3C RETAIL A/S
Østre Stationsvej 1-5
5000 Odense C, Denmark
Business Registration No 21 47 80 08
Annual report 2023
The Annual General Meeting adopted the Annual Report on / 2024
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 2023 13
Statement of comprehensive income for 2023 14
Balance sheet at 31.12.2023 15
Statement of changes in equity at 31.12.2023 17
Cash flow statement for 2023 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
Odense, 18.03.2024
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 Board of Directors and the Executive Board have today considered and approved the annual
report of 3C RETAIL A/S for the financial year 01.01.2023 – 31.12.2023.
The annual report is prepared in accordance with IFRS Accounting Standards as adopted by the EU
and additional requirements of the Danish Financial Statements Act.
of their operations and the Group's cash flows for the financial year 01.01.2023 – 31.12.2023.
We recommend the annual report for adoption at the annual general meeting.
regulations and contains a fair review of the affairs and conditions referred to therein.
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 31.12.2023 as well as of the results
We believe that the management commentary is prepared in accordance with relevant laws and
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 01.01.2023 - 31.12.2023, which comprise the income statement, statement of comprehensive income,
balance sheet, statement of changes in equity, cash flow statement and notes, including material accounting policy
information, for the Group as well as the Parent. The consolidated financial statements and the parent financial state-
ments are prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements
of the Danish Financial Statements Act.
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 31.12.2023, and of the results of their operations and cash flows for the
financial year 01.01.2023 - 31.12.2023 in accordance with IFRS Accounting Standards as adopted by the EU and addi-
tional requirements of the Danish Financial Statements Act.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements
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 re-
quirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient 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 and 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 required
by relevant law and regulations.
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 infor-
mation required by relevant law and regulations. 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 consolidated financial statements and parent financial statements that
give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and additional require-
ments of the Danish Financial Statements Act, and for such internal control as Management determines 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 responsible for
assessing the Group’s and the Parent’s ability to continue as a going concern, for disclosing, as applicable, matters
related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial
statements and the parent financial statements unless Management either intends to liquidate the Group or the Entity 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-
tor’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 the additional requirements applicable in Denmark will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, indi-
vidually 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 conducted in accordance with ISAs and the additional requirements applicable in Denmark, we
exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify 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 or 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 Entity to cease to continue as a going concern.
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, 18.03.2024
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
2023 2022 2021 2020 2019
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Group financial highlights
Key figures
Income statement
Revenue incl. interest revenue 333.473 359.418 506.848 697.230 925.426
EBITDA* 71.346 83.602 150.796 287.103 241.706
Operating profit/loss (EBIT)* 54.095 64.705 129.402 266.917 222.689
Net financials -16.914 -23.947 -22.147 -70.427 -72.345
Profit/loss before tax 37.181 40.758 107.255 196.490 150.344
116.242
Profit/loss for the year after tax including profit/
30.996
30.210
75.486
127.591
71.151
Balance sheet
Balance sheet total 2.599.026 2.576.518 2.914.583 4.155.758 5.025.663
Receivables measured at amortised cost 1.403.760 1.392.396 1.606.379 2.673.210 3.461.573
Equity 1.117.708 1.125.393 1.123.162 1.068.833 962.942
Equity including subordinated loan from group enterprises 1.454.574 1.473.289 1.506.942 1.336.659 1.364.561
Net interest-bearing debt* -828.435 -825.542 -845.058 -678.681 -497.751
Cash flow statement
Investments in property, plant and equipment 7.051 11.738 8.057 9.153 13.980
Financial ratios
Profit margin 16,2% 18,0% 25,5% 38,3% 24,1%
Return on capital employed 3,4% 3,7% 5,2% 7,7% 5,6%
Solvency ratio 43,0% 43,7% 38,5% 25,7% 19,2%
Solvency ratio including subordinated loan
from group enterprises
56,0%
57,2%
51,7%
32,2%
27,2%
Return on equity 2,8% 2,7% 6,9% 12,6% 7,5%
Debt multiple -11,61 -9,87 -5,60 -2,36 -2,06
*EBITDA, EBIT and net interest-bearing debt are defined in note 1.
149.210Profit/loss for the year after tax from continuing operations 30.996 30.210 91.323
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 accessories. In Denmark, the Group since July 2022, as it’s primary activity, acts in line wi
th
N
orway and Sweden and no longer as intermediator between Facit Bank and the market.
Developments in the financial year
The profit of the financial year 2023 is generally considered satisfactory in the light of the new economic develop-
ment with rising inflation and high interest rates which has had a negative impact on revenue and buttom line.
Unusual circumstances
No
unusual conditions have been noted in 2023.
Events after the balance sheet date
After the balance sheet date, the group has entered into a new bank agreement with a term of 3 to 4 years.
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 33
Interest rate risks
Variable interest is payable on the Group’s total bank loans of DKK 986.918k.
Foreign exchange risks
The Group’s unhedged net position stands at year end at DKK 23.517k, which is composed of SEK, NOK and EUR
Outlook for 2024
In 2024, revenue and profit before tax is expected to increase compared to what was achieved in 2023. The G
roup
expects profit before tax for 2024 to come within the range of DKK 80m to 100m. This primarily driven by opera-
tional gains and lower and stable inflation and interest rates.
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 2023 pur-
suant to sections 99a, 99b and 99d 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, stereo systems ect.), PC products, phones and
accessories primarily to private end consumers (B2C). The most significant CSR risks identified are customer com-
fort 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 sus-
tainable 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. Conse-
quently, we have decided to concentrate our work on four main areas that are all strategically linked to the core busi-
ness 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
customers 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 sur-
veys 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 cus-
tomer 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 interna-
tionally 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 re-
garding 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 dele-
tion 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 correct-
ly.
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 re-
ported to the authorities. We will continue to work with the implemented measures in accordance with the policy in 2024.
Anti-corruption and bribery
Furthermore, 3C RETAIL A/S has implemented an anti-corruption policy specifying our opinion on corruption and the
directions 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
reported through this scheme in 2023. 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.
Going forward 3C RETAIL A/S will work with Environmental aspects under the CSRD framework.
3C RETAIL A/S 11
Management commentary
Working environment (social conditions and labour rights)
In 2023 we have 182 (2022: 200) 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 at-
tractive 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.
Going forward 3C RETAIL A/S strive to improve labour conditions where possible, and under the influence of the CSRD framework
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 2023, a job satisfaction measurement was launched among all employees. For 2023, we had a response rate of approximate-
ly 92%, 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 2022. Compared to the latest measurement back in 2022, we have made some minor changes in the 2023 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 2023. 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 2023 was 3.4%
which is above 2022. 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 employees experi-
ence 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 direct-
ly reflected in a low sickness absenteeism rate and in the number of accidents at work annually ranging between zero and two. 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 inclusivity.
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 2023, 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 2027.
Target figures for the representation of the underrepresented gender at other management levels
At other management levels, the underrepresented gender represented 24% at the end of 2023, which is lower than the target of 35%, which is due
to, that the right candidates has not yet been found. Focus will be maintained on achieving a more equal balance for which reason the target of
35% is maintained. The target for the gender composition of the management is shown in the table below:
Status 2023 Target %
Year for reaching target
Board of Directors
(elected at the general meeting)
Number of board members: 4
% of the underrepresented gender: 0%
25% 2027
Other management levels Number: 21
% of the underrepresented gender: 24%
35% 2027
To realize the targets set by end of 2027, 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 2023
2022
2023
2023
2022
DKK'000
DKK'000
Notes
DKK'000
DKK'000
Continuing operations
151.950 153.865
Revenue, incl interest revenue of
Group: 221m, 2022: 245m, parrent: 78m, 2022: 78m
3 333.473 359.418
468
10.452 Net gain from derecognition of financial assets 37.057
24.040
-50.382 -56.898 Cost of sales 4 -46.540 -47.747
102.036 107.419 Gross profit 323.990 335.711
42.154
36.581 Other operation income 0
0
-46.679
-62.801 Other external expenses 5 -155.794
-147.904
-75.874
-72.031 Staff costs 6,7 -96.850
-104.205
Amortisation, depreciation and
-13.393 -12.167 impairment losses 8 -17.251 -18.897
8.244 -2.999 Operating profit 54.095 64.705
Income from investments in group
80.730
-4.175
enterprises
9
0
0
87.459
140.213 Other financial income 10 81.546
44.474
-70.890 -97.056 Financial expenses 11 -98.460 -68.421
105.543
35.983
Profit before tax
37.181
40.758
-5.472 -6.450 Tax on profit for the year 12 -6.185 -10.548
100.071 29.533
Profit for the year
30.996 30.210
Distribution of profit for the year
Parent shareholders 30.996 30.210
30.996 30.210
13
Parent Group
3C RETAIL A/S
Statement of comprehensive income for 2023
2022
2023
2023
2022
DKK'000
DKK'000
Notes
DKK'000
DKK'000
100.071 29.533 Profit for the year 30.996 30.210
Items that may be reclassified to
profit or loss:
Foreign currency translation adjustment
0
0
regarding foreign entities
-4.181
-4.979
0 0 Other comprehensive income -4.181 -4.979
100.071 29.533
Comprehensive income
26.815 25.231
Distribution of comprehensive income
for the year
Parent shareholders 26.815 25.231
26.815 25.231
14
Parent Group
3C RETAIL A/S
Balance sheet at 31.12.2023
2022
2023
2023
2022
DKK'000
DKK'000
Notes
DKK'000
DKK'000
15.000 15.000 Goodwill 14 57.884 59.320
14.061 22.736 Licences and software 14 32.145 24.257
29.061 37.736 Intangible assets 90.029 83.577
11.354 10.485 Rental assets 15 18.159 17.108
6.385 4.392 Other fixtures, fittings, tools and equipment 15 4.392 6.385
33.667 26.677 Right-of-use assets 15 34.595 43.565
976 757 Leasehold improvements 15 808 1.165
52.382 42.311 Property, plant and equipment 57.954 68.223
313.322 250.682 Investments in subsidiaries 17 0 0
101.982 113.247 Receivables from group enterprises 16 113.247 101.982
159 159 Deposits 16 159 159
415.463 364.088 Financial assets 113.406 102.141
95.550 91.035 Deferred tax assets 22 173.595 185.352
592.456
535.170
Non-current assets
434.984
439.293
16.284 14.628 Inventories 18 14.797 16.450
474.832 559.723 Receivables measured at amortised cost 19 1.403.760 1.392.396
1.421.032 1.337.118 Receivables from group enterprises 714.304 701.815
0 0 Income tax 261 248
9.915 10.563 Other receivables 15.138 17.897
1.702 2.166 Prepayments 2.166 1.701
1.907.481 1.909.570 Receivables 2.135.629 2.114.057
2.119 10.629 Cash 20 13.616 6.718
1.925.884
1.934.827
Current assets
2.164.042
2.137.225
2.518.340 2.469.997
Assets
2.599.026 2.576.518
15
Parent Group
3C RETAIL A/S
Balance sheet at 31.12.2023
2022
2023
2023
2022
DKK'000
DKK'000
Note
DKK'000
DKK'000
500 500 Contributed capital 21 500 500
0 0 Other reserves 12.951 17.132
1.051.488 1.046.521 Retained earnings 1.104.257 1.107.761
1.051.988
1.047.021
Equity
1.117.708
1.125.393
815.539 0 Bank loans 24 0 815.539
28.576 22.073 Lease liabilities 26 28.912 37.466
8.594 8.870 Other payables 27 8.870 8.594
0 0 Pension obligations 23 11.830 10.682
0 0 Deferred tax liabilities 22 4.238 6.912
852.709 30.943 Non-current liabilities 53.850 879.193
69.499 976.356 Bank loans 24 986.918 75.689
347.896 336.866 Subordinated loan from group enterprises 33 336.866 347.896
141 551 Prepayments from customers 1.827 1.276
8.446 6.433 Trade payables 25 11.398 13.548
0 1.935 Income tax 5.901 6.454
165.217 49.045 Payables from group enterprises 46.372 83.267
6.974 6.503 Lease liabilities 26 8.554 8.918
15.470 14.344 Other payables 27 29.513 34.473
0 0 Deferred income 119 411
613.643 1.392.033 Current liabilities 1.427.468 571.932
1.466.352
1.422.976
Liabilities
1.481.318
1.451.125
2.518.340 2.469.997
Liabilities and equity
2.599.026 2.576.518
Assets charged and collateral 28
Contingent liabilities 29
Other notes 33-38
16
Parent Group
3C RETAIL A/S
Statement of changes in equity for 2023 (Parent)
Contributed
Other
Retained
capital
reserves
earnings
Total
DKK'000
DKK'000
DKK'000
DKK'000
Equity at 01.01.2022
500
-3
974.420
974.917
Transferred
0
3
-3
0
Profit for the year
0
0
100.071
100.071
Comprehensive income in 2022
0
3
100.068
100.071
Dividend paid
0
0
-23.000
-23.000
0
0
-23.000
-23.000
Equity at 01.01.2023
500
0
1.051.488
1.051.988
Profit for the year
0
0
29.533
29.533
Comprehensive income in 2023
0
0
29.533
29.533
Dividend paid
0
0
-34.500
-34.500
0
0
-34.500
-34.500
Equity at 31.12.2023
500
0
1.046.521
1.047.021
Reserve for
value adjust-
ment of
hedging
instruments
Total
DKK'000
DKK'000
Other reserves at 01.01.2022
-3
-3
Profit for the year
0
0
Transfer to retained earnings
3
3
Fair value adjustment of financial instruments entered
into to hedge future cash flows
0
0
Other reserves at 01.01.2023
0
0
Profit for the year
0
0
Transfer to retained earnings
0
0
Fair value adjustment of financial instruments entered
into to hedge future cash flows 0 0
Other reserves at 31.12.2023 0 0
17
Parent
3C RETAIL A/S
Statement of changes in equity for 2023 (Group)
Contributed
Other
Retained
capital
reserves
earnings
Total
DKK'000
DKK'000
DKK'000
DKK'000
Equity at 01.01.2022
500
22.108
1.100.554
1.123.162
Other comprehensive income
0
-4.979
0
-4.979
Transferred
0
3
-3
0
Profit for the year
0
0
30.210
30.210
Comprehensive income in 2022
0
-4.976
30.207
25.231
Dividend paid
0
0
-23.000
-23.000
0
0
-23.000
-23.000
Equity at 01.01.2023
500
17.132
1.107.761
1.125.393
Other comprehensive income
0
-4.181
0
-4.181
Profit for the year
0
0
30.996
30.996
Comprehensive income in 2023
0
-4.181
30.996
26.815
Dividend paid
0
0
-34.500
-34.500
0
0
-34.500
-34.500
Equity at 31.12.2023
500
12.951
1.104.257
1.117.708
Reserve for
Reserve for
foreign
value adjust-
currency
ment of
translation
hedging
adjustments
instruments
Total
DKK'000
DKK'000
DKK'000
Other reserves at 01.01.2022
22.111
-3
22.108
Foreign currency translation adjustments regarding foreign subsidiaries
-4.979
0
-4.979
Transfer to retained earnings
0
3
3
Fair value adjustment of financial instruments entered
into to hedge future cash flows
0
0
0
Other reserves at 01.01.2023
17.132
0
17.132
Foreign currency translation adjustments regarding foreign subsidiaries
-4.181
0
-4.181
Transfer to retained earnings
0
0
0
Fair value adjustment of financial instruments entered
into to hedge future cash flows 0 0 0
Other reserves at 31.12.2023 12.951 0 12.951
18
Group
3C RETAIL A/S
Cash flow statement for 2023
2022
2023
2023
2022
DKK'000
DKK'000
Notes
DKK'000
DKK'000
100.071 29.533 Profit for the year from continuing operations 30.996 30.210
-72.567 866 Adjustments 53.447 54.413
59.178 -86.800 Working capital changes 31 -12.844 171.549
86.682 -56.401 Cash flows from ordinary operating activities 71.599 256.172
81.423 117.696 Interest income and similar income, paid 66.777 43.907
-70.720 -95.770 Interest expenses and similar expenses, paid -96.283 -68.234
97.385 -34.475 Cash flows from operating activities before tax 42.093 231.845
11.375 0 Income tax paid 2.608 18.698
108.760 -34.475 Cash flows from operating activities 44.701 250.543
126.873 68.465 Dividend received 0 0
-102.500 -10.000 Capital injection to subsidiary 0 0
-12.561 -10.273 Acquisition of intangible assets -10.555 -13.016
-17.424 -755 Acquisition of property, plant and equipment -7.051 -11.738
-159 0 Investments 0 67.651
4.572 257 Sale of property, plant and equipment 2.719 7.724
212.625 72.649 Loans to related parties -23.754 -6.471
211.426 120.343 Cash flows from investing activities -38.641 44.150
-23.000 -34.500 Dividend distributed -34.500 -23.000
-6.513 -6.974 Repayment of lease liability 30 -8.918 -8.355
-53.164 -127.202 Loans from related parties 30 -47.925 -9.470
-236.730 91.318 Bank loans 30 91.318 -236.730
-319.407 -77.358 Cash flows from financing activities -25 -277.555
Increase/decrease in cash
and cash equivalents
1.340 2.119 Cash and cash equivalents at 01.01. 528 -14.215
0 0 Foreign currency translation adjustments -3.509 -2.395
Cash and cash
equivalents at 31.12. 32
19
Parent Group
6.035 17.1388.510779
10.6292.119 3.054 528
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 Income tax
13 Dividend
14 Intangible assets
15 Property, plant and equipment
16 Financial assets
17 Investments in subsidiaries
18 Inventories
19 Receivables measured at amortised cost
20 Cash
21 Contributed capital
22 Deferred tax
23 Other provisions
24 Bank loans
25 Trade payables
26 Lease liability
27 Other payables
28 Assets charged and collateral
29 Contingent liabilities
30 Changes in liabilities arising from financing activities
31 Working capital changes
32 Cash and cash equivalents
33 Financial risks and financial instruments
34 Related parties
35 Shareholder information
36 Events after the balance sheet date
37 Authorisation of the Annual Report for issue
38 Consolidation
3C RETAIL A/S 21
Notes
1. Accounting policies
The Annual Report of 3C RETAIL A/S for 2023, which comprises both the parent financial statements and the consolidated
financial statements, is presented in accordance with IFRS accounting 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. However, in the financial
statements, a reclassificationmistake has been corrected within the operating profit/loss. The reclassification (amounts to DKK
31,1m) consists of amortization of transaction costs on some contract receivable that form an integral part of the effective interest
rate presented as revenue as opposed to previously presented as part of other external expenses. The reclassification has not affected
the financial performance, balance sheet total or equity in 2022 or 2023.
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 01.01.2023. Additional Danish disclosure requirements for
financial statements are laid down in the Danish Executive Order on IFRS adoption issued in accordance with the Danish Financial
Statements Act.
Effective from 1 January 2023, the Group has implemented the following revised standards and interpretations:
Amendments to IFRS 12, deferred tax regarding assets and liabilities arising from a single transaction
Amendments to IFRS 1 presentation of annual accounts and practice statement 2 – assessment of essentiality regarding in-
formation on applied accounting practices
Amendments to IFRS 8 applied accounting policies, changes to accounting estimates and errors concerning the definition
of accounting estimates.
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 effective 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 2023:
Amendments to IAS 1 on classification of liabilities as short- or long term
Amendments to IAS 7 and IFRS7 – disclosure of supplier financing
Amendments to IFRS 16 about sales and lease back
IAS 21 on the lack of possibility to exchange currency.
Management has assessed that the implementation will not have any significant impact. Apart from the above, Management has not
i
dentified any other standards and interpretations not yet
eff
ective tha
t
may b
e
r
elevant 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
31.12.2023, the carrying amount of goodwill relating to business combinations performed before 01.01.2009 totals DKK
57,884k.
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
r
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
ly
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
o
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
s
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
e
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 the
income statement in the financial year.
Financial income and financial expenses
These items comprise interest 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.
Balance sheet
Goodwill
On initial recognition, goodwill is recognised and measured as the difference between cost of the acquiree and the fair value of
the acquired assets, liabilities and contingent liabilities, refer to the description in the section on consolidated financial
statements. Acquired intellectual property rights are written down to any lower recoverable amount, refer to the section below
on impairment losses.
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.
3C RETAIL A/S 27
Notes
1. Accounting policies (continued)
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
ed
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
he
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
ts
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
f
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
t
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 2023, 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 33.
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
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
3. Revenue
54.534 63.678 Sale of goods 71.913 73.163
2.328 1.939 Rental income 12.984 14.701
16.840 9.844 Commissions and subscriptions 27.967 26.692
78.248 78.404 Interest and fees on receivables 220.609 244.862
151.950 153.865 333.473 359.418
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:
207 137 Within one year of the balance sheet date 4.975 5.052
Between one and two years from the
1
0
balance sheet date
3.716
2.750
Between two and three years from the
0
0
balance sheet date
2.696
1.491
Between three and four years from the
0
0
balance sheet date
1.674
716
Between four and five years from the
0
0
balance sheet date
567
203
More than five years after the balance sheet
0
0
date
0
0
208 137 13.628 10.212
33
Parent Group
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
4. Cost of sales
49.000 55.548 Cost of products sold 45.022 46.213
-289 -97 Reversal of impairment losses on inventories -97 -289
1.671 1.447 Other cost of sales 1.615 1.823
50.382 56.898 46.540 47.747
5. Fees to auditors appointed
by the Annual General Meeting
Other external expenses include fees to auditors
appointed by the Annual General
Meeting at:
783 813 Audit services 1.457 1.405
56 63 Tax assistance 161 63
79 154 Other non-audit services 154 333
0 15 Other assurance engagements 15 78
918 1.045 1.787 1.879
6. Staff costs
68.956 64.561 Wages and salaries 82.135 88.135
5.287 6.180 Pension contributions 8.432 8.157
1.631 1.290 Other social security expenses 6.283 7.913
75.874 72.031 96.850 104.205
136 126 Average headcount 167 177
Remuneration for members of
Management:
3.379 4.325 Wages and salaries (incl staff benefits) 5.767 5.930
152 136 Defined contribution plans 181 303
3.531 4.461 5.948 6.233
Board of Directors
531 550 Directors’ remuneration 550 531
531 550 550 531
34
Parent Group
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
7. Pension plans
Contributions taken to profit or loss:
5.287 6.180 Defined contribution plans 7.375 6.551
0 0 Defined benefit plans 1.057 1.606
5.287 6.180 8.432 8.157
8. Amortisation, depreciation and
impairment losses
4.182 1.598 Licences 2.667 4.620
638 1.334 Rental assets 3.247 3.527
8.988 6.990 Right-of-use assets 8.970 11.017
882 2.025 Other fixtures, fittings, tools and equipment 2.025 882
119 220 Leasehold improvements 342 267
-1.416 0 Loss/(profit) on sale of other fixtures etc 0 -1.416
13.393 12.167 Total amortisation and depreciation 17.251 18.897
35
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 up 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
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
9. Income from investments in
group enterprises
2.733 465 Dividend from Thorn Norge Finans AS 0 0
76.640 0 Dividend from Thorn Norway Holdings AS 0 0
47.500 68.000 Dividend from 3C Ejendomme ApS 0 0
-46.143 -72.640 Impairment losses on group enterprises* 0 0
80.730 -4.175 0 0
* Refer to note 17 for a description of impairment losses on group enterprises
10. Other financial income
4 68 Interest on bank deposits etc 167 61
81.415 117.628 Interest from group enterprises 66.600 42.967
4 0 Other interest 10 879
81.423 117.696 Interest income from financial assets 66.777 43.907
6.036 22.517 Foreign currency translation adjustments 14.769 567
87.459 140.213 81.546 44.474
11. Financial expenses
49.698 74.658 Interest on bank loans 74.975 49.907
19.825 19.976 Interest to group enterprises 19.296 16.053
1.197 1.136 Other interest 2.012 2.274
70.720 95.770 Interest expenses from financial liabilities 96.283 68.234
170 1.286 Foreign currency translation adjustments 2.177 187
Impairment of receivables from group
0
0
enterprises
0
0
70.890 97.056 98.460 68.421
36
Parent Group
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
12. Income tax
0 1.935 Current tax 5.995 6.942
5.509 4.477 Change in deferred tax 21 4.151
-37 38 Adjustment regarding prior years 169 -545
5.472 6.450 6.185 10.548
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 rate 22,0% 22,0%
-16,8% 2,6% Profit/loss of group enterprises 0,0% 0,0%
0,0% -0,2% Non-taxable income and
0,0% 0,0% non-taxable expenses etc. 5,1% 3,1%
Difference between Danish and
0,0%
0,0%
foreign tax rates
-0,4%
1,1%
0,0% -6,6% Difference in tax rates* -10,6% 0,0%
0,0% 0,1% Adjustment regarding prior years 0,5% -0,3%
5,2% 17,9% 16,6% 25,9%
* As a result of Danish lawchanges the tax rate for 2023 for 3C RETAIL A/S and D:E:R A/S has increased
through a factormodel to 25.2%. In 2024, the tax rate will rise further to 26%.
13. Dividend
On 30.06.2023, 3C RETAIL A/S distributed DKK 34,5m in ordinary dividend to the shareholders.
The Board of Directors proposes that DKK 53,7m be distributed for the financial year 2023, 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.
37
Parent Group
3C RETAIL A/S
Notes
Licences
Goodwill
and software
DKK'000
DKK'000
14. Intangible assets
Cost at 01.01.2023 15.000 125.036
Additions 0 10.273
Cost at 31.12.2023 15.000 135.309
Amortisatíon and impairment losses at 01.01.2023 0 110.975
Amortisation for the year 0 1.598
Amortisation and impairment losses at 31.12.2023 0 112.573
Carrying amount at 31.12.2023 15.000 22.736
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
38
Parent
3C RETAIL A/S
Notes
Licences
Goodwill
and software
DKK'000
DKK'000
14. Intangible assets
Cost at 01.01.2023 59.320 155.451
Foreign currency translation adjustments -1.436 -25
Additions 0 10.555
Cost at 31.12.2023 57.884 165.981
Amortisation and impairment losses at 01.01.2023 0 131.194
Foreign currency translation adjustments 0 -25
Amortisation for the year 0 2.667
Amortisation and impairment losses at
31.12.2023
Carrying amount at 31.12.2023 57.884 32.145
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
39
0 131.194
Group
0 133.836
3C RETAIL A/S
Notes
14. 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:
2023
2022
DKK'000
DKK'000
Thorn Svenska AB 20.020 19.928
Thorn Norge AS 22.864 24.392
3C RETAIL A/S 15.000 15.000
57.884 59.320
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 2024 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 8,7% - 8,9% has been used (2022: 8,0% - 8,4%).
The recoverable amount of the cash-generating units at the balance sheet date exceeds the carrying
amount by over 100%.
40
3C RETAIL A/S
Notes
Other
Right-of-
Leasehold
Rental
fixtures
use
improve-
assets
etc
assets*
ments
DKK'000
DKK'000
DKK'000
DKK'000
15. Property, plant and equipment
Cost at 01.01.2023 13.788 53.241 68.819 6.412
Foreign currency translation adjustments 4 -10 0 -47
Additions 722 33 0 0
Disposals -549 0 0 0
Cost at 31.12.2023 13.965 53.264 68.819 6.365
Depreciation and impairment losses at 01.01.2023 2.434 46.856 35.152 5.436
Foreign currency translation adjustments 4 -9 0 -48
Depreciation for the year 1.334 2.025 6.990 220
Reversal of depreciation of assets sold -292 0 0 0
Depreciation and impairment losses at 31.12.2023 3.480 48.872 42.142 5.608
Carrying amounts at 31.12.2023 10.485 4.392 26.677 757
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
* Right-of-use assets consists mainly of properties
41
Parent
3C RETAIL A/S
Notes
Other
Right-of-
Leasehold
Rental
fixtures
use
improve-
assets
etc
assets*
ments
DKK'000
DKK'000
DKK'000
DKK'000
15. Property, plant and equipment
Cost at 01.01.2023 34.462 54.875 85.771 7.127
Foreign currency translation adjustments -41 -3 0 -93
Additions 7.018 33 0 0
Disposals -11.256 0 0 0
Cost at 31.12.2023 30.183 54.905 85.771 7.034
Depreciation and impairment losses at 01.01.2023 17.354 48.490 42.206 5.962
Foreign currency translation adjustments -40 -2 0 -78
Depreciation for the year 3.247 2.025 8.970 342
Reversal of depreciation of assets sold -8.537 0 0 0
Depreciation and impairment losses at 31.12.2023 12.024 50.513 51.176 6.226
Carrying amounts at 31.12.2023 18.159 4.392 34.595 808
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
* Right-of-use assets consists mainly of properties
42
Group
3C RETAIL A/S
Notes
Receivables
from
group
enterprises
Deposits
DKK'000
DKK'000
16. Financial assets
Value at 01.01.2023 101.982 159
Additions 27.163 0
Disposals -15.898 0
Value at 31.12.2023 113.247 159
Value at 01.01.2022 121.520 0
Additions 9.387 159
Disposals -28.925 0
Value at 31.12.2022 101.982 159
Receivables
from
group
Other
enterprises
receivables
Deposits
DKK'000
DKK'000
DKK'000
Value at 01.01.2023 101.982 0 159
Additions 27.163 0 0
Disposals -15.898 0 0
Value at 31.12.2023 113.247 0 159
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
* Recieivables from group enterprises has been written down because of negative net assets in subsidiaries.
Group
43
Parent
3C RETAIL A/S
Notes
2022
2023
DKK'000
DKK'000
17. Investments in subsidiaries
702.682 805.182 Cost at 01.01.
102.500 10.000 Additions inclusive of capital increase
805.182 815.182 Cost at 31.12.
445.717 491.860 Impairment losses at 01.01.
46.143 72.640 Impairment losses for the year
491.860 564.500 Impairment losses at 31.12.
313.322 250.682 Carrying amount at 31.12.
The impairment loss is due to dividend from 3C Ejendomme ApS and loss-making aktivities in Føniks
Inkasso A/S. The impairment is made corresponding to the equity of 3C Ejendomme ApS (DKK 67.690k) and
Føniks Inkasso A/S (DKK 4.950k), as management has assessed this to be a fair estimated of the fair value.
The subsidiaries are:
Equity interest*
Registered
2023
2022
office
%
%
Activity
D:E:R A/S Denmark 100 100 Sale and lease-out of durable consumer
goods in Denmark and consumer loans
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 consumer loans
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
Thorn Norge Finans AS Norway 100 100 Consumer loans
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
44
Parent
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
18. Inventories
16.284 14.628 Goods for resale 14.797 16.450
16.284 14.628 14.797 16.450
19. Receivables measured at
amortised cost
474.832 559.723 Carrying amount of receivables and loans 1.403.760 1.392.396
474.832 559.723 1.403.760 1.392.396
45
Parent Group
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
20. Cash
2.119 10.629 Cash and bank deposits 13.616 6.718
2.119 10.629 13.616 6.718
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 86.587k (2022: DKK 217.253k).
The Parent have total undrawn short term credit facilities of DKK 79.725k (2022: DKK 205.814k).
21. 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.
46
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
DKK'000
DKK'000
DKK'000
DKK'000
22. Deferred tax
2023 - Group
Intangible assets -210 77 3.184 0 3.051
Property, plant and equipment 1.442 113 2.178 0 3.733
Receivables -29.649 -493 -7.036 0 -37.178
Liabilities 157 -39 3.411 0 3.529
Tax losses -150.180 9.404 -1.716 0 -142.492
-178.440 9.062 21 0 -169.357
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 -15.275 -256 15.688 0 157
Tax losses -154.639 6.768 -2.309 0 -150.180
-188.431 5.840 4.151 0 -178.440
2023 - Parent
Intangible assets -209 77 3.184 0 3.052
Property, plant and equipment 5.221 -39 109 0 5.291
Receivables -25.460 0 -7.830 0 -33.290
Liabilities -160 0 4.099 0 3.939
Tax losses -74.942 0 4.915 0 -70.027
-95.550 38 4.477 0 -91.035
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
* Other adjustments relating to tax losses reimbursement from joint taxation and exhange rate adjustments.
47
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
22. Deferred tax (continued)
Deferred tax is recognised as follows in the
balance sheet:
95.550 91.035 Deferred tax assets 173.595 185.352
0 0 Deferred tax liabilities 4.238 6.912
-95.550 -91.035 -169.357 -178.440
23. Other provisions
0 0 Pension obligations at 01.01 10.682 9.940
0 0 Foreign currency translation adjustment 91 -864
0 0 Provisions for the year 1.057 1.606
0 0 Pension obligations at 31.12 11.830 10.682
24. Bank loans
885.038 976.356 Bank loans 986.918 891.228
885.038 976.356 986.918 891.228
Payables are recognised as follows in the
815.539 0 Long-term payables 0 815.539
69.499 976.356 Short-term payables 986.918 75.689
885.038 976.356 986.918 891.228
The amounts are payable as follows:
69.499 976.356 Within one year of the balance sheet date 986.918 75.689
815.539 0 Within one and two years of the balance 0 815.539
0 0 Within two and three years of the balance 0 0
885.038 976.356 986.918 891.228
48
Parent Group
At 31.12.2023, the Group has a tax asset of DKK 5m (2022: 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
DKK'000
DKK'000
24. Bank loans(continued)
The payables can be specified as follows:
Bank loan DKK 2024 Variable 334.229 334.229 334.229
Bank loan SEK 2024 Variable 337.193 337.193 337.193
Bank loan NOK 2024 Variable 315.496 315.496 315.496
31.12.2023 - group 986.918 986.918 986.918
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 2024 Variable 325.075 325.075 325.075
Bank loan SEK 2024 Variable 335.850 335.850 335.850
Bank loan NOK 2024 Variable 315.431 315.431 315.431
31.12.2023 - parent 976.356 976.356 976.356
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
49
3C RETAIL A/S
Notes
Additions on
Changes in
Fair value
01.01
Cashflows
acquisitions
foreign exchange
rates
31.12
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
24. Bank loans (continued)
Bank loan 891.228 114.279 0 -18.589 0 986.918
2023 - Group 891.228 114.279 0 -18.589 0 986.918
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 885.038 109.614 0 -18.296 0 976.356
2023 - Parent 885.038 109.614 0 -18.296 0 976.356
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
50
Non-cash changes
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
25. Trade payables
8.446
6.433
Trade payables
11.398
13.548
8.446 6.433 11.398 13.548
The carrying amount is equivalent to the fair value of the liabilities.
26. Lease liability
Maturity of lease liability
7.790 7.133 Within 1 year 9.387 9.951
29.613 22.967 Between 1 and 5 years 30.073 38.810
480 0 More than 5 years 0 480
Total non-discounted lease
37.883
30.100
liability at 31.12.2023
39.460
49.241
35.550 28.576 Lease liability recognised in the balance sheet 37.466 46.384
6.974 6.503 Short-term 8.554 8.918
28.576 22.073 Long-term 28.912 37.466
Amounts recognised in the income statement
1.035 787 Interest expenses related to the lease liability 1.042 1.340
Variable lease payments not recognised within
0
0
the lease liability
0
0
Expenses related to short-term leases
0
0
(less than 12 months)
0
0
9.207 7.761 Total cash outflow regarding leases 9.960 11.353
744 935 Expenses related to low-value leases 988 804
27. Other payables
Long-term
8.594 8.870 Holiday pay and holiday pay obligation 8.870 8.594
8.594 8.870 8.870 8.594
Short-term
2.924 2.450 Holiday pay and holiday pay obligation 3.436 3.784
0 32 VAT 2.688 5.116
12.546 11.862 Other payables 23.389 25.573
15.470 14.344 29.513 34.473
The carrying amount is equivalent to the fair value of the liabilities.
51
Parent Group
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
28. Assets charged and collateral
235.806
168.116
210.669
271.214
82
383
29. Contingent liabilities
3.064
10.496
6.190
10.562
0
0
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 2024-2027, a license agreement
has been entered regarding software
2.904
3.186
Within one year
3.186
2.904
10.113
8.256
Between one and five years
8.256
10.113
0
0
After more than five years
0
0
13.017
11.442
11.442
13.017
876 88710.957 12.097
017.629 0
52
Parent Group
Bank loans of DKK 991m have been secured
by pledge of shares in group enterprise
To secure payment of taxes, cash and cash
equivalent have been deposited
The Parent has issued a letter of subordination
on receivables from subsidiaries for such
subsidiaries' bank loans (carrying amount). The
receivables amount to DKK 273m.
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.
17.424
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:
3C RETAIL A/S
Notes
30. Changes in liabilities arising from financing activities
Financing
Disposal of
Other
01.01
Cashflows
subsidary
changes
31.12
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
Lease liability -46.384 -8.918 0 0 -37.466
Loans from related parties -431.163 -47.925 0 0 -383.238
Bank loans -885.038 91.318 0 0 -976.356
31.12.2023 – Group -1.362.585 34.475 0 0 -1.397.060
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 -35.550 -6.974 0 0 -28.576
Loans from related parties -513.113 -134.788 0 0 -378.325
Bank loans -885.038 91.318 0 0 -976.356
31.12.2023 – Parent -1.433.701 -50.444 0 0 -1.383.257
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
53
Non-Cash changes
3C RETAIL A/S
Notes
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
31. Working capital changes
-2.182 1.656 Increase/decrease in inventories 1.653 2.289
114.601 -86.003 Increase/decrease in receivables -9.070 231.507
Increase/decrease in trade payables and other
payables
59.178 -86.800 -12.844 171.549
32. Cash and cash equivalents
2.119 10.629 Cash 13.616 6.718
0 0 Bank loans (short-term) -10.562 -6.190
2.119 10.629 3.054 528
33. Financial risks and financial
instruments
474.832 559.723 Receivables measured at amortised cost* 1.403.760 1.392.396
1.523.014 1.450.365 Receivables to group enterprises 827.551 803.797
9.915 10.563 Other receivables 15.138 17.897
Financial assets measured at
2.007.761
2.020.651
amortised cost
2.246.449
2.214.090
*
The fair value of receivables measured at amortised cost for the groups is DKK 1.511.194k (2022: DKK 1.515.042k).
The fair value of receivables measured at amortised cost for the parent is DKK 587.929k (2022: DKK 504.774k).
885.038 976.356 Bank loans 986.918 891.228
347.896 336.866 Subordinated loan from group enterprises 336.866 347.896
8.446 6.433 Trade payables 11.398 13.548
35.550 28.576 Lease liabilities 37.466 46.384
165.217 49.045 Payables from group enterprises 46.372 83.267
24.064 23.214 Other payables 38.383 43.067
Financial liabillities measured at
1.466.211
1.420.490
amortised cost
1.457.403
1.425.390
54
Parent Group
-53.241 -2.453 -5.427 -62.247
3C RETAIL A/S 55
Notes
33. 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
33. 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.
I
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 fixed interest 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. Refer also to note 36
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 business partners.
3C RETAIL A/S
Notes
33. 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
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
EUR 1.730 40 33 1.737 0 1.737
SEK 7.674 362.967 364.096 6.545 0 6.545
NOK 2.414 349.301 336.480 15.235 0 15.235
31.12.2023 - Group 11.818 712.308 700.609 23.517 0 23.517
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 1.730 40 33 1.737 0 1.737
SEK 7.211 326.713 335.850 -1.926 0 -1.926
NOK 16 344.723 315.452 29.287 0 29.287
31.12.2023 - Parent 8.957 671.476 651.335 29.098 0 29.098
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
57
3C RETAIL A/S
Notes
33. 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
DKK'000
DKK'000
DKK'000
EUR 745,29 745,00 1.737 -1 -1 0
SEK 67,17 69,00 6.545 139 0 139
NOK 66,30 72,00 15.235 1.022 0 1.022
Total effect 2023 - Group 1.160 -1 1.161
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 745,29 745,00 1.737 -1 -1 0
SEK 67,17 69,00 -1.926 -41 -41 0
NOK 66,30 72,00 29.287 1.964 1.964 0
Total effect 2023 – Parent 1.922 1.922 0
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
58
3C RETAIL A/S
Notes
33. 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
DKK'000
DKK'000
DKK'000
DKK'000
Receivables 1.053.033 791.297 386.981 2.231.311 1.403.760
Bank deposits 13.616 0 0 13.616 0
Payables from group enterprises -46.372 0 0 -46.372 0
Subordinated loan from group enterprises* -336.866 0 0 -336.866 -336.866
Lease liabilities -37.466 0 0 -37.466 0
Bank loans -986.918 0 0 -986.918 0
31.12.2023 – Group -340.973 791.297 386.981 837.305 1.066.894
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 1.542.628 256.699 210.761 2.010.088 559.723
Bank deposits 10.629 0 0 10.629 0
Payables from group enterprises -49.045 0 0 -49.045 0
Subordinated loan from group enterprises* -336.866 0 0 -336.866 -336.866
Lease liabilities -28.576 0 0 -28.576 0
Bank loans -976.356 0 0 -976.356 0
31.12.2023 – Parent 162.414 256.699 210.761 629.874 222.857
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
* The Subordinated loan has no special terms and resigns for all other creditors
59
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
33. Financial risks and financial instruments (continued)
Interest rate risks (continued)
Sensitivity relating to interest rates
60
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 -1.791k (2022: DKK -1.641k), whereas the Parent’s profit and equity
would be affected by DKK 3.175k (2022: DKK 3.427k). An equivalent decline would have the same
positive consequences.
3C RETAIL A/S
Notes
33. 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
DKK'000
DKK'000
DKK'000
Bank loans -986.918 0 0 -986.918
Trade payables -11.398 0 0 -11.398
Income tax payable -5.901 0 0 -5.901
Payables from group enterprises -46.372 0 0 -46.372
Lease liabilities -8.554 -28.912 0 -37.466
Subordinated loan from group enterprises* -336.866 0 0 -336.866
Other payables -29.513 -588 -8.282 -38.383
31.12.2023 - Group -1.425.522 -29.500 -8.282 -1.463.304
Bank loans -976.356 0 0 -976.356
Trade payables -6.433 0 0 -6.433
Income tax payable -1.935 0 0 -1.935
Payables from group enterprises -49.045 0 0 -49.045
Lease liabilities -6.503 -22.073 0 -28.576
Subordinated loan from group enterprises* -336.866 0 0 -336.866
Other payables -14.344 -588 -8.282 -23.214
31.12.2023 – Parent -1.391.482 -22.661 -8.282 -1.422.425
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
* The Subordinated loan has no special terms and resigns for all other creditors
61
3C RETAIL A/S
Notes
33. 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.
2022
2023
2023
2022
DKK'000
DKK'000
DKK'000
DKK'000
The cash reserves are composed as follows:
2.119 10.629 Cash 13.616 6.718
205.814 79.725 Undrawn short term credit facilities 86.587 217.253
207.933 90.354 100.203 223.971
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:
2023 2022
DKK'000 DKK'000
EBITDA* 71.346 83.602
Net interest-bearing debt -828.435 -825.542
Debt multiple -11,61 -9,87
*EBITDA and net interest-bearing debt are defined in note 1.
62
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
33. 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 76.866 (2022: DKK 71.081)
Total loss and changes in impairment for parent DKK 16.226 (2022: DKK 2.390)
The general economic development in 2023 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
33. Financial risks and financial instruments (continued)
Receivables measured at amortised cost
Stage 1
Stage 2
Stage 3
Total
DKK'000
DKK'000
DKK'000
DKK'000
2023
Gross loan 01.01.2023 950.304 211.708 651.381 1.813.393
Change of the year* -27.801 -18.662 66.311 19.848
Gross loan 31.12.2023 922.503 193.046 717.692 1.833.241
Impairment 01.01.2023 45.960 28.783 346.254 420.997
Change of the year* 4.371 -1.227 5.340 8.484
Impairment 31.12.2023 50.331 27.556 351.594 429.481
Net loan 01.01.2023 904.344 182.925 305.127 1.392.396
Change of the year -32.172 -17.435 60.971 11.364
Net loan 31.12.2023 872.172 165.490 366.098 1.403.760
Stage 1 Stage 2 Stage 3 Total
DKK'000
DKK'000
DKK'000
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
* Change of the year is affected by purchase and sale of portfolio.
The Group’s maximum credit risk amounts to DKK 2.247m at 31.12.2023 (2022: DKK 2.215m).
64
Group
3C RETAIL A/S
Notes
33. Financial risks and financial instruments (continued)
Receivables measured at amortised cost (continued)
Stage 1
Stage 2
Stage 3
Total
DKK'000
DKK'000
DKK'000
DKK'000
2023
Gross loan 01.01.2023 283.839 28.557 384.969 697.365
Change of the year* 47.617 15.434 41.745 104.796
Gross loan 31.12.2023 331.456 43.991 426.714 802.161
Impairment 01.01.2023 9.983 5.158 207.392 222.533
Change of the year* 5.352 3.258 11.295 19.905
Impairment 31.12.2023 15.335 8.416 218.687 242.438
Net loan 01.01.2023 273.856 23.399 177.577 474.832
Change of the year 42.265 12.176 30.450 84.891
Net loan 31.12.2023 316.121 35.575 208.027 559.723
Stage 1 Stage 2 Stage 3 Total
DKK'000
DKK'000
DKK'000
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
* Change of the year is affected by purchase and sale of portfolio.
The Parent’s maximum credit risk amounts to DKK 2.021m at 31.12.2023 (2022: DKK 2.008m).
Parent
65
3C RETAIL A/S
Notes
34. 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 17.
Related party transactions
During the financial year, the Group and the Parent have had the following related party transactions:
Key
Other
management
Controlling
related
personnel
entities
parties
Total
DKK'000
DKK'000
DKK'000
DKK'000
2023
Purchase of goods 0 0 2.057 2.057
Sale of services 0 751 45.848 46.599
Purchase of services 0 619 8.212 8.831
Remuneration etc, refer to note 6 6.498 0 0 6.498
Financial income 0 46.573 20.027 66.600
Financial expenses 3 19.296 0 19.299
Sale of receivables measured at amortised cost 0 0 288.351 288.351
Receivables 0 672.171 155.380 827.551
Liabilities, including joint taxation contribution 82 383.032 207 383.320
Dividend 0 34.500 0 34.500
66
Group
3C RETAIL A/S
Notes
Key
Other
management
Controlling
related
personnel
entities
parties
Total
DKK'000
DKK'000
DKK'000
DKK'000
34. Related parties (continued)
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
Key
Other
Subsi-
management
Controlling
related
diaries
personnel
entities
parties
Total
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
2023
Sale of goods 41.267 0 0 0 41.267
Purchase of goods 4.339 0 0 2.057 6.396
Sale of services 36.581 0 751 18.617 55.949
Purchase of services 155 0 619 8.212 8.986
Remuneration etc, refer to note 6 0 5.011 0 0 5.011
Financial income 51.028 0 46.573 20.027 117.628
Financial expenses 680 3 19.296 0 19.979
Sale of receivables measured at amortised cost 0 0 0 101.235 101.235
Receivables, including joint taxation 622.814 0 672.171 155.380 1.450.365
Liabilities, including joint taxation
contribution
Dividend 0 0 34.500 0 34.500
Contingent liabilities, refer to note 30 10.562 0 0 0 10.562
67
Parent
Group
2.673 82 383.032 207 385.993
3C RETAIL A/S
Notes
Key
Other
Subsi-
management
Controlling
related
diaries
personnel
entities
parties
Total
DKK'000
DKK'000
DKK'000
DKK'000
DKK'000
34. Related parties (continued)
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 81.950 83 430.730 433 513.196
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
Transactions with subsidiaries are eliminated in the consolidated financial statements in accordance with the
accounting policies.
35. Shareholder information
3C RETAIL Holding A/S, Odense, Denmark
36. Events after the balance sheet date
After the balance sheet date, the group has entered into a new bank agreement with a term of 3 to 4 years.
37. Authorisation of the annual report for issue
On 18 March 2024, 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
68
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
38. 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.
69
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2023-01-012023-12-312022-01-012022-12-31213800NSPC7WF9KB8G54Reporting class C, large enterpriseOpinionBasis for Opinion2024-06-282024-03-182024-03-18213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember213800NSPC7WF9KB8G542023-01-012023-12-31ifrs-full:SeparateMember213800NSPC7WF9KB8G542022-01-012022-12-31ifrs-full:SeparateMember213800NSPC7WF9KB8G542023-01-012023-12-31213800NSPC7WF9KB8G542022-01-012022-12-31213800NSPC7WF9KB8G542023-12-31ifrs-full:SeparateMember213800NSPC7WF9KB8G542022-12-31ifrs-full:SeparateMember213800NSPC7WF9KB8G542023-12-31213800NSPC7WF9KB8G542022-12-31213800NSPC7WF9KB8G542021-12-31ifrs-full:IssuedCapitalMember213800NSPC7WF9KB8G542022-01-012022-12-31ifrs-full:IssuedCapitalMember213800NSPC7WF9KB8G542021-12-31ifrs-full:OtherReservesMember213800NSPC7WF9KB8G542022-01-012022-12-31ifrs-full:OtherReservesMember213800NSPC7WF9KB8G542021-12-31ifrs-full:RetainedEarningsMember213800NSPC7WF9KB8G542022-01-012022-12-31ifrs-full:RetainedEarningsMember213800NSPC7WF9KB8G542021-12-31213800NSPC7WF9KB8G542022-12-31ifrs-full:IssuedCapitalMember213800NSPC7WF9KB8G542023-01-012023-12-31ifrs-full:IssuedCapitalMember213800NSPC7WF9KB8G542023-12-31ifrs-full:IssuedCapitalMember213800NSPC7WF9KB8G542022-12-31ifrs-full:OtherReservesMember213800NSPC7WF9KB8G542023-01-012023-12-31ifrs-full:OtherReservesMember213800NSPC7WF9KB8G542023-12-31ifrs-full:OtherReservesMember213800NSPC7WF9KB8G542022-12-31ifrs-full:RetainedEarningsMember213800NSPC7WF9KB8G542023-01-012023-12-31ifrs-full:RetainedEarningsMember213800NSPC7WF9KB8G542023-12-31ifrs-full:RetainedEarningsMember213800NSPC7WF9KB8G542021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800NSPC7WF9KB8G542022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800NSPC7WF9KB8G542021-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800NSPC7WF9KB8G542022-01-012022-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800NSPC7WF9KB8G542022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800NSPC7WF9KB8G542023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800NSPC7WF9KB8G542023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800NSPC7WF9KB8G542022-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800NSPC7WF9KB8G542023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800NSPC7WF9KB8G542023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800NSPC7WF9KB8G542021-12-31ifrs-full:SeparateMember213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember1213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember2213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember1213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember2213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember1213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember2213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember3213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember4213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember5213800NSPC7WF9KB8G542023-01-012023-12-31cmn:ConsolidatedMember6213800NSPC7WF9KB8G542022-01-012022-12-31cmn:ConsolidatedMemberiso4217:DKKxbrli:pure