Annual Report 2023
CVR No. 11456111
Egmont Fonden
Telephone: +45 7024 0000
Registered ofce: Copenhagen
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Contents
Management’s Review .......................................................................................................................... 4
Consolidated Financial Highlights ........................................................................................................ 4
Egmont in 2023 .................................................................................................................................. 5
Key Financial Figures for 2023 ............................................................................................................. 6
TV 2, Norway ...................................................................................................................................... 7
Nordisk Film ........................................................................................................................................ 9
Story House Egmont ........................................................................................................................... 11
Egmont Books .................................................................................................................................... 12
Egmont’s Grants ................................................................................................................................. 13
Egmont Fonden (parent entity) ............................................................................................................ 14
Corporate Social Responsibility............................................................................................................ 15
Outlook for 2024 ................................................................................................................................ 16
Foundation and Corporate Governance .............................................................................................. 17
Distribution Policy ............................................................................................................................... 17
Organisation ....................................................................................................................................... 17
Board of Directors and Management Board of Egmont Fonden ........................................................... 18
Consolidated Financial Statements
Income Statement of the Group .......................................................................................................... 20
Statement of Comprehensive Income of the Group ............................................................................. 21
Statement of Financial Position of the Group ....................................................................................... 22
Cash Flow Statement of the Group ...................................................................................................... 24
Statement of Changes in Equity of the Group ...................................................................................... 25
List of Notes to the Consolidated Financial Statements ......................................................................... 26
Notes to the Consolidated Financial Statements................................................................................... 27
Statements
Statement by the Board of Directors and Management Board .............................................................. 73
Independent Auditor’s Report ............................................................................................................. 74
Financial Statements of Egmont Fonden
Income Statement of Egmont Fonden ................................................................................................. 77
Statement of Financial Position of Egmont Fonden .............................................................................. 78
Statement of Changes in Equity of Egmont Fonden ............................................................................. 79
Notes of Egmont Fonden .................................................................................................................... 80
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Management’s Review
CONSOLIDATED FINANCIAL HIGHLIGHTS 2023 2022 2021 2020 2019
Key figures (EUR million)
Revenue 2,376.8 2,303.1 2,073.5 1,542.0 1,681.7
Prot before net nancials, depreciation,
amortisation and impairment losses (EBITDA)
284.0 255.9 390.2 224.6 249.6
Operating prot (EBIT) 84.2 81.1 255.9 97.8 125.3
Prot/(loss) from investments in associates 1.7 0.4 4.4 3.4 (32.2)
Net nancial income/(expense) from operation (6.7) 1.4 0.4 (4.8) (1.5)
Adjusted operating prot 79.2 82.9 260.7 96.4 91.6
Financial income and expenses, net (28.9) (14.4) (14.6) (16.4) (12.8)
Prot before tax (EBT) 50.4 67.1 245.6 84.8 80.3
Prot for the year 41.6 61.6 224.2 74.4 55.2
Total assets 2,451.7 2,545.2 2,500.4 1,948.6 1,885.7
Investments in intangible assets 121.5 129.6 89.7 60.5 76.5
Investments in property, plant and equipment 14.9 27.3 21.4 18.8 26.0
Net interest-bearing debt* 450.8 495.1 306.2 121.1 169.6
Equity ** 1,082.7 1,096.9 1,097.7 885.8 885.9
Cash generated from operations *** 269.0 218.3 301.3 223.2 255.2
Financial ratios ( %)
Operating margin 3.5 3.5 12.3 6.3 7.5
Equity ratio ** 43.9 42.5 43.3 44.8 46.8
Return on equity 3.5 5.6 22.3 7.8 6.3
Average number of full-time employees 6,220 6,201 5,376 4,310 4,264
* Including IFRS 16 leasing debt
** TheGrouphaschangedtheaccountingpoliciesregardingrecognitionofrevenuefromgiftcards.Comparativeguresfor2022hasbeen
restatedimpactingequitywith-2.6million,reducingtheequityratiofrom42.6%to42.5%.WerefertoNote1-AccountingPolicies,for
further description
***Calculatedbeforenetnancialsandtax.
Financial ratios stated above have been calculated in accordance with the Danish Finance Society’s “Recommendations &
Ratios”.
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Egmont is a leading Nordic media group with a dual purpose.
Every day we bring stories to life and we empower children
and youth at risk to pursue a good life.
Our stories matter to people and society. From the
entertaining to the in-depth, from paper to screens, from
24/7 news to Oscar winners. We are driven by the stories
that touch our hearts, enlighten, educate, inspire, create
communities and push for change.
With a strong entrepreneurial spirit in our DNA, we’re
constantly looking for new ways to share what is important
to us. Today we are more than 100 innovative companies
and brands that cover books, TV, magazines, movies,
games, cinemas, education, e-commerce, and agencies.
We are behind great companies such as Nordisk Film, Story
House Egmont, TV 2 in Norway, Lindhardt and Ringhof and
Cappelen Damm.
Our own story is about taking responsibility and giving back
to society. As an enterprise foundation we have spent part of
our prots to help others for more than 100 years. In 2023,
we donated 14.9 million EUR supporting children and young
people in completing an education and pursuing a good life.
Our commitment means that we will invest heavily in content
and continue to improve our sustainability performance.
EGMONT IN 2023
Consolidated revenue in 2023 grew by 3 % to all-time-
high EUR 2,377 million. EBIT amounted to EUR 84 million,
corresponding to an EBIT-margin of 3.5 %.
The result is satisfactory given the general macroeconomic
headwind with high ination giving cost increases on
especially paper and print, a global decline in the production
of computer games, lms and TV series, a dwindling
advertising market and considerable additional costs from
the introduction of VAT on TV news in Norway. Egmont
was also affected by the depreciation of the Norwegian and
Swedish currencies.
Despite these challenges in the market, Egmont had a good
year in terms of its output of movies, TV, computer games,
books and magazines. TV 2’s streaming service in Norway
reached record numbers of customers, licences at the
educational publishers rose to their highest-ever levels, the
digital agencies made progress, and the computer games
companies had more than 3.5 million users per month on
their own games.
Egmont continued its green transition. A solar plant in
Denmark with Egmont as a co-investor began operating
in 2023, and another in Sweden with Egmont as the sole
investor will open in 2024. Together, the solar plants will
cover approximately two-thirds of Egmont’s businesses
electricity consumption with renewable electricity.
TV 2 saw revenue decline in 2023 in EUR mainly related
to advertising, but in local currency revenue was up
10 % compared to 2022. Compared to last year TV 2 has
improved adjusted operating prot, but 2022 was a special
year with distributor conict and missing distribution
revenue up to 8 months. In 2023, TV 2 entered into a new
public broadcaster agreement and improved the number of
TV 2 Play subscribers.
Nordisk Film had a good year with all-time-high revenue with
all business areas - in particular Interactive had a strong year
with top-line growth of 47 %. However, adjusted operating
prot was down compared to 2022, due to write-down of
projects in Games.
Story House Egmont saw revenue decline in 2023 in EUR
mainly related to Media and e-commerce, but in local
currency revenue was on par with the year before. Adjusted
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operating prot decreased compared to 2022 especially
driven by Media where a restructuring program of EUR 3
million contributed negatively. Despite challenges in some
companies, e-commerce improved operating prot versus
2022. Agencies were faced with a more challenged market
in 2023.
In Egmont Books, revenue in Cappelen Damm was 17 %
down in EUR from all-time-high revenue in 2022 and 5 %
down in local currency primarily due to Retail and Education.
Adjusted operating prot decreased compared to the year
before due to higher cost especially on printing and paper
cost. In Lindhardt og Ringhof revenue was up 14 % compared
to 2022 driven by Education and Saga and operating prot
was better than last year. Lindhardt og Ringhof added 13,000
digital publications to its global catalogue of 130,000.
KEY FINANCIAL FIGURES FOR 2023
Revenue
Egmont’s revenue for 2023 amounted to EUR 2,377
million, an increase of 3 % in EUR and 12 % in local currency
compared to 2022. The growth is related to strong content
and products across Egmont’s businesses. It is the third year in
a row that revenue has increased. The increase was especially
driven by Nordisk Film Interactive and distribution revenue in
TV 2 while advertising, media and e-commerce revenue was
challenged compared to last year.
Earnings
Prot before net nancials, depreciation and amortisation
(EBITDA) amounted to EUR 284.0 million, corresponding to
an EBITDA margin of 11.9 % compared to a margin of 11.1 %
in 2022. Operating prot (EBIT) of EUR 84.2 million was EUR
3.0 million higher than 2022 but with swings across divisions.
Adjusted operating prot of EUR 79.2 million was EUR 3.7
million lower than 2022 driven by the negative development
in fair value of derivatives due to swings in currency.
The pre-tax prot (EBT) in 2023 amounted to EUR 50.4
million, a decrease of EUR 16.7 million compared to 2022.
EBT was negatively impacted by increasing net nancial
expenses due to the higher interest rate level. The result is
satisfactory given the general macroeconomic headwind
with high ination giving cost increases and is in line with the
expectations communicated in the annual report for 2022.
Tax on prot for the year amounted to an expense of EUR 8.8
million, corresponding to an effective tax rate of 17 %.
The net prot for the year was EUR 41.6 million in 2023
against EUR 61.6 million in 2022.
Balance sheet
Total assets amounted to EUR 2,451.7 million compared to
EUR 2,545.2 million in 2022. The decrease is mainly caused
by exchange rates adjustments.
Net interest-bearing debt amounted to EUR 450.8 million
compared to EUR 495.1 million in 2022.
Equity at the end of 2023 amounted to EUR 1,082.7 million
compared to EUR 1,096.9 million last year. Equity was
affected by positive earnings and positive value adjustments
of hedging instruments, but off-set by foreign exchange
adjustments on translation of foreign entities (lower SEK and
NOK exchange rates) and donations.
Return on equity was 3.5 % compared to 5.6 % in 2022. The
equity ratio at the end of 2023 came to 43.9 % compared to
42.5 % in 2022.
Cash flow
Cash generated from operations amounted to EUR 269.0
million against EUR 218.3 million in 2022. Cash ows from
investing activities amounted to an expense of EUR 139.6
million, primarily regarding acquisition of lm rights and
other rights.
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TV 2, Norway
Revenue in 2023: EUR 637 million (2022: EUR 653 million)
Adjusted operating profit in 2023: EUR 16 million (2022: EUR 8 million)
Employees in 2023: 1,230 (2022: 1,165)
TV 2 is a commercial public service broadcaster with a unique
content portfolio of news, sports, local programming, and
international lms and series. The public broadcaster channel
TV 2 Direkte and the 24/7 news channel TV 2 Nyheter
are leading TV channels, and TV 2 Play is the most used
commercial streaming service in the Norwegian market. TV 2
also operates TV2.no, one of the most popular online news
sites.
Revenue for 2023 totaled EUR 637 million, a decrease
from EUR 653 million in 2022 that can be attributed to the
depreciation of the Norwegian krone (NOK). In local currency,
TV 2’s revenue grew 10%. In 2023, protability was affected
by a combination of factors; the government’s decision to
abruptly impose VAT on digital news services, general cost
increases, a declining advertising market, and a weakened
Norwegian currency. Cost-reductions were implemented
during 2023 that will take full effect from 2024. Adjusted
operating prot was up by EUR 8 million on 2022, as 2022
was impacted negatively by distribution conict.
In 2023, TV 2 strengthened its competitive and strategic
position and entered into a new public service broadcaster
agreement that grants TV 2 a continued remit as a
commercial public broadcaster for the period 2024 through
2028.
TV 2 CONTENT
2023 was a strong content year for TV 2 with in-depth,
24-hour news coverage of e.g. local elections, extreme
weather events, and international conicts such as the wars
in Ukraine and the Middle East. Both established and brand-
new concepts delivered strongly, with Kompani Lauritzen
(Celebrity Task Force) returning for its fourth season,
garnering an average viewership of more than one million
per episode across TV 2 Play and TV 2 Direkte combined. New
shows such as AsbjørnsJulekalender (Asbjørn’sChristmas
Calendar), Kokkeskolen (Chef’sAcademy) and documentary
series Petter–Deringenvilbo (Petter–Wherenoone
wants to live) were met with a positive reception from TV 2’s
audience.
TV 2 CHANNELS
As a result of high-quality local programming, TV 2 increased
its share of the commercial TV market from 51.2 % in 2022
to 54.4 % in 2023. Total market share reached 27.8 %, up by
2.3 percentage points on 2022.
TV 2’s public service channel, TV 2 Direkte, demonstrated
high ratings on several agship concepts and contributed to
the growth in total market share of 0.3 percentage points to
17.3 %. The sports channels combined achieved an increase
of 0.7 percentage points to 2.1 % – partly due to the return
of Eliteserien. TV 2 Zebra contributed with an increase in total
market share of 0.6 percentage points to 2.6 %. TV 2 Nyheter
continued to do well with a total market share of 4.1 %, an
increase of 0.2 percentage points from 2022.
TV 2 PLAY
TV 2 Play’s subscriber base grew substantially through
2023 as a result of strong content offerings as well as new
distribution agreements. Through these agreements, TV
2 Play is included in all basic TV packages and on-demand
viewing, including catch-up, takes place on TV 2 Play. The
launch of Norwegian football, Eliteserien, on TV 2 Play
and the exclusive OTT distribution agreement between
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TV 2 Play and Disney+, the rst of its kind on a global
basis, also contributed to subscriber growth. The daily use
of TV 2 Play continued to be among the highest in the
market. For several months of the year, TV 2 Play was the
most-watched commercial streaming service surpassing its
global competitors.
Following the expiration of the Premier League rights in
2022, TV 2 Play had its rst year in 2023 with a combination
of rights to Eliteserien and Champions League that enabled
TV 2 Play to establish a solid basis of premium subscribers
with potential for further expansion.
TV2.NO
TV2.no experienced additional growth in its market share
in 2023. Compared to Q1 and Q2 of 2022, TV2.no saw an
increase in daily users by 18.3 % and 11.8 %, respectively,
whereas main competitors registered a decline in the same
period. In Q3 and Q4, TV2.no saw stable trafc development.
Despite a reduction in media spend in the Norwegian
market, 2023 witnessed a rise in advertising sales for TV2.no
compared to 2022.
RIKSTV
RiksTV operates as a distributor of pay TV channels in the
Norwegian digital terrestrial TV network with additional
operations in the ber and streaming market. Serving
approximately 250,000 customers, RiksTV continued to
experience growth in streaming and ber markets while
seeing an expected decline in the digital terrestrial sector.
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Nordisk Film
Revenue in 2023: EUR 729 million (2022: EUR 573 million)
Adjusted operating profit in 2023: EUR 37 million (2022: EUR 51 million)
Employees in 2023: 2,012 (2022: 2,007)
Nordisk Film is a leading Nordic entertainment company
focused on storytelling in lms, series, and games across
platforms.
Revenue in 2023 reached an all-time high of EUR 729 million,
compared to EUR 573 million in 2022, with all business areas
contributing. Adjusted operating prot was down in 2023
due to overall increased costs and write-downs of projects
in the game studios. Cost-reductions were implemented
in the content production and games divisions to counter
tough market conditions with broadcasters, streamers, and
game publishers holding back and commissioning fewer new
projects.
FILM & SERIES
Nordisk Film provides Nordic consumers with high-quality
lm and series through its own and associated production
companies and through collaborations. Performance was up
on 2022 driven by a versatile title line-up and solid sales.
Nikolaj Arcel’s ThePromisedLand produced by associated
company Zentropa sold nearly 250,000 cinema tickets in
Denmark and won three awards including Best Actor at the
European Film Awards. Fully owned Nordisk Film Production
premiered a range of lms throughout 2023. In Denmark,
The Land of Short Sentences, Before It Ends, The Kiss, Tove’s
Room, Nightwatch:DemonsareForever, and Unruly sold 1.3
million tickets collectively – constituting more than half of
the total ticket sale for all Danish lms in 2023. In Sweden,
SecondAct was one of the year’s most viewed lms. In
Norway, Christmas on Cobbler Street sold approx. 400,000
tickets while Narvik sold 530,000 tickets and became number
one when Netix released the lm globally outside Norway.
Nordisk Film distributed and marketed a total of 60 local and
international titles across the Nordics in 2023. Among them,
The Hunger Games prequel Ballad of Songbirds and Snakes
sold 550,000 tickets and JohnWick4 sold 430,000 tickets.
CINEMAS
Nordisk Film Cinemas is a leading cinema chain in the Nordics
and was named International Exhibitor of the Year Award at
CineEurope in 2023. A cinema in Sarpsborg, Norway, opened
at the beginning of 2023, and the chain now operates a
total of 46 cinemas – 23 in Denmark, 21 in Norway, and 2 in
Sweden.
In 2023, lm supply was still partially impacted by the Covid-
19 pandemic and a shortage of international titles, however,
lms like Barbie and Oppenheimer demonstrated signicant
theatrical demand. Nevertheless, total ticket sales for
cinemas remained below pre-Covid-19 levels. The lm supply
for the year also felt repercussions of an extended writers’
and actors’ strike in the US – with potential implications
extending into 2024’s lm line-up. Nordisk Film Cinemas
launched a new cinema subscription – rst of its kind in
Scandinavia – and its media business had a solid performance
with notably strong results.
GAMES
Nordisk Games owns and co-owns six game studios:
Avalanche Studios Group, Supermassive Games, Flashbulb
Games, associated company Star Stable Entertainment,
minority owned MercurySteam, and Nitro Games that
following dilution transitioned to a minority position. The
portfolio of companies saw solid growth for the year with
revenues from Supermassive Games fully consolidated in
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2023 after acquisition of all shares in mid-2022. Protability
was, however, affected by write-downs of projects.
Avalanche Studios Group had a record-breaking year with
theHunter:CalloftheWild, the world’s largest hunting
game. Supermassive Games announced several new
development deals. Star Stable Entertainment expanded its
reach by launching its online adventure horse game on the
Android platform. Flashbulb Games continued to expand
Trailmakers and Rubber Bandits, while MercurySteam worked
on two large undisclosed titles.
Nordisk Interactive is the ofcial distributor of Sony
PlayStation in the Nordic and Baltic countries. In 2023, the
PlayStation 5 (PS5) had the third full year in the market with
free availability from March 2023 generating strong sales
after a couple of years of supply constraints. The biggest
exclusive PlayStation game in 2023 was Spiderman2.
PlayStation VR2 was launched in February, and towards
the end of 2023, the PS5 received a new look with the Slim
console.
GIFTING
The gifting company GoGift achieved overall growth in
2023. While the Nordic markets were impacted by weakened
currencies, the global segments showed robust growth
especially towards the end of the year. GoGift has sales in
more than 60 countries since the recent launch of The Global
Gift Card.
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Story House Egmont
Revenue in 2023: EUR 797 million (2022: EUR 853 million)
Adjusted operating profit in 2023: EUR 23 million (2022: EUR 31 million)
Employees in 2023: 1,934 (2022: 2,045)
Story House Egmont is a leading Nordic media, agency,
and e-commerce company which is behind well-known
magazines, provides inspiration, insights and products to
consumers in niche areas, and supports clients in building
brands in the digital world.
In 2023, revenue amounted to EUR 797 million compared
to EUR 853 million in 2022, in local currencies revenue was
on-par with 2022. Adjusted operating prot was EUR 23
million, a decline from 2022 related to high ination, reduced
consumer condence, increased costs, and restructuring.
MEDIA
Story House Egmont’s media business is focused on
magazine publishing and contributes to a diverse and high-
quality content-based media landscape in 24 countries across
the Nordics, Europe, and some other international markets.
The media business also has a range of digital media, digital
services, and lifestyle sites. The media brands reach millions
of consumers every day, and the magazines raised a variety of
important agendas throughout 2023.
Overall, the media business demonstrated solid performance
although especially the consumer categories experienced
lower sales. Kids publishing delivered the strongest perfor-
mance, including with Asterix and Disney. Cost-reductions
were implemented particularly in the Norwegian media
business to mitigate declining market trends.
E-COMMERCE
Story House Egmont’s leading Nordic e-commerce companies
covers ve areas: Outdoor, Parenting, Home & Interior, Health
& Beauty, and Hobby. The companies strive to be category
experts, offering inspiration, communities, and customised
experiences. The e-commerce companies are: Fjellsport
(Skittske was integrated in Fjellsport in 2023), Outnorth,
Bagaren och Kocken (including KitchenOne), Royal Design
Group (including Rum21 and Andlight), Nicehair, and the
minority-owned companies Jollyroom and Med24.
In 2022, following pandemic tailwind, Story House Egmont
experienced decreasing sales and prot levels in the
e-commerce business although with substantial differences
among businesses and markets. The trend was more positive
in late 2023, and some of the portfolio companies performed
substantially better in 2023 compared to 2022 while others
were still affected by lower sales.
AGENCIES
Story House Egmont has agencies that operate within
Performance Marketing, B2B/inbound marketing and Digital
full-service. All agencies work actively to connect brands
and consumers in an increasingly digital world and thereby
help other companies tell their stories and build strong
brands. The agency portfolio continues to develop through a
combination of organic growth and targeted M&A activities.
The agencies are: Ingager, s360 (including Helion), Klintberg/
Niléhn, Markedspartner, KAN, and OKTO. In 2023, s360
acquired London-based Reload Digital. Total revenue was up,
but some agencies experienced lower activities and a margin
decrease. Overall, protability was still strong with a double-
digit average EBIT margin.
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Egmont Books
Revenue in 2023: EUR 217 million (2022: EUR 224 million)
Adjusted operating profit in 2023: EUR 16 million (2022: EUR 13 million)
Employees in 2023: 902 (202: 850)
Egmont Books comprises the two publishing houses
Cappelen Damm in Norway and Lindhardt og Ringhof in
Denmark. Revenue in 2023 amounted to EUR 217 million
compared to EUR 224 million in 2022, but a growth of 4 %
was realised when measured in local currency. Adjusted
operating prot was up by EUR 3 million on 2022.
CAPPELEN DAMM
Cappelen Damm is Norway’s largest publishing house,
and it develops, sells, and distributes analogue and digital
publications in all genres of both general publishing and
educational publishing for all teaching levels. Cappelen
Damm owns the distribution company Sentraldistribusjon,
and it co-owns the audiobook streaming service company
Storytel Norway AS. In 2023, Cappelen Damm launched
more than 3,000 new publications – hardcover editions,
digital teaching material, audiobooks, e-books, and
paperbacks – which, according to The Norwegian Publishers
Association’s Industry Statistics, corresponds to almost 40 %
of all book publications in Norway.
In 2023, Cappelen Damm saw a slight decrease in revenue
compared to an all-time-high in 2022. This can primarily be
attributed to the reforms of education material for primary
and secondary school in previous years which generated
extra sales. Despite the reform already implemented, digital
education registered double-digit revenue growth in 2023,
while general publishing registered growth in audiobooks
but lower sales of physical books. Energy prices increased
the cost of paper and printing to new high levels, impacting
Cappelen Damm’s overall result.
Cappelen Damm published a range of bestselling titles
in 2023, among them Atlas by Lucinda Riley and Harry
Whittaker, Å vanne blomster om kvelden by Valerie Perrin,
BukkeneBruseogjulenissenby Bjørn Rørvik, andHaakon:
historier om en tronarving a biography on the Norwegian
Crown Prince Haakon. Cappelen Damm author Ingvar
Ambjørnsen won the prestigious Brage Honorary Award.
In November 2023, the Norwegian Competition Tribunal
decided that the Norwegian Competition Authority’s case
against Bokbasen and its owners, four publishing houses
including Cappelen Damm, was based on a misinterpretation
of the market and that there was no violation of the
competition law.
LINDHARDT OG RINGHOF
Lindhardt og Ringhof increased its revenue through organic
growth and acquisitions and is now one of the two market
leaders in Denmark. Since 2017, Lindhardt og Ringhof
has doubled its revenue. In 2023, Lindhardt og Ringhof
won a lawsuit led by Gyldendal regarding digital rights to
translations of older publications, where the court sided with
Lindhardt og Ringhof.
Lindhardt og Ringhof published more than 600 new titles
in the Danish market in 2023 and among the signicant
releases were American author Bret Easton Ellis’s The Shards,
German author Ulrikke Herman’s The End of Capitalism, and
the Pulitzer Prize winning American novel Trust by Hernan
Diaz. Non-ction books such as Eva Ravnbøl’s Guds eget
køkken, Anja C Andersen’s Detgådefuldeunivers and Dorthe
Bomann’s conversation book with Niels Hausgaard, Nårvi
ånderitakt, took top positions on the bestseller lists.
Lindhardt og Ringhof’s digital and international publisher
Saga released local and international audiobooks and
e-books in eleven languages in 2023, and it added 13,000
digital publications to its global catalogue of now 130,000
digital publications overall. Saga launched various Danish
authors internationally and concluded several major
collaboration agreements.
Lindhardt og Ringhof’s educational business grew substanti-
ally through the integration of Clio (acquired August 2022)
into the imprint Alinea.
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Egmont’s Grants
In Scandinavia, there is equal access to education – but not
equal opportunities to complete it. Children at risk have
signicantly lower chances of nishing primary school. The
differences that exist between children early on in their lives
form the basis for life-long inequity.
As a foundation, Egmont supports children and young
people at risk. Those growing up in poverty or placed in
foster care, those who nd learning particularly difcult,
those who live with illness or social challenges. We support
children from birth until they are well underway with a youth
education. We work for all children and young people to
have a safe start in life, thrive, learn through school, and be
part of their respective children’s communities. Our aim is to
ensure that everyone completes their youth education, which
will prepare them well for creating a fullling life.
In 2023, Egmont granted a total of EUR 14.9 million via 28
grants. In sum, since 1920 approx. EUR 520 million (present
value) has been donated.
NEW SIGNATURE PROGRAMME
In 2023, Egmont initiated a new signature project, SygtStærk
(StayStrong), supporting seriously ill young people in com-
pleting a youth education. With a strong focus on involving
the young people themselves, SygtStærk has launched a life
skills program, a mentoring scheme, and a social community
in 2023. The vision for SygtStærk is to expand nationwide.
MATHEMATICS SUPPORT
One of seven pupils in primary school struggle with
mathematics. The 2023 Egmont Report documented that
the difculties have severe negative long-term consequences
in terms of completing an education and nding a job. The
Egmont Report received substantial media coverage and,
together with children featured in the report, Egmont’s
Grants Administration met with the Danish Minister of
Children and Education to advocate for more and better
support for children with math difculties.
CONSEQUENCES OF CHILD POVERTY
Based on Egmont’s legacy of combating child poverty, we
focused on the negative consequences of growing up in
poverty in 2023. Egmont launched a new report on the
lack of positive activities for children in poverty during their
summer vacation and debated the issue at the Danish
Folkemødet(People’sMeeting). Through the Helping Hand
Programme Egmont provided direct support for children and
young people at risk through partnership organisations in
Denmark, Norway, and Sweden.
NEW GRANTS FOR PATERNITY LEAVE
Based on knowledge from the Egmont Rapport 2022,
Egmont donated four grants in 2023 supporting paternity
leave. The aim of these grants is to strengthen the early
attachment between the infant and the father to benet the
child’s early development and well-being.
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ACTIVITIES IN SWEDEN AND NORWAY
Since 2009, Egmont has had charitable activities in Norway
and from 2021 also in Sweden. In 2023, support was granted
in Norway through the HelpingHandProgramme and a
partnership with Kronprinsparets Fond (The Crown Prince
Couple’s Foundation). In Sweden, Berätterministeriet, that
aims to strengthen pupils at the most vulnerable schools in
Malmö, was launched.
NORDISK FILM FONDEN
Nordisk Film Fonden is part of the Egmont foundation and
contributes to the creation of world-class lm talents. In
2023, Nordisk Film Fonden donated EUR 1.0 million. The
scholarships StoreIsbjørn and LilleIsbjørn were awarded to
67 lm talents to study abroad; and for initiatives stimulating
the cinematic narrative and use of virtual production
tools donations included the lm tech conference Picture
This_23, the talent programme Super16, Vizarts AI &
Filmmaking Labs, and a new initiative in Norway, thePolar
Bear’sWritingCamp. The Nordisk Film Award in Denmark
went to documentary director Lea Glob and in Norway to
scriptwriter/director Kristoffer Borgli. The Balling Award went
to scriptwriter Mette Heeno and the Ove Sprogøe Award to
actor Jacob Lohmann.
Egmont Fonden (parent entity )
The prot reported by Egmont Fonden, the parent entity
of the Egmont Group, excluding dividends from equity
investments in subsidiaries, was EUR 6.1 million (2022: 2.0
million) due to increased interest income. Egmont Fonden’s
commercial activities primarily comprise royalty income from
the Foundation’s publishing rights and management of the
Foundation’s assets. For 2024, Egmont Fonden expects an
unchanged prot excluding dividends.
15
Corporate Social Responsibility
The highlights from Egmont’s Sustainability Report 2023 are
set out below.
GO GREENER
Egmont’s Go Greener strategy describes Egmont’s ambitions
to contribute to a low-carbon economy and a better
planet for future generations. Egmont’s greenhouse (GHG)
emissions from scope 1 and 2 (market-based) and selected
scope 3 categories have decreased from 52,273 tCO2e in
2022 to 45,965 tCO2e in 2023 (-12%). From 2022, Egmont
has matched its total electricity consumption (scope 2)
with 100% renewable electricity, which has signicantly
decreased Egmont’s emissions (market-based) from own
operations. During 2023, Egmont has worked on its selected
scope 3 focus areas and set reduction targets for key scope 3
categories in two divisions. Going forward, Egmont will set
robust GHG emission reduction targets for scope 1, 2 and 3
aligned with the Paris Agreement and continue preparing for
CSRD reporting.
BUSINESS ETHICS AND ANTI-CORRUPTION
Egmont’s Business Ethics Policy incorporates a wider range
of legal compliance areas, and it is an overall umbrella to
communicate compliance policies and how Egmont expects
all managers and employees to act. The Business Ethics
e-learning presents the employees with dilemmas and cases,
which they may encounter in their daily business. The training
is automatically assigned to all relevant new employees
and Egmont runs regular refresher training for all relevant
employees and conducts training on certain topics based on
a risk assessment.
WHISTLEBLOWING POLICY AND SYSTEM
Egmont has a whistleblowing policy which can be accessed
online by employees in Egmont and by external parties
(via Egmont.com). In 2023, only one whistleblower report
was submitted in Egmont’s whistleblowing system. No
compliance issues were identied and the matter has been
closed.
DATA PROTECTION, ETHICS AND SECURITY
Egmont has implemented a group-wide, general framework
for ongoing GDPR compliance, and its businesses continue to
actively implement GDPR compliance into the way they work.
Egmont also has a group-wide Information Security Policy,
and all employees are educated in general information
security on an annual basis. Finally, Egmont has introduced
a policy on data ethics to ensure that Egmont companies
manage data in an ethical way. The principles in the policy
are universal and relevant across Egmont but currently it only
applies directly to all 100 % owned Danish companies.
EGMONT SOCIAL COMPLIANCE
Egmont’s approach to social compliance is guided by
Egmont’s Supplier Code of Conduct that is aligned with
UN Global Compact’s ten principles and covers topics
related to human rights, labour rights, environment and
anti-corruption. The Supplier Code of Conduct sets out our
minimum requirements on responsible business practices
for our business partners and suppliers, while the Egmont
Social Compliance Programme denes processes and
16
practices on how to ensure compliance and how to mitigate
non-compliance issues at our direct suppliers and selected
sub-suppliers. During 2023, Egmont continued to monitor its
manufacturers’ social compliance level via social audits, and
on-going dialogue to remedy audit ndings. During 2023,
Egmont has evaluated 197 social audit reports and self-
assessment questionnaires.
EMPLOYEE ENGAGEMENT
Egmont’s leaders are vital to the well-being and development
of its people, and it is crucial for Egmont’s continued success
that its leaders understand how to guide their employees
through the rapid changes in business models. Therefore,
Egmont continues to invest in leadership training, which
aims at unfolding Egmont’s strategy in a set of key leadership
principles. By the end of 2023, a total of 822 leaders from
across the businesses have completed the ‘Committed
to Lead’ programmes during a period of seven years and
more leaders are lined up for the programmes in 2024.
Egmont’s engagement remains at a high level, both in
terms of participation rate in surveys (87 %) and the overall
engagement level (8.0 on a 10-point scale) according to the
latest survey in September 2023.
GENDER COMPOSITION IN MANAGEMENT
In accordance with section 99b of the Danish Financial
Statements Act, Egmont Fonden has set targets for gender
composition in the board of directors. The target for the
board of directors of at least 2 female board members
out of 6 (33.3 2023 . As that constitutes
management levels consist of Management Board and one
people manager employed by Egmont Fonden, in total 3
persons. The underrepresented gender constitutes 33.3 %.
In 2023, Egmont Fonden set the target that by 2028 no
gender is underrepresented in the other management levels
below the board of directors irrespective of employer (legal
entity). The Management Board has established a Corporate
Management Board, which undertakes the day- to -day
management. The Corporate Management Board consists
of 14 members including the members of the Management
Board. The Corporate Management Board has a gender split
of nine men and ve women, where the underrepresented
gender constitutes 35.7 %.
Outlook for 2024
2024 is a very unpredictable year with much uncertainty on
macro level and low consumer condence. Further, both
ination and prices for raw materials is increasing. Egmont is
overall expecting the same activity level (revenue) and a slight
decrease in EBT compared to 2023.
Egmont will carry on developing media platforms,
continuously adapting its media products to changing
consumer needs and new technology and run protability
programmes and efciency-enhancing measures. The
greatest uncertainty is associated with advertising revenue,
which is sensitive to economic uctuations and changes in
consumer habits, development in circulation of magazines
and consumer demands that impacts sales in especially the
e-commerce business.
17
Based on the legal requirements in Egmont Fonden’s charter
as well as the most recent recommendations from the
Committee on Foundation Governance and the Committee
on Corporate Governance, the board of directors and
the management board have established the governance
framework for Egmont.
In general, Egmont Fonden adheres to the Danish
Recommendations on Foundation Governance and
complies with most of the recommendations. Egmont
Fonden’s Statutory Report on Foundation Governance for
the nancial year 2023 can be reviewed and downloaded
at: www.egmont.com/foundationgovernance. The report
includes a full description of Egmont’s approach to each of
the recommendations from the Committee on Foundation
Governance.
The Board of Directors has also prepared a Report on
Corporate Governance for the nancial year 2023 based on
the Recommendations on Corporate Governance. The report
can be reviewed and downloaded at: www.egmont.com/
corporategovernance.
DISTRIBUTION POLICY
The Board of Directors has set the framework for distributing
donations in the charitable strategy for 2022-2025. During
the year, the Grants Secretariat presented individual pro-
posals for donations to be distributed within that framework
to the Board of Directors.
Egmont Fonden’s Statutory Report on Distribution Policy,
cf. section 77b of the Danish Financial Statements Act,
can be reviewed and downloaded at: www.egmont.com/
distributionpolicy.
ORGANISATION
At the annual meeting in March 2023, Lars-Johan Jarnheimer
resigned from the board and Rebekka Glasser Herlofsen was
appointed to the board for a four-year period. Merete Eldrup
Foundation and Corporate Governance
was appointed Chair of the board and Per Bank Vice Chair.
In June 2023, Per Bank resigned from the board, and Tom
Knutzen was appointed to the board for a four-year period
and also appointed Vice Chair of the board.
In January 2023, elections were held for employee
representatives to the board and the employees elected
Anna von Lowzow (re-election), Peder Høgild (re-election)
and Jesper Lyders Andersen (newly elected) as employee
representatives. They were all elected for a four-year period
starting March 2023.
Egmont Fonden’s charter requires that the board members
elected on the basis of the charter have relevant skills to
manage the commercial and charitable activities carried
out by the foundation. The board members must also
have sufcient understanding of the main markets in
Scandinavia. Board members must collectively have relevant
experience from both foundation and business activities
as well as management of companies. At least three board
members must have signicant commercial experience
from longstanding management positions or similar
positions in society in Scandinavia, and at least two of these
members must have obtained the experience in one or more
companies or institutions in Denmark. In that connection, the
board has assessed that its members must collectively have
relevant experience from and with international business and
management, nance and reporting, enterprise foundations,
digital business and marketplaces, mergers & acquisitions,
media, strategy design and implementation, growth markets,
ESG, digital transformation and performance management.
In 2023, the Board of Directors established an Audit
Committee.
18
Management’s Review
BOARD OF DIRECTORS AND MANAGEMENT BOARD
OF EGMONT FONDEN
Merete Eldrup (Chair)
2 3 5 6
Director, born 1963, appointed 2020, election period
expires 2024
Member of the board of Egmont International Holding A/S,
University of Copenhagen (C), Nykredit Realkredit A/S (C),
Nykredit Holding A/S (C), Kalaallit Airports International and
Molslinjen A/S.
Specialcompetences:media,nance,strategy,management
Participated in 7 out of 7 board meetings.
Tom Knutzen (Vice Chair)
1 3 5 6 7
Professional board member, born 1962, appointed
2023, election period expires 2027
Member of the boards of Egmont International Holding
A/S, FLSmidth & Co. A/S (C), Tivoli A/S (C), Jeudan A/S (VC),
Givaudan S.A., Switzerland and Jungbunzlauer Holding AG,
Switzerland,
Specialcompetences:management,internationalbusiness,
innovation,nance,M&Aandstrategy
Participated in 4 out of 4 board meetings.
Dr. Martin Enderle
1 3 5
Born 1965, appointed 2014, election period expires
2026
Member of the boards of Egmont International Holding A/S,
Delivery Hero SE (C), Germany; Chrono24 GmbH, Germany;
Senior Advisor to atHome Group, Luxembourg and McKinsey
& Co.
Specialcompetences:internationalmanagementexperience,
growthmarkets,digitalmarketplaces,classieds,food
delivery,mergers&acquisitions,venturecapital,strategy
implementation
Participated in 7 out of 7 board meetings.
Josh Bottomley
1 3 5
CEO, dunnhumby, UK, born 1967, appointed 2017,
election period expires 2025
Member of the board of Egmont International Holding A/S
Specialcompetences:internationalbusinessand
managementexperience,digitaltransformation,strategy
design and implementation
Participated in 6 out of 7 board meetings.
Christian Wegner
1 3 5
CEO, Südwestdeutsche Medienholding (SWMH),
Germany, born 1974, appointed 2017, election period
expires 2025
Member of the board of Egmont International Holding A/S
Specialcompetences:internationalbusinessand
managementexperience,performancemanagement,
portfoliomanagement,strategyandexecution,digital
transformation,growthmarkets,M&A,venturecapital
Participated in 7 out of 7 board meetings.
Rebekka Glasser Herlofsen
2 3 5 7
Independent consultant, investor and professional
board member, born 1970, appointed 2023, election
period expires 2027
Member of the board Egmont International Holding A/S,
Norwegian Hull Club, Norway (C), Handelsbanken Norge,
Norway (C), DNV Council, Norway (C), Wilh. Wilhelmsen
Holding ASA, Norway, Equinor ASA, Norway, BW Offshore
ASA, Norway, Torvald Klaveness Group AS, Norway,
Rockwool A/S, Denmark.
Specialcompetences:nancialexpertandboardcertied
within ESG.
Participated in 4 out of 5 board meetings.
19
Management’s Review
Peder Høgild
1 4
Media operator, Nordisk Film Biografer, born 1958,
elected 2019, election period expires 2027
Participated in 6 out of 7 board meetings.
Jesper Lyders Andersen
1 4
Editor in chief, Praxis A/S, born 1986, elected 2023,
election period expires 2027
Participated in 5 out of 5 board meetings.
Anna von Lowzow
2 4
Journalist and director, Nordisk Film Production A/S,
born 1961, elected 2016, election period expires 2027
Participated in 7 out of 7 board meetings.
Management Board
Steffen Kragh
President and CEO, born 1964
Member of the boards of Lundbeckfonden (C),
Lundbeckfond Invest A/S (C), Tryg A/S (VC), Tryg Forsikring
A/S (VC)
Chair, Vice Chair or member of boards of Egmont Group
companies
Hans J. Carstensen
Executive Vice President and CFO, born 1965
Member of the board of Statens Ejendomssalg A/S (Freja
Ejendomme A/S) (C)
Chair, Vice Chair or member of boards of Egmont Group
companies
All information as of 6 March 2024.
C: Chair
VC: Vice Chair
None of the board members own shares, options, warrants
or similar in the foundation’s subsidiaries, joint ventures and
associated companies.
No members are appointed by authorities or providers of
grants etc.
1
Male
2
Female
3
Independent board member
4
Employee representative, commercial activities
5
General and charitable activities
6
Funding and Grant Committee
7
Audit Committee
20
Income Statement of the Group
Income Statement of the Group
(EURk)
Note 2023 2022
2 Revenue 2,376,804 2,303,063
3 Other operating income 24,768 29,779
Raw materials and consumables (785,926 ) (697,380 )
Other external expenses (788,597 ) (873,382 )
4 Personnel expenses (536,801 ) (501,842 )
5 Depreciation, amortisation and impairment losses (199,817 ) (174,803 )
Other operating expenses (6,313 ) (6,410 )
14 Prot/(loss) after tax from investments in joint ventures 75 2,121
Operating profit 84,193 81,146
15 Prot/(loss) after tax from investments in associates 1,665 434
6 Net nancial income/(expense) from operation (6,618 ) 1,326
Adjusted operating profit 79,240 82,906
7 Financial income 2,232 85
8 Financial expenses (31,091 ) (15,859 )
Profit before tax 50,381 67,132
9 Tax on prot for the year (8,774 ) (5,537 )
Net profit for the year 41,607 61,595
Net prot for the year attributable to:
Egmont Fonden 38,245 60,162
Non-controlling interests 3,362 1,433
Total 41,607 61,595
21
Statement of Comprehensive Income of the Group
Statement of Comprehensive
Income of the Group
(EURk)
Note 2023 2022
Profit for the year 41,607 61,595
Items that will not be reclassified to the income statement
in subsequent periods:
Actuarial gains/(losses) on dened benet pension plans (1,037 ) 712
Other equity transactions in joint ventures and associates (2,840 ) 1,742
Tax on items that will not be reclassied to the income statement
in subsequent periods
(3,402 ) 2,297
Items to be reclassified to the income statement
in subsequent periods:
Foreign exchange adjustments on translation to presentation currency (2,851 ) (121 )
Foreign exchange adjustments on translation of foreign entities (48,127 ) (63,655 )
20 Net value adjustment of hedging instruments 15,627 34,163
Tax on items to be reclassied to the income statement
in subsequent periods
(3,069 ) (6,784 )
(38,420 ) (36,397 )
21 Other comprehensive income after tax (41,822 ) (34,100 )
Total comprehensive income (215 ) 27,495
Total comprehensive income attributable to:
Egmont Fonden (3,600 ) 26,428
Non-controlling interests 3,385 1,067
Total (215 ) 27,495
22
Statement of Financial Position of the Group at 31 December
Statement of Financial Position
of the Group at 31 December
(EURk)
Note Assets 2023 2022
Film rights and other acquired rights 121,398 125,247
In-house produced rights 45,048 71,942
Goodwill 784,462 807,283
Trademarks 190,364 200,348
Intangible assets in progress and prepayments for lm rights 24,398 28,579
10 Intangible assets 1,165,670 1,233,399
Land and buildings 115,980 121,474
Plant and machinery 26,316 28,973
Tools and equipment 18,411 22,090
Leasehold improvements 10,714 10,190
Property, plant and equipment under construction 3,234 2,763
11 Property, plant and equipment 174,655 185,490
12 Investment properties 45,066 45,003
13 Lease assets 143,668 154,440
14 Investments in joint ventures 28,624 36,724
15 Investments in associates 115,527 118,888
Other investments 5,366 7,137
28 Receivables from joint ventures and associates 3,711 1,684
23 Deferred tax 11,101 5,284
Other non-current assets 164,329 169,717
Total non-current assets 1,693,388 1,788,049
16 Inventories 192,497 202,381
27 Trade receivables 265,661 245,946
28 Receivables from joint ventures and associates 1,265 2,851
Other receivables 96,866 101,669
17 Prepayments 157,099 146,199
Receivables 520,891 496,665
18 Cash and cash equivalents 44,902 58,062
Total current assets 758,290 757,108
TOTAL ASSETS 2,451,678 2,545,157
23
Statement of Financial Position of the Group at 31 December
Statement of Financial Position
of the Group at 31 December
(EURk) (Continued)
Note Equity and liabilities 2023 2022
Capital fund 29,519 29,583
Retained earnings and other reserves 1,045,935 1,052,263
Egmont Fonden’s share of equity 1,075,454 1,081,846
Non-controlling interests 7,274 15,016
19 Equity 1,082,728 1,096,862
22 Pension obligations and similar obligations 1,473 2,234
23 Deferred tax 39,663 34,954
24 Other provisions 18,584 39,920
27 Mortgage debt 111,040 111,285
27 Other credit institutions 162,852 236,298
27 Lease liabilities 138,840 153,869
Other payables 18,870 25,149
29 Deferred income 6,881 5,308
Non-current liabilities 498,203 609,017
27 Other credit institutions 48,709 17,183
27 Lease liabilities 37,604 35,988
Prepayments from customers 51,151 49,735
27 Trade payables 307,068 302,918
27, 28 Payables to joint ventures and associates 375 191
Corporate income tax 2,506 11,866
Other payables 230,808 206,650
24 Other provisions 99,556 102,347
29 Deferred income 92,970 112,400
Current liabilities 870,747 839,278
Total liabilities 1,368,950 1,448,295
TOTAL EQUITY AND LIABILITIES 2,451,678 2,545,157
24
Cash Flow Statement of the Group
Cash Flow Statement of the Group
(EURk)
Note 2023 2022
Operating prot 84,193 81,146
Adjustmentfornon-cashoperatingitems,etc.:
Other non-cash operating items, net (17,049 ) (13,688 )
5 Depreciation, amortisation and impairment losses 199,817 174,803
Prot/(loss) after tax from investments in joint ventures (75 ) (2,121 )
Provisions (19,494 ) (1,899 )
Cash generated from operations before change in working capital 247,392 238,241
Change in inventories 6,324 (9,820 )
Change in receivables (37,643 ) 57,558
Change in trade payables and other payables 52,933 (67,697 )
Change in working capital 21,614 (19,959 )
Cash generated from operations 269,007 218,282
Interest received 2,232 1,609
Interest paid (18,985 ) (10,793 )
Interest expense, lease liabilities (8,006 ) (8,219 )
Corporate income tax paid (17,536 ) (25,880 )
Cash flows from operating activities 226,712 174,999
Acquisition of intangible assets (121,544 ) (123,491 )
Acquisition of property, plant and equipment (14,877 ) (33,287 )
Disposal of property, plant and equipment 1,081 2,304
Acquisition of nancial assets (579 ) (4,883 )
Disposal of nancial assets 138 6,674
32 Acquisition of subsidiaries (3,777 ) (124,287 )
Cash flows from investing activities (139,558 ) (276,970 )
Acquisitions of non-controlling interests (1,782 ) (30,466 )
Disposal of non-controlling interests 0 1,356
27 Borrowing from credit institutions, etc. 32,986 178,264
27 Repayments to credit institutions, etc. (72,934 ) (7,788 )
27 Instalments on lease liabilities (36,494 ) (33,019 )
Dividends from joint ventures and associated companies 3,919 5,374
Dividends to non-controlling shareholders (1,434 ) (2,684 )
Donations (14,853 ) (13,221 )
Cash flows from financing activities (90,592 ) 97,816
Net cash flows from operating, investing and financing activities (3,439 ) (4,155 )
Cash and cash equivalents at 1 January 55,526 62,418
Foreign exchange adjustment of cash and cash equivalents (9,818 ) (2,737 )
18 Cash and cash equivalents at 31 December 42,269 55,526
The cash ow statement cannot be derived directly from the balance sheet and income statement.
25
Statement of Changes in Equity
of the Group
(EURk)
Capital
fund
Reserve
for hedging
trans actions
Reserve
for foreign
exchange
adjustment
s
Retained
earnings
Non-
controlling
interests
Total
equity
Note
Statement of Changes in Equity of the Group
Equity at 1 January 2023 29,583 (6,924 ) (224,309 ) 1,283,496 15,016 1,096,862
Net prot for the year 0 0 0 38,245 3,362 41,607
21 Other comprehensive income (64 ) 12,946 (48,582 ) (6,145 ) 22 (41,822 )
Total comprehensive (64 ) 12,946 (48,582 ) 32,100 3,385 (215 )
income in 2023
Used for charitable purposes
and associated costs
Acquisition/disposal,
non-controlling interests
Dividends, non-controlling
interests
Share-based payment 0 0 0 404 0 404
Equity at 31 December 2023 29,519 6,022 (272,891 ) 1,312,804 7,274 1,082,728
Equity at 1 January 2022 29,583 (35,728 ) (159,598 ) 1,249,665 13,728 1,097,650
1 Effect of change in accounting
principles
Equity at 1 January 2022 29,583 (35,728 ) (159,598 ) 1,247,038 13,728 1,095,023
(restated)
Net prot for the year 0 0 0 60,162 1,433 61,595
21 Other comprehensive income 28,804 (64,711 ) 2,173 (366 ) (34,100 )
Total comprehensive income 0 28,804 (64,711 ) 62,335 1,067 27,495
in 2022
Used for charitable purposes
and associated costs
Acquisition/disposal,
non-controlling interests
Dividends, non-controlling
interests
Share-based payment 0 0 0 424 0 424
Equity at 31 December 2022 29,583 (6,924 ) (224,309 ) 1,283,496 15,016 1,096,862
2626
List of Notes to the Consolidated Financial Statements
List of Notes to the Consolidated
Financial Statements
NOTE
1 Accounting policies
2 Revenue
3 Other operating income
4 Personnel expenses
5 Depreciation, amortisation and impairment losses
6 Net nancial income/(expense) from operation
7 Financial income
8 Financial expenses
9 Taxes
10 Intangible assets
11 Property, plant and equipment
12 Investment properties
13 Leases
14 Investments in joint ventures
15 Investments in associates
16 Inventories
17 Prepayments
18 Cash and cash equivalents
19 Equity
20 Hedging instruments
21 Other comprehensive income
22 Pension obligations and similar obligations
23 Deferred tax
24 Other provisions
25 Fees to auditors
26 Contingent liabilities and collateral
27 Financial risks and nancial instruments
28 Related parties
29 Deferred income - Contract liabilities
30 Standards and interpretations not yet adopted
31 Subsequent events
32 Acquisition and divestment of businesses
33 Group entities
27
Notes to the Consolidated Financial Statements (EURk)
1 Accounting policies
The annual report of Egmont Fonden for 2023 comprises
both the consolidated nancial statements of Egmont
Fonden and its subsidiaries (the Group) and the separate
nancial statements of Egmont Fonden.
The consolidated nancial statements have been prepared
in accordance with the International Financial Reporting
Standards (IFRS), as adopted by the EU, and additional
requirements in the Danish Financial Statements Act.
The separate nancial statements of Egmont Fonden have
been prepared in accordance with the Danish Financial
Statements Act and the nancial reporting requirements
of the Foundation’s Charter (the Foundation’s nancial
statements).
BASIS OF PREPARATION
The functional currency of Egmont Fonden is Danish kroner
(DKK). The consolidated nancial statements are presented
in euro (EUR) as the Group’s activities are mainly located in
European Contries. All values are presented to nearest EUR
thousands, except otherwise stated.
The consolidated nancial statements have been prepared
on the historical cost basis except for derivative nancial
instruments, securities and investment properties (which are
measured at fair value).
The accounting policies have been applied consistently to the
nancial year and to the comparative gures for 2022 apart
from the following:
Change in accounting policies relating to revenue
recognition of gift cards
The recognition of gift cards not expected to be redeemed
(breakage), has been changed from a recognition at the time
of sale to a recognition that follows the redemption pattern
over time. The change has impacted equity at 1 January
2022 with -2.6 million, deferred income with +3.3 million
and deferred tax liability by -0.7 million. The impact on prot
and loss for 2023 is -0.4 million (2022: 0).
Presentation of Profit and loss
A new subtotal “Adjusted operating prot” has been
introduced to better reect the result of underlying
operations before nancial income and expense. The
subtotal is the net result of operating prot inclusive
nancial income and expense from operation (including
fair value adjustments of hedging activities) and results
from investments in associated companies. The change in
presentation has been adjusted retrospectively for 2022 with
no impact on the Group’s operating prot, prot before tax,
net prot for the year nor equity.
Reclassifications in the profit and loss statement
The classication of sales related costs for a few companies
have been changed from other external expenses to raw
materials and consumables. Comparative gures for 2022
have been adjusted resulting in an increase of raw materials
and consumables of EUR 299.5 million and a corresponding
decrease of other external expenses. This change does not
impact other key gures nor nancial ratios.
Significant accounting estimates and judgements
The preparation of the Group’s consolidated nancial
statements requires management to make judgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes that
require a material adjustment, positively or negatively, to
the carrying amount of assets or liabilities affected in future
periods.
The most signicant estimates and judgements for the
Group include the following:
• Provisions for onerous contracts relating to binding
content supply contracts, which is based on an
assessment of the future income and unavoidable costs
over the contract periods. Please refer to note 24 for
further information.
• Impairment testing related to intangible assets,
including asset groups with indenite life such as
28
1 Accounting policies (continued)
Notes to the Consolidated Financial Statements (EURk)
goodwill and the TV2 trademark as well as investment
in associates. Outcome of impairment testing is
dependent on the critical assumptions applied
related to cash ow forecasts, which are affected
by the increased macroeconomic uncertainties such
as increased ination rates and changed consumer
condence, but also other factors such as discount rates
and expected growth rates, please refer to. note 10 for
further information.
• For lm rights and in-house produced rights estimates
on the useful lives and period over which the rights are
amortised are based on estimated sales, which by nature
are associated with uncertainty. Please refer to note 10
for further information.
• Write down of inventories to net realisable values relates
to books and E-commerce. Estimated write-downs
are dependent on expected future sales that by nature
within consumer products and the business areas of
Egmont are subject to some uncertainty. Please refer to
note 16 for further information.
• Other provisions include items such as goods sold with
a right of return, warranty provisions and provisions for
litigation and claims include estimates and judgements
related to how many goods are expected to be returned
or exchanged, to what extent warranties compensations
are needed and probabilities of various likely outcome of
litigation and claims. Please refer to note 24 for further
information.
• Deferred taxes are subject to some judgements related
to whether tax assets may be utilised. Please refer to note
23 for further information.
• Acquisition of businesses where a number of estimates
and judgments are carried out related to allocation of
the purchase consideration to identiable net assets
including intangible assets/goodwill as well as value
adjustments (step-up acquisitions). Please refer to note
32 for further information.
Consolidated financial statements
The consolidated nancial statements comprise Egmont
Fonden and subsidiaries in which Egmont Fonden has
control of nancial and operating policies in order to obtain
returns or other benets from its activities. Control is usually
obtained when the Group holds more than 50 % of the
voting rights, whether directly or indirectly, or otherwise has
a controlling interest in the relevant entity.
Entities in which the Group has signicant inuence, but not
a controlling interest, are considered associates. Signicant
inuence is typically obtained when the Group, directly or
indirectly, owns or holds more than 20 % of the voting rights,
but less than 50 %.
When assessing whether Egmont Fonden exercises control
or signicant inuence, the potential voting rights that are
exercisable at the end of the repor ting period are taken into
account.
The consolidated nancial statements have been prepared by
consolidating the nancial statements from Egmont Fonden
and the individual subsidiaries, prepared in accordance with
the Group’s accounting policies. On consolidation, intra-group
income and expenses, shareholdings, intra-group balances
and dividends, and realised and unrealised gains and losses on
transactions between the consolidated entities are eliminated.
Unrealised gains on transactions with associates are eliminated
in proportion to the Group’s ownership share of the associate.
Unrealised losses are eliminated in the same way as unrealised
gains to the extent that impairment has not taken place.
The non-controlling interests’ shares of the prot for the year,
comprehensive income and of the equity of subsidiaries not
wholly owned are included in the Group’s net prot for the
year, comprehensive income and equity, respectively, but are
disclosed separately.
Business combinations
Businesses acquired or formed during the year are recognised
in the consolidated nancial statements from the date of
acquisition or formation. Businesses disposed of or wound up
29
Notes to the Consolidated Financial Statements (EURk)
1 Accounting policies (continued)
are recognised in the consolidated nancial statements until
the date of disposal or winding-up. The comparative gures
are not restated for newly acquired businesses. Discontinued
operations are disclosed separately.
The acquisition method is used for acquisitions of new
businesses over which Egmont Fonden obtains control. The
acquired businesses’ identiable assets, liabilities and con-
tingent liabilities are measured at fair value at the acquisition
date. Identiable intangible assets are recognised if they are
separable or arise from a contractual right. Deferred tax is
recognised in respect of the fair value adjustments made.
The acquisition date is the date when Egmont Fonden
effectively obtains control of the acquired business. Costs
attributable to business combinations are expensed as
incurred.
Step acquisitions, where either control, joint control or
signicant inuence is obtained, the existing equity interest
is remeasured at fair value and the difference between the
fair value and carrying amount is recognised in the income
statement. The additional equity investments acquired are
recognised at fair value in the balance sheet.
Any excess (goodwill) of the consideration transferred, the
value of non-controlling interests in the acquired entity and
the fair value of any existing equity interest over the fair value
of the identiable assets, liabilities and contingent liabilities
acquired is recognised as goodwill under intangible assets.
Upon acquisition, goodwill is allocated to the cash-
generating units, which subsequently form the basis for the
impairment test at least annually.
Goodwill and fair value adjustments in connection with
the acquisition of a foreign entity with another functional
currency than the presentation currency of Egmont Fonden
are treated as assets and liabilities belonging to the foreign
entity and upon initial recognition translated into the foreign
entity’s functional currency at the exchange rate at the
transaction date.
Negative differences (negative goodwill) are recognised in
prot for the year at the acquisition date.
The consideration for an acquired business consists of the
fair value of the agreed consideration in the form of assets
transferred, liabilities assumed and equity instruments
issued. If part of the consideration is contingent on future
events or compliance with agreed conditions, this part of
the consideration is recognised at fair value at the date of
acquisition.
If uncertainties regarding the identication or measurement
of acquired assets, liabilities or contingent liabilities or
determination of the consideration exist at the acquisition
date, initial recognition will take place on the basis of
provisional values. If it subsequently becomes apparent that
the identication or measurement of the consideration,
acquired assets, liabilities or contingent liabilities was
incorrect on initial recognition, the determination is adjusted
retrospectively, including goodwill, until 12 months after
the acquisition, and the comparative gures are restated.
Subsequently, goodwill is not adjusted. Changes to
estimates of contingent considerations are recognised in the
income statement.
The acquisition of further non-controlling interests after
obtaining control is considered an owner’s transaction, and
the difference between acquisition cost and the share of
such non-controlling interests acquired is recognised directly
in equity.
Gains or losses on the disposal or winding-up of subsidiaries,
jointly controlled entities and associates are stated as
the difference between the selling price or the disposal
consideration and the carrying amount of net assets,
including goodwill, at the date of disposal, less the cost
of disposal. If the disposal of either control, joint control
or signicant inuence takes place in stages, the retained
equity investment is measured at fair value, and the
difference between the fair value and carrying amount is
recognised in the income statement.
Non-controlling interests
On initial recognition, non-controlling interests are
measured at the fair value of the ownership share or at
the proportionate share of the fair value of the acquired
business’ identiable assets, liabilities and contingent
liabilities. In the rst scenario, goodwill in relation to the
30
1 Accounting policies (continued)
Notes to the Consolidated Financial Statements (EURk)
non-controlling interests’ ownership share of the acquired
business is thus recognised, while, in the latter scenario,
goodwill in relation to the non-controlling interests is not
recognised.
The measurement of non-controlling interests is chosen
transaction by transaction and stated in the notes in
connection with the description of acquired businesses.
Foreign currency translation
A functional currency is determined for each of the
reporting entities in the Group. The functional currency is
the currency used in the primary economic environment in
which the individual reporting entity operates. Transactions
denominated in currencies other than the functional
currency are considered foreign currency transactions.
On initial recognition, foreign currency transactions are
translated to the functional currency at the exchange rates
at the transaction date. Foreign exchange differences arising
between the exchange rates at the transaction date and at
the date of payment are recognised in the income statement
as nancial income or nancial expenses.
Receivables, payables and other monetary items
denominated in foreign currencies are translated to the
functional currency at the exchange rates at the end of the
reporting period. The difference between the exchange
rates at the end of the reporting period and at the date at
which the receivable or payable arose or was recognised in
the latest nancial statements is recognised in the income
statement as nancial income or nancial expenses.
In the consolidated nancial statements, the income
statements of entities, joint ventures and associates
with another functional currency than the presentation
currency (EUR) are translated at the exchange rates
at the transaction date, and the balance sheet items
are translated at the exchange rates at the end of the
reporting period. An average exchange rate for each
month is used as the transaction date exchange rate
to the extent that this does not signicantly distort the
presentation of the underlying transactions. Foreign
exchange differences arising on translation of the
opening balance of equity of such foreign entities at the
exchange rates at the end of the reporting period and on
translation of the income statements from the exchange
rates at the transaction date to the exchange rates at
the end of the reporting period are recognised directly
in other comprehensive income and presented in equity
under a separate translation reserve. The exchange rate
adjustment is allocated between Egmont Fonden and the
non-controlling interests.
Foreign exchange adjustments of intra-group balances
which are considered part of the total net investment in
foreign entities with another functional currency than
the presentation currency (EUR) are recognised in other
comprehensive income and presented in equity under a
separate translation reserve.
On disposal of wholly owned foreign entities, associates or
jointly controlled entities with another functional currency
than the presentation currency (EUR), the exchange rate
adjustments that have been recognised in other comprehen-
sive income and are attributable to the entity are reclassied
from other comprehensive income to the income statement
together with any gains or losses from the disposal.
On partial disposal of foreign subsidiaries with another
functional currency than the presentation currency (EUR)
without a loss of control, a proportionate share of the
translation reserve is transferred from the Group to the non-
controlling interests’ share of equity.
On partial disposal of associates and jointly controlled
entities, the proportionate share of the accumulated
translation reserve recognised in other comprehensive
income is transferred to the income statement for the year
together with any gains or losses from the disposal.
Any repayment of intra-group balances which constitute
part of the net investment in the foreign entity is not
considered a partial disposal of that subsidiary.
31
Notes to the Consolidated Financial Statements (EURk)
1 Accounting policies (continued)
Derivative financial instruments
Derivative nancial instruments are recognised at the
date a derivative contract is entered into and measured
in the balance sheet at fair value. Positive and negative
fair values of derivative nancial instruments are included
in other receivables and payables, respectively, and a
set-off of positive and negative values is only made when
the entity has the right and the intention to settle several
nancial instruments net. Fair values of derivative nancial
instruments are computed on the basis of current market
data and generally accepted valuation methods.
Changes in the fair value of derivative nancial instruments
designated as and qualifying for recognition as a hedge of
the fair value of a recognised asset or liability are recognised
in the income statement together with changes in the value
of the hedged asset or liability as far as the hedged portion
is concerned.
Changes in the portion of the fair value of derivative nancial
instruments designated as and qualifying as a cash ow
hedge that is an effective hedge of changes in future cash
ows are recognised in other comprehensive income in
equity under a separate hedging reserve until the hedged
cash ows affect the income statement. At that time, any
gains or losses resulting from such hedged transactions are
transferred to other comprehensive income and recognised
under the same item as the hedged item.
If the hedging instrument no longer qualies for hedge
accounting, the hedge will cease to be effective. The
accumulated change in value recognised in other
comprehensive income is transferred to the income
statement when the hedged cash ows affect the income
statement. If the hedged cash ows are no longer expected
to be realised, the accumulated change in value will be
transferred to the income statement immediately. The
portion of a derivative nancial instrument not included in a
hedge is recognised under nancial items.
For derivative nancial instruments that do not qualify for
treatment as hedging instruments and changes in fair value
are currently recognised in the income statement under
nancial items.
INCOME STATEMENT
Revenue
Egmont recognises revenue from the following signicant
revenue streams:
• Sale of goods and services
• Magazine sales
• TV and lm production
• TV and cable broadcasting distribution
• Advertising
• Gaming
• Subscription based revenue
Egmont separates customer contracts into performance
obligations and recognises revenue from these
separately. For customer contracts that includes more
than one performance obligation, Egmont allocates the
transaction price to the individual performance obligations
proportionate to their stand-alone selling price.
The Group recognises revenue when or as control passes to
the customer. Revenue is measured at its transaction price,
which comprise net present value when payments exceed 12
months.
Revenue is measured excluding VAT and taxes and including
all types of discounts provided to customers.
All types of variable consideration such as rebates, return
rights or penalties etc. are reconised as revenue only to the
extent that it is highly probable that a signicant reversal will
not occur subsequently. When the customer holds a right to
return the good, Egmont estimate the expected number of
goods that will be returned based on historical return and
postpone recognition of such revenue. Return and warranty
policies are typically based on customary return arrangements
in local markets.
Warranty provisions are recognised as the underlying goods
are sold based on historical warranty costs experience in
previous nancial years.
Generally, payment terms are based on customary terms in
local markets.
32
1 Accounting policies (continued)
Notes to the Consolidated Financial Statements (EURk)
Revenue from sale of goods and services
Revenue from sale of goods comprise sale of playstation
products, sale from e-commerce, etc. are recognised at point
in time when control is transferred, usually when the goods
are delivered. Sale of gift cards are initially recognised as
deferred income and subsequently recognised as revenue
over the redemption period, including the expected amount
of not redeemed gift cards (breakage).
Revenue from sale of cinema tickets is recognised as the
services are rendered.
When consideration is received before control is transferred it
is recognised as a contract liability and presented as deferred
income. Deferred income relating to gift cards is assessed for
gift cards which are not expected to be redeemed (breakage).
Breakage is recognized over the redemption period based
on expectations of how many gift cards that will not be
redeemed.
Revenue from magazine sales
Egmont recognises revenue from sale of magazines, both
subscription and single-copy sales, and ads related to
magazines at the publication date of the magazine, which is
considered a point in time.
Magazine subscriptions are considered as a number of
discrete performance obligations which are satised over the
course of the subscription period as magazines are published.
For circulation sales, where customer’s holds a right of return,
Egmont only recognises revenue from the sale of magazines
to the extent that it is highly probable that a subsequent
reversal will not occur.
Revenue from TV and film production
Revenues from sale of TV and lm productions to TV stations
(availability rights) and distribution companies is recognised
at point in time, on the availability date, when it becomes
available (accessible) to the customer.
Consideration received for TV and lm productions before
the availability date is a contract liability and is presented in
the balance sheet as deferred income. Deferred income is
measured at fair value.
TV and cable distribution
Revenue from TV and cable distribution (cable fee) is based
on number of subscribers and is recognised on straight-
line basis over the period of the relevant agreements. The
number of subscribers is based on reports received from the
distribution companies.
Revenue from advertising
Revenue from advertising is recognised when the adverts are
broadcasted on TV or in the Cinema.
If the transaction price is variable based on the number of
viewers, Egmont constrains revenue to the extent that it
is highly probable that a signicant reversal will not occur
subsequently.
Gaming revenue
Gaming revenue include revenue derived from work for hire
contracts (xed hourly rate) and self-published games.
Gaming work for hire
Gaming work for hire contracts usually comprise one
performance obligation that is satised over time as Egmont
delivers hours at a xed hourly rate, thus having a right to
consideration that corresponds directly with the value
transferred to the customer to date. Revenue deriving from
work for hire is recognised at the amount that Egmont has a
right to invoice.
Self-published games
Revenue from self-published games without no future
material free content communicated at time of release,
is recognised at the time of delivery to the customer
(download).
When Egmont promises to deliver future material free
content, the customer contract includes an additional
performance obligation. Egmont allocates the transaction
price in such arrangements by determining the stand-alone
selling price of the performance obligations that is recog-
nised upon release.
Subscription based revenue
Subscription based revenue primarily comprise TV2 Play and
educational platforms in Books. Subscription based revenue
33
Notes to the Consolidated Financial Statements (EURk)
1 Accounting policies (continued)
comprise one performance obligation that is satised over
the subscription period, thus having a right to consideration
that corresponds directly with the value transferred to
the customer to date. Prepaid subscriptions for a certain
subscription period are recognised as deferred income and
disclosed as contract liabilities.
Other operating income and costs
Other operating income and costs comprise items
secondary to the principal activities of the entities, including
gains and losses on the disposal of businesses (including
re-measuring of existing shares in step-acquisitions),
intangible assets and property, plant and equipment and
right-of-use assets, as well as recognition of badwill, value
adjustments of investment properties at fair value and
fair value adjustments of contingent consideration. Gains
and losses on the disposal of entities, intangible assets
and property, plant and equipment are determined as the
selling price less disposal costs and the carrying amount at
the date of disposal.
Gains and losses from re-measuring existing shares in step-
acquisitions are determined as the fair value of new shares
acquired, adjusted for control premium less the carrying
value of those shares prior to the step-acquisitions.
Government grants
Government grants from lm and ticket subsidies for
in-house produced lms are recognised when there is
reasonable assurance that they will be received. Film
subsidies for in-house produced lms recognised in the
balance sheet are offset against the cost of in-house
produced lms. Ticket subsidies are recognised in the income
statement under other operating income.
TV 2, Norway has a public service broadcasting agreement
with the Norwegian state, which compensates TV 2 for
additional cost regarding production of Norwegian news,
lm and T V content for 11.8 million in 2023 (2022: 13.4
million). Compensation under the agreement with the
Norwegian state is recognised in the income statement as a
reduction of the related expenses.
Due to Covid-19 Egmont is entitled to governments
grants. These are recognised where there is reasonable
assurance that the grant will be received and all attached
conditions will be compiled with. Government grants from
Covid-19 relief packages are recognised in the income
statement as other operating income. There are no
unfullled conditions or other contingencies attached to
the received subsidies.
Share of results from investments in joint ventures
and associates
The proportionate share of the joint ventures’ and associates
results after tax and non-controlling interests and after
elimination of the proportionate share of intra-group gains/
losses is recognised in the consolidated income statement.
Financial income and expense from operation
Financial income and expense from operation comprise gains
and losses on securities, amortisation of nancial assets and
liabilities and foreign exchange adjustments. Furthermore,
changes in the fair value of derivative nancial instruments
regarding foreign currency contracts, which are not des-
ignated as hedging instruments as well as the ineffective
portion of the hedges are also included.
Financial income and expenses
Financial income and expenses comprise interest income and
expense, including interest expense on leases. Furthermore,
changes in the fair value derivative nancial instruments
regarding virtual power purchase agreements and interest
rate swaps, which are not designated as hedging instru-
ments as well as the ineffective portion of the hedges are
also included.
Borrowing costs relating to general borrowing or loans
directly relating to the acquisition, construction or develop-
ment of qualifying assets are allocated to the cost of such
assets..
Tax for the year
Tax for the year, comprises current tax and changes in
deferred tax.
34
1 Accounting policies (continued)
Notes to the Consolidated Financial Statements (EURk)
BALANCE SHEET
Film rights and other acquired rights
Film rights comprise lm, transactional home entertainment
(DVD, TVOD, streaming) and TV rights. Film rights are
recognised as an intangible asset at the time when control
over the asset is transferred. Prepayments for lm rights
are recognised in the balance sheet as a prepayment for
intangible assets, and when control is gained over the assets,
prepayments are reclassied to lm rights.
Film rights are measured at cost which is allocated pro-
portionally to the cinema, transactional home entertain-
ment and TV media, as well as to markets. Film rights are
amortised over the period during which they are expected
to generate income on the respective market and in the
respective media.
Other intellectual property rights with a denite useful life,
such as domain names and magazine titles, are measured at
cost on initial recognition and amortised on a straight-line
basis over the useful life (typically 5 to 10 years).
In-house produced rights
In-house produced rights, which comprise lm and games
are measured at cost, which includes indirect production
costs, less grants received, accumulated amortisation and
impairment, or at the recoverable amount where this is
lower.
In-house produced rights are amortised over the period
during which they are expected to generate income.
Goodwill
On initial recognition, goodwill is recognised in the balance
sheet at cost as described under “Business combinations”.
Subsequently, goodwill is measured at cost less accumulated
impairment losses. Goodwill is not amortised, but is subject
to an annual impairment test.
The carrying amount of goodwill is allocated to the
Group’s cash-generating units at the date of acquisition.
The identication of cash-generating units is based on the
management structure and internal nancial control.
Trademarks
Acquired intellectual property rights, including trademarks,
are measured at cost on initial recognition. Trademarks with
a nite useful life are typically amortised on a straight-line
basis over the useful life (typically 5 to 20 years).
Trademarks with an indenite useful life are not amortised
but are tested for impairment at least once annually.
Intangible assets in progress
Intangible assets in progress are measured at cost and
consist mainly of prepaid lm rights.
Property, plant and equipment
Land and buildings, plant and machinery equipment
and leasehold improvements are measured at cost less
accumulated depreciation and impairment. Cost comprises
the purchase price and any costs directly attributable to the
acquisition until the date when the asset is available for use.
Subsequent costs, e.g. in connection with replacing
components of property, plant and equipment, are
recognised in the carrying amount of the relevant asset if
it is probable that the costs will result in future economic
benets for the Group. The replaced components are
derecognised in the balance sheet, and the carrying
amount is transferred to the income statement. All other
costs incurred for ordinary repairs and maintenance are
recognised in the income statement as incurred.
When individual components of an item of property, plant
and equipment have different useful lives, the cost of such
individual components is accounted for and depreciated
separately. Depreciation is provided on a straight-line basis
35
Notes to the Consolidated Financial Statements (EURk)
1 Accounting policies (continued)
over the expected useful lives, based on the following
estimates of the useful lives of the assets:
Corporate properties (head ofces) 25 - 50 years
Properties used for operational purposes 25 years
Installations and conversions 10, 15, 25 years
(the useful life depends on the nature
of conversion)
Plant and machinery 3 - 15 years
Equipment 3 - 5 years
Leasehold improvements 5 - 10 years
Land is not depreciated.
Depreciation is made on the basis of the asset’s residual
value less any impairment losses. The residual value and
useful life of the assets are reassessed every year. If the
residual value exceeds the carrying amount, depreciation is
discontinued.
Gains and losses on the disposal of property, plant and
equipment are determined as the difference between the
selling price less disposal costs and the carrying amount at
the date of disposal. Gains or losses are recognised in the
income statement under other operating income or other
operating costs, respectively.
Investment properties
Investment properties are held for the purpose of obtaining
rental income and/or capital gains. On initial recognition,
investment properties are measured at cost, consisting of
the acquisition cost of the property and any costs directly
attributable to the acquisition. Subsequently, investment
properties are measured at fair value. Changes in the fair
value are recognised in the income statement as a value
adjustment of investment properties under other operating
income/costs in the nancial year in which the change
occurs.
Leases
Lease assets
Lease assets are recognised at the commencement date
of the lease which is the date the underlying asset is
available for use. Lease assets are measured at cost, less
any accumulated depreciation and potential impairment,
adjusted for any remeasurement of lease liabilities. The cost
includes the amount of lease liabilities recognised, initial
direct costs incurred less any lease incentives received.
Lease assets are depreciated over the shorter of the lease
term and the estimated useful lives of the assets – which is
typically 2-10 years.
If ownership of the leased assets transfers to the Group at
the end of the lease term or the cost reects the exercise
of a purchase option, depreciation is calculated using the
estimated useful life of the asset. The lease assets are also
subject to impairment.
The Group has applied the short-term lease recognition
exemptions to its short-term leases (lease term of 12 months
or less) and applies also the lease of low-value assets
recognition exemptions to leases. Lease payments on short-
term leases and leases of low value assets are recognised as
expense on a straight-line basis over the lease term in prot
and loss.
Impairment of non-current assets
Goodwill and intangible assets with indenite useful lives
are subject to annual impairment tests, initially before the
end of the acquisition year and if there is any indication of
impairment. Likewise, development projects in process are
subject to an annual impairment test.
The carrying amount of goodwill is tested for impairment
together with the other non-current assets of the cash-
generating unit or groups of cash-generating units to
which goodwill has been allocated. If the carrying amount
exceeds the recoverable amount, it is written down to the
recoverable amount via the income statement. As a main
rule, the recoverable amount is calculated as the present
value of expected future net cash ows from the entity or
activity (cash-generating unit or groups of cash-generating
units) to which goodwill has been allocated.
Deferred tax assets are subject to annual impairment tests
and are recognised only to the extent that it is probable that
the assets will be utilised.
36
1 Accounting policies (continued)
Notes to the Consolidated Financial Statements (EURk)
The carrying amount of other non-current assets is tested
annually for impairment indicators. When there is an
indication that assets may be impaired, the recoverable
amount of the asset is determined. The recoverable amount
is the higher of an asset’s fair value less expected disposal
costs and its value in use. Value in use is the present value of
future cash ows expected to be derived from an asset or
the cash-generating unit to which the asset belongs.
An impairment loss is recognised if the carrying amount of
an asset or a cash-generating unit exceeds the recoverable
amount of the asset or the cash-generating unit. Impairment
losses are recognised in the income statement.
Impairment losses of goodwill are not reversed. Impairment
losses on other assets are reversed only to the extent that
changes in the assumptions and estimates underlying
the calculation of impairment losses have occurred.
Impairment losses are only reversed to the extent that the
asset’s increased carrying amount does not exceed the
carrying amount that would have been determined (net of
amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.
Lease liabilities
Lease liabilities are measured at the net present value of
lease payments to be made over the lease term.
The lease payment s include xed payment s (including
in substance xed payments) less any lease incentives
receivable, variable lease payments that do not depend on
an index or a rate, and amounts expec ted to be paid under
residual value guarantees. The lease payments also include
the exercise price of a purchase option reasonably certain
to be exercised and payments of penalties for terminating
the lease, if the lease term reects the Group exercising the
option to terminate.
Variable lease payments that do not depend on an index
or a rate are recognised as expenses in prot and loss in
the period in which the event or condition that triggers the
payment occurs.
In calculating the present value of lease payments, the
Group uses its incremental borrowing rate at the lease
commencement date, because the interest rate implicit in
the lease is not readily determinable.
After the commencement date the carrying amount of lease
liabilities is remeasured if there is a modication whether it’s
a change in the in-substance xed lease payments, a change
lease term (termination or extension), or a change in the
assessment to purchase the underlying asset.
The Group’s lease liabilities are included in the interest-
bearing debt.
Investments in joint ventures and associated
companies
Investments in joint ventures and associated companies
are recognised in the consolidated nancial statements
according to the equity method, which means that the
investments are measured in the balance sheet at the
proportionate share of the joint ventures’ and associated
companies’ net asset values calculated in accordance
with the Group’s accounting policies minus or plus the
proportionate share of unrealised intra-group gains and
losses and plus any excess values on acquisition, including
goodwill. Investments in joint ventures and associated
companies are tested for impairment when impairment
indicators are identied.
Investments in joint ventures and associated companies
with negative net asset values are measured at EUR 0 (nil).
If the Group has a legal or constructive obligation to cover
a decit in the joint venture and associated company, such
decit is recognised under liabilities.
On the acquisition of investments in joint ventures and
associated companies, the acquisition method is used; see
description of business combinations.
Other investments
Equity investments where the Group does not have signi-
cant inuence or control and not classied as subsidiary,
37
Notes to the Consolidated Financial Statements (EURk)
1 Accounting policies (continued)
associate or joint venture are included under other invest-
ments and are measured as nancial assets at fair value
through the income statement.
Net gains and losses arising from changes in the fair value
of nancial assets are recognised in the income statement
as nancial income or expenses. Financial assets for which
no active market exists are carried at fair value based on a
valuation methodology.
Call options
Call options related to equity investments are included
under derivatives (other receivables) and measured at fair
value through the income statement. The fair value is based
on a valuation methodology comparing the expected equity
value with the agreed exercise prices (level 3 in the fair value
hierarchy).
Net gains and losses arising from changes in the fair value
of call options are recognised in the income statement as
nancial income or expenses.
Inventories
Inventories are measured at the lower of cost according to
the FIFO method and the net realisable value.
Goods for resale and raw materials and consumables are
measured at cost, comprising purchase price plus delivery
costs.
The cost of nished goods and work in progress
comprises the cost of raw materials, consumables,
direct wages and salaries and indirect production
overheads. Indirect production overheads comprise
indirect materials, wages and salaries as well as
maintenance and depreciation of production
machinery and equipment as well as administrative
expenses and management costs.
The cost of acquired TV programmes are recognised as
inventory at the time when the right to broadcast the TV
programme begins. The cost of a TV programme is expensed
proportionally over the period the TV programme is broad-
cast.
The net realisable value of inventories is calculated as the
selling price less costs of completion and costs necessary
to effect the sale and is determined taking into account
marketability, obsolescence and development in expected
selling price.
Receivables
Trade receivables are hold with the objective to collect the
contractual cash ows. Receivables are therefore measured
at fair value on initial recognition and are subsequently
measured at amortised cost using the effective interest
method less any impairment. Receivables are impaired at
initial recognition. The impairment equals lifetime expected
credit loss allowance on receivables in accordance with the
simplied approach.
Prepayments
Prepayments, such as prepaid royalty, prepaid authors’ fees
and prepaid TV programmes and sports broadcasting rights,
which are recognised under assets, comprise costs incurred
concerning subsequent nancial years. Prepayments are
measured at cost less impairment.
Securities
Securities consist mainly of listed bonds that are held for
investment of excess liquidity and managed in accordance
with a documented investment strategy. Securities are
measured initially at the listed price at the trade date and
subsequently at the listed price at the end of the reporting
period (fair value). Value adjustments are recognised directly
in the income statement under nancial income/expenses.
Pension obligations and similar non-current liabilities
Dened contribution plans where the Group regularly
pays xed pension contributions to independent pension
funds are recognised in the income statement in the period
during which employees earn entitlement to them, and any
contributions outstanding are recognised in the balance
sheet under other payables.
For dened benet plans, an actuarial calculation (the
Projected Unit Credit method) is performed annually of the
present value of future benets payable under the dened
benet plan based on assumptions about the future devel-
3838
1 Accounting policies (continued)
Notes to the Consolidated Financial Statements (EURk)
opment in variables such as salary levels, interest rates, ina-
tion and mortality. The actuarial present value less the fair
value of any plan assets is recognised in the balance sheet
under pension obligations.
Pension costs for the year are recognised in the income
statement based on actuarial estimates and nancial
assumptions at the beginning of the year. Actuarial gain or
loss is recognised in other comprehensive income.
Current tax payable/receivable and deferred tax
Current tax payable and receivable is recognised in the
balance sheet as tax computed on the taxable income for the
year, adjusted for tax on the taxable income of prior years and
for tax paid on account.
Deferred tax is measured using the balance sheet liability
method on the basis of all temporary differences between
the carrying amount and the tax value of assets and
liabilities. However, deferred tax is not recognised on
temporary differences relating to goodwill that is not
deductible for tax purposes and on ofce premises and other
items where temporary differences, apart from business
combinations, arise at the date of acquisition without
affecting either result for the year or taxable income. Where
different tax rules can be applied to determine the tax value,
deferred tax is measured based on planned use of the asset
or settlement of the liability.
Deferred tax assets, including the tax value of tax loss carry
for wards, are recognised at the expected value of their
utilisation.
Deferred tax is measured according to the tax rules and at
the tax rates applicable in the respective countries at the end
of the reporting period when the deferred tax is expected
to be realised as current tax. Changes in deferred tax due
to changed tax rates are recognised in the comprehensive
income for the year.
Other provisions
Provisions are recognised when the Group incurs a legal or
constructive obligation due to an event occurring before or
at the end of the reporting period, and meeting the obliga-
tion is likely to result in an outow of economic benets.
Provisions are measured at the best estimate of the costs
required to settle the obligation. The costs required to settle
the obligation are discounted provided that such discounting
would have a material effect on the measurement of the
liability. A pre-tax discount rate is used that reects the cur-
rent market interest rate level plus risks specic to the liability.
Other provisions primarily consist of provisions for goods
sold with a right of return, where, based on past experience
or otherwise, the Group can make a reliable estimate of
the amount of goods that will be returned and expected
restructuring costs, etc.
Warranty provisions are recognised as the underlying goods
are sold based on historical warranty costs experience in
previous nancial years.
Restructuring costs are recognised under liabilities when
a detailed, formal restructuring plan has been announced
to the employees affected no later than at the end of the
reporting period. On acquisition of businesses, provisions for
restructuring in the acquiree are only included in goodwill
when, at the acquisition date, the acquiree had an existing
liability for restructuring.
A provision for onerous contracts is recognised when the
expected benets to be obtained by the Group from a
contract are lower than the unavoidable costs of meeting its
obligations under the contract.
Put options on non-controlling interests
Non-controlling interests continues to receive an allocation
of prot or loss.
Put options on non-controlling interests’ share of equity are
measured at the present value of the redemption amount
calculated as if the options were exercised on the last
day of the nancial year and based on the latest nancial
information of the relevant companies. Non-controlling
interests are reclassied as liability at the end of the nancial
year as if the acquisition took place at that date (the
anticipated acquisition method).
Net gains and losses arising from changes in the fair value of
put options are recognized in equity.
39
Notes to the Consolidated Financial Statements (EURk)
1 Accounting policies (continued)
Financial and non-financial liabilities
Financial liabilities are recognised at the date of borrowing
as the net proceeds received less transaction costs paid. In
subsequent periods, the nancial liabilities are measured
at amortised cost, such that the difference between the
proceeds and the nominal value is recognised under nancial
expenses in the income statement over the term of the loan.
Other liabilities are measured at net realisable value.
Deferred income
Deferred income, including i.e. the sale of lm broadcasting
rights, is measured at cost.
CASH FLOW STATEMENT
The cash ow effect of acquisitions and disposals of
businesses is shown separately in cash ows from investing
activities. Cash ows from acquired businesses are
recognised in the cash ow statement from the date of
acquisition, and cash ows from disposals of businesses are
recognised until the date of disposal.
Cash ows from operating activities are calculated according
to the indirect method as the prot for the year before net
nancials, adjusted for non-cash operating items, changes in
working capital and corporate income tax paid.
Cash ows from investing activities comprise payments in
connection with the acquisition and disposal of businesses
and activities and the acquisition and disposal of intangible
assets, property, plant and equipment and other non-current
assets, as well as securities.
Cash ows from nancing activities comprise the raising
of loans and repayment of interest-bearing debt including
lease liabilities, donations made and transactions with non-
controlling interests.
Cash and cash equivalents comprise cash and marketable
securities with a residual term of less than three months at
the acquisition date which are subject to an insignicant risk
of changes in value.
Cash ows in other currencies than the functional currency
are translated using average exchange rates unless these
deviate signicantly from the rates at the transaction date.
FINANCIAL TERMS
In this annual report the following nancial terms are used:
EBITDA Operating prot before net
nancials, depreciation,
amortisation and impairment
losses.
Operating profit (EBIT) Prot before tax and net
nancials.
Adjusted Operating Operating prot after results from
profit associates and operational
nancial income/(expenses).
EBT Prot before tax
FINANCIAL RATIOS
Financial ratios stated in the consolidated nancial
statements have been calculated in accordance with the
Danish Finance Society’s “Recommendations & Ratios”.
The nancial ratios stated under nancial highlights have
been calculated as follows:
Operating margin
Operating prot x 100
Revenue
Equity ratio
Equity, excl. non-controlling interests, x 100
Total assets
Return on equity
Net prot for the year, excl.
non-controlling interests, x 100
Average equity, excl. non-controlling interests
40
Notes to the Consolidated Financial Statements (EURk)
2 Revenue
Nordic Countries Other Countries Total
Geographical markets 2023 2022 2023 2022 2023 2022
Sale of goods 1,205,524 1,074,916 112,577 107,856 1,318,101 1,207,155
Sale of services 899,458 993,291 36,514 25,146 935,972 994,054
Royalty 112,303 92,632 491 113 112,794 92,745
Rental income 9,937 9,109 0 0 9,937 9,109
Total 2,227,222 2,169,948 149,582 133,115 2,376,804 2,303,063
At point in time 2,003,428 1,913,794 149,100 131,418 2,152,528 2,045,212
Transferred over time 223,794 256,154 482 1,697 224,276 257,851
Total 2,227,222 2,169,948 149,582 133,115 2,376,804 2,303,063
Revenue split on Divisions 2023 2022
TV 2, Norway 636,683 653,038
Nordisk Film 728,473 572,883
Story House Egmont 796,602 852,602
Egmont Books 216,687 224,007
Other (i.e. rental income) 9,937 9,109
Eliminations (11,578) (8,576)
Total 2,376,804 2,303,063
Contract balances 2023 2022
Trade receivables (note 26) 265,661 245,946
Contract assets 1,536 10,062
Contract liabilities (note 28) 99,851 114,340
In 2023, 3.8 million (2022: 5.2 million) was recognised as provision for expected credit losses on trade receivables, cf. note 27.
Contract assets primarily relate to revenue from work for hire contracts where the customer has been invoiced less than the
stage of completion. As such, the balances of this account vary and depend on the number of ongoing work for hire contracts
at the end of the year. Contract assets are presented in trade receivables.
Contract liabilties include advances on gift cards, subscriptions, work for hire contracts, etc. Contract liabilities are presented as
deferred income.
3 Other operating income 2023 2022
Government grants, including Covid-19 grants 3,021 6,932
Re-measurement of shares, earn-outs and sale of activities in other companies 8,128 14,704
Fair value adjustment of investment properties 162 734
Reversal of provisions for litigations and claims 6,567 0
Miscellaneous 6,891 7,409
Total 24,768 29,779
41
Notes to the Consolidated Financial Statements (EURk)
4 Personnel expenses 2023 2022
Wages and salaries (452,495) (419,799)
Dened contribution pension plans (30,386) (28,989)
Dened benet pension plans 9 (3)
Other social security costs (53,525) (52,627)
Share-based payment (404) (424)
Total (536,801) (501,842)
Average number of full-time employees 6,220 6,201
Compensation to Management Board amounted to 5,501 (2022: 5,697), of which pension contributions amounted
to 464 (2022: 448).
Compensation to the Board of Directors and Audit Committee amounted to 616 (2022: 600).
Annual compensation to members of the Board of Directors per task 2023 2022
EgmontFonden,general:
Member 11 11
Vice chair 16 16
Chair 21 21
EgmontFonden,charitableactivities:
Member 11 10
Vice chair 16 15
Chair 21 19
GrantCommittee,charitableactivities:
Vice chair 16 15
Chair 32 31
Auditcommittee(establishedinQ42023):
Member 3 0
Chair 5 0
EgmontInternationalHoldingA/S:
Member 35 34
Vice chair 52 51
Chair 70 68
Share-based payment
A long term share-based incentive programme has been issued in Nordisk Games A/S. The program is targeted at executive
employees, selected second level management and senior specialists in Nordisk Games Group. The share options have been
granted for free and without any related performance conditions, however certain key employees have acquired 1 share
option for every 9 free share options at the fair value at the grant date.
42
Notes to the Consolidated Financial Statements (EURk)
4 Personnel expenses (continued)
All share options vest 3 years after grant, followed by a 2 years excercise window. The options are settled in shares, however
the Board of Directors in Nordisk Games A/S has the right to settle the option in cash at market price.
Usual good and bad leaver conditions applies for the exercise of the options. Special provisions applies if changes in the capital
structure of Nordisk Games A/S occur.
Share option programmes 2023 2022
Number of persons included in the programme 9 13
Total number of share options granted 1,115,000 1,525,000
Vesting date 31.05.2025 31.05.2025
Exercise period begins 01.06.2025 01.06.2025
Exercise period ends 31.05.2027 31.05.2027
Exercise price 3.78 3.78
Fair value at the date of the grant 1.48 1.48
Outstanding share options 2023 2022
1 January 1,525,000 0
Share options granted during the year 0 1,525,000
Share options forfeited during the year (410,000) 0
31 December 1,115,000 1,525,000
The fair value calculated at the grant date is based on a Black-Scholes warrant pricing model.
Fairvalue,liabilityandexpenserecognisedinthestatementofprotorloss:
The share options granted are recognised in prot or loss for 2023 corresponding to the fair value at the time of grant accrued
over the vesting period. The total expense recognised in respect of equity-settled programmes amounted to 404 before tax in
2023 (2022: 424). At 31 December 2023, the fair value of the remaining equity-settled programmes amounts to 825 (2022:
1,584).
5 Depreciation, amortisation and impairment losses 2023 2022
Amortisation, intangible assets (128,420) (112,976)
Impairment losses, intangible assets, net (16,137) (2,190)
Depreciation, property, plant and equipment (22,258) (24,778)
Impairment losses, property, plant and equipment (127) (3,377)
Depreciation of lease assets (32,743) (30,336)
Impairment of lease assets (132) (1,146)
Total (199,817) (174,803)
43
Notes to the Consolidated Financial Statements (EURk)
6 Net financial income/(expense) from operation 2023 2022
Dividends received 149 492
Gain on disposal of securities 209 2,953
Foreign exchange gains, net 0 841
Financial income from operations 358 4,286
Fair value adjustments of bonds and shares (1,557) 0
Foreign exchange loss, net (2,657) 0
Other nancial expenses (2,762) (2,960)
Financial expenses from operations (6,976) (2,960)
Total (6,618) 1,326
7 Financial income 2023 2022
Interest income, derivative nancial instruments, measured at amortised cost 2,106 0
Other nancial income 126 85
Total 2,232 85
8 Financial expenses 2023 2022
Interest expenses, nancial liabilities, measured at amortised cost (22,085) (4,621)
Interest expense on lease liability (8,006) (8,219)
Interest expenses, derivative nancial instruments, measured at amortised cost 0 (3,019)
Fair value adjustment of virtual power purchase agreement (1,000) 0
Total (31,091) (15,859)
9 Taxes 2023 2022
Current tax (12,970) (8,282)
Deferred tax 2,944 495
Adjustments for prior years, current tax 3,768 (3,755)
Adjustments for prior years, deferred tax (2,516) 6,005
Total (8,774) (5,537)
Tax on the prot for the year results as follows:
Calculated tax, 22.0 % on prot before tax (11,084) (14,769)
Adjustment of calculated tax in foreign entities relative to 22.0 % 829 1,007
Taxeffectof:
Non-taxable income 5,036 10,679
Non-deductible expenses (5,089) (5,198)
Share of net prot/(loss) in joint ventures 17 467
Share of net prot/(loss) in associates 366 95
Adjustments for prior years 1,252 2,250
Withholding taxes (101) (68)
Total (8,774) (5,537)
Effective tax rate 17.4 % 8.2 %
44
Notes to the Consolidated Financial Statements (EURk)
9 Taxes (continued)
The effective tax rate in 2023 was affected by interest limitations, recognition of tax assets not previously recognised in the balance
sheet, as well as other adjustments for prior years. Adjusting for this, the effective tax rate for 2023 was in the level of 20 %.
The effective tax rate in 2022 was affected by non-taxable gains from divestments and value adjustments in connection with
step acquisitions, adjustment of earn-out, as well as adjustments for prior years. Adjusting for this, the effective tax rate for 2022
was in the level of 22 %.
Tax recognised in other comprehensive income:
2023 2022
Tax on value adjustment of hedging instruments (3,618) (7,246)
Foreign exchange adjustments on translation of foreign entities 549 462
Tax on actuarial gains/(losses) on dened benet pension plans 475 (157)
Total (2,594) (6,941)
ImplementationofPillarIIModelRules:
No material impact is expected due to the OECD/EU Pillar II Model Rules and their local implementation. Most countries where
the Group has operations impose taxation in excess of 15 %, and the remainder are expected to increase the tax rate such that
all countries not covered by the transitional safe harbour rules are still expected to show an effective tax rate in excess of 15 %.
45
Notes to the Consolidated Financial Statements (EURk)
10 Intangible assets
Intangible
Film rights assets under
and other In-house development
acquired produced Trade- and pre-
rights rights Goodwill marks payments
Cost at 1 January 2023 655,235 332,191 878,158 253,615 28,579
Adjustments relating to previous years 7,770 0 (2,068) (8,558) 0
Foreign exchange adjustments (8,364) (3,398) (32,975) (13,032) (61)
Additions through business
combinations
365 0 4,643 0 0
Additions 30,225 35,149 95 14,391 41,684
Transferred 45,804 0 0 0 (45,804)
Disposals (8,898) (7,579) (904) (1,041) 0
Cost at 31 December 2023 722,137 356,363 846,949 245,375 24,398
Amortisation and impairment losses at
1 January 2023
(529,988) (260,249) (70,875) (53,267) 0
Adjustments relating to previous years (7,770) 0 2,068 8,558 0
Foreign exchange adjustments 5,815 2,219 6,226 2,363 0
Disposals 5,572 3,178 94 1,061 0
Reversal of previous impairment loss 0 2,279 0 0 0
Impairment losses (10,801) (6,107) 0 (1,508) 0
Amortisation (63,567) (52,635) 0 (12,218) 0
Amortisation and impairment losses (600,739) (311,315) (62,487) (55,011) 0
at 31 December 2023
Carrying amount 121,398 45,048 784,462 190,364 24,398
at 31 December 2023
Cost at 1 January 2022 577,023 287,868 829,990 241,806 21,750
Adjustments relating to previous years 539 5,176 27 0 0
Foreign exchange adjustments (5,160) (6,844) (43,551) (13,091) (36)
Additions through business
combinations
28,476 0 87,229 24,988 357
Additions 25,188 51,123 7,398 (88) 45,991
Transferred 39,153 0 0 0 (39,153)
Disposals (9,984) (5,132) (2,935) 0 (330)
Cost at 31 December 2022 655,235 332,191 878,158 253,615 28,579
Amortisation and impairment losses
at 1 January 2022
(484,229) (221,437) (75,948) (41,864) 0
Adjustments relating to previous years (512) (5,176) 0 0 0
Foreign exchange adjustments 4,183 5,578 3,738 2,819 0
Disposals 7,168 5,132 1,335 0 0
Reversal of previous impairment loss 0 978 0 0 0
Impairment losses (428) (759) 0 (1,981) 0
Amortisation (56,170) (44,565) 0 (12,241) 0
Amortisation and impairment losses (529,988) (260,249) (70,875) (53,267) 0
at 31 December 2022
Carrying amount 125,247 71,942 807,283 200,348 28,579
at 31 December 2022
46
Notes to the Consolidated Financial Statements (EURk)
10 Intangible assets (continued)
Goodwill
The carrying amount of goodwill is tested for impairment annually or if there is any indication of impairment. The impairment
test is made for the Group’s cash-generating units, based on their management structure and internal nancial reporting.
2023 2022
TV 2, Norway 186,692 199,596
Nordisk Film, Cinemas 59,757 62,456
Nordisk Film, Games 122,477 122,868
Story House Egmont 246,735 245,028
Books 159,490 167,999
Other units 9,311 9,336
Carrying amount 784,462 807,283
In the impairment test of the cash-generating units, the recoverable amount, equivalent to the discounted value of expected
future net cash ows, is compared with the carrying amount of the cash-generating units.
The recoverable amount is based on the value in use, determined by using expected net cash ows that are based on
management-approved budgets and business plans for 2024, projections for subsequent years up to and including 2028 (for
Nordisk Film, Games up to 2032), and average growth during the terminal period.
Key assumptions
Revenue and margins
The key assumptions in the calculation of value in use for all cash-generating units are development in revenues and margins
and determination of discount rates and growth rate during terminal period.
TV2,Norway
The TV business is volatile due to various trends and factors shifting the business model and therefore affected by a generally
larger uncertainty regarding the development in revenue and expenses. Combined with increasing prices for acquiring TV
rights related to especially sports events and increasing programme cost for Norwegian TV productions, it may result in a more
volatile EBITDA-margin in the coming years. The value of the business is primarily impacted by the development in advertising
income, number of subscribers and the prices of TV content.
An average annual growth in revenues in the budget and forecast period is expected to be between 2 % and 5 % mainly due to
increase in revenue from subscription sales (TV2 Play) while advertising sales for traditional ow-TV is expected to decline.
Margins are expected to be maintained at more or less the same competitive level based on continued efciencies as well as a
focus on cost savings.
NordiskFilm,Cinemas
The Cinemas cash-generating unit is dependent on a strong line-up of both local and international titles to keep up ticket
revenue (box ofce sales) as well as a strong performance in the gift cards business.
Cinemas are aware of the pressure on the window structure in terms of changes in the length of the cinema exclusivity period
and the risk of titles being released directly to Home Entertainment.
47
Notes to the Consolidated Financial Statements (EURk)
10 Intangible assets (continued)
Revenue in the budget and forecast period is expected to grow between 2 % and 19 % annually as the cinemas business will
return to a new normal subsequent to Covid-19 and a period with low level of releases of new big international titles. Growth
in 2025 is expected to reach 19 % due to the global expansion of the global gift card and from 2025 the growth is expected to
be more stable from 2-5 %. Margins are expected to come under pressure due to increasing xed costs.
NordiskFilm,Games
Revenues in the Games cash-generating unit is expected to grow between 4 % and 18 % annually from an increased
focus on self-published games and work for hire projects while at the same time maintaining a stable cost base resulting in
improved protability. The gaming industry has been facing tough market conditions with gamer publishers holding back and
commissioning fewer new projects. The gaming business in general, however, is expected to be a long-term growth area. Due
to this, the budget period has been extended from 5 to 10 years in the impairment test.
Story House Egmont
The traditional publishing business is expected to be reduced. On the other hand revenue from other business areas such as
e-commerce and agencies are expected to increase again from 2025 after a couple of years with challenging macroeconomic
circumstances. An annual growth in revenue between 1 % and 6 % is expected. At the same time, it is expected that margins
will be stable.
Books
The general shift from analogue to digital sales will continue. The digital business will increase signicantly in both Retail and
Education and be the main driver of growth. An annual growth up to 4 % is expected in the budget and forecast period while
matintaining a stable cost base resulting in slightly improved protability. This is i.e. due to harvesting of the previous years’
heavy investments in digitalizing the audio books and e-books cataloque.
Discountratesandgrowthrateduringterminalperiod
Discount rates are determined for each cash-generating unit on basis of a risk-free rate, plus market risk premium and a small
stock premium.
The risk-free rate is based on an average of 10-year government bond spot rates for Denmark, Norway, and Sweden.
The market risk premium is calculated as a general market risk premium of 5.9 % multiplied by the non-leveraged beta value of
each cash-generating unit. Further, a small-cap premium is added.
The non-leveraged beta values are based on the non-leveraged beta values for peer-group companies.
Expected growth during the terminal period is not estimated to exceed the long-term average growth rate in the business
areas.
On this basis the following pre-tax discount rates and growth rates during terminal period have been applied:
Pre-tax discount Growth rate during
rates terminal period
2023 2022 2023 2022
TV 2, Norway 14.0 % 10.1 % 2.5 % 2.5 %
Nordisk Film, Cinemas 11.3 % 9.1 % 2.0 % 2.0 %
Nordisk Film, Games 13.8 % 12.1 % 2.5 % 2.0 %
Story House Egmont 13.4 % 11.3 % 2.0 % 2.0 %
Books 11.5 % 8.8 % 2.0 % 2.0 %
10 Intangible assets (continued)
The rise in WACC rates are generally driven by higher interest rate premiums and higher small size premiums.
Impairment tests for goodwill for 2023 regarding the identied cash-generating units of the Group show that the recoverable
amount exceeds the carrying amount.
Sensitivity
The Group assesses that probable changes in the assumptions underlying the impairment calculations will not result in a need
to write down goodwill for impairment in the Group’s primary cash-generating units.
Trademarkswithdenitelifetime
The impairment on trademarks with denite lifetime in 2023 is mainly related to e-commerce due to lower revenue (2022:
impairments on e-commerce due to lower revenue).
Trademarks
The carrying amount of trademarks with an indenite life is tested for impairment annually or if there is any indication of
impairment.
2023 2022
TV 2, Norway 124,552 133,490
Trademarks for TV 2, Norway are tested by using the Relief from Royalty method to assess future cash ows from royalty
income for the individual trademarks. The royalty rate, determined on the basis of the cash-generating unit’s products and the
reputation of such products is 4.5 % (2022: 4.5 %).
Key parameters used in the impairment models for the primary cash-generating units:
Pre-tax discount Growth rate during
rates terminal period
2023 2022 2023 2022
TV 2, Norway 13.8 % 10.1 % 2.5 % 2.5 %
Impairment tests for trademarks with an indenite life for 2023 show that the recoverable amount exceeds the carrying
amount.
Sensitivity
The Group assesses that probable changes in the assumptions underlying the impairment calculations will not result in a need
to write down trademarks for impairment in the Group’s primary cash-generating units.
In-house produced rights
The Group makes regular estimates of the remaining useful lives of lm rights and in-house produced lm rights based on
its expected sales in the cinema, transactional home entertainment (TVOD and streaming) and TV media markets, which are
naturally subject to uncertainty as actual sales may differ from estimated sales.
The Group continuously receives sales estimates, and if impairment indicators are identied, lm rights and in-house produced
lms and games rights are written down for impairment. The useful lives of lm rights and in-house produced lm rights for
2023 were in general at the expected level. In 2023, however, a few specic games in development have been cancelled,
which has resulted in impairment of approximately 16 million.
48
Notes to the Consolidated Financial Statements (EURk)
49
11 Property, plant and equipment
Property,
plant and
Leasehold equipment
Land and Plant and Tools and improve- under
buildings machinery equipment ments construction
Cost at 1 January 2023 230,732 79,157 78,956 30,914 2,763
Adjustments relating to previous years 0 0 0 1,414 0
Foreign exchange adjustments (508) (3,986) (980) (747) (30)
Additions 0 4,735 3,146 2,933 4,064
Transferred 687 0 2,309 496 (3,491)
Disposals (1,352) (1,723) (3,821) (151) (72)
Cost at 31 December 2023 229,559 78,183 79,610 34,859 3,234
Depreciation and impairment losses at
1 January 2023
(109,258) (50,184) (56,866) (20,724) 0
Adjustments relating to previous years 0 60 (0) (1,414) 0
Foreign exchange adjustments 247 2,881 101 318 0
Disposals 1,353 1,721 3,033 328 0
Reversal of previous impairment loss 0 0 178 568 0
Impairment losses 0 (16) (475) (382) 0
Depreciation (5,921) (6,328) (7,170) (2,838) 0
Depreciation and impairment losses (113,579) (51,866) (61,199) (24,145) 0
at 31 December 2023
Carrying amount 115,980 26,317 18,411 10,714 3,234
at 31 December 2023
Cost at 1 January 2022 230,357 72,859 87,918 36,915 5,588
Adjustments relating to previous years 0 24 354 (30) 0
Foreign exchange adjustments (2) (3,934) (1,794) (1,052) (96)
Additions through business combinations 18 0 1,581 1,159 0
Additions 1,557 10,402 10,355 2,300 2,687
Transferred 775 0 2,906 1,481 (5,162)
Disposals (1,973) (194) (22,364) (9,859) (254)
Cost at 31 December 2022 230,732 79,157 78,956 30,914 2,763
Depreciation and impairment losses at
1 January 2022
(104,932) (43,661) (71,679) (28,574) 0
Adjustments relating to previous years 0 (6) 56 (32) 0
Foreign exchange adjustments 145 2,949 1,747 1,071 0
Disposals 1,973 194 22,155 9,717 0
Impairment losses (28) (589) (2,398) (362) 0
Depreciation (6,416) (9,071) (6,747) (2,544) 0
Depreciation and impairment losses (109,258) (50,184) (56,866) (20,724) 0
at 31 December 2022
Carrying amount 121,474 28,973 22,090 10,190 2,763
at 31 December 2022
Notes to the Consolidated Financial Statements (EURk)
50
12 Investment properties 2023 2022
Fair value at 1 January 45,003 40,611
Foreign exchange adjustments (99) 0
Fair value adjustment 162 734
Construction in progress 0 3,658
Fair value at 31 December 45,066 45,003
Investment properties consist of a rental property in Denmark, let under a long-term lease. The fair value is calculated according
to the net rental method, and thus the value of the property has been calculated on the basis of its expected operating income
(pre-tax return) of 2,831 (2022: 2,841) and a required rate of return of 3.88 % (2022: 3.38 %), determined on the basis of the
general market level and specic circumstances relating to the property (level 3). Fair value adjustment of investment properties
in 2023 amounts to 162 (2022: 734).
If the required rate of return increase or decrease by 0.25 %, the fair value of the investment property will be affected by approx
3.0 million.
Rental income amounted to 2,194 (2022: 2,090) and operating costs to 668 (2022: 666).
13 Lease assets 2023 2022
Carrying amount at 1 January 154,440 147,927
Foreign exchange adjustments (5,349) (5,750)
Additions through business combinations 0 0
Re-measurement 25,666 19,646
Additions, net 1,786 24,099
Depreciation (32,743) (30,336)
Impairment (132) (1,146)
Carrying amount at 31 December 143,668 154,440
The lease assets consists mainly of property leases (rent of cinemas, ofces, stores and warehouses etc). The lease contracts
are typically made for xed periods of 2 to 10 years, but may have extension options included in the lease term. Lease terms
are negotiated on an individual basis and contains different terms and conditions including payment terms, termination rights,
index-regulations, maintenance etc.
Extension and termination options are typically found in leases in order to maximise operational exibility in terms of managing
contracts.
Recognised in profit and loss: 2023 2022
Depreciation of lease assets 32,743 30,336
Impairment of lease assets 132 1,146
Interest expense on lease liabilities 8,006 8,219
Lease expenses related to variable lease payments
not included in the lease liabilities
4,695 1,921
Lease payments relating to short-term leases
(under 12 months) and low-value leases
1,807 579
Some property leases contain variable payment terms that are linked to an index or revenue e.g. sale of cinema tickets.
In 2023, an amount of 132 has been impaired on certain onerous locations (2022: 1,146 primarily in our e-commerce business).
Notes to the Consolidated Financial Statements (EURk)
51
14 Investments in joint ventures 2023 2022
Cost at 1 January 21,793 22,382
Transfer 2,528 1,394
Foreign exchange adjustments (969) (767)
Additions 750 380
Disposals 0 (1,596)
Other adjustments (60) 0
Cost at 31 December 24,042 21,793
Adjustments at 1 January 14,931 14,585
Transfer (2,528) (1,394)
Foreign exchange adjustments (828) (473)
Share of prot for the year 75 2,121
Equity transactions in joint ventures (2,840) 1,742
Dividends (1,223) (2,565)
Disposals 534 915
Other adjustments (3,539) 0
Adjustments at 31 December 4,582 14,931
Carrying amount at 31 December 28,624 36,724
Key figures in joint ventures 2023 2022
Comprehensive income
Revenue 178,085 175,148
Net prot for the year 3,891 4,443
Dividend received 1,223 2,565
Balance sheet
Non-current assets 16,031 12,378
Current assets 62,156 75,476
Non-current liabilities 1,182 4,530
Current liabilities 46,402 48,350
Equity 30,601 34,973
Egmont Fonden’s share of equity 15,085 17,348
Goodwill 13,539 19,376
Investments in joint ventures 28,624 36,724
The Group has investment in 10 joint ventures. No joint ventures are presented separately as they are considered individually
immaterial relatively to the total portfolio.
Notes to the Consolidated Financial Statements (EURk)
52
15 Investments in associates 2023 2022
Cost at 1 January 147,058 154,519
Adjustments to previous years 1,129 0
Foreign exchange adjustments (8,247) (5,150)
Additions 1,022 2,325
Disposals 0 (4,636)
Cost at 31 December 140,962 147,058
Adjustments at 1 January (28,170) (8,106)
Adjustments to previous years (1,129) 0
Foreign exchange adjustments 2,570 1,536
Share of prot/(loss) for the year 1,665 434
Dividends (2,696) (2,809)
Disposals 0 (19,225)
Other adjustments 2,325 0
Adjustments at 31 December (25,435) (28,170)
Carrying amount at 31 December 115,527 118,888
Star Stable Jollyroom Others
Key figures in associates 2023 2022 2023 2022 2023 2022
Comprehensive income
Revenue 28,049 33,323 145,152 171,448 129,357 105,668
Net prot for the year (1,107) (3,293) (3,714) (4,122) 11,330 5,294
Dividend received 0 0 0 0 2,696 3,082
Balance sheet
Non-current assets 1,419 2,849 14,337 14,841 75,727 52,923
Current assets 6,212 5,166 32,072 41,259 55,293 102,794
Non-current liabilities 811 3,663 4,939 8,285 7,793 10,669
Current liabilities 4,271 2,825 32,095 38,073 72,797 101,170
Equity 2,549 1,527 9,375 9,742 50,430 43,878
Egmont Fonden’s share of equity 1,451 864 4,463 4,772 20,923 18,896
Goodwill and other PPA-values 46,611 52,369 18,675 20,759 23,404 21,228
Investments in associates 48,062 53,233 23,138 25,531 44,327 40,124
Star Stable hosts the biggest online horse game and ts into Egmont’s games strategy. Jollyroom is the biggest e-commerce
business in the Nordics within parenting and is a part of Egmont’s strategic e-commerce portfolio.
Notes to the Consolidated Financial Statements (EURk)
53
16 Inventories 2023 2022
Raw materials and consumables 4,443 4,360
Work in progress 5,139 2,325
Manufactured goods and goods for resale 174,871 182,788
TV programmes 8,044 12,908
Total 192,497 202,381
At the end of the reporting period, the Group estimates the write-down to realisable value for manufactured goods and goods
for resale, which primarily relates to books and e-commerce. The estimate is based on expected sales and therefore subject to
some uncertainty.
The cost of inventories sold and write-down of inventories for the year amounted to 776,023 (2022: 697,380) and 12,307
(2022: 9,003), respectively. Reversed write-down of inventories in the income statement amounted to -3,992 (2022: -2,705).
Inventories included capitalised payroll costs in the amount of 1,568 (2022: 737).
17 Prepayments
Prepayments include sports broadcasting rights amounting to 7,229 (2022:10,595), which are utilized more than 12 months
from balance sheet day.
18 Cash and cash equivalents
Cash and cash equivalents include xed-term deposits of 903 (2022: 1,660). Cash and cash equivalents pledged as collateral
amounted to 2,632 (2022: 2,536).
19 Equity
Egmont Fonden is an enterprice foundation and thus subject to special conditions relating to its capital, as set out in the
Foundation’s Charter. The Foundation’s assets are used for donations in connection with the Foundation’s Charitable Activities.
The balance of Egmont Fonden’s assets is transferred to a reserve to ensure that the Foundation is provided with the necessary
capital for consolidating and expanding in accordance with sound principles. Egmont Fonden’s equity ratio stood at 43.9 %
(2022: 42.5 %).
20 Hedging instruments 2023 2022
Value adjustments for the year (604) 7,730
Value adjustments transferred to other external expenses 14,803 24,630
Value adjustments transferred to nancial expenses 1,428 1,803
Total 15,627 34,163
Notes to the Consolidated Financial Statements (EURk)
54
21 Other comprehensive income
Reserve for
Reserve for foreign Non-
Capital hedging exchange Retained controlling Total
fund transactions adjustments earnings interests equity
Actuarial gains/(losses) on dened
benet pension plans
0 0 0 (1,037) 0 (1,037)
Equity transactions in joint ventures
and associates
0 0 0 (2,840) 0 (2,840)
Foreign exchange adjustments on
translation to presentation currency
(64) (49) 0 (2,706) (32) (2,851)
Foreign exchange adjustments on
translation of foreign entities
(0) 987 (49,131) (37) 54 (48,127)
Net value adjustments of hedging
instruments
0 15,627 0 0 0 15,627
Tax on other comprehensive income 0 (3,618) 549 475 0 (2,594)
Other comprehensive income 2023 (64) 12,946 (48,582) (6,145) 22 (41,822)
Actuarial gains/(losses) on dened
benet pension plans
0 0 0 712 0 712
Equity transactions in joint ventures
and associates
0 0 0 1,742 0 1,742
Foreign exchange adjustments on
translation to presentation currency
0 1 2 (124) 0 (121)
Foreign exchange adjustments on
translation of foreign entities
0 1,886 (65,175) 0 (366) (63,655)
Net value adjustments of hedging
instruments
0 34,163 0 0 0 34,163
Tax on other comprehensive income 0 (7,246) 462 (157) 0 (6,941)
Other comprehensive income 2022 0 28,803 (64,713) 2,173 (366) (34,100)
22 Pension obligations and similar obligations 2023 2022
Dened benet pension obligations 607 1,342
Other pension obligations (2,080) (3,576)
Total (1,473) (2,234)
Pensions:
The Group mainly has dened contribution pension plans, but also has collective pension plans (multi-employer plans) as well as
dened benet pension plans.
Multi-employerplans:
The Group has collective pension plans in Sweden that are entered into with other enterprises (ITP plans). ITP-plans are classied
as multi-employer plans. Such plans are dened benet plans, but are treated as dened contribution plans according to IAS
19. Contributions made to collective pension plans in Sweden in 2023 amount to 3.0 million (2022: 3.3 million). For 2024, the
contributions are expected to be 3.2 million.
Denedbenetpensionplans:
The Group has dened benet pension plans in Norway. These pension plans are funded in whole or in part through collective
insurance plans with Kommunal Landspensjonskasse who manages the administration and the investment of the members’
pension funds. The Group is exposed to actuarial risks including risks on investment and interest rate and mortality. The Group’s
remaining dened pension plans in Norway are closed for new members.
Notes to the Consolidated Financial Statements (EURk)
55
22 Pension obligations and similar obligations (continued)
Defined benefit pension obligations recognised in the balance sheet 2023 2022
Present value of dened benet pension obligations (13,060) (14,313)
Fair value of pension plan assets 13,686 15,736
Payroll tax (19) (81)
Net asset/(liability) at 31 December 607 1,342
Composition of pension plan assets ( %)
Bonds 38.0 % 40.1 %
Shares 31.8 % 29.0 %
Money market and the like 16.5 % 16.1 %
Property 13.7 % 14.8 %
The Group expects to contribute 299 to dened benet pension plans in 2024.
Maturity of pension obligations 2023 2022
Within 1 year 689 886
Between 1 - 5 years 3,839 4,688
After 5 years 8,532 8,739
Total 13,060 14,313
Key assumptions used for the actuarial calculations
in the individual pension plans: 2023 2022
Discount rate 3.1 % 3.0 %
Ination rate 2.3 % 2.0 %
Salary increase 3.5 % 3.5 %
Pension increase 1.8 - 3.25 % 1.5 - 3.25 %
Mortality table K2013/KU K2013/KU
Sensitivity analysis:
The analysis shows that uctuations are insignicant.
Other pension obligations:
The Group has recognised an obligation of 2.1 million (2022: 3.6 million) to cover other pension-like obligations, including
primarily job security agreements in a number of subsidiaries. The benet payments are conditional upon specied requirements
being met.
Notes to the Consolidated Financial Statements (EURk)
56
23 Deferred tax 2023 2022
Deferred tax at 1 January (29,670) (23,432)
Adjustments relating to previous years (2,516) 6,005
Foreign exchange adjustments 4,030 (2,061)
Additions through business combinations 0 (3,736)
Deferred tax for the year recognised in the income statement 2,944 495
Deferred tax for the year recognised in other comprehensive income (3,350) (6,941)
Deferred tax at 31 December (28,562) (29,670)
Deferredtaxhasbeenrecognisedinthebalancesheetasfollows:
Deferred tax, asset 11,101 5,284
Deferred tax, liability (39,663) (34,954)
Deferred tax, net (28,562) (29,670)
Deferred tax assets are recognised for all unutilised tax losses to the extent it is considered probable that taxable prots will be
realised in the foreseeable future against which the losses can be offset. The amount to be recognised in respect of deferred tax
assets is based on an estimate of the probable time of realising future taxable prots and the amount of such prots.
The Group has assessed that deferred tax assets totalling 11,101 (2022: 5,284), primarily attributable to tax losses in Germany
and United Kingdom can be realised in the foreseeable future. This is based on the forecasted earnings of the enterprises in
which tax assets can be utilised.
The deferred tax relates to 2023 2022
Intangible assets (50,084) (57,436)
Property, plant and equipment 8,424 4,696
Receivables (6,598) (3,261)
Inventories 3,311 1,977
Other current assets (1,774) (2,957)
Provisions 7,274 31,291
Other liabilities (8,301) (16,036)
Tax losses allowed for carryforward, etc. 19,186 12,056
Total (28,562) (29,670)
Unrecognised deferred tax assets
The total tax value of unrecognised tax loss carryforwards amounts to 18,853 (2022: 17,217).
Tax loss carryforwards relates to Denmark, Sweden, Norway and United Kingdom.
Notes to the Consolidated Financial Statements (EURk)
57
Goods sold with
24 Other provisions a right of return Other
Other provisions at 1 January 2023 43,338 98,929
Foreign exchange adjustments (563) (5,705)
Provisions made 32,735 19,125
Provisions used (27,911) (36,218)
Reversals (2,918) (2,671)
Other provisions at 31 December 2023 44,680 73,460
Goods sold with a right of return include magazines and books that the shops can return according to agreement. At the date of
sale, the Group estimates how many goods are expected to be returned or exchanged based on historical experience of selling
such goods. This estimate is naturally subject to uncertainty, as the quantity actually returned may deviate from the estimated
quantity. However, the uncertainty concerning the return of magazines is limited due to the short period allowed for returning
them.
Other provisions primarily comprise of warranty provisions, provisions for onerous contracts and provisions for pending litigation
and claims. Warranty provisions is recognized at its gross liability amount, in respect of which expected partial compensation
from the supplier is recognised in other receivables.
Provisions for onerous contracts are recognized at the estimated loss of fullling the contractual obligations assessing the future
income from the contracts and the direct costs related to the fullling of the contracts.
In 2023, the provisions used and made during the year primarily comprise of an additional provision for onerous contracts
relating to content supply agreements.
Right of return assets are recognised as part of inventory.
25 Fees to auditors 2023 2022
FeetoPWC/EY:
Statutory audit (1,581) (1,493)
Tax consultancy (227) (306)
Other assurance statements (95) (215)
Other services (684) (549)
Total fees to PWC/EY (2,587) (2,563)
Feetootherauditors:
Statutory audit (217) (196)
Tax consultancy (144) (129)
Other assurance statements (283) (237)
Other services (251) (384)
Total fees to other auditors (895) (946)
Total (3,319) (3,509)
Notes to the Consolidated Financial Statements (EURk)
58
26 Contingent liabilities and collateral
The Group has provided security to mortgage credit institutions of 111,040 (2022: 111,285) over domicile and investment
properties, with a carrying amount of 137,274 (2022: 133,336).
Entities in the Group have furnished oating charge securities of 24,357 (2022: 20,216)
The Group has entered into binding contracts concerning purchase of intangible lm rights of 27,801 (2022: 35,839).
The Group has entered into binding contracts concerning content supply, which are not recognized in the balance sheet. The
contractual nominal obligation amount to 565,130 (2022: 782,979). The contracts fall due over the various contract lengths up
to 8 years from the balance sheet date.
Entities in the Group have furnished miscellaneous guarantees, etc., for 13,775 (2022: 10,865).
Contingent assets
The Group has raised a claim regarding repayment of previous paid earn-out of up to 6 million.
27 Financial risks and financial instruments
As a result of its operations, investments and nancing, the Group is exposed to certain nancial risks. Primarily related to
foreign exchange and interests.
Corporate Finance is responsible for centralised management of liquidity and nancial risks in the Group’s wholly owned
entities. Corporate Finance operates as counterparty to the Group’s entities, thus undertaking centralised management of
liquidity and nancial risks. Liquidity and nancial risks arising in joint ventures and associates are reported to Corporate Finance
and thus managed on a decentralised basis. Management monitors the Group’s nancial risk concentration and nancial
resources on an ongoing basis.
The overall framework for nancial risk management is laid down in the Group’s Treasury Policy approved annually by the
Board of Directors. The Treasury Policy comprises the Group’s currency and interest rate policy, nancing policy and policy
regarding credit risks in relation to nancial counterparties and includes a description of approved nancial instruments and risk
framework. The overall framework is assessed on an ongoing basis.
The Group’s policy is to refrain from engaging in speculative transactions. Thus, the Group’s nancial management focuses
exclusively on managing nancial risks that are a consequence of the Group’s operations, investments and nancing.
Currency risks
The Group is exposed to exchange rate uctuations as a result of the individual consolidated enterprises entering into purchase
and sales transactions and having receivables and payables denominated in currencies other than their functional currency.
Forward exchange contracts are used to ensure that the actual exposure does not exceed the currency exposure limit of the
Group.
The Group is using forward contracts to hedge currency risks related to purchase of lm rights and sports broadcasting rights.
The cumulative value adjustments recognised in other comprehensive income amount to 13.3 million (2022: -2.8 million) before
tax, which will be recognised in the income statement during 2024-2028.
Notes to the Consolidated Financial Statements (EURk)
59
27 Financial risks and financial instruments (continued)
As at 31 December 2023, a drop of 5 % in the EUR/NOK exchange rate and an increase of 5 % in the USD/DKK exchange rate
would affect other comprehensive income with -10.4 million (2022:-16.2 million). The sensitivity analysis is based on nancial
instruments recognised at 31 December and an effectiveness of 100 % of hedge accounting.
Translation risks
The Group’s primary currency risk exposure is denominated in NOK and relates to the Group’s investments in wholly-owned
entities and joint ventures, including long-term intra-group loans. As a main rule, these currency risks are not hedged, as
ongoing hedging of such long-term investments is not considered to be the best strategy based on overall risk and cost
considerations. Due to increase in exchange rate, the equity in 2023 is affected negatively by 48.1 million (2022: negatively by
63.7 million).
A 5 % drop in the exchange rates of NOK would have impacted the 2023 prots by about -0.8 million (2022: -1.0 million), and
the equity at 31 December 2023 by about -30.1 million (2022: -33.3 million). A positive change in foreign exchange rates would
have a reverse impact on prots and equity at end-2023 and end-2022 all other things being equal.
Interest rate risks
As a result of its investment and nancing activities, the Group has an exposure related to uctuations in interest rate levels.
The Group’s policy is to hedge interest rate risks relating to loans when it is assessed that interest payments may be secured
at a satisfactory level. The Group’s interest rate risks are managed by entering into interest swap contracts, with oating-rate
loans being converted into xed-rate interest loans. The principal amount of interest swap contracts concluded by the Group
for hedging purposes was 97.8 million at 31 December 2023 and 76.1 million at 31 December 2022. The cumulative fair value
adjustments in other comprehensive income amounted to -4.3 million at 31 December 2023 (2022: -6.1 million) before tax,
which will be recognised in the income statement over the coming 1-5 years (2022: 1-6 years).
As a result of the Group’s use of derivative nancial instruments to hedge its interest rate exposure relative to instruments of
debt, changes in the fair value of the hedging instruments will impact the Group’s reserve for hedging transactions under equity.
A one percentage point drop in interest rates would reduce equity by about EUR -3 million. In addition, a 1 % interest rate
increase will not affect the income statement in any material way, due to the limited amounts of net nancial debt (excl. leases)
and use of interest rate swaps. Had the interest rate level been 1 % higher during 2023, net interest cost in the income statement
would have increased by 2 million (2022: 2 million).
Liquidity risks
The Group’s liquidity reserve comprises cash and cash equivalents, securities and unutilised credit facilities. To ensure optimum
utilisation of cash and cash equivalents, the Group operates with cash pools.
The Group’s nancing consists primarily of Danish oating-rate mortgage loans expiring in 2039 and 2043 respectively and
oating-rate loans denominated in NOK and EUR with the underlying facility having maturity in 2028. The loans are subject to
standard covenant reporting.
The Group has net interest-bearing debt of 450.8 million (2022: 495.1 million).
Notes to the Consolidated Financial Statements (EURk)
60
27 Financial risks and financial instruments (continued)
The Group’s liabilities other than provisions fall due as shown below. The debt repayment schedule is based on undiscounted
cash ows incl. estimated interest payments based on current market conditions:
Carrying Contractual Within 1 to 5 After
amount cash flows 1 year years 5 years
Mortgage debt 111,040 186,735 5,115 20,342 161,278
Other credit institutions 211,561 241,658 56,702 184,956 0
Lease liabilities 176,444 201,663 43,123 130,842 27,699
Trade payables 307,068 307,068 307,068 0 0
Payables to joint ventures and associates 375 375 375 0 0
Non-derivative financial instruments 806,488 937,499 412,382 336,140 188,977
Derivative nancial instruments 19,537 20,438 14,106 5,891 441
31 December 2023 826,025 957,936 426,488 342,031 189,417
Mortgage debt 111,285 164,123 3,400 13,716 147,007
Other credit institutions 253,481 264,654 179,413 32,845 52,396
Lease liabilities 189,857 219,967 42,722 123,762 53,483
Trade payables 302,918 302,918 302,918 0 0
Payables to joint ventures and associates 191 191 191 0 0
Non-derivative financial instruments 857,732 951,853 528,644 170,323 252,886
Derivative nancial instruments 9,662 10,250 5,037 5,213 0
31 December 2022 867,394 962,103 533,681 175,536 252,886
The total cash outow for lease assets amounted to 44.6 million (2022: 41.8 million) of which installment on lease assets
amounted to 36.6 million (2022: 33.6 million).
Total
liabilities
Non-current Current from
Changes in liabilities arising Non-current lease Current lease financing
from financing activities borrowings liabilities borrowings liabilities activities
1 January 2023 347,583 153,869 17,183 35,988 554,623
Cash ows, net (72,934) 0 32,986 (36,494) (76,442)
Other * 0 (10,113) 0 39,006 28,893
Foreign exchange adjustments (758) (4,916) (1,460) (896) (8,030)
31 December 2023 273,891 138,840 48,709 37,604 499,045
1 January 2022 167,045 166,846 20,120 19,469 373,480
Adjustments relating to previous years 0 (12,126) 0 12,126 0
Additions through business combinations 2,292 0 5,325 0 7,617
Cash ows, net 178,264 0 (7,788) (33,019) 137,457
Other * 0 5,319 0 38,562 43,881
Foreign exchange adjustments (18) (6,170) (474) (1,150) (7,812)
31 December 2022 347,583 153,869 17,183 35,988 554,623
* Other includes additions and remeasurement of lease liablities.
Notes to the Consolidated Financial Statements (EURk)
61
27 Financial risks and financial instruments (continued)
Credit risks
The Group’s credit risks relate primarily to trade receivables and cash and cash equivalents. The Group is not exposed to any
signicant risks associated with a particular customer or business partner. According to the Group’s policy for accepting credit
risk, all major customers are regularly credit rated.
Tradereceivables:
Lifetime expected loss allowance for group trade receivables is calculated on basis on a simplied approach. To measure the
expected credit losses, trade receivables are grouped based on shared credit risk characteristics. The expected loss rates are
based on historical credit losses experienced in the last 3 years (2020-2023). The historical loss rates are adjusted to reect
current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the
receivables on basis of development in corporate insolvencies in the geographical areas.
On that basis, the impairment can be determined as follows:
Trade receivables 2023 2022
Receivables related to third-party sales of goods and services 264,125 235,884
Contract assets 1,536 10,062
Total trade receivables at 31 December 265,661 245,946
Ageing of trade receivables at 31 December 2023 2022
Not past due 213,226 212,580
Up to 30 days 36,779 24,432
Between 30 and 90 days 8,449 3,487
Over 90 days 7,206 5,447
Total 265,661 245,946
For certain sales the Group receives collateral. This occurs typically in connection with the distribution of magazines where
deposits are received. Trade receivables secured by collateral, with a consequent reduction in overall credit risk, amount to
46,394 (2022: 48,322). In addition, some of the Group’s entities take out credit insurance against losses on trade receivables to
the extent deemed relevant.
The development in the impairment of trade receivables can be specied as follows:
Development in impairment losses on trade receivables 2023 2022
Impairment at 1 January 5,176 4,676
Foreign exchange adjustments (139) (138)
Impairment in the year 822 2,423
Realised losses (832) (696)
Unused amounts reversed (1,264) (1,089)
Impairment at 31 December 3,763 5,176
Notes to the Consolidated Financial Statements (EURk)
62
27 Financial risks and financial instruments (continued)
Securities,cashandcashequivalents:
The Group is exposed to counterparty risk through its cooperation with nancial counterparties via funds deposited, but also via
credit commitments. The Group manages this risk by cooperating with banks with a sound credit rating.
Categories of financial instruments 2023 2022
Financial assets measured at fair value via the income statement 10,202 9,174
Financial assets used as hedging instruments 1,397 5,743
Financial assets measured at amortised cost 406,172 402,432
Financial liabilities measured at fair value via the income statement 0 12,186
Financial liabilities used as hedging instuments 19,537 7,248
Financial liabilities measured at amortised cost 806,488 857,732
The carrying amount of receivables and other nancial liabilities (current) is equal to the fair value.
Mortgage debt and debt to other credit institutions (non-current) are oating-rate cash loans, and thus the fair value is in all
material aspects equal to the carrying amount.
Derivative nancial instruments are valued at fair value on the basis of inputs other than listed prices that are observable for the
liability, either directly or indirectly (level 2). Put- and call-options are valued at fair value on basis of expected future discounted
cash-ows (level 3).
28 Related parties
Egmont Fonden, as the parent company in the Group, is an enterprice foundation and has no owner with control.
The Egmont Group’s related parties with signicant inuence comprise the foundation’s Board of Directors, Management Board
and their close relatives, as well as enterprises in which this group of persons has material interests. The compensation paid to
the Board of Directors and Management Board is disclosed in note 4.
Related parties with signicant inuence also comprise joint ventures and associates; see notes 14, 15 and 33.
Transactions with joint ventures and associates:
2023 2022
Joint ventures Associates Joint ventures Associates
Receivables 1,231 3,745 2,457 2,078
Payables 374 1 191 0
Revenue 12,273 0 14,801 0
Interest income 0 0 11 0
29 Deferred income - Contract liabilities
Contract liabilities comprise deferred income amounting to 99.9 million at 31 December 2023 (2022: 117.7 million). Deferred
income relate to subscriptions, gift cards, etc.
Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period
amounts to 112.4 million (2022: 97.6 million).
Notes to the Consolidated Financial Statements (EURk)
63
30 Standards and interpretations not yet adopted
Management has assessed the impact of new or amended accounting standards and interpretations (IFRSs and IFRICs) issued by
the IASB and IFRSs endorsed by the European Union effective on or after 1 January 2023. Management assessed that application
of these has not had a material impact on the consolidated nancial statements for 2023.
Furthermore, Management has assessed the impact of new or amended accounting standards and interpretations (IFRSs and
IFRICs) issued by the IASB that have not yet become effective. No new or amended accounting standards or interpretations
(IFRSs and IFRICs) have been early adopted. Management does not anticipate any signicant impact on the consolidated
nancial statements in the period of initial application after the adoption of these amendments.
31 Subsequent events
Apart from the events recognised or disclosed in the consolidated nancial statements, no events have occurred after the
reporting period.
32 Acquisition and divestment of businesses
Acquisitions in 2023
In 2023, the Group has acquired 100 % of the shares in Nordic Social ApS and 100 % of the shares in Reload Digital Ltd.
The acquisitions made in 2023 have not impacted revenue nor EBIT materially.
Reload Nordic
Fair value at acquisition date Digital Ltd. Social ApS Total
Intangible assets 365 0 365
Other non-current assets 24 0 24
Current assets 720 302 1,022
Current nancial liabilities 0 (199) (199)
Other current liabilities (692) (46) (738)
Identiable net assets 417 57 474
Goodwill 3,909 735 4,643
Purchase consideration 4,325 792 5,117
Cash and cash equivalents, acquired (434) (98) (532)
Contingent purchase consideration (Earn outs) (486) (322) (808)
Total cash consideration paid 3,405 372 3,777
Transaction costs attributable to the acquisitions are recognised in Other external expenses when incurred, but are immaterial, as
the due diligence process was handled inhouse, hence there were no signicant external transaction costs in connection with the
acquisitions.
Reload Digital Ltd.
The Group acquired 100 % of the shares in Reload Digital Ltd., a premium, multi-service digital marketing agency offering
performance marketing, search engine optimization, content, e-mail and consulting services to international and UK retailer
brands. The shares were acquired on 1 December 2023.
Goodwill is mainly related to the workforce and the knowhow within the company. Additional adjustments includes the value of
customer relationships, which both were recognised as intangible assets.
Notes to the Consolidated Financial Statements (EURk)
64
32 Acquisition and divestment of businesses (continued)
Nordic Social ApS
The Group acquired 100 % of the shares in Nordic Social ApS, a digital marketing agency offering services within social media
platforms, content production, SoMe strategy, etc. The shares were acquired on 30 June 2023.
Goodwill is mainly related to the workforce and the knowhow within the company.
Other acquisitions in 2023
The Group acquired 100 % of the shares in Bamse Förlaget AB, which holds the rights to the ‘Bamse’ brand. This transaction,
however, is not considered a business combination in terms of IFRS 3, hence the acquisition is included as acquisition of trademarks
with an amount of 14,391, cf. note 10.
Divestments in 2023
Due to a capital increase in Nitro Games Oyj, where Egmont did not exercise its investment rights, Egmont’s ownership was diluted
from 50.3 % to 26.0 % and thus reclassied to associated companies, cf. note 15. The divestment as a consolidated subsidary
resulted in a gain of 916 thousands, which is recognized as other operating income.
The impact on revenue and EBIT from the divestment is insignicant.
Acquisitions in 2022
In 2022, the Group has acquired the remaining 69 % of the shares in Supermassive Games Ltd. (and now holds 100 % of the
shares), 100 % of the shares in Clio ApS, 100 % of the shares in Dotbooks GmbH and 100 % of the shares in AndLight ApS.
Furthermore, the Group has acquired other businesses for a total of 3.2 million.
The acquisitions made in 2022 have impacted revenue with 47.4 million amounting to 2.3 % of the total revenue growth in 2022.
Full-year impact on revenue relating to the acquisitions amount to 97.4 million. EBIT for 2022 was impacted with 2.3 million.
Super-
Fair value at massive dotbooks AndLight
acquisition date Games Ltd. Clio ApS GmbH ApS Others Total
Intangible assets 30,181 12,707 8,095 661 2,177 53,821
Property, plant and equipment 2,386 122 0 55 195 2,758
Other non-current assets 0 65 0 77 45 187
Current assets 30,661 2,652 309 3,061 7,999 44,682
Non-current nancial liabilities (2,292) 0 0 0 0 (2,292)
Other non-current liabilities (2,342) 0 0 (313) 0 (2,655)
Current nancial liabilities (4,233) (1,033) 0 0 (57) (5,323)
Other current liabilities (8,814) (8,818) (2,704) (2,561) (7,163) (30,060)
Identifiable net assets 45,547 5,695 5,700 980 3,196 61,118
Goodwill 36,936 28,307 3,861 9,127 8,998 87,229
Minority interest 0 0 0 0 (608) (608)
Purchase consideration 82,483 34,002 9,561 10,107 11,586 147,739
Cash and cash equivalents, acquired (5,614) 0 227 (189) (2,895) (8,471)
Contingent purchase consideration (Earn outs) (4,872) 0 0 (4,901) 0 (9,772)
Fair value of existing share of net assets
in connection with step-acquisitions
(20,581) 0 0 0 (5,545) (26,126)
Total cash consideration paid 51,416 34,002 9,789 5,017 3,146 103,370
Notes to the Consolidated Financial Statements (EURk)
65
32 Acquisition and divestment of businesses (continued)
Transaction costs attributable to the acquisitions are recognised in Other external expenses when incurred, but are immaterial, as
the due diligence process was mainly handled inhouse, hence there were no signicant external transaction costs in connection
with the acquisitions.
Supermassive Games Ltd., United Kingdom
The Group acquired the remaining 69 % of the shares (and now holds 100 % of the shares) in Supermassive Games Ltd.,
one of the larger gaming studios in United Kingdom with appox. 300 employees. Supermassive is specialised in narrative
games especially within the horror genre, where it is one of the market leaders, and have sold millions of games and won
several awards. The company has great success of creating high quality games for other companies (Work for Hire) as well as
co-nancing with publishers where Supermassive retains the IP. The shares were acquired from the founders on 8 July 2022.
Goodwill is mainly related to the workforce and the knowhow within the company. Additional major adjustments includes the
trademark Supermassive and value of The Quarry (an interactive movie horror game), which both were recognised as intangible
assets.
Clio Aps, Denmark
The Group acquired 100 % of the shares in Clio ApS, a leading provider of digital learning (Platform and Content) for educational
institutions in the primary school market. The company operates primarily from the headquater in Copenhagen and secondly from
Stockholm, where it has a growing presence. The shares were acquired from the corporate venture capital rm Bonnier Capital AB
on 9 August 2022.
Goodwill is mainly related to the synergy aspects of the operational integration with Lindhardt og Ringhofs digital learning
platform. Additional major adjustments includes contract rights and customer relationships, which were recognised as intangible
assets.
dotbooks GmbH, Germany
The Group acquired 100 % of the shares in dotbooks GmbH, a German publishing house, almost exclusively publishing e-books,
with headquarters in Munich. dotbooks was founded in 2012 and was one of the rst German e-book publishers. Today the
Company operates as the largest independent e-book publisher in Germany and hold appr. 14 % of the German e-book market.
The shares were acquired from the founders as well as a venture capital investor on 5 July 2022.
Rights to sell e-books and digital books as well as goodwill were recognised as intangible assets. Goodwill is mainly related to the
workforce and the knowhow within the company related to the management as well as the skills of the general workforce.
AndLight ApS, Denmark
The Group acquired 100 % of the shares in Andlight ApS, a Danish E-commerce player within the lightning segment. AndLight
ApS operates from its headquarters in Copenhagen and has both domestic and international presence. The entity operates an
e-commerce shop as well as a physical outlet. The shares were acquired from the founder and the company partners on 2 May
2022.
Goodwill is mainly related to the workforce and the knowhow within the lighting segment. Goodwill and the trademark AndLight
were recognised as intangible assets.
Notes to the Consolidated Financial Statements (EURk)
66
32 Acquisition and divestment of businesses (continued)
Other acquisitions in 2022
In 2022, Story House Egmont acquired 51 % of the shares in Dazy AB (a Swedish full service digital marketing agency) in order to
continue to further strengthen the agency position in Sweden. Lindhardt & Ringhof Forlag A/S acquired a further 24 % of the shares
in Praxis Forlag A/S (and now has a majority share of 75 %) in order to continue to further strengthen the position within teaching
materials for the upper secondary educational market. Story House Egmont acquired 25.4 % of the shares in MarkedsPartner AS
(and now has a majority share of 50,3 %) and continues its venture into digital marketing.
Divestments in 2022
No divestments of subsidiaries in 2022.
Notes to the Consolidated Financial Statements (EURk)
67
33 Group entities
Unless otherwise stated, the entities are owned by 100 %.
* Entities owned directly by Egmont Fonden.
** Entities which do not prepare ofcial annual reports.
*** Due to voting rights and/or specic sections in the shareholders’ agreements, Egmont does not have control
despite owning above 50 % of the shares in the entities.
SUBSIDIARIES
Registered Ownership share
Country Entity office 2023 2022
Denmark Egmont International Holding A/S * Copenhagen
Clio ApS Copenhagen -
(MergedwithLindhardtogRinghofForlagA/S)
Story House Egmont A/S Copenhagen
Egmont Printing Service A/S Copenhagen
Egmont Creative Solutions A/S Copenhagen
GoShopping ApS Herning
BagarenochKockenABowns
Unique Models of Copenhagen A/S Copenhagen 60 % 60 %
s360 A/S Aarhus 53.5 % 50.5 %
Nordic Social ApS Copenhagen - -
(Merged with s360 A/S)
Drive Studios ApS Copenhagen 80.84 % 71.15 %
Flashbulb ApS Copenhagen
Helion B2B A/S Copenhagen
HelionB2BGroupApSowns 94 % 100 %
Helion B2B Group ApS Aarhus
s360A/Sowns 62.5 % 62.5 %
GoTutor Denmark ApS Copenhagen 60 % 60 %
Ingager ApS Copenhagen
IngagerABowns 100 % 100 %
Nordisk Interactive A/S Copenhagen
Lindhardt og Ringhof Forlag A/S Copenhagen
Nordisk Film A/S Copenhagen
Nordisk Film Distribution A/S Copenhagen
Nordisk Film Shortcut A/S Copenhagen
Nordisk Film Production A/S Copenhagen
Nordisk Games A/S Copenhagen
Nordisk Film Biografer A/S Copenhagen
Nicehair ApS Esbjerg
AndLight ApS Copenhagen
Lumenli ApS Copenhagen -
(MergedwithAndLightApS)
Ordblindetræning ApS Esbjerg 51 % 51 %
Palads Biografen A/S Copenhagen
Praxis Forlag A/S Copenhagen 75 % 75 %
GoGift.com A/S Copenhagen
Kino.dk A/S Copenhagen 74 % 74 %
Nordisk Film Bridge Finance A/S Copenhagen
Notes to the Consolidated Financial Statements (EURk)
68
33 Group entities (continued)
SUBSIDIARIES
Registered Ownership share
Country Entity office 2023 2022
Denmark Dansk Reklame Film A/S Copenhagen
Egmont Administration A/S Copenhagen
Egmont Svensk Finansiering A/S Copenhagen
Egmont Finansiering A/S Copenhagen
Egmont Investering A/S Copenhagen
Egmont Investering 2 A/S Copenhagen
Ejendomsselskabet Vognmagergade 11 ApS * Copenhagen
Ejendomsselskabet Gothersgade 55 ApS * Copenhagen
MBG Sleeping Egmont A/S ** Copenhagen
VPH Sleeping Egmont ApS ** Copenhagen
4 + 1 ApS Hvidovre 20 % 20 %
Netherlands s360 Digital NL B.V. Amsterdam
s360A/Sowns 85 % 85 %
Norway The Brand AS Oslo 50 % 50 %
Core Content AS Oslo 50 % 50 %
Drammen Kino AS Drammen 66.7 % 66.7 %
Egmont Holding AS Oslo
Egmont Kids Media Nordic AS Oslo
Story House Egmont AS Oslo
Fagmedia AS Oslo
Fjellsport Group AS Sandefjord -
(MergedwithFjellsportAS)
OutnordicInvestABowns - 100 %
Fjellsport AS Sandefjord 97 %
Garnius AS Haugesund 51 % 51 %
Markedspartner AS Grålum
StoryCoASA/Sowns 76.29 % 77.2 %
Nordisk Film AS Oslo
Nordisk Film Distribusjon AS Oslo
Nordisk Film ShortCut AS Oslo 66 % 66 %
Nordisk Film Production AS Oslo
Nordisk Interactive AS Oslo
Nordiske Fagmedier AS Oslo 75 % 75 %
S360 Norge AS Moss
s360A/Sowns 66.23 % 63.72 %
Indent AS Moss
S360NorgeASowns 90 % 100 %
Skitt Fiske AS Sandefjord - 80 %
(MergedwithFjellsportAS)
StoryCo AS Oslo 65.22 % 65.22 %
Filmweb AS Oslo 64.3 % 64.3 %
Nordisk Film Kino AS Oslo
Media Direct Norge AS Oslo
TV 2 Gruppen AS Bergen
Notes to the Consolidated Financial Statements (EURk)
69
33 Group entities (continued)
SUBSIDIARIES
Registered Ownership share
Country Entity office 2023 2022
Norway TV 2 AS Bergen
TV 2 Skole AS Bergen
Nydalen Studios AS Oslo
Broom.no AS Oslo
Broommarked AS Oslo
RiksTV AS Oslo
Electric Friends AS Oslo 99.36 % 99.36 %
Eventyrkanalen AS Bergen
Vimond Media Solutions AS Bergen
Wolftech Broadcast Solutions AS Bergen 91 % 91 %
TV 2 Invest AS Fredrikstad
Screen Story AS Stavanger 90.2 % 90.2 %
Screen Story Film og TV AS Stavanger
ScreenStoryASowns 100 % 100 %
Aventia Media AS Nøtterøy 68 % 68 %
Cappelen Damm AS Oslo
Tanum AS Oslo
Sentraldistribusjon AS Oslo
Bazar Forlag AS Oslo
Ex Libris Forlag AS Oslo
Flamme Forlag AS Oslo
N.W. Damm & Søn AS Oslo
Sweden Egmont Holding AB Malmö
L&R Education Sverige AB Stockholm -
(Liquidated)
Egmont Story House AB Malmö
Belong Agency Sweden AB Stockholm
KanmalmoABowns 100 % 100 %
Ingager AB Stockholm 60.28 % 60.28 %
Bagaren och Kocken AB Gothenburg
Kanstockholm AB Stockholm
KanmalmoABowns 51 % 51 %
DS Productions AB Stockholm
DriveStudiosA/Sowns 100 % 100 %
Outnordic Invest AB Växjö
Outnorth AB Växjö
Nordisk Film Sverige AB Stockholm
Nordisk Film Distribution AB Stockholm
Nordisk Film Interactive AB Stockholm
Nordisk Film Production Sverige AB Stockholm
Royal Design Group Holding AB Kalmar
Royal Design Group AB Kalmar
Fatalist Partners AB Stockholm
Fatalist Holdings AB Stockholm
Notes to the Consolidated Financial Statements (EURk)
70
33 Group entities (continued)
SUBSIDIARIES
Registered Ownership share
Country Entity office 2023 2022
Sweden Fatalist Tecnologies AB Stockholm
Fatalist Development AB Stockholm
Fatalist Production 2 AB Stockholm
Fatalist Production 3 AB Stockholm
Fatalist Production 4 AB Stockholm
Fatalist Production 5 AB Stockholm
Systemic Reaction AB Stockholm
Expansive Worlds AB Stockholm
Nordisk Film Biografer Sverige AB Stockholm
Kanmalmo AB Malmö 59.56 % 59.56 %
Klintberg Niléhn Media AB Stockholm 60 % 60 %
S360 AB Stockholm
s360A/Sowns 75 % 75 %
Winston Delta Charlie AB Stockholm
KanstockholmABowns 100 % 100 %
Bamse Förlaget AB Helsingborg -
Finland Egmont Holding Oy/Egmont Holding Ab Helsinki
Oy Nordisk Film Ab Helsinki
Oy Nordisk Interactive Ab Helsinki
Nordic XR Startups Oy Helsinki
OyNordiskFilmAbowns 60 % 60 %
search360 OY Helsinki
s360A/Sowns 75 % 75 %
Germany dotbooks GmbH Munich
Egmont Holding GmbH Berlin
Egmont Ehapa Media GmbH Berlin
Egmont Verlagsgesellschaften mbH Berlin
Mitte-Editionen GmbH Berlin
Egmont Ehapa Rights Management GmbH Berlin
Egmont Ehapa Comic Collection GmbH Berlin
Ingager GmbH Berlin
IngagerABowns 100 % 100 %
GoGift GmbH Frankfurt am Main
United Kingdom Avalanche Studios Group Ltd. London
Egmont Holding Ltd. London
Story House Egmont Ltd London
Egmont Publishing Ltd. London
Reload Digital Ltd. London
s360A/Sowns 100 % -
S360 Digital UK Ltd. London
s360A/Sowns 100 % 100 %
Supermassive Games Ltd. Hampshire
Starshape Games Ltd. Hampshire
Notes to the Consolidated Financial Statements (EURk)
71
33 Group entities (continued)
SUBSIDIARIES
Registered Ownership share
Country Entity office 2023 2022
United Kingdom Supermassive Games 1 Ltd. Hampshire
Supermassive Games 2 Ltd. Hampshire
Supermassive Games 3 Ltd. Hampshire
Poland Story House Egmont sp. z o.o. Warsaw
Estonia Egmont Estonia AS Tallinn
Latvia Egmont Latvija SIA Riga
Lithuania UAB Egmont Lietuva Vilnius
Bulgaria Egmont Bulgaria EAD Soa
Croatia Egmont d.o.o. Zagreb
USA Vimond Media Solutions Inc New York
Avalanche Studios New York Inc. New York
Egmont U.S. Inc. Delaware
Ideals Publishing Corporation Delaware
China Egmont Sourcing Hong Kong Ltd. Hong Kong
Australia Vimond Media Solutions Apac Pty Ltd Sydney
Canada Avalanche Studios Montréal Inc. Montréal
JOINT VENTURES
Registered Ownership share
Country Entity office 2023 2022
Denmark Med24.dk ApS Løkken 49 % 49 %
RK af 2018 P/S Copenhagen 50 % 50 %
Komplementarselskabet RK af 2018 ApS Copenhagen 50 % 50 %
I/S Ugebladsdistribution ** Albertslund 50 % 50 %
Norway Allvit AS Oslo
CappelenDammASowns 50 % 50 %
Storytel AS Oslo
CappelenDammASowns 50 % 50 %
Maipo Film AS Oslo 50.1 % 50.1 %
Destinasjon Glede AS Oslo
CoreContentASowns - 50 %
Finland Solar Films Inc Oy Helsinki 50.1 % 50.1 %
Story House Egmont Oy Ab Helsinki 50 % 50 %
China Children’s Fun Publishing Company Ltd. Beijing 49 % 49 %
Notes to the Consolidated Financial Statements (EURk)
72
Notes to the Consolidated Financial Statements (EURk)
33 Group entities (continued)
ASSOCIATES
Registered Ownership share
Country Entity office 2023 2022
Denmark Feb-Company 2022 ApS (Under konkurs) Copenhagen - 35.63 %
(Dissolved)
Zentropa Folket ApS *** Hvidovre
NordiskFilmA/Sowns 50 % 50 %
4+1ApSowns 10 % 10 %
Ackermann Kommunikation ApS Copenhagen
s360A/Sowns 32 % -
Labrador CMS Danmark ApS Copenhagen
LabradorCMSASowns 100 % -
Finland Nitro Games Oyj Kotka 26.09 % 50.37 %
Germany DRIVE beta GmbH Berlin
DriveStudiosApSowns 49 % 49 %
Norway Bladcentralen AS Hagan
CappelenDammASowns 20 % 20 %
StoryHouseEgmontASowns 20 % 20 %
Bokbasen AS Oslo
CappelenDammASowns 15 % 15 %
SentraldistribusjonASowns 10 % 10 %
Fantelm AS Oslo 28.5 % 28.5 %
Jollyroom AS Sandefjord
JollyroomGroupABowns 100 % 100 %
KinoSør AS Kristiansand 49 % 49 %
My Game AS Oslo 27.53 % 28.7 %
Norges Televisjon AS Oslo 50 % 50 %
The Oslo Company AS Oslo 20 % 20 %
Labrador CMS AS Oslo 36.11 % 45.05 %
Spain Mercury Steam Entertainment S.L. Madrid 40 % 40 %
Sweden Star Stable Entertainment AB *** Stockholm 56.91 % 56.91 %
Stella Nova Film AB Stockholm 25 % 25 %
Jollyroom Group AB Mölndal 48.98 % 48.98 %
Jollyroom AB Mölndal
JollyroomGroupABowns 100 % 100 %
Motorrad Nordic AB Solna 44 % 44 %
Okto AB Stockholm
EgmontStoryHouseABowns 40 % 40 %
United Kingdom Wendy Promotion Ltd. London 50 % 50 %
73
Statement by the Board of Directors and Management Board
BOARD OF DIRECTORS:
MANAGEMENT BOARD:
74
Independent Auditor’s Report
75
Independent Auditor’s Report
76
Independent Auditor’s Report
CVRNo33 77 12 31
77
Income Statement
of Egmont Fonden
(EURk)
Income Statement of Egmont Fonden
Note 2023 2022
Royalty income, etc. 1,002 1,091
2 Personnel expenses (142) (164)
Other external expenses (396) (412)
Operating profit 464 515
Dividends from investments in subsidiaries 19,439 26,162
7 Financial income 5,774 1,679
7 Financial expenses (43) (119)
Profit before tax 25,634 28,237
3 Tax on prot for the year (100) (67)
Net profit for the year 25,534 28,170
Distribution of net prot:
Transfer to charitable fund 10,000 0
Transfer to liquid reserve fund 15,534 28,170
Total 25,534 28,170
78
Statement of Financial Position of Egmont Fonden
Statement of Financial Position of
Egmont Fonden at 31 December
(EURk)
Note Assets 2023 2022
4 Investments in subsidiaries 181,252 181,652
5 Loans to group enterprises 87,214 0
Financial assets 268,466 181,652
Total non-current assets 268,466 181,652
5 Loans to group enterprises 0 87,407
Receivables from group enterprises 52,263 39,906
Other receivables 1,655 2,169
Receivables 53,918 129,482
Securities 629 631
Cash and cash equivalents 10 14
Total current assets 54,557 130,127
TOTAL ASSETS 323,023 311,779
Equity and liabilities 2023 2022
Capital fund 29,519 29,583
Reserve fund 214,926 215,401
Charitable fund 22,847 12,875
Liquid reserve fund 39,107 38,514
Total equity 306,399 296,373
Trade payables 683 1,369
Payables to group enterprises 31 145
Donations committed but not yet paid 12,689 10,246
Other payables 3,221 3,646
Current liabilities 16,624 15,406
Total liabilities 16,624 15,406
TOTAL EQUITY AND LIABILITIES 323,023 311,779
1 Accounting policies
6 Basis of distribution
7 Related parties
79
Statement of Changes in Equity
of Egmont Fonden
(EURk)
Liquid reserve fund
Capital
fund
Reserve
fund
Charitable
fund
Use
according to
articles 6-10
Use
according
to article 11
Total
equity
Statement of Changes in Equity of Egmont Fonden
Equity at 1 January 2023 29,583 215,401 12,875 34,878 3,636 296,373
Foreign exchange adjustments (64) (475) (28) (80) (8) (655)
Transfer from distribution of net prot 0 0 10,000 14,009 1,525 25,534
Used for charitable purposes 0 0 0 (12,423) (938) (13,361)
Costs 0 0 0 (1,418) (74) (1,492)
Equity at 31 December 2023 29,519 214,926 22,847 34,966 4,141 306,399
Equity at 1 January 2022 29,583 215,400 12,875 21,724 1,832 281,414
Foreign exchange adjustments 0 1 0 8 1 10
Transfer from distribution of net prot 0 0 0 25,353 2,817 28,170
Used for charitable purposes 0 0 0 (10,744) (940) (11,684)
Costs 0 0 0 (1,463) (74) (1,537)
Equity at 31 December 2022 29,583 215,401 12,875 34,878 3,636 296,373
80
Notes of Egmont Fonden (EURk)
1 Accounting policies
The nancial statements of Egmont Fonden have been prepared in accordance with the provisions of the Danish Financial
Statements Act applying to reporting class C enterprises (large) and the nancial reporting requirements of the Foundation’s
Charter.
The accounting policies applied in the presentation of the nancial statement are consistent with those of the previous year.
No cash ow statement has been included for Egmont Fonden, as reference is made to the consolidated cash ow statement.
Fees to auditors is disclosed in note 25 in the consolidated nancial statements.
The accounting policies of Egmont Fonden deviate from the Group’s accounting policies in the following areas:
Investments in subsidiaries
Investments in subsidiaries are measured at cost. Where the recoverable amount is lower than cost, write-downs are made to
this lower value.
Dividends
Dividends from investments in subsidiaries are recognised in the prot and loss statement in the nancial year in which the
dividend is declared, typically at the time when the general meeting approves the distribution of dividend by the relevant
company.
Dividends exceeding the accumulated income from the subsidiaries in the ownership period are deducted in the cost price.
Equity
Prot is distributed according to the Foundation’s Charter. The Charitable Activities’ donations and associated expenses are
charged directly to the liquid reserve fund under equity.
The foundation’s equity consists of a capital fund and a reserve fund intended for the Commercial Activities. The capital fund
is an undistributable reserve, while the reserve fund can only be distributed if it exceeds the consolidation requirements in the
Foundation’s Charter. The charitable fund serves to ensure the existence of funds required for Egmont Fonden’s Charitable
Activities. The liquid reserve fund is the amount which is to be used for charitable purposes under the Foundation’s Charter
within the scope of the Charitable Activities. The total of the charitable fund and the liquid reserve fund represent the
Foundation’s basis of distribution.
In the calculation of tax, due allowance is made for the deductibility of charitable donations made according to the Charter
of Egmont Fonden. These are charged to equity. Tax provisions for future donations are also taken into account. Provision
for deferred tax is made in case Egmont Fonden does not expect to use liquid funds for charitable purposes equal to the tax
provisions.
81
2 Personnel expenses 2023 2022
Wages and salaries (142) (164)
Compensation to the Board of Directors amounted to 250 in 2023 (2022: 238), of which 129 (2022: 125) was included in the
costs of the Charitable Activities.
The Management Board of the foundation is also employed by Egmont International Holding A/S, which pays all salaries to the
Management Board. This administration is covered by an administrative fee to Egmont International Holding A/S.
References is also made to note 4 to the consolidated nancial statements.
3 Tax on profit for the year 2023 2022
Royalty tax paid (100) (67)
Tax on prot for the year consists of royalty tax.
4 Investments in subsidiaries 2023 2022
Cost at 1 January 181,652 181,654
Foreign exchange adjustments (400) (2)
Cost at 31 December 181,252 181,652
For a list of subsidiaries please see note 33 in the consolidated nancial statement.
5 Loans to group enterprises 2023 2022
Cost at 1 January 87,407 87,408
Foreign exchange adjustments (193) (1)
Cost at 31 December 87,214 87,407
6 Basis of distribution 2023 2022
Balance at 1 January 51,389 36,431
Exchange change adjustments (116) 9
Used for charitable purposes (13,361) (11,684)
Costs (1,492) (1,537)
Transfer from distribution of net prot 25,534 28,170
Balance at 31 December 61,954 51,389
Notes of Egmont Fonden (EURk)
82
Notes of Egmont Fonden (EURk)
7 Related parties
Related parties are dened as Egmont Fonden’s Board of Directors and Management Board, close family members of those
persons, as well as Egmont Fonden’s subsidiaries, associates and joint ventures.
Related parties also comprise companies controlled or jointly controlled by the aforementioned persons.
There is a duality of membership between the Board of Directors and Management Board of Egmont Fonden and Egmont
International Holding A/S.
Egmont Fonden receives royalty income and dividends from subsidiaries. Egmont Fonden pays for rent and administrative
services delivered by subsidiaries. Egmont Fonden receives interest on loans to subsidiaries. Related party transactions are
made on arm’s length terms.
The compensation paid to the Board of Directors and Management Board is disclosed in note 4 in the consolidated nancial
statement.
Trading with subsidiaries 2023 2022
Service fee 129 138
Rent (78) (74)
Acquisition of services (67) (87)
Interest, subsidiaries (net income) 4,529 1,568
Capital transactions and balances with subsidiaries at 31 December 2023 2022
Dividends from group enterprises 19,439 26,162
Loans to group enterprises 87,214 87,407
Receivables from group enterprises 52,263 39,906
Payables to group enterprises (31) (145)