Notes – The KIRKBI Group

Section 1 – Allocation of assets

1.1. Allocation of KIRKBI’s assets

KIRKBI is a private holding and investment company founded to build a sustainable future for the family ownership of the LEGO® brand through generations. The activities are focused on three fundamental objectives: LEGO Brand Group, Investment activities and Support activities.

Allocation of KIRKBI assets (m DKK)

Below is set out a split of KIRKBI’s assets of DKK 166 billion (2021: DKK 155 billion), into LEGO Brand Group, Investment activities and Other assets.

Section 2 – LEGO Brand Group

2.1. Definition of LEGO Brand Group activities

LEGO Brand Group activities are defined as activities related to the LEGO® brand, which inlude ownership of the LEGO Group and Merlin Entertainments Ltd. owner of the LEGOLAND® parks and LEGOLAND® Discovery

Accounting policies

Profit before tax from LEGO A/S and BrainPOP LLC, companies where the KIRKBI Group has controlling influence, is fully consolidated in the income statement and included in the line items Operating profit from the LEGO Group and Trademark, business development and related costs, respectively.

Merlin Entertainments Ltd., in which KIRKBI owns 47.5 %, is accounted for using the

Centres as well as trademark royalties. Further investments in LEGO Brand Group activities include activities within education, learning and digital play through ownership of BrainPOP LLC and investment in Epic Games. equity method. Changes to the carrying amount of the investment are in the income statement included in the line item Operating profit from Merlin activities together with income from assets leased to Merlin Entertainments Ltd.

The investment in Epic Games, a company where KIRKBI owns 3 %, are valued at fair value through the income statement in the line item Trademark, business development and related costs.

2.2. The LEGO Group

the Annual Report for the LEGO Group:

Accounting policies

The KIRKBI Group controls, through its 75 % ownership of LEGO A/S, the LEGO Group. Hence the LEGO Group is fully consolidated into the income statement and balance sheet of the KIRKBI Group.

The non-controlling share of the LEGO Group is presented as non-controlling interest in the income statement and as non-controlling interests under equity. See note 9.2 for details.

2.3. Merlin activities

Operating profit from Merlin activities

Entertainments and hence the investment is classified as an investment in associates. Merlin Entertainments Ltd. is located in the UK using GBP as its functional currency. (m DKK) 2022 2021 Cost at 1 January 3,330 3,330 Additions -Cost at 31 December 3,330 3,330 Value adjustment at 1 January (835) (667) Exchange adjustment to year-end rate (134) 180 Share of profit 492 (588) Share of comprehensive income 4 240 Value adjustment at 31 December (473) (835) Carrying amount at 31 December 2,857 2,495

The carrying amount of Merlin Entertainments Ltd./Motion JVCO Ltd. can be specified as follows:

Total value of assets related to Merlin activities

In addition to the 47.5 % shareholding in Merlin Entertainments Ltd., KIRKBI has other assets related to Merlin Entertainments Ltd. in the balance sheet including bonds and term-loans issued by Merlin Entertainments Ltd. and assets leased to Merlin Entertainments Ltd.

Total value of assets related to Merlin activities (m DKK)

Financial information of Merlin Entertainments Ltd./Motion JVCO Ltd.

Accounting policies

Merlin Entertainments Ltd. is accounted for using the equity method. Under the equity method, investments in associates are initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the share of the net assets of the associate since the acquisition date.

The carrying amount of associated companies allocated to LEGO Brand Group activities is presented in the balance sheet under Other non-current assets.