Untitled

3C RETAIL A/S

Østre Stationsvej 1-5

5000 Odense C, Denmark

Business Registration No 21 47 80 08

Annual Report 2022

The Annual General Meeting adopted the Annual Report on / 2023

Chairman of the Annual General Meeting

__________________________________

Mette Marie Pihl Overgaard

3C RETAIL A/S

Contents

Page

Company details 1

Statement by Management on the annual report 2

Independent auditor's report 3

Management commentary 6

Income statement for 2022 13

Statement of comprehensive income for 2022 14

Balance sheet at 31.12.2022 15

Statement of changes in equity at 31.12.2022 17

Cash flow statement for 2022 19

Notes 20

3C RETAIL A/S 1

Company details

Company

3C RETAIL A/S

Østre Stationsvej 1-5

5000 Odense C, Denmark

Business Registration No. 21478008

Registered in: Odense, Denmark

Board of Directors

Claus Wårsøe (Chairman)

Terje Laurberg Lyngø List

Jørn Tolstrup Rohde

Peter Schou Jørgensen

Mads Winther Andersen

Lisbeth Helene Borg

Executive Board

Niels Thorborg

Lars Claudi Mortensen

Auditor

Deloitte Statsautoriseret Revisionspartnerselskab

Tværkajen 5

5000 Odense C, Denmark

3C RETAIL A/S 2

Statement by Management on the Annual Report

ments as well as a description of the principal risks and uncertainties facing the Group and the Parent.

We recommend the Annual Report for adoption at the Annual General Meeting.

Odense, 01.03.2023

Executive Board

Niels Thorborg Lars Claudi Mortensen

Board of Directors

Claus Wårsøe Terje Laurberg Lyngø List Jørn Tolstrup Rohde

Chairman

Peter Schou Jørgensen

Mads Winther Andersen

Lisbeth Helene Borg

the Parent’s activities and finances, performance for the year and the Group’s and the Parent’s financial

position, and of the financial position as a whole for the entities included in the consolidated financial state-

C (large) enterprises.

In our opinion, the consolidated financial statements and the parent financial statements give a true and fair

view of the Group’s and the Parent’s financial position at 31.12.2022 and of their financial performance

We believe that the management commentary contains a fair review of the developments in the Group’s and

The Board of Directors and the Executive Board have today considered and approved the Annual

Report of 3C RETAIL A/S for the financial year 01.01.2022 – 31.12.2022.

The Annual Report is presented in accordance with International Financial Reporting Standards as

adopted by the EU and additional Danish disclosure requirements for annual reports of reporting class

and their cash flows for the financial year 01.01.2022 – 31.12.2022.

3C RETAIL A/S 3

Independent auditor's report

To the shareholders of 3C RETAIL A/S

Opinion

We have audited the consolidated financial statements and the parent financial statements of 3C RETAIL A/S

for the

financial year 01.01.2022 – 31.12.2022, which comprise the income statement, statement of compre

hensive income,

balance sheet, statement of changes in equity, cash flow statement and notes, including a summary of significant ac-

counting policies, for the Group as well as for the Parent. The consolidated financial statements and the parent financial

statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU and addi-

tional requirements of the Danish Financial Statements Act.

In our opinion, the consolidated financial statements and the parent financial st

atements give a true and fair view of the

Group’s and the Parent’s financial position at 31.12.2022, and of the results of their operations and cash flows

for the

financial year 01.01.2022 – 31.12.2022 in accordance with International Financial Reporting S

tandards as adopted by

the EU and additional requirements of the Danish Financial Statements Act.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional re

quirements

applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Audi-

tor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements”

section

of this auditor’s report. We are independent

of the Group in accordance with the International Ethics Standards Board

for Accountants’ international Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical

requirements applicable in Denmark, and we have fulfilled our other ethical responsibilit

ies in accordance with these

requirements and the IESBA code. We believe that the audit evidence we have obtained is suf

ficient and appropriate to

provide a basis for our opinion.

Statement on the management commentary

Management is responsible for the management commentary.

Our opinion on the consolidated financial statements and the parent financial statements does not cover the manage-

ment commentary, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements and the parent financial statements, our responsi-

bility is to read the management commentary and, in doing so, consider whether the management commentary is mate-

rially inconsistent with the consolidated financial statements or the parent financial statements or our knowledge ob-

tained in the audit or otherwise appears to be materially misstated.

Moreover, it is our responsibility to consider whether the management commentary provides the information requ

ired

under the Danish Financial Statements Act.

3C RETAIL A/S 4

Independent auditor's report

Based on the work we have performed, we conclude that the management commentary is in accordance with the con-

solidated financial statements and the parent financial statements and has been prepared in accordance with the re-

quirements of the Danish Financia

l Statements Act. We did not identify any material misstatement of the management

commentary.

Management’s responsibilities for the consolidated financial statements and the parent financial statements

Management is responsible for the preparation of cons

olidated financial statements and parent financial statements that

give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and

additional requirements of the Danish Financial Statements Act, and for such internal control as Management deter-

mines is necessary to enable the preparation of consolidated financial statements and parent financial statements that

are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements and the parent financial statements, Management is re

sponsible for

assessing the Group’s and the Parent’s ability to continue as a going concern, disclosing, as applicable, matters related

to going concern and using the going concern b

asis of accounting unless Management either intends to liquidate the

Group or the Parent or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the consolidated financial statements and parent financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent

financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audi-

or’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

audit conducted in accordance with ISAs and additional requirements applicable in Denmark will always detect a mate-

rial misstatement wh

en it exists. Misstatements can arise from fraud or error and are considered material if, individually

or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis

of these consolidated financial statements and these parent financial statements.

As part of an audit in accordance with ISAs and additional requirements applicable in Denmark, we exercise profes-

sional judgement and maintain professional scepticism throughout the audit. We also:

 Ident

ify and assess the risks of material misstatement of the consolidated financial statements and the parent

financial statements, whether due to fraud or error, design and perform audit procedures responsive to those

risks, and obtain audit evidence that is

sufficient and appropriate to provide a basis for our opinion. The risk of

not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud

may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

3C RETAIL A/S 5

Independent auditor's report

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

Group's and the Parent’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and

related disclosures made by Management.

 Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing

the consolidated financial statements and the parent financial statements and, based on the audit evidence ob-

tained, whether a material uncertainty exists related to events and conditions that may cast significant doubt on

the Group’s and the Parent’s ability to continue as a going concern. If we conclude that a material uncertainty

exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated

financial statements and the parent financial statements or, if such disclosures are inadequate, to modify our

opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. How-

ever, future events or conditions may cause the Group and the Company to cease to continue as a going con-

cern.

 Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent

financial statements, including the disclosures in the notes, and whether the consolidated financial statements

and the parent financial statements represent the underlying transactions and events in a manner that gives a

true and fair view.

 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business ac-

tivities within the Group to express an opinion on the consolidated financial statements. We are responsible

for the direction, supervision and performance of the group audit. We remain solely responsible for our audit

opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of

the audit and significant audit findings, including any significant deficiencies in internal control that we identify during

our audit.

Odense, 01.03.2023

Deloitte

Statsautoriseret Revisionspartnerselskab

Business Registration No 33 96 35 56

Anders Oldau Gjelstrup Heino Hyllested Tholsgaard

State-Authorised Public Accountant State-Authorised Public Accountant

Identification No mne10777 Identification No mne34511

3C RETAIL A/S 6

Management commentary

2022 2021 2020 2019 2018

DKK'000

Group financial highlights

Key figures

Income statement

Revenue incl. interest revenue 390.533 506.848 697.230 925.426 1.008.503

EBITDA* 83.602 150.796 287.103 241.706 181.174

Operating profit/loss (EBIT)* 64.705 129.402 266.917 222.689 162.996

Net financials -23.947 -22.147 -70.427 -72.345 -28.604

Profit/loss before tax 40.758 107.255 196.490 150.344 134.392

99.559

Profit/loss for the year after tax including profit/

loss from discontinued operations

30.210

75.486

127.591

71.151

61.901

Balance sheet

Balance sheet total 2.576.518 2.914.583 4.155.758 5.025.663 5.184.065

Receivables measured at amortised cost 1.392.396 1.606.379 2.673.210 3.461.573 3.583.655

Equity 1.125.393 1.123.162 1.068.833 962.942 930.747

Equity including subordinated loan from group enterprises 1.473.289 1.506.942 1.336.659 1.364.561 930.747

Net interest bearing debt* -825.542 -845.058 -678.681 -497.751 -624.225

Cash flow statement

Investments in property, plant and equipment 11.738 8.057 9.153 13.980 21.222

Financial ratios

Profit margin 16,6% 25,5% 38,3% 24,1% 16,2%

Return on capital employed 3,7% 5,2% 7,7% 5,6% 3,8%

Solvency ratio 43,7% 38,5% 25,7% 19,2% 18,0%

Solvency ratio including subordinated loan

from group enterprises

57,2%

51,7%

32,2%

27,2%

18,0%

Return on equity 2,7% 6,9% 12,6% 7,5% 6,1%

Debt multiple -9,87 -5,60 -2,36 -2,06 -3,45

*EBITDA, EBIT and net interest bearing debt are defined in note 1.

116.242Profit/loss for the year after tax from continuing operations 30.210 91.323 149.210

3C RETAIL A/S 7

Management commentary

Primary activity

As in previous years, the primary activity, in

Norway and Sweden, has consisted in cash lending, leaseout, cash sales and financed

selling of durable consumer goods, primarily white goods, brown goods (TV sets/DVD players), PC products, phones and acces-

sories. In Denmark, the Group now, as it’s primary activity, acts in line with Norway and Sweden and no longer as

intermediator

between Facit Bank and the market.

Developments in the financial year

The profit of the financial year 2022 is generally considered satisfactory coming out of the Covid-19 pandemic and

in the light of

the new economic development with rising inflation and high interest rates which has had a negative impact on revenue.

Unusual circumstances

unusual conditions have been noted in 2022.

Events after the balance sheet date

No events have occurr

ed after the balance sheet date to this date, which would influence the evaluation of this Annual Report.

Uncertainties in recognition and measurement

For a description of uncertainties in recognition and measurement,

refer to note 2.

Financial risk management policy

For a description of financial risk management policy,

refer to note 34

Interest rate risks

Variable interest is payable on the Group’s total bank loans of DKK 891,228k.

Foreign exchange risks

The Group’s unhedged net position stands at year end at DKK 29,280k, which is composed of SEK, NOK and EUR

Outlook for 2023

In 2023, revenue and profit before tax is expected to increase compared to what was achieved in 2022. The G

roup expects profit

before tax for 2023 to come within the range of 50 to 100 miodkk.

3C RETAIL A/S 8

Management commentary

Statutory report on corporate social responsibility

Below is 3C RETAIL A/S’ statutory report on corporate social responsibility (CSR) for the financial year 2022 pursu-

ant to sections 99a and 99b of the Danish Financial Statements Act.

Business model

The business model of 3C RETAIL A/S is based on cash lending, arrangement of cash lending and financed selling of

durable consumer goods, primarily white goods, brown goods (TV sets/DVD players), PC products, phones and acces-

sories primarily to private end consumers (B2C). The most significant CSR risks identified are customer comfort and

confidence including protection of personal data and employee satisfaction.

At 3C RETAIL A/S, CSR constitutes a natural part of day-to-day operations, and so our primary business areas serve

as a launch pad for our approach. Our CSR work is incentivized by an ambition of using our role to promote a sustain-

able development of the society that 3C RETAIL A/S operates in and is part of. It is also our goal to have our CSR

efforts accommodate our stakeholders’ needs and expectations and support the Company’s reputation in society.

We believe that the CSR efforts must be naturally tied to the Company’s business strategy and core competencies, what

we work with, in which countries we operate, and who our customers, staff and business partners are. Consequently,

we have decided to concentrate our work on four main areas that are all strategically linked to the core business of 3C

RETAIL A/S. These four main areas reflect subjects key to our stakeholders and where we as a business can really

make a difference:

 Customer comfort and confidence including human rights

 Enviromental and climate impacts

 Working environment (social conditions and labour rights)

 Statutory report on gender composition of management

Below, the specific policies defined for each main area are described, how they will be translated into practice, and

what results this has led to during the year.

Customer comfort and confidence including human rights

At 3C RETAIL A/S, we put customers first, and confidence is crucial to our business concept. Therefore, a targeted

effort is made to ensure that security and service are topnotch and that communication is clear and reliable so that cus-

tomers feel safe. We also use this communication to make sure that customers have optimal use of our products.

Customer communication

We constantly work on optimizing our business so that the customer will enjoy our products and services as much as

possible. Therefore, we have monitored customer satisfaction for many years by internal customer satisfaction surveys

as well as by reviews on Trustpilot.

3C RETAIL A/S 9

Management commentary

The customer satisfaction is high, and we continuously focus on maintaining and improving this by improving our customer

satisfaction survey flows in the future.

Human rights

When our customers do business with 3C RETAIL A/S, it is imperative that they can depend on us as a business to have

focus on accountability in relation to, for example, human rights. At 3C RETAIL A/S, we respect and support the internation-

ally recognized human rights, although we do not have a specific human rights policy of our own as our impact on this is

considered low as it is embedded in Danish and Scandinavian legislation, which we all embrace and respect.

Furthermore, as our primary service is consumer financing, we assess a low risk of human rights violations in our business

operations.

Policy on Data Ethics

During the recent years protection of personal data has been more actual – particular with the adoption of the EU act regard-

ing protection of personal data (GDPR). To support this, we have implemented a policy regarding data security to secure a

level of security and a policy regarding data ethics, which is in accordance with the demands and development of the business

as well as current external (legislation) demands and the current level of generic risk. The current risks are mitigated by,

among others, the following initiatives:

 We continuously focus on ensuring that customer data is processed as structured and safely as possible.

 We continuously work on ensuring that personal data is deleted when data is no longer relevant. The ongoing deletion

must ensure that we do not have more information about our customer than necessary.

 We continuously work with training and education of the employees to ensure that employees process data correctly.

 We enter into data processing agreements with relevant third parties and follows up that the third parties comply with

the processing and storage requirements of the data processing agreements.

Since implementation of these measures, we have registered a few minor breaches of the security, which have been reported

to the authorities. We will continue to work with the implemented measures in accordance with the policy in 2023.

Anti-corruption and bribery

Furthermore, 3C RETAIL A/S has implemented an anti-corruption policy specifying our opinion on corruption and the direc-

tions we observe in this respect. The anti-corruption policy deals with the following issues, which we recognize as the most

significant CSR risks all though our assessment of the impact and risk is minor.

 Conflict of interests

 Abuse of authority and blackmail

 Fraud and embezzlement

 Bribery

 Gifts

The anti-corruption policy has been implemented, for example, through a whistleblower scheme, and no incidents were re-

ported through this scheme in 2022. 3C RETAIL A/S operates in the Scandinavian market, which is characterized by a low

level of corruption, and we have not had any such cases. We will continue to use the whistleblower scheme next year.

3C RETAIL A/S 10

Management commentary

Environmental and climate

As a business, we are aware of the importance of our operations and the environment going hand in hand, and we are

working towards minimising our environmental impact while ensuring consistency with the expectations of our stake-

holders, although we do not have a specific environmental and climate policy of our own. The most significant CSR

risks regarding environment and climate are the disposal of electronic waste including obsolete and second hand prod-

ucts.

Waste disposal

One of the areas that we have particular focus on in our environmental responsibilities is to ensure sustainable disposal

of electric waste and electronic equipment – our own equipment but also that of our customers which is typically taken

back when new products are delivered. We place heavy demands on the suppliers who then handle the disposal of the

waste equipment and packing material collected, and we have signed a contract with an environmentally accredited

company which collects, processes and sells used packing material for recycling, and have so made waste a valuable

resource. Not all used electronics ends up as waste since some of it is sold on as secondhand products, and in this way

we reduce the amount of waste equipment and the environmental impact further. Through our focus we also ensure

that we comply with the WEEE Directive and applicable environmental law.

Products and distribution

Our distribution network is a key area where we can put our efforts to reduce our environmental impact as we use

public postal service for the deliveries of goods to the customers when possible; depending on the size of the product,

otherwise we do the deliveries ourselves. When acquiring trucks, we evaluate their environmental footprint along with

other parameters, and all trucks are speed-limited. We constantly seek to develop and optimize business processes.

Travel

Since some of the operations are geographically located abroad, this also means that we have some travel, primarily in

Scandinavia. In the light of corona crisis our travel activities have been reduced significantly, and the use of digital

tools such as TEAMS has gained ground. The objective is to continue replacing travel activities with video confer-

ences and conference calls. Reducing travels and adopting alternatives to reduce the financial and environmental im-

pact continue to be focal points, and internal guidelines have been laid down to meet this initiative.

The results of the above mentioned efforts are not directly measurable, but it is our belief that we contribute to the

protection of the environment.

3C RETAIL A/S 11

Management commentary

Working environment (social conditions and labour rights)

In 2022 we have over 200 (2021: 219) employees at 3C RETAIL A/S, and it is vital for our business model that they have a healthy and

good working environment. We place high demands on our employees, which is why we also take much of the responsibility for being an

attractive workplace where employees thrive. A healthy working climate provides the best conditions for motivated and committed em-

ployees. Our ambition is to recruit and retain competent and motivated employees, hence the most significant CSR risks are low job satis-

faction and psychological and physical welfare including working accidents.

Job satisfaction

We are aware of the social responsibility we have towards our employees, and we want 3C RETAIL A/S to be an attractive workplace

where employees thrive, and staff turnover is low. Therefore, creating a good and healthy working environment for them is a key element

of our staff policy, and we do that, for example, by having attractive staff benefits, an open dialogue, a canteen offering healthy food and

by regularly following up on sick employees.

At the end of 2022, a job satisfaction measurement was launched among all employees. For 2022, we had a response rate of approximate-

ly 94%, which is considered very satisfactory. Overall, the Group scored 4 on a scale from 1 to 5, which is regarded as very satisfactory

and on same level as 2021. Compared to the latest measurement back in 2021, we have made some minor changes in the 2022 measure-

ment, both in categories and in the questionnaire to obtain a more modern and up-to-date analysis with as relevant information as possi-

ble.

Based on the measurement, all management teams and departments hold feedback meetings, identify priorities, and develop action plans

for the areas in need thereof. The employees are part of this process and so they can affect developments and their own work life.

3C RETAIL’s staff turnover rate totals approximately 27% for 2022. We have many employees with high seniority, and when refilling

vacant positions, we generally experience that 3C RETAIL is able to attract qualified candidates. We see this as an indication that we

have a good and attractive workplace.

Besides job satisfaction measurements, sickness absenteeism is followed up on as well, and here the rate realised for 2022 was 1.2%

which is above 2021. We have continuous focus on sickness absenteeism and implement initiatives to reduce it where needed.

3C RETAIL A/S 12

Management commentary

Safety

To maintain a low level of sickness absenteeism and staff turnover, we every day have focus on improving the working environment – both the

psychological one and the physical one. We seek to improve the psychological working environment by means of an open dialogue and a

number of initiatives such as health insurance and support for crisis management and mental health counselling. It is vital to us that our em-

ployees experience a work life balance and that flexibility is demonstrated so as to make family life and leisure pursuits go hand in hand with

their professional life.

The physical working environment is given priority too, and it is ensured at our distribution centres that the employees have approved tools

and are instructed in correct ergonomic handling of goods - both at the warehouses and when making deliveries. The results of these efforts are

directly reflected in a very low sickness absenteeism rate and in the number of accidents at work annually ranging between zero and ten. Of

course, our goal is to not have any accidents at work at all, for which reason each incident is examined carefully for the purpose of avoiding

similar accidents in future.

Inclusivity and diversity

As a company in a modern society with all types of customers, we prioritize having a staff mix that reflects this type of diversity and inclusivi-

ty. We consider diversity a strength and aspire to be a workplace with competent and motivated employees representing a cross section of

gender, sexuality, ethnicity and religious orientation.

Statutory report on gender composition of management

Target figures for the representation of the underrepresented gender among those charged with governance

In 2022, the share of the underrepresented gender among the members of the Board of Directors elected at the general meeting is 0%, although

this figure was expected to be 25% before the end of 2022. The target figure has not yet been reached as the right candidate has not yet been

found, and there has not been any changes in these members. 3C RETAIL will be seeking to obtain the target figure by 2023.

Target figures for the representation of the underrepresented gender at other management levels

At other management levels, the underrepresented gender represented 22% at the end of 2022, which is lower than the target of 35%. Focus

will be maintained on achieving a more equal balance for which reason the target of 35% is maintained. To realize the targets set, the gender

composition policy contains guidelines aimed at ensuring that both genders are represented and considered equal in all respects. For instance,

everybody is offered the same opportunities for relevant further training and development, and no assessment based on gender is made when

posting internal management positions. The work of ensuring objectivity is based in the Company’s HR Department.

3C RETAIL A/S

Income statement for 2022

2021

2022

2021

DKK'000

Notes

DKK'000

Continuing operations

237.427 151.960

Revenue, incl interest revenue of

Group: 276m, 2021: 389m, parrent: 78m, 2021: 147m

3 390.533 506.848

19.175

468 Net gain from derecognition of financial assets 24.040

38.071

-50.336 -50.382 Cost of sales 4 -47.747 -44.070

206.266 102.046 Gross profit 366.826 500.849

41.717

42.154 Other operation income 0

-80.363

-46.689 Other external expenses 5 -179.019

-236.681

-88.996

-75.874 Staff costs 6,7 -104.205

-113.372

Amortisation, depreciation and

-15.584 -13.393 impairment losses 8 -18.897 -21.394

63.040 8.244 Operating profit 64.705 129.402

Income from investments in group

2.500

80.730

enterprises

109.657

87.459 Other financial income 10 44.474

64.672

-115.279 -70.890 Financial expenses 11 -68.421 -86.819

59.918

105.543

Profit before tax

40.758

107.255

-10.454 -5.472 Tax on profit for the year 13 -10.548 -15.932

Profit for the year from continuing

49.464

100.071

operations

30.210

91.323

Discontinued operations

0 0 Result from discontinued operations 35 0 -15.837

49.464 100.071

Profit for the year

30.210 75.486

Distribution of profit for the year

Parent shareholders 30.210 75.486

30.210 75.486

Parent Group

3C RETAIL A/S

Statement of comprehensive income for 2022

2021

2022

2021

DKK'000

Notes

DKK'000

49.464 100.071 Profit for the year 30.210 75.486

Items that may be reclassified to

profit or loss:

Foreign currency translation adjustment

regarding foreign entities

-4.979

1.843

0 0 Other comprehensive income -4.979 1.843

49.464 100.071

Comprehensive income

25.231 77.329

Distribution of comprehensive income

for the year

Parent shareholders 25.231 77.329

25.231 77.329

Parent Group

3C RETAIL A/S

Balance sheet at 31.12.2022

2021

2022

2021

DKK'000

Notes

DKK'000

15.000 15.000 Goodwill 15 59.320 62.362

5.682 14.061 Licences and software 15 24.257 15.861

20.682 29.061 Intangible assets 83.577 78.223

1.336 11.354 Rental assets 16 17.108 18.806

7.462 6.385 Other fixtures, fittings, tools and equipment 16 6.385 7.462

39.943 33.667 Right-of-use assets 16 43.565 51.821

0 976 Leasehold improvements 16 1.165 383

48.741 52.382 Property, plant and equipment 68.223 78.472

345.521 313.322 Investments in subsidiaries 18 0 0

101.020 101.982 Receivables from group enterprises 17 101.982 101.020

0 0 Other receivables 17 0 66.836

0 159 Deposits 17 159 0

446.541 415.463 Financial assets 102.141 167.856

112.397 95.550 Deferred tax assets 23 185.352 197.965

628.361

592.456

Non-current assets

439.293

522.516

14.102 16.284 Inventories 19 16.450 14.458

570.719 474.832 Receivables measured at amortised cost 20 1.392.396 1.606.379

1.546.064 1.421.032 Receivables from group enterprises 701.815 704.314

0 0 Income tax 248 987

16.332 9.915 Other receivables 17.897 28.878

13.999 1.702 Prepayments 1.701 4.284

2.147.114 1.907.481 Receivables 2.114.057 2.344.842

1.340 2.119 Cash 21 6.718 5.899

0 0 Assets held for sale 35 0 26.868

2.162.556

1.925.884

Current assets

2.137.225

2.392.067

2.790.917 2.518.340

Assets

2.576.518 2.914.583

Parent Group

3C RETAIL A/S

Balance sheet at 31.12.2022

2021

2022

2021

DKK'000

Note

DKK'000

500 500 Contributed capital 22 500 500

-3 0 Other reserves 17.132 22.108

974.420 1.051.488 Retained earnings 1.107.761 1.100.554

974.917

1.051.988

Equity

1.125.393

1.123.162

0 815.539 Bank loans 25 815.539 0

33.667 28.576 Lease liabilities 27 37.466 44.502

8.327 8.594 Other payables 28 8.594 8.327

0 0 Pension obligations 24 10.682 9.940

0 0 Deferred tax liabilities 23 6.912 9.534

41.994 852.709 Non-current liabilities 879.193 72.303

1.121.768 69.499 Bank loans 25 75.689 1.135.691

383.780 347.896 Subordinated loan from group enterprises 34 347.896 383.780

463 141 Prepayments from customers 1.276 1.422

9.641 8.446 Trade payables 26 13.548 13.939

0 0 Income tax 6.454 3.935

182.497 165.217 Payables from group enterprises 83.267 56.853

8.396 6.974 Lease liabilities 27 8.918 10.237

67.461 15.470 Other payables 28 34.473 86.364

0 0 Deferred income 411 29

1.774.006 613.643 Current liabilities 571.932 1.692.250

Liabilities regarding assets held

for sale

26.868

1.816.000

1.466.352

Liabilities

1.451.125

1.791.421

2.790.917 2.518.340

Liabilities and equity

2.576.518 2.914.583

Assets charged and collateral 29

Contingent liabilities 30

Other notes 34-40

Parent Group

3C RETAIL A/S

Statement of changes in equity for 2022 (Parent)

Contributed

Other

Retained

capital

reserves

earnings

Total

DKK'000

Equity at 01.01.2021

500

-3

947.956

948.453

Profit for the year

49.464

Comprehensive income in 2021

49.464

Dividend paid

-23.000

Equity at 01.01.2022

500

-3

974.420

974.917

Profit for the year

100.071

Comprehensive income in 2022

100.068

100.071

Dividend paid

-23.000

Equity at 31.12.2022

500

1.051.488

1.051.988

Reserve for

value adjust-

ment of

hedging

instruments

Total

DKK'000

Other reserves at 01.01.2021

-3

Profit for the year

Fair value adjustment of financial instruments entered

into to hedge future cash flows

Other reserves at 01.01.2022

-3

Profit for the year

Transfer to retained earnings

Fair value adjustment of financial instruments entered

into to hedge future cash flows 0 0

Other reserves at 31.12.2022 0 0

Parent

3C RETAIL A/S

Statement of changes in equity for 2022 (Group)

Contributed

Other

Retained

capital

reserves

earnings

Total

DKK'000

Equity at 01.01.2021

500

20.265

1.048.068

1.068.833

Other comprehensive income

1.843

Profit for the year

75.486

Comprehensive income in 2021

1.843

75.486

77.329

Dividend paid

-23.000

Equity at 01.01.2022

500

22.108

1.100.554

1.123.162

Other comprehensive income

-4.979

Profit for the year

30.210

Comprehensive income in 2022

-4.976

30.207

25.231

Dividend paid

-23.000

Equity at 31.12.2022

500

17.132

1.107.761

1.125.393

Reserve for

foreign

value adjust-

currency

ment of

translation

hedging

adjustments

instruments

Total

DKK'000

Other reserves at 01.01.2021

20.268

-3

20.265

Foreign currency translation adjustments regarding foreign subsidiaries

1.843

Fair value adjustment of financial instruments entered

into to hedge future cash flows

Other reserves at 01.01.2022

22.111

-3

22.108

Foreign currency translation adjustments regarding foreign subsidiaries

-4.979

Transfer to retained earnings

Fair value adjustment of financial instruments entered

into to hedge future cash flows 0 0 0

Other reserves at 31.12.2022 17.132 0 17.132

Group

3C RETAIL A/S

Cash flow statement for 2022

2021

2022

2021

DKK'000

Notes

DKK'000

49.464 100.071 Profit for the year from continuing operations 30.210 91.323

0 0 Profit/loss from discontinued operations 0 -15.837

16.297 -72.567 Adjustments 54.413 57.733

755.626 59.178 Working capital changes 32 171.549 1.068.862

821.387 86.682 Cash flows from ordinary operating activities 256.172 1.202.081

109.433 81.423 Interest income and similar income, paid 43.907 64.161

-86.355 -70.720 Interest expenses and similar expenses, paid -68.234 -88.576

844.465 97.385 Cash flows from operating activities before tax 231.845 1.177.666

74.000 11.375 Income tax paid 18.698 80.569

918.465 108.760 Cash flows from operating activities 250.543 1.258.235

2.500 126.873 Dividend received 0 0

0 -102.500 Capital injection to subsidiary 0 0

-2.100 -12.561 Acquisition of intangible assets -13.016 -12.193

-1.218 -17.424 Acquisition of property, plant and equipment -11.738 -8.057

36 -159 Investments 67.651 52.771

492 4.572 Sale of property, plant and equipment 7.724 3.532

303.421 212.625 Loans to related parties -6.471 -250

303.131 211.426 Cash flows from investing activities 44.150 35.803

-23.000 -23.000 Dividend distributed -23.000 -23.000

-8.744 -6.513 Repayment of lease liability 31 -8.355 -10.252

196.113 -53.164 Loans from related parties 31 -9.470 114.088

-1.385.739 -236.730 Reduction of bank loans 31 -236.730 -1.385.739

-1.221.370 -319.407 Cash flows from financing activities -277.555 -1.304.903

Increase/decrease in cash

and cash equivalents

1.114 1.340 Cash and cash equivalents at 01.01. -14.215 -5.543

0 0 Foreign currency translation adjustments -2.395 2.193

Cash and cash

equivalents at 31.12. 33

Parent Group

17.138 -10.865779226

2.1191.340 528 -14.215

3C RETAIL A/S 20

Notes to the Annual Report

1 Accounting policies

2 Significant judgements and estimates, assumptions and uncertainties

3 Revenue

4 Cost of sales

5 Fee to auditors appointed by the Annual General Meeting

6 Staff costs

7 Pension plans

8 Amortisation, depreciation and impairment losses

9 Income from investments in group enterprises

10 Other financial income

11 Financial expenses

12 Public grants

13 Income tax

14 Dividend

15 Intangible assets

16 Property, plant and equipment

17 Financial assets

18 Investments in subsidiaries

19 Inventories

20 Receivables measured at amortised cost

21 Cash

22 Contributed capital

23 Deferred tax

24 Other provisions

25 Bank loans

26 Trade payables

27 Lease liability

28 Other payables

29 Assets charged and collateral

30 Contingent liabilities

31 Changes in liabilities arising from financing activities

32 Working capital changes

33 Cash and cash equivalents

34 Financial risks and financial instruments

35 Discontinued operations

36 Related parties

37 Shareholder information

38 Events after the balance sheet date

39 Authorisation of the Annual Report for issue

40 Consolidation

3C RETAIL A/S 21

Notes

1. Accounting policies

The Annual Report of 3C RETAIL A/S for 2022, which comprises both the parent financial statements and the consolidated

financial statements, is presented in accordance with International Financial Reporting Standards as adopted by the EU and

additional Danish disclosure requirements for annual reports of reporting class C (large) enterprises. 3C RETAIL A/S is a public

limited company registered in Denmark.

The consolidated financial statements and the parent financial statements are

presented in Danish kroner (DKK), which is the

presentation currency of the Group's activities and the functional currency of the Parent. Except for derivative financial instruments,

the consolidated financial statements and the parent financial statements are presented on a historical cost basis.

The accounting policies applied to these financial statements are consistent with those applied last year.

Implementation of new and revised Standards and Interpretations

The consolidated financial statements

and the parent financial statements are presented in accordance with International Financial

Reporting Standards as adopted by the EU and additional Danish disclosure requirements for annual reports of reporting

class C

(large) enterprises applicable for financial years beginning on or after 01.01.2022. Additional Danish disclosure requirements for

financial statements are laid down in the Danish Executive Order on IFRS adoption issued in ac

cordance with the Danish Financial

Statements Act.

Effective from 1 January 2022, the Group has implemented the following revised standards and interpretations:

 Amendments to IFRS 3, IAS 16 and IAS 37

 Amendments to IFRS 16 on rent reliefs because of Covid-19 extended up to and including 30/06 2022

 Annual improvements to IFRS, Annual improvements to IFRS 2018-2020 Cycle

The effect of implementing the above changes is immaterial.

Standards and interpretations not yet in force

New stan

dards and interpretations or amendments to existing standards which have not become effe

ctive at the time of issuance of

this annual report have not been incorporated in the annual report.

The following amendments to existing and new standards and interpretations have not yet become effective and are not applicable in

the preparation of the financial statements for 2022:

 Amendments to IAS 1 on classification of liabilities and accounting policies

 Amendments to IAS 12, deferred tax relating to assets and liabilities arising from a single transaction

 Amendments to IAS 8 on definition of accounting estimates

Management has assessed that the implementation will not have any significant impact. Apart from the above, Management has not

identified any other standards and interpretations not yet effective that may be relevant to the Group.

3C RETAIL A/S 22

Notes

1. Accounting policies (continued)

Consolidated financial statements

The consolidated financial statements comprise of

3C RETAIL A/S (Parent) and the enterprises (subsidiaries) that are controlled by

the Parent. The Parent is deemed to have control when it

(i) has power over the relevant activities of the entity in question, (ii) has

exposure, or rights, to variable returns from its involvement with the investee, and iii) has the ability to use its power ov

er the

investee to affect the amount of variable returns.

Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises signific

ant, but

not controlling, influence are regarded as associates.

Consolidation principles

The consolidated financial stateme

nts are prepared on the basis of the financial statements of 3C RETAIL A/S and its subsidiaries.

The consolidated financial statements are prepared by adding together financial statement items of a uniform nature. The fina

ncial

statements used for consolidation have been prepared applying the Group’s accounting policies.

On consolidation, intra-group income and expenses, intra-

group accounts and dividends as well as profits and losses on transactions

between the consolidated enterprises are eliminated.

Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements.

Minority interests

On initial recognition, minority interests are either measured at fair value or at their pro rata share of the fair value of the acquir

ee’s

identifiable assets, liabilities or contingent liabilities. The choice of method is made for every single transaction. Minori

ty interests

are adjusted subsequently for their pro rata share of changes in the subsidiary’s equity. Comprehensive income is

allocated to the

minority interests, irrespective of the minority interest being negative.

Acquisition of minority interests in a subsidiary and sale of minority interests in a subsidiary, which does not cause contro

l to cease,

are accounted for in the c

onsolidated financial statements as an equity transaction, and the difference between the consideration and

the carrying amount is allocated to the Parent’s share of equity.

Business combinations

Newly acquired or newly established enterprises are recogni

sed in the consolidated financial statements from the time of acquiring or

establishing such enterprises. Time of acquisition is the date on which control over the enterprise is actually acquired. Div

ested or

wound-up enterprises are recognised in the consolidated income statement up to the time of their divestment or winding-

up. Time of

divestment is the date on which control of the enterprise actually passes to a third party.

The purchase method is applied in the acquisition of new enterprises, under whic

h identifiable assets, liabilities and contingent

liabilities of these enterprises are measured at fair value at the acquisition date. Non-

currents assets acquired for the purpose of resale,

however, are measured at fair value less anticipated selling costs. Restructuring costs are only recognised in the pre-

acquisition

balance sheet if they constitute a liability of the acquiree. Allowance is made for the tax effect of the restatements made.

The acquisition consideration for an enterprise consists of the f

air value of the consideration paid for the acquiree. If the final

determination of the consideration is conditional upon one or several future events, they are recognised at fair value thereo

f at the

time of acquisition. Costs which are directly attributa

ble to the acquisition of the enterprise are recognised directly in profit and loss

when incurred.

3C RETAIL A/S 23

Notes

1. Accounting policies (continued)

Positive differences (goodwill) between, on the one hand, the acquisition consideration for the acquiree, the value of minority

interests in the acquiree and the fair value of the previously acquired investments, and, on the other hand, the fair value of the

assets, liabilities and contingent liabilities acquired are recognised as an asset under intangible assets and tested for

impairment at least once a year. If the asset’s carrying amount is higher than its recoverable amount, it is written down to such

lower recoverable amount.

For negative differences (negative goodwill), the calculated fair values, the calculated acquisition consideration for the

enterprise, the value of minority interests in the acquiree and the fair value of the previously acquired investments are

reassessed. If the difference continues to be negative, it is recognised as income in profit and loss.

If at the acquisition date, the identification or measurement of acquired assets, liabilities or contingent liabilities or

determination of the acquisition consideration is subject to uncertainty, initial recognition is made on the basis of preliminary

values. The preliminary values can be adjusted, or further assets or liabilities recognised, until 12 months after the acquisition

if new information has occurred in relation to matters which existed at the acquisition date which would have affected the

calculation of the values at the acquisition date, had the information been known.

Changes in estimates of conditional acquisition consideration are, as a general rule, recognised directly in profit or loss.

On transition to IFRS, business combinations that occurred before 01.01.2009 have not been restated to reflect the changes in

accounting policies, except for the separation of any identifiable intangible assets. The carrying amount of goodwill at

01.01.2009 relating to business combinations performed before 01.01.2009 is considered to be the cost of goodwill. At

31.12.2022, the carrying amount of goodwill relating to business combinations performed before 01.01.2009 totals DKK

59,320k.

Profit or loss from divestment or winding

-up of subsidiaries

Profits or losses from divestment or winding-up of subsidiaries and associates which result in cessation of control or

significant influence are calculated as the difference between, on the one hand, the fair value of the sales proceeds or the

settlement price and the fair value of any remaining investments and, on the other hand, the carrying amount of net assets at

the time of divestment or winding-up, including goodwill, net of any minority interests. The calculated profit or loss is

recognised in profit and loss together with accumulated foreign currency translation adjustments, which were previously

recognised in other comprehensive income.

Foreign currency translation

On initial recognition, transactions in currencies other than the individual enterprise’s functional currency are translated

applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in foreign

currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date.

Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at

the balance sheet date, are recognised in profit and loss as financial income or financial expenses. Property, plant 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 transaction date exchange rate. Non-monetary items that are restated at fair value are

translated using the exchange rate at the date of restatement.

When enterprises which present their financial statements in a functional currency different from Danish kroner (DKK) are

recognised in the consolidated financial statements, the income statements are translated at the months' average exchange rates

unless they vary significantly from the actual exchange rates at the transaction dates. In the latter case, the actual exchange

rates are applied. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered

as belonging to the relevant acquiree and is translated using the exchange rate at the balance sheet date.

3C RETAIL A/S 24

Notes

1. Accounting policies (continued)

Exchange differences arising out of the translation of foreign enterprises’ balance sheet items at the beginning of the year

using the balance sheet date exchange rates as well as out of the translation of income stateme

nts from average rates to the

exchange rates at the balance sheet date are recognised in other comprehensive income. Similarly, exchange differences

arising out of changes that have been made directly in the foreign enterprise’s equity are recognised in ot

her comprehensive

income as well.

Translation adjustments of receivables from or payables to subsidiaries which are considered part of the Parent's total

investment in the subsidiary in question are recognised in other comprehensive income in the consolid

ated financial

statements, whereas they are recognised in profit and loss of the parent financial statements.

Derivative financial instruments

On initial recognition, derivative financial instruments are measured at fair value at the date of settlement. C

osts directly

attributable to the purchase or issue of the individual financial instrument (transactions costs) are added to fair value on

initial recognition unless the financial asset or the financial liability is measured at fair value in the income sta

tement

including fair value adjustments.

Subsequent to initial recognition, derivative financial instruments are measured at fair value

at the balance sheet date. Positive and negative fair values of derivative financial instruments are recognised in othe

receivables or other payables.

Changes in the fair value of derivative financial instruments classified as and complying with the requirements for hedging

the fair value of a recognised asset or a recognised liability are recorded in the income statemen

t together with changes in the

value of the hedged asset or the hedged liability.

Changes in the fair value of derivative financial instruments classified as and complying with the requirements for effective

hedging future transactions are recognised in

other comprehensive income. The ineffective portion is recognised immediately

in profit and loss. When the hedged transactions are made, the accumulated changes are recognised as part of cost of the

relevant transactions.

Changes in the fair value of der

ivative financial instruments that are applied for hedging net investments in foreign

enterprises are recognised in the consolidated financial statements in other comprehensive income if hedging is effective.

The ineffective portion is recognised immediate

ly in the income statement. If the relevant foreign enterprise is divested, the

accumulated changes in value are taken to profit or loss.

Derivative financial instruments that do not qualify as hedging

instruments are regarded as trading portfolios and mea

sured at fair value with current recognition of fair value adjustments in

financial income or financial expenses through profit and loss.

Income tax

Tax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in

the income statement

by the portion attributable to profit or loss for the year and taken other comprehensive income by the portion attributable t

entries directly in other comprehensive income. Foreign currency translation adjustments of deferred tax ar

e recognised as

part of the year’s adjustments of deferred tax.

The current tax payable or receivable is recognised in the balance sheet, stated

as tax computed on this year’s taxable income, adjusted for prepaid tax.

3C RETAIL A/S 25

Notes

1. Accounting policies (continued)

When computing the current tax for the year, the tax rates and tax rules in effect at the balance sheet date are used.

Deferred

tax is recognised under the balance-sheet liability method on all temporary differences between carrying amounts and tax-

based values of assets and liabilities, except for deferred tax on temporary differences arising from either initial recognit

ion of

goodwill or initial recognition of a transaction that is not a business combination, and where s

uch temporary difference

identified at the time of initial recognition affects the carrying amount or the taxable income.

Deferred tax is recognised on all temporary differences related to investments in subsidiaries and associates, unless the Par

ent

is able to control when the deferred tax is realised, and it is probable that the deferred tax will not crystallise as current ta

x in

the foreseeable future.

Deferred tax is computed based on the planned use of each asset and the settlement of each liability,

respectively.

Deferred tax is measured by using the tax rates and tax rules in the relevant countries which are based on acts passed or act

passed in reality at the balance sheet date and which are expected to apply when the deferred tax is expected to b

e triggered as

current tax. Changes in deferred tax resulting from changed tax rates or tax rules are recognised in the income statement

unless the deferred tax is attributable to transactions previously recognised directly in equity. If so, such changes a

re also

recognised in other comprehensive income.

Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at their estimated

realisable value, either as a set-off against deferred tax liabilities or as net tax assets for set-

off against future positive taxable

income. At every balance sheet date, it is assessed whether sufficient taxable income is likely to arise in the future for th

deferred tax asset to be used.

The Parent is jointly taxed with all Danish subsidiaries of the 3C Holding 2021

ApS Group. The current Danish income tax is

allocated among the jointly taxed entities proportionally to their taxable income.

Statement of comprehensive income

Revenue

Revenue comprises income from the sale of good

s and services falling within the Company’s ordinary operations, including

sale of goods, income from the lease-out and sale of rental assets, interest on cash lending and

contract receivables etc,

servicing contracts and commissions.

Revenue is measured at amortised cost of the consideration received or receivable. If interest-

free credit has been arranged for

payment of the consideration receivable that is longer than the usual credit period, the fair value of the consideration is

determined by discounting the future payments.

Revenue is calculated net of VAT, duties etc collected on behalf of a third

party and discounts.

Derecognition of financial assets

A financial asset is only derecognized when the contractual rights to the cash flows from the asset expire,

or when it transfers

the financial asset and substantially all the risks and rewards of ownership of the asset to

another entity. On derecognition of a

financial asset measured at amortised cost, the difference between the asset’s carrying amount an

d the sum of the

consideration received and receivable is recognised in profit or loss.

3C RETAIL A/S 26

Notes

1. Accounting policies (continued)

Cost of sales

Cost of sales comprises consumer goods for sale and direct expenses.

Other external expenses

Other external expenses comprise expenses for distribution, sale, marketing, administration, premises, bad debts, etc.

Other operating income

Other operating income comprises income of a secondary nature as viewed in relation to the Group’s primary activities,

including re-invoicing of group expenses, etc.

Staff costs

Staff costs comprise salaries and wages, costs concerning pension plans as well as other social security costs etc taken to t

income statement in the financial year.

Financial income and financial expenses

These items comprise inter

est income except for interest income from contract receivables recognised in revenue and interest

expenses, realised and unrealised capital gains and losses on securities, payables and foreign currency transactions.

Public

grants

Public grants are recogn

ised when it is virtually certain that the conditions underlying the grants have been met and that the

grant will be received.

Grants to cover expenses incurred are recognised in the income statement proportionally over the

periods during which the relat

ed expenses are recognised in the income statement. The grants are set off against the expenses

incurred. Public grants related to an asset are deducted from its costs.

Discontinued activities and non

-current assets held for sale

Discontinued activities

are material business areas or geographical areas sold or held for sale according to an overall plan.

Subsidiaries acquired only for resale are regarded as discontinued operations.

Results from discontinued operations are

presented in the income statement

as a separate line item consisting of operating profit or loss after tax of the relevant

operation and any gains or losses from fair value adjustments or sale of the assets and liabilities related to the operation.

Non

-current assets and groups of assets

held for sale are presented separately in the balance sheet as current assets. Liabilities

directly related to the relevant assets are presented as current liabilities in the balance sheet.

Non

-current assets held for sale are not depreciated, but are wri

tten down to fair value less estimated selling expenses if this

value is lower than the carrying amount.

Balance sheet

Goodwill

On initial recognition, goodwill is recognised and measured as the difference between cost of the acquiree and the fair value o

the acquired assets, liabilities and contingent liabilities, refer to the description in the section on consolidated financia

statements.

Acquired intellectual property rights are written down to any lower recoverable amount, refer to the section below

on impairment losses.

3C RETAIL A/S 27

Notes

1. Accounting policies (continued)

When goodwill is recognised, the amount goodwill is allocated to the activities of the Group generating separate payments

(cash-generating units). Determination of cash-generating units complies with the management structure and management

accounting and reporting of the Group.

Goodwill is not amortised but tested at least once a year for impairment, refer to the section on impairment losses for

intangible assets and property, plant and equipment and investments in subsidiaries and associates.

Other intangible assets

Acquired intellectual property rights in the form of licences and software are measured at cost less accumulated amortisation

and impairment losses. Licences are amortised over the term of the agreement. If the actual useful life is shorter than the

remaining duration and the contract period, respectively, amortisation is made over such shorter useful life. Software acquired

is recognised at cost which includes the costs incurred for using the software. Software acquired is amortised on a straight-line

basis over a period of three to ten years.

Property, plant and equipment

Other fixtures, fittings, tools and equipment, leasehold improvements and rental assets are measured at cost less accumulated

depreciation and impairment losses.

Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset until the

time when it is ready to be put into operation. For own-manufactured assets, cost comprises costs directly attributable to the

manufacture of the asset, including materials, components, subsuppliers and wages. For assets held under finance leases, cost

is the lower of the asset’s fair value and present value of future lease payments.

The basis of depreciation is cost less estimated residual value. The residual value is the estimated amount that would be earned

if selling the asset today net of selling costs, if the asset is of an age and a condition that is expected after the end of useful life.

Cost of a combined asset is divided into small components depreciated individually if their useful lives vary.

Straight-line depreciation is made on the basis of the estimated useful lives of the assets:

Leasehold improvements 2-10 years

Other fixtures, fittings, tools and equipment and rental assets 2-10 years

Depreciation methods, useful lives and residual amounts are reassessed annually.

Property, plant and equipment are written down to the lower of recoverable amount and carrying amount, refer to the section

below on impairment losses.

Leases applicable

A lease asset and a lease liability are recognised in the balance sheet when, according to a lease incepted on a specifically

identifyable asset, the lease asset is made available to the Group over the lease term and when the Group obtains the right to

substantially all of the economic benefits from use of the identified asset and the right to direct (control) the use of the

identified asset.

On initial recognition, lease liabilities are measured at the present value of future lease payments discounted using an

alternative borrowing rate.

3C RETAIL A/S 28

Notes

1. Accounting policies (continued)

The lease liability is measured at amortised cost under the effective interest rate method. The lease liability is recalculat

when changes occur in the underlying contractual cash flows arising from index or interest rate changes.

On initial recognition, the lease asset is measured at cost which is equivalent to the amount of the lease liability. Subsequ

ently,

the asset is measured at cost net of accumulated depreciation and impairment losses. The lease asset is deprec

iated over the

shorter of its lease term and its useful life. Depreciation is recognised on a straight-line basis in profit or loss.

The lease asset

is adjusted for changes in the lease liability caused by amendments to the terms and conditions of the lea

se or changes in

contractual cash flows concurrently with index or interest rate changes.

Lease assets are depreciated on a straight-line basis over the expected lease term, which is:

Properties 9 years

Equipment 5 years

The Group presents lease assets and lease liabilities separately on the balance sheet.

The Group has opted not to recognise low-value lease assets and short-

term lease assets in the balance sheet. Instead, lease

payments regarding these leases are recognised on a straight-line basis in profit or loss.

Impairment losses on property, plant and equipment, intangible assets and investments in subsidiaries and associates

The carrying amounts of property, plant and equipment and intangible assets with definite useful lives as well

as investments

in subsidiaries and associates are tested at the balance sheet date for any indication of impairment. If impaired, the recove

rable

amount of the asset is estimated to determine the need for any writedown for impairment and the extent thereof.

For goodwill, the recoverable amount is calculated annually irrespective of whether indications of impairment have been

identified.

If the asset does not generate cash flows separately from other assets, the recoverable amount is calculated for the

smallest cashgenerating unit in which the asset is included.

The recoverable amount is determined as the higher of the asset’s or the cash-

generating unit’s fair value, net of selling costs,

and the value in use. When the value in use is determined, estimated

future cash flows are discounted to present value using a

discount rate that reflects current market estimates of the time value of money, as well as the particular risks related to t

asset and the cashgenerating unit, respectively, and for which no adjustment is made in estimated future cash flows.

If the recoverable amount of the asset or the cash-

generating unit is estimated to be lower than carrying amount, the carrying

amount is written down to recoverable amount. For cashgenerating units, the writed

own for impairment is allocated to the

effect that amounts of goodwill are written down first, and then any remaining impairment loss is allocated on the other asse

of the unit, however, the individual asset may not be written down to an amount below its

fair value net of any expected

selling costs.

Impairment losses are recognised in the income statement. In case of any subsequent reversals of impairment

losses resulting from changes in assumptions of the estimated recoverable amount, the carrying amount

of the asset and the

cash-

generating unit, respectively, is increased to the adjusted estimate of the recoverable amount, however, to no more than

the carrying amount which the asset or the cash generating unit would have had if the writedown for impairme

nt had not been

performed. Writedown of goodwill for impairment is not reversed.

3C RETAIL A/S 29

Notes

1. Accounting policies (continued)

Investments in subsidiaries in the parent financial statements

Investments in subsidiaries are measured at cost in the parent financial statements.

If cost exceeds the recoverable amount of

the investments, the investment

s are written down to such lower value, refer to the section above on impairment losses. If

more dividends are distributed than have in aggregate been earned by the enterprise since the Parent’s acquisition of the

investments, this is regarded as an indication of impairment, refer to the section above on impairment losses.

Deposits

Deposits are measured at amortised cost.

Inventories

Inventories are measured at the lower of cost using the FIFO method and net realisable value.

Cost of goods for resale

comprises cost plus delivery costs.

The net realiable value of inventories is calculated as the estimated selling price less

completion costs and costs incurred to execute the sale.

Loans measured at amortised cost

On initial recognition, loans are recognised at fair value net of fees received and transaktions cost

which form an integral part

of the effective interest rate. Subsequently, loans are measured at amortised cost net of expected credit loss. Adjustments o

provisions for bad debts because of a credi

t risk are recognised in the income statement in the line item “Other external

expenses”.

The expected loss impairment rules entail that, on initial recognition, a loan is written down by an amount equivalent to the ex-

pected credit loss over a 12-month period (Stage 1).

If, subsequently, credit risk has increased significantly since initial recognition,

the loan is written down by an amount equivalent to the expected credit loss over the remaining maturity period of the loan (

Stage

2). A significant increase in credit risk is established by determining non-payments whereby the first non-payments

will

constitute a significant increase. If the value of the loan is impaired (Stage 3), the loan will be written down by an amount equiva-

lent to the expected

credit loss over the remaining maturity period of the asset, however, interest income is recognised in profit or

loss applying the effective interest method to the amount written down. A credit-impaired asset is established by determinig non-

payments where 3 non-payments cause the asset to be classified as credit-impaired. Impairment losses on credit-

impaired

loans (Stage 3) have been calculated by discounting expected future cash flows up to 15 year period.

The calculated cash

flows are discounted using the weighted, original, credit-adjusted effective interest rate and a possive and negative scenario.

3C RETAIL A/S 30

Notes

1. Accounting policies (continued)

Prepayments

Prepayments comprise incurred costs relating to subsequent financial years.

Prepayments are measured at cost.

Dividend

Dividend is recognised as a liability at the time of adoption at the Annual General Meeting.

Pension obligations and similar obligations

Under defined contribution plans, the Company pays fixed contributions to independent pension providers etc on a current

basis. The contributions are recognised in the income statement in the period in which

the employees have provided the

services conferring a right to the pension contribution. Contributions payable are recognised in the balance sheet under

liabilities.

In defined benefit plans, the Group is obliged to pay a defined benefit upon retirement

of the employees, for example, a fixed

amount or a percentage of the exit salary.

For defined benefit plans, an actuarial calculation is made anually of the value in use of future benefits to which the emplo

yees

have earned a right through their past empl

oyment in the Group and which will be payable under the plan. The Projected Unit

Credit Method is used to determine the value in use. The value in use is calculated on the basis of market assumptions about

future developments in, for example, pay level, interest rates, inflation, mortality and disability.

The value in use of pension obligations net of fair value of any assets related to the plan is recognised in the balance shee

under pension assets or pension obligations, depending on whether the net amount is an asset or a liability.

Provisions

Provisions are recognised when the Group has a legal or constructive obligation as a result of past events in the financial y

ear

or prior years, and it is probable that settlement of such obligation will lead to an outflow of the Group's financial resources.

Other financial liabilities

Other financial liabilities comprise bank loans, trade payables and other payables to public authorities etc.

On initial recognition, other financial liabilities are measured at f

air value less any transaction costs. Subsequently, these

liabilities are measured at amortised cost applying the effective interest method to the effect that the difference between

proceeds and nominal amount is recognised in the income statement as a financial expense over the term of the loan.

3C RETAIL A/S 31

Notes

1. Accounting policies (continued)

Deferred income

Deferred income comprises income received relating to subsequent financial years and gift and credit vouchers. On

initial recognition, gift and credit vouchers are measured at cost usually equaling the co

nsideration received. The

consideration received is allocated on gift and credit vouchers expected to be spent and recognised in revenue when the

individual gift or credit vouchers are spent. The estimate of gift and credit vouchers expected to be spent i

s reassessed

on an ongoing basis. Other items of deferred income are measured at cost.

Cash flow statement

The cash flow statement shows cash flows from operating, investing and financing activities as well as cash and cash

equivalents at the beginning and end of the financial year.

Cash flows from acquired and divested enterprises are shown as separate line items within cash flows from investing

activities. Cash flows from enterprises acquired are recognised in the cash flow statement from the time of th

eir

acquisition, and cash flows from enterprises divested are recognised up to the time of sale.

Cash flows from operating activities are presented using the indirect method and calculated as profit or loss for the year

adjusted for non-cash operating ite

ms, working capital changes as well as financial income, financial expenses and

income tax paid.

Adjustments in the cash flow statement consists of amortisation, depreciation and impairment losses,

financial income, finincial expenses and tax.

Cash flows

from investing activities comprise payments in connection with acquisition and divestment of enterprises

and financial assets as well as acquisition, development, improvement and sale, etc of intangible assets and property,

plant and equipment. Cash flows

from financing activities comprise changes in the Parent’s share capital and any

related costs as well as the raising and settlement of loans, instalments on interest-

bearing debt, purchase of treasury

shares and payment of dividends.

Cash flows in curren

cies other than the functional currency are recognised in the cash flow statement, using the average

exchange rates for the months, unless they vary significantly from the actual exchange rates at the transaction dates. In the

latter case, the actual exchange rates at the individual dates are used.

3C RETAIL A/S 32

Notes

1. Accounting policies (continued)

Financial highlights

Financial highlights are defined as follows:

Financial ratios

Calculation formula

Profit margin (%)

Operating profit/loss • 100

Revenue

Return on capital employed (%)

EBIT• 100

Average operatin

g assets

Solvency ratio (%)

Equity incl minority interests • 100

Balance sheet total

Return on equity (%)

Parent’s share of profit/loss for the year • 100

Parent’s average share of group equity

Debt multiple

Net interest bearing debt

EBITDA

Average operating assets are calculated as the balance sheet total net of cash, interest bearing assets (including shares) and

investments in associates.

EBITDA comprises interest income from the Group’s primary activity.

EBIT comprises interest income from the Group’s primary activity.

Net interestbearing debt is defined as interest bearing liabilities net of interest bearing receivables.

2. Significant judgements and estimates, assumptions and uncertainties

Recognition and measurement of assets and liabilities often depend on future events that are subject to some uncertainty. In

this connection it is necessary to assume courses of events etc reflecting Management's assessment of the most likely course

of events. In the financial statements for 2022, the following assumptions and uncertainties should especially be noted as

they have had considerable impact on the assets and liabilities recognised in the financial statements and may call for correc-

tions in the subsequent financial years if the courses of events assumed are not realised as expected:

Loans measured at amortised cost

The calculation of expected future losses and expected future cash flows is based on the Company’s history for similar loan

portfolios. Applying history and the estimates made are subject to some uncertainty, and the variation may be material both

in positive and negative direction. Refer also to note 34.

Right-of-use assets and lease liabilities

Determining the right-of-use period is subject to estimation, for which reason any change therein might be both positive and

negative. A longer right-of-use period would cause an increase in the lease asset and the lease liability.

Recovery of deferred tax assets

Deferred tax assets are recognised for all unutilised tax losses insofar as it is deemed probable that taxable income will be

generated in the foreseeable future against which these losses may be offset/used. Determining the size of the amount recog-

nisable as a deferred tax asset is based on estimation of the probable time and size of

future taxable income.

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

3. Revenue

67.234 54.534 Sale of goods 73.163 75.167

2.051 2.328 Rental income 14.701 15.376

21.177 16.840 Commissions and subscriptions 26.692 27.602

146.965 78.258 Interest and fees on receivables 275.977 388.703

237.427 151.960 390.533 506.848

Revenue is mainly to private customers, and delivery obligation are always fulfilt at a specific time

In the B2C segment, leases are set up with a minimum term to maturity of 12

months whereas leases in the B2B segment have more varying terms to maturity.

Contractually guaranteed rental income from operating leases can be specified as follows:

252 207 Within one year of the balance sheet date 5.052 6.419

Between one and two years from the

balance sheet date

2.750

4.095

Between two and three years from the

balance sheet date

1.491

2.084

Between three and four years from the

balance sheet date

716

935

Between four and five years from the

balance sheet date

203

273

More than five years after the balance sheet

date

252 208 10.212 13.806

Parent Group

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

4. Cost of sales

48.301 49.000 Cost of products sold 46.213 41.857

-108 -289 Reversal of impairment losses on inventories -289 -108

2.143 1.671 Other cost of sales 1.823 2.321

50.336 50.382 47.747 44.070

5. Fees to auditors appointed

by the Annual General Meeting

Other external expenses include fees to auditors

appointed by the Annual General

Meeting at:

681 783 Audit services 1.405 1.267

119 56 Tax assistance 63 126

3.415 79 Other non-audit services 333 3.556

0 0 Other assurance engagements 78 76

4.215 918 1.879 5.025

6. Staff costs

80.994 68.956 Wages and salaries 88.135 99.726

6.200 5.287 Pension contributions 8.157 6.808

1.802 1.631 Other social security expenses 7.913 6.838

88.996 75.874 104.205 113.372

181 136 Average headcount 177 233

Remuneration for members of

Management:

3.217 3.379 Wages and salaries (incl staff benefits) 5.930 6.721

176 152 Defined contribution plans 303 376

3.393 3.531 6.233 7.097

Board of Directors

475 531 Directors’ remuneration 531 475

475 531 531 475

Parent Group

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

7. Pension plans

Contributions taken to profit or loss:

6.200 5.287 Defined contribution plans 6.551 6.476

0 0 Defined benefit plans 1.606 332

6.200 5.287 8.157 6.808

8. Amortisation, depreciation and

impairment losses

3.940 4.182 Licences 4.620 4.088

299 638 Rental assets 3.527 3.810

10.293 8.988 Right-of-use assets 11.017 12.272

985 882 Other fixtures, fittings, tools and equipment 882 999

4 119 Leasehold improvements 267 162

63 -1.416 Loss/(profit) on sale of other fixtures etc -1.416 63

15.584 13.393 Total amortisation and depreciation 18.897 21.394

Parent Group

The Group makes very little use of defined

benefit plans which are adjusted based on

actuarial calculations.

The Group has entered into defined

contribution plans for the majority of its

employees. Pursuant to these plans, a monthly

amount of 5.6% to 10.0% of the relevant

employees’ basic pay is paid into independent

pension providers.

Members of the Executive Board of the

Parent and the Group are subject to

special bonus plans relying on

individually determined performance

targets. None of the bonus plans may

result in bonus payments of more than

50% of the individual member’s basic

salary.

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

9. Income from investments in

group enterprises

0 2.733 Dividend from Thorn Norge Finans AS 0 0

0 76.640 Dividend from Thorn Norway Holdings AS 0 0

2.500 47.500 Dividend from 3C Ejendomme ApS 0 0

0 -46.143 Impairment losses on group enterprises* 0 0

2.500 80.730 0 0

* Refer to note 18 for a description of impairment losses on group enterprises

10. Other financial income

0 4 Interest on bank deposits etc 61 0

88.345 81.415 Interest from group enterprises 42.967 39.716

21.088 4 Other interest 879 24.441

109.433 81.423 Interest income from financial assets 43.907 64.157

224 6.036 Foreign currency translation adjustments 567 515

109.657 87.459 44.474 64.672

11. Financial expenses

63.761 49.698 Interest on bank loans 49.907 63.976

20.846 19.825 Interest to group enterprises 16.053 17.959

1.748 1.197 Other interest 2.274 2.970

86.355 70.720 Interest expenses from financial liabilities 68.234 84.905

13.087 170 Foreign currency translation adjustments 187 1.914

Impairment of receivables from group

15.837

enterprises

115.279 70.890 68.421 86.819

12. Public grants

9.400 0 Public grants 0 9.400

9.400 0 0 9.400

Public grants relates to the state compensation of fixed costs and salary, due to the COVID19 pandemic.

Public grants is deducted in the following related expenses: other external expenses, staff costs, financial

expenses and result from discontinued operations.

Parent Group

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

13. Income tax

0 0 Current tax 6.942 3.979

11.483 5.509 Change in deferred tax 4.151 12.899

-1.029 -37 Adjustment regarding prior years -545 -946

10.454 5.472 10.548 15.932

The current income tax for the financial year is computed on the basis of a tax rate of 22%.

For foreign enterprises, the current tax rate in the country in question is used.

Effective tax rate:

22,0% 22,0% Current tax tax 22,0% 22,0%

4,9% -16,8% Profit/loss of group enterprises 0,0% 0,0%

Non-taxable income and

-7,7%

0,0%

non-taxable expenses etc.*

3,1%

-6,6%

Difference between Danish and

0,0%

foreign tax rates

1,1%

0,4%

-1,8% 0,0% Adjustment regarding prior years -0,3% -0,9%

17,4% 5,2% 25,9% 14,9%

* The effective tac rate in 2021 is affected of recived tax-free interest of 22m.

14. Dividend

On 30.06.2022, 3C RETAIL A/S distributed DKK 23m in ordinary dividend to the shareholders.

The Board of Directors proposes that DKK 34,5m be distributed for the financial year 2022, which

amount will be paid to the shareholder immediately after the Company’s Annual General Meeting,

provided that the proposal by the Board of Directors is adopted at the Annual General Meeting.

Since the distribution of dividend is conditional upon the adoption by the Annual General

Meeting, this has not been recognised.

Parent Group

3C RETAIL A/S

Notes

Licences

Goodwill

and software

DKK'000

15. Intangible assets

Cost at 01.01.2022 15.000 112.475

Additions 0 12.561

Cost at 31.12.2022 15.000 125.036

Amortisatíon and impairment losses at 01.01.2022 0 106.793

Amortisation for the year 0 4.182

Amortisation and impairment losses at 31.12.2022 0 110.975

Carrying amount at 31.12.2022 15.000 14.061

Cost at 01.01.2021 15.000 110.375

Additions 0 2.100

Cost at 31.12.2021 15.000 112.475

Amortisatíon and impairment losses at 01.01.2021 0 102.853

Amortisation for the year 0 3.940

Amortisation and impairment losses at 31.12.2021 0 106.793

Carrying amount at 31.12.2021 15.000 5.682

Parent

3C RETAIL A/S

Notes

Licences

Goodwill

and software

DKK'000

15. Intangible assets

Cost at 01.01.2022 62.362 142.457

Foreign currency translation adjustments -3.042 -22

Additions 0 13.016

Cost at 31.12.2022 59.320 155.451

Amortisation and impairment losses at 01.01.2022 0 126.596

Foreign currency translation adjustments 0 -22

Amortisation for the year 0 4.620

Amortisation and impairment losses at

31.12.2022

Carrying amount at 31.12.2022 59.320 24.257

Cost at 01.01.2021 62.362 130.241

Foreign currency translation adjustments 0 23

Additions 0 12.193

Cost at 31.12.2021 62.362 142.457

Amortisation and impairment losses at 01.01.2021 0 122.493

Foreign currency translation adjustments 0 15

Amortisation for the year 0 4.088

Amortisation and impairment losses at

31.12.2021

Carrying amount at 31.12.2021 62.362 15.861

0 126.596

Group

0 131.194

3C RETAIL A/S

Notes

15. Intangible assets (continued)

Goodwill

Goodwill arising from business acquisitions etc is allocated at the time of acquisition to the cash-

generating units, which are expected to achieve financial benefits from the business combination.

The carrying amount of goodwill is allocated as follows by cash-generating unit:

2022

2021

DKK'000

Thorn Svenska AB 19.928 21.639

Thorn Norge AS 24.392 25.723

3C RETAIL A/S 15.000 15.000

59.320 62.362

Goodwill is tested at least once a year for impairment and more frequently in the event of indications

of impairment. The annual impairment test is made at 31.12.

The recoverable amount for the individual cash-generating units to which the goodwill amounts have

been allocated, are stated based on computations of the units' value in use.

The cash flows disclosed in the 2023 budget and the forecast for the next four years plus the terminal

value based on forecast year 5 have been used to calculate the cash-generating units' value in use.

The terminal value growth rate is zero.

The discount rates determined reflect the market assessments of the time value of money expressed

as a riskfree interest rate and the specific risks attached to each cash-generating unit. The discount

rate is determined on an “after tax" basis based on assessed Weighted Average Cost of Capital

(WACC). A pre-tax discount rate of 8,0% - 8,4% has been used (2021: 4,3%).

The recoverable amount of the cash-generating units at the balance sheet date exceeds the carrying

amount by over 100%.

3C RETAIL A/S

Notes

Other

Right-of-

Leasehold

Rental

fixtures

use

improve-

assets

etc

assets*

ments

DKK'000

16. Property, plant and equipment

Cost at 01.01.2022 3.619 55.018 67.416 5.359

Foreign currency translation adjustments -79 -12 0 -42

Additions 11.024 651 4.654 1.095

Disposals -776 -2.416 -3.251 0

Cost at 31.12.2022 13.788 53.241 68.819 6.412

Depreciation and impairment losses at 01.01.2022 2.283 47.556 27.473 5.359

Foreign currency translation adjustments -79 -12 0 -42

Depreciation for the year 638 882 8.988 119

Reversal of depreciation of assets sold -408 -1.570 -1.309 0

Depreciation and impairment losses at 31.12.2022 2.434 46.856 35.152 5.436

Carrying amounts at 31.12.2022 11.354 6.385 33.667 976

Cost at 01.01.2021 3.683 54.875 82.129 5.315

Foreign currency translation adjustments -19 9 0 44

Additions 808 410 0 0

Disposals -853 -276 -14.713 0

Cost at 31.12.2021 3.619 55.018 67.416 5.359

Depreciation and impairment losses at 01.01.2021 2.434 46.704 22.085 5.311

Foreign currency translation adjustments -18 10 0 44

Depreciation for the year 299 985 10.293 4

Reversal of depreciation of assets sold -432 -143 -4.905 0

Depreciation and impairment losses at 31.12.2021 2.283 47.556 27.473 5.359

Carrying amounts at 31.12.2021 1.336 7.462 39.943 0

* Right-of-use assets consists mainly of properties

Parent

3C RETAIL A/S

Notes

Other

Right-of-

Leasehold

Rental

fixtures

use

improve-

assets

etc

assets*

ments

DKK'000

16. Property, plant and equipment

Cost at 01.01.2022 37.042 56.791 84.370 6.148

Foreign currency translation adjustments -210 -151 -2 -82

Additions 5.338 651 4.654 1.095

Disposals -7.708 -2.416 -3.251 -34

Cost at 31.12.2022 34.462 54.875 85.771 7.127

Depreciation and impairment losses at 01.01.2022 18.236 49.329 32.549 5.765

Foreign currency translation adjustments -189 -151 -49 -70

Depreciation for the year 3.527 882 11.017 267

Reversal of depreciation of assets sold -4.220 -1.570 -1.311 0

Depreciation and impairment losses at 31.12.2022 17.354 48.490 42.206 5.962

Carrying amounts at 31.12.2022 17.108 6.385 43.565 1.165

Cost at 01.01.2021 39.427 56.683 98.935 6.061

Foreign currency translation adjustments 14 -25 148 87

Additions 7.648 409 0 0

Disposals -10.047 -276 -14.713 0

Cost at 31.12.2021 37.042 56.791 84.370 6.148

Depreciation and impairment losses at 01.01.2021 20.991 48.499 25.285 5.542

Foreign currency translation adjustments 20 -26 -103 61

Depreciation for the year 3.810 999 12.272 162

Reversal of depreciation of assets sold -6.585 -143 -4.905 0

Depreciation and impairment losses at 31.12.2021 18.236 49.329 32.549 5.765

Carrying amounts at 31.12.2021 18.806 7.462 51.821 383

* Right-of-use assets consists mainly of properties

Group

3C RETAIL A/S

Notes

Receivables

from

group

enterprises

Deposits

DKK'000

17. Financial assets

Value at 01.01.2022 121.520 0

Additions 9.387 159

Disposals -28.925 0

Value at 31.12.2022 101.982 159

Value at 01.01.2021 121.517 36

Additions 8.316 0

Disposals -8.313 -36

121.520 0

Negative net assets in subsidiaries* -20.500 0

Value at 31.12.2021 101.020 0

Receivables

from

group

Other

enterprises

receivables

Deposits

DKK'000

Value at 01.01.2022 121.520 66.836 0

Additions 9.387 873 159

Disposals -28.925 -67.709 0

Value at 31.12.2022 101.982 0 159

Value at 01.01.2021 121.517 116.942 36

Additions 8.316 3.310 0

Disposals -8.313 -53.416 -36

121.520 66.836 0

Negative net assets in subsidiaries* -20.500 0 0

Value at 31.12.2021 101.020 66.836 0

* Recieivables from group enterprises has been written down because of negative net assets in subsidiaries.

Based on an individual assesment there has not been made any write down regarding expected loss on other receivables

Group

Parent

3C RETAIL A/S

Notes

2021

2022

DKK'000

18. Investments in subsidiaries

702.682 702.682 Cost at 01.01.

0 102.500 Additions inclusive of capital increase

702.682 805.182 Cost at 31.12.

429.880 445.717 Impairment losses at 01.01.

15.837 46.143 Impairment losses for the year

445.717 491.860 Impairment losses at 31.12.

256.965 313.322

88.556 0 Negative net assets in subsidiaries

345.521 313.322 Carrying amount at 31.12.

The impairment loss and disposals is due to loss-making aktivities in VÆRSGO A/S (2021)

and dividend from 3C Ejendomme ApS (2022). The impairment is made corresponding to the Equity

of VÆRSGO A/S and 3C Ejendomme ApS, as management has assessed this to be a fair estimated of

the fair value.

The subsidiaries are:

Equity interest*

Registered

2022

2021

office

Activity

D:E:R A/S Denmark 100 100 Sale and lease-out of durable consumer

goods in Denmark and cash lending

Thorn Sweden Holdings AB Sweden 100 100 Holding company

(Thorn Svenska AB) Sweden 100 100 Sale and lease-out of durable consumer

goods in Sweden and cash lending

Thorn Norway Holdings AS Norway 100 100 Holding company

(Thorn Norge AS) Norway 100 100 Sale and lease-out of durable consumer

goods in Norway and cash lending

Thorn Norge Finans AS Norway 100 100 Cash lending

3C Ejendomme ApS Denmark 100 100 Holding company

(3C Ejendomme I ApS) Denmark 100 100 Holding company

VÆRSGO A/S Denmark 100 100 Retail trade

Føniks Inkasso A/S Denmark 100 100 Inkasso company

*Equity interest and voting share are complete equivalents

Parent

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

19. Inventories

14.102 16.284 Goods for resale 16.450 14.458

14.102 16.284 16.450 14.458

20. Receivables measured at

amortised cost

570.719 474.832 Carrying amount of receivables and loans 1.392.396 1.606.379

570.719 474.832 1.392.396 1.606.379

Parent Group

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

21. Cash

1.340 2.119 Cash and bank deposits 6.718 5.899

1.340 2.119 6.718 5.899

The Group's cash primarily consists of deposits with reputable banks. No particular credit risks

are considered to be related to such cash. The bank deposits carry interest at floating rates.

The Group have total undrawn short term credit facilities of DKK 217.253k (2021: DKK 64.710k).

The Parent have total undrawn short term credit facilities of DKK 205.814k (2021: DKK 57.162k).

22. Contributed capital

The Company’s share capital amounts to DKK 500,000 divided into shares of DKK 1,000 or multiples

thereof. The share capital is not divided into classes. There have not been any changes in share capital in the

past five years.

Parent Group

3C RETAIL A/S

Notes

Recognised in

Deferred

Recognised

other

Deferred

tax

Other

in profit

comprehen-

tax

01.01.

adjustments*

and loss

sive income

31.12.

DKK'000

23. Deferred tax

2022 - Group

Intangible assets 788 -67 -931 0 -210

Property, plant and equipment 5.865 -19 -4.404 0 1.442

Receivables -25.170 -103 -4.376 0 -29.649

Liabilities -15.276 -256 15.688 0 156

Tax losses -154.638 6.768 -2.309 0 -150.179

-188.431 5.840 4.151 0 -178.440

2021 – Group

Intangible assets 1.655 0 -867 0 788

Property, plant and equipment 9.946 -184 -3.897 0 5.865

Receivables -98.334 5.144 68.020 0 -25.170

Liabilities -16.276 27 973 0 -15.276

Tax losses -118.931 15.623 -51.330 0 -154.638

-221.940 20.610 12.899 0 -188.431

2022 - Parent

Intangible assets 788 0 -997 0 -209

Property, plant and equipment 8.981 -38 -3.722 0 5.221

Receivables -19.862 0 -5.598 0 -25.460

Liabilities -15.746 0 15.586 0 -160

Tax losses -86.558 11.376 240 0 -74.942

-112.397 11.338 5.509 0 -95.550

2021 - Parent

Intangible assets 1.655 0 -867 0 788

Property, plant and equipment 11.597 -54 -2.562 0 8.981

Receivables -64.550 0 44.688 0 -19.862

Liabilities -16.477 0 731 0 -15.746

Tax losses -65.058 9.007 -30.507 0 -86.558

-132.833 8.953 11.483 0 -112.397

* Other adjustments relating to tax losses reimbursement from joint taxation and exhange rate adjustments.

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

23. Deferred tax (continued)

Deferred tax is recognised as follows in the

balance sheet:

112.397 95.550 Deferred tax assets 185.352 197.965

0 0 Deferred tax liabilities 6.912 9.534

-112.397 -95.550 -178.440 -188.431

24. Other provisions

0 0 Pension obligations at 01.01 9.940 9.793

0 0 Foreign currency translation adjustment -864 -185

0 0 Provisions for the year 1.606 332

0 0 Pension obligations at 31.12 10.682 9.940

25. Bank loans

1.121.768 885.038 Bank loans 891.228 1.135.691

1.121.768 885.038 891.228 1.135.691

Payables are recognised as follows in the

0 815.539 Long-term payables 815.539 0

1.121.768 69.499 Short-term payables 75.689 1.135.691

1.121.768 885.038 891.228 1.135.691

The amounts are payable as follows:

1.121.768 69.499 Within one year of the balanc sheet date 75.689 1.135.691

0 815.539 Within one and two years of the balance 815.539 0

0 0 Within two and three years of the balance 0 0

1.121.768 885.038 891.228 1.135.691

Parent Group

At 31.12.2022, the Group has a tax asset of DKK 5m (2021: DKK 5m) composed of losses allowed for carryforward and

temporary differences that have not been recognised because it is uncertain whether they can be used within a period of

three to five years. The tax loss may be carried forward indefinitely, however, the annual use thereof is restricted by the

rules applicable for the use of losses.

3C RETAIL A/S

Notes

Fixed or

Amortised

Nominal

floating

cost

value

Fair value

Currency

Maturity

interest rate

DKK'000

25. Bank loans(continued)

The payables can be specified as follows:

Bank loan DKK 2024 Variable 205.191 205.191 205.191

Bank loan SEK 2024 Variable 378.806 378.806 378.806

Bank loan NOK 2024 Variable 307.231 307.231 307.231

31.12.2022 - group 891.228 891.228 891.228

Bank loan DKK 2022 Variable 353.152 353.152 353.152

Bank loan SEK 2022 Variable 398.043 398.043 398.043

Bank loan NOK 2022 Variable 384.496 384.496 384.496

31.12.2021 - group 1.135.691 1.135.691 1.135.691

Bank loan DKK 2024 Variable 204.891 204.891 204.891

Bank loan SEK 2024 Variable 376.042 376.042 376.042

Bank loan NOK 2024 Variable 304.105 304.105 304.105

31.12.2022 - parent 885.038 885.038 885.038

Bank loan DKK 2022 Variable 343.729 343.729 343.729

Bank loan SEK 2022 Variable 396.201 396.201 396.201

Bank loan NOK 2022 Variable 381.838 381.838 381.838

31.12.2021 - parent 1.121.768 1.121.768 1.121.768

3C RETAIL A/S

Notes

Additions on

Changes in

Fair value

01.01

Cashflows

acquisitions

foreign exchange

rates

31.12

DKK'000

25. Bank loans (continued)

Bank loan 1.135.691 -195.353 0 -49.110 0 891.228

2022 - Group 1.135.691 -195.353 0 -49.110 0 891.228

Bank loan 2.515.358 -1.391.568 0 11.901 0 1.135.691

2021 -Group 2.515.358 -1.391.568 0 11.901 0 1.135.691

Bank loan 1.121.768 -187.988 0 -48.742 0 885.038

2022 - Parent 1.121.768 -187.988 0 -48.742 0 885.038

Bank loan 2.507.507 -1.397.399 0 11.660 0 1.121.768

2021 - Parent 2.507.507 -1.397.399 0 11.660 0 1.121.768

Non-cash changes

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

26. Trade payables

9.641

8.446

Trade payables

13.548

13.939

9.641 8.446 13.548 13.939

The carrying amount is equivalent to the fair value of the liabilities.

27. Lease liability

Maturity of lease liability

8.839 7.790 Within 1 year 9.951 10.947

27.836 29.613 Between 1 and 5 years 38.810 36.808

7.178 480 More than 5 years 480 9.563

Total non-discounted lease

43.853

37.883

liability at 31.12.2022

49.241

57.318

42.063 35.550 Lease liability recognised in the balance sheet 46.384 54.739

8.396 6.974 Short-term 8.918 10.237

33.667 28.576 Long-term 37.466 44.502

Amounts recognised in the income statement

1.463 1.035 Interest expenses related to the lease liability 1.340 1.814

Variable lease payments not recognised within

the lease liability

Expenses related to short-term leases

(less than 12 months)

10.162 9.207 Total cash outflow regarding leases 11.353 12.143

1.295 744 Expenses related to low-value leases 804 1.326

28. Other payables

Long-term

8.327 8.594 Holiday pay and holiday pay obligation 8.594 8.327

8.327 8.594 8.594 8.327

Short-term

3.548 2.924 Holiday pay and holiday pay obligation 3.784 4.604

33.523 0 VAT 5.116 38.504

30.390 12.546 Other payables 25.573 43.256

67.461 15.470 34.473 86.364

The carrying amount is equivalent to the fair value of the liabilities.

Parent Group

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

29. Assets charged and collateral

270.504

235.806

271.214

282.788

383

401

30. Contingent liabilities

17.902

3.064

To secure Bank loans Nordea has

mortgage in other receivables

carrying amount of other receivables

66.836

20.561

6.190

The maximum limit of the recourse

guarantee is

The group has a pending legal case regarding

VAT in Norway, the outcome of which may

affect the group positively or negatively.

For the years 2023-2027, a license agreement

has been entered regarding software

2.904

Within one year

2.904

10.113

Between one and five years

10.113

After more than five years

13.017

The Parent has issued a letter of subordination

on receivables from subsidiaries for such

subsidiaries' bank loans (carrying amount). The

receivables amount to DKK 411m.

The Company participates in a Danish

joint taxation arrangement with 3C

Holding 2021 ApS serving as the

administration company and is therefore

jointly and severally liable with its

jointly taxed companies for the total

income tax and for obligations, if any, to

withhold tax on interest, royalties and

dividends for the jointly taxed

companies.

17.629

The parent and group has issued guarantees to

third parties in entering into leases, business

agreements, pensionsobligations etc.

The Parent has issued a recourse guarantee for

group enterprises’ bank loans. The bank loans

of the relevant enterprises amount to

The total future minimum payments

under the agreement are composed as

follows:

Parent Group

Bank loans of DKK 901m have been secured

by pledge of shares in group enterprise

To secure payment of taxes, cash and cash

equivalent have been deposited

887 2.0199.940 10.957

028.110 0

3C RETAIL A/S

Notes

31. Changes in liabilities arising from financing activities

Financing

Disposal of

Other

01.01

Cashflows

subsidary

changes

31.12

DKK'000

Lease liability -54.739 -8.355 0 0 -46.384

Loans from related parties -440.633 -9.470 0 0 -431.163

Bank loans -1.121.768 -236.730 0 0 -885.038

31.12.2022 – Group -1.617.140 -254.555 0 0 -1.362.585

Lease liability -74.799 -10.252 0 9.808 -54.739

Loans from related parties -326.545 114.088 0 0 -440.633

Bank loans -2.507.507 -1.385.739 0 0 -1.121.768

31.12.2021 – Group -2.908.851 -1.281.903 0 9.808 -1.617.140

Lease liability -42.063 -6.513 0 0 -35.550

Loans from related parties -566.277 -53.164 0 0 -513.113

Bank loans -1.121.768 -236.730 0 0 -885.038

31.12.2022 – Parent -1.730.108 -296.407 0 0 -1.433.701

Lease liability -60.615 -8.744 0 9.808 -42.063

Loans from related parties -370.164 196.113 0 0 -566.277

Bank loans -2.507.507 -1.385.739 0 0 -1.121.768

31.12.2021 – Parent -2.938.286 -1.198.370 0 9.808 -1.730.108

Non-Cash changes

3C RETAIL A/S

Notes

2021

2022

2021

DKK'000

32. Working capital changes

1.440 -2.182 Increase/decrease in inventories 2.289 14.953

740.262 114.601 Increase/decrease in receivables 231.507 1.061.886

Increase/decrease in trade payables and other

payables

755.626 59.178 171.549 1.068.862

33. Cash and cash equivalents

1.340 2.119 Cash 6.718 5.899

0 0 Bank loans (short-term) -6.190 -13.923

1.340 2.119 528 -8.024

0 0 Cash equivalents - assets held for sale 0 -6.191

1.340 2.119 528 -14.215

34. Financial risks and financial

instruments

570.719 474.832 Receivables measured at amortised cost* 1.392.396 1.606.379

1.647.084 1.523.014 Receivables to group enterprises 803.797 805.334

16.332 9.915 Other receivables 17.897 95.714

Financial assets measured at

2.234.135

2.007.761

amortised cost

2.214.090

2.507.427

The fair value of receivebles measured at amortised cost for the groups is DKK 1.515.042k (2021: DKK 1.744.254k).

The fair value of receivebles measured at amortised cost for the parent is DKK 504.774k (2021: DKK 607.429k).

1.121.768 885.038 Bank loans 891.228 1.135.691

383.780 347.896 Subordinated loan from group enterprises 347.896 383.780

9.641 8.446 Trade payables 13.548 13.939

42.063 35.550 Lease liabilities 46.384 54.739

182.497 165.217 Payables from group enterprises 83.267 56.853

75.788 24.064 Other payables 43.067 94.691

Financial liabillities measured at

1.815.537

1.466.211

amortised cost

1.425.390

1.739.693

Parent Group

13.924 -53.241 -62.247 -7.977

3C RETAIL A/S 55

Notes

34. Financial risks and financial instruments (continued)

Financial risk management policy

Due to its operations, the 3C RETAIL A/S Group assumes a number of credit, market and operational risks.

Consequently, assuming risk is a key element of the Group’s business foundation.

Management lays down and approves the overall risk policy and the related limits for the size of the risk

considered acceptable. The Executive Board lays down the operating policies for risk management and del-

egates some of the limits

approved to the rest of the organisation. Management of the individual subsidiaries

is responsible for managing business risks and the related internal control.

Objective and strategy

Calculated risks are undertaken to achieve the Group’s objectives. The

nature of the risks related to each

business area varies considerably, but overall, the risk parameters may be broken down into three

main

types: Business risk, financial risk and operational risk.

Business risks

The Group attaches weight to identifying, measuring and managing business risks. For this purpose, direc-

tions are drawn up for each business unit.

Credit policy

Management has adopted a credit policy describing the positions and directions applicable to the granting of

loans, credits, guarantees as well as other credit risks. Each decision regarding a credit is based on an as-

sessment of the customer and their finances. It is group policy to ensure to the extent possible that the credit

risk related to a customer reasonably correlates with such customer’s income etc and that the Group is not

significantly exposed to single customers.

Market risks

Group Management has defined frameworks for risk exposure to interest rate, foreign exchange and equity

markets and for regular reporting thereon to Management.

Market risks are the risks of losses because of changes in the market value of assets and liabilities. Market

value will change when changes occur in the market conditions, such as changes in market interest rates,

equity prices and exchange rates. The Group undertakes different types of market risks through trading and

placements and as part of current liquidity management. The Group uses derivative financial instruments on

a regular basis to manage and reduce market risks. The purpose of managing financial risks is to balance the

aggregate financial risk on assets and liabilities in order to obtain a satisfactory weighting of yield and risk.

Attempts are made to achieve the risk management objective through risk management policies that lay

down directions for exposure to different types of financial risks. The investment and risk management pol-

icy for the individual companies of the Group has been adjusted to the conditions, under which the compa-

nies operate.

3C RETAIL A/S 56

Notes

34. Financial risks and financial instruments (continued)

The Group’s assets and liabilities are exposed to market risks such as interest rate risks, currency risks and

price risks.

Financial risks

Cash flow interest rate risks

Cash flow interest rate risks are the risks of losses due to changes in future cash flows that may affect profit

or loss at a future point in time.

nterest rate risks

Interest rate risk reflects the risk of losses arising from a general increase in market interest rates by one

percentage point. A duration model is used to determine the interest rate risk related to fixedinterest receiv-

ables and liabilities.

Currency risks

Currency risk is the risk of losses because of changes in exchange rates. The Group manages currency risks

by hedging its net assets with bank debt in corresponding currency. The net assets are monitored on an on-

going basis. The effect of any mismatch is recognized in other comprehensive income.

Credit risks

Credit risks are a natural and significant part of engaging in lending. Credit risk reflects the risk of losses

that may arise from a customer’s inability to repay the loan or credit upon maturity.

Liquidity risks

Liquidity risk is the risk that the liquidity required will not be available to honour financial obligations. To

handle the liquidity risk, the Company is in ongoing dialogue with the main funding sources about the man-

agement of interest rate risks and liquidity, and liquidity is monitored on a monthly basis, with shortterm

and longterm liquidity needs being assessed against the financial resources.

Operational risks

Operational risks may arise from human error, technical error or as a result of external events that may

cause substantial unforeseen expenses or interruption of activities. Operational risks may lead to direct or

indirect financial losses for the Group. Consequently, considerable resources are spent on reducing the oper-

ational risks. The Group has a number of control procedures in the form of work routines, business process-

es and reconciliation processes that are embedded both locally and centrally in the organisation. These pro-

cedures and the organisational segregation of functions between the executing and controlling departments

help minimise the operational risks. The Group continuously works on improving the operational security,

which includes ensuring the continued operation of the business areas and restoration in the event of lengthy

breakdowns. The Group attempts to reduce operational risks through ongoing training of staff and invest-

ments in new technology so as to be at a level that matches the requirements and expectations of customers

and bus

ness partners.

3C RETAIL A/S

Notes

34. Financial risks and financial instruments (continued)

Currency risks

The Group does business in SEK and NOK and is therefore exposed to these currencies.

Furthermore, the Group has obtained loans denominated in EUR, SEK and NOK. The net positions are regularly monitored,

and any need for hedging is assessed based on the overall policy.

Cash and

Unhedged

cash

Net

Hedged

net

equivalents

Receivables

Payables

position

thereof

position

DKK'000

EUR 1.903 756 4 2.655 0 2.655

SEK 962 424.748 405.852 19.858 0 19.858

NOK 3.588 340.267 337.088 6.767 0 6.767

31.12.2022 - Group 6.453 765.771 742.944 29.280 0 29.280

EUR 1.165 259 3 1.421 0 1.421

SEK 739 451.081 425.053 26.767 0 26.767

NOK 3.698 401.582 414.298 -9.018 0 -9.018

31.12.2021 - Group 5.602 852.922 839.354 19.170 0 19.170

EUR 1.903 756 4 2.655 0 2.655

SEK 56 392.751 376.042 16.765 0 16.765

NOK 49 323.330 379.454 -56.075 0 -56.075

31.12.2022 - Parent 2.008 716.837 755.500 -36.655 0 -36.655

EUR 1.165 259 3 1.421 0 1.421

SEK 7 419.809 396.201 23.615 0 23.615

NOK 10 373.754 457.182 -83.418 0 -83.418

31.12.2021 - Parent 1.182 793.822 853.386 -58.382 0 -58.382

3C RETAIL A/S

Notes

34. Financial risks and financial instruments (continued)

Sensitivity relating to currency

The Group’s most important currency risks relate to EUR, SEK and NOK. The table below shows the effect of

varying exchange rates on equity and profit/loss for the year, respectively. The levels of variation deemed

relevant by Management have been used, taking into consideration each currency and monetary cooperation.

Effect on

Unhedged

Effect on

other

net

Effect on

profit/loss for

comprehen-

Sensitivity

position

equity

the year

sive income

Closing rate

rate

DKK'000

EUR 743,65 745,00 2.655 4 4 0

SEK 66,86 70,00 19.858 727 0 727

NOK 70,73 70,00 6.767 -54 0 -54

Total effect 2022 - Group 677 4 673

EUR 743,65 745,00 1.421 2 2 0

SEK 72,60 70,00 26.767 -748 0 -748

NOK 74,59 70,00 -9.018 433 0 433

Total effect 2021 - Group -313 2 -315

EUR 743,65 745,00 2.655 4 4 0

SEK 66,86 70,00 16.765 614 614 0

NOK 70,73 70,00 -56.075 451 451 0

Total effect 2022 – Parent 1.069 1.069 0

EUR 743,65 745,00 1.421 2 2 0

SEK 72,60 70,00 23.615 -660 -660 0

NOK 74,59 70,00 -83.418 4.004 4.004 0

Total effect 2021 – Parent 3.346 3.346 0

3C RETAIL A/S

Notes

34. Financial risks and financial instruments (continued)

Interest rate risks

Between

After more

Within

one and

than five

Fixed-

one year

five years

years

Total

rate thereof

DKK'000

Receivables 1.075.677 846.677 273.839 2.196.193 1.392.396

Bank deposits 6.718 0 0 6.718 0

Payables from group enterprises -83.267 0 0 -83.267 0

Subordinated loan from group enterprises* -347.896 0 0 -347.896 -347.896

Lease liabilities -46.384 0 0 -46.384 0

Bank loans -891.228 0 0 -891.228 0

31.12.2022 – Group -286.380 846.677 273.839 834.136 1.044.500

Receivables 1.138.137 1.021.045 319.367 2.478.549 1.673.215

Bank deposits 5.899 0 0 5.899 0

Payables from group enterprises -56.853 0 0 -56.853 0

Subordinated loan from group enterprises* -383.780 0 0 -383.780 -383.780

Lease liabilities -54.739 0 0 -54.739 0

Bank loans -1.135.691 0 0 -1.135.691 0

31.12.2021 – Group -487.027 1.021.045 319.367 853.385 1.289.435

Receivables 1.637.727 242.533 117.586 1.997.846 474.832

Bank deposits 2.119 0 0 2.119 0

Payables from group enterprises -165.217 0 0 -165.217 0

Subordinated loan from group enterprises* -347.896 0 0 -347.896 -347.896

Lease liabilities -35.550 0 0 -35.550 0

Bank loans -885.038 0 0 -885.038 0

31.12.2022 – Parent 206.145 242.533 117.586 566.264 126.936

Receivables 1.782.410 338.572 96.821 2.217.803 570.719

Bank deposits 1.340 0 0 1.340 0

Payables from group enterprises -182.497 0 0 -182.497 0

Subordinated loan from group enterprises* -383.780 0 0 -383.780 -383.780

Lease liabilities -42.063 0 0 -42.063 0

Bank loans -1.121.768 0 0 -1.121.768 0

31.12.2021 – Parent 53.642 338.572 96.821 489.035 186.939

* The Subordinated loan has no special terms and resigns for all other creditors

The Group has a considerable amount of interestbearing financial assets and liabilities and is consequently exposed to interest rate risks. The following contractual

repricing or maturity dates can be stated for the Group's financial assets and liabilities, depending on which date is first and the amount of the interestbearing assets

and liabilities that carry fixed interest rates. Floatingrate loans are considered to have a repricing date within one year. Insofar as interest rate swaps have been used,

allowance has been made for the effect thereof.

3C RETAIL A/S

Notes

34. Financial risks and financial instruments (continued)

Interest rate risks (continued)

Sensitivity relating to interest rates

An increase by 1 percentage point per year on the interest rate level at the balance sheet date would affect the

Group’s profit and equity by DKK -1.641k (2021: DKK -3.401k), whereas the Parent’s profit and equity

would be affected by DKK 3.427k (2021: DKK 2.356k). An equivalent decline would have the same

positive consequences.

3C RETAIL A/S

Notes

34. Financial risks and financial instruments (continued)

Liquidity risks

The time of maturity of financial liabilities exclusive of interest is specified below.

After more

Within one

Between one

than

year

and five years

five years

Total

DKK'000

Bank loans -75.689 -815.539 0 -891.228

Trade payables -13.548 0 0 -13.548

Income tax payable -6.454 0 0 -6.454

Payables from group enterprises -83.267 0 0 -83.267

Lease liabilities -8.918 -37.007 -459 -46.384

Subordinated loan from group enterprises* -347.896 0 0 -347.896

Other payables -34.473 -458 -8.136 -43.067

31.12.2022 - Group -570.245 -853.004 -8.595 -1.431.844

Bank loans -69.499 -815.539 0 -885.038

Trade payables -8.446 0 0 -8.446

Payables from group enterprises -165.217 0 0 -165.217

Lease liabilities -6.974 -28.117 -459 -35.550

Subordinated loan from group enterprises* -347.896 0 0 -347.896

Other payables -15.470 -458 -8.136 -24.064

31.12.2022 – Parent -613.502 -844.114 -8.595 -1.466.211

Bank loans -1.135.691 0 0 -1.135.691

Trade payables -13.939 0 0 -13.939

Income tax payable -3.935 0 0 -3.935

Payables from group enterprises -56.853 0 0 -56.853

Lease liabilities -10.237 -34.037 -10.465 -54.739

Subordinated loan from group enterprises* -383.780 0 0 -383.780

Other payables -86.364 -451 -7.876 -94.691

31.12.2021 - Group -1.690.799 -34.488 -18.341 -1.743.628

Bank loans -1.121.768 0 0 -1.121.768

Trade payables -9.641 0 0 -9.641

Payables from group enterprises -182.497 0 0 -182.497

Lease liabilities -8.396 -25.601 -8.066 -42.063

Subordinated loan from group enterprises* -383.780 0 0 -383.780

Other payables -67.461 -451 -7.876 -75.788

31.12.2021 – Parent -1.773.543 -26.052 -15.942 -1.815.537

* The Subordinated loan has no special terms and resigns for all other creditors

3C RETAIL A/S

Notes

34. Financial risks and financial instruments (continued)

Liquidity risks (continued)

The Group's and the Parent's cash reserves consist of cash funds and undrawn credit facilities.

2021

2022

2021

DKK'000

The cash reserves are composed as follows:

1.340 2.119 Cash 6.718 5.899

57.162 205.814 Undrawn short term credit facilities 217.253 64.710

58.502 207.933 223.971 70.609

The Parent deploys the entire credit limit to the subsidiaries as necessary.

Optimisation of capital structure

Financial gearing

The financial gearing reflected in the debt multiple may be calculated as follows at the balance sheet date:

2022 2021

DKK'000 DKK'000

EBITDA* 83.602 150.796

Net interest-bearing debt -825.542 -845.058

Debt multiple -9,87 -5,60

*EBITDA and net interest bearing debt are defined in note 1.

Parent Group

The Group's capital structure consists of debt, comprising financial liabilities in the form of bank loans, income tax

payable, cash, interestbearing receivables and equity, including undistributable and distributable reserves as well as

retained earnings.

Management regularly considers whether the Group's capital structure is in accordance with the Company's and

the shareholder’s interests. The overall objective is to ensure a capital structure that supports longterm financial

growth and at the same time maximises the yield to the Group's stakeholders by optimising the debt-to-equity

ratio. The Group's overall strategy is consistent with that of last year.

3C RETAIL A/S 63

Notes

34. Financial risks and financial instruments (continued)

Credit risks

The Group’s primary credit risk relates to receivables measured at amortised cost. The Group primarily has

private customers in Denmark, Sweden and Norway, where no collateral is required. Instead, the customers

are subjected to a credit assessment procedure prior to any lending. This credit assessment procedure sets a

maximum loan amount based on the customer’s income conditions and disposable amount etc. Furthermore,

attempts are made to minimise the total credit risk by having a limited exposure per commitment.

Total loss and changes in impairment for the Group DKK 71.081 (2021: DKK 87.825)

Total loss and changes in impairment for parent DKK 2.390 (2021: DKK -6.687)

The general economic development in 2022 with rising interest rates and inflation, has not meant that the

group has observed increased losses, which is why no increased provisions for losses have been made.

Impairment model

Expected Stage 1 and Stage 2 credit losses are calculated using an impairment model. The impairment mod-

el is based on Probability of Default (PD), expected Exposure at Default (EAD) and expected Loss Given

Default (LGD). The model incorporates historical observations for each input. Movement from stage 1 to

stage 2 is determined by the debtor’s behavior eg. missed payment.

Determining PD uses observed default events over a 12-month period and then these default events are con-

verted into an estimated probability applicable for a given point in time (12-month PD). Lifetime PD is cal-

culated using historical, observed default events.

To determine EAD, the expected change in the exposure after the balance sheet date is used, including debt

servicing and further credit facility drawdowns. Determining EAD is based on historical information about

expected changes in exposures over the lives of the loans within each credit line.

Expected LGD is estimated based on the difference between contractual cash flows and cash flows which

the Company expects to receive after default. LGD is determined based on contractual selling prices of de-

faulted claims or by discounting expected future cash flows from defaulted claims to present value. Present

value is calculated by discounting expected future cash flows based on the originally established credit-

adjusted effective interest rate.

3C RETAIL A/S

Notes

34. Financial risks and financial instruments (continued)

Receivables measured at amortised cost

Stage 1

Stage 2

Stage 3

Total

DKK'000

2022

Gross loan 01.01.2022 1.148.446 233.967 704.859 2.087.272

Change of the year* -198.142 -22.259 -53.478 -273.879

Gross loan 31.12.2022 950.304 211.708 651.381 1.813.393

Impairment 01.01.2022 51.523 32.407 396.963 480.893

Change of the year* -5.563 -3.624 -50.709 -59.896

Impairment 31.12.2022 45.960 28.783 346.254 420.997

Net loan 01.01.2022 1.096.923 201.560 307.896 1.606.379

Change of the year -192.579 -18.635 -2.769 -213.983

Net loan 31.12.2022 904.344 182.925 305.127 1.392.396

Stage 1 Stage 2 Stage 3 Total

DKK'000

2021

Gross loan 01.01.2021 1.705.532 257.606 2.477.075 4.440.213

Change of the year* -557.086 -23.639 -1.772.216 -2.352.941

Gross loan 31.12.2021 1.148.446 233.967 704.859 2.087.272

Impairment 01.01.2021 100.253 46.408 1.620.342 1.767.003

Change of the year* -48.730 -14.001 -1.223.379 -1.286.110

Impairment 31.12.2021 51.523 32.407 396.963 480.893

Net loan 01.01.2021 1.605.279 211.198 856.733 2.673.210

Change of the year -508.356 -9.638 -548.837 -1.066.831

Net loan 31.12.2021 1.096.923 201.560 307.896 1.606.379

* Change of the year is affected by portfolio sale.

The Group’s maximum credit risk amounts to DKK 2.215m at 31.12.2022 (2021: DKK 2.508m).

Group

3C RETAIL A/S

Notes

34. Financial risks and financial instruments (continued)

Receivables measured at amortised cost (continued)

Stage 1

Stage 2

Stage 3

Total

DKK'000

2022

Gross loan 01.01.2022 383.816 36.804 392.831 813.451

Change of the year* -99.977 -8.247 -7.862 -116.086

Gross loan 31.12.2022 283.839 28.557 384.969 697.365

Impairment 01.01.2022 15.358 7.513 219.861 242.732

Change of the year* -5.375 -2.355 -12.469 -20.199

Impairment 31.12.2022 9.983 5.158 207.392 222.533

Net loan 01.01.2022 368.458 29.291 172.970 570.719

Change of the year -94.602 -5.892 4.607 -95.887

Net loan 31.12.2022 273.856 23.399 177.577 474.832

Stage 1 Stage 2 Stage 3 Total

DKK'000

2021

Gross loan 01.01.2021 797.129 56.660 1.651.411 2.505.200

Change of the year* -413.313 -19.856 -1.258.580 -1.691.749

Gross loan 31.12.2021 383.816 36.804 392.831 813.451

Impairment 01.01.2021 46.439 16.888 1.117.807 1.181.134

Change of the year* -31.081 -9.375 -897.946 -938.402

Impairment 31.12.2021 15.358 7.513 219.861 242.732

Net loan 01.01.2021 750.690 39.772 533.604 1.324.066

Change of the year -382.232 -10.481 -360.634 -753.347

Net loan 31.12.2021 368.458 29.291 172.970 570.719

* Change of the year is affected by portfolio sale.

The Parent’s maximum credit risk amounts to DKK 2.008m at 31.12.2022 (2021: DKK 2.234m).

Parent

3C RETAIL A/S

Notes

35. Discontinued operations

All remaining activities in the subsidiary VÆRSGO A/S has been discontinued in the start of 2022

Net assets held for sale can be specified as follows:

31.12.2022 31.12.2021

DKK'000

Goodwill 0 0

Property, plant and equipment 0 0

Financial assets 0 872

Tax assets 0 16.194

Inventories 0 4.281

Receivables 0 3.960

Other stocks and investments 0 102

Cash 0 1.459

Assets held for sale 0 26.868

Trade payables 0 5.477

Mortgage debt and bank loans 0 7.650

Payables to group enterprise 0 8.008

Provisions 0 1.072

Other payables 0 4.661

Liabilities related to assets held for sale 0 26.868

Net assets held for sale 0 0

3C RETAIL A/S

Notes

35. Discontinued operations (continued)

Profit/loss from discontinued operations can be specified as follows:

2022 2021

DKK'000 DKK'000

Revenue 0 34.389

Cost of sales 0 -26.753

Gross profit/loss 0 7.636

Other external expenses 0 -13.537

Staff costs 0 -10.428

Amortisation, depreciation and impairment losses 0 -308

Operating profit/loss 0 -16.637

Other financial income 0 4

Financial expenses 0 -3.671

Profit/loss before tax 0 -20.304

Tax on profit/loss for the year 0 4.467

Profit/loss for the year 0 -15.837

Distribution of profit for the year

Parent shareholders 0 -15.837

0 -15.837

During the financial year, the operation has affected the cash flow statement as follows:

Cash flows from operating activities 0 -18.561

Cash flows from investing activities 0 2.629

Cash flows from financing activities 0 18.730

0 2.798

3C RETAIL A/S

Notes

36. Related parties

Related parties with a controlling interest

The following related parties have a controlling interest in 3C RETAIL A/S:

Niels Thorborg, Odense, Denmark – ultimate owner

3C RETAIL Holding A/S, Odense, Denmark – principal shareholder

Subsidiaries

For a list of subsidiaries, refer to note 18.

Related party transactions

During the financial year, the Group and the Parent have had the following related party transactions:

Key

Other

management

Controlling

personnel

entities

parties

Total

DKK'000

2022

Purchase of goods 0 0 2.042 2.042

Sale of services 0 416 46.551 46.967

Purchase of services 0 91 8.509 8.600

Remuneration etc, refer to note 6 6.764 0 0 6.764

Financial income 0 29.961 13.006 42.967

Financial expenses 7 16.053 0 16.060

Sale of receivables measured at amortised cost 0 0 177.717 177.717

Receivables 0 660.743 143.054 803.797

Liabilities, including joint taxation contribution 83 430.730 433 431.246

Dividend 0 23.000 0 23.000

Sale of other receivables 0 0 67.709 67.709

Group

3C RETAIL A/S

Notes

Key

Other

management

Controlling

personnel

entities

parties

Total

DKK'000

36. Related parties (continued)

2021

Sale of goods 27 0 0 27

Purchase of goods 0 0 1.707 1.707

Sale of services 0 188 68.637 68.825

Purchase of services 0 130 9.734 9.864

Remuneration etc, refer to note 6 7.572 0 0 7.572

Financial income 0 24.194 15.522 39.716

Financial expenses 2 17.959 0 17.961

Sale of receivables measured at amortised cost 0 0 359.145 359.145

Receivables 0 654.977 150.357 805.334

Liabilities, including joint taxation contribution 154 440.363 270 440.787

Dividend 0 23.000 0 23.000

Sale of other receivables 0 0 48.005 48.005

Key

Other

Subsi-

management

Controlling

diaries

personnel

entities

parties

Total

DKK'000

2022

Sale of goods 38.386 0 0 0 38.386

Purchase of goods 4.174 0 0 2.042 6.216

Sale of services 42.525 0 416 20.272 63.213

Purchase of services 169 0 91 8.509 8.769

Remuneration etc, refer to note 6 0 4.062 0 0 4.062

Financial income 38.448 0 29.961 13.006 81.415

Financial expenses 3.772 7 16.053 0 19.832

Sale of receivables measured at amortised cost 0 0 0 5.897 5.897

Receivables, including joint taxation 719.217 0 660.743 143.054 1.523.014

Liabilities, including joint taxation

contribution

Dividend 126.873 0 23.000 0 149.873

Sale of other receivables 0 0 0 67.709 67.709

Contingent liabilities, refer to note 30 6.190 0 0 0 6.190

Parent

Group

81.950 83 430.730 433 513.196

3C RETAIL A/S

Notes

Key

Other

Subsi-

management

Controlling

diaries

personnel

entities

parties

Total

DKK'000

36. Related parties (continued)

2021

Sale of goods 32.863 27 0 0 32.890

Purchase of goods 4.032 0 0 1.707 5.739

Sale of services 42.756 0 188 49.529 92.473

Purchase of services 174 0 130 9.734 10.038

Remuneration etc, refer to note 6 0 3.868 0 0 3.868

Financial income 48.629 0 24.194 15.522 88.345

Financial expenses 2.887 2 17.959 0 20.848

Sale of receivables measured at amortised cost 0 0 0 181.469 181.469

Receivables, including joint taxation 841.750 0 654.977 150.357 1.647.084

Liabilities, including joint taxation contribution 125.644 154 440.363 270 566.432

Dividend 2.500 0 23.000 0 25.500

Sale of other receivables 0 0 0 48.005 48.005

Contingent liabilities, refer to note 30 20.561 0 0 0 20.561

Transactions with subsidiaries are eliminated in the consolidated financial statements in accordance with the

accounting policies.

37. Shareholder information

3C RETAIL Holding A/S, Odense, Denmark

38. Events after the balance sheet date

No events have occurred after the balance sheet date to this date, which would influence the evaluation of this Annual Report.

39. Authorisation of the Annual Report for issue

On 1 March 2023, Management has authorised this Annual Report for issue.

The Annual Report will be submitted to the shareholders of 3C RETAIL A/S for adoption at the Annual General Meeting on

Parent

3C RETAIL A/S has registered the following shareholder as holding more than 5% of the voting rights or nominal value of the share capital:

3C RETAIL A/S

Notes

40. Consolidation

The following companies are included in the consolidation of the 3C RETAIL A/S Group:

3C RETAIL A/S

D:E:R A/S

Thorn Sweden Holdings AB

Thorn Svenska AB

Thom Norway Holdings AS

Thorn Norge AS

Thorn Norge Finans AS

3C Ejendomme ApS

3C Ejendomme I ApS

VÆRSGO A/S

Føniks Inkasso A/S

The smallest group in which the Company is included: The 3C RETAIL Holding A/S Group.

The largest group in which the Company is included: The 3C Holding 2021 ApS Group.