cBrain A/S

cBrain A/S · Kalkbrænderiløbskaj 2 · DK-2100 Copenhagen, Denmark · CVR no. 24233359

January 1 – June 30, 2024

Interim

Report

2024

2 | Interim Report | 2024

Democratizing IT Modernization

While governments around the world

increase their investment in digital

transformation and the IT industry expands to meet the demand, the

shortage of skilled IT professionals is often cited as a key factor in delays

or failures in IT modernization projects.

The emergence of commercial off-the-shelf software (COTS) for

government addresses the labor gap. Standard software and tools like F2

and the F2 Service Builder enable users without a technical background to

manage much of the IT work, reducing the demand for skilled IT

resources.

This makes COTS for government an industry game-changing

technology. By democratizing IT modernization and reducing the demand

for skilled IT resources, COTS for government simultaneously lowers

costs and accelerates successful digital transformation, becoming a key

enabler for government transformation.

3 | Interim Report | 2024

Content

Democratizing IT Modernization .............................................................................................................. 2

On track with Growth Plan .......................................................................................................................... 4

Financial Highlights ........................................................................................................................................ 9

Financial Remarks ....................... ............................................ ............................................ ........................... 11

Risk Management.......................................................................................................................................... 13

Our Business .......................... ................................. .................................. ................................. ...................... 14

Market and Value Proposition ................................................................................................................. 15

The F2 Software ............................................................................................................................................ 18

Customers and Growth Plan ................................................................................................................... 20

Shareholders................................................................................................................................................... 24

Statement ....................................................................................................................................................... 25

Financials...........................................................................................................................................................27

Notes ................................................................................................................................................................. 32

Financial Highlights

Our Business

Financials

Financial Highlights

Our Business

Financials

4 | Interim Report | 2024

On track with Growth Plan

The F2 platform was built in close collaboration with a group of the Danish ministries.

cBrain continues to develop new F2 versions in close collaboration with strategic

government customers and these customers count for a majority of the revenue.

Attracting and building long-term business relations with strategic customers is

therefore core to the growth.

cBrain has a strong Danish customer base, which counts more than 75 Danish

government organizations including most ministries, and Denmark ranks number one

in the global United Nations e-government survey. With this reference position cBrain

seeks to expand internationally, using F2 climate software as a door opener and the

F2-for-Partners strategy as a key to scaling. During first half of 2024 cBrain has added

several new customers to the customer base, but most of the revenue growth comes

from existing customers.

The international growth plan is based on organic growth. When possible cBrain seeks

to build the international business in collaboration with local partners and thereby

limiting the size of the international cBrain organization. A cornerstone of the F2-for-

Partners strategy is therefore allowing partners and customers access to the F2

configuration technology and training them to set up the F2 standard software and

configure processes using the F2 Service Builder.

cBrain delivers COTS (commercial off-the-shelf software) for government

Software for government digitization represents one of the largest global markets.

Today the market is dominated by large suppliers who deliver custom-built solutions

based on integration of best-of-breed software modules and components. But many

projects fail, reporting huge delays and budget overruns due to the complexity of

delivering best-of-breed based solutions.

cBrain challenges the IT government industry by delivering standard software, often

referred to as commercial off-the-shelf software (COTS). As an alternative to best-

of-breed solutions, COTS offers major benefits for customers with respect to quality,

delivery time, and the costs of implementation and maintenance.

For historical reasons, government organizations around the world have been

reluctant to adopt standard software as part of their digitization strategy. This

reluctance is often due to internal IT organizations and procurement routines that are

set up to utilize custom-built best-of-breed solutions. However, several governments

Revenue grew by +6% to DKK 139m in the first half of 2024, up from DKK 132m in the

first half of 2023. The low half-year growth was expected due to an unusual revenue

split between the first and second half of 2023, where first-half revenue grew +39%

year over year and accounted for 55% of the total fiscal year revenue.

Danish revenue grew by +21% to DKK 87m in the first half of 2024, up from DKK 72m

in the first half of 2023, showing a stable and solid development in the Danish market.

International sales declined by -13% to DKK 52m in the first half of 2024, down from

DKK 60m in the first half of 2023. The lower international sales are due to the unusual

revenue split between the first and second half of 2023, where a large portion of total

software licenses related to international sale was recognized in the first half of 2023.

First half 2024 results show earnings before tax (EBT) of DKK 43m, down from DKK

47m in the first half of 2023. cBrain continues to deliver solid earnings with earnings

before tax margin (EBT margin) of 31%. Earnings are slightly higher than expected as

some of the international investments that were planned for in the first half of 2024

have been postponed to the second half of 2024.

cBrain is satisfied with the financial development, which is in line with expectations

and slightly ahead of the 2023-2025 growth plan.

cBrain maintains the guidance for the fiscal year 2024, with revenue growth of 20-

25% and the guided earnings before tax margin (EBT margin) of 24-30%. This is based

on continued growth in Denmark, increased international sales, and increased

investments into the growth plan in the second half of 2024.

Growth is driven by subscriptions, strategic customers and partnerships

Software subscriptions count for approximately 50% of total revenue, based on

customers renting the F2 software or having F2 software maintenance agreements.

When existing customers extend their use of F2 by adding more users or modules, or

new customers implement F2, this increases the subscription base. cBrain has long-

term contracts with most customers, and the F2 software subscription base

constitutes a solid and growing foundation for the business.

5 | Interim Report | 2024

organizations, including a number of leading Danish government agencies, have

begun to adopt COTS and embrace the benefits of standard software.

cBrain anticipates that the shift towards COTS will eliminate much IT consulting work

and lead to a major change in the government IT industry worldwide.

cBrain has invested more than 400.000 hours in developing F2, a new generation of

government software. F2 is a complete and fully integrated digital platform, designed

and built from the start specifically for government use. Its built-in no-code/low-code

configuration tools make it easy for individuals without a technical background to

adapt F2 to meet specific customer requirements and processes.

The quality and benefits of F2 have been proven. cBrain has successfully delivered F2

to government organizations across five continents, including solutions in various

government domains such as business affairs, climate and environment, education,

energy, family, immigration, labor and market regulation, science, social affairs, and

tax.

With the F2 digital platform and a continuously strengthening reference position both

in Denmark and internationally, cBrain aims to become a leading global supplier of

COTS for government.

Increased focus on public tenders in Denmark

For the second half of 2024, cBrain expects continued growth in Denmark. This

includes expanding the list of strategic customers who extend their use of F2 by

adding more users, software modules, and processes, as well as acquiring new

customers.

Danish revenue is primarily based on procurement through the Danish government

procurement framework agreements (SKI). In addition, cBrain is strengthening its

bidding activities for larger open public tenders in Denmark. One example is the public

tender for a new Danish hunting license register, which cBrain has won and is currently

working to deliver.

While it often takes a long time to win large open public tenders, securing such

contracts can significantly boost Danish revenues. Based on early-stage success,

cBrain has therefore increased investments in bid management.

Per Tejs Knudsen, CEO

and founder of cBrain

Per Tejs Knudsen, CEO and founder of cBrain

6 | Interim Report | 2024

Solid position in Germany

cBrain has successfully established itself in Germany, and in the first half of 2024,

German revenue accounted for approximately one-third of the company's total

revenue.

Due to this success, cBrain was awarded the title “Danish Company of the Year 2023”

by the German-Danish Chamber of Commerce. cBrain is now collaborating with the

German-Danish Chamber of Commerce to further develop the German market. By

reusing Danish experiences and solutions, cBrain can help accelerate the digital

transformation of the German government.

It takes a long time to attract strategic customers, but cBrain now has a foothold in

Germany and has proven that F2 can be reused for large German government

organizations. This provides cBrain with a solid reference position for taking the next

steps in Germany to further grow revenues.

Pursuing the next international strategic customers

Internationally, cBrain is working on several large projects, building a pipeline for

future strategic international clients. cBrain expects that several of these projects will

further mature during the autumn and boost international sales.

As part of this effort, cBrain is establishing a local presence in multiple countries,

combining local cBrain staff and local partners, while developing the F2-for-Partners

strategy.

Scaling international sales based on an organic growth model takes time, so cBrain is

operating and initiating sales activities across multiple geographies in parallel. During

the first half of 2024, cBrain has taken important steps in several countries. This

includes:

 California: In April, cBrain announced an agreement with local authorities in

California to deliver a digital solution supporting the GRASS-C (Growing

Responsible and Socially Sustainable Cannabis) certification program. This

expands the cBrain catalog of climate software solutions previously delivered

in California and represents the first solution delivered in the US based on the

F2 Service Builder.

 India: In September 2023, cBrain announced a joint venture in India, cBrain

Kodumburar. In February 2024, cBrain announced a Memorandum of

Understanding (MoU) with the Government of Puducherry to promote and

accelerate digital solutions in the Union Territory of Puducherry for the

sustainable development of the territory. Additionally, a MoU was signed

with the state of Tamil Nadu, aiming to establish a digital administration for

the state.

 Ghana: In March, cBrain announced that its partner, Omni Strategies, won a

public tender in Ghana to deliver an F2-based solution for the National

Communication Authority (NCA) in Accra. Using the F2 Service Builder, the

F2 platform will be configured to support facilities management within the

NCA, digitizing processes related to building and fleet management.

 Kenya: During the spring, cBrain successfully launched a solution for the

Kenya Dairy Board, a state corporation under the Ministry of Agriculture &

Livestock Development. The solution will help support quality inspections

related to milk production.

 Nigeria: In June, cBrain signed an agreement with the Ministry of Innovation,

Science and Technology in Nigeria to deliver a Proof of Concept (PoC)

project. The purpose is to deliver an F2-based solution that demonstrates

secure and transparent government procurement processes, from planning

and approval to filing and auditing, across multiple government agencies.

 Romania: cBrain's partner in Romania has delivered the first F2 solutions for

government customers, using the F2 Service Builder to support customer-

specific process requirements.

 United Arab Emirates (UAE): cBrain has just signed a contract to enter a new

partnership, supporting an agency in the UAE with their AI-driven digital

transformation. This supports the continued success of implementing the

growth plan with a special focus on climate software, while building

partnerships.

 Washington DC: In close collaboration with the Danish Environmental

Protection Agency, cBrain has developed a unique F2 solution that end-to-

end supports all functions to accelerate environmental permitting, from self-

service and process control to Artificial Intelligence (AI). Environmental

permitting is essential to the green transition, and cBrain is working with

several federal agencies in Washington DC to validate if and how the F2

permitting solution can be reused in the US.

7 | Interim Report | 2024

The first version of F2 AI Assistant was announced in April

During the spring, cBrain has marketed F2 version 11. F2 version 11 offers a long list of

new features and extension modules, and many customers have already upgraded

successfully.

In April, cBrain introduced the first version of the F2 AI Assistant. The F2 AI Assistant

is a new extension module that provides AI functionality seamlessly and fully

integrated with the F2 standard software.

The F2 AI Assistant was developed in collaboration with the Danish Ministry of

Digitization and the Danish Environmental Protection Agency, aiming to create AI

functionality specifically designed for government users and government security

requirements.

The F2 AI Assistant operates on-premises, which is essential for governments to

protect data and comply with GDPR requirements. Fully integrated with the F2

standard software, the F2 AI Assistant is context-sensitive and built to support public

administration, offering functionality that generic AI services cannot provide. Features

in the first version of the F2 AI Assistant include writing record summaries, speeches,

notes, and news.

The introduction of the F2 AI Assistant marks the beginning of a new product line of

AI extension modules for F2. In parallel with developing the F2 AI Assistant, cBrain has

delivered a number of specialized AI projects, which are being used to inspire the

design of future AI extension modules.

F2 Service Builder is a key driver for scaling

The F2-for-Partners strategy is a core element of our long-term growth plan. By

establishing an ecosystem of partners and customers who manage the consulting

work related to implementing and servicing F2 solutions, cBrain can scale its business

without revenue growth being directly constrained by the burden of organizational

expansion.

As part of the F2-for-Partners strategy, cBrain is preparing the F2 configuration

toolset for external users, with the F2 Service Builder serving as a cornerstone for this

transition.

The F2 Service Builder is an innovative and highly effective no-code/low-code

configuration tool that stands out from existing tools on the market due to its design

and architecture. It is a key technology enabler for building the F2 partner ecosystem

and is therefore a central driver of both the F2-for-Partners strategy and long-term

scaling.

The fully integrated F2 Service Builder represents

a new type of no-code/low-code tool

No-code/low-code tools are becoming popular as they allow users to create and

modify workflows and processes with minimal or no coding required. This enables

users with limited technical expertise to build and customize solutions, thereby

simplifying application development and process automation.

Most widely used no-code/low-code tools are either designed for general-purpose

use or are specialized for IT service and operations management. They are typically

developed as stand-alone software tools, integrated into a best-of-breed

environment through pre-built or open connectors, and many offer process design,

form building, and other functionalities based on a visual user interface.

F2 Service Builder differentiates itself by being fully integrated with F2 and designed

specifically for government use. Additionally, F2 Service Builder offers a user-friendly

interface that enables users with limited technical expertise to build and customize

solutions simply by filling in a spreadsheet.

The design and architecture of F2 Service Builder provide significant benefits for

government customers by eliminating integration work, optimizing system design,

and offering unique government functionality.

While integration into best-of-breed environments often complicates no-code/low-

code projects, turning them into complex IT deliveries, F2 Service Builder is delivered

out-of-the-box, fully integrated, and ready-to-run. This approach saves significant

time and eliminates the need for IT integration specialists. Furthermore, F2 Service

Builder offers deep integration into specific F2 functions, providing integrated user

functionality that is often nearly impossible to achieve within a best-of-breed

environment.

In addition to these integration benefits, F2 Service Builder simplifies and optimizes

the building of workflows through its integrated design method and user interface.

Guided by F2 Service Builder, users can create complete, ready-to-run workflows,

automated end-to-end from self-service to case management and filing, simply by

filling out pre-defined fields in a spreadsheet.

The spreadsheet interface reduces the need for user training, allows for efficient reuse

of workflows, and the design guidance is based on a best practices model for

government work, thereby supporting well-designed workflows.

8 | Interim Report | 2024

Democratizing IT Modernization

While governments around the world increase their investments in digital

transformation and the IT industry expands to meet the demand, the shortage of

skilled IT professionals is often cited as a key factor in delays or failures in IT

modernization projects.

The emergence of Commercial Off-the-Shelf Software (COTS) for government

addresses the labor gap. Standard software and tools like F2 and the F2 Service

Builder enable users without a technical background to manage much of the IT work,

reducing the demand for skilled IT resources.

This makes COTS for government an industry game-changing technology. By

democratizing IT modernization and reducing the demand for skilled IT resources,

COTS for government simultaneously lowers costs and accelerates successful digital

transformation, becoming a key enabler for government transformation.

Enabling a new type of partners

Democratizing IT modernization is a core element and a significant value

differentiator for the F2-for-Partners strategy. By enabling users with limited technical

backgrounds to participate in digital transformation, F2 not only empowers customers

but also a new type of partners who focus on transformation services.

At the heart of this democratization is the F2 Service Builder. Fully integrated with F2

and designed for government workflows, the F2 Service Builder eliminates the heavy

integration work required when using general-purpose no-code/low-code tools and

simplifies the process of configuring solutions tailored to specific governmental

needs.

By heavily reducing reliance on skilled IT resources and offering best practice

experience as an integral part of the configuration tools, the F2 Service Builder

enables a new type of partner who offers specialized government transformation

services, from advice to delivery, based on government domain expertise and without

the burden of IT development.

Consequently, the F2-for-Partners strategy, fueled by the F2 Service Builder, not only

enhances the agility of government agencies and speeds up transformation but also

allows cBrain to scale its operations without proportionally increasing its internal

resources.

cBrain announces F2 Service Builder 2

Being a key technology driver and an accelerator for the F2-for-Partners strategy,

cBrain continues to invest in the F2 Service Builder.

The first version of F2 Service Builder has been well received and has been

successfully used for solution delivery in several countries during the spring. Based on

learnings from these projects, cBrain is now developing a new and extended version,

called F2 Service Builder 2, which is planned for release in the autumn.

Per Tejs Knudsen

CEO

9 | Interim Report | 2024

Financial Highlights

T.DKK

H1 2024

H1 2023

FY 2023

INCOME STATEMENT

Revenue 139.178

131.780

239.182

Depreciation and amortization -12.026

-10.353

-21.165

Operating profit (EBIT) 43.958

48.461

85.405

Financial items, net -1.072

-1.733

-4.051

Earnings before tax (EBT) 42.886

46.728

81.354

Profit for the period 31.802

36.196

63.178

FINANCIAL POSITION

Cash and cash equivalents 1.730

3.632

9.234

Trade receivables 74.037

77.064

43.801

Total assets 371.800

364.879

340.857

Total equity 255.504

201.566

229.180

CASH FLOWS

Cash flow from operating activities 11.134

19.635

86.297

Cash flow from investing activities -12.222

-12.230

-27.107

Investments in PPE -681

-648

-703

Cash flow from financing activities -6.416

-5.998

-52.181

T.DKK

H1 2024

H1 2023

FY 2023

FINANCIAL RATIOS

Revenue growth rate 6%

39%

27%

EBIT-margin 32%

37%

36%

Return of investment (ROI) 12%

13%

24%

EBT-margin 31%

35%

34%

Liquidity ratio 170%

153%

125%

Solvency ratio 69%

55%

67%

Return on equity 14%

21%

32%

STOCK MARKET RATIOS

Number of shares 1.000 pcs. 20.000

20.000

Book Value per Share (BVPS) 12,78

10,08

11,46

Basic EPS 1,59

1,81

3,16

Diluted EPS (DEPS) 1,59

1,81

3,16

ENVIRONMENTAL AND SOCIAL DATA

Average number of employees (FTEs) 183

164

167

Gender diversity, all employees 40%

41%

43%

Scope 1 & 2 CO2e emissions (tons) 13

2 | Interim Report | 2024

REVENUE (DKK)

139m

REVENUE GROWTH

EBT MARGIN

31%

Share of revenue

SOFTWARE SALES

80%

Share of revenue

INTERNATIONAL SALES

37%

REVENUE (DKK)

139m

REVENUE GROWTH

EBT MARGIN

31%

Share of revenue

SOFTWARE SALES

80%

Share of revenue

INTERNATIONAL SALES

37%

11 | Interim Report | 2024

Financial Remarks

Revenue

Total revenue increased by DKK 7m (+6%) to DKK 139m during the first six months of

2024, driven by increased software sales, from DKK 132m total revenue in the same

period in 2023. The low half-year growth, compared to the first six month of 2023,

was expected due to an unusual revenue split between the first and second half of

2023, where first-half revenue grew +39% year over year and accounted for 55% of

the total fiscal year revenue.

Software sales increased DKK 5m (+5%) from DKK 106m during the first six months in

2023 to DKK 111m in 2024, constituting 80% of the total revenue.

Sales of services increased by DKK 2m (+7%) from DKK 26m during the first six

months in 2023 to DKK 28m in 2024.

Sales in Denmark increased by 21% to DKK 87m in the first six months of 2023 from

DKK 72m in the same period in 2023.

International sales decreased by DKK 8m (-13%) from DKK 60m during the first six

months in 2023 to DKK 52m in 2024, presently representing 37% of the total revenue.

The decrease in international sales is due to the unusual revenue split between the

first and second half of 2023, where a large portion of total software licenses related

to international sale was recognized in the first half of 2023.

For further details on cBrain’s revenue, see note 3 and 4 of the notes to the

Consolidated Financial Statements.

Costs and capitalization

cBrain’s costs are primarily staff costs (salaries), business development, travel and

office expenditure including depreciation.

The increase in expenses from DKK 83m during the first six months of 2023 to DKK

95m in the same period in 2024 is primarily attributed to the growth in employees.

cBrain’s intangible assets comprise of capitalized development costs relating to the

development of F2 standard software. During the first six months in 2024, DKK 12m

was capitalized as software under development.

Earnings Before Tax (EBT)

Earnings before taxes (EBT) decreased by 4m (-8%) to DKK 43m during the first six

months of 2024, compared to DKK 47 in the period in 2023. As of June 30, 2024, the

EBT margin is 31% compared to 35% as of June 30, 2023.

Taxes

Current tax on profits for the first six months of 2024 is DKK 10m, adjustment for

deferred tax is DKK 1m. The effective tax rate for the first six months of 2024 is 25,8%.

Intangible assets

During the first six months of 2024 DKK 12m has been capitalized as Software under

Development which primarily consists of salaries. The capitalized amount is on level

with the same period in 2023.

Property, plants and equipment (PPE)

The total amount for property, plant, and equipment stated in the Consolidated

Financial Statements is DKK 209m of which the headquarters in Copenhagen, Utzon

House, has a carrying amount of DKK 194m. The Utzon House is held by the 100%

owned subsidiary cProperty ApS with cBrain A/S as the tenant.

Liquidity and Capital Resources

cBrain is confident that its cash and cash equivalents, amounting to DKK 2m as of

June 30, 2024, together with trade receivables totaling DKK 74m, and cash generated

by ongoing operations, will adequately cover its cash requirements for the next 12

months and beyond.

Debt and Interest Rate Risk

As of June 30, 2024, cBrain held outstanding 18-years variable-rate mortgage loans

(borrowings), with rate-fixing every 6 months, totaling an outstanding amount of DKK

50m, with repayments of DKK 2m scheduled within the next 12 months.

Management routinely assesses its exposure to interest rate fluctuations. It is not

anticipated that the projected change in interest rates over the next 12 months will

notably impact on the financial statements. cBrain has opted not to fix the interest

rate, as the associated cost is estimated to be higher than the anticipated expenses

attributed to forecasted increased interest rates.

12 | Interim Report | 2024

Shareholders’ Equity

Total equity has increased by DKK 54m compared to the same period last year and

amounts to DKK 256m as of June 30, 2024.

During the year cBrain has not repurchased any ordinary shares. Management is

authorized by the Annual General Meeting to repurchase up to 10% of its share

capital.

Cash flows

Cash flow from operating activities during the first six months of 2024 is DKK 11m.

Cash flow from investing activities is primarily related to investments in software

development projects and amounts to DKK 12m.

Cash flow from financing activities amounts to DKK 6 which consists of dividend paid

of DKK 5m, and repayment of borrowings DKK 1m.

Significant transactions with related parties

Apart from the management’s remuneration, there have been no other transactions

with the management and members of Board of Directors.

Events after balance sheet date

From the balance sheet date until the date of the submission of this interim report, no

events of significance for the interim report have occurred, that are not recognized or

referred to in the interim report.

REVENUE split by

Sales in Denmark and International

REVENUE split by

Software and Sales of Services

20.000

40.000

60.000

80.000

100.000

120.000

140.000

2020 2021 2022 2023 2024

First half year

Sales in Denmark International sales

20.000

40.000

60.000

80.000

100.000

120.000

140.000

2020 2021 2022 2023 2024

First half year

Software sales Sales of services

13 | Interim Report | 2024

Risk Management

Three strategic initiatives primarily drive the strategy and the company growth plan:

 Continued growth through digitizing of mission critical business

processes based on cBrain methods and the standard platform F2 for

government (F2 “classic”).

 Boost positioning and growth through solutions for Climate Governance.

 Build F2 ecosystem by establishing partnerships.

Risks

As none of the risk factors identified in the Annual Report 2023 has significantly

changed, the detailed argumentation for risk factors including cause, risk, mitigation

and probability is not repeated here.

The risk for cyber-attack (2) has been adjusted (probability increased) to reflect the

geopolitical situation. It is still the management view that cBrain is prepared and well

protected. Adoption of NIS2 is planned and is under implementation.

The risk for competitors building standard platforms similar to F2 (5) has been

adjusted (financial impact decreased). It is the management view that the emergence

of new dedicated process platforms for Government will increase the markets

attention and demand for those platforms, and increase attention for F2 as well, as F2

is a first mover and can show significant impact and results.

Probability

Financial impact

Low

High

Low

High

Decline in demand

Cyber Attack

Fail to retain and

attract talent

Fail to build F2 ecosystem

Competitors build standard

platform similar to F2

Legal risks entering new

geographical markets

Probability

Financial impact

Low High

Decline in demand

Cyber Attack

Fail to retain and

attract talent

Fail to build F2 ecosystem

Competitors build standard

platform similar to F2

Legal risks entering new

geographical markets

14 | Interim Report | 2024

Our Business

15 | Interim Report | 2024

Market and Value Proposition

By leveraging standard software, cBrain offers government organizations fast digital transformation at scale

cBrain has developed F2, a highly flexible digital platform which can easily be

configured to support all government work processes, communication and case

management.

With the F2 digital platform, cBrain offers government organizations the opportunity to

digitize based on standard software instead of traditional custom-built solutions. This

eliminates a significant portion of the IT work related to digital transformation and offers

government entities substantial business benefits through cost reductions, faster

delivery, and accelerated digital transformation.

The F2 digital platform is a proven solution, and it is based on a model for digital

bureaucracy and best practices, that have been developed in close collaboration with

Danish government. Currently, more than 75 Danish government entities, including most

Danish ministries, use F2 as their digital platform. Additionally, F2 has been successfully

implemented for government usage across 5 continents, including countries such as

Egypt, France, Germany, Ghana, Guyana, Kenya, Romania, Ukraine, United Arab Emirates,

UK, and USA.

The adoption of standard software represents a disruptive and game-changing approach.

It challenges the traditional IT consulting industries that have relied on extensive projects

and hourly billing practices to establish their business.

By challenging one of the largest industries, cBrain faces a significant business

opportunity. cBrain intends to capitalize on this opportunity and is executing an

ambitious international growth plan. Key elements of the growth plan include investing in

F2 Climate Software, which serves as a door opener and accelerator for international

sales and investing in the F2-for-Partners concept, which allows cBrain to further scale its

business.

The growth plan is based on organic growth. cBrain delivers solid growth and earnings

with a strong positive cash flow, thereby financing its business without the need for

loans.

Transforming government through digitizing represents a huge opportunity

Industry analysts estimate that by digitizing processes, based on best practices and

aligning the organization, governments can enhance services, improve citizens’

quality of life, while generating savings of over $1 trillion annually worldwide*. In

parallel, government digitizing is fundamental to achieving the 17 United Nations

Sustainable Development Goals (SDGs) and is a key tool to combat climate change.

Governments around the world are therefore heavily investing in digitizing, making

government digitizing one of the largest industries globally. However, government

organizations often struggle to translate ambitious digitizing plans into deliverables

and measurable results. This is primarily due to the traditional digitizing approach,

relying on custom-built solutions and software components, leading to large IT

projects and budget overruns.

The adoption of standard software

is a game-changing approach

Based on the F2 digital platform, cBrain

radically transforms this landscape.

By leveraging the F2 standard software

and best practices developed through

close collaboration with Danish

government, cBrain offers government

fast digital transformation at scale

while effectively sidestepping the

pitfalls of large-scale IT projects

and budget overruns.

*McKinsey & Company. Transforming Government Through Digitization.

16 | Interim Report | 2024

The adoption of standard software is a disruptive and game-changing approach.

Digital transformation, based on standard software instead of custom-built solutions,

eliminates a significant portion of IT-related project tasks. The adoption of standard

software brings massive business benefits for government entities due to cost

reductions and faster delivery times. Additionally, it poses a significant challenge to a

substantial part of the government IT industry, which currently relies heavily on large

projects and hourly billing.

At the core of digital transformation projects usually

lie three fundamental elements: process innovation,

organizational implementation, and the delivery of a

new IT system. However, many projects encounter

major impediments related to the delivery of a new IT

system. Projects based on custom-built are usually

delayed and often the IT-related work drains the

majority of project time and resources and deviate

management focus. It leaves insufficient capacity for

crucial process innovation and organizational efforts.

In contrast, leveraging standard software eliminates a

large portion of the IT-related work, and the

transformation process gains momentum,

accompanied by substantial reductions in costs and

risks. As a result, ample time and resources are

liberated, empowering government organizations to

prioritize process innovation and organizational

enhancements, while successfully transforming and

meeting their strategic business goals.

Minimizing the IT work frees resources for process innovation and organizational

development

When undertaking digital transformation projects based on custom-built software,

the major portion of project hours is allocated to IT development. This focus on IT

development often becomes a hindrance to digital transformation, as process

innovation, organizational change, and implementation are given lower priorities and

inadequate resources.

The switch to digital transformation, based on standard software instead of custom-

built software, drastically reduces the complexity and the hours spent on IT

development.

Custom-built solutions can take years to design and deliver, while standard software

can be configured and deployed as a ready-to-use solution within weeks or a

few months.

The adoption of standard software thereby changes the

industry. It not only accelerates the speed of digital

transformation but also enhances system quality while

significantly reducing costs. Moreover, it empowers

organizations to focus on the actual benefits of digitizing,

driven through process innovation and organizational

change.

Configurable standard software enables continued

digital transformation

Custom-built solutions are born legacy. Custom-built

solutions are by nature hardcoded, and they normally

dictate large-scale organizational implementation projects,

thereby leaving minimal room for learning and subsequent

adjustments. In contrast, modern standard software,

represented by F2, is remarkably flexible and can be readily

re-configured, continuously adapting to changing user

requirements, organizational development and process

rethinking.

Leveraging standard software means that government organizations are no longer

burdened with the constraints of legacy systems and large-scale implementation

projects. Instead, standard software facilitates continued optimization and

automation of service delivery as a natural progression and seamlessly extending

beyond the initial project phase.

The adoption of standard software thereby enables government organizations to

redesign their traditional highly risky large-scale approach into a digital transformation

journey at grand scale, based on many small steps, agility, and continuous learning,

which are aligned with continued process innovation and organizational adjustments.

17 | Interim Report | 2024

cBrain solutions around the globe

cBrain serves

customers across 5 continents.

F2 has proven that the model for

digital bureaucracy developed

in close collaboration with the

Danish government can be

applied worldwide.

cBrain HQ

Customers and solutions

18 | Interim Report | 2024

The F2 Software

F2 is built for government, based on Danish government best practices and the model

for digital bureaucracy. cBrain has developed F2 in close collaboration with the Danish

government, and today cBrain has invested more than 400.000 hours into developing

the F2 digital platform.

The development began in 2006, with a focus on studying government processes and

resources that facilitate service delivery. A groundbreaking realization was that

government organizations function in fundamentally similar ways, based on the

fundamental principles of the bureaucracy described by

German philosopher Max Weber. This led to the

development of generic model for government work

known as Digital bureaucracy.

Being able to model government processes is a significant

change. Based on the model for digital bureaucracy, it has

been possible to develop standard software for

government usage, which supports government processes

digitally and replaces custom-built solutions.

One fully integrated digital platform, supporting all

government processes and compliance requirements

Built for government, F2 is a full stack and highly secure

digital platform. Accessible from PCs, tablets, and mobile

devices, F2 provides formal and informal communication

capabilities, meets all compliance and auditing

requirements related to case production and content

creation, and allows control of organizational roles and

responsibilities.

Additionally, F2 supports generic workflows like approvals,

hearings, and Freedom of Information (FOI) requests, as well as customer-specific

workflows that facilitate citizen-facing processes from self-service to case

processing and filing, along with long-term archiving.

F2 is a highly flexible digital platform which can easily be configured to support all

government work processes, communication and case management.

Based on the built-in Administrator menu, privileged users can define and set up

support for customer specific organizations, routines and workflows. This includes a

highly efficient approach to process and workflow automation based on a process

library. Moreover, F2 is a fully open platform that easily interfaces with other IT

systems through an extensive set of APIs (Application Programming Interfaces).

F2 thereby represents a unique technology. F2 offers government organizations the

opportunity to digitize based on standard software instead of traditional custom-built

solutions, and due to the flexibility and configuration

capabilities, F2 is suitable for nearly any type of

government organization, from ministries to agencies,

cities, and municipalities.

F2 can easily be configured to support

any type of government workflow and process

With F2, it is possible to define customer-specific

workflows, supporting both internal processes and external

citizen-facing processes end-to-end, without making any

change to the standard software. A workflow is described

by a process sheet, which is attached to a case type and

stored in the process library.

The process sheet is open source and technically referred

to as a declaration. The process sheet functions in a

manner similar to a sheet in a spreadsheet, and the process

sheet is stored totally separated from the basic F2 standard

software. It is therefore possible, seamless and fully

automated, to upgrade F2 to new versions, regardless of

how extensive F2 has been configured.

For advanced users, complex workflow and process declarations are built using the F2

Toolchain. However, for simpler workflows and processes, cBrain offers an interface

to the toolchain called F2 Service Builder. This allows users with limited technical

experience to define workflows easily by simply filling out a spreadsheet.

19 | Interim Report | 2024

F2 Service Builder allows users to digitize workflows

simply by filling out a spreadsheet

The F2 Service Builder allows business users and process consultants to digitize

workflows easily by filling out a spreadsheet. This includes the definition of end-to-

end workflows, encompassing self-service, case processing, filing, and even data

extracts and dashboards for management controls and reporting.

Users simply input the process definition into a spreadsheet, detailing all the

necessary process steps, including checklists, automated email and letter generation,

and more. The completed spreadsheet is then uploaded to the F2 standard software.

Should users wish to modify the process definition, they can simply update the

spreadsheet and upload the updated version, ready to run.

It may still take time to understand and design a government process, but with the F2

Service Builder, the IT work involved is significantly reduced or almost eliminated,

allowing for the rapid setup of well-functioning processes in just a few hours.

Additionally, process definitions can be easily reused by copying an existing process,

revising the copied sheet, and uploading it as a new process. As a result, the F2

Service Builder provides a unique and efficient approach for government

organizations seeking to digitize a large number of processes at a high speed.

F2 Service Builder is a unique tool for both customers and partners

By allowing organizations to develop and reuse smart processes, the F2 Service

Builder becomes an extremely efficient tool for implementing best practices and

driving standardization throughout the organization.

This makes the F2 Service Builder a unique tool for external partners who offer large-

scale digital transformation to government organizations. With this tool, consulting

partners specializing in process optimization and automation can deliver fast and agile

digital transformation solutions.

Thanks to its flexibility, the process sheets can be easily modified to align with future

changes in processes or organizational structures. This enables external consulting

partners to offer government customers a truly agile approach, focusing on step-by-

step process innovation and organizational development. Concurrently, they can build

and provide pre-configured process libraries for their government customers, based

on well-established best practices.

As a result, cBrain expects the F2 Service Builder to become a pivotal tool within the

F2 ecosystem of partners. Through close collaboration with customers and partners,

cBrain continuously enhances the functionality of the F2 Service Builder.

20 | Interim Report | 2024

Customers and Growth Plan

F2 is a proven solution

Today more than 75 Danish government organizations, including almost all Ministries,

use F2 as their digital platform. They run on the exact same software and they

typically upgrade, fully automated, once a year for new releases of the F2 software.

Additionally, F2 has been successfully implemented for government usage across 5

continents, including countries such as Egypt, France, Germany, Ghana, Guyana,

Kenya, Romania, Ukraine, United Arab Emirates, UK, and USA.

The cBrain business model is highly scalable

The adoption of standard software represents a disruptive and game-changing

approach. By adopting standard software instead of custom-built solutions, it is

possible to eliminate a significant portion of the IT work related to digital

transformation.

This offers government entities substantial business benefits through cost reductions,

faster delivery, and accelerated digital transformation, and in addition it challenges

the traditional IT consulting industries that have relied on extensive projects and

hourly billing practices to establish their business.

With F2 cBrain challenges one of the largest industries and faces a significant

business opportunity. cBrain intends to capitalize on this opportunity and is executing

an ambitious international growth plan.

Key elements of the growth plan include investing in F2 Climate Software, which

serves as a door opener and accelerator for international sales and investing in the F2-

for-Partners concept, which allows cBrain to further scale its business.

The growth plan is based on organic growth. cBrain delivers solid growth and earnings

with a strong positive cash flow, thereby financing its business without the need for

loans.

The business model is international and highly scalable, due to F2 product and the

partner strategy. Based on generic government principles and the model for Digital

Bureaucracy, F2 digital platform has proven itself to support governments across the

world.

cBrain is building an eco-system of international partners, who offers government

digital transformation by leveraging the F2 standard software. Thereby cBrain can

grow without the linear restrictions of building its own organization.

F2 Climate Software

The fight against climate change and global warming is driven and funded by

government, and by use of legislation and financial incentives, politicians have an

extraordinarily strong toolbox. However, political decisions must be implemented by

strong and accountable institutions. The reality is therefore that it often takes years to

execute decisions due to bureaucratic delays, fueled by the lack of digitizing and

inefficient IT systems. Climate software helps government organizations to

accelerate the deployment of climate action initiatives. Highly transparent while

minimizing costs, the software supports a broad portfolio of processes from

approvals and grant management to inspections.

Climate software means speed of action. Closing the time gap between political

decision and bureaucratic execution.

In November 2020, the Danish Parliament adopted a new legislation to take carbon

rich farmland out of production. By February 2021, the Danish Environmental

Protection Agency (Danish EPA) managed to run the first round of the 300m Euro

program.

The Danish farmland program has a potential to reduce CO

emissions by up to

20%. By use of government climate software, the Danish EPA achieved fast track

execution, and by executing within months instead of years, Danish government is

now leading by example.

F2 Climate Software is standard software. It is based on reusable open-source

configuration and best practices developed in close collaboration with the Danish

EPA. Government climate software can therefore easily be reused across the world,

and Denmark has a strong tradition in sharing best practices with other countries.

As an example, a solution designed for the Danish EPA, was replicated and deployed

by Guyana government to protect and regulate the trade of endangered species and

animals in the Amazon rainforest. Thereby demonstrating how governments across

the world can reuse and work together to protect and restore biodiversity.

21 | Interim Report | 2024

cBrain has a strong Danish customer base, which

counts more than 75 Danish government organizations

including more than 80% of all ministries

cBrain has a strong Danish customer base, which

counts more than 75 Danish government organizations

including more than 80% of all ministries

22 | Interim Report | 2024

Working with partners, cBrain can offer fast digital transformation for

governments across the world

A key element of the cBrain growth plan is the F2-for-Partners concept, which

enables a new generation of government digital transformation partners. Today the

majority of government organizations are served by a huge industry of IT system

integrators and consulting firms, which have established their business and heavily

rely on extensive projects and hourly billing practices.

While this industry continues to deliver custom-built solutions based on software

components and application tools, governments struggle to convert ambitious

digitization plans into deliverables and measurable results.

The F2-for-Partner concept allows governments themselves, or by help of external

consulting firms, to take over the configuration and implementation of F2.

By leveraging standard software, a large portion of the IT-related work is eliminated.

This frees up time and resources and empowers government organizations and their

digital transformation partners to prioritize process innovation and organizational

enhancements, while successfully transforming and meeting their strategic business

goals.

With the F2-for-Partner concept, cBrain enables a new generation of government

digital transformation firms, who based on in-depth understanding of government

best practices offer process innovation and organizational enhancements.

By adopting standard software as the basis for digital transformation, these new

consulting firms will enable government organizations to redesign their traditional

high risk large-scale initiatives into digital transformation journeys at scale, based on

many small steps, agility, and continuous learning, which are aligned with continued

process innovation and organizational adjustments.

cBrain continues to develop the F2 standard software and best practices

This means happy users and low total cost of ownership. Software continuously has

to be maintained due to changing user requirements and technology changes, and

custom-built solutions erode over time because they are simply too costly and time

consuming to maintain.

With standard software this is very different. All government organizations who use

F2 are on a regular basis upgraded to the latest version. The club of F2 government

user organizations, with more than 100 members internationally, faces significantly

lower total costs of ownership, while avoiding the high ongoing costs of systems

maintenance.

It often takes an exceedingly long time to develop custom-built solutions. Custom-

built solutions are therefore often at risk of being outdated when they are delivered,

because user requirements or technical standards have changed while the solution

was built. At the same time, it is extremely hard to maintain and upgrade custom-built

solutions, the result being that users have to live with the burden of outdated IT-

systems.

In contrast, standard software offers users continuous access to new and upgraded

versions of the software. With the ability to easily re-configure custom specific

processes and system setup, independently of upgrades, the F2 standard software

can be adapted to changing user requirements.

Reusing best practices enables fast track organizational deployment

The Digital Bureaucracy Model is based on government best practices, which is the

foundation for the design and functions of the F2 standard software. In parallel with

the F2 digital platform, cBrain has also developed a best practice implementation

method, called the F2 Implementation Method.

Digital transformation based on best practices and reuse of standards drive and

accelerate change. But to ensure successful transformation, it is important to take

organizational readiness into account. The F2 Implementation Method is therefore

based on transformation waves.

With this approach, organizational implementation is orchestrated by deploying best

practices and functionality aligned with organizational change. This is possible

because it is easy to reconfigure the standard software in parallel with process

reengineering and organizational development.

The wave model is based on 3 elements: a set of overall best practice principles,

deployment of generic routines and driving departmental process digitizing based on

case types.

The overall principles set the overall stage for digital ambitions and the speed of

change. The overall principles guide the deployment of generic routines and

functionality, leading to a specific Wave Scheme which directs both an organizational

(business) project plan and a technical project plan.

By learning from implementation projects across the world, the F2 best practice

implementation method is continuously developed.

The F2 best practice implementation method is offered for partners, as part of the

F2-for-partners concept, thereby allowing partners to offer global government best

practices as part of their digital transformation services.

23 | Interim Report | 2024

24 | Interim Report | 2024

Shareholders

Stock Information

cBrain is a Danish software company listed on NASDAQ OMX Nordic

(Symbol: CBRAIN) under the share code: DK0060030286.

In total cBrain has +14.000 shareholders in +40 countries.

For additional information regarding shareholder

relations and in-depth information about cBrain visit

www.cbrain.com/investor

Financial Calendar

August 21, 2024 Publication of the Interim Report for the first half of 2024

November 7, 2024 Quarterly Announcement 3rd quarter 2024

February 20, 2025 Publication of the Annual Report 2024

Contact

Inquiries regarding the company’s relationships with investors

and the market can be directed to:

Ejvind Jørgensen

CFO & Head of Investor Relations

E-mail: ir@cbrain.com

Company Announcements and Press Releases since January 1, 2024

In the period from January 1, 2024, onwards the publication of the interim report for

2023, cBrain has published the following notices to Nasdaq Copenhagen. They can all

be found on the company’s website www.cbrain.com/investor

Jan 15, 2024

cBrain beats expectations on top and bottom lines as

subscription revenue jumps

Feb 8, 2024

cBrain and the German

Danish Chamber of Commerce have

taken initiative to reuse Danish e-government experiences in

Germany

Feb

22, 2024

cBrain guides continued growth and solid earnings in 2024 and

suggests a dividend raise by 33%

Feb 22, 2024

In 2023 cBrain grew revenue by

27% and delivered record high

earnings before tax margin (EBT margin) of 34%

Feb 28, 2024

cBrain Kodumburar India signs memorandum of understanding

with state Tamil Nadu and Union Territory of Puducherry

Mar 7, 2024

cBrain partner to deliver first F2 based government solution in

Ghana

Mar 14, 2024

cBrain releases first F2 standard module for

government AI

Mar 21, 2024

Annual General Meeting 2024

Apr 16, 2024

Reporting of transactions made by persons discharging

managerial responsibilities

Apr 22, 2024

cBrain Delivers Digital Solution to Certify Responsible Cannabis

Production in California

Apr 24, 2024

cBrain takes lead within AI for government

Apr 24, 2024

Minutes of meeting from AGM 2024

May 16, 2024

cBrain Wins the Tax Governance Top Rating 2024 for mid cap

companies

Jun 12, 2024

cBrain Signs Proof of Concept in

Nigeria

Aug 5, 2024

cBrain Signs Contract on Ambitious AI Transformation Project

in the UAE

25 | Interim Report | 2024

Statement

by the Board of Directors and the Executive Management

Statement

by the Board of Directors and the Executive Management

26 | Interim Report | 2024

Management Statement

The Board of Directors and the Executive Board have today discussed and approved

the Interim Report of cBrain A/S for the period January 1, 2024 to June 30, 2024.

The Interim Report has not been audited or reviewed by the company’s independent

auditors.

The interim financial report has been prepared in accordance with IAS 34 Interim

Financial Reporting as adopted by the EU and additional requirements in the Danish

Financial Statements Act.

The accounting policies remain unchanged from the annual report for 2023.

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

of cBrain’s consolidated assets, liabilities and financial position at June 30, 2024 and

of the results of cBrain’s consolidated operations and cash flows for the period

January 1, 2024 to June 30, 2024.

Furthermore, in our opinion, the Management review includes a fair review of the

development in cBrain’s operations and financial conditions, the results for the period,

cash flows and financial position as well as a description of the most significant risks

and uncertainty factors that cBrain faces, relative to the disclosures in the annual

report for 2023.

Copenhagen, August 21, 2024

Board of Directors

Henrik Hvidtfeldt

Chair

Lisa C. Herold Ferbing

Peter Loft

Per Tejs Knudsen

Thomas Qvist

Executive Board

Per Tejs Knudsen

CEO

Thomas Qvist

CTO

27 | Interim Report | 2024

Financials

Interim Financial Statements for first half-year 2024

Financials

Interim Financial Statements for first half-year 2024

28 | Interim Report | 2024

Consolidated Statements of Comprehensive Income

CONSOLIDATED INCOME STATEMENT

T.DKK

Notes H1 2024

H1 2023

FY 2023

Revenue 3, 4

139.178

131.780

239.182

Cost of services

-1.603

-824

-2.152

External expenses

-19.700

-18.618

-35.683

Staff costs

-73.432

-65.106

-121.181

R&D costs capitalized

11.541

11.582

26.404

Depreciation and amortization expense

-12.026

-10.353

-21.165

Operating profit (EBIT)

43.958

48.461

85.405

Financial income

520

310

1.313

Finance costs

-1.592

-2.043

-5.364

Earnings before taxes (EBT)

42.886

46.728

81.354

Income taxes

-11.084

-10.532

-18.176

Profit for the period

31.802

36.196

63.178

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

T.DKK

Notes

H1 2024

H1 2023

FY 2023

Profit for the period

31.802

36.196

63.178

Other comprehensive income

Total comprehensive income for the period

31.802

36.196

63.178

EARNINGS PER SHARE (EPS)

T.DKK

Notes

H1 2024

H1 2023

FY 2023

Basic EPS

1,59

1,81

3,16

Diluted EPS (DEPS)

1,59

1,81

3,16

29 | Interim Report | 2024

Consolidated Balance Sheet

ASSETS

T.DKK Notes

June 30,

2024

June 30,

2023

Dec. 31,

2023

Intangible assets 5

66.444

58.224

64.594

Property, plants and equipment 6

208.818

213.049

211.572

Other assets

799

511

798

Total non-current assets 276.061

271.784

276.964

Trade receivables 74.037

77.064

43.801

Contract assets 16.623

4.913

8.630

Other receivables 3.349

7.486

2.228

Receivables 94.009

89.463

54.659

Cash and cash equivalents 1.730

3.632

9.234

Total current assets 95.739

93.095

63.893

Total assets 371.800

364.879

340.857

EQUITY AND LIABILITIES

T.DKK Notes

June 30,

2024

June 30,

2023

Dec. 31,

2023

Share capital

5.000

Retained earnings

250.504

196.566

218.580

Proposed dividend

5.600

Total equity

255.504

201.566

229.180

Deferred tax liabilities

12.128

10.548

11.759

Borrowings 7

47.844

91.739

48.807

Total non-current liabilities

59.972

102.287

60.566

Trade payables

5.086

4.639

3.429

Contract liabilities

15.980

17.815

5.163

Current tax liabilities

6.340

8.740

13.780

Borrowings 7

1.944

4.968

1.906

Other payables

25.923

24.864

26.833

Provisions

1.051

Total current liabilities

56.324

61.026

51.111

Total liabilities and equity

371.800

364.879

340.857

Accounting policies 1

Accounting estimates 2

30 | Interim Report | 2024

Consolidated Statements of Changes in Equity

JUNE 30, 2024

T.DKK

capital

Retained

earnings

Proposed

dividend

Total

equity

Equity, January 1 5.000

218.580

5.600

229.180

Net profit for the year 0

31.802

Comprehensive income for the period 0

31.802

Dividends 0

122

-5.600

-5.478

Transactions with owners 0

122

-5.600

-5.478

Equity, June 30 5.000

250.504

255.504

JUNE 30, 2023

T.DKK

capital

Retained

earnings

Proposed

dividend

Total

equity

Equity, January 1 5.000

160.302

4.200

169.502

Net profit for the year 0

36.196

Comprehensive income for the period 0

36.196

Share-based payments 0

235

Purchase of treasury shares 0

-985

Sale of treasury shares 0

726

Dividends 0

-4.200

-4.108

Transactions with owners 0

-4.200

-4.132

Equity, June 30 5.000

196.566

201.566

31 | Interim Report | 2024

Consolidated Cash Flow Statement

T.DKK H1 2024

H1 2023

Full Year 2023

Operating profit (EBIT) 43.958

48.461

85.405

Depreciation and amortization 12.026

10.353

21.165

Change in working capital

Change in trade and other receivables -31.357

-36.523

1.998

Change in contract assets and -liabilities 2.824

4.140

-12.229

Change in trade and other payables 747

301

1.060

Change in provisions 1.051

Cash flow from operating profit 29.249

26.732

97.399

Share-based payments 0

235

Financial items, net -1.252

-953

-3.885

Income taxes paid -16.863

-6.379

-7.452

Cash flow from operating activities 11.134

19.635

86.297

T.DKK H1 2024

H1 2023

Full Year 2023

Investments in intangible assets -11.541

-11.582

-26.404

Investments in property, plant and equipment -681

-648

-703

Cash flow from investing activities -12.222

-12.230

-27.107

Repayment of borrowings -938

-1.890

-48.073

Dividends paid, net -5.478

-4.108

Cash flow from financing activities -6.416

-5.998

-52.181

Cash and cash equivalents, beginning of period

9.234

2.225

Net cash flow for the period -7.504

1.407

7.009

Cash and cash equivalents, end of period 1.730

3.632

9.234

32 | Interim Report | 2024

Notes

33 | Interim Report | 2024

Note 1 – Accounting policies

General information

cBrain A/S is listed on the Danish Exchange and incorporated and domiciled in

Copenhagen, Denmark. The address of its registered office is Kalkbrænderiløbskaj 2,

2100 Copenhagen, Denmark.

Basis of preparation of the Interim Report

This unaudited condensed consolidated interim financial report for the half-year

reporting period ended June 30, 2024, comprises the interim financial statements of

the parent company cBrain A/S and any subsidiaries controlled by cBrain.

The condensed interim financial report has been prepared in accordance with

Accounting Standard IAS 34 Interim Financial Reporting as adopted by the EU, and

further requirements in the Danish Financial Statements Act for the presentation of

interim reports by listed companies.

The condensed consolidated interim financial report does not include all the notes of

the type normally included in an annual financial report. Accordingly, this report is to

be read in conjunction with the annual report for the year ended December 31, 2023,

and any public announcements made by cBrain during the interim reporting period.

The accounting policies adopted are consistent with those of the previous financial

year and corresponding interim reporting period and the adoption of new and

amended standards as set out below.

Implementation of new or changed accounting standards and interpretations

IASB has issued amended standards which apply for the first time in 2024. None of

these amended standards and interpretations are expected to have any significant

impact on the financial statements.

Note 2 – Accounting estimates

The preparation of the interim financial statements requires management to make

accounting estimates and judgments, which affect the application of accounting

policies for recognized assets, liabilities, income, and costs. Actual results may differ

from these estimates.

The significant accounting estimates and judgments are consistent with those

applied in the annual report for 2023.

Note 3 – Segment information

Segments

cBrain has only one operating segment, as there is no division of the group's activities

in internal reporting.

The included intangible and tangible fixed assets on the balance sheet can largely be

attributed to Denmark.

Market areas

cBrain’s F2-software solution is a comprehensive product consisting of a wide range

of software modules and libraries that can be configured. The software product is

marketed under the brand name F2.

Geographical areas

When presenting information regarding geographical areas, information about the

distribution of revenue across geographical segments is calculated based on

customers' geographical locations.

The following table shows revenue by reportable segment for the six-month period

ended June 30:

T.DKK H1 2024

H1 2023

FY 2023

Products and Services

Software

111.402

105.858

189.179

Services 27.776

25.922

50.003

139.178

131.780

239.182

Timing of revenue recognition

Over time

93.997

91.792

198.796

At a point in time 45.181

39.988

40.386

139.178

131.780

239.182

34 | Interim Report | 2024

Note 3 – Segment information (continued)

T.DKK H1 2024

H1 2023

FY 2023

Geographical information

Denmark

87.311

72.169

155.498

Other EU-countries 48.487

55.566

75.930

Countries outside the EU 3.380

4.045

7.754

139.178

131.780

239.182

Significant Customers

Customer A*

78.173

57.872

128.884

Customer B 47.566

54.706

74.091

*Customers in the Danish state is aggregated together as Customer A.

Note 4 – Revenue

T.DKK H1 2024

H1 2023

FY 2023

Software 111.402

105.858

189.179

Services 27.776

25.922

50.003

139.178

131.780

239.182

Note 5 – Intangible assets

June 30, 2024

T.DKK Software

Software

under

development

Total

Cost, January 1 181.517

3.417

184.934

Additions during the period 0

11.541

Cost, June 30 181.517

14.958

196.475

Amortization, January 1 120.340

120.340

Amortization for the period 9.691

9.691

Amortization, June 30 130.031

130.031

Carrying amount, June 30 51.486

14.958

66.444

June 30, 202

T.DKK Software

Software

under

development

Total

Cost, January 1

156.298

2.233

158.531

Additions during the period 0

11.582

Cost, June 30 156.298

13.815

170.113

Amortization, January 1 103.387

103.387

Amortization for the period 8.502

8.502

Amortization, June 30 111.889

111.889

Carrying amount, June 30 44.409

13.815

58.224

35 | Interim Report | 2024

Note 6 – Property, plant and equipment

June 30, 2024

T.DKK

Land and

buildings

Other

Equipment

Total

Cost, January 1 214.564

4.495

219.059

Additions during the period 0

681

Disposals during the period -1.100

-1.100

Cost, June 30 213.464

5.176

218.640

Depreciation, January 1 6.014

1.473

7.487

Depreciation for the period 1.932

499

2.431

Accumulated depreciation on disposals -96

-96

Depreciation, June 30 7.850

1.972

9.822

Carrying amount, June 30 205.614

3.204

208.818

June 30, 2023

T.DKK

Land and

Buildings

Other

Equipment

Total

Cost, January 1 213.952

4.024

217.976

Additions during the period 523

353

876

Disposals during the period 0

-228

Cost, June 30 214.475

4.149

218.624

Depreciation, January 1 2.216

679

2.895

Depreciation for the period 2.315

365

2.680

Depreciation, June 30 4.531

1.044

5.575

Carrying amount, June 30 209.944

3.105

213.049

Note 7 – Borrowings

Coupon

Rate

Effective

Interest Rate

Currency

Maturity

June 30, 2024

Floating interest rate loans

3,92%

DKK

18 years

June 30, 2023

Floating interest rate loans

4,06%

DKK

19 years

T.DKK H1 2024

H1 2023

2023

Within one year

1.944

4.968

4.215

1-3 years 4.120

14.904

8.391

3-5 years 4.452

44.712

8.334

More than 5 years 39.272

32.123

55.091

Total contractual undiscounted cash flows 49.788

96.707

76.031

T.DKK

June 30,

2024

June 30,

2023

December 31,

2023

Non-current liabilities

47.844

91.739

48.807

Current liabilities 1.944

4.968

1.906

Carrying amount 49.788

96.707

50.713

cBrain A/S

Kalkbrænderiløbskaj 2

DK-2100 Copenhagen

Denmark

+ 45 7216 1811

info@cbrain.com

Nasdaq symbol: CBRAIN