January 1 – December 31, 2023
Annual
Report
2023
In 2023 cBrain grew revenue by 27% and
delivered record high earnings before tax
margin (EBT margin) of 34%
“cBrain beats expectations on top and bottom
lines as subscription revenue jumps“
Company announcement No. 1/January 15, 2024
2 | Annual Report 2023
Contents
Management Review
Letter from the CEO ............................................... 5
Five-year Summary ................................................ 9
Financial Results 2023 ............................................. 12
Risk Factors ....................................................... 15
Our Business .................................................. 18
Market and Value Proposition ..................................... 19
The F2 Software .................................................. 22
Customers and Growth Plan ...................................... 24
Shareholders .................................................. 28
Shareholder Information .......................................... 29
Financial Calendar 2024 .......................................... 29
Governance ....................................................31
Corporate Governance ........................................... 32
Management ..................................................... 34
Statements ................................................... 37
Management’s Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Independent Auditor’s report ...................................... 39
Financials .....................................................43
Consolidated Financial Statements ................................ 44
Parent Company Financial Statements ............................ 70
3 | Annual Report 2023
18Our Business
28 Shareholders
31
Governance
43
Financials
Management Review
4 | Annual Report 2023
Total revenues grew by +27% to DKK 239m in 2023, up
from DKK 188m in 2022. Earnings before tax (EBT) grew
by +66% to DKK 81m in 2023, up from DKK 49m in 2022.
cBrain thereby reports record high earnings before tax
margin (EBT margin) of 34%.
cBrain is well on track and executes the 2023-2025
growth plan. The growth plan is based on organic
growth, combined with a strong positive cashflow.
Fully aligned with the 2023-2025 growth plan, total
software revenue, which is based on software licenses
and software subscriptions, grew +40%, to DKK 189m in
2023 up from DKK 131m in 2022, while implementation
and support services declined by -5% to DKK 50m in
2023, down from DKK 52m in 2022. Software thereby
counts for 79% of total revenues in 2023.
The results are based on a solid development in
Denmark as well as internationally. International sales
grew +30% to DKK 81m in 2023, up from DKK 62m in
2022. International sales thereby count for 34% of total
revenues in 2023.
In line with previous years, subscriptions count for
more than 50% of total revenue in 2023, and cBrain is
incredibly pleased to see solid growing subscriptions
revenue. The majority of software subscriptions are
based on capacity, which is calculated by active numbers
of F2 users and modules, and the actual capacity usage is
measured and invoiced by the end of each quarter.
cBrain recognized a significant jump in subscription
revenue during the fourth quarter of 2023 due to
increased usage of the F2 digital platform across the
user base. The addition of more F2 users and more F2
modules to the subscription schemes demonstrates a
high level of customer loyalty and user satisfaction.
In parallel cBrain came in with lower-than-expected
costs. This further increased earnings before tax (EBT).
cBrain is well on track with
the 2023-2025 growth plan
By leveraging standard software, cBrain offers
government organizations fast digital transformation at
scale. cBrain thereby challenges one of the largest global
industries, government digitizing, and faces a huge
business opportunity. To capitalize on this opportunity,
cBrain has initiated a 3-year strategy covering the period
2023-2025.
While maintaining and growing the current business,
the goal of the 2023-2025 growth plan is to further
accelerate growth by investing in the ”F2 Climate
software” and the ”F2-for-Partners” concept.
F2 Climate Software serves as a door opener and
accelerator for international sales. Investing into the ”F2-
for-Partners” concept aims to build an F2-ecosystem of
customers and consulting partners, which allows cBrain
to increasingly outsource implementation services.
cBrain continues to win market shares in Denmark
In Denmark cBrain grew the F2 customer base and
added a solid number of new customers. This included
3 Danish ministries and several agencies, as well as the
second largest Danish Municipality.
In parallel cBrain won a number of larger projects.
Such projects demonstrate that cBrain is well on track,
“moving up market,” and challenges the traditional
Big IT vendors, as cBrain offers customers configured
F2 standard software as an alternative to traditional
custom-built solutions.
In 2023 this e.g., included the delivery of a number of
grant management solutions for the Danish Energy
Agency (Energistyrelsen), inspections for the Work
Environment in Denmark (Arbejdstilsynet), and
delivering a new hunting license solution for the Danish
Environmental Protection Agency (Miljøstyrelsen).
Internationally cBrain work across multiple countries
Over the recent years, cBrain has successfully attracted
its first customers across various countries.
Currently, cBrain has a customer base that spans France,
Germany, Guyana, Kenya, Romania, the United Kingdom,
the United States (USA), and the United Arab Emirates
(UAE). In 2023, cBrain further expanded its presence to
Ghana and India.
Letter from the CEO
In 2023 cBrain grew revenue by 27% and delivered record high earnings before tax margin (EBT margin) of 34%
5 | Annual Report 2023
In order to support and scale international sales, cBrain
has established an international business development
organization with staff in Australia, France, Kenya, the
USA, and the UAE.
Opening up new markets is still a priority for cBrain. As
examples, cBrain was in 2023 awarded the first project
in Romania. In December 2023, a Romanian language
version of F2 was delivered by a local partner, who is
now building a business based on the F2-for-Partners
concept.
Awarded company of the year by German-Danish
Trade Organization
cBrain continues to win new tenders in Germany. By
delivering a number of F2 based projects for Deutsche
Rentenversicherung, cBrain has established a solid
position in Germany, and in December 2023 cBrain
was awarded Danish company of the year by the
German Danish Chamber of Commerce (Dansk-Tysk
Handelskammer).
The German government has a strong focus on digitizing
and by reusing Danish experiences it is possible to
accelerate the digital transformation. cBrain has been
awarded company-of-the-year due to the results
which has been achieved as supplier to German public
organizations like Deutsche Rentenversicherung.
cBrain has now initiated a collaboration with the German
Danish Chamber of Commerce for cBrain to help and
accelerate the transformation within German public
sector. The German Federal Ministry for Economic
Affairs and Climate Action support German Danish
Chamber of Commerce.
F2 Climate Software serves as
international door opener
In spite of significant investments, government
organizations across the world struggle to accelerate the
fight against climate change. One major obstacle is that
it often takes years to execute political decisions due
to bureaucratic delays, which are fueled by the lack of
digitizing and inefficient IT systems.
In close collaboration with Danish government
organizations, like the Danish Environmental Protection
Agency (Miljøstyrelsen), cBrain has developed a large
library of solutions, which is called climate software.
F2 Climate Software helps to close the time gap
from political decision to execution
F2 is standard software, based on reusable open-source
configuration and best practices, and F2 Climate
Software can therefore easily be reused and adapted
across the world and help government organizations to
accelerate the deployment of climate action initiatives.
Denmark is a global leader within government digitizing
and a global leader with respect to climate action*, and
cBrain notices a strong interest across the world to
learn from Danish government experiences and relevant
digital solutions like the F2 Climate Software.
In March 2023, cBrain participated at the United
Nations Water Conference in New York. In parallel,
the United Nations Department of Economic and
Social Affairs adapted a library of blueprints for digital
water governance, which has been developed in
close collaboration between cBrain and the Danish
Environmental Protection Agency (Miljøstyrelsen).
*United Nations E-Government Survey and Transparency
International’s annual Corruption Perception Index 2023
6 | Annual Report 2023
The blueprints define standards and best practices for
e.g., environmental permitting, protection of water
resources, and wastewater inspections for the benefit
of governmental organizations around the world.
In September 2023, cBrain participated at a White
House executive environmental permitting summit
in Washington DC. The purpose of the meeting was
to discuss the issues that US agencies face seeking
software to enable more effective and efficient
environmental review and permitting processes.
During the summit cBrain presented F2 based solutions
and Danish permitting best practises. This included
functionality from self-service and process control
to Artificial Intelligence (AI) that can accelerate the
permitting processes.
In December 2023, cBrain participated as part of the
Danish delegation to COP28 in Dubai, sharing Danish
government experiences and digital solutions with
government executives across the world.
Collaborating with partners, cBrain can offer fast
digital transformation for governments across the
world
A key element of the cBrain growth plan is the F2-for-
Partners concept. It enables customers and consulting
partners to take over different types of work, from
configuration to training services, which relate to the
implementation of F2 based solutions.
The F2-for-Partners concept thereby allows cBrain to
accelerate growth without having to accelerate hiring.
Instead of building a large internal cBrain organization,
the F2-for-Partners concept allows cBrain to grow and
serve government customers across the world based on
collaboration with an eco-system of external F2 experts.
F2 Service Builder enables an eco-system of partners
F2 Service Builder is a game changing approach to
government digitizing. F2 Service Builder is a new
generation software tool that allows users to configure
their own government processes simply by filling out
a spreadsheet. This dramatically reduces time and
resources to digitize government processes and it allows
government to regain control of process digitizing.
In June 2023 cBrain released the first version of “F2
Service Builder”, thereby achieving an important
milestone related to the F2-for-Partners strategy,
and during the autumn cBrain released a number of
extensions to the F2 Service Builder.
cBrain has delivered the first AI
for Government projects
Due to the unique F2 architecture, cBrain can offer
AI functionality for government, which is difficult to
achieve with today’s well-known general-purpose
AI services. This includes using external services via
connectors, like ChatGPT or IBM WatsonX, or using
internal services, which are based on e.g., Llama2
and trained specifically for F2 usage.
This is essential to government usage of AI. F2
can thereby offer AI usage that complies with
legislations and compliance restrictions. For
example data protection and GDPR, as well as in-
depth learning based on customer specific data,
which will allow F2 to support customer specific
case processing.
During the autumn of 2023, cBrain delivered the first AI
projects. This includes projects for the Danish Ministry of
digital government and gender equality (Digitaliserings-
og Ligestillingsministeriet) and the Danish Environmental
Protection Agency (Miljøstyrelsen).
F2 Version 11 offers built-in Artificial Intelligence (AI)
In November 2023 cBrain released F2 Version 11. cBrain
has invested +40.000 hours into the new version, and
the new version of the standard software offers more
than 1.200 new functions and improvements.
In parallel, version 11 offers a number of new fully
integrated modules. The list of new modules includes
F2 Service Builder version 2, a new tool for reporting
and business intelligence called F2 Analytics, a new
concept for supporting document templates, as well as
a technical foundation for Artificial
Intelligence (AI).
cBrain showcasing software to His
Majesty King Frederik of Denmark at the
Official Royal Visit to India, March 2023
7 | Annual Report 2023
Based on AI foundation, cBrain can now offer a broad
range of AI functionality fully integrated with F2. During
2024, cBrain plans to release a number of F2 based AI
functions and modules, which have been specifically
designed and built for government.
cBrain beats expectations on top and bottom lines
In fiscal year 2023, cBrain initially aimed for revenue
growth of 15-20% and earnings before tax margin (EBT
margin) of 18-22%. However, exceeding expectations
in the first half of 2023, we raised our full-year revenue
growth guidance to 20-25% and EBT margin guidance to
20-25%.
With over 50% of revenue from software subscriptions,
mainly based on capacity, cBrain experienced a
significant increase in F2 usage in Q4, prompting a
further precision of guidance to 25-27% revenue growth
and 32-34% in EBT margin, which ended up being 27%
revenue growth and 34% in EBT margin.
cBrain guides continued growth and
solid earnings in 2024
cBrain revenue is divided into software and services. In
2024, cBrain expects that software revenue will count
for approximately 80% of total revenue.
Software revenue is based on subscriptions and one-
time licenses. Most software revenue in Denmark is
based on subscriptions, while internationally government
organizations still prefer procurement based on
one-time licenses in combination with software
maintenance subscriptions.
In 2023, total subscription revenue
counts for more than 2/3 of
total software revenue.
The fourth quarter 2023 jump in subscription revenue
offers a solid offset for continued software subscription
revenue in 2024, and in parallel cBrain expects to win
both new customers and new projects in 2024.
Aligned with the 2023-2025 strategy plan, cBrain does
not expect to grow services revenue in 2024.
Based on strong growth of software revenue, driven
by subscriptions as well as one-time licenses, and an
unchanged level of services revenue, cBrain forecast
revenue growth of 20-25% in 2024.
cBrain continues to invest in growth. This increases
costs, and as part of the 2024 plan cBrain has allocated
substantial investments for organizational development
and to support international market opportunities in e.g.
Germany and the USA. Consequently, cBrain forecast
earnings before tax margin (EBT margin) of 24-30% in
2024.
cBrain finds itself in a strong position, entering 2024,
with a solid pipeline of potential new customers and
projects. At the same time, cBrain operates within a
highly competitive market and government procurement
often takes a long time.
cBrain results 2024 may therefore deviate positively as
well as negatively from the forecasts.
cBrain raises share dividends by 33%
Last year, in 2023 cBrain raised the dividend paid out
to investors by 24%, thereby paying out a dividend of
DKK 0,21 per share. In 2024, cBrain suggests raising the
dividend by 33%, thereby paying out a dividend of DKK
0,28 per share.
8 | Annual Report 2023
Five-year Summary
T.DKK 2023 2022 2021 2020 2019
INCOME STATEMENT
239.182 187.924 154.662 120.120 96.412
-21.165 -18.853 -19.444 -16.360 -15.295
85.405 49.379 38.714 20.793 10.871
-4.051 -451 275 -696 -71
81.354 48.928 38.989 20.097 10.800
63.178 38.383 31.006 15.537 8.110
FINANCIAL POSITION
Cash and cash equivalents 9.234 2.225 72.181 50.792 31.160
Trade receivables 43.801 40.516 27.576 39.597 33.874
Total assets 340.857 322.693 215.851 155.100 121.026
Total equity 229.180 169.502 134.877 105.927 91.887
CASH FLOWS
Cash flow from operating activities 86.297 62.312 50.231 43.754 27.408
Cash flow from investing activities -27.107 -226.443 -20.447 -18.123 -15.275
Investments in PPE -703 -205.494 -957 0 0
Cash flow from financing activities -52.181 94.175 -8.396 -5.999 -6.516
Definitions of financials ratios are set out in note 28 to the Consolidated Financial Statements.
Amounts are presented in European format.
9 | Annual Report 2023
Revenue
Depreciation and amortisation
Operating profit (EBIT)
Financial items, net
Earnings before tax (EBT)
Profit for the period
Five-year Summary
T.DKK 2023 2022 2021 2020 2019
FINANCIAL RATIOS
Revenue growth rate 27% 22% 29% 25% 16%
Profit margin (EBIT) 36% 26% 25% 17% 11%
Return of investment (ROI) 24% 15% 18% 13% 9%
EBT margin 34% 26% 25% 17% 11%
Liquidity ratio 125% 104% 303% 294% 371%
Solvency ratio 67% 53% 62% 68% 76%
Return on equity 32% 25% 26% 16% 9%
STOCK MARKET RATIOS
Number of shares 1,000 pcs. 20.000 20.000 20.000 20.000 20.000
Book Value per Share (BVPS) 11,46 8,48 6,74 5,30 4,59
Basic EPS 3,16 1,92 1,55 0,78 0,41
Diluted EPS (DEPS) 3,16 1,92 1,55 0,78 0,41
ENVIRONMENTAL AND SOCIAL DATA
Average number of employees (FTEs) 167 152 137 117 98
Gender diversity, all employees 43% 43% 44% 40% 38%
Scope 1 & 2 CO
2
e emissions (tonnes) 26 99 65 56 95
Definitions of financials ratios are set out in note 28 to the Consolidated Financial Statements.
Amounts are presented in European format.
10 | Annual Report 2023
REVENUE (DKK)
239m
REVENUE GROWTH
27%
EBT MARGIN
34%
SOFTWARE SALES
79%
INTERNATIONAL SALES
35%
SHARE OF REVENUE SHARE OF REVENUE
11 | Annual Report 2023
Revenue
Total revenue increased by DKK 51m (+27%) to
DKK 239m in 2023, driven by increased software sales,
from DKK 188m total revenue in 2022.
Software sales increased DKK 54m or (+40%) from
DKK 136m in 2022 to DKK 189m in 2023, constituting
79% of the total revenue.
Sales of services decreased by DKK 2m (-5%) from
DKK 52m in 2022 to DKK 50m in 2023. The decline in
revenue from services aligns with cBrain’s strategy of
moving software configuration services to customers
and partners.
International sales increased by DKK 18m (+30%)
from DKK 62m in 2022 to DKK 81m in 2023, presently
representing 35% of the total revenue.
For further details on cBrain’s revenue, see note 3 and 4
of the notes to the Consolidated Financial Statements.
Costs and capitalization
cBrain’s costs are primarily personnel expenses (wages
and salaries), business development, travel and office
expenditure including depreciation.
The increase in expenses from DKK 139m in 2022 to
DKK 158m in 2023 is primarily attributed to the growth in
employees.
cBrain’s intangible assets comprise capitalized
development costs relating to the development of F2
standard software. In 2023, DKK 26m was capitalized as
software under development.
Earnings Before Taxes (EBT)
Earnings before taxes (EBT) increased by 32m (+65%)
from DKK 49m in 2022 to DKK 81m in 2023. The EBT
margin is 34% in 2023 compared to 26% in 2022.
Tax
Current tax on profits for the year is DKK 16m,
adjustement for deferred tax is DKK 2m. The effective
tax rate for the year is 22,5%.
Intangible assets
In November 2023, F2 Version 11 was released, resulting
in the transfer of DKK 22m from Software under
Development to Released Software which is amortized
over 5 years. In 2023 released Software of DKK 15m
was depreciated. For more detailed information and
risk descriptions, please see note 2 in the notes to
Consolidated Financial Statements.
Property, plants, and equipment (PPE)
The total amount for property, plant, and equipment
stated in the Consolidated Financial Statements is
DKK 212m of which the new headquarters in
Copenhagen, Utzon House, has a carrying amount
of DKK 198m.
The Utzon House is held by the 100% owned subsidiary
cProperty ApS with cBrain A/S as the tenant and
therefore the lease agreement is reflected in the
parent company’s balance sheet in accordance with
the accounting practice with a carrying amount of DKK
57m corresponding to 10 years of discounted lease
payments. The agreement can be terminated earliest
after 5 years.
Liquidity and Capital Resources
In 2023, cBrain utilized its positive cash balance to make
an extraordinary repayment of DKK 45m on borrowings
associated with the purchase of Utzon House. This
repayment resulted in a reduction of cBrain’s cash
balance.
cBrain is confident that its cash and cash equivalents,
amounting to DKK 9m end of year 2023, together with
trade receivables totaling DKK 41m, and cash generated
by ongoing operations, will adequately cover its cash
requirements for the next 12 months and beyond.
Debt and Interest Rate Risk
At the end of year 2023, cBrain held outstanding
20-years variable-rate mortgage loans (borrowings), with
rate-fixing every 6 month, totaling a carrying amount of
DKK 51m, with repayments of DKK 2m scheduled within
the next 12 months.
The management routinely assesses its exposure to
interest rate fluctuations. It is not anticipated that the
cBrain achieves all-time high software sales both in Denmark and internationally
Financial Results 2023
12 | Annual Report 2023
projected change in interest rates over the next 12
months will notably impact on the financial statements.
cBrain has opted not to fix the interest rate, as the
associated cost is estimated to be higher than the
anticipated expenses attributed to forecasted
increased interest rates.
Shareholders’ Equity
Total equity has increased by DKK 60m and amounts to
DKK 229m as of December 31, 2023.
During the year cBrain repurchased 3.355 ordinary
shares. Management is authorized by the Annual General
Meeting to repurchase up to 10% of its share capital. In
the same period cBrain has sold 7.351 ordinary shares
primary to cBrain’s employees.
Dividend
The Board of Directors proposes for 2023 a dividend
of DKK 0,28 per share, equivalent to a total dividend
payment of DKK 6m to the shareholders.
Cash flows
Cash flow from operating activities in 2023 is DKK 86m.
Cash flow from investing activities is primarily related
to investments in software development projects and
amounts to DKK 27m.
Cash flow from financing activities consists of dividend
paid DKK 4m, and repayment of borrowings DKK 48m.
2018 2019 2020 2021 2022 2023
10.000
20.000
30.000
40.000
50.000
2019 2020 2021 2022 2023
40.000
80.000
120.000
160.000
200.000
240.000
2019 2020 2021 2022 2023
40.000
80.000
120.000
160.000
200.000
240.000
2018 2019 2020 2021 2022 2023
10.000
20.000
30.000
40.000
50.000
2019 2020 2021 2022 2023
40.000
80.000
120.000
160.000
200.000
240.000
2019 2020 2021 2022 2023
40.000
80.000
120.000
160.000
200.000
240.000
REVENUE split by
Sales in Denmark and International
Sales in Denmark
International sales
Software sales
Sales of Service
REVENUE split by
Software and Sales of Services
13 | Annual Report 2023
14 | Annual Report 2023
Three strategic initiatives primarily drive the strategy and
the company growth plan:
Continued growth through digitizing of mission
critical business processes based on cBrain
methods and the standard platform F2 for
government (F2 “classic”).
Boost positioning and growth through solutions
for Climate Governance.
Build F2 eco system by establishing partnerships
with
Cause
War in Europe, global inflation, and scarcity of energy
combined with sharply rising prices preoccupies
politicians and society and can draw investment away
from streamlining and modernizing the public sector
through digitizing.
Risk
That cBrain fails to deliver on the growth expectations in
the strategy and loss of key customers.
Mitigation
Sharpening cBrain’s value proposition to customers,
so that it becomes even more attractive to customers.
This applies, for example, to speed and precision in
delivery, reduction of risk for the customer through agile
implementation, where the solution is configured rather
than coded, and a strong price/performance ratio.
Probability
Despite signs of crisis in the world, the public sector has
an undiminished need for increased efficiency and for
meeting citizens’ expectations. The climate agenda and
the need for action seems obvious. For both conditions,
it applies that digitizing is a key element, why the
likelihood of a weakening demand is not expected to be
exceptionally large.
Cyber Attack
Cause
The number and scope of cyber-attacks are increasing.
cBrain delivers mission-critical solutions to the public
sector and is thereby exposed.
Probability
Low High
Risk Factors
Financial impact
Insignificant Very large
1
3
6
4
5
2
1. Decline in demand
2. Cyber attack
3. Fail to retain and attract talent
4. Fail to build F2 expert centers
5. Competitors build standard
platforms for Government
6. Legal risk from entering new
geographical markets
Risk Factors
Decline in demand
2
Decline in demand
Cyber Attack
Fail to retain and
attract talent
3
Fail to build F2 ecosystem
Competitors build standard
platform similar to F2
Legal risks entering new
geographical markets
• Key customers by supporting them with
methods, F2 platform and F2 Service Builder.
• External consultants who are engaged with
cBrain customers and thereby have domain
knowledge.
• Management consultancy companies who
acknowledge the power of a standard platform
built for government and can provide strategic
advisory and skilled resources in digital
transformation.
• IT consultancy companies who acknowledge
the power of a standard platform built for
government, have access to and can attract
clients who are interested in an innovative
approach.
2
15 | Annual Report 2023
Risk
Cyber-attacks, including breaches of confidentiality
through unauthorized access to networks and data and
taking control of customers’ data, pose an increased risk
to cBrain’s reputation as well as finances.
Mitigation
cBrain’s development and product strategy is based on
controlling the value chain itself. The standard platform
F2 is developed by highly educated and trained software
engineers and with a focus on the world market. Generic
concepts, independence, and security are deeply
embedded. Offshoring is not used.
cBrain’s processes are ISO 27001 certified and all cBrain’s
processes in relation to personal data are annually
reviewed and assessed by an external audit firm, which
issues SAE 3000 and 3402 statements to customers.
The CTO monitors, supported by the security officer,
on an ongoing basic threat level and make sure that
appropriate means are implemented. An ISO and ISAE
Management Review Team consisting of the COO, CTO,
CFO, CSO and the director for Service and Operations
and the security officer meet on at least quarterly basis
to oversee and evaluate policies and procedures.
Probability
The likelihood of cyber attacks is increasing in general,
and the public sector will increasingly be considered a
target as well.
Cause
cBrain’s business is based on skilled, talented, and
resolute employees. cBrain’s growth strategy requires
a continued influx of new skilled employees and
development of existing employees. It is vital to
maintain and further develop cBrain’s unique DNA and
position, which together define cBrain’s mission: to be a
trustworthy partner in the development of sustainable,
responsible, and transparent public administrations and
thus increase trust in democracy and its institutions.
Risk
A weakening of cBrain’s culture and DNA, including
its strong innovative power, could lead to the loss of
employees. A failure to develop cBrain’s reputation in
the market and in educational institutions could lead to
challenges in attracting talent.
Mitigation
cBrain’s management is very aware of the value of
the cBrain culture. The new domicile, a new strategy
that is broad and deeply anchored in the organization,
leadership training and coaching, continuing intensive
method development, well-developed onboarding
processes and a strong focus on a healthy work-life
balance are key elements in addressing this risk.
Combined with reinforcing cBrain’s narrative and value
proposition to the market as an actor that takes the
climate agenda and building strong, responsible public
organizations seriously, it contributes to a strong and
attractive identity. Furthermore, the partner strategy can
help meet the challenge of securing sufficient resources.
Probability
The battle for skilled employees is tough, but cBrain is
well prepared.
3
Fail to retain and attract talent
16 | Annual Report 2023
Fail to build F2 ecosystem
Cause
A central element in cBrain’s growth strategy is to
establish partnerships with customers, consultants,
and management consultancy firms. By providing
methods, knowledge, and tools together with the F2
standard platform and building a F2 ecosystem, cBrain
want to increase outreach and at the same time make it
possible for customers to increase focus on the digital
transformation of the organization and its business
processes.
Risk
That cBrain fails to market and deliver a sufficiently well-
developed concept and “infrastructure” around partners.
That cBrain’s value chain is not strong enough to support
an eco-system.
Mitigation
Since 2022, cBrain has invested heavily in organizational
capacity and thereby gain a strong foothold for
executing the strategy. The launch of F2 Service Builder
in June 2023 and the announcement of integration of
AI in August 2023 has increased interest in the market
and thereby lowering the risk for failing building the F2
eco-system. Still work to be done, but the willingness to
invest in continued development of methods, tools and
competences is extremely high and top management is
highly committed.
Probability
The probability that cBrain fails to build the foundation
for a F2 eco system and to onboard partners within the
strategic window is present, but it is regarded low to
medium based on the management’s commitment and
ability to execute.
Competitors build standard platform
similar to F2
Cause
cBrain sees the establishment of standard platforms
targeting the public sector as a natural development
of industries, as all industries standardize over time.
Therefore, it is a matter of time when it will happen.
Risk
When more players start building standard platforms
that are targeted and dedicated towards the public
sector, cBrain will be exposed to increased and direct
competition and thus lose some of the unique position
cBrain has in the market.
Mitigation
Through continued intensified and targeted investment
in R&D and in positioning to maintain the lead, which lies
partly in methods, partly in the standard platform and
the tools used to configure and onboard business
processes in F2’s process library.
Probability
It must be expected that standard
platforms for government will be
developed at some by point by other
vendors in the market thereby
increase competition.
Legal risks entering new geographical markets
Cause
cBrain is increasingly entering into new markets, where
business and commercial conditions are different and
sometimes challenging.
Risk
cBrain fails to foresee and mitigate those risks including
compromising cBrains values and culture and thereby
facing reputational and financial risks.
Mitigation
cBrain has developed and implemented policies and
processes for due diligence and ethical issues. Increased
attention from audit committee.
Probability
Below medium due to strong culture, education and
training, proper process and management awareness.
U.S. Ambassador Alan Leventhal and Professor Katherine Richardson
speaking at the cBrain International Climate Action event, April 2023
17 | Annual Report 2023
Our Business
18 | Annual Report 2023
Market and Value Proposition
cBrain has developed F2, a highly flexible digital platform
which can easily be configured to support all government
work processes, communication and case management.
With the F2 digital platform, cBrain offers government
organizations the opportunity to digitize based on
standard software instead of traditional custom-built
solutions. This eliminates a significant portion of the
IT work related to digital transformation and offers
government entities substantial business benefits through
cost reductions, faster delivery, and accelerated digital
transformation.
The F2 digital platform is a proven solution and it is based
on a model for digital bureaucracy and best practices, that
have been developed in close collaboration with Danish
government. Currently, more than 75 Danish government
entities, including most Danish ministries, use F2 as their
digital platform. Additionally, F2 has been successfully
implemented for government usage across 5 continents,
including countries such as Egypt, France, Germany,
Guyana, Kenya, Romania, The Emirates, UK, and USA.
The adoption of standard software represents a disruptive
and game-changing approach. It challenges the traditional
IT consulting industries that have relied on extensive
projects and hourly billing practices to establish their
business.
By challenging one of the largest industries, cBrain
faces a significant business opportunity. cBrain intends
to capitalize on this opportunity and is executing an
ambitious international growth plan. Key elements of the
growth plan include investing in ”F2 Climate software,”
which serves as a door opener and accelerator for
international sales, and investing in the ”F2-for-Partners”
concept, which allows cBrain to further scale its business.
The growth plan is based on organic growth. cBrain
delivers solid growth and earnings with a strong positive
cash flow, thereby financing its business without the need
for loans.
Transforming government through digitizing
represents a huge opportunity
Industry analysts estimate that by digitizing processes,
based on best practices and aligning the organization,
governments can enhance services, improve citizens’
quality of life, while generating savings of over $1 trillion
annually worldwide*. In parallel, government digitizing
is fundamental to achieving the 17 United Nations
Sustainable Development Goals (SDGs) and is a key tool
to combat climate change.
Governments around the world are therefore heavily
investing in digitizing, making government digitizing one
of the largest industries globally. However, government
organizations often struggle to translate ambitious
digitizing plans into deliverables and measurable
results. This is primarily due to the traditional digitizing
approach, relying on custom-built solutions and software
components, leading to large IT projects and budget
overruns.
The adoption of standard software
is a game-changing approach
Based on the F2 digital platform, cBrain radically
transforms this landscape. By leveraging the F2 standard
software and best practices developed through close
collaboration with Danish government, cBrain offers
government fast digital transformation at scale while
effectively sidestepping the pitfalls of large-scale IT
projects and budget overruns.
By leveraging standard software, cBrain offers government organizations fast digital transformation at scale
Configurable
Standard Software
Cost reductions, faster delivery,
and accelerated digital
transformation
*McKinsey & Company. Transforming Government Through Digitization.
19 | Annual Report 2023
The adoption of standard software is a disruptive and
game-changing approach. Digital transformation, based
on standard software instead of custom-built solutions,
eliminates a significant portion of IT-related project
tasks. The adoption of standard software brings massive
business benefits for government entities due to cost
reductions and faster delivery times. Additionally, it
poses a significant challenge to a substantial part of the
government IT industry, which currently heavily relies on
large projects and hourly billings.
At the core of digital transformation projects usually
lie three fundamental elements: process innovation,
organizational implementation, and the delivery of a new
IT system. However, many projects encounter major
impediments related to the delivery of a new IT system.
Projects based on custom-built are usually delayed and
often the IT-related work drains the majority of project
time and resources. At the same time, it leaves insufficient
capacity for crucial process innovation and organizational
efforts, diverting management focus.
In contrast, leveraging standard software eliminates a large
portion of the IT-related work, and the transformation
process gains momentum, accompanied by substantial
reductions in costs and risks. As a result, ample time
and resources are liberated, empowering government
organizations to prioritize process innovation and
organizational enhancements, while successfully
transforming and meeting their strategic business goals.
Minimizing the IT work frees resources for process
innovation and organizational development
When undertaking digital transformation projects based
on custom-built software, the major portion of project
hours is allocated to IT development. This focus on IT
development often becomes a hindrance to digital
transformation, as process innovation, organizational
change, and implementation are given lower priorities
and inadequate resources.
The switch to digital transformation, based on standard
software instead of custom-built software, drastically
reduces the complexity and the hours used for IT.
Custom-built solutions can take years to design and
deliver, while standard software can be configured and
deployed as a ready-to-use solution within weeks or a
few months.
The adoption of standard software thereby changes
the industry. It not only accelerates the speed of
digital transformation but also enhances system
quality while significantly reducing costs. Moreover, it
empowers organizations to focus on the actual benefits
of digitizing, driven through process innovation and
organizational change.
Configurable standard software
enables continued digital transformation
Custom-built solutions are born legacy. Custom-built
solutions are by nature hardcoded and they normally
dictate large-scale organizational implementation
projects, thereby leaving minimal room for learning and
subsequent adjustments. In contrast, modern standard
software, represented by F2, is remarkably flexible and
can be readily re-configured, continuously adapting to
changing user requirements, organizational development
and process rethinking.
Leveraging standard software means that government
organizations are no longer burdened with the
constraints of legacy systems and large-scale
implementation projects. Instead, standard software
facilitates continued optimization and automation of
service delivery as a natural progression and seamlessly
extending beyond the initial project phase.
The adoption of standard software thereby enables
government organizations to redesign their traditional
highly risky large-scale approach into a digital
transformation journey at grand scale, based on many
small steps, agility, and continuous learning, that
are aligned with continued process innovation and
organizational adjustments.
The adoption of
standard software is a
game-changing approach.
It empowers organizations to
focus on the actual benefits
of digitizing, driven through
process innovation and
organizational change.
20 | Annual Report 2023
cBrain serves customers across 5 continents.
F2 has proven that the model for
digital bureaucracy that was developed
in close collaboration with the Danish
government can be applied
worldwide.
cBrain solutions around the globe
cBrain HQ
Customers and Solutions
21 | Annual Report 2023
The F2 Software
F2 is built for government, based on Danish government
best practices and the model for digital bureaucracy
cBrain has developed F2 in close collaboration with
the Danish government, and today cBrain has invested
more than 400.000 hours into developing the F2 digital
platform.
The development began in 2006, with a focus on studying
government processes and resources that facilitate
service delivery. A groundbreaking realization was that
government organizations function in fundamentally
similar ways, based on the fundamental principles of
the bureaucracy described by German philosopher Max
Weber. This led to the development of generic model for
government work known as ”Digital bureaucracy.”
Being able to model government processes is a game-
changer. Based on the model for digital bureaucracy,
it has been possible to develop standard software for
government usage, that supports government processes
digital and replaces custom-built solutions.
One fully integrated digital platform, supporting all
government processes and compliance requirements
Built for government, F2 is a full stack and highly secure
digital platform. Accessible from PCs, tablets, and mobile
devices, F2 provides formal and informal communication
capabilities, meets all compliance and auditing
requirements related to case production and content
creation, and allows control of organizational roles and
responsibilities.
Additionally, F2 supports both generic workflows like
approvals, hearings, and Freedom of information (FOI)
request, as well as customer-specific workflows that
facilitate citizen-facing processes from self-service to
case processing and filing, along with long-term archiving.
F2 is a highly flexible digital platform which can easily be
configured to support all government work processes,
communication and case management. Based on the
built-in Administrator menu, privileged users can define
and set up support for customer specific organization,
routines and workflows. This includes a highly efficient
approach to process and workflow automation based
on a process library. Moreover, F2 is a fully open platform
that easily interfaces with other IT systems through
an extensive set of API’s (Application Programming
Interfaces).
F2 thereby represents a unique technology. F2 offers
government organizations the opportunity to digitize
based on standard software instead of traditional
custom-built solutions, and due to the flexibility and
configuration capabilities, F2 is suitable for nearly any type
of government organization, from ministries to agencies,
cities, and municipalities.
F2 can easily be configured to support any type of
government workflow and process
With F2, it is possible to define customer-specific
workflows, supporting both internal processes and external
citizen-facing processes end-to-end, without making any
change to the standard software. A workflow is described
by a process sheet, which is attached to a case type and
stored in the process library.
One fully
integrated platform
offers out-of-the-box all the functions
a government authority needs
to run it’s administration
Standard software
ready for operation without custom
coding, thereby minimizing risk and
implementation time while redusing a
lot of consultancy work
Process templates
Configured for individual mission
critical processes, covering all steps
from self-service to case processing,
filing and management reporting
22 | Annual Report 2023
The process sheet is open source and technically referred to as
a declaration. The process sheet functions in a manner similar
to a sheet in a spreadsheet, and the process sheet is stored
totally separated from the basic F2 standard software. It is
therefore possible, seamless and fully automated, to upgrade
F2 to new versions, regardless of how extensive F2 has been
configured.
For advanced users, complex workflow and process
declarations are built using the F2 toolchain. However, for
simpler workflows and processes, cBrain offers an interface
to the toolchain called F2 Service Builder. This allows users
with limited technical experience to define workflows easily by
simply filling out a spreadsheet.
F2 Service Builder allows users to digitize workflows
simply by filling out a spreadsheet
The F2 Service Builder allows business users and process
consultants to digitize workflows easily by filling out a
spreadsheet. This includes the definition of end-to-end
workflows, encompassing self-service, case processing, filing,
and even data extracts and dashboards for controlling and
management reporting.
Users simply input the process definition into a spreadsheet,
detailing all the necessary process steps, including checklists,
automated email and letter generation, and more. The
completed spreadsheet is then uploaded to the F2 standard
software. Should users wish to modify the process definition,
they can simply make changes to the spreadsheet and upload
the updated version, ready to run.
It may still take time to understand and design a government
process, but with the F2 Service Builder, the IT work involved
is significantly reduced or almost eliminated, allowing for the
rapid setup of well-functioning processes in just a few hours.
Additionally, process definitions can be easily reused by
copying an existing process, revising the copied sheet, and
uploading it as a new process.
As a result, the F2 Service Builder provides a unique and
efficient approach for government organizations seeking to
digitize a large number of processes at a high speed.
F2 Service Builder is a unique tool for both
customers and partners
By allowing organizations to develop and reuse smart
processes, the F2 Service Builder becomes an extremely
efficient tool for implementing best practices and driving
standardization throughout the organization.
This makes the F2 Service Builder a unique tool for external
partners who offer large-scale digital transformation to
government organizations. With this tool, consulting partners
specializing in process optimization and automation can deliver
fast and agile digital transformation solutions.
Thanks to its flexibility, the process sheets can be easily
modified to align with future changes in processes or
organizational structures. This enables external consulting
partners to offer government customers a truly agile
approach, focusing on step-by-step process innovation and
organizational development. Concurrently, they can build and
provide pre-configured process libraries for their government
customers, based on well-established best practices.
As a result, cBrain expects the F2 Service Builder to become a
pivotal tool within the F2 ecosystem of partners. Through close
collaboration with customers and partners, cBrain continuously
enhances the functionality of the F2 Service Builder.
F2 Service Builder.
Create, maintain and modify
workflows, from self-service
to case processing and
filing - simply by filling out a
spreadsheet.
23 | Annual Report 2023
Customers and Growth Plan
F2 is a proven solution
Today more than 75 Danish government organizations,
including almost all of the Ministries, use F2 as their
digital platform. They run on the exact same software
and they typically upgrade, fully automated, once a year
for new releases of the F2 software.
Additionally, F2 has been successfully implemented
for government usage across 5 continents, including
countries such as Egypt, France, Germany, Guyana,
Kenya, Romania, The Emirates, UK, and USA.
The cBrain business model is highly scalable
The adoption of standard software represents a
disruptive and game-changing approach. By adopting
standard software instead of custom-built solutions, it is
possible to eliminate a significant portion of the IT work
related to digital transformation.
This offers government entities substantial business
benefits through cost reductions, faster delivery, and
accelerated digital transformation, and in addition it
challenges the traditional IT consulting industries that
have relied on extensive projects and hourly billing
practices to establish their business.
With F2 cBrain challenges one of the largest industries
and faces a significant business opportunity.
cBrain intends to capitalize on this opportunity and is
executing an ambitious international growth plan.
Key elements of the growth plan include investing in
”F2 Climate Software,” which serves as a door opener
and accelerator for international sales, and investing in
the ”F2-for-Partners” concept, which allows cBrain to
further scale its business.
The growth plan is based on organic growth. cBrain
delivers solid growth and earnings with a strong positive
cash flow, thereby financing its business without the
need for loans.
The business model is international and highly scalable,
due to F2 product and the partner strategy. Based on
generic government principles and the model for Digital
Bureaucracy, F2 digital platform has been proven itself to
support governments across the world. cBrain is building
an eco-system of international partners, who offers
government digital transformation by leveraging the F2
standard software. Thereby cBrain can grow without the
linear restrictions of building its own organization.
F2 Climate Software
The fight against climate change and global warming
is driven and funded by government, and by use of
legislation and financial incentives, politicians have a
very strong toolbox. However, political decisions must
be implemented by strong and accountable institutions.
The reality is therefore that it often take years to execute
decisions due to bureaucratic delays, fueled by the lack
of digitizing and inefficient IT systems.
Climate software helps government organizations to
accelerate the deployment of climate action initiatives.
Highly transparent while minimizing costs, the software
supports a broad portfolio of processes from approvals
and grant management to inspections.
Climate software means speed of action. Closing the
time gap between political decision and bureaucratic
execution.
In November 2020 the Danish Parliament adopted
a new legislation to take carbon rich farmland out
of production. Already in February 2021, the Danish
Environmental Protection Agency (EPA) managed to run
the first round of the 300 million Euro program.
The Danish farmland program has a potential to reduce
CO
2
(Carbon Dioxide) emissions by up to 20%. By use
of government climate software, the Danish EPA has
documented fast track execution, and by executing
within months instead of years, Danish government is
now leading by example.
F2 Climate Software is standard software. It is based on
reusable open source configuration and best practices
developed in close collaboration with the Danish EPA.
Government climate software can therefore easily be
reused across the world, and Denmark has a strong
tradition in sharing best practices with other countries.
24 | Annual Report 2023
Today the majority
of government
organizations are served
by a huge industry of IT
system integrators and
consulting firms, that
have established their
business and heavily rely
on extensive projects and
hourly billing practices.
While this industry continues
to deliver custom-built solutions
based on software components
and application tools, governments
struggle to convert ambitious digitization
plans into deliverables and measurable
results.
The F2-for-Partner concept allows government
themselves, or by help of external consulting firms, to
take over the configuration and implementation of F2.
By leveraging standard software, a large portion of the
IT-related work is eliminated. This frees up time and
resources, and empowers government organizations and
their digital transformation partners to prioritize process
innovation and organizational enhancements, while
successfully transforming and meeting their strategic
business goals.
With the F2-for-Partner concept, cBrain enables a
new generation of government digital transformation
firms, who based on in-depth understanding of
government best practices offer process innovation and
organizational enhancements.
By adopting standard software as the basis for digital
transformation, these new consulting firms will
enable government organizations to redesign their
traditional highly risky large-scale initiatives into digital
transformation journey at scale, based on many small
steps, agility, and continuous learning, that are aligned
with continued process innovation and organizational
adjustments.
cBrain continues to develop the
F2 standard software and best practices
This means happy users and low total cost of ownership.
Software continuously has to be maintained due to
changing user requirements and technology changes,
and custom-build solutions erode over time because
they are simply too costly and time consuming to
maintain.
With standard software this is very different. All
government organizations who use F2 are on a regular
basis upgraded to the latest version. The club of F2
government user organizations, with more than 100
members internationally, face significantly lower total
costs of ownership, while avoiding the high ongoing
costs of systems maintenance.
It often takes a very long time to develop custom-built
solutions. Custom-built solutions are therefore often in
risk of being outdated when they are delivered, because
user requirements or technical standards have changed
while the solution was built.
At the same time, it is very hard to maintain and upgrade
custom-built solutions, the result being that users have
to live with the burden of outdated IT-systems.
Lisbeth Knudsen, Strategic Director at Mandag
Morgen speaking at a cLounge event about AI in
public case management, August 2023
As an example, a solution designed for the Danish EPA,
was replicated and deployed by Guyana government
to protect and regulate the trade of endangered
species and animals in the Amazon rainforest. Thereby
demonstrating how governments across the world
can reuse and work together to protect and restore
biodiversity.
Working with partners, cBrain can offer fast digital
transformation for governments across the world
A key element of the cBrain growth plan is the F2-for-
Partners concept, which enables a new generation of
government digital transformation partners.
25 | Annual Report 2023
In contrast, standard software offers users continuous
access to new and upgraded versions of the software.
With the ability to easily re-configure custom specific
processes and system setup, independently of upgrades,
the F2 standard software can be adapted to changing
user requirements.
Reusing best practices enables fast track
organizational deployment
The digital bureaucracy model is based on government
best practices, which is the foundation for the design
and functions of the F2 standard software. In parallel
with the F2 digital platform, cBrain has also developed
a best practice implementation method, called the “F2
Implementation Method”.
Digital transformation based on best practices and
reuse of standards drive and accelerate change. But
to ensure successful transformation, it is important
to take organizational readiness into account. The
F2 Implementation Method is therefore based on
transformation waves.
With this approach, organizational implementation
is orchestrated by deploying best practices and
functionality aligned with organizational change. This is
possible because it is easy to reconfigure the standard
software in parallel with process reengineering and
organizational development.
The wave model is based on 3 elements: a set of overall
best practice principles, deployment of generic routines
and driving departmental process digitizing based on
case types.
The overall principles set the overall stage for digital
ambitions and the speed of change. The overall
principles guide the deployment of generic routines and
functionality, leading to a specific “Wave Scheme” which
directs both an organizational (business) project plan
and a technical project plan.
By learning from implementation
projects across the world, the F2
best practice implementation
method is continuously
developed.
The F2 best practice implementation method is offered
for partners, as part of the F2-for-partners concept,
thereby allowing partners to offer global government
best practices as part of their digital transformation
services.
A delegation of High Level Water Officials from China, Thailand, Indonesia, Malaysia, Vietnam and the
Phillippines visited cBrain in August 2023 on the occasion of The World Badminton Championship in Denmark.
26 | Annual Report 2023
Applied Climate Software for Governments
Licensing of Trade
Endangered Species
(CITES)
Denmark & Guyana
Urban Roof-top
Gardening
Denmark
Climate
Forest Grants
Denmark
Wildlife
Regulation
Denmark
Protection of
Biodiversity
Access
Benefit Sharing
Nagoya-convention
Denmark
Circular
Economy
and Waste
Genetic
Resources
International Waste
Export and Import
Denmark
License and
Control of Genetically
Modified Organisms
Denmark
Extended Producer
Responsibility
Kenya
Clean water
and air
Protection
of Nature
Lake and Stream
Restoration
Denmark
Environmental
Support in the Arctic
Denmark
EU Natura 2000
Protected Areas
Denmark
Waste Water
Control
Denmark
Dredging
Denmark
Home Woodstove
Removal
Denmark
Sustainable
Land Initiative
USA
Energy
Efficiency
Sustainable
Land Use
Energy Efficiency
in Companies
Egypt
Climate
Lowlands
Denmark
Home
Energy Audit
Denmark
Heat Pump
Grant
Denmark
Inflation Cash
Assistance
Denmark
Drinking Water
Protection
Denmark
27 | Annual Report 2023
Shareholders
28 | Annual Report 2023
Shareholder Information
Share Capital
cBrain’s share capital consists of 20 million shares with a
nominal value of DKK 0,25 each. The company’s shares
consist of only one share class, and each share thus holds
one vote and the same rights.
The company’s articles of association do not impose any
limits on ownership and voting rights. The shares must be
registered by name. The share’s short name is CBRAIN,
and it is registered under the ISIN code DK0060030286.
Additional information on shareholder relations and
comprehensive information about the group can be found
on cBrain’s website at www.cbrain.com/investor.
Ownership
As of the end of 2023, cBrain has approximately 14.700
shareholders from 40 different countries (in 2022, there
were around 14.500 shareholders from 45 countries).
The following shareholders have informed cBrain that
they own 5% or more of the company’s share capital:
Putega Holding ApS, Hellerup, holds a 42,66%
ownership and voting interest.
cBrain A/S owns a total of 437.187 of its own shares at
the end of 2023, equivalent to 2,19% of the share capital.
Dividend Policy
Dividends are approved by the ordinary Annual General
Meeting.
cBrain aims to maintain a strong financial position that
is aligned with the company’s level of activity, ensuring
it can uphold its strategic goals, including continued
investment in new products and markets.
The management continuously assesses the company’s
capital needs in relation to its results and proposes
dividend recommendations to the Annual General
Meeting based on this assessment.
Investor Relation
cBrain has defined quality, continuity, and consistency
as the goals for its Investor Relations (IR) activities.
Simultaneously, within the framework of the law, the
company aims to engage in an open and active dialogue
with existing and potential shareholders, analysts, and
other stakeholders interested in the company’s business
development and financial position. From July 1, 2023, all
communication to shareholders has been changed
to English.
All information with potential significance for stock price
formation is disclosed via Nasdaq and can be promptly
found on the company’s website. Interested investors
can subscribe to stock exchange announcements and
other news on the company’s website
www.cbrain.com/investor. All relevant information will
always be accessible through the website.
cBrain’s management is pleased to participate in investor
and shareholder meetings where previously disclosed
information can be elaborated upon and discussed.
Inquiries regarding the company’s investor relations and
stock market relations can be directed to:
Ejvind Jørgensen, CFO & Head of Investor Relations
(phone: +45 7216 181, e-mail: [email protected]).
Proposal for the Annual General Meeting
Due to cBrain’s satisfactory performance, the board
recommends to the Annual General Meeting to increase
dividend by +33%. This would raise the dividend from
0,21 kroner per share in 2022 to 0,28 kroner per share
in 2023. Furthermore, the board proposes that the
company be authorized to acquire its own shares
for a one-year period, representing up to 10% of the
company’s share capital. Lastly, the board present and
revised and updated remuneration policy.
Annual General Meeting
The company’s Annual General Meeting will be held on
Thursday, April 24, 2024, at 16:00. The Annual General
Meeting will take place at the company’s address:
Kalkbrænderiløbskaj 2,
2100 Copenhagen,
Denmark
April 24, 2024
April 24, 2024
August 21, 2024
November 7, 2024
February 20, 2025
Quarterly Announcement 1st
quarter 2024
Annual General Meeting
Publication of the Interim Report
for the first half of 2024
Quarterly Announcement 3rd
quarter 2024
Publication of annual report 2024
Financial calendar 2024
29 | Annual Report 2023
January 2, 2023
January 11, 2023
January 19, 2023
January 20, 2023
January 30, 2023
February 17, 2023
February 23, 2023
February 23, 2023
March 14, 2023
March 22, 2023
April 19, 2023
May 3, 2023
June 6, 2023
June 14, 2023
Copenhagen Municipality chooses cBrain F2 as the new grant
administrative system in the Culture and Leisure Administration
cBrain enters into an agreement with the Danish Immigration
Service
cBrain adjusts earnings before tax (EBT) upwards
cBrain to deliver solutions for energy schemes (grants) at the
Danish Energy Agency
cBrain has established a joint venture company in Ghana
cBrain has entered into an agreement in Ukraine supporting
the reconstruction of the municipal infrastructure in Makariv
International growth plan to pave the way for revenue growth
of 30%
cBrain has successfully initiated the next steps in the
international growth plan
cBrain enters into an important contract in Germany
Notice of general meeting
cBrain expects to release the first version of F2 Service Builder
before the summer holidays
cBrain enters into an agreement with the Ministry of the
Interior and Health
cBrain has taken an important step on the growth journey and
releases F2 Service Builder
cBrain to deliver F2 for management services in Aarhus
Municipality
June 28, 2023
June 30, 2023
July 6, 2023
August 8, 2023
August 15, 2023
August 22, 2023
August 23, 2023
September 11, 2023
November 2, 2023
November 29, 2023
December 14, 2023
December 18, 2023
January 15, 2024
February 8, 2024
cBrain enters into an agreement with the Agency for Labor
Market and Recruitment
June 30, 2023 cBrain has entered into a partnership and won
first order in Romania
cBrain to test F2 Climate Software with the Kenyan National
Environmental Management Authority (NEMA)
cBrain upgrades 2023 financial guidance
cBrain announces AI for Government Initiative
Two more Danish public organizations join the F2 user group
cBrain reports all-time high revenue growth of 39% and
earnings before tax (EBT) of 35%
cBrain has established cBrain India, a joint venture subsidiary in
Tamil Nadu, India
cBrain is well on track with the 2023-2025 growth plan
cBrain joins the OMX Copenhagen Benchmark Index
The Tree Crop Development Authority in Ghana and cBrain
Sign MoU for a 6-year Project
cBrain has won a new long-term contract with the Danish
Ministry of Finance
cBrain beats expectations on top and bottom lines as
subscription revenue jumps
cBrain and the German-Danish Chamber of Commerce have
taken initiative to reuse Danish e-government experiences in
Germany
Company Announcements and Press Releases since January 1, 2023
From January 1, 2023, until the publication of the 2023 annual report, cBrain has issued the following announcements to Nasdaq Copenhagen,
which can be found on the company’s website www.cbrain.com/investor
30 | Annual Report 2023
Governance
31 | Annual Report 2023
Corporate Governance
The Board of Director’s stance is that the primary
objective is to ensure competent and purposeful
leadership and the interests of all stakeholders.
cBrain has a single class of shares, and the company’s
articles of association contain no limits on ownership
and voting rights. The Board of Directors’ assessment is
that both the share and capital structure are currently
satisfactory.
If an offer is made to acquire the company’s shares, the
Board of Directors, in accordance with legislation and
the company’s stated policy, will approach this openly
and communicate the offer to shareholders along with
the Board of Directors’ comments.
The Annual General Meeting is the company’s highest
decision-making authority, and the Board emphasizes
that shareholders receive a thorough briefing on the
matters decided at the Annual General Meeting.
All shareholders are entitled to attend the company’s
Annual General Meeting provided they have requested
an admission card. At the Annual General Meeting,
shareholders can pose questions to the board and
management, and shareholders can also submit written
proposals for topics they wish to include on the agenda
for the Annual General Meeting in good time before the
Annual General Meeting.
After two years of virtual Annual General Meetings in
2020 and 2021 due to COVID-19, the Board’s stance is to
maintain the Annual General Meeting as a physical event
and possibly expand it with virtual participation over
time, which the Articles of Association allow for. A more
detailed description of Annual General Meeting-related
matters can be found on the company’s website
www.cbrain.com/general-meeting.
cBrain’s management continuously adheres to the
recommendations for good corporate governance, most
recently updated in December 2020. You can find this
code at: www.corporategovernance.dk.
cBrain’s statutory corporate governance statement (the
corporate governance recommendations) can be found
on the company’s website under Investor Relations:
Various policies and procedures related to corporate
governance, as well as charters for board committees
can be found there.
All employees receive yearly training and perform a test
in Code of Conduct, security policy and procedures and
data ethics.
32 | Annual Report 2023
Corporate Responsibility
Since 2018, cBrain has been a participant in the UN
Global Compact, thereby endorsing the UNGC’s Ten
Principles. In this context, cBrain has identified SDG16 -
Peace, Justice, and Strong Institutions - as a focus area.
The focus on access to justice and building effective,
accountable, and inclusive institutions at all levels aligns
with cBrain’s mission.
33 | Annual Report 2023
In 2020, sustainability efforts were expanded to include
SDG 13, Climate Action, and SDG 17, Partnerships, as
part of cBrain’s focus on the development of Climate
Software. Under the heading ”Closing the time gap,”
cBrain assists authorities in rapidly implementing
climate and environmental regulations through F2, thus
accelerating the achievement of intended outcomes.
The statutory report on corporate responsibility
as required by section 99a of the Danish Financial
Statements Act, is available on the company’s website
under Investor Relations: www.cbrain.com/csr-reports .
Data Ethics
In 2021, the Board of Directors drafted and adopted a
data ethics policy in accordance with section 99d of the
Danish Financial Statements Act. This policy addresses
the types of data used, how it is obtained, how it is
utilized, the basis for ethical considerations, and the
follow-up procedures.
This policy has contributed to increased
awareness of data ethics in
product development cycle
and in the design and
implementation
process of
customer
solutions.
The responsibility for data ethics lies with the
management, with the Audit Committee overseeing
its implementation. The policy can be found on the
company’s website under Investor Relations:
The report on data ethics, as required by section 99d of
the Danish Financial Statements Act, is available here:
Tax policy
cBrain developed a tax policy in 2019, which was last
revised in 2021. Through this tax policy, cBrain aims
to elaborate and express the company’s stance on
tax matters. This is done by adopting a value-based
approach, where principles and ethical norms for the
company’s behavior are expressed.
It is a conscious choice as it aligns with the company’s
values, culture, and approach. The policy serves as a
guideline and reference point to steer the company in
its decisions. The complete tax policy can be found here:
www.cbrain.com/corporate-governance
Climate and Environmental Policy
In 2023 the company developed a new Climate and
Environmental policy and during 2023 cBrain achieved
an ISO 14001 certification.
The policy can be found here:
www.cbrain.com/s/Climate-and-Environmental-Policy.
pdf
Management
The Board of Directors and the executive management
establish and approve overarching policies, procedures,
and controls related to the financial reporting process.
The executive management continuously monitors
compliance with relevant laws and regulations
concerning financial reporting and informs the Board of
Directors accordingly.
The Board of Directors’ Responsibilities
The Board of Directors defines the company’s objectives
and strategies and approves the overall budgets and
action plans. The Board of Directors exercises general
oversight of the company, ensuring that it is managed in
a proper manner and in compliance with legislation and
articles of association.
The Board of Directors is primarily responsible for
ensuring that cBrain has the necessary procedures in
place for managing the company’s risks and that these
procedures are effectively implemented throughout the
company.
The Audit Committee consist of two independent Board
Members, and the scope of the committee’s work is
defined in a separate charter. The committee held four
meetings in 2023, with 100% attendance.
The remuneration committee consist of two members,
and the committee held two meetings in 2023, with
100% attendance.
The framework for the Board of Directors’ work is
defined in a set of rules and procedures, which is
34 | Annual Report 2023
reviewed at least once a year and adjusted as needed.
The rules and procedures include procedures for
the executive management’s reporting, the working
methods of the Board of Directors, as well as a
description of the Chair of the Board’s responsibilities
and areas of authority.
At least four Board of Directors Meetings are held
each year. In addition, the Board of Directors meets as
required. In 2023, four Board Meetings were held, and
two member was absent in one meeting.
Composition of the Board of Directors
The company is governed by a Board of Directors
consisting of five members elected by the Annual
General Meeting, two of whom are independent.
At cBrain’s Annual General Meeting in April 2023, Henrik
Hvidtfeldt and Lisa Charlotte Herold Ferbing were re-
elected to the board for a two-year period. Lisa Charlotte
Herold Ferbing is independent.
At the Annual General Meeting in April 2022, Peter
Loft, Thomas Qvist, and Per Tejs Knudsen were re-
elected to the board for a two-year period. Peter Loft is
independent.
At the General Meeting in 2023 the company’s Articles
of Association was changed. Board Members are in the
future elected for a period of one year. Re-election is
possible.
The composition of the Board of Directors, including
Board Committees, is chosen to ensure continuity and
representation of key competencies for cBrain. The goal
is to secure the company’s ongoing development and
achievement of its long-term objectives.
The Board of Directors has experience and expertise
in areas such as strategy, innovation, management,
technology, finance, law, social development, and the
public sector.
The independent Board Members have broad experience
in management and board work, including at publicly
traded companies.
Remuneration for the Board of Directors and
Management
cBrain has established remuneration for the Board of
Directors and Management at a level reflecting the size
and complexity of the company.
For the fiscal year 2023, the proposed total remuneration
for the Board is DKK 350.000 (2022: DKK 350.000). The
total remuneration for the executive management in
2023 amounts to DKK 5,0m (2022: DKK 4,9m).
The distribution of renumeration for the Board of
Directors and executive management can be found on
the company’s website under Investor:
www.cbrain.com/s/Remuneration-Policy-UK.pdf
Stock Options and Incentive Programs
cBrain has provided certain employees with the
opportunity to receive remuneration in the form of
shares in accordance with Danish Law (LL § 7P). Please
refer to note 8 - Staff costs for further details.
The Board of Directors continuously considers whether
stock option programs can be established for the
employees.
Auditors
cBrain’s independent auditor is elected by the Annual
General Meeting for one year at a time. Prior to the
recommendation for election at the Annual General
Meeting, the Audit Committee and subsequently
the Board of Directors critically assess the auditor’s
independence, competence, and more.
During the audit of the annual report, accounting
practices in the most significant areas are also audited.
At the General Meeting in 2022 EY Godkendt
Revisionspartnerselskab was elected as independent
auditors for the first time. EY was re-elected in 2023.
35 | Annual Report 2023
Henrik Hvidtfeldt - Chair
MSc in Engineering from
the Technical University of
Denmark, HD in International
Business from the Copenhagen
Business School, and a
Commercial Pilot. Chair of
cBrain (since 2006). Chair of
Flight4000 A/S, Board Member
of XENA Networks ApS. 61
years old. Number of cBrain
shares: 8.300.
Elected to the Board at the
Annual General Meeting in 2023
for a 2-year term. First elected
to the Board in 2006. Henrik
Hvidtfeldt is not considered
independent due to the 12-
year tenure limit. Chair of the
Remuneration Committee.
Per Tejs Knudsen
CEO and founder of cBrain A/S
and Director of cProperty ApS.
Owner of Putega Holding ApS.
Master of Science in Engineering
from the Technical University of
Denmark and HD in Accounting
from the Copenhagen Business
School. Member of the Advisory
Board at the Institute for
Informatics and Mathematical
Modelling at the Technical
University of Denmark. Member
of the Council at the Technical
University of Denmark. Member
of the Danish Academy of
Technical Sciences (ATV). 65
years old. Number of cBrain
shares, through Putega Holding
ApS: 8.532.000.
Elected to the Board at the
Annual General Meeting in 2022
for a 2-year term. First elected
to the Board in 2006. Member of
the Remuneration Committee.
Thomas Qvist
CTO at cBrain A/S. Director and
owner of Felida ApS. Master of
Science in Engineering from
the Technical University of
Denmark. 58 years old. Number
of cBrain shares: 715.945.
Elected to the Board at the
Annual General Meeting in 2022
for a 2-year term. First elected
to the Board in 2006.
Peter Sam Loft
Master of Laws (Cand.Jur.) from
the University of Copenhagen in
1980. Tax advisor at Bachmann
Partners (since 2019). Adjunct
Professor at CBS/University of
Copenhagen. Member of the
Board for Øfeldt Centres. 66
years old. Number of cBrain
shares: 0.
Elected to the Board as an
independent member at the
Annual General Meeting in 2022
for a 2-year term. First elected
to the Board of Directors in
2014. Member of the Audit
Committee.
Lisa Charlotte Herold Ferbing
Master of Laws (Cand.Jur.) from
the University of Copenhagen
in 1982. Independent
management consultant, CEO
of Casa Monte Verde ApS and
professional board member
(since 2013). Chair of DANSK
IT. Chair of Gudme Raaschou
Investment Fund. Chair of Lån
& Spar Investment Fund and IA
Invest. Member of the Board
for Invest Administration A/S.
64 years old. Number of cBrain
shares: 0.
Elected to the Board of
Directors as an independent
member at the Annual General
Meeting in 2023 for a 2-year
term. First elected to the Board
of Directors in 2019. Chair of the
Audit Committee.
Board of Directors
Executive
Management
Per Tejs Knudsen
CEO
Thomas Qvist
CTO
36 | Annual Report 2023
Statements
37 | Annual Report 2023
Executive Management
Board of Directors
Management Statement
38 | Annual Report 2023
Independent Auditor’s Report
Report on the audit of the Consolidated Financial Statements and Parent Company Financial Statements
39 | Annual Report 2023
40 | Annual Report 2023
Identify and assess the risks of material
Obtain an understanding of internal control relevant
Evaluate the appropriateness of accounting
Conclude on the appropriateness of Management’s
41 | Annual Report 2023
CVR no. 30 70 02 28
State Authorised
Public Accountant
42 | Annual Report 2023
Financials
43 | Annual Report 2023
Consolidated Financial Statements
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
44 | Annual Report 2023
Consolidated Financial Statement
45 | Annual Report 2023
Consolidated Statements of Comprehensive Income
CONSOLIDATED INCOME STATEMENT
EARNINGS PER SHARE (EPS)
T.DKK
Notes 2023
2022
T.DKK
Notes
2023
2022
Revenue
3,4
Basic EPS
19
Diluted EPS (DEPS)
Cost of services
5
-2.152
-1.083
External expenses
6,7
-35.683
-29.135
Staff costs
8
-121.181
-110.423
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Research and development costs capitalized
T.DKK
Notes
2023
2022
Depreciation and amortization expense
9
-21.165
-18.853
Operating profit (EBIT)
Profit for the period
Other comprehensive income
Financial income
10
Total comprehensive income for the year
Financial expenses
11
-5.364
-1.171
Earnings before income taxes (EBT)
Income taxes
12
-18.176
-10.545
Profit for the year
Consolidated Financial Statement
46 | Annual Report 2023
Consolidated Balance Sheet
ASSETS
EQUITY AND LIABILITIES
T.DKK
Notes 2023
2022
T.DKK
Notes
2023
2022
Intangible assets
13
Share capital
Property, plant and equipment
14
Retained earnings
Other financial assets
15
Proposed dividend
Total non-current assets
Total equity
19
Trade receivables
16
Deferred tax liabilities
20
Contract assets
17
Borrowings
21
Other receivables
Total non-current liabilities
Receivables
Trade payables
Cash and cash equivalents
Contract liabilities
17
Current tax liabilities
18
Total current assets
Borrowings
21
Other payables
22
Total assets
Total current liabilities
Total liabilities and equity
Accounting policies applied
1
Accounting estimates
2
Commitments and contingencies
23
Related party transactions
24
Financial instruments and -risks
25
Capital structure
26
Events after the balance sheet date
27
Key ratios
28
Consolidated Financial Statement
47 | Annual Report 2023
Consolidated Statement of Changes in Equity
2023
2022
T.DKK
Share
capital
Retained
earnings
Proposed
dividend
Total
equity
T.DKK
Share
capital
Retained
earnings
Proposed
dividend
Total
equity
Equity, January 1 5.000
Equity, January 1 5.000
Net profit for the year 0
Net profit for the year 0
Comprehensive income for the period
Comprehensive income for the period
Share-based payments 0
Share-based payments 0
Purchase of treasury shares 0
-454
-454
Purchase of treasury shares 0
-666
-666
Sale of treasury shares 0
Dividends 0
-3.400
-3.326
Dividends 0
-4.200
-4.108
Transactions with owners 0
-358
-3.400
-3.758
Transactions with owners 0
-4.200
-3.500
Equity, December 31 5.000
Equity, December 31 5.000
Consolidated Financial Statement
48 | Annual Report 2023
Consolidated Cash Flow Statement
T.DKK
2023
2022
T.DKK
2023
2022
Operating profit (EBIT)
Investments in intangible assets
-26.404
-20.949
Depreciation and amortization
Investments in property, plant, and equipment
-703
-205.494
Change in working capital
Cash flow from investing activities
-27.107
-226.443
Change in trade- and other receivables
-12.521
Change in contract assets and -liabilities
-12.229
Repayment of lease liabilities
-1.078
Change in trade- and other payables
Borrowings
Cash flow from operating profit
Repayment of borrowings
-48.073
-1.242
Dividends paid, net
-4.108
-3.326
Share-based payments
Cash flow from financing activities
-52.181
Financial items
-3.885
-1.081
Income taxes paid
-7.452
-6.633
Cash and cash equivalents, January 1
Cash flow from operating activities
Net cash flow for the period
-69.956
Cash and cash equivalents, December 31
Consolidated Financial Statement
49 | Annual Report 2023
Notes to the Consolidated Financial Statement
Consolidated Financial Statement
50 | Annual Report 2023
Consolidated Financial Statement
51 | Annual Report 2023
Note 1 - Accounting policies (continued)
Consolidated Financial Statement
52 | Annual Report 2023
Note 1 - Accounting policies (continued)
Consolidated Financial Statement
53 | Annual Report 2023
Consolidated Financial Statement
54 | Annual Report 2023
Consolidated Financial Statement
55 | Annual Report 2023
Consolidated Financial Statement
56 | Annual Report 2023
Note 8 – Staff costs (continued)
Consolidated Financial Statement
57 | Annual Report 2023
Consolidated Financial Statement
58 | Annual Report 2023
Note 13 – Intangible Assets (continued)
Consolidated Financial Statement
59 | Annual Report 2023
Consolidated Financial Statement
60 | Annual Report 2023
Note 14 – Property, plant and equipment (continued)
Consolidated Financial Statement
61 | Annual Report 2023
Consolidated Financial Statement
62 | Annual Report 2023
Consolidated Financial Statement
63 | Annual Report 2023
Consolidated Financial Statement
64 | Annual Report 2023
Consolidated Financial Statement
65 | Annual Report 2023
Note 21 – Borrowings (continued)
Consolidated Financial Statement
66 | Annual Report 2023
Consolidated Financial Statement
67 | Annual Report 2023
Note 25 – Financial Instruments and Risks (continued)
Consolidated Financial Statement
68 | Annual Report 2023
Note 25 – Financial Instruments and Risks (continued)
Consolidated Financial Statement
69 | Annual Report 2023
Parent Company Financial Statements
Statement of Comprehensive Income
Balance Sheet
Cash Flow Statement
Statement of Changes in Equity
Notes to the Parent Company Financial Statements
70 | Annual Report 2023
Parent Company Financial Statement
71 | Annual Report 2023
Statement of Comprehensive Income
INCOME STATEMENT
STATEMENT OF COMPREHENSIVE
INCOME
T.DKK
Notes 2023
2022
T.DKK
Notes 2023
2022
Revenue
3,4
239.182
187.924
Profit for the period
62.697
38.198
Other comprehensive income
0
0
Cost of services
5
-3.558
-3.028
Total comprehensive income for the year
62.697
38.198
External expenses
6,7
-34.811
-28.252
Staff costs
8
-120.664
-109.256
Research and development costs capitalized
26.404
20.949
DISTRIBUTION OF PROFIT
Depreciation and amortization expense
9
-25.194
-19.547
T.DKK
Notes 2023
2022
Operating profit (EBIT)
81.359
48.790
Proposed dividend
5.600
4.200
Financial income
10
2.988
1.258
Development costs reserve
7.372
4.555
Financial cost
11
-3.637
-1.568
Retained earnings
49.725
29.443
Earnings before income taxes (EBT)
80.710
48.480
Total
62.697
38.198
Income taxes
12
-18.013
-10.282
Profit for the year
62.697
38.198
Parent Company Financial Statement
72 | Annual Report 2023
Balance Sheet
ASSETS
EQUITY AND LIABILITIES
T.DKK
Notes 2023
2022
T.DKK
Notes 2023
2022
Intangible assets
13
64.594
55.144
Share capital
5.000
5.000
Property, plant and equipment
14
15.510
16.628
Reserve for development costs
50.317
42.945
Right-of-use assets
15
56.522
62.192
Retained earnings
167.465
117.040
Investments in subsidiaries
16
50.050
50.050
Proposed dividend
5.600
4.200
Receivables from subsidiaries
17
7.209
6.931
Total equity
23
228.382
169.185
Other financial assets
18
798
466
Total non-current assets
194.683
191.411
Deferred tax liabilities
24
11.727
9.830
Lease liabilities
25
52.557
55.353
Receivables from subsidiaries
17
92.705
42.510
Provisions
26
500
500
Trade receivables
19
40.943
40.357
Total non-current liabilities
64.784
65.683
Contract assets
20
8.630
1.705
Other receivables
442
5.606
Trade payables
3.379
5.172
Receivables
142.720
90.178
Lease liabilities
25
5.464
6.878
Contract liabilities
20
5.163
10.467
Cash and cash equivalents
8.764
1.815
Current tax liabilities
21
13.780
4.851
Other payables
25.215
21.168
Total current assets
151.484
91.993
Total current liabilities
53.001
48.536
Total assets
346.167
283.404
Total liabilities and equity
346.167
283.404
Applied accounting policies
1
Accounting estimates
2
Commitments and contingencies
27
Related party transactions
28
Financial instruments and -risks
29
Capital structure
30
Events after the balance sheet date
31
Parent Company Financial Statement
73 | Annual Report 2023
Statement of Changes in Equity
2023
2022
T.DKK
Share
capital
Reserve for
developme
nt costs
Retained
earnings
Proposed
dividend
Total
equity
T.DKK
Share
capital
Reserve for
developme
nt costs
Retained
earnings
Proposed
dividend
Total
equity
Equity, January 1 5.000
42.945
117.040
4.200
169.185
Equity, January 1 5.000
38.390
87.955
3.400
134.745
Net profit for the year 0
7.372
49.725
5.600
62.697
Net profit for the year 0
4.555
29.443
4.200
38.198
Comprehensive income
for the period
0
7.372
49.725
5.600
62.697
Comprehensive income
for the period
0
4.555
29.443
4.200
38.198
Share-based payments 0
0
235
0
235
Share-based payments 0
0
234
0
234
Purchase of treasury
shares
0
0
-454
0
-454
Purchase of treasury
shares
0
0
-666
0
-666
Sale of treasury shares 0
0
827
0
827
Dividends 0
0
74
-3.400
-3.326
Dividends 0
0
92
-4.200
-4.108
Transactions with
owners
0
0
-358
-3.400
-3.758
Transactions with
owners
0
0
700
-4.200
-3.500
Equity, December 31 5.000
42.945
117.040
4.200
169.185
Equity, December 31 5.000
50.317
167.465
5.600
228.382
Parent Company Financial Statement
74 | Annual Report 2023
Statement of Cash Flows
T.DKK
2023
2022
T.DKK
2023
2022
Operating profit (EBIT)
81.359
48.790
Investments in intangible assets
-26.404
-20.949
Depreciation and amortization
25.194
19.547
Investments in property, plant and equipment
-538
-5.841
Change i working capital
Investments in subsidiaries
-48.073
-50.000
Change in trade- and other receivables
4.578
-9.503
Cash flow from investing activities
-75.015
-76.790
Change in contract assets and -liabilities
-12.229
5.584
Change in trade- and other payables
2.254
5.644
Repayment of lease liabilities
0
-3.388
Change in receivables from subsidiaries
-7.455
-45.484
Interest lease payments
0
-709
Cash flow from operating profit
93.701
24.578
Dividends paid, net
-4.108
-3.326
Cash flow from financing activities
-4.108
-7.423
Share-based payments
235
234
Financial items, net
-412
-776
Cash and cash equivalents, January 1
1.815
68.623
Income taxes paid
-7.452
-6.631
Net cash flow for the period
6.949
-66.808
Cash flow from operating activities
86.072
17.405
Cash and cash equivalents, December 31
8.764
1.815
Parent Company Financial Statement
75 | Annual Report 2023
Notes to the Parent Company Financial Statement
Parent Company Financial Statement
76 | Annual Report 2023
Note 1 - Accounting Policies
Basis of Preparation
The separate annual financial statements for the parent company are included in the
annual report because the Danish Financial Statements Act requires a separate parent
company financial statement.
The parent company's financial statements for cBrain A/S have been prepared in
accordance with IFRS Accounting Standards as adopted by EU and additional Danish
disclosure requirements for listed companies.
The parent company's financial statements are presented in thousands of Danish
kroner (T.DKK), which is considered the functional currency of the Parent company’s
activities. Amounts are presented in European format.
The accounting policies, as described below, have been consistently applied in the
reporting year and for the comparative figures. Where relevant, accounting policies
have been moved to the notes.
The accounting policies are the same as those for consolidated financial statements,
with the exception described below. For a detailed description of the group’s
accounting policies, please refer to note 1 of the consolidated financial statements
Foreign Currency Translation
Foreign exchange adjustments of intragroup accounts are recognized in the income
statement in cBrain A/S’ financial statements. Foreign exchange adjustments of intra-
group accounts between cBrain A/S and subsidiaries are considered part of the net
investment in the subsidiaries concerned. Settlement of intra-group balances
considered part of the net investment are not, per se, considered a partial divestment
of a subsidiary.
Investments in subsidiaries
Investments in subsidiaries are measured at cost, for a detailed description please
refer to note 16.
Taxation
cBrain A/S is subject to the Danish rules on mandatory joint taxation of the Group's
Danish subsidiaries. cBrain A/S serves as the Group's administration company for
group taxation and consequently settles all corporate tax payments with the tax
authorities. Contributions to/from subsidiaries within the group taxation regime are
recognized under tax on the profit for the year. Tax liabilities and receivables are
recorded under current assets/liabilities.
Joint tax contributions to be paid or received are recognized in the balance sheet
under receivables from or payables to group companies. Companies that utilize tax
losses in other companies pay joint tax contribution to the parent company equivalent
to the tax value of the utilized losses, while companies whose tax losses are utilized by
other companies receive joint tax contributions from the parent company, equivalent
to the tax value of the utilized losses (full allocation).
Parent Company Financial Statement
77 | Annual Report 2023
Note 2 - Accounting Estimates
For a description of the accounting estimates please refer to note 2 to the
consolidated financial statements.
It is management’s judgments that all critical accounting estimates with respect to
the parent company are included in note 2 of the consolidated financial statements
and that there are no critical accounting estimates which are unique to the parent.
Note 3 – Segment Information
Market areas
cBrain's software solution is a comprehensive product consisting of a wide range of
configurable software modules and libraries. The software product is marketed under
the brand name: F2 (production system, case management, and business processes).
When presenting information related to geographical areas, details about revenue
distribution across geographical segments are reported based on the geographical
location of customers.
Segments
cBrain operates as a single operating segment, as there is no division of the Group's
activities in internal reporting.
The intangible and property, plant and equipment recognized on the Group's balance
sheet can be attributed to Denmark.
T.DKK
2023
2022
Products and Services
Software
189.179
135.406
Services
50.003
52.518
239.182
187.924
Timing of revenue recognition
Over time
198.796
148.693
At a point in time
40.386
39.231
239.182
187.924
Geographical information
Denmark
155.498
125.739
Other EU-countries
75.930
54.488
Countries outside the EU
7.754
7.697
239.182
187.924
Significant Customers
Customer A*
128.884
104.274
Customer B
74.091
53.643
*Customers in the Danish state is aggregated together as Customer A.
Parent Company Financial Statement
78 | Annual Report 2023
Note 4 – Net revenue
T.DKK
2023
2022
Software
189.179
135.406
Services
50.003
52.518
239.182
187.924
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 4.
Note 5 – Cost of Services
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 5.
Note 6 - External Expenses
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 6.
Note 7 - Fees to the Statutory Auditors
T.DKK
2023
2022
Statutory audit
791
595
Other assurance services
160
155
Tax and VAT advisory services
60
0
Other services
30
30
1.041
780
Fees for services other than the statutory audit of the financial statements provided
by EY Godkendt Revisionspartnerselskab, Denmark amounted to T.DKK 250 (2022:
T.DKK 185). This includes assurance opinions related to IT, other assurance opinions,
agreed-upon procedures as well as tax compliance related services
Parent Company Financial Statement
79 | Annual Report 2023
Note 8 – Staff costs
T.DKK
2023
2022
Wages and salaries
117.939
105.827
Social security costs
2.308
2.760
Share-based payment expense
5
296
Board fee
350
350
Other personnel expenses
62
23
120.664
109.256
Fees and remuneration to the Board of Directors and Executive Management
T.DKK
2023
2022
Fees to the Board of Directors
Board fee
350
350
Remuneration to the Executive Management
Fixed base salary
3.434
3.434
Short-term cash incentive
1.583
1.462
5.017
4.896
Total short-term remuneration
5.367
5.246
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 8.
Note 9 – Depreciation and Amortization Expense
T.DKK
2023
2022
Software
16.953
15.024
Leases
6.585
3.883
Land and buildings
206
206
Furnishing of rented premises
656
216
Other Equipment
794
218
25.194
19.547
§ Accounting policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 9.
Note 10 – Financial Income
T.DKK
2023
2022
Interest income, subsidiaries
1.852
540
Interest income, other
595
52
Exchange rate gains
541
666
2.988
1.258
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 10.
Parent Company Financial Statement
80 | Annual Report 2023
Note 11 - Financial Cost
T.DKK
2023
2022
Interest expense, leases
2.038
709
Interest expense, other
785
520
Exchange rate losses
814
339
3.637
1.568
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 11.
Note 12 – Income Taxes
T.DKK
2023
2022
Current tax on profits for the year
16.076
10.026
Adjustment for deferred tax
1.897
321
Adjustments in respect of current income tax of previous year
40
-65
18.013
10.282
Total income tax
Tax using the Danish corporation tax rate (22%)
17.756
10.666
Non-deductible expenses
217
-319
Adjustments in respect of current income tax of previous year
40
-65
18.013
10.282
Effective tax rate
22,3%
21,2%
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 12.
Note 13 - Intangible Assets
2023
T.DKK
Software
Software
under
develop-
ment
Total
Cost, January 1
156.298
2.233
158.531
Additions
0
26.403
26.403
Transfer
25.219
-25.219
0
Cost, December 31
181.517
3.417
184.934
Amortization, January 1
103.387
0
103.387
Amortization
16.953
0
16.953
Amortization, December 31
120.340
0
120.340
Carrying amount December 31
61.177
3.417
64.594
Out of the year's additions to software under development, totaling DKK 26,4m,
capitalized salaries amount to DKK 25,3m.
In 2023, software under development in the amount of DKK 25,2m was released and
transferred to software.
In 2023, management performed an impairment test of the carrying amount of
development projects in progress. It has been assessed that the recoverable amount
in the form of value in use exceeds the carrying amount. The value in use is calculated
based on expected net cash flows for a 5-year period.
Parent Company Financial Statement
81 | Annual Report 2023
Note 13 - Intangible Assets (continued)
2022
T.DKK
Software
Software
under
develop-
ment
Total
Cost, January 1
134.290
3.292
137.582
Additions
0
20.949
20.949
Transfer
22.008
-22.008
0
Cost, December 31
156.298
2.233
158.531
Amortization, January 1
88.363
0
88.363
Amortization
15.024
0
15.024
Amortization, December 31
103.387
0
103.387
Carrying amount December 31
52.911
2.233
55.144
In 2022, out of the year's additions to development projects in progress, totaling
T.DKK 20.949, capitalized salaries amount to T.DKK 17.249.
In 2022, management performed an impairment test of the carrying amount of
development projects in progress. It has been assessed that the recoverable amount
in the form of value in use exceeds the carrying amount. The value in use is calculated
based on expected net cash flows for a 5-year period.
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 11.
Note 14 - Property, plant and Equipment
2023
T.DKK
Land and
buildings
Leasehold
improve-
ments
Other
Equipment
Total
Cost, January 1
11.193
3.235
4.024
18.452
Additions
0
67
471
538
Disposals
0
0
0
0
Cost, December 31
11.193
3.302
4.495
18.990
Depreciation, January 1
929
216
679
1.824
Depreciation
206
656
794
1.656
Depreciation , December 31
1.135
872
1.473
3.480
Carrying amount December 31 10.058
2.430
3.022
15.510
2022
T.DKK
Land and
buildings
Leasehold
improve-
ments
Other
Equipment
Total
Cost, January 1
11.193
957
461
12.611
Additions
0
2.529
3.312
5.841
Transfer
0
-251
251
0
Cost, December 31
11.193
3.235
4.024
18.452
Depreciation, January 1
723
0
461
1.184
Depreciation
206
216
218
640
Depreciation, December 31
929
216
679
1.824
Carrying amount December 31
10.264
3.019
3.345
16.628
Parent Company Financial Statement
82 | Annual Report 2023
Note 14 - Property, plant and Equipment (continued)
§ Accounting Policies
In relation to the accounting policies described for the consolidated financial
statements note 14, the parent company's accounting policies differ in the following
aspects:
Property, plant and equipment in the parent company are depreciated on a straight-
line basis over their expected useful lives, as follows:
Land: is not depreciated.
Buildings: 30 years.
Leasehold improvements: 5 yeas
Other equipment: 3-5 years.
Note 15 – Right-of-use Assets
Office leases
T.DKK
2023
2022
Cost, January 1
64.337
47.901
Addition (remeasurement)
915
21.634
Disposal
0
-5.198
Cost, December 31
65.252
64.337
Depreciation, January 1
2.145
2.542
Depreciation
6.585
4.262
Depreciation reversed on disposals
0
-4.659
Amortization, December 31
8.730
2.145
Carrying amount, December 31
56.522
62.192
§ Accounting Policies
Right-of-use assets are leased real estate property. Right-of-use assets are measured
at cost corresponding to the lease liability recognized, 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 recognized as
expense in the year the event or condition that triggers the payment occurs.
For all asset classes, non-lease components will be separated from the lease
components and thereby not form part of the recognized right-of-use asset and the
lease liability.
Note 16 - Investments in Subsidiaries
T.DKK
2023
2022
Cost, January 1
50.340
340
Additions
0
50.000
Cost, December 31
50.340
50.340
Impairment losses, January 1
-290
-290
Impairment losses, December 31
-290
-290
Carrying amount, December 31
50.050
50.050
Parent Company Financial Statement
83 | Annual Report 2023
Note 16 - Investments in Subsidiaries (continued)
The capital shares in subsidiaries are specified as follows:
Name
Place of origin
Share
capital
Voting
and
ownership
share
Equity
Profit for
the year
cProperty ApS
Copenhagen,
Denmark
100
100%
48.608
-1.071
cBrain MENA Computer
System and Design LLC
Dubai,
UAE
0
100%
248
91
cBrain North America
LLC
Delaware,
USA
0
100%
0
0
cBrain Omni Ghana Ltd
Accra,
Ghana
0
50%*
0
0
cBrain Kodumburar
India Private Limited
Tamil Nadu,
India
-
50%*
Under establishment
*Shareholder agreements give cBrain control of the company.
§ Accounting Policies
Investments in subsidiaries are measured in the parent company's financial
statements at cost. The cost includes the purchase consideration recognized at fair
value plus direct acquisition costs.
If there is an indication of impairment, impairment tests are conducted as described
in the accounting policies applied for the consolidated financial statements. Where
the carrying amount exceeds the recoverable amount, it is written down to this lower
value.
When distributing reserves other than retained earnings in subsidiaries, the
distribution reduces the acquisition cost of the investments if the distribution has the
character of a repayment of the parent company's investment.
Note 17 - Receivables from Subsidiaries
§ Accounting Policies
Long-term receivables from subsidiaries include office rent deposits to cBrains’ 100%
owned subsidiary, cProperty ApS (CVR no. 37294098). The amount is equivalent to
one year’s lease payments. The office rent is price-regulated annually with a minimum
of 2% and a maximum of 4% annually. As a result, the rental deposit is adjusted
accordingly.
Short-term receivables from subsidiaries mainly include a short-term loan to
cProperty ApS provided in connection with the purchase of Utzon House in 2022.
In 2023, cProperty ApS made an extraordinary repayment of DKK 45m, financed by a
loan from cBrain. As of December 31, 2023, the mortgage loan (borrowings) in
cProperty has a carrying amount of DKK 51m, and the property, plant, and equipment
have a carrying amount of DKK 196m. Therefore, cBrain does not expect any credit
loss on this receivable.
The short-term loans are accruing interest at a rate equivalent to cBrain's deposit rate
at the company's bank. As of December 31, 2023, the interest rate was 2,85% (2022:
2,00%).
Parent Company Financial Statement
84 | Annual Report 2023
Note 18 – Other Financial Assets
T.DKK
2023
2022
Cost, January 1
466
6.931
Additions
643
466
Disposals
-311
-6.931
Cost, December 31
798
466
Carrying amount, December 31
798
466
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 15.
Note 19 – Trade Receivables
T.DKK
2023
2022
Trade receivables, gross
41.201
40.623
Change in provision for credit losses:
Provision, January 1
266
114
Net change
-8
152
Provision, December 31
258
266
Trade receivables, net
40.943
40.357
§ Accounting policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 16.
Reconciliation of expected credit loss
2023
T.DKK
Not
overdue
Due 1-
30 days
Due 31-
60 days
Due
>60
days
Total
Contract assets, gross
8.630
0
0
0
8.630
Trade receivables, gross
40.772
2.603
114
570
44.059
Expected credit loss
-226
-19
-2
-11
-258
Trade receivables, net
40.546
2.584
112
559
43.801
Trade
receivables and
contract assets, net
49.176
2.584
112
559
52.431
Share of trade receivables expected to be paid
99%
Expected credit loss %
0,6%
0,7%
1,8%
1,9%
0,6%
2022
T.DKK
Not
overdue
Due 1-
30 days
Due 31-
60 days
Due
>60
days
Total
Trade receivables, gross
39.408
768
575
31
40.782
Expected credit loss
-239
-8
-17
-2
-266
Trade receivables, net
39.169
760
558
29
40.516
Share of trade receivables expected to be paid
99%
Expected credit loss %
0,6%
1,0%
3,0%
6,5%
0,7%
Parent Company Financial Statement
85 | Annual Report 2023
Note 20 – Contract Assets and Liabilities
T.DKK
2023
2022
Contract assets
Work-in-progress
8.630
1.705
8.630
1.705
Contract liabilities
Deferred income
3.020
2.955
Prepayments from customers
2.143
7.512
5.163
10.467
Contract assets and liabilities are classified in the balance
sheet as follows:
Contract assets
8.630
1.705
Contract liabilities
-5.163
-10.467
3.467
-8.762
Contract assets as of December 31, 2022, relating to produced, unbilled revenue
totaling DKK 1,7m are recognized in revenue in 2023.
§ Accounting policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 17.
Note 21 – Current Tax Liabilities
T.DKK
2023
2022
Corporation tax receivable/payable, January 1
4.851
1.493
Current tax for the year
16.076
9.835
Adjustment of tax relating to previous years
40
65
Corporation tax paid in the year
-7.187
-6.542
13.780
4.851
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 18.
Note 22 – Other Payables
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 22.
Note 23 – Share Capital
Reconciliation on Treasury Shares
Pcs.
2023
2022
Treasury shares January 1
441.183
2,2%
438.010
2,2%
Treasury shares acquired in the year
3.355
0,0%
4.000
0,0%
Treasury shares sold in the year
-7.351
0,0%
-827
0,0%
437.187
2,2%
441.183
2,2%
Parent Company Financial Statement
86 | Annual Report 2023
Note 23 – Share Capital (continued)
The share capital consists of 20.000.000 shares with a nominal value of DKK 0,25
each. No shares have special rights.
As of December 31, 2023, the group holds 437.187 treasury shares (compared to
441.183 shares as of December 31, 2022). The market value of the group’s treasury
shares as of December 31, 2023, is DKK 117,6m (compared to DKK 69,5m as of
December 31, 2022).
In 2023, the group sold 5.893 treasury shares to employees with a total value of DKK
0,8m, and 1.458 shares were utilized for employee remuneration through share-based
compensation with a value of DKK 0,2m.
During 2023, cBrain repurchased 3.355 ordinary shares. The management is
authorized by the Annual General Meeting to repurchase up to 10% of its share
capital.
The proposed dividend for 2023 amounts to DKK 5,6m, equivalent to DKK 0,28 per
share (compared to DKK 4,2m, equivalent to DKK 0,21 per share in 2022).
Statement of Earnings per Share
Pcs.
2023
2022
Number of shares
20.000.000
20.000.000
Average number of treasury shares
-439.185
-439.597
Average number of shares, outstanding
19.560.815
19.560.403
Basic EPS
3,13
1,91
Diluted EPS (DEPS)
3,13
1,91
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 19.
Note 24 – Deferred Tax Liabilities
T.DKK
2023
2022
Deferred tax liability January 1
9.830
9.509
Adjustment for deferred tax for the year
1.897
321
Deferred tax liability December 31
11.727
9.830
Recognized deferred tax liabilities are attributable to the
following:
Intangible assets
14.211
12.131
Property, plant and equipment
-350
188
Provisions, etc.
-2.134
-2.489
11.727
9.830
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 20.
Parent Company Financial Statement
87 | Annual Report 2023
Note 25 – Lease Liabilities
T.DKK
2023
2022
Undiscounted lease liability
Within one year
7.329
6.966
Between 1 and 3 years
15.100
14.353
Between 3 and 5 years
15.710
14.933
More than 5 years
29.543
37.722
67.682
73.974
Amounts recognized in the balance sheet
Current financial liabilities
5.464
6.878
Non-current financial liabilities
52.557
55.353
58.021
62.231
Amounts recognized in the statement of profit or loss
Lease payments
7.162
3.388
Interest expenses related to lease liabilities
2.072
709
9.234
4.097
§ Accounting Policies
Lease liabilities are recognized as the present value of the remaining lease payments,
discounted using an alternative borrowing rate. The lease liability is measured at initial
recognition as the present value of future lease payments discounted using an
alternative borrowing rate.
Note 26 – Provisions
T.DKK
2023
2022
Provisions, January 1
500
1.450
Arising during the year
0
500
Unused amounts reversed
0
-1.450
Provisions, December 31
500
500
Provisions relate to expected future costs for the removal of installations and
equipment, as well as reinstatement, etc., upon vacating cBrains leased properties.
These provisions are reevaluated annually based on the condition of the leases at the
balance sheet date.
Note 27 – Commitments and Contingencies
T.DKK
2023
2022
Short-term lease commitments, within one year
779
707
779
707
Guarantee obligations
cBrain A/S acts as a guarantor for its 100% owned subsidiary cProperty ApS's
mortgage loan for the remaining debt of DKK 50,7m (2022: DKK 98,6m). The property
located at Kalkbrænderiløbskaj 2, 2100 Copenhagen Ø, has a total carrying amount of
DKK 198,4m,
Parent Company Financial Statement
88 | Annual Report 2023
Note 27 – Commitments and Contingencies (continued)
Other Contingent Liabilities
cBrain's Danish companies are jointly and severally liable for the tax on the Danish
companies’ income, etc. The total amount of outstanding corporate income tax in
Denmark is DKK 13,9m (2022: DKK 5,1m). The Danish companies are also jointly and
severally liable for Danish withholding taxes in the form of dividend tax, royalty tax,
and interest tax. Any subsequent adjustments to corporate taxes and withholding
taxes may result in the Group's liability being a larger amount.
Note 28 – Related Parties Transactions
For the Parent company, in addition to transactions with other related parties
depicted in note 24 of the consolidated financial statements, related parties also
comprise subsidiaries where cBrain A/S has a controlling or significant influence.
The Parent company leases cBrains headquarter from its 100% owned subsidiary
cProperty ApS (CVR no. 37294098), please refer to note 15 and note 25.
The Parent company's outstanding balance with subsidiaries comprises receivables of
DKK 99,9m, current account DKK 92,7m and non-current group deposits DKK 7,2m
(2022: DKK 47,3m, current account DKK 40,4m and non-current group deposits DKK
6,9m).
Balances with subsidiaries comprise office rent deposits to cBrains’ 100% owned
subsidiary, cProperty ApS and short-term loans to cProperty ApS provided in
connection with the purchase of Utzon House in 2022. The short-term loans are
accrued interest. For more information, please refer to note 16. Interest on receivables
from subsidiaries is specified in note 10.
Note 29 – Financial Instruments and Risks
Categories of Financial Instruments
T.DKK
2023
2022
Financial assets measured at amortized cost
Receivables from subsidiaries
92.705
42.510
Trade receivables
40.943
40.357
Other receivables
442
6.072
Cash and cash equivalents
8.764
1.815
142.854
90.754
Financial liabilities measured at amortized cost
Lease liabilities
58.021
62.231
Provisions
500
500
Trade payables
3.379
5.172
61.900
67.903
Financial Risk Management Strategies
cBrain is exposed to market risks in the form of changes in exchange rates and
interest rates, as well as credit risks and liquidity risks, due to its operations,
investments, and financing activities.
Management believes that cBrain operates with a low-risk profile, and as such, foreign
currency, interest rate, and credit risks only occur on a commercial basis. It is cBrain's
policy not to engage in active speculation in financial risks.
Entering into new markets may involve transactions in foreign currencies, which could
expose cBrain to currency fluctuations. Therefore, this area is closely monitored to
assess the need for currency hedging instruments. For implemented optimization,
refer to the following section.
Parent Company Financial Statement
89 | Annual Report 2023
Note 29 – Financial Instruments and Risks (continued)
Foreign Exchange Risk
cBrain's foreign exchange risk is primarily managed by matching cash inflows and
outflows in the same currency. The difference between cash inflows and outflows in
the same currency represents an unhedged currency risk. The majority of positions
are in EUR, USD, GBP and AED.
Currency Risk on Recognized Assets and Liabilities
2023
T.DKK
EUR
USD
GBP
AED
Cash and cash equivalents 2.298
1.259
290
0
3.847
Receivables
3.289
468
172
4.535
8.464
Liabilities
-209
0
0
0
-209
Unhedged
net-position
5.378
1.727
462
4.535
12.102
Loss/gain
at 10 %
strengthening/weakening
of DKK
+/- 538
+/- 173
+/- 46
+/- 454
+/- 1.210
2022
T.DKK
EUR
USD
GBP
AED
Cash and cash equivalents 2.406
998
1.500
0
4.904
Receivables
650
49
142
2.031
2.872
Liabilities
-714
-74
0
0
-788
Unhedged
net-position
2.342
973
1.642
2.031
6.988
Loss/gain
at 10 %
strengthening/weakening
of DKK
+/- 234
+/- 97
+/- 164
+/- 203
+/- 699
Interest Rate Risks
cBrain's interest rate risk is related to bank balances and debt to mortgage loans
(borrowings). As of December 31, 2023, the company has a bank balance of DKK 8,8m
(2022: DKK 1,8 million). In connection with bank balances, there is a total credit facility
of DKK 25 million. The bank balances are subject to variable day-to-day interest rates.
Liquidity Risks
cBrain's objective is to maintain sufficient liquidity reserves to be able to respond
appropriately to unforeseen fluctuations in liquidity. Excess liquidity is placed in
deposit or savings accounts, considering the expected liquidity needs. Liquidity is only
placed with financial institutions with high creditworthiness.
Non-Derivate Financial Liabilities
2023
T.DKK
Less than
6 months
Between
6 and 12
months
Between 1
and 5
years
After
5 years
Total
Lease liabilities
3.652
3.676
38.902
20.951
67.181
Trade payables
3.379
0
0
0
3.379
Other payables
22.148
3.067
0
0
25.215
28.224
5.834
32.575
19.981
86.614
Parent Company Financial Statement
90 | Annual Report 2023
Note 29 – Financial Instruments and Risks (continued)
2022
T.DKK
Less than
6 months
Between
6 and 12
months
Between
1 and 5
years
After
5 years
Total
Lease liabilities
3.483
3.483
29.286
37.722
73.974
Trade payables
5.172
0
0
0
5.172
Other payables
14.705
6.463
0
0
21.168
23.360
9.946
29.286
37.722
100.314
Credit Risks
Credit risk is low due to the types of customers, primarily consisting of public
authorities and professional organizations. The finance department continuously
reviews credit risks, including the size and age distribution of receivables from
individual customers.
In 2023, an expected loss of DKK 0,3m was recognized (2022: DKK 0,6), and no losses
were realized during the fiscal year.
The company has not entered into derivative financial instruments for hedging
recognized financial assets and liabilities.
Note 30 - Capital Structure
T.DKK
2023
2022
The financial gearing at the balance sheet date can be
summarized as follows:
Lease liabilities
58.021
73.974
Cash and cash equivalents
-8.764
-1.815
49.257
72.159
Equity
228.382
169.185
Financial Gearing Ratio
21,6%
42,7%
Note 31 - Events After the Balance Sheet Date
There have been no events occurring after the end of the fiscal year that would
require adjustment or disclosure in the annual report.
“The core of the Paustian Project, as described by Jørgen
Utzon himself in connection with Sydney, is that the
construction is the architecture, and that approach is also
evident today, where the house has been renovated in
connection with a new owner taking over the property.
With its interspersed decks and open spaces between
white columns, this house makes a strong impression and
should attract renewed attention in relation to questions
of durability (and equally sustainability), natural light and
simplicity of construction.”
Quotations from Arkitekten magazine, issue 04, 2023
The Utzon House in Nordhavn
- from showroom to cBrain’s Headquarters
