1 3
Annual Report
2023
2 3
Evergreen investor
We are a long-term investor with keen focus on companies with
sustainable business models and structures resembling those of
Demant and favourable growth prospects.
We believe in ownership longevity as a means of fostering the right
conditions for long-term value creation. In short, we are in it for the
long haul.
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3 3
Content
Insights and highlights 1
Letter from the CEO 5
About William Demant Invest 7
Investment strategy 8
William Demant Invest at a glance 9
Pro forma consolidation 10
The William Demant Invest companies 11
Demant 12
Embla Medical 14
Vision RT 16
Vitrolife 18
CellaVision 20
Revenio 22
INVISIO 24
Jeudan 26
Corporate information 28
Board of Directors 29
Management 31
Our approach to ESG 32
Financial report 33
Financial review 35
Key figures and financial ratios 36
Management statement 37
38
Notes to consolidated financial statements 46
Parent financial statements 105
Notes to parent financial statements 109
Insights and highlights
The WDI companies
Corporate information
Financial report
Letter from the CEO
4 3
Active ownership
We are looking for companies
where we can be an active partner.
We want to be a part of and contribute to
the companies we invest in.
Insights and highlights
The WDI companies
Corporate information
Financial report
4 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Letter from the CEO
5 3
After a difficult 2022 with continued
recovery from the impact of the
coronavirus pandemic, the companies in
the William Demant Invest portfolio
delivered a solid 2023 with overall strong
business performance and we are happy
to see that things have now more or less
normalised in our markets and industries.
The MedTech business, wherein most of
our companies operate, is a very stable
industry, and here, we believe that we
have left the worst negative effects from
some turbulent years behind us and we
expect close to normal business
conditions in 2024.
As a long-term, evergreen investor, we are
pleased to see the companies perform
well and thus remain optimistic about the
trajectory of the portfolio in the coming
years.
Increased market value and ownership
During the year, we saw a healthy
increase in the market value of our
portfolio. At year-end, the market value
totalled DKK 61 billion, up 29% from 2022,
driven mainly by Demant, which had a
very strong year with successful product
launches and continued market share
gains. Even though the value is not back at
earlier high levels, it is our firm belief that
the market value deterioration seen
through 2022 and, to a smaller extent,
2023, was due to inflation-driven multiple
compression rather than actual business
performance.
However, favourable market sentiment
towards the end of 2023, mainly driven by
lower-than-expected inflation, particularly
benefitted the more interest-sensitive
growth shares in our portfolio, resulting in
soaring market prices, which has
continued going into 2024. If the common
prediction of falling interest levels and
thus more stable markets in 2024
becomes a reality, it is likely that the high
multiple growth shares that suffered the
most in 2022, when interest levels started
to rise, in contrast will benefit the most
when interest levels start to decline.
Whilst our investment activities were at a
record-high level in 2022, 2023 has been
characterised by consolidation in the
existing portfolio. During the year, we
have increased our ownership in selected
companies, and we naturally wish to
further expand ownership in more of the
portfolio companies going forward. We
are confident that our current portfolio
comprises a balanced mix of mature
growth companies with robust and
resilient business models and
encouraging long-term growth prospects.
Sustainability across the companies
We observe many great initiatives within
sustainability across the companies. We
are happy to see each company improving
in this area and we are also happy to
have published our first sustainability
report for William Demant Invest this year.
Since the companies in our portfolio range
widely in size and technologies, the
responsibility of defining and carrying out
a sustainability agenda primarily lies with
each individual company, which enables
the companies to focus their efforts where
they matter the most in their particular
sustainability context. We continue to
follow their work within sustainability
closely, among others through our
involvement in the boards of the
companies especially now where new
legislation is underway and high on the
agenda.
We continue to look positive towards the
future. All the companies have strong,
inherent growth drivers in industries with
high barriers of entry and they hold
market leading positions. With a hopefully
more stable and favourable macro
environment in 2024, we are positive that
the companies can maintain and further
fuel their current momentum.
We would like to thank the employees,
management and boards as well as the
customers in the William Demant Invest
portfolio and we look forward to
continuing the collaboration in 2024.
Niels Jacobsen
2023 was a positive year for the companies in the William Demant Invest portfolio. Even
though the past 12 months were once again characterised by geopolitical instability and
macroeconomic uncertainty, we witnessed a year of stable and solid business
performance. The consolidated revenue for 2023 grew 13% to DKK 29 billion.
Insights and highlights
The WDI companies
Corporate information
Financial report
Letter from the CEO
6 3
business in William Demant Invest. Hovering
high up in the air, the kite possesses
perspective and overview of the landscape
below. To make sure that it never flies off in
unwanted directions, it is held tight by a string,
Niels Jacobsen, CEO
Insights and highlights
The WDI companies
Corporate information
Financial report
6 3
Insights and highlights
The WDI companies
Corporate information
Financial report
About William Demant
Invest
7 3
History and
purpose
Established in 2004, William Demant
Invest serves as the exclusive holding
company for the comprehensive
investment endeavours of William
Demant Foundation. Presently, the
primary source of liquidity for William
Demant Invest is derived from capital
returns generated by its subsidiaries and
associated companies.
The main objective of William Demant
Foundation is to safeguard and enhance
the Demant enterprise while allocating a
portion of its net income to causes
defined in its charter. This commitment to
a long-term perspective is evident across
the majority of investments undertaken
by William Demant Invest. William Demant
Invest actively pursues significant
involvement in the ongoing progress of
subsidiaries and associated companies,
aligning the foundation's dedication to
fostering sustained growth.
Group structure
and governance
William Demant Invest serves as the
overarching entity for the investment
activities of William Demant Foundation.
The complete ownership tie between
William Demant Foundation and William
Demant Invest, along with the identical
Boards of Directors, ensures the
execution of investments aligns with the
principles established in William Demant
Foundation's charter and adheres to the
investment strategy outlined by William
Demant Invest.
While the implementation of the
investment strategy is undertaken by
William Demant Invest, decisions on
exercising voting rights and buying or
selling Demant shares are exclusively
overseen and decided upon by William
Demant Foundation. William Demant
Foundation has communicated a 55-60%
ownership interval either directly or
indirectly in Demant.
The Group structure illustrated above reflects ownership figures as of 19 March 2024. Ownership in Demant
represents the combined ownership of William Demant Foundation and William Demant Invest.
The strategic long-term investments
on page 11.
Insights and highlights
The WDI companies
Corporate information
Financial report
Investment strategy
8 3
Throughout its long-lasting engagement
with Demant, William Demant Invest has
accumulated extensive expertise in the
development and management of similar
enterprises, creating a knowledge base
that has profoundly influenced the
determination of the investment strategy.
Building on the success achieved with
Demant, William Demant Invest naturally
seeks for similar business characteristics
in new investments, allowing for the
application of this expertise.
So what does it mean to be a company
like Demant? And what are the
that set the standard for the investment
strategy of William Demant Invest?
First of all, the high level of product
innovation, on which a company like
Demant builds its growth, results in
natural barriers of entry because of the
high level of specialist knowledge needed
to develop and manufacture the products.
Therefore, a company of this kind will
normally operate in niche markets with few
major players and a high level of
innovation. Secondly, Demant has a
portfolio of products that are the same
form all over the world. The distribution
may vary between countries, but the
product program is the same on a global
scale. Demant has been through a long
globalisation process with a constantly
increasing number of locally based
companies all over the world that together
constitute a large, global business but
where the products sold, and the services
provided, are more or less the same all
over the world.
To sum this up, William Demant Invest
mainly looks for innovation-driven
companies in niche markets with a strong,
unified product program and a global
distribution mode. Historically, several
investments have been within the MedTech
industry. William Demant Invest also takes
up ownerships within other industries
besides MedTech, however always in
companies with a business model similar
.
Criteria for ownership
The investment strategy of William Demant Invest is summarised through
the following criteria for ownership
Stable cash flow
generation
Competent
management
Preferably listed
companies
Strong underlying market
factors
Revenue around
DKK 250 million or more
and strong profitability
Investment approach
Our investment principles are focused on innovation-driven companies with
proven, robust, and familiar business models
Insights and highlights
The WDI companies
Corporate information
Financial report
William Demant Invest at a
glance
9 3
Key figures
Aggregate figures for all William Demant Invest companies (100% level)
William value*
DKK billion
*Calculated as the sum of William Demant Invest's proportional share of market capitalisation of all portfolio
companies less William Demant Invest's net debt. Please see pro forma consolidation on page 10 for a
specification.
0
20
40
60
80
100
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Demant Other William Demant Invest companies
Revenue (DKK million)
52,822
Growth
6%
2022: DKK 49,607 million
EBITDA (DKK million)
10,865
Growth
13%
2022: DKK 9,604 million
Average # of employees
35,320
Growth
5%
2022: 33,664
Mkt. cap EoY (DKK billion)
159
Growth
19%
EoY 2022: DKK 134 billion
Insights and highlights
The WDI companies
Corporate information
Financial report
Pro forma consolidation
10 3
The pro forma consolidation is prepared
on the basis of average share of owner-
ship in the reported years (adjusted for
treasury shares). The market capitalisation
is prepared on the basis of share of
ownership end of period. In the market
capitalisation figures, William Demant
Demant
Foundation is eliminated.
and administration costs.
Individual entities -
100%
William Demant Invest
A/S proportional share
Parentheses show year-end share prices.
*Including the ownership of William Demant Foundation.
**Other includes Net debt subtracted value of Vision RT
and Pleo.
(DKK million)
Individual entities -
100%
William Demant Invest
A/S proportional share
Insights and highlights
The WDI companies
Corporate information
Financial report
Demant
11 3
Diversified portfolio
Over the years, we have accumulated extensive expertise in building up
and managing global companies, especially in the MedTech industry.
We have a deep understanding of the businesses where we are
involved, and we see how people benefit from the products and services
we help come to life. In addition to significant holdings in various quality
MedTech companies, we are also proud owners of companies in such
diverse areas as personal communication equipment and real estate
and financial services.
Insights and highlights
The WDI companies
Corporate information
Financial report
11 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Demant
12 3
*Incl. William Demant Foundation
ownership
Revenue (DKK million)
22,443
Growth (reported)
14%
2022: DKK 19,705 million
EBITDA (DKK million)
5,482
EBITDA margin
24%
2022: DKK 4,383 million
Average # of employees
21,168
Growth
10%
2022: 19,239
Mkt. cap EoY (DKK million)
65,284
End of 2022
42,970
WDI ownership EoY
*
58%
End of 2022
59%
Insights and highlights
WDI companies
Corporate information
Financial report
Demant
12 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Demant
13 3
About Demant A/S
Demant is a leading global hearing
healthcare company, which develops,
manufactures and sells hearing
healthcare products and services as well
as equipment for audio communications.
Focus areas are: Hearing Aids, Hearing
Care, Diagnostics and Communications,
although the latter is currently undergoing
a strategic review. Demant is listed on
Nasdaq Copenhagen.
2023 at a glance
Sales in Demant increased by 14% to DKK
22,443 million. Growth in local currency
was 15% of which 12% was organic, which
was entirely driven by Hearing Healthcare,
comprising Hearing Aids, Hearing Care
and Diagnostics. This was supported by
the hearing aid market which rebounded
after a soft year in 2022, and largely
normalised in 2023 following several years
of unusual volatility related to the
coronavirus pandemic. Communications
saw negative growth, as markets for both
gaming headsets and enterprise solutions
continued to be weak. Growth in
Communications was further impacted by
Demant's decision to wind-down its
Gaming business in August 2023.
Hearing Healthcare grew 14% organically,
driven by particularly strong performance
in Hearing Aids, which saw organic growth
of 22%. Growth was driven by market
share gains across many markets and
channels and supported by the launch of
new premium hearing aids in Q1. For
Hearing Care, strong organic growth was
driven by strong performance in many of
its medium-sized markets, while the very
good acquisitive growth was driven by the
acquisition of Chinese retailer Sheng
Wang in 2022, as well as a high level of
acquisitions in Germany. In Diagnostics,
despite very high comparative figures, the
business continued to take market share
and delivered solid organic growth, driven
by strong performance in Europe.
Earnings before interest, taxes,
depreciation and amortisation (EBITDA)
amounted to DKK 5,482 million, which is
an increase of 25% from 2022 and
corresponds to an EBITDA margin of 24%.
In February 2024, Demant announced the
decision to undertake a strategic review of
its Communications business, and for
accounting purposes, the
Communications business will be
recognised as a part of discontinued
operations in 2024 and going forward.
Read more at www.demant.com
Key financial figures
DKK million
14,946
14,469
17,905
19,705
22,443
21%
18%
26%
22%
24%
0
5,000
10,000
15,000
20,000
25,000
2019 2020 2021 2022 2023
Revenue
EBITDA margin
Demant
Board of Directors
Niels B. Christiansen
Chair
Niels Jacobsen
Vice Chair
Anja Madsen
Sisse F. Rasmussen
Kristian Villumsen
Thomas Duer
Staff-elected
Charlotte Hedegaard
Staff-elected
Heidir Hørby
Staff-elected
Executive Management
Søren Nielsen
CEO & President
René Schneider
Niels Wagner
CFO
President
14 3
Revenue (USD million)
786
Growth (reported)
9%
2022: USD 719 million
EBITDA (USD million)
139
EBITDA margin
18%
2022: USD 114 million
Average # of employees
3,945
Growth
2%
2022: 3,866
Mkt. cap EoY (DKK million)
11,558
End of 2022
14,122
WDI ownership EoY
52%
End of 2022
52%
Insights and highlights
The WDI companies
Corporate information
Financial report
Embla Medical
14 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Embla Medical
15 3
About Embla Medical hf.
Embla Medical is a global leader in
mobility solutions, including prosthetics,
bracing and supports solutions and neuro
orthotics. In addition, Embla Medical
operates a large network of patient care
clinics. The company was founded in 1971,
is headquartered in Iceland and has been
listed on the Icelandic Stock Exchange
from 1999 to 2017 and on Nasdaq
Copenhagen since 2009.
William Demant Invest started investing in
Embla Medical in 2004 and has since 2018
been the majority shareholder, today
holding around 51% of the share capital.
2023 at a glance
Embla Medical realised total revenue of
USD 786 million which was an increase of
9% compared to 2022 in reported terms.
In local currency, revenue increased by
10%, of which organic growth was 9%.
In the beginning of 2023, Embla Medical
hosted a Capital Markets Day, where they
introduced a new corporate strategy. In
connection with this, Embla Medical also
introduced a new sales segmentation as a
result of changed business mix following
continued M&A activity in recent years.
The new segmentation includes a new
sales segment, named Patient Care,
consisting of product sales and services
provided in O&P clinics owned by Embla
Medical.
Prosthetics sales increased organically by
13% compared to 2022 and accounted for
46% of group revenue, while sales of
bionic products accounted for 24% of
Prosthetics component sales. Bracing &
Supports sales increased organically by
3% and accounted for 18% of group
revenue, while the Patient Care segment
increased organically by 8% and
accounted for 36% of group revenue.
Earnings before interest, taxes, and
amortisation (EBITDA) amounted to USD
139 million in 2023, corresponding to an
EBITDA margin of 18%.
In February 2024, the company announced
its intention to introduce its new name,
Embla Medical, replacing the previous
name, Össur, which remains a product
brand name for its prosthetics and bracing
and supports solutions together with FIOR &
GENTZ, an innovative developer of neuro
orthotics, which was acquired in January
2024, and College Park, a creator of
custom-built prosthetic solutions, which
Embla Medical acquired in 2019.
Read more at www.emblamedical.com
Key financial figures
USD million
686
630
719 719
786
21%
15%
21%
16%
18%
0
200
400
600
800
1,000
2019 2020 2021 2022 2023
Revenue
EBITDA margin
EMBLA MEDICAL
Board of Directors
Niels Jacobsen
Chair
Svafa Grönfeldt
Vice Chair
Arne Boye Nielsen
Dr. Alberto Esquenazi
Guðbjörg Edda Eggertsdóttir
Executive Management
Sveinn Sölvason
President & CEO
16 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Vision RT
16 23
Insights and highlights
The WDI companies
Corporate information
Financial report
Vision RT
17 3
About Vision RT Ltd.
Vision RT is a UK-based pioneer and
leading manufacturer of surface-guided
radiation therapy (SGRT). The company,
which was founded in 2001, develops and
manufactures camera systems and
software that improves the efficiency,
efficacy, and patient comfort during
radiation therapy.
William Demant Invest acquired approx.
89% of the shares in Vision RT in 2018
thus becoming the majority shareholder
founders. In 2023, we increased our
ownership to 93%,
2023 at a glance
Vision RT continued to see strong growth
in 2023, attributed to further
consolidation and expansion of its global
market footprint, which drove market
share gains in most mature markets. The
latter was especially pronounced in the US
and selected European markets, where
most innovative and clinically proven
product portfolio, has shown to really
prosper. Vision RT has also successfully
managed to build up a significant service
business, which delivered double-digit
organic growth in 2023, adding to the
In 2023, Vision RT and DoseOptics signed
a long-term strategic partnership to
advance Cherenkov imaging in radiation
therapy, a novel technology that reveals
and visualises the radiation dose as it is
delivered. The announced partnership
cements the already established
relationship between Vision RT and
DoseOptics, which over the past five years
have worked together and developed
DoseRT
TM
that combines the merits of
Cherenkov imaging and capabilities of
SGRT. With the new long-term strategic
partnership, the ambition is to accelerate
the combined innovative efforts even
footprint to drive commercial adoption.
Since our investment in Vision RT in 2018,
we have from first-hand witnessed the
dedication and passion from the many
employees of Vision RT to support cancer
care patients in receiving the most
efficient procedures for radiation therapy.
With the most comprehensive and clinical-
proven product portfolio in the market,
Vision RT is set to continue to develop and
pioneer the market for SGRT and taking a
step closer to realise its mission of making
radiation therapy more effective for
cancer patients.
Read more at www.visionrt.com
Vison RT
Board of Directors
Niels Jacobsen
Chair
Søren Nielsen
Norman Smith
Gideon Hale
Executive Management
Norman Smith
President & CEO
WDI ownership EoY
89%
End of 2019 89
WDI ownership EoY
93%
End of 2022
89%
18 3
Revenue (SEK million)
3,512
Growth (reported)
9%
2022: SEK 3,234 million
EBITDA (SEK million)
1,136
EBITDA margin
32%
2022: SEK 1,050 million
Average # of employees
1,084
Growth
-3%
2022: 1,117
Mkt. cap EoY (SEK million)
26,349
End of 2022
25,220
WDI ownership EoY
29%
End of 2022
29%
18 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Vitrolife
Insights and highlights
The WDI companies
Corporate information
Financial report
Vitrolife
19 3
About Vitrolife AB
Vitrolife is an international medical device
company specialising in production and
development of products for assisted
reproduction. The company was founded
in 1994 and was one of the first companies
to provide IVF laboratories with high quality
ready-to-use culture media. The company
is headquartered in Gothenburg, Sweden,
and is listed on Nasdaq Stockholm.
In 2014, William Demant Invest divested its
31% share in Unisense FertiliTech A/S to
Vitrolife in exchange for shares in the
company and has continually bought up
shares in Vitrolife. William Demant Invest
has since 2017 been the largest
shareholder in Vitrolife and today holds
around 29% of the shares.
2023 at a glance
Vitrolife increased group revenue by 9% to
SEK 3,512 million. In local currency, the
growth was 4%, which was entirely organic.
In 2023, Vitrolife went through a lot of
changes. The previous CEO retired in the
first half of the year and was replaced by
Bronwyn Brophy as the new CEO in August.
In December, Vitrolife hosted a Capital
Markets Day where a new corporate
strategy and updated long-term financial
objectives were presented.
It was a challenging year for the Genetic
Services business, especially in North
America, which was impacted by external
factors relating to the ERA test and by the
choice of a large customer to insource their
basic PGT-A test. During the year, great
efforts have been put into making
laboratory operations more efficient and
increase profitability.
The Consumables business performed
strongly, especially in the first half of the
year, and the company continued its
market share gains within media, while the
Technologies business saw strong growth
in the second half of the year and
increased market penetration across all
regions. Both business areas realised
double-digit growth in 2023.
Earnings before interest, taxes,
depreciation, and amortisation (EBITDA)
amounted to SEK 1,136 million,
corresponding to an EBITDA margin of 32%
which was nearly unchanged compared to
2022.
Read more at www.vitrolife.com
Key financial figures
SEK million
1,480
1,246
1,681
3,234
3,512
40%
36%
32%
33%
32%
0
1,000
2,000
3,000
4,000
2019 2020 2021 2022 2023
Revenue
EBITDA margin
Vitrolife
Board of Directors
Jón Sigurðsson
Chair
Henrik Blomquist
Lars Holmqvist
Pia Marions
Karen Lykke Sørensen
Executive Management
Bronwyn Brophy
CEO
Insights and highlights
The WDI companies
Corporate information
Financial report
CellaVision
20 3
Revenue (SEK million)
677
Growth (reported)
6%
2022: SEK 639 million
EBITDA (SEK million)
207
EBITDA margin
31%
2022: SEK 198 million
Average # of employees
244
Growth
-4%
2022: 253
Mkt. cap EoY (SEK million)
5,054
End of 2022
5,462
WDI ownership EoY
20%
End of 202
20%
Insights and highlights
The WDI companies
Corporate information
Financial report
CellaVision
20 3
Insights and highlights
The WDI companies
Corporate information
Financial report
CellaVision
21 3
About CellaVision AB
CellaVision is a global leader of digital
solutions for medical microscopy in the
field of hematology. The company
develops analysers, software and
applications that make it easier, faster,
and more efficient to carry out blood cell
analysis, ranging from among others pre-
classification of white-blood cell types to
morphological characteristics of red-blood
cells. The company is headquartered in
Lund, Sweden, and has since 2011 been
listed on Nasdaq Stockholm.
William Demant Invest started investing in
CellaVision in 2017 and with an ownership
of 20%, William Demant Invest is the
largest shareholder in the company.
2023 at a glance
Since the outbreak of the coronavirus
pandemic, CellaVision has faced
challenging market conditions, which has
led to more volatile business conditions
than usual. This trajectory has, to some
extent, also been visible during 2023, with
negative growth in the first half of the year
followed by a strong finish to the year,
leading to modest negative organic
growth for the full year. However, we
believe that markets have largely
normalised during 2023, and we therefore
expect to see a more balanced growth
picture going forward, reflecting the
traditional seasonality in
business model.
CellaVision ended the year on a very
strong note with a continued positive
momentum in the US market coupled with
a rebound of growth in APAC, which led to
organic growth of 29% in the fourth
quarter of 2023. CellaVision estimates that
the global market penetration in large
laboratories of digital cell morphology
increased to approximately 27% in 2023.
Despite a somewhat more intensified
competitive landscape over the past
couple of years, CellaVision continues to
be the clear market leader and innovator
of intelligent medical microscopy.
After the period close, CellaVision
announced a new Strategic Alliance
Agreement with Sysmex. We believe this is
market position and will be a catalyst for
further growth in the years to come.
Finally
strategic ambition and vision to diversify
CellaVision to other applications than
hematology, articulated in the newly
launched Power of Focus strategy.
Read more at www.cellavision.com
Key financial figures
SEK million
462
471
566
639
677
32%
30%
35%
31%
31%
0
200
400
600
800
2019 2020 2021 2022 2023
Revenue
EBITDA margin
CellaVision
Board of Directors
Mikael Worning
Chair
Christer Fåhraeus
Ann-Charlotte Jarleryd
Louise Armstrong-Denby
Stefan Wolf
Kent Stråhlen
Gunnar Bro Hansen
Staff-elected
Staff-elected
Executive Management
Simon Østergaard
CEO
22 3
Revenue (EUR million)
97
Growth (reported)
0%
2022: EUR 97 million
EBITDA (EUR million)
30
EBITDA margin
31%
2022: EUR 33 million
Average # of employees
214
Growth
10%
2022: 194
Mkt. cap EoY (EUR million)
723
End of 2022
1,030
WDI ownership EoY
18%
End of 2022
16%
Insights and highlights
The WDI companies
Corporate information
Financial report
Revenio
22 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Revenio
23 3
About Revenio Group Oyj
Revenio operates within ophthalmological
devices and software solutions for eye
care. The company develops tonometers,
fundus imaging devices, perimeters and
clinical software solutions under the iCare
brand focusing on early-stage detection of
globally prevailing eye diseases, including
glaucoma, diabetic retinopathy, age-
related macular degeneration (AMD) and
cataract as well as the monitoring of these
diseases during the treatment process.
Revenio is headquartered in Helsinki,
Finland, and is listed on Nasdaq Helsinki.
William Demant Invest started investing in
Revenio in 2018 and is today the largest
shareholder with 19% ownership.
2023 at a glance
Revenio realised group revenue of EUR 97
million which was unchanged from 2022.
In local currency, the growth was 2% and
entirely organic. Following a strong first
quarter of the year, the operating
environment was challenging for Revenio
in the rest of 2023, as high interest rates
and inflation led to reluctant spending
behaviour, especially in the private equity
funded optometry sector, which reduced
the .
Towards the end of the year, core product
sales resumed double-digit growth, and
revenue from sale of tonometers grew
almost double-digit compared to 2022.
During the year, it was announced that
the AI-driven iCare ILLUME screening
solution was expanded into new
geographical areas and additional eye
disease applications. Furthermore, great
efforts have been put into the application
process of obtaining reimbursement in
the US for the HOME2 tonomoter used for
home-monitoring by glaucoma patients
during treatment.
In November, Revenio hosted a Capital
Markets Day, where management
emphasised the continued focus on
holistic eye care solutions that integrates
devices, software and analytics and
reiterated its focus on growth and on
increasing the share of recurring revenue
from software solutions.
Earnings before interest, taxes,
depreciation, and amortisation (EBITDA)
was EUR 30 million corresponding to an
EBITDA margin of 31%. Adjusted for one-
off costs, the EBITDA margin was 32 %,
which was a slight decrease of around 2
%-points compared to 2022.
Read more at www.reveniogroup.com
Key financial figures
EUR million
49
61
79
97
97
30%
36%
33%
34%
31%
0
20
40
60
80
100
2019 2020 2021 2022 2023
Revenue
EBITDA margin
Revenio
Board of Directors
Arne Boye Nielsen
Chair
Bill Östman
Vice Chair
Ann-Christine Sundell
Pekka Tammela
Riad Sherif
Executive Management
Jouni Toijala
CEO
24 3
Revenue (SEK million)
1,239
Growth (reported)
60%
2022: SEK 776 million
Revenue (EUR million)
79
Growth (reported)
29%
2020: EUR 61 million
EBITDA (SEK million)
308
EBITDA margin
25%
2022: SEK 113 million
EBITDA (EUR million)
26
EBITDA margin
33%
2020: EUR 22 million
Average # of employees
248
Growth
19%
2022: 208
Mkt. cap EoY (SEK million)
8,914
End of 2022
7,415
WDI ownership EoY
17%
End of 2022
17%
Insights and highlights
The WDI companies
Corporate information
Financial report
INVISIO
24 William 3
Insights and highlights
The WDI companies
Corporate information
Financial report
INVISIO
25 3
About INVISIO AB
INVISIO is a Danish-based company
operating within advanced
communication systems that help
professionals in noisy and mission-critical
environments to work more safely and
effectively while protecting their hearing.
The company offers personal
communication equipment and hearing
protection for primarily defence and
public safety customers. The product
portfolio includes headsets, control units,
cables and an intercom system, that
enables users of personal equipment to
communicate within a group, e.g. in a
vehicle, as well as with individuals in the
field while being on the move. INVISIO is
listed on Nasdaq Stockholm and
headquartered in Copenhagen, Denmark.
William Demant Invest started investing in
INVISIO in 2020 and today owns approx.
17% of the company.
2023 at a glance
INVISIO increased its group revenue to
SEK 1,239 million which corresponds to an
increase of 60%. In local currency, growth
was 51%, which was entirely organic and
driven by
products.
2023 was a year where INVISIO ripened
the fruit of a strong underlying market
and the investments in the
organisation, especially within R&D and
sales and marketing. The strong
performance was supported by high
market activity
products, especially in Europe, which is
not primarily a consequence of increased
defense budgets but mainly stems from
customers general and long-term
equipment modernisation programs. A
significant impact on demand arising from
increased defense budgets is not
expected until the latter part of 2024.
During the year, INVISIO launched a new
innovative control unit, that bridges audio,
data and power which reduces the
number of devices carried by the
dismounted soldier. In addition, the
company received its largest order ever
from a US Defense Department
organisation, worth SEK 130 million.
Earnings before interest, taxes,
depreciation, and amortisation (EBITDA)
amounted to SEK 308 million,
corresponding to an EBITDA margin of
25%, which is an increase of 10 %-points
compared to 2022.
Read more at www.invisio.com
Key financial figures
SEK million
514
532
593
776
1,239
28%
20%
12%
15%
25%
0
200
400
600
800
1,000
1,200
2019 2020 2021 2022 2023
Revenue
EBITDA margin
INVISIO
Board of Directors
Annika Andersson
Chair
Ulrika Hagdahl
Martin Krupicka
Charlott Samuelsson
Hannu Saastamoinen
Nicklas Hansen
Executive Management
Lars Højgård Hansen
CEO
26 3
Revenue (DKK million)
1,717
Growth (reported)
9%
2022: DKK 1,570 million
EBIT (DKK million)
1,094
EBIT margin
64%
2022: DKK 990 million
Average # of employees
670
Growth
5%
2022: 637
Mkt. cap EoY (DKK million)
12,694
End of 2022
13,304
WDI ownership EoY
42%
End of 2022
42%
Insights and highlights
The WDI companies
Corporate information
Financial report
Jeudan
26 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Jeudan
27 3
About Jeudan A/S
activities consist of investment in and
managing of commercial and residential
properties, mainly in Copenhagen and
Frederiksberg.
William Demant Invest started investing in
Jeudan in 2004 and today holds around
42% of the shares.
2023 at a glance
Jeudan saw revenue growth of 9% in a
market characterised by continued
macroeconomic uncertainty, with interest
rates and inflation levels still standing at
high levels, albeit we have seen a gradual
trend decline over the course of the year.
The revenue growth was primarily driven
constitutes more than 90% of group
revenue, of which 95% of the properties
namely the city centre of Copenhagen and
Frederiksberg. The service business
delivered a solid and value-added
contribution to group revenue, amounting
to DKK 193 million, and continues to be a
value proposition that distinguishes Jeudan
from other property companies,
business model, and cemented by a high
occupancy rate of 97.1% by year end.
Jeudan has over the past years initiated
various ambitious workstreams and targets
within the broader framework of ESG. The
latter is diligently portrayed and explained
which, among other things, highlights
s efforts to transition its car fleet
from fossil cars to electric ditto. An effort
which was awarded with a price in 2023 at
consists of
electric cars, and the ambition is to reach
90% in 2025.
Earnings before interest and taxes (EBIT)
arrived at DKK 1,094 million, up 11%
compared to last year, due to revenue
growth and sound cost control. Net result
decreased to DKK -828 million from DKK
3,359 million due to negative value
-bearing
debt and property portfolio, with higher
interest rates being the main swing factor
in value deterioration versus last year. The
property portfolio had a book value of
more than DKK 34 billion by year end,
allocated across 199 properties and
totalling almost 1 million square metres.
Read more at www.jeudan.dk
Key financial figures
DKK million
1,295
1,268
1,438
1,570
1,717
65%
66%
61%
63%
64%
0
500
1,000
1,500
2,000
2019 2020 2021 2022 2023
Revenue
EBIT margin
Jeudan
Board of Directors
Niels Jacobsen
Chair
Tom Knutzen
Vice Chair
Claus Gregersen
Helle Okholm
Nicklas Hansen
Executive Management
Per Wetke Hallgren
CEO
Søren B. Andersson
Deputy CEO
Insights and highlights
The WDI companies
Corporate information
Financial report
Board of Directors
28 3
Competent management
Respect and trust are keywords in William Demant Invest.
We respect the original values and legacy of the companies we invest in.
And we respect the unique competencies, knowledge and experience
they have built up over the years.
Equally important our collaboration must be founded on trust where we
bring our experience to the table to help a company reach its full
potential.
Insights and highlights
The WDI companies
Corporate information
Financial report
28 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Board of Directors
29 3
Niels B. Christiansen
Board member (M)
Born 1966
Joined the Board in 2019
(up for election in 2024)
Considered independent: Yes
Other directorships: LEGO A/S
(President & CEO), Demant A/S (chair),
William Demant Foundation (vice chair),
Tetra Laval S.A. (board member)
Education: Master of Science in
Engineering from the Technical University
of Denmark (DTU), MBA from INSEAD
(France)
Competences: Special qualifications
within international business management
of major, global, industrial hi-tech
corporations, including extensive board
experience from listed companies as well
as comprehensive insight into industrial
policy
Total fee in William Demant
Foundation, William Demant
Invest A/S and Demant A/S in 2023: DKK
1,825,000
Lars Nørby Johansen
Chair (M)
Born 1949
Joined the Board in 2017
(up for election in 2024)
Considered independent: Yes
Other directorships: Dansk Vækstkapital
I (chair), Copenhagen Airports A/S (chair),
Montana Møbler A/S (chair), Arp-Hansen
Hotel Group A/S (vice chair), Kadeau ApS
(board member), William Demant
Foundation (chair)
Education: Master of Social Sciences from
the University of Odense
Competences: Extensive international
experience as a corporate executive,
including vast board experience from listed
companies, Corporate Governance and
profound knowledge of the challenges
resulting from globalisation and not least
industrial policy
Total fee in William Demant
Foundation and William Demant
Invest A/S in 2023: DKK 1,200,000
Jesper Brandgaard
Vice chair (M)
Born 1963
Joined the Board in 2019
(up for election in 2024)
Considered independent: Yes
Other directorships: LEO Pharma A/S
(chair), Novonesis (vice chair), Vækst
Partner Kapital (member of advisory
board), William Demant Foundation (board
member)
Education: Master of Science in Econo-
mics and Auditing and an MBA from CBS
Competences: Special qualifications
within the area of group management in a
multinational pharmaceutical company,
including responsibility for strategy
development and implementation,
information technology, as well as financial
and accounting experience
Total fee in William Demant
Foundation and William Demant
Invest A/S in 2023: DKK 525,000
Insights and highlights
The WDI companies
Corporate information
Financial report
Board of Directors
30 3
Anna Cecilia Frellsen
Board member (F)
Born 1973
Joined the Board in 2020
(up for election in 2024)
Considered independent: Yes
Other directorships: Maternity
Foundation (CEO), Center for Ledelse
(board member), Ovacure (board
member), William Demant Foundation
(board member)
Education: Bachelor of Science in
Business Administration from CBS, MBA
from IESE (Barcelona, Spain)
Competences: Special qualifications
within global health, growth strategy,
digital health and philanthropy
Total fee in William Demant
Foundation and William Demant
Invest A/S in 2023: DKK 400,000
Tine Roed
Board member (F)
Born 1964
Joined the Board in 2021
(up for election in 2024)
Considered independent: Yes
Other directorships: Nykredit
Alternatives Core AIF-SIKAV (chair), Multi
Manager Invest (chair), Nykredit Alpha
(chair), Unit trust Sparinvest (board
member), InvestIn SICAV-RAIF (board
member), Investin (board member),
Nykredit Invest, Nykredit Almen Bolig
samt Private Banking Elite (board
member), Nykredit Alpha SICAV-RAIF
(board member), William Demant
Foundation (board member)
Education: Master of Law from the
University of Copenhagen
Competences: Special qualifications
within regulation of companies and funds
as well as deep insight into politics and
social as well as economic conditions.
Furthermore, strong skills and experience
in strategic management and
communication
Total fee in William Demant
Foundation and William Demant
Invest A/S in 2023: DKK 400,000
Board of Directors
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The WDI companies
Corporate information
Financial report
Management
31 3
Niels Jacobsen
CEO (M)
Born 1957
Education
Niels Jacobsen holds a Master of Science
degree in Economics from Aarhus
University
Group-related directorships
Demant A/S, vice chair
Embla Medical hf., chair
Vision RT Ltd., chair
Jeudan A/S, chair
Other directorships
Nissens A/S, board member
Thomas B. Thrige Foundation, chair
ABOUT YOU Holding GmbH, vice chair
ATP Langsigtet Dansk Kapital, member of
advisory board
Central Board of the Confederation of
Danish Industry, member
Nicklas Hansen
Investment Director (M)
Born 1986
Education
Nicklas Hansen holds a Master of Science
degree in Finance and Accounting from
Copenhagen Business School
Group-related directorships
Jeudan A/S, board member
INVISIO AB, board member
Vision RT Ltd., board observer
Insights and highlights
The WDI companies
Corporate information
Financial report
Our approach to ESG
32 3
Since William Demant Invest was
established in 2004, we have invested in
several companies within the healthcare
industry. Through them, we have primarily
contributed to Sustainable Development
Goal number 3; Good health and well-
being, contributing with research and
innovation and offering treatment and new
possibilities for people with health
challenges.
Aside from our contribution to good health
and well-being, we pay attention to a list of
ESG parameters and policies, such as
ethical business practices, environment
and climate, diversity and talent retainment
and attraction, both when evaluating new
potential investment opportunities and as
part of our active ownership strategy
through our board representation.
This approach acts to reduce ESG risks in
new potential investments, and with our
active ownership we manage ESG risks of
our existing portfolio. We do not expect
perfection when we invest in new
companies but consider it imperative to
use our role as investor to drive progress
on these important topics.
The companies in our portfolio all work
diligently with ESG policies and
frameworks, and we continuously monitor
and follow up on the ESG performance
through our board representation and
other interactions with the companies
over the year.
Please find the report here:
https://www.demantinvest.com
/esg-report/2023
Being an investment company, it is the impact of our investments that represents the
largest contribution to the sustainable development goals.
Insights and highlights
The WDI companies
Corporate information
Financial report
Our approach to ESG
33 3
Cash flow-positive
We invest in strong, cash flow-positive, quality companies that
hold leading positions in their industry niche.
We look for companies with products and a business model
already proven and accepted in the market.
Insights and highlights
The WDI companies
Corporate information
Financial report
35 23
Insights and highlights
The WDI companies
Corporate information
Financial report
Our approach to ESG
34 3
Financial review
Revenue (DKK million)
28,696
Growth
13%
2022: DKK 25,468 million
EBITDA (DKK million)
5,715
EBITDA margin
20%
2022: DKK 6,924 million
Average # of employees
25,439
Growth
9%
2022: 23,383
Insights and highlights
The WDI companies
Corporate information
Financial report
Financial review
36 Annual Report 2023
Insights and highlights
The WDI companies
Corporate information
Financial report
Financial review
35 3
The consolidated income statement and
balance sheet of William Demant Invest
comprise three subsidiaries Demant,
Embla Medical, Vision RT as well as the
parent company William Demant Invest.
Income statement
revenue for the full year amounted to DKK
28,696 million compared to DKK 25,468
million in 2022, corresponding to a growth
of 13%.
Earnings before interest, taxes,
depreciation and amortisation (EBITDA)
amounted to DKK 5,715 million resulting
in an EBITDA margin of 20% compared to
a margin of 27% in 2022. Operating profit
(EBIT) was DKK 3,978 million
corresponding to a negative growth of
26%, which is mainly driven by
impairment and value adjustments of
assets and financial obligations by two of
our associated companies. Profit before
tax was DKK 1,805 million compared to
DKK 4,652 million in 2022.
In 2023, the profit for the year amounted
to DKK 86 million for the Group and
result was DKK -892 million. Profit for the
year is deemed satisfactory.
Equity and capital structure
assets amounted to DKK 61,502 million.
This is the same level as of 31 December
2022, which is primarily due to an increase
in goodwill related to acquisitions offset by
an impairment in associates. Positively
impacted by profit and a capital increase,
consolidated equity in 2023 increased by
8% to DKK 30,146 million of which DKK
5,358 million is attributable to non-
controlling interests and DKK 27,788
million to the shareholders of William
Demant Invest.
No dividends have been paid out to William
Demant Foundation in 2023 or 2022.
Cash flows
Overall the Group generated very strong
cash flow in 2023, where cash flow from
operating activities (CFFO) amounted to
DKK 5,230 million in 2023 corresponding
to an increase of 68%, whereas cash flow
from investing activities amounted to an
outflow of DKK 3,313 million in 2023
corresponding to a decrease in the out-
flow of 50% compared to 2022. Finally,
cash flow from financing activities
amounted to DKK -1,806 million in 2023
mainly related to repayments of
borrowings.
Tax
William Demant Invest is the
administration company for the joint
taxation of Demant and other Danish
subsidiaries. Total corporate tax expensed
in 2023 amounted to DKK 962 million
compared to DKK 692 million in 2022. Tax
in associated companies is paid in the
respective companies.
Knowledge resources
William Demant Invest has 13 employees
but does to a great extent rely on the
development and retention of knowledge
resources in subsidiaries and associated
companies, where we have seen an
increase of 9% in the average number of
employees in the Group. Further
elaboration of knowledge resources can be
found in subsidiaries and associated
Risks
relate to developments in our subsidiaries
and associated companies, global health-
care and Danish commercial occupancy
rates and the financial markets. For a
further review of financial risks, please
refer to note 4.1. Further elaboration on
business-related risks can be found in
reports and webpages.
Research and development activities
development activities are placed in
subsidiaries and associated companies.
Further elaboration on research and
development activities can be found in
reports and webpages.
Insights and highlights
The WDI companies
Corporate information
Financial report
Key figures and financial
ratios
36 3
DKK million
We refer to section 9.1 for a description of the accounting policies for key figures and financial ratios.
Insights and highlights
The WDI companies
Corporate information
Financial report
Management statement
37 3
Executive Board
Board of Directors
Insights and highlights
The WDI companies
Corporate information
Financial report
report
38 3
Commentary.
Financial Statements
Insights and highlights
The WDI companies
Corporate information
Financial report
report
39 3
of the Financial Statements
• Obtain an understanding of internal
• Evaluate the appropriateness of
• Conclude on the appropriateness of
CVR No 33771231
Insights and highlights
The WDI companies
Corporate information
Financial report
Consolidated income
statement
40 3
(DKK million)
28,696
25,468
8,082
7,083
20,614
18,385
1,796
1,652
12,095
11,217
1,815
1,839
930
412
145
2,585
835
1,805
962
692
843
757
192
892
2,728
978
Insights and highlights
The WDI companies
Corporate information
Financial report
Consolidated statement
of comprehensive
income
41 3
(DKK million)
183
45
21
251
46
48
106
202
17
32
205
174
19
105
4
27
15
220
96
134
975
2,486
841
1,186
134
3
3
9
9
23
44
4
27
21
59
Insights and highlights
The WDI companies
Corporate information
Financial report
Consolidated balance
sheet at 31 December
42 3
(DKK million)
24,557
23,605
3,448
12,911
14,261
277
371
3,093
477
566
201
111
857
823
21,264
22,060
49,096
48,615
3,827
3,890
4,736
4,605
189
170
256
206
229
527
473
60
103
598
544
283
964
12,406
12,930
61,502
61,545
(DKK million)
4
4
24,859
24,863
23,199
5,283
4,659
30,146
27,858
2,829
2,609
801
213
184
1,122
684
543
17,923
15,239
6,624
796
795
1
-
688
394
130
3,335
38
24
742
645
89
175
13,433
18,448
31,356
33,687
61,502
61,545
Insights and highlights
The WDI companies
Corporate information
Financial report
Consolidated cash flow
statement
43 3
(DKK million)
6,852
3,194
6,023
9,323
288
250
881
773
192
1,548
-1,806
111
96
65
253
157
53
37
1,739
1,746
1,739
1,746
(DKK million)
3,978
5,342
2,722
62
244
696
8
762
264
78
-
85
197
259
361
75
1,352
576
688
636
3,107
2,133
6,295
-
912
282
343
872
771
21
16
293
347
246
259
-3,313
-6,569
Insights and highlights
The WDI companies
Corporate information
Financial report
Consolidated statement
of changes in equity
44 3
(DKK million)
Other reserves
Share capital
Foreign currency
translation reserve
Hedging reserve
Retained earnings
William Demant
shareholder's share
Non-controlling
Equity
23,062
23,199
27,858
-
-
-
892
892
-
72
-
-
72
111
183
-
-
-
21
21
-
21
-
-
-
19
-
-
59
-
59
47
106
-
-
-
11
11
8
19
-
1
11
10
21
-
71
24
12
83
137
220
-
71
24
880
975
841
134
-
-
-
244
-
-
-
2,000
2,000
-
2,000
-
-
-
161
161
188
15
25,021
25,063
30,146
Insights and highlights
The WDI companies
Corporate information
Financial report
Consolidated statement
of changes in equity
continued
45 3
(DKK million)
Other reserves
Share capital
Foreign currency
translation reserve
Hedging reserve
Retained earnings
William Demant
shareholder's
share
Non-controlling
Equity
196
28
21,180
21,352
25,734
-
-
-
2,728
2,728
1,040
3,768
-
104
-
-
104
45
-
-
-
251
251
-
251
-
-
27
-
27
21
48
-
-
114
-
114
-
-
-
105
-
20
15
33
26
59
-
102
207
242
146
96
-
102
2,521
1,186
-
-
-
687
687
945
1,632
-
-
-
23,062
23,199
27,858
Insights and highlights
The WDI companies
Corporate information
Financial report
Notes to consolidated
financial statements
46 3
Section 1 page 49
Operating activities and cash
flow
1.1 Revenue
1.2 Employees
1.3 Amortisation, depreciation and
impairment losses
1.4 Proposed dividend
1.5 Inventories
1.6 Trade receivables
1.7 Customer loans
1.8 Specification of non-cash items etc.
Section 2 page 58
Exchange rates and hedging
2.1 Exchange rate risk policy
2.2 Sensitivity analysis in respect of
exchange rates
2.3 Hedging and forward exchange
contracts
Section 3 page 61
Assets base
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Leases
3.4 Other non-current assets
3.5 Impairment testing
Section 4 page 72
Capital structure and financial
management
4.1 Financial risk management and
capital structure
4.2 Net financial items
4.3 Categories of financial instruments
4.4 Net interest-bearing debt, liquidity
and interest rate risks
4.5 Fair value hierarchy
Section 5 page 81
Tax
5.1 Tax on profit
5.2 Deferred tax
Section 6 page 85
Acquisitions and divestments
6.1 Acquisition of enterprises and
activities
6.2 Divestment of enterprises and
activities
6.3 Discontinued operations and assets
held for sale
Section 7 page 92
Provisions, other liabilities etc.
7.1 Provisions
7.2 Other liabilities
7.3 Deferred income
7.4 Contingent liabilities
Section 8 page 98
Other disclosure requirements
8.1 Related parties
8.2 Fees to parent's auditors appointed
at the annual general meeting
8.3 Government grants
8.4 Events after the balance sheet date
Section 9 page 101
Basis for preparation
9.1 Group accounting policies
9.2 Accounting estimates and
judgements
Section 10 page 110
Notes to parent financial
statements
10.1 Employees
10.2 Fees to parent's auditors appointed
at the annual general meeting
10.3 Net financial items
10.4 Financial assets
10.5 Debt to William Demant Foundation
10.6 Contingent liabilities
10.7 Proposed distribution of net profit
10.8 Related parties
10.9 Shareholder
10.10 Events after the balance sheet date
10.11 Parent accounting policies
Section 11 page 115
Subsidiaries and associates
Subsidiaries and associates in William
Demant Invest A/S
Subsidiaries in Vision RT Ltd.
Subsidiaries in Embla Medical hf.
Subsidiaries and associates in Demant
Group
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Section 1
Operating activities
and cash flow
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Consolidated revenue derives from the
sale of goods and services and is broken
region.
Revenue generated in Denmark is DKK
343 million (DKK 348 million in 2022). For
the Group, the ten largest customers
account for approx. 12% (10% in 2022) of
total consolidated revenue.
Value adjustments transferred from
equity relating to derivatives made for
hedging foreign exchange risks on
revenue amount to DKK 106 million (DKK
-202 million in 2022).
1.1 Revenue
(DKK million)
(DKK million)
(DKK million)
(DKK million)
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Nature of goods and services
Control is normally transferred to the
customer when the goods are shipped to
the customer, though delivery terms can
vary, and control may be transferred at a
later point. When selling our products to
customers, we transfer control and
recognise revenue when the product is
delivered to the customer at a given point
in time. For hearing aids, the revenue is
recognised when it is initially fitted to the
countries, the users are granted a trial
period. In such cases, the transfer of
control occurs when the trial period
expires.
In some countries, customers are given
the right to return our products for a
certain period. In such cases, the expected
returns are estimated based on an
analysis of historical experience adjusted
for any known factors impacting
expectations for future return rates.
Revenue and cost of goods sold are
adjusted accordingly, and contract
liabilities (refund liabilities) and rights to
the returned goods (included in prepaid
expenses) are recognised for the expected
returns.
Our activities also involve delivery of
various services, such as extended
warranties, warranty-related coverages
(loss and damage) and after-sales services
(e.g. fine-tuning of products, additional
test, cleaning and service checks).
Revenue from these services is recognised
on a straight-line basis over the warranty
or service period as the users makes use
of the services continuously. Some users
purchase a battery package or are
provided with batteries free of charge as
part of the purchase of some products,
entitling them to free batteries for a
certain period. Revenue is recognised
when the customer receives the batteries
or is provided with batteries free of charge
as part of the purchase of product. When
available, we use an observable price to
determine the stand-alone selling price for
the separate performance obligations
related to these services, and in countries
where observable prices are not available,
we use a cost-plus-margin method.
The standard warranty period for our
products varies between countries but is
typically 12 and 24 months and for certain
products or countries up to 48 months.
The extended warranty covers periods
beyond the standard warranty period or
standard warranty terms. Payment terms
vary significantly across countries and
depend on whether the customer is a
private or public customer.
The majority of our products sold to end-
users are invoiced and paid for after the
initial accept, but some customers choose
to have the products financed by us. The
transaction price of such arrangements is
adjusted for any significant financing
benefit, and the financing component is
recognised as financial income.
Accounting policies
Revenue is recognised when obligations
under the terms of the contract with the
customer are satisfied, which usually
occurs with the transfer of control of our
products and services. Revenue is
measured as the consideration we expect
to receive in exchange for transferring
goods and providing services net of the
estimated discounts or other customer-
related reductions.
Accounting estimates and judgements
Discounts, returns etc. (estimate)
Discounts, loyalty programmes and other
revenue reductions are estimated and
accrued when the related revenue is
recognised. To make such estimates is a
matter of judgement, as all conditions are
not known at the time of sale, e.g. the
number of units sold to a given customer
or the expected utilisation of loyalty
programmes. Sales discounts, rebates and
loyalty programmes are adjusted, as we
gain better information on the likelihood
that they will be realised and the value at
which they are expected to be realised.
Sales discounts and rebates are
recognised under other cost payables in
other liabilities, and loyalty programmes
are recognised in deferred income.
Depending on local legislation and the
conditions to which a sale is subject, some
customers have the option to return
purchased goods for a refund. Based on
historical return rates, an estimate is
made of the expected returns and a
provision is recognised. This provision is
updated, as returns are recognised or
when we collect more accurate data on
return rates.
After-sales services (estimate)
After-sales services are provided to end-
users of our products and are based on
estimates as not all end-users make use of
these services. The estimate is a matter of
judgement and is based on the number of
visits, the duration of the visits of an
and the expected
number of end-users that make use of the
after-sales services.
1.1 Revenue continued
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Remuneration of the Executive Board
The total remuneration of the Executive
Board comprises:
• Wages and salaries consisting of base
salary.
including a bonus scheme based on the
development in the fair value of the net
assets within William Demant Invest A/S
and William Demant Foundation.
Remuneration of the Board of
Directors
The remuneration of the Board of
Directors comprises a fixed fee and is not
incentive based.
In 2023, the basic remuneration of a
was DKK 250,000 (DKK 250,000 in 2022).
The Chair of the Board of Directors
receives three times the basic
remuneration and the Deputy Chair one
and a half time the basic remuneration.
Accounting policies
Employee costs comprise wages, salaries,
social security contributions, annual and
sick leave, bonuses and non-monetary
benefits and are recognised in the year in
which the associated services are
rendered by the employees. Where
William Demant Invest A/S provides long-
term employee benefits, the costs are
accrued to match the rendering of the
service by the employees in question.
1.2 Employees
(DKK million)
25,439
23,383
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For accounting policies on amortisation
and depreciation, please refer to
Note 3.1, Note 3.2 and Note 3.3.
1.4 Proposed
dividend
The Board of Directors will at the annual
general meeting propose not to distribute
dividend for 2023.
1.3 Amortisation, depreciation and impairment losses
(DKK million)
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Inventories of DKK 69 million (DKK 54
million in 2022) are expected to be sold or
used in production after more than 12
months.
Write-downs for the year are shown net,
as breakdown into reversed write-downs
and new write-downs is not possible.
Accounting policies
Raw materials, components and goods for
resale are measured at cost according to
the FIFO principle (according to which the
most recently purchased items are
considered to be in stock) or at their net
realisable value, whichever is lower.
Group-manufactured finished goods and
work in progress are measured at the
value of direct cost, direct payroll costs,
consumables and a proportionate share
of indirect production costs, which are
allocated on the basis of the normal
capacity of the production facility. Indirect
production costs include the
proportionate share of capacity costs
directly relating to Group-manufactured
goods and work in progress.
The net realisable value of inventories is
calculated as the estimated selling price
less costs of completion and costs to sell.
Accounting estimates and judgements
Indirect production cost (significant
judgement)
Indirect production cost allocations to
inventory are based on relevant
judgements related to capacity utilisation
at the production facility, production time
and other product-related factors. The
judgements are reviewed regularly to
ensure that inventories are measured at
their actual production cost. Changes in
judgements may affect gross profit
margins as well as the valuation of work in
progress, finished goods and goods for
resale.
Obsolescence provision (estimate)
The obsolescence provision for
inventories is based on the expected sales
forecast for the individual types of hearing
devices, diagnostic equipment, hearing
implants, communication devices and
prosthetics equipment. Sales forecasts are
based on Management
market conditions and trends, and the
obsolescence provision is subject to
changes in these assumptions.
1.5 Inventories
(DKK million)
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The opening balance of trade receivables
in 2022 amounted to DKK 4,020 million.
Of the total amount of trade receivables,
DKK 298 million (DKK 251 million in 2022)
is expected to be collected after 12
months. For information on security and
collateral, please refer to Credit risks in
note 4.1.
Accounting policies
Trade receivables and contract assets are
measured at amortised costs less
expected lifetime credit losses.
For trade receivables, the Group has a
simplified approach to determining the
expected credit loss. The allowance for
credit loss is measured through a
provision matrix. To measure the
expected credit loss, trade receivables
have been grouped based on shared
credit risk and the number of days that
have passed after the due date.
Allowances have also been made for trade
receivables not due. For trade receivables
that are considered credit-impaired, the
expected credit loss is determined on an
individual basis.
Accounting estimates and judgements
Impairment of receivables (estimate)
The Group has historically incurred
insignificant losses on trade receivables
and contract assets.
Allowance for impairment is calculated for
trade receivables. The allowance is
determined as expected credit losses
ability to pay. These assessments are
made by local management for uniform
groups of debtors based on a maturity
analysis. When indicated by special
circumstances, impairments are made for
individual trade receivables.
1.6 Trade receivables
(DKK million)
Balance not
due
0-3 months
overdue
3-6 months
overdue
6-12
months
overdue
More than
12 months
overdue
Total
carrying
amount
(DKK million)
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Accounting policies
Customer loans are initially recognised at
fair value less transaction costs and
subsequently measured at amortised
costs less loss allowance or impairment
losses. Any difference between the
nominal value and the fair value of the
loans at initial recognition is treated as
prepaid discount on future sales to the
customer and is recognised in the income
statement as a reduction of revenue when
the customer purchases goods from the
Group.
The fair value of customer loans at initial
recognition is measured as the present
value of future repayments on the loan
discounted at a market interest rate. The
effective interest on customer loans is
recognised as financial income in the
income statement over the term of the
loans.
A loss allowance is recognised on initial
recognition and subsequently based on a
12-months expected credit loss model. If a
significant increase in the credit risk has
arisen since the initial recognition of the
loan, a loss allowance based on lifetime
expected credit loss is provided.
Accounting estimates and judgments
Accounting treatment (judgment) and
impairment (estimate) of loans
The Group provides sales-related
financing in the form of loans to some of
its customers. These customer loan
arrangements are complex, cover several
aspects of the customer relationship and
may vary from agreement to agreement.
Management assesses the recognition
and classification of income and expenses
for each of these agreements, including
whether the agreement represents a
discount on future sales. Management
also assesses whether there is an
indication of impairment based on current
economic market conditions and changes
(estimate).
1.7 Customer loans
(DKK million)
Expected
credit loss
rate
Gross
carrying
amount
Carrying
amount
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1.8 Specification of non-cash items etc.
(DKK million)
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Exchange rates and
hedging
56 3
Section 2
Exchange rates and
hedging
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Exchange rates and
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57 3
The Group has cash flow in foreign
currencies due to its international
operations which exposes the Group to
fluctuations in exchange rates. Hedging
against exchange rate exposures ensure
greater predictability in profit. The
exposure of the Group mainly come from
Demant A/S, which manufactures and
distributes most of its products from the
production facilities in Poland and Mexico.
The products are sold to its regional
affiliates and as a general principle
invoiced in the functional currency of the
buying entities.
The currencies that mainly contribute to
dollars, British pound, Canadian dollars,
Australian dollars, Japanese yen, Polish
zloty, Icelandic Krona and Chinese yuan
(renminbi). The aim of the
exposure to exchange rate fluctuations,
mainly by entering into forward exchange
related to the impact that exchange rate
fluctuations have on consolidated
earnings for up to 18 months rolling
forward.
Hedging is done in accordance with the
overall adequate hedging level in the rage
of 70% -
exchange rate fluctuations. The Group
does not undertake any financial
transactions in foreign currencies of a
speculative nature. Cash flow hedge
accounting are applied to the extent
possible to mitigate negative impacts of
adverse development in exchange rates
on the consolidated operating result of
the Group.
Due to the fixed exchange rate policy
towards the euro in Denmark, the risk
associated with exposure to fluctuations is
considered to be limited and is not
hedged.
operating profit (EBIT) and consolidated
equity, given a change of 5% in the
currencies with the highest exposures.
The exchange rate impact on EBIT has
been calculated on the basis of the
not take into account a possible exchange
rate impact on balance sheet values in
those currencies.
2.1 Exchange rate risk policy
2.2 Sensitivity analysis in respect
of exchange rates
(DKK million)
(DKK million)
*Estimated on a non-hedged basis, i.e. the total annual exchange rate effect, excluding forward exchange contracts.
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Open forward exchange contracts at the
balance sheet date may be specified as
shown in the table, with the contracts for
sale of currencies being shown with their
negative contract values. The expiry dates
reflect the periods in which the hedged
cash flows are expected to be realised.
Realised forward exchange contracts are
recognised in the income statement
together with the items, typically the
revenue in foreign currency, that such
contracts are designed to hedge. In 2023,
our forward exchange contracts realised a
gain of DKK 106 million (loss of DKK 202
million in 2022), which increased reported
exchange contracts were effective in 2023
and 2022.
Accounting policies
On initial recognition, derivatives are
measured at fair value at the settlement
date. After initial recognition, derivatives
are measured at fair value at the balance
sheet date. Any positive or negative fair
values of derivatives are recognised as
separate items as unrealised gains/losses
on financial contracts in the balance
sheet.
Forward exchange contracts and interest
swaps are measured based on current
market data and by use of commonly
recognised valuation methods. Please
refer to Note 4.5.
Any changes in fair values of derivatives
classified as hedging instruments and
satisfying the criteria for hedging the fair
value of a recognised asset or a
recognised liability, are recognised in the
income statement together with any
changes in the fair value of the hedged
asset or hedged liability.
Any changes in fair values of derivatives
classified as hedging instruments and
satisfying the criteria for effective hedging
of future transactions are recognised in
other comprehensive income.
The ineffective portion is recognised
directly in the income statement. On
realisation of the hedged transactions, the
accumulated changes are recognised
together with the related transactions.
Derivatives not fulfilling the conditions for
treatment as hedging instruments are
considered trading investments and
measured at fair value, with fair value
adjustments being recognised on an
ongoing basis in the income statement.
2.3 Hedging and forward exchange contracts
(DKK million)
Expiry
Hedging period*
Average
hedging
rate
Contractual
value
Fair value
Positive fair
value at
year-end
Negative
fair value at
year-end
*Hedging periods represent the estimated periods for which the exchange rate exposure of a relative share of our
revenue in a currency will be covered by forward exchange contracts.
**Forward exchange contracts in euros hedged a fixed committed financial loan.
(DKK
million)
Expiry
Hedging period
Average
hedging
rate
Contractual
value
Fair value
Positive fair
value at
year-end
Negative
fair value at
year-end
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Section 3
Assets base
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3.1 Intangible assets
(DKK million)
Goodwill
Patents and
licences
Other
intangible
assets
Assets
under
develop-
ment*
Total
intangible
assets
Goodwill
Patents and
licences
Other
intangible
assets
Assets
under
develop-
ment*
Total
intangible
assets
*Prepayments are included in assets under development.
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Accounting policies
On initial recognition, goodwill is
recognised and measured as the
difference between the acquisition cost
including the value of non-controlling
interests in the acquired enterprise and
the fair value of any existing investment in
the acquired enterprise and the fair
values of the acquired assets, liabilities
and contingent liabilities. Please refer to
Accounting policies in Note 6.1.
On recognition, goodwill is allocated to
corporate activities that generate
independent payments (cash-generating
units). The definition of a cash-generating
structure as well as the internal financial
management reporting. Goodwill is not
amortised but is tested for impairment at
least once a year. If the recoverable
amount of a cash-generating unit is lower
than the carrying amounts of property,
plant and equipment and intangible
assets, including goodwill, attributable to
the particular cash-generating unit, the
particular assets will be written down.
Patents and licences acquired from third
parties are measured at cost less
accumulated amortisation and
impairments. Patents and licenses are
amortised on a straight-line basis over
their estimated useful lives.
Other intangible assets consist of
software, other rights than patents and
licenses and other intangible assets
acquired in connection with acquisitions,
primarily brand value, customer bases
and non-compete agreements.
Other intangible assets are measured at
cost less accumulated amortisation and
impairment losses. Other intangible
assets are amortised on a straight-line
basis over their estimated useful lives,
except for other rights which are not
amortised, due to the residual value of
other rights are considered to exceed the
cost price and are instead tested for
impairment annually. Please refer to Note
3.5.
Assets under development include
internally developed IT systems. Assets
under development is measured at cost,
which include direct salaries, consultant
fees and other direct costs attributable to
the development. Assets under
development are not amortised, as the
assets are not available for use.
Patents and licenses
5-50 years
Software
2-10 years
Brand value
5-10 years
Customer relationships
4-10 years
Non-compete
agreements
For the
duration of the
agreement
Accounting estimates and judgements
Product development (judgement)
opinion that the
product development undertaken by the
Group today cannot meaningfully be
allocated to either the development of
new products or the further development
of existing products. Moreover, as the
products are subject to approval by
various authorities, it is difficult to
determine the final completion of new
products.
3.1 Intangible assets continued
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3.2 Property, plant and equipment
(DKK million)
Land and
buildings
Plant and
machinery
Other plant,
fixtures and
operating
equipment
Leasehold
improve-
ments
Assets
under
construc-
tion*
Total
property,
plant and
equipment
Land and
buildings
Plant and
machinery
Other plant,
fixtures and
operating
equipment
Leasehold
improve-
ments
Assets
under
construc-
tion*
Total
property,
plant and
equipment
*Prepayments are included in assets under construction.
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Accounting policies
Property, plant and equipment are
recognised at cost less accumulated
depreciation and impairment losses. Cost
is defined as the acquisition price and
costs directly relating to the acquisition
until the point in time when the particular
asset is ready for use. For assets produced
by the Group, cost includes all costs
directly attributable to the production of
such assets, including materials,
components, sub-supplies and payroll.
If the acquisition or the use of an asset
requires the Group to defray costs for the
demolition or restoration of such asset,
the calculated costs hereof are recognised
as a provision and as part of the cost of
the particular asset, respectively.
Assets consisting of various elements will
be depreciated separately if their useful
lives are not the same. Property, plant and
equipment are depreciated on a straight-
line basis over their estimated useful lives.
Land is not depreciated.
Accounting estimates and judgements
Useful life and residual value (estimate)
The depreciation basis is cost less the
estimated residual value of an asset after
the end of its useful life. The residual
value is the estimated amount, which
could after deduction of costs to sell be
obtained through the sale of the asset
today, such asset already having the age
and being in the state of repair expected
after the end of its useful life. The residual
value is determined at the time of
acquisition and is reviewed annually. If the
residual value exceeds the carrying
amount, depreciation will be
discontinued.
Depreciation methods, useful lives and
residual values are reviewed annually.
Property, plant and equipment are written
down to their recoverable amounts, if
these are lower than their carrying
amounts.
3.2 Property, plant and equipment continued
Buildings
25-50 years
Technical installations
2-10 years
Plant and machinery
3-10 years
Plant and machinery,
wind farm
20-25 years
Other plant, fixtures and
operating equipment
3-10 years
IT hardware and software
2-5 years
Leasehold improvements
Up to 10 years
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Approx. 9
of property agreements. The lease terms
are of various length and may contain
extension and termination options.
Management exercises significant
judgement in determining whether it is
reasonably certain that these extension
and termination options will be exercised.
Accounting policies
Lease assets
Lease assets and liabilities are recognised
in the balance sheet at the
commencement date of the contract, if it
is or contains a lease. Lease assets are
recognised at cost less accumulated
depreciation and impairment.
Cost is defined as the lease liability
adjusted for any lease payments made at
or before the commencement date. Lease
assets are depreciated on a straight-line
basis over the lease term.
Lease liabilities
Lease liabilities are measured at the
present value of future payments, using
the interest rate implicit in the lease
agreement. Lease payments are
borrowing rate adjusted for the functional
currencies and length of the lease term, if
the implicit interest rate in the lease
agreement cannot be determined.
Lease payments contain fixed payments
less any lease incentives receivable,
variable lease payment that depend on an
index or a rate as well as payments of
penalties for terminating the lease, if the
terms of the lease warrants that the
Group exercises that option.
The lease liability is remeasured if or when
the future payment or lease term
changes. Any net remeasurement of the
lease liability is recognised as an
adjustment to the lease asset. If the
carrying amount of the lease asset is
reduced to zero, the adjustment will be
recognised in the income statement.
Additional information
Short-term lease expenses, low-value
assets and variable lease payments are
classified as operating expenses in the
income statement.
Please refer to Note 4.4 for a maturity
analysis of the lease liabilities.
3.3 Leases
(DKK million)
(DKK million)
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Accounting estimates and judgements
Lease term (judgement)
The lease term is the period during which
the lease contract is enforceable. If the
original expiry date of a lease contract has
passed, typically in the case of property
leases, but the contract continues without
a determined expiry date, the lease term
is set for an estimated period during
which the lease contract is expected to be
enforceable. This assessment is based on
consideration the location of the lease,
capitalised leasehold improvements and
the experience with similar leases for the
specific area.
Extension and termination options
(significant judgement)
When determining the lease term for
lease agreements containing extension
and termination options, Management
considers circumstances that create a
financial incentive to exercise an
extension option or not to exercise a
termination option. Extension and
termination options are only included in
the lease term if it is reasonably certain
that a lease will be extended/terminated.
3.3 Leases continued
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3.4 Other non-current assets
Other receivables
Other receivables
(DKK million)
Investments
in associates
Receivables
from
associates
Other
investments
Customer
loans
Other
Investments
in associates
Receivables
from
associates
Other
investments
Customer
loans
Other
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Transactions with associates
In 2023, the Group recognised revenue
from associates of DKK 645 million (DKK
612 million in 2022). Further, the Group
received royalties from and paid licence
fees of net DKK 12 million (DKK 18 million
in 2022), purchased materials and
received other fees from associates
amounting to net expenses of DKK 11
million (DKK 18 million in 2022), and
received dividends of DKK 200 (DKK 259
million in 2022).
In 2023, the Group received interest
income of DKK 24 million (DKK 16 million
in 2022). The transactions with related
Under the provisions of contracts
concluded with associates, the Group is
not entitled to receive dividends from
certain associates. This is reflected in the
profit included in the income statement,
as no profit is recognised if the Group is
not entitled to receive dividends.
Accounting policies
Investments in associates are recognised
and measured using the equity method,
i.e. investments are recognised in the
balance sheet at the proportionate share
of the equity value determined in
policies after the deduction and addition
of proportionate intra-group gains and
losses, respectively, and after the addition
of the carrying amount of any goodwill.
The proportionate shares of profit after
tax in associates are recognised in the
in unrealised intra-group profits less any
impairment loss relating to goodwill.
The proportionate shares of all
transactions and events, which have been
recognised in other comprehensive
income in associates, are recognised in
the consolidated other comprehensive
income. On the acquisition of interests in
associates, the acquisition method is
applied.
3.4 Other non-current assets - continued
(DKK million)
(DKK million)
2023
2022
2023
2022
*Included in non-current and current liabilities, respectively. Financial liabilities consists of borrowings, deposits and
lease liabilities.
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Assets base
68 3
Impairment testing is carried out for the
Group's four cash-generating units: (1)
Prosthetics, Bracing & Supports, (2)
Radiotherapy, (3) Hearing Healthcare and
(4) Communications. Based on the
impairment tests performed, a material
excess value was identified in each cash-
generating unit, compared to the carrying
amount, for which reason no impairment
of goodwill was made on 31 December
2023. This conclusion is supported by the
fact that the market capitalisations of
Demant A/S and Embla Medical hf. on
Nasdaq Copenhagen by far exceeds the
equity value of the companies.
The impairment testing is performed as a
test of the value in use, including a five-
year budget/projection period from 2024-
2028.
Future cash flows are based on the
budget for 2024, on strategy plans and on
projections hereof. Projections extending
beyond 2024 are based on general
parameters, such as expected market
growth, selling prices and profitability
assumptions.
The market growth rate in the non-
invasive orthopaedics, radiation oncology
and the hearing aid industry as well as for
audio solutions is predominantly
determined by the following factors:
Prosthetics, Bracing & Supports
Growth in emerging markets due to
increased utilisation of prosthetic
solutions in the markets, better
healthcare coverage and increasing
disposable income.
Increased utilisation of higher quality
prosthetics.
Increasing share of elderly with more
active lifestyles.
Radiotherapy
• Surface Guided Radiation Therapy
(SGRT) becoming standard of care in all
major markets driving market growth
and increased penetration.
• Vision RT is the clear market leader and
SGRT innovator with 80-95% market
shares in key geographies.
• Growing demographics and an
increasing share of elderly in the
population driving demand for cancer
care treatment and SGRT.
Hearing Healthcare
Growing demographics and an increasing
share of elderly in the population
driving stable volume growth in the
hearing aid market.
Expansion of diagnostic instruments and
services across the world.
Increased penetration rates of hearing
healthcare solutions due to education,
increased affluence and availability.
Communications
Increasing adoption of Unified
Communications and Collaboration
equipment, especially professional
headsets.
Emergence and establishment of video
solutions for enterprises.
Sensitivity calculations show that even a
significant increase in the discount rates
or a significant reduction of the growth
assumptions will not change the outcome
of the impairment tests. Apart from
goodwill, all intangible assets have limited
useful lives.
The goodwill allocation per cash-
generating unit is presented in the table.
The terminal values for the period after
2028 and the discount rates used in the
impairment tests for the four cash-
generating units are based on the growth
assumptions in the table.
3.5 Impairment testing
(DKK million)
Terminal
growth rate
WACC
Carrying amount
goodwill
Terminal
growth rate
WACC
Carrying amount
goodwill
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Assets base
69 3
Accounting estimates and judgements
Cash-generating units (judgements)
Impairment testing is carried out annually
on preparation of the annual report or on
indication of impairment in which
discounted values of future cash flows are
compared with carrying amounts. In
Hearing Healthcare, the Group enterprises
cooperate closely on R&D, purchasing,
production, marketing and sale, as the use
of resources in the individual markets is
coordinated and monitored by
Management in Denmark. Group
enterprises are thus highly integrated. Any
business activity that largely acts with
autonomy in relation to the Group and
whose profitability can be measured
independently of the other activities
constitutes a separate cash-generating
unit. Management therefore considers it
most appropriate to separate the activities
into four cash-generating units,
Prosthetics, Bracing & supports,
Radiotherapy, Hearing Healthcare and
Communications for which impairment
testing is carried out.
Accounting policies
The carrying amounts of property, plant
and equipment and intangible assets with
definite useful lives as well as investments
in associates are reviewed at the balance
sheet date to determine whether there
are indications of impairment. If so, the
recoverable amount of the particular
asset is calculated to determine the need
for impairment, if any. The recoverable
amounts of goodwill and other intangible
assets with indefinite useful lives will be
estimated, whether or not there are
indications of impairment.
The recoverable amount is estimated for
the smallest cash-generating unit of which
the asset is part. The recoverable amount
is determined as the higher of the fair
value of the asset or cash-generating unit
less costs to sell and the value in use of
such asset or unit. On determination of
the value in use, estimated future cash
flows will be discounted to their present
values using a discount rate that reflects
partly current market valuations of the
time value of money, and partly the
special risks attached to the particular
asset or cash-generating unit for which no
adjustment has been made in the
estimated future cash flows. If the
recoverable amount of a particular asset
or cash-generating unit is lower than its
carrying amount, such asset or unit is
written down to its recoverable amount.
Impairment losses are recognised in the
income statement. On any subsequent
reversal of impairment losses due to
changes in the assumptions on which the
calculation of the recoverable amount is
based, the carrying amount of an asset or
cash-generating unit is increased to the
adjusted estimate of the recoverable
amount, however not exceeding the
carrying amount of the asset or cash-
generating unit, had the particular asset
or cash-generating unit not been written
down. Impairment of goodwill is not
reversed.
3.5 Impairment testing continued
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Financial report
Section 4
Capital structure and
financial management
70 3
Section 4
Capital structure and
financial management
Insights and highlights
The WDI companies
Corporate information
Financial report
72 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 4
Capital structure and
financial management
71 3
Policies relating to financial risk
management and capital structure
The purpose and focus of financial risk
management is to identify risks in respect
of exchange rates, interest rates, credit
and liquidity with an aim to protect the
Group against potential losses and ensure
current year are only to a limited extent
affected by changes or events in the
surrounding world be they changes in
exchange rates or in interest rates. It is
Group policy to exclusively hedge
commercial risks and not to undertake
any financial transactions of a speculative
nature.
Interest rate risks
generation and relatively low financial
gearing, the majority of our loans are
raised on floating terms and
predominantly as short-term
commitments, resulting in a low level of
interest expenses. In order to secure
relatively low interest rates for the Group
in the long term and as a consequence of
our attractive funding possibilities in the
financial market, the Group now partly
funds its debt through long-term
committed facilities with fixed rates and
through financial instruments, which
limits the interest rate risk.
amounted to DKK 19,748 million as of 31
December 2023 (DKK 22,495 million in
2022).
Credit risks
trade receivables and loans to customers
or business partners. The Group generally
has a diversified customer base, and in
2023, the accumulated revenue from our
ten largest customers accounted for
approx. 12% (10% in 2022) of total
consolidated revenue.
Furthermore, when granting loans, we
require that our counterparties provide
security in their business. Overall, we
therefore estimate that the risk relative to
our total credit exposure is well-balanced
at Group level.
The maximum credit risk relating to
receivables matches the carrying amounts
of such receivables. Overall, the Group
has limited deposits with financial
institutions for which reason the credit
risk of deposits is considered to be low.
Liquidity risks
The Group aims to have sufficient cash
resources to be able to take appropriate
steps in case of unforeseen fluctuations in
cash outflows. We have access to
considerable undrawn credit facilities, and
the liquidity risk is therefore considered to
be low. We are of the opinion that the
Group has strong cash flows and a solid
credit profile to secure the current inflow
of working capital and funds for potential
acquisitions. Neither in previous years nor
in the financial year 2023, has the Group
defaulted on any loan agreements.
4.1 Financial risk management and capital structure
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The WDI companies
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Section 4
Capital structure and
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72 3
In addition to the foreign exchange items,
the consolidated income statement is also
affected by foreign exchange hedging
instruments as described in Note 2.3, as
well as by foreign exchange effects of
balance sheet items affecting production
costs with a gain of DKK 83 million in 2023
(a loss of DKK 81 million in 2022).
Accounting policies
Net financial items mainly consist of
interest income and interest expenses,
credit card fees and bank fees, net
financial items also include interest on
lease liabilities, unwinding of discounts on
financial assets and liabilities, fair value
adjustments
share-based remuneration programmes,
fair value adjustments on other
investments as well as certain realised
and unrealised foreign exchange gains
and losses. Interest income and interest
expenses are accrued based on the
principal amount and the effective
interest rate. The effective interest rate is
the discount rate used for discounting
expected future payments attaching to
the financial asset or financial liability in
order for the present value to match the
carrying amount of such asset or liability.
4.2 Net financial items
(DKK million)
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Financial report
Section 4
Capital structure and
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73 3
The following non-financial items are
included in the balance sheet and
represent the difference between the
table and the balance sheet: Other
liabilities DKK 620 million (DKK 530 million
in 2022).
Accounting policies
Debt to credit institutions and other
interest-bearing debt is recognised at the
date of borrowing at the proceeds
received less transaction costs. For
subsequent periods, financial liabilities are
measured at amortised cost in order for
the difference between proceeds and the
nominal value to be recognised as a
financial expense over the term of the
loan.
On initial recognition, other financial
liabilities are measured at fair value and
subsequently at amortised cost using the
effective interest method, and the
difference between proceeds and the
nominal value is recognised in the income
statement as a financial expense over the
contractual maturity term.
On initial recognition, other investments
classified as current assets are recognised
at their fair values adjusted for any
directly related costs from the purchase of
the other investments. The other
investments are subsequently measured
at fair value based on listed prices in an
active market for the same type of
instrument. Unrealised value adjustments
are recognised in income statement as
part of net financial items. When other
investments are disposed or sold, the
accumulated value adjustments are
reclassified to the net financial items in
the income statement.
The component parts of compound
instruments (convertible promissory
notes) are classified separately as financial
liabilities and equity if fair value at initial
recognition can be allocated to the
conversion option. Fair value of the
conversion option is calculated as the
residual value between fair value of the
liability component, using prevailing
market interest rates for similar non-
convertible instruments, and fair value of
the entire instrument. The liability
component is subsequently measured at
amortised cost.
4.3 Categories of financial instruments
(DKK million)
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Financial report
Section 4
Capital structure and
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74 3
Trade payables and other liabilities have a
contractual maturity of less than one year,
with the exception of other liabilities of
DKK 1,122 million (DKK 1,057 million in
2022), which have a contractual maturity
of 1-5 years. The contractual cash flows
approximate their carrying amounts.
Interest-bearing borrowings broken down
by currency: 8% in US dollars (8% in 2022),
56% in Danish kroner (62% in 2022), 28%
in euros (24% in 2022), 2% in Australian
dollars (1% in 2022), 2% in Canadian
dollars (2% in 2022) and 4% in other
currencies (3% in 2022).
4.4 Net interest-bearing debt, liquidity and interest rate risks
Contractual cash flows
(DKK million)
Less than 1
year
1-5 years
More than
5 years
Total
Carrying
amount
Weighted
average
effective
interest
rate
*Interest-bearing receivables comprise customer loans, receivables from associates as well as other receivables.
Insights and highlights
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Corporate information
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Section 4
Capital structure and
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75 3
4.4 Net interest-bearing debt, liquidity and interest rate risks continued
Non-cash changes
(DKK million)
2022
Cash flows
from
financing
activities
COVID-19 -
rent
concessions
Acquisition
Foreign
exchange
movement
Other
additions
Disposals
Transferred
to liabilities
related to
assets held
for sale
2023
Non-cash changes
(DKK million)
2021
Cash flows
from
financing
activities
COVID-19 -
rent
concessions
Acquisition
Foreign
exchange
movement
Other
additions
Disposals
Transferred
to liabilities
related to
assets held
for sale
2022
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 4
Capital structure and
financial management
76 3
The fair value of interest rate swap
outstanding at the balance sheet date is
DKK 18 million (DKK 0 million in 2022), and
the contractual value of interest swap is
DKK 1,000 million (DKK 0 million in 2022).
The interest rate swap matures in 2026.
Reconciliation of liabilities arising
from financing activities
The table shows the changes in
consolidated liabilities arising from
financing activities, including both cash
and non-cash changes. Liabilities arising
from financing activities are those for
which cash flows were, or future cash
flows will be, classified in the consolidated
cash flow statement as cash flows from
financing activities.
Sensitivity analysis in respect of
interest rates
of the 2023 financial year, a rise of 1
percentage point in the general interest
rate level will cause an increase in
consolidated annual interest expenses
before tax of approximately DKK 80
million (DKK 79 million in 2022).
The Group has limited the maximum
interest rates on part of its non-current
debt through an interest rate swap.
4.4 Net interest-bearing debt, liquidity and interest rate risks continued
(DKK million)
2023
2022
Expiry
Interest rate
/ strike
Contractual
amount at
year end
Positive fair
value at
year-end
Negative fair
value at
year-end
Expiry
Interest rate
/ strike
Contractual
amount at
year end
Positive fair
value at
year-end
Negative fair
value at
year-end
Insights and highlights
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Corporate information
Financial report
Section 4
Capital structure and
financial management
77 3
Methods and judgements for
calculation of fair values
Other investments
Other investments are assessed on the
basis of their fair value.
Derivatives
Forward exchange contracts are assessed
using discounted cash flow valuation
techniques. Future cash flows are based
on forward exchange rates from
observable forward exchange rates at the
end of the reporting period and on
contractual forward exchange rates
discounted at a rate that reflects the credit
risk related to various counterparties.
Interest swaps are assessed using
discounted cash flow valuation
techniques. Future cash flows are based
on observable forward yield curves at the
end of the reporting period and on
contractual interest rates discounted at a
rate that reflects the credit risk related to
various counterparties.
The value of a cap is assessed using
discounted cash flow valuation
techniques. A cap consists of a series of
interest rate options (IRGs) with the same
strike rate. The individual interest rate
options each cover an interest period. The
key elements when pricing interest rate
options are strike rate, forward rate,
maturity and volatility. The value of an
interest rate option is made up of the
intrinsic value and the time value of such
option. The value of a cap is the combined
value of the individual IRGs.
Contingent considerations
Contingent considerations are measured
at their fair values based on the
contractual terms of the contingent
considerations and on non-observable
inputs (level 3), such as the financial
performance and purchasing patterns of
the acquired enterprises for a period of
typically 1-5 years after the date of
acquisition.
Fair value hierarchy for assets and
liabilities measured at fair value in the
balance sheet
Financial instruments measured at fair
value are broken down according to the
fair value hierarchy:
• Listed prices in an active market for the
same type of instrument (level 1).
• Listed prices in an active market for
similar assets or liabilities or other
valuation methods, with all significant
inputs being based on observable
market data (level 2).
• Valuation methods, with any significant
inputs not being based on observable
market data (level 3).
Accounting policies
On initial recognition, other investments
are recognised at fair value and
subsequently measured at fair value in
the income statement. Unrealised value
adjustments are recognised in the income
statement. On realisation, value
adjustments are recognised in net
financial items in income statement.
Contingent considerations arising from
the acquisition of enterprises and
activities are recognised at fair value at
the time of acquisition. The obligations are
re-evaluated on a recurring basis at fair
value.
4.5 Fair value hierarchy
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Financial report
Section 4
Capital structure and
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78 3
There are no transfers between levels in
the 2023 and 2022 financial years.
Certain financial assets excluding other
investments, other financial liabilities and
contingent considerations are measured
at fair value in the balance sheet based on
valuation methods, with any significant
inputs not being based on observable
market data. Most of the contingent
considerations recognised relate to
deferred payments, which are not
dependent on any performance
obligations and will usually be paid out
within 1-5 years.
The majority of the contingent
considerations is recognised as the
maximum consideration to be paid, which
Management has assessed to be the most
likely outcome.
4.5 Fair value hierarchy continued
(DKK million)
2023
2022
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial
assets
Other financial
liabilities
Contingent
considerations
(DKK million)
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 5
Tax
79 3
Section 5
Tax
Insights and highlights
The WDI companies
Corporate information
Financial report
81 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 5
Tax
80 3
The Group is not expected to be materially
impacted by OECD/EU Pillar Two Model
rules and local implementation hereof.
Most countries where the Group has
operations impose taxation in excess of
15%, meaning that most countries are
covered by the transitional Safe Harbour
rules. Those few countries not covered by
the transitional Safe Harbour rules are still
expected to show a GloBE ETR in excess of
15%. As such, OECD/EU Pillar Two Model
Rules and local implementation hereof are
expected to result in neither materially
increased tax payments nor changes to
The Group has applied the temporary
exception, introduced in May 2023, from
the accounting requirements for deferred
taxes in IAS 12, which means that the
Group neither recognises nor discloses
information about deferred tax assets and
liabilities related to Pillar Two income
taxes.
Accounting policies
tax and any changes in deferred tax.
Current tax includes taxes payable
determined on the basis of the estimated
taxable income for the year and any prior-
year tax adjustments. Tax on changes in
equity and other comprehensive income
is recognised directly in equity and in
other comprehensive income,
respectively.
Foreign currency translation adjustments
of deferred tax are recognised as part of
Permanent differences primarily include
Danish interest limitation, R&D incentives,
profit in associates and non-deductible
share-based payments.
Current tax liabilities or tax receivables
are recognised in the balance sheet and
taxable income adjusted for any tax paid
on account. The tax rates prevailing at the
balance sheet date are used for
calculation o
(DKK million)
5.1 Tax on profit
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 5
Tax
81 3
The tax value of deferred tax assets not
recognised is DKK 147 million (DKK 188
million in 2022) and relates mainly to tax
losses and tax credits for which there is
considerable uncertainty about their
future utilisation. Tax losses of DKK 38
million will expire within 5-10 years,
whereas other tax losses carried forward
have no expiry date.
Accounting policies
Deferred tax is recognised using the
balance sheet liability method on any
temporary differences between the tax
base of assets and liabilities and their
carrying amounts, except for deferred tax
on temporary differences arisen either on
initial recognition of goodwill or on initial
recognition of a transaction that is not an
acquisition, with the temporary difference
ascertained on initial recognition affecting
neither net profits nor taxable income.
Deferred tax is determined on the basis of
the tax rules and rates prevailing at the
balance sheet date in a particular country.
The effect of any changes in tax rates on
deferred tax is included in tax on profit for
the year, unless such deferred tax is
attributable to items previously
recognised directly in equity or in other
comprehensive income. In the latter case,
such changes will also be recognised
directly in equity or in other
comprehensive income. The tax base of a
loss, if any, which may be set off against
future taxable income, is carried forward
and set off against deferred tax in the
same legal tax entity and jurisdiction.
5.2 Deferred tax
(DKK million)
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The WDI companies
Corporate information
Financial report
Section 5
Tax
82 3
Accounting estimates and judgements
Deferred tax assets (significant estimate)
Deferred tax assets, including the tax
value of any tax losses allowed for
carryforward, are recognised in the
balance sheet at the estimated realisable
value of such assets, either by a set-off
against a deferred tax liability or by a net
asset to be set off against future positive
taxable income. At the balance sheet date,
an assessment is made as to whether it is
probable that sufficient taxable income
will be available in the future against
which the deferred tax asset can be
utilised.
Deferred tax on temporary differences
between the carrying amounts and the tax
values of investments in subsidiaries and
associates is recognised, unless the parent
is able to control the time of realisation of
such deferred tax, and it is probable that
such deferred tax will not be realised as
current tax in the foreseeable future.
5.2 Deferred tax continued
(DKK million)
Temporary
differences
at 1.1.
Foreign
currency
translation
adjustments
Acquisitions
Recognised
in profit for
the year
Recognised
in other
comprehen-
sive income
Transferred
to assets
held for sale
Temporary
differences
at 31.12.
Temporary
differences
at 1.1.
Foreign
currency
translation
adjustments
Acquisitions
Recognised
in profit for
the year
Recognised
in other
comprehen-
sive income
Transferred
to assets
held for sale
Temporary
differences
at 31.12.
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 6
Acquisitions and
divestments
83 3
Section 6
Acquisitions and
divestments
Insights and highlights
The WDI companies
Corporate information
Financial report
85 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 6
Acquisitions and
divestments
84 3
As part of the capital allocation policy, a
portion of the cash flow from operating
activities is allocated to value-adding
acquisitions. In 2023, a total of 31
acquisitions were completed within the
Demant Group at an estimated total
consideration of DKK 1,074 million and a
total of four acquisitions were completed
within the Embla Medical Group at an
estimated consideration of DKK 17 million.
The individual acquisitions are not
considered to be material and therefore
not disclosed separately, but grouped
together with other acquisitions.
Acquisitions in the Demant Group
In 2023, the Demant Group acquired a
number of businesses or obtained
significant stakes in hearing healthcare
businesses, the most significant ones
being Mr. Optik and Flemming & Klingbeil
both in Germany, the hearing aid-related
activities of Goed Hulpmiddelen in
Belgium and Virtualis in France.
On 5 January 2023, the Demant Group
acquired 55% of the shares in Virtualis, a
developer and manufacturer of virtual
reality rehabilitation equipment based in
France. As part of the agreement, a
forward contract was entered into for the
remaining 45% of the shares, meaning
that Demant agreed to buy and the seller
to sell in three tranches based on an
agreed revenue multiple. The purchase
price for the remaining shares is
estimated based on current
performance and on expectations of the
future. The purchase price is not capped.
On 1 March 2023, the Demant Group
acquired the remaining 51% of the shares
in Mr. Optik and now holds 100% of the
shares. Mr. Optik operates hearing clinics
across Eastern Germany. The step-up
resulted in a fair value adjustment of
existing shares of DKK 26
million.
6.1 Acquisition of enterprises and activities
(DKK million)
Embla Medical*
Demant*
Total
Embla Medical*
Sheng Wang*
Demant, other*
Total
*Acquisitions made in the Embla Medical Group and Demant Group, respectively.
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Financial report
Section 6
Acquisitions and
divestments
85 3
On 31 August 2023, the Demant Group
acquired 100% of the shares in Flemming
& Klingbeil, which operates hearing clinics
across Berlin, Germany.
On 31 August 2023, the Demant Group
acquired all the hearing aid-related
activities of Goed Hulpmiddelen. The
transaction was structured as an asset
purchase. The activities in Goed
Hulpmiddelen consist of hearing clinics in
the northern part of Belgium. The
activities were integrated into our existing
retail business in Belgium.
In addition, the Demant Group made a
number of other minor acquisitions in
North America and Europe in 2023.
In 2022, the Demant Group acquired
100% of the shares in Sheng Wang, first
20% as a minority investment on 4 March
2022 and subsequently the remaining
80% of the shares on 1 July 2022.
Acquisitions in Embla Medical
In 2023, Embla Medical made a number of
minor acquisitions. In 2022, Embla
Medical acquired 100% of the shares in
Naked Prosthetics, a leading provider of
mechanical finger prosthesis for finger
and partial hand amputees.
Accounting treatment
In respect of the acquisitions, the Group
paid a total acquisition cost of DKK 1,091
million, which exceeded the fair values of
the acquired assets, liabilities and
contingent liabilities. Such positive
balances in value can be attributed to
expected synergies between the activities
of the acquired entities and our existing
activities, to the future growth
opportunities and to the value of staff
competencies in the acquired businesses.
These synergies are not recognised
separately from goodwill, as they are not
separately identifiable. Total goodwill
recognised in respect of the acquisitions
made in 2023 amounted to DKK 1,128
million.
Of the total acquisitions made in 2023, the
fair value of the estimated contingent
considerations in the form of earn-outs or
deferred payments accounted for DKK
157 million (DKK 660 million in 2022).
Earn-outs depend on the results of the
acquired entities for a period of 1-5 years.
The maximum of earn-outs and other
contingent considerations related to the
acquisitions are estimated to be DKK 159
million (DKK 753 million in 2022),
excluding Virtualis where the earn-out
that is not capped.
The fair values of acquisitions are not
considered final until 12 months after the
acquisition date. Adjustments to
acquisitions completed more than 12
months prior to the time of the
adjustments, including changes in
estimated contingent considerations, are
recognised in the income statement.
In 2023, adjustments were made to the
preliminary recognition of acquisitions
recognised in 2022. These adjustments
relate to payments made, contingent
considerations provided as well as net
assets and goodwill acquired. The impact
of these adjustments on goodwill was DKK
5 million (DKK 11 million in 2022) and DKK
2 million (DKK 2 million in 2022) on
contingent consideration.
In 2023, adjustments were also made to
contingent considerations related to
acquisitions before 2022. These
adjustments amount to DKK 5 million
(DKK 32 million in 2022) and are
recognised as part of distribution costs for
acquisitions.
Step-up acquisitions
At the time of acquisition of non-
controlling interests, the shares of the
acquisitions are measured at their
proportionate share of the total fair value
of the acquired entities, including
goodwill. On obtaining a controlling
interest through step acquisitions,
previously held non-controlling interests
are, at the time of obtaining control,
remeasured at fair value with fair value
adjustments recognised in the income
statement.
The total impact on the income statement
of fair value adjustments of non-
controlling interests in step acquisitions
was DKK 27 million (DKK 14 million in
2022).
The above statements of fair values of
acquisitions are not considered final until
12 months after the acquisition date.
Transaction costs
Transaction costs in connection with
acquisitions made in 2023 amounted to
DKK 14 million (DKK 15 million in 2022),
which were recognised in distribution
costs.
Acquired assets and proforma figures
The acquired assets include contractual
receivables amounting to DKK 59 million
(DKK 69 million in 2022) of which DKK 1
million (DKK 2 million in 2022) was thought
to be uncollectible at the date of the
acquisition. Of total goodwill in the
amount of DKK 1,128 million (DKK 2,771
million in 2022), DKK 209 million (DKK 202
million in 2022) can be amortised for tax
purposes.
Revenue and profit after tax generated by
the acquired enterprises since our
acquisition in 2023 amount to DKK 319
million (DKK 405 million in 2022) and DKK
14 million (DKK -18 million in 2022),
respectively. Had such revenue and profit
been consolidated on 1 January 2023, we
6.1 Acquisition of enterprises and activities continued
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Acquisitions and
divestments
86 3
estimate that consolidated pro forma
revenue and profit after tax would have
been DKK 28,586 million (DKK 25,558
million in 2022) and DKK 1,242 million
(DKK 3,620 million in 2022), respectively.
Without taking synergies from our core
business into account, we believe that
these pro forma figures reflect the level of
consolidated earnings after our
acquisition of the enterprises.
Acquisitions after balance sheet date
Embla Medical Group has acquired Fior &
Gentz, for which we refer to note 8.4.
From the balance sheet date and until the
date of financial reporting in 2024,
Demant Group have acquired a number of
retail businesses. Demant Group are in
the process of assessing their fair value.
The acquisition cost is expected to relate
primarily to goodwill.
Accounting policies
Newly acquired or newly established
enterprises are recognised in the
consolidated financial statements from
the time of acquisition or formation. The
time of acquisition is the date when
control of the enterprise is transferred to
the Group. For Group accounting policies
on control, please refer to the
consolidated financial statements in Note
9.1. In respect of newly acquired
enterprises, comparative figures and key
figures will not be restated. On
acquiring new enterprises of which the
Group obtains control, the purchase
method is applied according to which their
identified assets, liabilities and contingent
liabilities are measured at their fair values
on the acquisition date. Any non-current
assets acquired for the purpose of resale
are, however, measured at their fair
values less expected cost of disposal.
Restructuring costs are solely recognised
in the pre-acquisition balance sheet if they
are a liability for the acquired enterprise.
Any tax effect of revaluations will be taken
into account.
The acquisition cost of an enterprise
consists of the fair value of the
consideration paid for the enterprise with
the addition of the fair values of
previously held interests in the acquiree. If
the final consideration is conditional upon
one or more future events, the
consideration will be recognised at the fair
value on acquisition. Any subsequent
adjustment of contingent consideration is
recognised directly in the income
statement, unless the adjustment is the
result of new information about
conditions prevailing on the acquisition
date, and this information becomes
available up to 12 months after the
acquisition date.
Transaction costs are recognised directly
in the income statement when incurred. If
the purchase price exceeds the fair values
of the assets, liabilities and contingent
liabilities identified on acquisition, any
remaining positive differences (goodwill)
are recognised in the balance sheet under
intangible assets and tested for
impairment at least annually. If the
carrying amount of an asset exceeds its
recoverable amount, it is written down to
such lower recoverable amount.
If, on the acquisition date, there are any
uncertainties with respect to identifying
or measuring acquired assets, liabilities
or contingent liabilities or uncertainty with
respect to determining their cost, initial
recognition is made on the basis of
provisionally calculated values. Such
provisionally calculated values may be
adjusted, or additional assets or liabilities
may be recognised up to 12 months after
the acquisition date, if new information
becomes available about conditions
prevailing on the acquisition date, which
would have affected the calculation of
values on that day, had such information
been known.
Accounting estimates and judgements
Identification of assets and liabilities
(judgement)
On recognition of assets and liabilities
from acquisitions, Management
judgements may be required for the
identification of the following:
Intangible assets, resulting from
technology, customer relationships,
client lists or brand names.
Contingent consideration arrangements.
Contingent consideration (estimate)
Acquisitions may include provisions to the
effect that additional payments of
contingent considerations be paid to the
previous owners when certain events
occur or certain results are obtained.
Management assesses on a regular basis
the judgements made in respect of the
particular acquisitions, taking sales run
rates of the acquired entity into account.
6.1 Acquisition of enterprises and activities continued
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Financial report
Section 6
Acquisitions and
divestments
87 3
In 2022, the Group divested its share in
Boston Holding A/S, a joint operation
company with a proportional share of the
wind farm (50%) in Borkum Riffgrund 1.
6.2 Divestment of enterprises and activities
(DKK million)
Total
Boston Holding
Total
Figures are shown at fair value on the divestment date.
*Including repayment loan from William Demant Invest of DKK 789 million.
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Acquisitions and
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88 3
In 2022, Demant announced the decision
to discontinue its Hearing Implants
business area. In 2023, the transaction
with Cochlear was amended to only
include the cochlear implants (CI)
business. The bone anchored hearing
systems (BAHS) business is no longer part
of the transaction and will thus remain
with Demant for now, pending a review of
strategic options. The amended
transaction has no impact on the decision
to exit Hearing Implants and both the
BAHS and CI business are considered
discontinued operations. Due to the
amended scope, no consideration will be
paid as part of the transaction.
In 2023, discontinued operations thus
comprise the Hearing Implants business
area, which realised a profit after tax of
DKK -757 million (2022: DKK -192 million).
The negative result can be attributed to
non-recurring, non-cash write-downs of
assets related to the CI business despite
slightly higher revenue compared to 2022.
The BAHS business delivered slightly
positive growth in the year, following
growth related to the launch of the Ponto
5 sound processor in 2022. Revenue for
Hearing Implants was low following the
voluntary field corrective action in 2021.
Accounting policies
Discontinued operations represent a
separate line of business disposed of or in
preparation for sale. The results of
discontinued operations are presented
separately in the income statement, and
comparative figures are restated. Cash
flows from discontinued operations are
presented separately in the cash flow
statement.
6.3 Discontinued operations and assets held for sale
(DKK million)
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Acquisitions and
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89 3
Assets classified as held for sale at 31
December 2023 comprise assets in the
Hearing Implants business areas. Cochlear
will take over the obligations to service
existing CI customers. The transaction is
subject to regulatory approval and other
customary closing conditions, and closing
is expected in the first six months of 2024.
The amended transaction has no impact
on the decision to exit Hearing Implants,
and the BAHS business will continue to be
disclosed as held for sale.
Accounting policies
Assets and liabilities relating to the
discontinued operations are classified as
held for sale. Assets held for sale, except
financial assets etc., and liabilities related
to assets held for sale are measured at
the lower of their carrying amount and
their fair value less costs to sell. Non-
current assets held for sale are not
depreciated.
6.3 Discontinued operations and assets held for sale continued
(DKK million)
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Corporate information
Financial report
Section 7
Provisions, other
liabilities etc.
90 3
Section 7
Provisions, other
liabilities etc.
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Corporate information
Financial report
92 Annual Report 2023
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Financial report
Section 7
Provisions, other
liabilities etc.
91 3
Miscellaneous provisions relate to
provisions for disputes etc. and are
essentially expected to be realised within
the next five years.
7.1 Provisions
(DKK million)
(DKK million)
Restruc-
turing costs
Staff-
related
Miscellan-
eous
Total
Restruc-
turing costs
Staff-
related
Miscellan-
eous
Total
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Financial report
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Provisions, other
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92 3
Generally, the Group does not offer
defined benefit plans, but it has such
plans in Switzerland, France and Germany
where they are required by law.
Defined benefit plan costs recognised in
the income statement amount to DKK 12
million (DKK 16 million in 2022), and the
accumulated actuarial gain recognised in
the statement of comprehensive income
amount to DKK 10 million (loss of DKK 28
million in 2022).
In 2024, the Group expects to pay
approximately DKK 24 million (DKK 15
million in 2023) into defined benefit plans.
Defined benefit obligations in the amount
of DKK 132 million (DKK 130 million in
2022) will mature within 1-5 years and
obligations in the amount of DKK 324
million (DKK 299 million in 2022) after five
years.
If the discount rate is 0,5% higher (lower),
the defined benefit obligation would
decrease by 7% (increase by 8%). If the
expected salary growth rate is 0,5% higher
(lower) the defined benefit obligation
would increase by 1% (decrease by 1%).
Plan assets are recognised as follows:
Equity 28%
Bonds 31%
Property 27%
Other 14%
Accounting policies
Provisions are recognised if, as a result of
an earlier event, the Group has a legal or
constructive obligation, and if the
settlement of such an obligation is
expected to draw on corporate financial
resources, but there is uncertainty about
the timing or amount of the obligation.
Provisions are measured on a discounted
estimate of the amount at which a
particular liability may be settled. The
discount effect of any changes in the
present value of provisions is recognised
as a financial expense.
The Group has defined benefit plans and
similar agreements with some of its
employees.
When it comes to defined contribution
plans, the Group pays regular, fixed
contributions to independent pension
companies. Contributions are recognised
in the income statement for the period in
which employees have performed work
entitling them to such pension
contributions. Contributions due are
recognised in the balance sheet as a
liability.
When it comes to defined benefit plans,
the Group is obliged to pay a certain
contribution when an employee covered
by such a plan retires, for instance a fixed
7.1 Provision continued
(DKK million)
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Provisions, other
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93 3
final salary. An actuarial calculation is
made periodically of the accrued present
value of future benefits to which
employees through their past
employment with the Group are entitled
and which are payable under the defined
benefit plan. This defined benefit
obligation is calculated annually using the
projected unit credit method on the basis
of judgements in respect of the future
development in for instance wage levels,
interest rates, mortality and inflation
rates.
The defined benefit obligation less the fair
value of any assets relating to the defined
benefit plan is recognised at the balance
sheet under provisions.
Defined benefit costs are categorised as
follows:
• Service costs, including current service
costs, past service costs as well as gains
and losses on curtailments and
settlements
• Net interest expense or income
• Remeasurements
Remeasurements, comprising actuarial
gains and losses, any effects of changes to
the asset ceiling and return on defined
benefit assets excluding interest, are
reflected immediately in the balance sheet
with a charge or credit recognised in other
comprehensive income in the period in
which it occurs.
Remeasurements recognised in other
comprehensive income are reflected
immediately in retained earnings and are
not reclassified to the income statement.
Service costs and net interest expense or
income are included in the income
statement as employee costs.
Other non-current employee benefits are
recognised using actuarial calculation.
Actuarial gains or losses on such benefits
are recognised directly in the income
statement.
Accounting estimates and judgements
Assessment of provisions (estimate)
Management assesses, on an ongoing
basis, provisions for amoung others
restructuring costs and the likely outcome
of pending and probable lawsuits etc.
(other provisions). When assessing the
likely outcome of lawsuits, Management
bases its assessment on internal and
external legal advice and established
precedent. Provisions for restructuring
costs are based on the estimated costs of
implementing restructuring initiatives and
thus on a number of judgements about
future costs and events. For all provisions,
the outcome and final expense depend on
future events, which are by nature
uncertain.
7.1 Provision continued
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Financial report
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Provisions, other
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94 3
Product-related liabilities include standard
warranties and returned products etc.
Staff-related liabilities include holiday pay
and payroll costs due. The carrying
amount of other liabilities approximate
the fair value of such liabilities.
Accounting policies
Other non-financial liabilities are
recognised if, as a result of an earlier
event, the Group has a legal or
constructive obligation, and if the
settlement of such an obligation is
expected to draw on corporate financial
resources. Other non-financial liabilities
are measured on a discounted basis, and
the discount effect of any changes in the
present value of the liabilities is
recognised as a financial expense.
On the sale of products with a right of
return, a refund liability and a right to the
returned products are recognised as a
refund liability and a current asset
(included in prepaid expenses),
respectively. The refund liability is
deducted from revenue and the right to
the returned products is offset in cost of
sales. Warranty commitments include the
obligation to remedy faulty or defective
products during the warranty period.
Other financial liabilities mainly consist of
liabilities to acquire additional shares in
subsidiaries. The liabilities are measured
at fair value through income statement.
The fair value is estimated based on
valuation principles agreed between the
parties.
Accounting estimates and judgements
Warranty and return liabilities (estimates)
Liabilities in respect of service packages
and warranties are calculated on the basis
of information on products sold, related
service and warranty periods and past
experience of costs incurred by the Group
to fulfil its service and warranty liabilities.
Liabilities in respect of returns have been
calculated based on information on
products sold, related rights concerning
returns and past experience of products
being returned in the various markets.
Consolidated product-related liabilities are
the sum of a large number of small items,
the sum changing constantly due to a
large number of transactions.
7.2 Other liabilities
(DKK million)
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Provisions, other
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95 3
Free products, service and some
warranty-related services mentioned in
the table are provided free of charge to
the customer. Certain other warranty-
related services are paid by the customer
in connection with delivery of the related
goods, but delivery of the service takes
place 1-6 years after delivery of the goods.
Please refer to Note 1.1 for a description
of the nature of the deferred income.
Accounting policies
Deferred income includes income
received or future performance
obligations relating to subsequent
financial years and is recognised as
revenue when the Group performs the
obligations by transferring the goods or
services.
The William Demant Invest Group is
involved in minor litigations, claims,
disputes etc. Management is of the
opinion that such disputes do not and will
financial position. The Group seeks to
make adequate provisions for legal
proceedings.
As part of the business activities, the
Group has entered into normal
agreements with customers and suppliers
etc. as well as agreements for the
purchase of shareholdings.
7.3 Deferred income
7.4 Contingent
liabilities
(DKK million)
Less than
1 year
1-2 years
2-4 years
More than
4 years
Total
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Corporate information
Financial report
Section 8
Other disclosure
requirements
96 3
Section 8
Other disclosure
requirements
Insights and highlights
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Corporate information
Financial report
98 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 8
Other disclosure
requirements
97 3
William Demant Foundation,
Kongebakken 9, 2765 Smørum, Denmark,
is the only related party with a controlling
interest. Related parties with significant
Board, Board of Directors and their
related parties.
Furthermore, related parties are
companies in which the above persons
have significant interests.
Subsidiaries, associates, as well as the
companies appear in section 11. For
financial information on associates please
refer to Note 3.4.
In 2023, William Demant Foundation paid
administration fees to William Demant
Invest Group of DKK 2 million (DKK 3
million in 2022). Further, the William
Demant Foundation loan (convertible
promissory notes) to William Demant
Invest A/S was converted to equity in
December 2023, on which interest in 2023
totals DKK 86 million (DKK 82 million in
2022). At year-end 2023, William Demant
Foundation has other current receivables
of DKK 0 million (DKK 23 million in 2022)
in William Demant Invest A/S arising from
accrued interest.
In 2023, William Demant Foundation
donated DKK 27 million (DKK 0
million in 2022) to Eriksholm
Research Centre and DKK 4 million
(DKK 0 million in 2022) to an
industrial PhD project in Oticon A/S.
Further, William Demant Foundation
acquired diagnostic and hearing aid-
related equipment worth DKK 2
million and DKK 6 million,
respectively (DKK 3 million and DKK
1 million in 2022), from the Group.
In 2023, the members of the Executive
Board and the Board of Directors
received remuneration from Group
companies in the amount of DKK 3
million (DKK 3 million in 2022).
There have been no transactions with
the Executive Board and the Board of
Directors apart from normal
remuneration. Please refer to Note
1.2.
Some of the Group's subsidiaries are not
subject to auditing by
PricewaterhouseCoopers.
In 2023, the fee for non-audit services
delivered by PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab,
Denmark, amounted to DKK 0 million
(DKK 2 million in 2022).
8.1 Related parties
8.2 Fees to parent's auditors appointed
at the annual general meeting
(DKK million)
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98 3
In 2023, the William Demant Invest Group
received government grants in the
amount of DKK 20 million (DKK 25 million
in 2022), of which DKK 5 million are
COVID-19-related publicly funded
compensation schemes. Non-COVID-19
grants are offset against R&D costs.
Accounting policies
Government grants are recognised when
there is reasonable certainty that the
conditions for such grants are satisfied
and that they will be awarded. Grants
received as compensation for costs
incurred are recognised proportionately in
the income statement over the periods in
which the related costs are recognised in
the income statement and are offset
against costs incurred. Government grants
relating to the acquisition of non-current
assets are deducted from the cost of such
asset.
8.3 Government grants
(DKK million)
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99 3
On 5 February 2024, the Demant Group
announced the decision to undertake a
review of strategic options for its
Communications business. The purpose
of the review is to explore whether a
different owner may be better positioned
to accelerate growth and allow the
business to realise its full potential. The
review is expected to be completed by the
end of the first six months of 2024. As this
review of strategic options has been
initiated after 31 December 2023, the
criteria for Communications to be
classified as held for sale and/or
discontinued operations are not met on
the balance sheet date.
After the balance sheet date for the 2023
financial statements, but before the
submission of this Annual Report,
Communications meets the criteria for
being classified as held for sale and
discontinued operations, and will be
presented as such in 2024. The results,
outcome and financial impact from the
strategic review cannot be estimated at
this time. All assets and liabilities
presented as part of the Communications
segment will be included in the review of
strategic options for the Communications
business.
On 16 January 2024 Embla Medical
acquired all shares of privately owned Fior
& Gentz, a leading maker of lower limb
neuro orthotic components. Fior & Gentz
was founded in Lüneburg, Germany in
1997 and employs around 80 people.
In 2023, Fior & Gentz reached total sales
of approx. DKK 159 million, up 16% from
the year before, and preliminary EBITDA
margin is 30%.
The Purchase price amounted to DKK 754
million plus an earn-out of maximum DKK
152 million, depending on the actual sales
in the years 2024-2026. Embla Medical
paid DKK 450 million in cash, financed
partly through additional credit facilities,
and issued new shares worth DKK 187
million to the sellers of Fior & Gentz. The
remaining DKK 118 million will be paid in
cash two years after closing.
The transaction is estimated to be
growth and EBITDA margin and is
expected to have minimal impact on EPS
in 2024 and to be EPS accretive from 2025.
As a consequence of submission and
approval of the Annual Report for 2023 is
close to the acquisition date, the
preparation of purchase price allocation is
in progress, but not finalised. Therefore,
assets acquired and liabilities consumed
at the date of acquisition, consideration
and profit and loss effects have not been
disclosed within these Consolidated
Financial Statements.
No events have occurred after the balance
sheet date that might affect the financial
statements.
8.4 Events after the balance sheet date
(DKK million)
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Basis for preparation
100 3
Section 9
Basis for preparation
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Financial report
101 3
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Financial report
Section 9
Basis for preparation
101 3
are described below. In addition to this,
specific accounting policies are described
in each of the individual notes to the
consolidated financial statements as
outlined here:
1.1 Revenue
1.2 Employees
1.5 Inventories
1.6 Trade receivables
1.7 Customer loans
2.3 Hedging and forward exchange
contracts
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Leases
3.4 Other non-current assets
3.5 Impairment testing
4.2 Net financial items
4.3 Categories of financial instruments
4.5 Fair value hierarchy
5.1 Tax on profit
5.2 Deferred tax
6.1 Acquisition of enterprises and
activities
6.3 Discontinued operations and assets
held for sale
7.1 Provisions
7.2 Other liabilities
7.3 Deferred income
8.3 Government grants
General
The consolidated financial statements are
presented in accordance with IFRS
Accounting Standards as adopted by the
EU and Danish disclosure requirements
for annual reports published by reporting
class C (large) companies, cf. the Danish
executive order on IFRS issued in
compliance with the Danish Financial
Statements Act. The registered office of
William Demant Invest A/S is in Denmark.
The consolidated financial statements are
presented in Danish kroner (DKK), which is
the functional currency for the Parent. The
consolidated financial statements are
presented based on historical cost, except
for obligations for contingent
consideration in connection with business
combination, share-based remuneration,
derivatives and financial asset classified as
assets available for sale, which are
measured at fair value.
The financial statements for the Parent as
presented separately from the
consolidated financial statements and are
shown on the last pages of this Annual
Report 2023.
Effect of new accounting standards
The Group has adopted the new,
amended and revised accounting
standards and interpretations as
published by the IASB and adopted by the
EU effective for the accounting period
beginning 1 January 2023. The new,
updated and amended standards and
interpretations did not result in any
changes to the accounting policies for the
Group nor had it any significant impact on
the consolidated financial statements for
2023.
IASB has issued new accounting standards
and amendments effective for accounting
periods beginning after 1 January 2024,
which have been adopted by the EU. The
changes to these standards are not
expected to have any significant impact on
the Group.
The Group has applied the exception to
recognis
Pillar Two Model Rules and local
implementation hereof.
Except for the implementation of the new
and amended standards, the accounting
policies remain unchanged compared to
last year.
Consolidated financial statements
The consolidated financial statements
comprise William Demant Invest A/S (the
Parent) and the enterprises in which the
Parent can or does exercise control by
either directly or indirectly holding more
than 50% of the voting rights, or in which
the Parent exercises control in some other
manner. Enterprises in which the Group
holds 20-50% of the voting rights and/or in
some other manner can or does exercise
significant influence are considered
associates and are incorporated
proportionately into the consolidated
financial statements using the equity
method.
Consolidation principles
The consolidated financial statements are
prepared based on the financial
statements of the Parent and its
subsidiaries by aggregating uniform items.
Enterprises that, by agreement, are
managed jointly with one or more other
enterprises are recognised using the
equity method.
The consolidated financial statements are
accounting policies. Intra-group income,
expenses, shareholdings, balances and
dividends as well as unrealised intra-
group profits on inventories are
eliminated.
9.1 Group accounting policies
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Basis for preparation
102 3
The accounting items of subsidiaries are
recognised 100% in the consolidated
financial statements.
On initial recognition, non-controlling
interests are measured either at fair value
or at their proportionate share of the fair
value of the identifiable assets, liabilities
and contingent liabilities of the acquired
subsidiary. The method is chosen for each
individual transaction. Non-controlling
interests are subsequently adjusted
according to their proportionate share of
changes in equity of the subsidiary.
Comprehensive income is allocated to
non-controlling interests whether or not,
as a result hereof, the value of such
interests is negative. The purchase or sale
of non-controlling interests in a
subsidiary, which does not result in
obtaining or discontinuing control of such
subsidiary, is treated as an equity
transaction in the consolidated financial
statements, and any difference between
the consideration and the carrying
of the equity.
Foreign currency translation
Danish kroner.
On initial recognition, transactions in
foreign currencies are translated at the
exchange rates prevailing at the date of
the transaction. The functional currencies
of the enterprises are determined by the
economic environment in which the enter-
prises operate, normally the local
currency.
Receivables, payables and other monetary
items in foreign currencies are translated
into Danish kroner at the exchange rates
prevailing at the balance sheet date.
Realised and unrealised foreign currency
translation adjustments are recognised in
the income statement under gross profit
or net financial items, depending on the
purpose of the underlying transaction.
Property, plant and equipment, intangible
assets, inventories and other non-
monetary assets purchased in foreign
currencies and measured on the basis of
historical cost are translated at the ex-
change rates prevailing at the transaction
date. Non-monetary items, which are re-
valued at their fair values, are translated
using the exchange rates at the
revaluation date.
On recognition in the consolidated
financial statements of enterprises
presenting their financial statements in a
functional currency other than Danish
kroner, the income statement is
translated using average exchange rates
for the months of the year in question,
unless they deviate materially from actual
exchange rates at the transaction dates. In
case of the latter, actual exchange rates
are applied.
Balance sheet items are translated at the
exchange rates prevailing at the balance
sheet date. Goodwill is considered as be-
longing to the acquired enterprise in
question and is translated at the exchange
rate prevailing at the balance sheet date.
All foreign currency translation
adjustments are recognised in the income
statement, except for the following, which
are recognised in other comprehensive
income:
• The translation of income statements
of foreign subsidiaries using monthly
average exchange rates for the
respective months of the year, whereas
balance sheet items of such foreign
subsidiaries are translated using
exchange rates prevailing at the
balance sheet date.
• The translation of non-current, intra-
group receivables that are considered
to be an addition to or deduction from
net investments in foreign subsidiaries.
• The translation of investments in
associates.
Income statement
Income and costs are recognised on an
accruals basis. The income statement is
broken down by function, and all costs,
including depreciation, amortisation and
impairment losses, are therefore charged
to production, distribution, administration
and R&D.
Production costs
Production costs are costs incurred to
generate revenue. Distribution companies
recognise cost of goods sold as part of
production costs. Production companies
recognise cost of raw materials,
consumables, production staff as well as
maintenance of and depreciation,
amortisation and impairment losses on
property, plant and equipment and
intangible assets used in the production
process as part of production costs.
R&D costs
Research costs are always recognised in
the income statement as such costs incur.
Development costs include all costs not
satisfying capitalisation criteria, but
incurred in connection with development,
prototype construction, development of
new business concepts and amortisation
of capitalised development costs.
Distribution costs
Distribution costs include costs relating to
training, sales, marketing, promotion
materials, distribution, bad debts as well
9.1 Group accounting policies continued
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Section 9
Basis for preparation
103 3
as depreciation, amortisation and
impairment losses on assets used for
distribution purposes.
Administrative expenses
Administrative expenses include
administrative employee costs, office
expenses as well as depreciation and
amortisation of and impairment losses on
assets used for administrative purposes.
Other operating income
Other operating income includes income
from all activities not related to the core
business activities of the Group.
Prepaid expenses
Prepaid expenses recognised as part of
assets include costs relating to the
subsequent financial years. Prepaid
expenses are measured at cost.
Equity
Foreign currency translation reserve
includes foreign currency translation
adjustments on the translation of financial
statements of foreign subsidiaries and
associates from their respective functional
currencies into Danish kroner. Foreign
currency translation adjustments are
recognised in the income statement on
realisation of the net investment. Hedging
reserves include fair value adjustments of
derivatives and loans satisfying the criteria
for hedging of future transactions. The
amounts are recognised in the income
statement or the balance sheet at the
same time as hedged transactions are
recognised.
Treasury shares and dividend
On the buy-back of shares or sale of
treasury shares, the purchase price or
selling price, respectively, is recognised
directly in equity as other reserves
(retained earnings). A capital reduction
through the cancellation of treasury
shares will reduce the share capital by an
amount corresponding to the nominal
value of such shares. Proposed dividends
are recognised as a liability at the time of
adoption at the annual general meeting.
Cash flow statement
The cash flow statement is prepared
according to the indirect method and
reflects the consolidated net cash flow
broken down into operating, investing,
and financing activities.
Cash flow from operating activities
operations adjusted for non-cash
operating items, changes in working
capital, financial income received, financial
expenses paid and income tax paid. Cash
flow from operating activities also
includes short-term lease payments, lease
payments of low-value assets and variable
lease payments.
Cash flow from investing activities
includes payments in respect of the
acquisition or divestment of enterprises
and financial assets as well as the
purchase, development, improvement or
sale of intangible assets and property,
plant and equipment. In addition to this,
cash flow from investing activities also
includes movement in receivables from
associates as well as customer loans.
Cash flow from financing activities
includes payments to and from
shareholders and the raising and
repayment of non-current and current
debt and lease liabilities. Repayment of
lease liabilities are included as well.
Cash flow in currencies other than the
functional currency is recognised at
average exchange rates for the months of
the year unless they deviate significantly
from actual exchange rates on the
transaction dates.
Cash and cash equivalents are cash less
overdrafts, which consist of uncommitted
bank facilities that often fluctuate from
positive to overdrawn. Any short-term
bank facilities that are consistently
overdrawn are considered cash flow from
financing activities.
9.1 Group accounting policies continued
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Section 9
Basis for preparation
104 3
Key figures and financial ratios
Financial ratios are calculated in
On the preparation of the consolidated
financial statements, Management makes
a number of accounting estimates and
judgements. These relate to the
recognition, measurement and
classification of assets and liabilities. Many
items can only be estimated rather than
accurately measured. Such estimates are
based on the most recent information
available on preparation of the financial
statements. Estimates and judgements
are therefore reassessed on an ongoing
basis. Actual figures may, however,
deviate from these estimates. Any
changes in accounting estimates will be
recognised in the reporting period in
which such changes are made.
Significant accounting estimates and
judgements are described in the individual
notes to the consolidated financial
statements as outlined below:
1.1 Revenue
1.5 Inventories
3.3 Leases
3.5 Impairment (identification of CGUs)
5.2 Deferred tax
6.1 Acquisition of enterprises and
activities
Specific accounting estimates and
judgements are described in each of the
individual notes to the consolidated
financial statements as outlined below:
1.1 Revenue
1.2 Employees
1.5 Inventories
1.6 Trade receivables
1.7 Customer loans
3.1 Intangible assets
3.2 Property, plant, and equipment
3.3 Leases
5.2 Deferred tax
6.1 Acquisition of enterprises and
activities
7.1 Provisions
7.2 Other liabilities
9.1 Group accounting policies
continued
9.2 Accounting estimates and
judgements
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105 3
Parent
Parent financial
statements
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106 3
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106 3
Parent income statement
(DKK million)
Financial report
Parent financial statements
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107 3
Parent balance sheet at 31 December
(DKK million)
(DKK million)
Financial report
Parent financial statements
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108 3
Parent statement of changes in equity
(DKK million)
Share-
Capital
Other
reserves
Total
equity
Financial report
Parent financial statements
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Corporate information
Financial report
Section 10
Notes to parent
financial statements
109 3
Section 10
Notes to parent
financial statements
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Corporate information
Financial report
110 3
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 10
Notes to parent
financial statements
110 3
In 2023, the basic remuneration of a
was DKK 250,000 (DKK 250,000 in 2022).
The Chair of the Board of Directors
receives three times the basic
remuneration and the Vice Chair one and
a half time the basic remuneration.
The remuneration of the Executive Board
in William Demant Invest A/S includes
salaries and social security.
10.1 Employees
10.2 Fees to parent's auditors
appointed at the annual general
meeting
(DKK million)
10.3 Net financial items
(DKK million)
(DKK million)
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Section 10
Notes to parent
financial statements
111 3
As of 1 January 2023, INVISIO has been
transferred from Other Investments to
Investments in associates.
10.4 Financial assets
Investments
in
subsidiaries
Receivables
from
subsidiaries
Investments
in
associates
Receivables
from joint
operations
Other
investments
Investments
in
subsidiaries
Receivables
from
subsidiaries
Investments
in
associates
and joint
operations
Receivables
from joint
operations
Other
investments
(DKK million)
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Financial report
Section 10
Notes to parent
financial statements
112 3
10.5 Debt to
William Demant
Foundation
Of the debt to the William Demant
Foundation of DKK 2,023 million in 2022,
DKK 2,000 million was converted into
ordinary shares of William Demant Invest
A/S on 12 December 2023. The conversion
rate was the fair value at the time of
conversion.
The remaining balance, consisting of
accrued interests, was settled
simultaneously and hence no debt to
William Demant Foundation at the
balance sheet date.
10.6 Contingent
liabilities
William Demant Invest A/S is the
administration company of the joint
taxation arrangement with the Danish
subsidiaries in the William Demant Invest
Group and is under an unlimited and joint
liability regime for all Danish tax payments
and withholding taxes on dividends,
interests and royalties from the jointly
taxed entities.
10.7 Proposed
distribution of net
profit
(DKK million)
10.8 Related
parties
William Demant Foundation,
Kongebakken 9, 2765 Smørum, Denmark,
is the only related party with a controlling
interest. Related parties with significant
influence are the
Board, Board of Directors and their
related parties.
Furthermore, related parties are
companies in which the above persons
have significant interests.
During 2023, William Demant Invest A/S
acquired shares in Demant A/S from
William Demant Foundation amounting to
DKK 0 million (DKK 84.4 million in 2022)
and sold shares in Demant A/S to William
Demant Foundation amounting to DKK
383.2 million (DKK 91 million in 2022).
Further, William Demant Invest A/S
acquired shares in INVISIO AB from
William Demant Foundation amounting to
DKK 382.4 million (DKK 167.2 million in
2022), and sold shares in INVISIO AB to
William Demant Foundation amounting to
DKK 0 million (DKK 83 million in 2022)
During the year, William Demant Invest
A/S sold shares in Demant A/S to Demant
A/S amounting to DKK 389.7 million (DKK
0 in 2022).
All transactions were conducted on
marked terms.
10.9 Shareholder
The entire share capital is owned by
William Demant Foundation,
Kongebakken 9, 2765 Smørum,
Denmark.
10.10 Events after
the balance sheet
date
Please refer to Note 8.4 Events after the
balance sheet date in the consolidated
financial statements.
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Financial report
Section 10
Notes to parent
financial statements
113 3
The financial statements for the Parent,
William Demant Invest A/S, are presented
in accordance with the provisions of the
Danish Financial Statements Act for class
C (large) entities.
The parent financial statements are
presented in Danish kroner (DKK), which is
also the functional currency for the
Parent. The accounting policies are the
same as last year.
of recognition and measurement are
accounting policies. The instances in
deviate from those of the Group are
described in the following.
Income Statement
Tax
The Parent is administration company in
the joint taxation with the Danish
subsidiaries in the William Demant Invest
Group. Current income tax is allocated to
the jointly taxed Danish companies in
proportion to their taxable incomes.
the year, changes to deferred tax and any
adjustments for tax on taxable income for
previous years. Tax for the year is
recognised in the income statement,
unless the tax relates to items recognised
in equity.
Balance Sheet
Investments in subsidiaries and associates
Investments in subsidiaries and associates
are recognised and measured at cost. If
cost exceeds the recoverable value, write
down to the lower recoverable value will
be made. Dividends from investments in
subsidiaries and associates are recognised
as incom
statement under financial income in the
financial year in which the dividends are
declared.
Other investments
On initial recognition, other investments
are measured at cost. Subsequently, they
are measured at their fair values on the
balance sheet date and any changes in fair
values are recognised in the income
statement under net financial items.
Receivables from subsidiaries
Receivables from subsidiaries is
recognised at amortised cost which in all
material aspect is nominal value.
10.11 Parent accounting policies
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Financial report
Our approach to ESG
114 3
Section 11
Subsidiaries and
associates
115 2
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Financial report
Section 11
Subsidiaries and
associates
115 3
Subsidiaries in
Vision RT Ltd.
Subsidiaries in
Embla Medical hf.
Subsidiaries and associates in
William Demant Invest A/S
***Subconsolidated group of companies, including associated companies.
The list includes the Group's active companies.
*Directly owned by the Parent for 100%
**Subconsolidated group of companies, including companies with non-controlling interests.
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Financial report
Section 11
Subsidiaries and
associates
116 3
The list includes the Group's active companies
Subsidiaries and associates in Demant Group
*Directly owned by the Parent for 100%.
The list includes the Group's active companies
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Financial report
Section 11
Subsidiaries and
associates
117 3
Subsidiaries and associates in Demant Group
*Directly owned by the Parent for 100%
**Subconsolidated group of companies, including companies with non-controlling interests.
***Subconsolidated group of companies, including associated companies.
The list includes the Group's active companies.
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 11
Subsidiaries and
associates
118 3
Subsidiaries and associates in Demant Group
*Directly owned by the Parent for 100%
**Subconsolidated group of companies, including companies with non-controlling interests.
***Subconsolidated group of companies, including associated companies.
The list includes the Group's active companies.
Insights and highlights
The WDI companies
Corporate information
Financial report
Section 11
Subsidiaries and
associates
119 3
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Editing, design and production:
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