COVID-19 causing disruptions in our day-to-day lives as well as healthcare and societal challenges for children and families.

KIRKBI’s focus was on being a responsible owner while concentrating on the health and safety of our employees and society. Through the LEGO Group, the LEGO Foundation and Ole Kirk’s Fond, a number of initiatives were taken to support children and families impacted by COVID-19 both with support and emergency relief.

In general, there was a high focus on support and giving back to society in 2021. The LEGO Foundation went beyond any previous activity levels with committed grants of DKK 2.8 billion to programmes around the world to help children and families, including those in need and in crisis. Grants from Ole Kirk’s Fond amounted to DKK 292 million to support children and their families primarily in Denmark while KIRKBI granted DKK 159 million to support among others vulnerable children in Afghanistan and Haiti.

The performance across all business areas led to a consolidated KIRKBI result for 2021 of DKK 27.0 billion compared to DKK 6.4 billion in 2020. The after tax cash inflows to KIRKBI were at DKK 13.1 billion slightly higher than the DKK 12.4 billion realised in 2020. Tax payments totaled DKK 6.0 billion in 2021, compared to DKK 2.6 billion in 2020.

For the LEGO® branded activities, investments in the long-term brand vision continued and the LEGO brand made progress on the shared LEGO Vision, i.e. to become “A global force for Learning-through-Play”. Across the world, families, children, and adults further engaged in LEGO play experiences and globally the LEGO brand was recognised as the most reputable brand.1)

Building a sustainable future for the family ownership of the LEGO® brand through generations.

The LEGO Group continued its remarkable growth momentum from 2020 which led to an increased market share and a revenue 27 % above 2020. After significant investments in digital transformation and sustainability, the LEGO Group ended 2021 with its best annual result ever; a result before tax of DKK 17.0 billion, which is up with 36 % compared to 2020 – an extraordinary accomplishment by the more than 20,000 employees. In addition to the strong financial performance, the LEGO Group showed continued high customer satisfaction and strong employee engagement.

In 2021, KIRKBI took the next step on the sustainability journey by having its carbon emissions reduction targets approved by the Science Based Targets initiative.

For Merlin Entertainments – including the LEGOLAND Parks – the COVID-19 restrictions across the globe continued to impact the number of visitors. Investments continued in new attractions, including LEGOLAND Korea and LEGOLAND Shanghai. LEGOLAND New York opened in July 2021.

For KIRKBI’s investment activities, a rebound from last year’s challenging markets led to a return on the Core Capital portfolio of 23.3 %, positively impacted by a high exposure to equities. The value of KIRKBI’s Core Capital portfolio increased to a total of DKK 98 billion.

A fundamental part of KIRKBI’s 2032 strategy is the increased emphasis on Thematic Capital investments. In 2021, focus was on further building organisational capabilities across the four sustainable investment themes – Energy Transition, Circular Plastics, Land Sustainability and Building Billund. The existing thematic investments progressed as planned with KIRKBI’s overall renewable energy capacity increasing to 404 MW from 392 MW in 2020.

In 2021, KIRKBI took the next step on the sustainability journey by having its carbon emissions reduction targets approved by the Science Based Targets initiative. The target is consistent with the Paris Agreement’s 1.5°C trajectory. Protecting the planet is vital to ensure a sustainable future and KIRKBI will engage to take the necessary actions progressing towards the target.

The commitment to the Science Based Targets initiative is an example of our continued support of the Ten Principles of the UN Global Compact.

For the owner family, 2021 marked a milestone as the next step in the generational change was announced. In the spring of 2023, Thomas Kirk Kristiansen will take over as Chairman of the Board of KIRKBI A/S from Kjeld Kirk Kristiansen.

Through dedicated contributions and engagement, our passionate team of employees delivered an exceptional year for KIRKBI. We are thankful for the dedication and commitment and look forward to a continued positive development of KIRKBI in 2022.

Kjeld Kirk Kristiansen

Chairman of the Board

Søren Thorup Sørensen

CEO