Parent Company Financial Statement
1 | Annual Report | 2024
Annual Report
2024
cBrain A/S
Kalkbrænderiløbskaj 2
DK-2100 Copenhagen
Denmark
CVR no. 24233359
January 1
–
December 31,
2024
2 | Annual Report | 2024
COTS Software Redefines and Accelerates
Government Digital Transformation
Driven by expanding partnerships and large contracts globally, cBrain intends
to become a leading supplier of COTS (Commercial Off-The-Shelf) software
for government.
3 | Annual Report | 2024
Content
Management’s Review ............................................................................................................................................ 4
Letter from the CEO ................................................................................................................................................. 5
Five-year Summary ................................................................................................................................................... 7
Financial Results ........................................................................................................................................................ 10
Our Business ............................................................................................................................................................... 13
Market and Value Proposition ............................................................................................................................. 14
The F2 Software ........................................................................................................................................................ 19
Customers and Growth Plan ............................................................................................................................... 22
Risk Management .................................................................................................................................................... 28
Shareholders ............................................................................................................................................................... 31
Shareholder Information ....................................................................................................................................... 32
Financial Calendar 2025 ........................................................................................................................................ 33
Company Announcements and Press Releases ........................................................................................ 34
Governance ................................................................................................................................................................ 35
Corporate Governance .......................................................................................................................................... 36
Board of Directors ................................................................................................................................................... 40
Sustainability .............................................................................................................................................................. 41
Introduction ................................................................................................................................................................ 42
General information................................................................................................................................................ 44
Environmental Information ..................................................................................................................................52
Social Information ................................................................................................................................................... 59
Governance Information ...................................................................................................................................... 68
Statements .................................................................................................................................................................. 71
Management Statement ....................................................................................................................................... 72
Independent Auditor’s Report ............................................................................................................................ 73
Financials ...................................................................................................................................................................... 77
Consolidated Financial Statements ................................................................................................................ 78
Parent Company Financial Statements....................................................................................................... 102
1
3
Our Business
41
Sustainability
7
7
Financials
4 | Annual Report | 2024
Management’s Review
5 | Annual Report | 2024
Letter from the CEO
Solid growth and earnings in 2024
Revenue grew by +12% to DKK 268m in 2024, up from DKK 239m in 2023, aligning
with the expected revenue growth range of 12-13%.
Software revenue is 78% of total revenue, while implementation and support services
account for 22% of total revenue. Software subscriptions, the majority based on long-
term contracts with Danish government customers, account for more than 50 % of
the total revenue.
Earnings before tax (EBT) grew to DKK 86m in 2024, up from DKK 81m in 2023,
thereby reaching an EBT margin of 32%. EBT is therefore at the expected EBT margin
of 30-32%.
Due to faster-than-expected global industry changes as well as market uncertainties
in the US and Germany, cBrain has held back some of the planned market
investments in 2024. This has resulted in costs being lower than expected.
The results show a strong positive cash flow from operating activities. This enables an
increase in dividends and investments in the growth of the company and at the same
time reduces long-term loans on cBrain-owned buildings.
cBrain does not have a share buyback program. However, due to solid earnings, cBrain
proposes to raise dividends to DKK 0,64 per share (2023: DKK 0,28 per share)
corresponding to a payout ratio of approx. 20% of profit for the year.
Executing the growth plan
In 2022, cBrain announced its 2023-2025 growth plan with the goal of consolidating
the business model and preparing for long-term growth by positioning itself as a
supplier of climate software for government and developing a partner model.
During the past two years, cBrain has executed this plan and during 2023 and 2024,
cBrain has grown, initiated partnerships, and delivered solid results, growing revenue
by +42% and growing EBT by +76%.
The growth plan assumes that government organizations over time will switch from
relying on custom-built solutions and best-of-breed architectures to using standard
software. The government IT industry is massive and dominated by large suppliers
who benefit from consultancy fees and billable hours. This creates significant entry
barriers as the classic vendors defend their business, and the growth plan therefore
anticipates a long and slow transition to standard software.
The COTS for government seem to emerge faster than anticipated
Contrary to these assumptions, cBrain now sees indications that industry shifts
toward standard software and platforms are occurring faster than anticipated. Fueled
by a lack of skilled IT resources and a growing demand for fast delivery, cBrain sees a
rapidly emerging IT industry, referred to as Commercial Off-The-Shelf (COTS) for
government. For cBrain, this presents new strategic opportunities.
COTS for government, leveraging new technologies and platforms such as the F2
Digital Platform, enables digital transformation at higher speed and lower costs that
outperform traditional IT modernization.
For example, cBrain delivered a complete end-to-end digital platform for two new
Danish ministries within just three weeks during the autumn of 2024, and in 2025
cBrain has just announced a third new Danish ministry, following a similar fast-track
implementation schedule. Traditionally, projects of this nature take years and often
fail. The Danish ministerial cases thereby exemplify the power of the COTS for
government approach.
cBrain has a first-mover advantage
The long-term cBrain growth strategy is founded on a vision and a business case to
provide standard software for government. Over the past 15 years, cBrain has
invested more than 450,000 hours in developing the F2 platform. Danish ministries
and a total of more than 75 Danish authorities use F2 as their digital platform.
Internationally cBrain has delivered F2 for government organizations across five
continents.
With a solid first-mover advantage and a strong customer base, cBrain is well-
positioned to become a leading international software provider of COTS for
government solutions.
During the year 2024, the accelerated market shift and the power of the COTS for
government approaches have opened new opportunities for cBrain. This is
exemplified by the recent collaboration between cBrain and UNDP in Africa to
6 | Annual Report | 2024
support the UNDP Digital Offer for Africa strategy, and larger orders in Romania
helping to modernize traditional mainframe-type solutions.
Reiterating the international growth strategy
The faster-than-expected market shift, with government looking toward IT
modernization and digitization based on the alternative COTS for government
approach, clearly represents an incredibly positive development for cBrain.
cBrain wants to fully take advantage of this, and a solid business with strong cash flow
and earnings offer strategic flexibility. Consequently, cBrain is now reiterating and
potentially adjusting its international growth strategy.
This includes evaluating organizational readiness, as well as market and product
development strategies, to leverage and maximize the benefits of accelerated
industry changes. With the goal of being an internationally leading vendor in the
emerging COTS for government industry, cBrain will execute several changes to the
growth plan during the spring of 2025.
Driving international expansion
With the current Danish customer base, cBrain has a strong home market position.
Internationally this is an important reference position, and cBrain intends to maintain
and develop a strong position on the Danish market.
However, to be a leader in the COTS for government industry and fully deploy the
potential of the new emerging industry, cBrain will direct more resources into its
international business.
cBrain has built its international business based on organic growth, building the
business by addressing international customers directly or in collaboration with local
partners. This strategy is maintained, but with an increased focus on working with
international partners.
As of today, over one-third of the total revenue is export. cBrain is currently
reiterating and potentially adjusting its international growth strategy with a goal, that
within a few years, the international revenue will be significantly larger than the Danish
revenue.
Lifting the business
During the past two years, cBrain has built a pipeline of potential customers, which are
significantly larger than the average Danish customer. This includes projects in
Germany and the US, as well as projects in the Emirates, India, Kenya, and Romania.
For cBrain to be a leader in the COTS for government industry, it is key to building an
international business. Backed by a solid financial position, cBrain is therefore shifting
a focus to international opportunities. This shift involves changes across the cBrain
internal organization, from marketing and sales to delivery and R&D.
cBrain announced the growth plan in 2022 with an ambition to reach a revenue of 350
million in the year 2025. cBrain continues to execute its growth plan. However,
reaching the revenue ambition requires winning and delivering some of the large
international contracts cBrain is currently working on.
cBrain guides continued growth in revenue and solid earnings for 2025
With limited visibility, cBrain forecasts expected revenue growth in 2025 of 10-15%
and earnings before tax (EBT) of 18-23%.
The earnings forecast is based on solid market development investments into
international growth, across the African region, USA, Germany, and India, as well as
investments into developing the F2-for-Partners concept.
Per Tejs Knudsen
CEO
7 | Annual Report | 2024
Five-year Summary
T.DKK
2024
2023
2022
2021
2020
INCOME STATEMENT
Revenue 267.781
239.182
187.924
154.662
120.120
Depreciation and amortization -24.756
-21.165
-18.853
-19.444
-16.360
Operating profit (EBIT) 88.342
85.405
49.379
38.714
20.793
Financial items, net -2.338
-4.051
-451
275
-696
Earnings before tax (EBT) 86.004
81.354
48.928
38.989
20.097
Profit for the period 64.815
63.178
38.383
31.006
15.537
FINANCIAL POSITION
Cash and cash equivalents 22.256
9.234
2.225
72.181
50.792
Trade receivables 46.962
43.801
40.516
27.576
39.597
Total assets 392.376
340.857
322.693
215.851
155.100
Total equity 288.517
229.180
169.502
134.877
105.927
CASH FLOWS
Cash flow from operating activities 67.924
86.297
62.312
50.231
43.754
Cash flow from investing activities -47.434
-27.107
-226.443
-20.447
-18.123
Investments in PPE -24.598
-703
-205.494
-957
0
Cash flow from financing activities -7.468
-52.181
94.175
-8.396
-5.999
Definitions of
financial
ratios are set out in note 31 to the Consolidated Financial Statements.
Amounts are presented in European format.
8 | Annual Report | 2024
Five-year Summary
T.DKK
2024
2023
2022
2021
2020
FINANCIAL RATIOS
Revenue growth rate 12%
27%
22%
29%
25%
Profit margin (EBIT) 33%
36%
26%
25%
17%
Return on investment (ROI) 22%
24%
15%
18%
13%
EBT margin 32%
34%
26%
25%
17%
Liquidity ratio 208%
125%
104%
303%
294%
Solvency ratio 74%
67%
53%
62%
68%
Return on equity 25%
32%
25%
26%
16%
STOCK MARKET RATIOS
Number of shares 1.000 pcs. 20.000
20.000
20.000
20.000
20.000
Book Value per Share (BVPS) 14,43
11,46
8,48
6,74
5,30
Basic EPS 3,24
3,16
1,92
1,55
0,78
Diluted EPS (DEPS) 3,24
3,16
1,92
1,55
0,78
ENVIRONMENTAL AND SOCIAL DATA
Average number of employees (FTEs) 189
167
152
137
117
Gender diversity, all employees 40%
43%
43%
44%
40%
Scope 1 & 2 CO2e emissions (tons) 13
25
99
65
56
Definitions of
financial
ratios are set out in note 31 to the Consolidated Financial Statements.
Amounts are presented in European format.
9 | Annual Report | 2024
REVENUE (DKK)
268m
REVENUE GROWTH
12%
EBT MARGIN
32%
Share of revenue
SOFTWARE SALES
78%
Share of revenue
INTERNATIONAL SALES
34%
10 | Annual Report | 2024
Financial Results
Revenue
Total revenue increased by DKK 29m (+12%) to DKK 268m in 2024, driven by
increased sales in Denmark and internationally, from DKK 239m total revenue in 2023.
Software sales increased DKK 20m or (+11%) from DKK 189m in 2023 to DKK 210m in
2024, constituting 78% of the total revenue.
Sales of services increased by DKK 8m (+16%) from DKK 50m in 2023 to DKK 58m in
2024.
International sales increased by DKK 6m (+7%) from DKK 84m in 2023 to DKK 90m in
2024, presently representing 34% of the total revenue.
For further details on cBrain’s revenue segment information, see notes 3 and 4
consolidated financial statements.
Costs and capitalization
cBrain’s costs are primarily staff costs (wages and salaries), business development,
travel, and office expenditures including depreciation.
The increase in expenses from DKK 158m in 2023 to DKK 182m in 2024 is primarily
attributed to the growth in employees and business development, due to investments
in international expansion.
cBrain’s intangible assets comprise capitalized development costs relating to the
development of F2 standard software. In 2024, DKK 23m was capitalized as software
under development.
Earnings Before Tax (EBT)
Earnings before taxes (EBT) increased by 5m (+6%) from DKK 81m in 2023 to DKK
86m in 2024. The EBT margin is 32% in 2024 compared to 34% in 2023.
Taxes
Income taxes of DKK 21m consist of the current tax on profits for the year, DKK 19m,
and an adjustment for deferred tax of DKK +1m. Additionally, an adjustment for the
prior year is DKK 2m. Thus, the effective tax rate for the year is 24%.
Intangible assets
In November 2024, F2 Version 12 was released, resulting in the transfer of DKK 23m
from software under development to released software which is amortized over 5
years. In 2024 released software of DKK 20m was depreciated. For more detailed
information and risk descriptions, please see notes 2 and 13 in the notes to
consolidated financial statements.
Property, Plants, and Equipment (PPE)
The total amount for property, plant, and equipment stated in the consolidated
financial statements is DKK 231m of which the headquarters in Copenhagen, Utzon
House, has a carrying amount of DKK 192m.
The Utzon House is held by the 100% owned subsidiary cProperty ApS with cBrain
A/S as the tenant and therefore the lease agreement is reflected in the parent
company’s balance sheet in accordance with accounting practice with a carrying
amount of DKK 50m corresponding to 10 years of discounted lease payments. The
agreement can be terminated earliest after 5 years.
In 2024 cBrain invested DKK 24m in facilities in Nordhavn, Denmark.
Liquidity and Capital Resources
cBrain is confident that its cash and cash equivalents, amounting to DKK 22m at the
end of the year 2024, together with trade receivables totaling DKK 47m, and cash
generated by ongoing operations will adequately cover its cash requirements for the
next 12 months and beyond.
Debt and Interest Rate Risk
At the end of 2024, cBrain held outstanding 18-year variable-rate mortgage loans
(borrowings), with rate-fixing every 6 months, totaling DKK 49m. Repayments of DKK
2m are scheduled within the next 12 months.
Management routinely assesses its exposure to interest rate fluctuations. A change in
interest rates over the next 12 months is not anticipated to impact the financial
statements notably.
11 | Annual Report | 2024
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.
Shareholders’ Equity
Total equity has increased by DKK 59m and amounts to DKK 289m as of December
31, 2024.
cBrain did not repurchase any ordinary shares during the year. However, the Annual
General Meeting authorizes management to repurchase up to 10% of its share capital.
Dividend
The Board of Directors proposes a dividend of DKK 0,64 per share for 2024,
equivalent to a total dividend payment of DKK 13m to the shareholders (2023: 0,28
per share, equivalent to a total dividend of DKK 6m).
Cash flows
Cash flow from operating activities in 2024 is DKK 68m (2023: DKK 86m). The
difference is attributable to a higher payment of advance taxes in 2024 to minimize
interest expenses on payable tax.
Cash flow from investing activities is DKK -47m (2023: DKK -27m), consisting of
investments in F2 software development projects and fixed assets related to office
buildings. In 2024, development projects amounting to DKK -23m were capitalized in
2024 (2023: DKK -26m). Additionally, DKK -24m was invested in office buildings, and
DKK 1m capitalized IT hardware (2023: DKK -1m).
Cash flow from financing activities amounts to DKK -7m (2023: DKK -52 million),
comprising dividends paid of DKK -5 million (2023: DKK -4 million) and repayment of
borrowings of DKK -2m (2023: DKK -48m).
REVENUE split by
Sales in Denmark and International
REVENUE split by
Software and Sales of Services
0
40.000
80.000
120.000
160.000
200.000
240.000
280.000
2020 2021 2022 2023 2024
Sales in Denmark International sales
0
40.000
80.000
120.000
160.000
200.000
240.000
280.000
2020 2021 2022 2023 2024
Software sales Sales of services
12 | Annual Report | 2024
13 | Annual Report | 2024
Our Business
14 | Annual Report | 2024
Market and Value Proposition
Driven by expanding partnerships and large contracts globally, cBrain intends to become a leading supplier of
COTS software for government
Commercial Off-The-Shelf (COTS) software for government redefines and
accelerates government digital transformation
cBrain has developed F2, a highly flexible digital platform that can easily be configured
to support all government work processes, communication, and case and document
management.
Software for government digitization is one of the largest markets globally. Currently,
this market is dominated by major suppliers who provide custom-built solutions by
integrating best-of-breed software modules and components. However, many of
these projects encounter significant challenges, often resulting in delays and budget
overruns due to the complexity of implementing best-of-breed solutions.
cBrain is challenging the traditional government IT approach by offering standard
software, commonly known as COTS software. Unlike custom-built, best-of-breed
solutions, COTS for government offers substantial advantages to customers in terms
of quality, delivery speed, and reduced implementation and maintenance costs.
Historically, government organizations worldwide have been reluctant to incorporate
standard software into their digitization strategies. This hesitation often stems from
internal IT departments and procurement processes that are structured to work with
custom-built, best-of-breed solutions. However, several government agencies,
including leading Danish government institutions, have recently started to adopt
COTS, recognizing the benefits of standardized software.
cBrain sees indications that industry shifts toward standard software and platforms
are occurring faster than anticipated. Fueled by a lack of skilled IT resources and a
growing demand for fast delivery, cBrain sees a rapidly emerging IT industry, referred
to as COTS for government. For cBrain, this presents new strategic opportunities.
The faster-than-expected market shift, with government looking toward IT
modernization and digitization based on the alternative COTS for government
approach, clearly represents an incredibly positive development for cBrain.
cBrain wants to fully take advantage of this, and the solid business with strong cash
flow and earnings offer strategic flexibility. Consequently, cBrain has decided to
revisit and potentially adjust its international growth strategy. This includes evaluating
organizational readiness and market and product development strategies to leverage
and make the most of the accelerated industry changes.
cBrain expects that the transition to COTS for Government will significantly reduce
the need for IT consulting services, prompting a significant shift in the global
government IT industry.
The F2 digital platform is a proven
solution based on a model for digital
bureaucracy and best practices, which
have been developed in close
collaboration with the Danish
government. Currently, more than 75
Danish government entities, including
21 Danish ministries, use F2 as their
digital platform. Additionally, F2 has
been successfully implemented for
government usage across 5
continents, including Egypt, France,
Germany, Ghana, Guyana, Kenya,
Nigeria, Romania, Thailand, Ukraine,
the United Arab Emirates, the UK, and
the USA.
15 | Annual Report | 2024
The adoption of COTS for government software represents a disruptive and game-
changing approach. It challenges the business model in traditional IT consulting
industries that have relied on extensive projects, hourly billing practices, and branding
solutions for specific customers as standard products.
By challenging one of the largest industries, cBrain faces a significant business
opportunity. cBrain is capitalizing 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 scale its
business further.
The F2-for-Partners concept enables a new type of partners
While governments worldwide increase their investments in digital transformation,
the shortage of skilled IT professionals is often cited as a key factor in delays or
failures in IT modernization projects.
COTS for government and tools like F2 and the F2 Service Builder enable users
without a technical background to manage much of the IT work, thereby 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, it lowers costs and accelerates digital transformation.
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 new types of partners who focus on transformation services.
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.
1
McKinsey & Company. Transforming Government Through Digitization.
Democratizing IT Modernization
While governments worldwide 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 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, thereby reducing the demand for skilled
IT resources.
This makes COTS a game-changing technology for government and the industry. By
democratizing IT modernization and reducing the demand for skilled IT resources,
COTS for government simultaneously lowers costs and accelerates successful digital
transformation, thereby becoming a key enabler for government transformation.
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 and improve citizens’
quality of life while generating savings of over $1 trillion annually worldwide
1
In parallel,
government digitization is fundamental to achieving the 17 United Nations
Sustainable Development Goals (SDGs) and is a key tool for combating climate
change.
Governments worldwide are, therefore, investing heavily 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,
which relies on custom-built solutions and software components, leading to large IT
projects and budget overruns.
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 the Danish government, cBrain offers government fast digital
transformation at scale while effectively sidestepping the pitfalls of large-scale IT
projects and budget overruns.
At the core of digital transformation projects usually lie three fundamental elements:
process innovation, organizational implementation, and delivering a new IT system.
16 | Annual Report | 2024
However, many projects encounter major impediments related to the delivery of a
new IT system. Projects based on custom-built, or a best-of-breed approach are
usually delayed and often the IT-related work drains the majority of project time and
resources and deviates management focus. It leaves insufficient capacity for crucial
process innovation and organizational efforts.
In contrast, leveraging standard software built for government 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 or
a best-of-breed approach, the major portion of project hours is allocated to IT
development and integration. 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 platforms built for
government, drastically reduces risk, complexity, and the hours spent on IT
development. Where the traditional approach 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 digitalization, 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 extends
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 a grand scale, based on many small steps, agility, and continuous learning,
which are aligned with continued process innovation and organizational adjustments.
Standard Software not
only accelerates the speed
of digital transformation
but also enhances system
quality while significantly
reducing costs.
“
17 | Annual Report | 2024
Building a Digital Process
Library with UNDP Resilience
Hub in Nairobi
Digital is a lifeline to opportunity in Africa and paperless government is a key driver to
growing GDP, which should not remain a luxury.
Reusing proven COTS for government software, the UNDP Digital Process Library will
showcase best practices and ready-to-run solutions, thereby offering African
government fast-track digital transformation at scale.
In May 2023, cBrain participated and presented a whitepaper, on digitizing to build
accountable institutions, at the UN Science Technology and Innovation Forum in New
York. In September, cBrain and UNDP presented an outline for collaboration at the UN
General Assembly in New York, and in November cBrain and the regional UNDP’s
Resilience Hub in Nairobi announced a partnership.
The partnership between UNDP and cBrain illustrates how the F2-for-Partners
strategy enabled new types of partners. Fully integrated with the UNDP Digital for
Africa strategy, based on COTS for government and tools like the F2 service builder,
the UNDP Digital Process Library offers fast-track digital transformation for
government across the African region.
Danish ministries run paperless based on the F2. In October-December 2024, in just
10 weeks, the Danish paperless ministry solution was installed and adopted for a
Kenyan federal ministry.
Paperless eGovernment is a cornerstone to accountable institutions and growing
GDP. The African paperless ministry solution, reusing Danish government experiences,
will now be offered to the African government as part of the UNDP Digital Offer for
Africa strategy. Enabling African ministries to jump digitally 10 years in only 10 weeks.
Bringing COTS
software for government
to the world
Case
18 | Annual 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
19 | Annual Report | 2024
The F2 Software
F2 is built for government, based on the Danish government's 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 450.000 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 a
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 complete and fully integrated digital platform, built for government and easy to
customize and adapt
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 requests, approvals, hearings, and
Freedom of Information (FOI) requests, and even more important customer-specific
workflows that facilitate citizen-facing processes from self-service to back-end case
processing including handling complex rules, calculation, and filing, along with long-
term archiving.
From F2 version 12 F2 has a fully built-in F2 AI assistant helping case workers and
managers with multiple tasks such as preparing the basis for decisions, speeches, and
new and providing overviews on complex materials, performing translation, etc. in a
secure environment. F2 also supports more advanced AI methods in case handling
and thereby increases efficiency, quality, and speed.
F2 is a highly flexible digital platform that 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 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
changes 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 like a sheet in a spreadsheet, and the process sheet is stored
separately from the basic F2 standard software. It is, therefore, possible, seamlessly,
and fully automated, to upgrade F2 to new versions, regardless of how extensive F2
has been configured.
20 | Annual Report | 2024
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.
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, 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 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 differentiates itself by being fully integrated with F2 and designed
specifically for government use
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.
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.
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 and compliance.
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.
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 a highly 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 genuinely 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.
The F2 Service Builder has already proven to be a pivotal tool within the F2 ecosystem
of partners. cBrain continuously enhances its functionality through close collaboration
with customers and partners.
21 | Annual Report | 2024
Paperless eGovernment in
weeks, not years
Danish ministries run on an F2-based solution which has been defined and configured to
support ministries working paperless, supporting all workflows and all employees, from
youngest staff to minister and government executives.
In the autumn of 2024, the Danish government announced three new ministries: The
Ministry of Resilience and Preparedness, The Ministry of Elderly Affairs, and The Ministry
of Green Tripartite Affairs.
For all 3 new ministries, the F2 Digital Platform was installed, configured, and ready to go
live within only 3 weeks.
Only a very few ministries in the world work paperless. Delivering a complete digital
platform for a federal ministry within only 3 weeks is unheard of within the IT industry.
The ministerial projects thereby demonstrate the power of COTS for government
solutions.
COTS for government, leveraging new technologies and platforms such as the F2 Digital
Platform, enables digital transformation at higher speed and lower cost that outperforms
traditional IT modernization projects. Using traditional software solution architectures,
digitizing an entire ministry normally takes years and often fails. In contrast, the F2
platform offers a complete, easily configurable solution that enables fast-track digital
transformation.
Bringing COTS
software for government
to the world
Case
22 | Annual Report | 2024
Customers and Growth Plan
F2 is a proven solution
Today more than 75 Danish government organizations, including 21 of 24 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 use across five
continents, including Egypt, France, Germany, Ghana, Guyana, Kenya, Nigeria,
Romania, Thailand, Ukraine, the United Arab Emirates, the UK, and the USA.
The cBrain business model is highly scalable
Adopting standard software based on COTS for government represents a disruptive
and game-changing approach. By adopting standard software instead of custom-built
solutions or a best-of-breed approach, a significant portion of the IT work related to
digital transformation can be eliminated.
This offers government entities substantial business benefits through cost and risk
reductions, faster delivery, and accelerated digital transformation. In addition, it
challenges the traditional IT consulting industries, which 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.
Due to the F2 product and partner strategy, the business model is international and
highly scalable. Based on generic government principles and the Digital Bureaucracy
model, the F2 digital platform has proven itself to support governments across the
world.
Growth plan
cBrain is executing its international growth plan, anchored in two primary revenue
streams, referred to as “Base” and “Steppingstones.”
The “Base” stream aims to achieve annual revenue growth of 10-15% by strengthening
and expanding existing operations and customer relationships.
In parallel, the “Steppingstones” initiative aims to lift annual revenue growth to a
significantly higher level by increasing contract values and winning larger international
contracts.
With this development, we expect international revenue to exceed domestic revenue
in a few years.
cBrain continues to execute its growth strategy, supported by a growing number of
international pilot projects that set the stage for significant “Steppingstones”
achievements and build a robust pipeline of opportunities. This includes pursuing
global opportunities across the USA, Europe, Africa, the UAE, and India. In parallel,
cBrain continues to build a strong reference position in the Danish home market.
The growth plan is based on organic growth. cBrain delivers solid growth and earnings
with a strong positive cash flow, financing its business without needing loans.
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 scale its business further while
generating a solid and stable subscription-based business.
cBrain is building an ecosystem of international partners who offer government digital
transformation by leveraging the F2 standard software. This allows cBrain to 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 the use of legislation and financial incentives, politicians have an
extraordinarily powerful toolbox. However, political decisions must be implemented
by strong and accountable institutions. Therefore, 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.
23 | Annual Report | 2024
More than 75 Danish government organizations, including
21 of 24 ministries, use F2 as their digital platform
24 | Annual Report | 2024
Climate software means the speed of action.
In November 2020, the Danish Parliament adopted new legislation to remove
carbon-rich farmland from production. By February 2021, the Danish Environmental
Protection Agency (Danish EPA) had run the first round of the 300m Euro program.
This program is now being scaled to achieve the Government's ambitious goal.
The Danish farmland program can potentially reduce CO
2
emissions by up to 20%.
Using government climate software, the Danish EPA achieved fast-track execution,
and by executing within months instead of years, the 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 worldwide, and
Denmark has a strong tradition of sharing best practices with other countries.
As an example, a solution designed for the Danish EPA was replicated and deployed
by the 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.
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 with the 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 an 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 platform and best practices
This means happy users and a 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.
This is quite different from standard software. All government organizations that use
F2 are regularly 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.
With the F2 standard platform and best practices, cBrain offers users continuous
access to new and upgraded software versions. The F2 standard software can be
adapted to changing user requirements by easily re-configuring custom-specific
processes and system setup independently of upgrades.
By relying on a COTS for government approach, a future legacy burden can be
avoided.
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 the reuse of standards drives and
accelerates changes. However, to ensure a successful transformation, organizational
readiness must be taken into account. Therefore, the F2 Implementation Method is
based on transformation waves.
25 | Annual Report | 2024
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.
26 | Annual Report | 2024
Partnering in Romania
During 2024, cBrain Romanian partner Wing Lead Edge delivered their first F2-based
solutions for government customers in Rumania.
Fueled by the power of COTS for government, tools like the F2 Service Builder offer
partners a fast and low-risk route to configure the F2 digital platform to support
individual government processes.
By the end of 2024, cBrain Romanian partner Wing Lead Edge has won a large tender
to modernize the national pension system in Romania.
cBrain views the pension project as a milestone for the F2-for-Partners strategy.
Using the F2 Digital platform and building multiple processes, to support Rumanian
citizens and pension staff with the F2 Service Builder, demonstrates the power of
COTS for government.
Bringing COTS
software for government
to the world
Case
27 | Annual Report | 2024
12 ways
COTS for Government
Has Accelerated
Responsible Use of AI
28 | Annual Report | 2024
Risk Management
Three strategic initiatives primarily drive the COTS software for
government strategy and growth plan:
Continued growth through the digitization of mission-critical business processes,
leveraging cBrain methods and the standard F2 platform for government (F2
“classic”).
Enhanced positioning and growth through solutions for Climate Governance.
Development of the F2 ecosystem through the establishment of partnerships.
1. Decline in demand
Cause
The geopolitical situation, war in Europe, political instability, risk of inflation, and
scarcity of energy combined with rising prices preoccupy politicians and society can
draw investment away from streamlining and modernizing the public sector through
digitizing.
Risk
That cBrain fails to deliver on the growth expectations in the strategy and loss of key
customers.
Mitigation
Sharpening cBrain’s value proposition to customers so that it becomes even more
attractive to customers. This applies, for example, to speed and precision in delivery,
Probability
Despite signs of worldwide crisis, the public sector has an undiminished need for
increased efficiency and to meet citizens’ expectations. The climate agenda and the
need for action seem obvious despite the US withdrawal from the Paris Agreement.
For both conditions, digitizing is a key element, which is why the likelihood of a
weakening demand is not expected to be exceptionally large.
Reduction of risk for the customer through agile implementation, where the solution
is configured rather than coded, and a strong price/performance ratio.
1
2
3
4
5
6
Probability
Financial impact
Low
High
Low
High
1
2
3
4
5
6
Decline in demand
Cyber Attack
Fail to
retain and attract
talent
Fail to build
an
F2 ecosystem
Competitors build standard
platform similar to F2
Legal risks entering new
geographical markets
29 | Annual Report | 2024
2. Cyber Attack
Cause
The number and scope of cyber-attacks are increasing. cBrain delivers mission-critical
solutions to the public sector and is thereby exposed.
Risk
Cyber-attacks, including breaches of confidentiality through unauthorized access to
networks and data and taking control of customers’ data, pose an increased risk to
cBrain’s reputation as well as finances.
Mitigation
cBrain’s development and product strategy is based on controlling the value chain
itself. The standard platform F2 is developed by highly educated and trained software
engineers with a focus on the world market. Generic concepts, independence, and
security are deeply embedded. Offshoring is not used.
cBrain’s processes are certified as ISO 27001 and all cBrain’s processes with personal
data are annually reviewed and assessed by an external audit firm, which issues ISAE
3000 and 3402 statements to customers. cBrain will be NIS2 compliant before June
30, 2025.
The CTO monitors, supported by the security officer, on an ongoing basic threat level
and makes sure that appropriate means are implemented. An ISO and ISAE
Management Review Team consisting of the COO, CTO, CFO, CSO, the director for
Service and Operations, and the security officer meet on at least a quarterly basis to
oversee and evaluate policies and procedures.
This is also addressed in the section “Sustainability” under ESRS S4 – Customers and
end-users.
Probability
The likelihood of cyber-attacks is increasing in general, and the public sector will
increasingly be considered a target.
3. Fail to retain and attract talent
Cause
cBrain’s business is based on skilled, talented, and resolute employees. cBrain’s growth
strategy requires a continued influx of new skilled employees and the development of
existing employees. It is vital to maintain and further develop cBrain’s unique DNA and
position, which together define cBrain’s mission: to be a trustworthy partner in the
development of sustainable, responsible, and transparent public administrations and
thus increase trust in democracy and its institutions.
Risk
A weakening of cBrain’s culture and DNA, including its strong innovative power, could
lead to the loss of employees. A failure to develop cBrain’s reputation in the market
and educational institutions could lead to challenges in attracting talent.
Mitigation
cBrain’s management is very aware of the value of the cBrain culture. The new
domicile, a new strategy that is broad and deeply anchored in the organization,
leadership training and coaching, continuing intensive method development, well-
developed onboarding processes, and a strong focus on a healthy work-life balance
are key elements in addressing this risk.
Combined with reinforcing cBrain’s narrative and value proposition to the market as
an actor that takes the climate agenda and builds strong, responsible public
organizations seriously, it contributes to a strong and attractive identity. Furthermore,
the partner strategy can help meet the challenge of securing sufficient resources.
This is also addressed in the section “Sustainability” under ESRS S1 – Own Workforce.
Probability
The battle for skilled employees is tough, but cBrain is well prepared.
30 | Annual Report | 2024
4. Fail to build an F2 ecosystem
Cause
A central element in cBrain’s growth strategy is to establish partnerships with
customers, IT consulting companies, management consultancy firms, and NGOs. By
providing methods, knowledge, and tools together with the F2 standard platform and
building an F2 ecosystem, cBrain wants to increase outreach and at the same time
make it possible for customers to increase focus on the digital transformation of the
organization and its business processes.
Risk
That cBrain fails to market and deliver a sufficiently well-developed concept and
“infrastructure” around partners. That cBrain’s value chain is not strong enough to
support an ecosystem.
Mitigation
Since 2022, cBrain has invested heavily in organizational capacity and thereby gained
a strong foothold for executing the strategy. The launch of F2 Service Builder in June
2023, the announcement of the integration of AI in August 2023, and the release of
the comprehensive version 12 of F2 have increased interest in the market thereby
lowering the risk of failing to build the F2 eco-system. Still work to be done, but the
willingness to invest in the continued development of methods, tools, and
competencies is extremely high, and top management is highly committed.
Probability
The probability that cBrain fails to build the foundation for an F2 ecosystem and to
onboard partners within the strategic window is present, but it is regarded as low to
medium based on the management’s commitment and ability to execute.
5. Competitors build standard platforms similar to F2
Cause
cBrain regards the establishment of standard platforms targeting the public sector as
a natural development of industries, as all industries standardize over time. Fueled by
a lack of skilled IT resources and a growing demand for fast delivery, cBrain expects a
rapidly emerging IT industry, referred to as COTS for government. This means that
similar platforms will show up over time.
Risk
When more players start building standard platforms that are targeted and dedicated
towards the public sector, cBrain will be exposed to increased and direct competition
and thus lose some of the unique positions cBrain has in the market.
Mitigation
Through continued intensified and targeted investment in R&D and in positioning to
maintain the lead, which lies partly in methods, partly in the standard platform, and
the tools used to configure and onboard business processes in F2’s process library. As
cBrain began the development of the platform more than 15 years ago, cBrain has a
considerable advantage.
Probability
It must be expected that standard platforms for government will be developed by
other vendors in the market and thereby increase competition.
6. Legal risks entering new geographical markets
Cause
cBrain is increasingly entering into new markets, where business and commercial
conditions are different and sometimes challenging.
Risk
cBrain fails to foresee and mitigate those risks including compromising cBrain’s values
and culture and thereby facing reputational and financial risks.
Mitigation
cBrain has developed and implemented policies and processes for due diligence and
ethical issues. Increased attention from the audit committee.
This is also addressed in the section “Sustainability” under ESRS G1 – Business
Conduct.
Probability
Below medium due to strong culture, education and training, proper process, and
management awareness.
31 | Annual Report | 2024
Shareholders
32 | Annual Report | 2024
Shareholder Information
Stock Information
cBrain’s share capital consists of 20 million shares with a nominal value of DKK 0,25
each. The company’s shares consist of only one share class, and each share thus holds
one vote and the same rights.
The company’s articles of association do not limit ownership and voting rights. Shares
must be registered by name. The share’s short name is CBRAIN, registered under the
ISIN code DK0060030286.
Additional information on shareholder relations and comprehensive information about
the group can be found on cBrain’s website at www.cbrain.com/investor.
Ownership
As of the end of 2024, cBrain has approximately 13.200 shareholders from 41
different countries (in 2023, there were around 14.700 shareholders from 40
countries). Fund ownership increased by 38% in 2024.
The following shareholders have informed cBrain that they own 5% or more of the
company’s share capital:
Putega Holding ApS, Hellerup, holds 41,70% (2023: 42,66%) ownership and
voting interest.
cBrain A/S owns 437.187 of its shares at the end of 2024, equivalent to 2,19% of the
share capital.
Dividend Policy
The ordinary Annual General Meeting approves dividends. cBrain aims to maintain a
strong financial position aligned with the company’s activity level, ensuring the
Proposal for the Annual General Meeting can uphold its strategic goals, including
continued investment in new products and markets.
Management continuously assesses the company’s capital needs based on its results
and proposes dividend recommendations to the Annual General Meeting.
Investor Relation
cBrain has defined quality, continuity, and consistency as the goals for its Investor
Relations (IR) activities. Simultaneously, within the framework of the law, the
company aims to engage in an open and active dialogue with existing and potential
shareholders, analysts, and other stakeholders interested in the company’s business
development and financial position. During 2024, cBrain intensified the dialogue with
the market and was present at roadshows in the UK, Germany, Sweden, and Denmark.
All information potentially significant to stock price formation is disclosed via Nasdaq
and can be found promptly on the company’s website. Interested investors can
subscribe to stock exchange announcements and other news on the company’s
website, www.cbrain.com/investor. All relevant information will always be accessible
through the website.
cBrain’s management is pleased to participate in investor and shareholder meetings
where previously disclosed information can be elaborated upon and discussed.
Inquiries regarding the company’s investor relations and stock market relations can be
directed to: Ejvind Jørgensen, CFO & Head of Investor Relations (phone: +45 7216
1811, e-mail: ir@cbrain.com).
Proposal for the Annual General Meeting
Due to cBrain’s satisfactory performance, the board recommends the Annual General
Meeting to increase the dividend by +129%. This would raise the dividend from DKK
0,28 per share in 2023 to DKK 0,64 per share in 2024. Furthermore, the board
proposes that the company be authorized to acquire its shares for one year,
representing up to 10% of its share capital.
Annual General Meeting
The company’s Annual General Meeting will be held on Tuesday, April 29, 2025, at
16:00. The Annual General Meeting will take place at the company’s address:
Kalkbrænderiløbskaj 2, 2100 Copenhagen, Denmark.
33 | Annual Report | 2024
Financial Calendar 2025
April
29, 2025
Quarterly Announcement 1
st
quarter 2024
April 29, 2025
Annual General Meeting
August 21, 2025
Publication of the Interim Report
2024
November 5, 2025
Quarterly Announcement 3
rd
quarter 2024
February 19, 2026
Publication of
A
nnual
R
eport 2025
34 | Annual Report | 2024
Company Announcements and Press Releases
From January 1, 2024, until the publication of the 2024 annual report, cBrain has issued the following announcements.
and press releases to Nasdaq Copenhagen, which can 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
Aug 21, 2024
On track with Growth Plan
Aug 21, 2024
Correction: On track with Growth Plan
-
EBT margin of 24
-
30% is
maintained
Aug 26, 2024
cBrain continues to win market shares in Denmark
Oct 10, 2024
cBrain implements F2 for two new Danish ministries in just 3
weeks
Oct 28, 2024
cBrain lowers expected yearly revenue growth to 10
-
15%, but
maintains EBT margin of 24-28%
Oct 28, 2024
Correction: cBrain lowers expected yearly revenue growth to 10
-
15%, but maintains EBT margin of 24-30%
Nov 7, 2024
cBrain executes growth plan,
remaining on target
Nov 11, 2024
Scaling Climate Software Solutions in California
Nov 11, 2024
Correction: Scaling Climate Software Solutions in California
Nov 14, 2024
UNDP and cBrain Join Forces to Accelerate Africa’s Digital
Transformation
Nov 22, 2024
Elm and cBrain partner to Accelerate Government Digital
Transformation in the region
Nov 28, 2024
cBrain to Support Extended Producer Responsibility in Thailand
Dec 19, 2024
cBrain Wins the ESG Transparency Award 2024
Jan 20, 2025
cBrain
raises expected 2024 EBT margin to 30
-
32%
Jan 2
2
, 2025
New Danish Ministry implements F2
35 | Annual Report | 2024
Governance
36 | Annual Report | 2024
Corporate Governance
The Board of Director’s stance is that the primary objective is to ensure competent
and purposeful leadership and the interests of all stakeholders.
cBrain has a single class of shares, and the company’s articles of association contain
no limits on ownership and voting rights. The Board of Directors assesses that both
the share and capital structure are currently satisfactory.
If an offer is made to acquire the company’s shares, the Board of Directors, under the
legislation and the company’s stated policy, will approach this openly and
communicate the offer to shareholders along with the Board of Directors’ comments.
The Annual General Meeting is the company’s highest decision-making authority, and
the Board emphasizes that shareholders receive a thorough briefing on the matters
decided at the Annual General Meeting.
All shareholders are entitled to attend the company’s Annual General Meeting
provided they have requested an admission card. At the Annual General Meeting,
shareholders can pose questions to the board and management, and shareholders can
also submit written proposals for topics they wish to include on the agenda for the
Annual General Meeting in good time before the Annual General Meeting.
The Board’s stance is to maintain the Annual General Meeting as a physical event and
possibly expand it with virtual participation over time, which the Articles of
Association allow. A more detailed description of Annual General Meeting-related
matters can be found on the company’s website www.cbrain.com/general-meeting.
cBrain’s management continuously adheres to the recommendations for good
corporate governance, most recently updated in December 2020. You can find this
code at: www.corporategovernance.dk.
cBrain’s statutory corporate governance statement (the corporate governance
recommendations) can be found on the company’s website under Investor Relations:
www.cbrain.com/corporate-governance.
Various policies and procedures related to corporate governance, as well as charters
for board committees can be found there.
All employees receive yearly training and perform a test in the Code of Conduct,
security policy and procedures, and data ethics.
Statutory Gender Reporting under Danish Law
cBrain aims to have the highest possible degree of diversity and complementary skills
in employees and management groups, as we believe that it creates the basis for
more innovative and sustainable decisions and solutions.
A well-balanced workforce in terms of gender is essential.
The IT industry is characterized by significantly fewer women than men employed
overall.
Our policy is not to discriminate based on gender and to hire based on professional
qualifications.
Over several years, cBrain has systematically worked to achieve a more equal
distribution between the genders because diversity strengthens the company’s
competitiveness; cf. the company’s diversity policy.
Until an equal distribution is achieved, the underrepresented gender is chosen.
Therefore, the underrepresented gender is chosen consistently when two candidates
of each gender are equal with the competence profile defined for the
position/position in question until a distribution of at least 40/60 is reached for all
levels.
This approach has contributed to a good development in recent years, resulting in a –
to the industry – very satisfactory gender distribution. Thus, 40% (2023 43%) of
cBrain’s total workforce are women.
cBrain’s goal for management is to have an equal distribution between the genders in
management. When there is a change in or addition to the management, cBrain will
apply the same policy as for the rest of the company, namely that the
underrepresented gender is chosen consistently when two candidates of each gender
are equal with the competence profile that is defined for the position/position in
question, until a distribution of at least 40/60 is reached.
37 | Annual Report | 2024
Actual 2024
Target 2030
Board of Directors
Total number of members
5
Underrepresented gender in %
20%
40%
Executive Management (Level 1)
Total number of members
2
Underrepresented gender in %
0%
40%
Directors (Level 2)
Total number of members
4
Underrepresented gender in %
25%
40%
Total (Level 1 + 2)
Total number of members
6
Underrepresented gender in % 17%
40%
Managers (Level 3)
Total number of members
17
Underrepresented gender in %
35%
40%
Board of Directors
The board of directors consists of five members, one of whom is a woman. The board
aims for the underrepresented gender to constitute at least two people,
corresponding to at least 40%. In 2024, the share of the underrepresented gender
was 20%.
The board attaches great importance to continuity and finds no basis for expanding
the number of members currently due to the company’s size. The board will continue
its work to achieve this goal and has set 2030 as the target date.
Executive Management
Level 1 is the company’s registered management. At level 1, there are no women, and
thus the women make up 0%. The goal is to reach at least 40% by the end of 2030.
Directors
Level 2 is the management that reports directly to the company’s registered
management (level 1). By the end of 2024, one woman, equivalent to 25% of the
directors in cBrain. cBrain’s’ other levels of management (levels 1 and 2) consist of 6
members, with 17% being the underrepresented gender. The goal is to increase the
underrepresented group to 40% by the end of 2030.
Since there have been no natural changes, i.e., resignations or additions to other
management during 2024, we have not been able to progress further toward our
target of 40%. Therefore, we are committed to improvement. Management will
conduct assessments, facilitate internal dialogue, and collaborate with stakeholders to
implement targeted strategies to improve diversity and inclusion within the
organization. Through proactive initiatives and leadership, management will drive
efforts to make significant progress toward meeting diversity goals.
Managers
Level 3 comprises additional personnel entrusted with staff management duties.
By the end of 2024, 6 out of 17 equivalents to 35% represented women.
cBrain considers the development with the target figure to be satisfactory. Since
continuity in management is considered extremely important with the growth
strategy that has been laid, the company does not want to replace members of the
management until this becomes natural.
Management continuously assesses which measures are meaningful given the gender
composition of the management. When designing job profiles, emphasis is placed on
signaling diversity, which is also supported through the company’s management
training program.
In 2024, the work with job profiles continued and strengthened, and the leadership
training program was enhanced and supported via individual coaching. For the second
time, cBrain hosted a” Women in Tech Dinner” for computer science students at the
Technical University of Denmark (DTU). During this event, female students were
invited to a dinner with a specific focus on their experiences working as women in the
IT industry.
38 | Annual Report | 2024
Corporate Responsibility
Since 2018, cBrain has participated in the UN Global Compact, thereby endorsing the
UNGC’s Ten Principles. In this context, cBrain has identified SDG16—Peace, Justice,
and Strong Institutions—as a focus area. The focus on access to justice and building
effective, accountable, and inclusive institutions at all levels aligns with cBrain’s
mission.
In 2020, sustainability efforts were expanded to include SDG 13, Climate Action, and
SDG 17, Partnerships, as part of cBrain’s focus on developing Climate Software. Under
the heading ”Closing the time gap,” cBrain assists authorities in rapidly implementing
climate and environmental regulations through F2, thus accelerating the achievement
of intended outcomes.
Data Ethics
In 2021, the Board of Directors drafted and adopted a data ethics policy under section
99d of the Danish Financial Statements Act: www.cbrain.com/csr/policies. This policy
addresses the types of data used, how it is obtained and utilized, the basis for ethical
considerations, and the follow-up procedures.
This policy has contributed to increased awareness of data ethics in the product
development cycle and customer solutions' design and implementation process.
Management is responsible for data ethics, and the Audit Committee oversees its
implementation. The policy can be found on the company’s website under Investor
Relations: www.cbrain.com/corporate-governance.
The report on data ethics, as required by section 99d of the Danish Financial
Statements Act, is available here:
www.cbrain.com/corporate-governance/dataethicsreport-2024.
Tax Policy
cBrain developed a tax policy in 2019, which was last revised in 2021. Through this tax
policy, cBrain aims to elaborate and express the company’s stance on tax matters.
This is done by adopting a value-based approach, where principles and ethical norms
for the company’s behavior are expressed.
It is a conscious choice as it aligns with the company’s values, culture, and approach.
The policy serves as a guideline and reference point to steer the company in its
decisions. The complete tax policy can be found here:
www.cbrain.com/corporate-governance.
Climate and Environmental Policy
In 2023, the company developed a new Climate and Environmental policy, and during
that year, cBrain achieved an ISO 14001 certification.
The policy can be found here:
www.cbrain.com/s/Climate-and-Environmental-Policy.
Management
The Board of Directors and the executive management establish and approve
overarching policies, procedures, and controls related to the financial reporting
process. The executive management continuously monitors compliance with relevant
laws and regulations concerning financial reporting and informs the Board of Directors
accordingly.
The Board of Directors’ Responsibilities
The Board of Directors defines the company’s objectives and strategies and approves
the overall budgets and action plans. The Board exercises general oversight of the
company, ensuring that it is managed properly and in compliance with legislation and
articles of association.
The Board of Directors is primarily responsible for ensuring that cBrain has the
necessary procedures to manage the company’s risks and that these procedures are
effectively implemented.
The Audit Committee consists of two independent Board Members, and the scope of
the committee’s work is defined in a separate charter. The committee held four
meetings in 2024, with 100% attendance.
The remuneration committee consists of two members. In 2024, it held two meetings
with 100% attendance.
The Board of Directors’ work framework is defined in a set of rules and procedures,
which are reviewed at least once a year and adjusted as needed. The rules and
procedures include procedures for executive management reporting, the Board of
Directors' working methods, and a description of the Chair of the Board’s
responsibilities and areas of authority.
At least four Board of Directors Meetings are held each year, and the Board also meets
as required. In 2024, five Board Meetings were held, with 100% attendance.
39 | Annual Report | 2024
Composition of the Board of Directors
The company is governed by a Board of Directors consisting of five members elected
by the Annual General Meeting, two of whom are independent.
At the annual general meeting in 2023, it was decided to change the election period
to one year from then on.
At cBrain’s Annual General Meeting in April 2024, Peter Loft, Thomas Qvist, and Per
Tejs Knudsen were reelected to the board for one year. Peter Loft is independent.
The composition of the Board of Directors, including Board Committees, is chosen to
ensure continuity and representation of key competencies for cBrain. The goal is to
secure the company’s ongoing development and achieve its long-term objectives.
The Board of Directors has experience and expertise in strategy, innovation,
management, technology, finance, law, social development, and the public sector.
The independent Board Members have broad experience in management and board
work, including at publicly traded companies.
Remuneration for the Board of Directors and Management
cBrain has established remuneration for the Board of Directors and Management at a
level reflecting the size and complexity of the company.
For the financial year 2024, the proposed total remuneration for the Board is DKK
410.000 (2023: DKK 350.000). The total remuneration for the executive management
in 2024 amounts to DKK 5,2m (2023: DKK 5,0m).
The distribution of remuneration for the Board of Directors and executive
management can be found on the company’s website under Investor:
www.cbrain.com/s/cBrain-Remuneration-Report-2024.
Stock Options and Incentive Programs
cBrain has, in prior years, provided certain employees with the opportunity to receive
remuneration in the form of shares under Danish Law (LL § 7P). In 2024, no
employees used this option. Please refer to note 8 - Staff costs for further details.
The Board of Directors continuously considers whether stock option programs can be
established for the employees.
Auditors
cBrain’s independent auditor is elected by the Annual General Meeting for one year at
a time. Before the recommendation for election at the Annual General Meeting, the
Audit Committee and, subsequently, the Board of Directors critically assess the
auditor’s independence, competence, and more.
During the audit of the annual report, accounting practices in the most significant
areas are also audited.
At the General Meeting in 2022, EY Godkendt Revisionspartnerselskab was elected as
independent auditors for the first time. EY was re-elected in 2024.
40 | Annual Report | 2024
Board of Directors
Henrik Hvidtfeldt, Chair
MSc in Engineering from the
Technical University of
Denmark, HD in International
Business from the
Copenhagen Business School,
and a Commercial Pilot. Chair
of cBrain (since 2006). Chair
of Flight4000 A/S. 62 years
old. Number of cBrain shares:
8.300.
Elected to the Board at the
Annual General Meeting in
2023 for a 2-year term. First
elected to the Board in 2006.
Henrik Hvidtfeldt is not
considered independent due
to the 12-year tenure limit.
Chair of the Remuneration
Committee.
Lisa Herold Ferbing, Vice Chair
Master of Laws (Cand.Jur.)
from the University of
Copenhagen in 1982.
Independent management
consultant, CEO of Casa
Monte Verde ApS, and
professional board member
(since 2013). Vice Chair of
DANSK IT. Chair of Gudme
Raaschou Investment Fund.
Chair of Lån & Spar
Investment Fund and KIA
Invest. Member of the Board
for Invest Administration A/S.
65 years old. The number of
cBrain shares: 0.
Elected to the Board of
Directors as an independent
member at the Annual General
Meeting in 2023 for a 2-year
term. First elected to the
Board of Directors in 2019.
Chair of the Audit Committee.
Peter Sam Loft
Master of Laws (Cand.Jur.)
from the University of
Copenhagen in 1980. Tax
advisor at Bachmann Partners
(since 2019). Adjunct
Professor at CBS/University of
Copenhagen. Member of the
Board for Øfeldt Centres. 67
years old. The number of
cBrain shares: 0.
Elected to the Board as an
independent member at the
Annual General Meeting in
2024 for a 2-year term. First
elected to the Board of
Directors in 2014. Member of
the Audit Committee.
Per Tejs Knudsen
CEO and founder of cBrain
A/S and Director of cProperty
ApS. Owner of Putega Holding
ApS. Master of Science in
Engineering from the
Technical University of
Denmark (DTU) and HD in
Accounting from the
Copenhagen Business School.
Member of the Advisory Board
at the Institute for Informatics
and Mathematical Modelling at
DTU. Member of the Council at
DTU. Member of the Danish
Academy of Technical
Sciences (ATV). 66 years old.
The number of cBrain shares,
through Putega Holding ApS:
8.532.000.
Elected to the Board at the
Annual General Meeting in
2024 for a 2-year term. First
elected to the Board in 2006.
Member of the Remuneration
Committee. As an executive,
Per is not independent.
Thomas Qvist
CTO at cBrain A/S. Director
and owner of Felida ApS.
Master of Science in
Engineering from the
Technical University of
Denmark. 59 years old.
Number of cBrain shares:
715.945.
Elected to the Board at the
Annual General Meeting in
2024 for a 2-year term. First
elected to the Board in 2006.
As an executive, Thomas is not
independent.
Executive
Management
Per Tejs Knudsen, CEO
Thomas Qvist, CTO
41 | Annual Report | 2024
Sustainability
42 | Annual Report | 2024
Introduction
cBrain is a one-product company serving government authorities and institutions
across five continents. The company provides F2, a standard software platform
tailored to the specific needs of the public sector. It is built on the philosophy of
being “100% standard software but highly configurable.”
Since 2018, Denmark has consistently been ranked as the number one country in
eGovernment in a UN global survey conducted every two years. At the same time,
Denmark ranks first in the Transparency International Corruption Perceptions Index.
cBrain is proud to provide F2 to 21 of 24 Danish ministries, over 45 Danish agencies,
and major municipalities like Copenhagen and Aarhus. This extensive presence in
Denmark allows cBrain to bring valuable best-practice insights on public sector
processes and digital transformation to clients worldwide.
Today, more than one-third of cBrain’s revenue comes from international markets.
The company is heavily investing in global expansion, with notable partnerships,
including the UNDP in Africa, Elm in Saudi Arabia, and a joint venture in India.
Since 2018, cBrain has supported the UN Global Compact’s Ten Principles and
actively engages with the Sustainable Development Goals (SDGs). Specifically, cBrain
has prioritized three SDGs that align with both the company’s strategy and its
commitment to positive global impact:
SDG 16: Strong Government Institutions
The core of F2 is the Digital Bureaucracy Platform, designed with a
deep understanding of bureaucracy, as described by philosopher Max
Weber. F2 ensures transparency, accountability, efficiency, and
documentation of decisions made. By implementing F2 and guiding the
digital transformation journey, government institutions establish a solid foundation for
effective, accountable, and inclusive administrations, supporting SDG 16.
SDG 13: Climate Change
Since 2019, cBrain has significantly invested in Environment, Energy,
and Climate. The company accelerates the implementation of climate
and environmental legislation, contributing to the reduction of
greenhouse gas emissions and the protection of biodiversity. As global
climate action requires urgent steps, cBrain is committed to accelerating the
transition from decision-making to execution. This aligns with SDG 13: taking urgent
action to combat climate change and its impacts.
To support the company’s growth, cBrain became ISO 27001 certified in 2017,
demonstrating our ability to manage all security aspects. In 2023, we renewed our
environmental policy. We achieved ISO 14001 certification, underscoring our
commitment to environmental stewardship and our role in contributing to positive
global development by helping clients and taking action internally.
SDG 17: Partnerships
Recognizing the importance of collaboration between the public and
private sectors, cBrain has focused on strengthening partnerships to
succeed in meeting SDG 13. As a result, SDG 17 has become central to
the company’s strategy. By rethinking its value chain and building
partnerships with clients, government bodies, industry organizations, and NGOs,
cBrain is scaling and accelerating initiatives to address climate and environmental
challenges. This focus on collaboration will continue to grow in the coming years, with
cBrain strengthening these efforts for lasting impact.
The implementation of the EU Corporate Sustainability Reporting Directive (CSRD)
Since 2018, cBrain has been reporting on Environmental, Social, and Governance
(ESG) factors in accordance with NASDAQ’s ESG Reporting Guide and continually
improving its reporting practices. The press has recognized our commitment to
transparency, and in 2024, cBrain was once again acknowledged as a frontrunner in
transparency within our sector.
Now, it is time for cBrain to take the next step. The Corporate Sustainability Reporting
Directive (CSRD) sets new and higher standards for disclosing a company’s
Environmental, Social, and Governance (ESG) performance, increasing transparency
around its impact on ESG-related matters relevant to its operations and value chain.
By aligning our reporting with CSRD standards, cBrain will provide stakeholders a
clearer understanding of our ambitions, progress, and initiatives in key sustainability
areas.
43 | Annual Report | 2024
While the CSRD is expected to become mandatory for cBrain in the financial year
2026, the Board of Directors has decided to begin aligning our reporting with the
CSRD framework starting in the financial year 2024 for several reasons:
We want to roll out the CSRD in stages, ensuring it is done correctly and with a
focus on the actual value it provides, balancing compliance with value generation.
The F2 platform, tools, and methods help governments close the gap between
political decisions and their execution, especially in environmental and climate
regulations. With F2, we can speed up the implementation of environmental and
climate policies, aiding society’s transition to necessary changes.
The F2 platform promotes transparency, which focuses on building stronger,
accountable institutions and democracy. As a corporate value, transparency and
trust are key drivers for cBrain.
We view the implementation of CSRD as a journey, much like corporate social
responsibility and corporate sustainability. By aligning our reporting to the CSRD
framework, we will sharpen our focus, strategy, and initiatives, delivering strong
business results that balance financial performance with ESG goals. Thus, we will
create sustainable outcomes for both our business and society. This is our
commitment to our stakeholders and the broader global community.
Our implementation began in the spring of 2024 with a preliminary double materiality
assessment. This included scoping the assessment, mapping the value chain,
identifying stakeholders, conducting impact, risk, and opportunity (IRO) assessments,
and analyzing and prioritizing the outcomes of our GAP analysis.
For the financial year 2024, we have chosen not to pre-implement the CSRD but to
align our reporting with key elements of the CSRD framework, including topical
standards and references in the ESRS standards to our reporting, while
acknowledging that we do not report on all paragraphs under the relevant topical
standards.
Ejvind Jørgensen
CFO & Head of Investor Relations
44 | Annual Report | 2024
AI and permitting climate
software is a door opener in the
US government market
Across continents, slow public case processing holds back sustainable energy
transformation, and speeding up environmental permitting is essential to fighting climate
change.
In close collaboration with the Danish EPA, cBrain has built a COTS permitting solution
that utilizes AI to accelerate case processing. In June, the White House Council of
Environmental Quality singled out cBrain in their report to the United States Congress on
eNEPA (Digital environmental permitting), and cBrain shared a panel with the CEQ
Permitting Director at Denmark’s Sustainability Day during the United Nations General
Assembly.
COTS for government software enables fast-track digital transformation. In California,
cBrain has successfully launched a new process to certify Sustainable Cannabis
Production in just a few weeks and is expanding our geographic reach by welcoming new
customers to our Sustainable Land initiative solutions, which serve more Resource
Conservation Districts in the state.
Case
Bringing COTS
software for government
to the world
45 | Annual Report | 2024
General information
Basis for preparation
BP-1 General basis for preparation of sustainability statements
Our approach has been to implement as many of the relevant CSRD standards as
possible in our 2024 sustainability reporting and incorporate them in the 2024 annual
report as a separate section to the management’s review.
The Sustainability reporting has been prepared on a consolidated basis, consistent
with cBrain’s financial statements. The reporting period covers the period January 1 –
December 31, 2024.
As detailed in our reporting, our preliminary double materiality assessment covers
impacts, risks, and opportunities across our upstream and downstream value chains.
No information related to intellectual property, know-how, or innovation results has
been omitted. Additionally, cBrain has not used any exceptions to disclose impending
developments or ongoing negotiations.
BP-2 Disclosures in relation to specific circumstances
For the 2024 reporting period, we have structured our sustainability disclosure to
align with CSRD, implemented through the ESRS. These changes include:
cBrain’s sustainability reporting has been incorporated into the annual report and
structured to comply with the ESRS requirements.
We have conducted stakeholder interviews to ensure that relevant stakeholders’
opinions are included in our preliminary double materiality assessments.
We have conducted a preliminary double materiality assessment in line with
ESRS to identify material impacts, risks, and opportunities across our operations
and value chain, including upstream and downstream.
New disclosures and metrics have been introduced in compliance with ESRS
requirements, including expanded reporting on Greenhouse Gas (GHG)
accounting.
Governance
GOV-1 The role of the administrative, management and supervisory bodies
Board of Directors
The Board of Directors defines cBrain’s sustainability vision and approves the annual
sustainability reporting incorporated in the annual report. The board includes two
executives and three non-executive members, two of whom are independent. The
board has a diversity target for women of 40%, which is described in the
management review in this report. All members have relevant experience in our
sectors and regions.
Audit Committee
The Audit Committee oversees and follows up on cBrain’s risk processes, including
the management of environmental, social, and governance (ESG) risks and strategies,
and reports to the Board of Directors.
The Audit Committee is composed of two non-executive members with financial and
tax expertise.
Executive Management
The Executive Management is responsible for cBrain’s ESG performance and
approves the ESG objectives and strategies.
GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
Sustainability Board
The Sustainability Board is comprised of members from different departments,
including Climate & Sustainability, HR, Finance, and Compliance. The board is chaired
by the CFO and steers the sustainability agenda and progress against cBrain’s
sustainability targets. The Sustainability Board provides quarterly updates to the Audit
Committee and Executive Management.
46 | Annual Report | 2024
Sustainability Governance
47 | Annual Report | 2024
GOV-3 Integration of sustainability-related performance in incentive scheme
Executive management's variable remuneration is not fixed and may vary annually
based on KPIs, including the growth plan execution, financial results, market
conditions, organizational performance, and sustainability goals.
In 2024, executive management received a discretionary variable cash bonus, partially
based on cBrain’s positioning efforts in the U.S. regarding permitting and achieving
the ESG Transparency Award 2024 during the European Sustainability Week held in
Bonn, Germany.
No additional sustainability-related incentives are currently implemented at other
levels.
GOV-4 Statement on due diligence
cBrain performs due diligence activities relating to people and the environment. The
table below outlines the specific processes and activities related to this sustainability
reporting.
Core elements of environmental
and social due diligence
Activities related to our
reporting
reporting
a) Embedding due diligence in governance,
strategy and business mode
We have integrated due diligence into our
governance and business strategy to ensure
sustainability is central to our decision-making.
b) Engaging with affected stakeholders in all key
steps of the due diligence
We have actively engaged with stakeholders to
gather feedback and address potential impacts
throughout the due diligence process.
c) Identifying and assessing adverse impacts
We have assessed environmental and social risks
to understand their potential effects and prioritize
actions accordingly.
d) Taking actions to
address those adverse
impacts
We have implemented corrective and preventive
measures to manage identified risks and mitigate
negative impacts.
e) Tracking the effectiveness of these efforts and
communicating
We have monitored the
effectiveness of our
efforts and report transparently to ensure
accountability and continuous improvement.
GOV-5 Risk management and internal controls over sustainability reporting
Sustainability reporting is subject to the risk of material misstatement due to
incomplete data and human errors. To manage this risk, we have implemented various
processes.
The Sustainability Board, led by the CFO, holds quarterly meetings to address ESG
risks. To minimize reporting errors, the board has implemented several processes in its
internal controls over sustainability reporting.
Our environmental GHG emissions are compared to those of similar organizations
during the preparation process for fluctuations.
Strategy and business model
SBM-1 Strategy, business model and value chain
cBrain's long-term growth strategy is driven by a vision to provide standardized
software solutions for governments worldwide. Our success in Denmark, where 21 out
of 24 ministries, over 45 agencies, and major municipalities like Copenhagen and
Aarhus rely on our technology, positions us as a leader in public sector digital
transformation. This strong foundation enables us to share best practices with
governments globally.
COTS software offers a faster, more efficient alternative to custom-built IT solutions,
reducing costs and risks. While governments have traditionally been cautious,
successful implementations, such as cBrain’s F2 platform, now used by nearly all
Danish ministries and over 75 government organizations—are accelerating adoption
worldwide.
Developed with over 450,000 hours of investment, the F2 platform is a fully
integrated, no-code/low-code system tailored to government needs. Supporting
diverse sectors across multiple continents, F2 is redefining digital transformation in
the public sector.
cBrain is headquartered in Copenhagen with offices in Europe, the USA, the UAE,
Kenya, and Senegal; cBrain has a team of 220 employees (headcounts December 31,
2024) dedicated to driving innovation. We believe in democracy and see digitization
as a key enabler of more transparent, efficient, and resilient government institutions.
48 | Annual Report | 2024
Government Climate Software
Through digitization, cBrain plays a critical role in helping governments accelerate
their climate goals, bridging the gap between political intent and action. Our climate
software mission is clear: We want to use digitization to close the time gap from
political decisions to execution.
Our climate software has driven meaningful impact across regions and challenges:
Combating water and air pollution in Denmark
Advancing circular economy efforts in Kenya
Protecting endangered species in the Amazon
Promoting energy efficiency in Denmark
Supporting sustainable land use in California
Leading reforestation initiatives in Denmark
Our stakeholders
We engage with our stakeholders through regular communication, feedback
loops, professional development opportunities, and sustainability initiatives.
This approach ensures mutual value creation, fosters trust, and drives
sustainable growth for both cBrain and our stakeholders.
SBM-2 Interests and views of stakeholders
Engaging with stakeholders is key to cBrain’s value creation and long-term success.
Their insights shape our strategy for developing and providing COTS for government.
Through continuous dialogue with both internal and external stakeholders, we ensure
that we remain aligned with evolving needs and challenges while fostering a
collaborative environment.
Our stakeholders include a wide range of groups, from clients and employees to
investors, suppliers, partners, and regulatory authorities. These diverse groups play an
integral role in shaping cBrain’s business model, and guiding decisions related to
product development, sustainability, and strategic growth. Below is an overview of
how we engage with each group and the outcomes that drive our business forward:
The table below outlines our engagement with key stakeholders, its purpose, and its
outcomes. These insights inform our due diligence and material assessment.
Key Stakeholders Engagement and Purpose Outcome
Customers
Gather feedback on product
needs and expectations to
enhance our product and
alignment with public sector
needs.
Improved our software
product’s relevance and
client satisfaction, including
both government case
workers and citizens (end-
users).
Civil society and end
-
users
Self
-
service solutions and
transparency
Ensure quality and
accessibility
Employees
Foster a meaningful
workplace and support
professional development.
Higher engagement and
alignment with cBrain’s
mission.
Investors
Communicate business
performance and
sustainability goals.
Increased transparency, ESG
ratings, and investor
relations.
Suppliers
Ensure responsible sourcing
and sustainability alignment.
Adherence to cBrain’s
conduct standards.
Partners
Initiated
international
business based on organic
growth, building the
business by addressing
international customers
directly or in collaboration
with local partners.
Strengthened partnerships
and supply chain resilience.
Regulators/Authorities
Maintain compliance and
alignment with regulatory
standards, including
sustainability and data
protection.
Ensured compliance with
regulations and enhanced
reputation.
49 | Annual Report | 2024
Materiality assessment process
IRO-1 Description of the process to identify and assess material impacts, risks and
opportunities
In 2024, cBrain conducted its first materiality assessment in accordance with ESRS
requirements, starting with an analysis of its business relationships, value chain, and
impacted stakeholders to identify relevant sustainability issues. This process involved
identifying and objectively assessing impacts, risks, and opportunities (IROs) to
inform materiality decisions, resulting in a comprehensive preliminary double
materiality assessment (DMA).
Key stakeholders, including employees, customers, and suppliers, contributed insights
into sustainability matters and helped identify and score IROs. Each sustainability
matter was further reviewed through interviews with designated stakeholder
representatives, focusing on identifying IROs at a sub-topic level.
Our materiality assessment was conducted in line with the requirements of ESRS 1,
applying the principle of double materiality, which includes:
Impact Materiality: Evaluates the scale, scope, irremediability, and likelihood of
impacts (both positive and negative, actual and potential).
Financial Materiality: Assesses the financial magnitude of risks and opportunities,
the likelihood, and the nature of their financial effect.
A sustainability matter was considered material if at least one Impact, Risk, or
Opportunity (IRO) exceeded the threshold, indicating either impact materiality,
financial materiality, or both. Non-material sustainability matters were those with no
identified IRO or where all IROs fell below these thresholds.
Critical decisions included identifying stakeholder representatives, scoring IROs, and
the final assessment of sustainability matters, which was completed in a workshop
with stakeholder input. A sustainability matter was deemed material if identified by a
stakeholder and had an associated IRO, with each IRO documented along with its
basis for materiality.
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability
statement
For the financial year 2024, we have chosen not to pre-implement the CSRD but to
align our reporting with key elements of the CSRD framework, including topical
standards and references in the ESRS standards to our reporting, while
acknowledging that we do not report on all paragraphs under the relevant topical
standards.
Due to our preliminary double materiality assessment, certain disclosure requirements
(E2, E3, E4, E5, S2, and S3) are not material to cBrain’s business operations and
sustainability reporting. While these areas are not material, we will continue to
monitor them as part of our ongoing sustainability assessment. Should our business
activities evolve, including expansion into new operational geographies, service scope
changes, or stakeholder expectations shifts, we will re-evaluate these topics to
determine whether they warrant inclusion in future reports.
E2 Pollution: Our operations as a software developer do not involve significant
pollution risks or emissions beyond minimal office-based activities. Currently, no
material pollution-related impacts or dependencies are linked to our operations.
E3 Water and Marine Resources: Our data center employs a water-free cooling
system, ensuring that our operations do not rely on industrial water usage or directly
impact marine ecosystems.
E4 Biodiversity and Ecosystems: Our activities do not directly interact with or impact
biodiversity or ecosystems. Our office-based work does not involve land use or
development in areas with significant biodiversity or ecological considerations.
E5 Resource use and circular economy: We focus on optimizing digital resources and
minimizing waste. Our business model does not heavily engage in circular economic
practices, but we continue to monitor opportunities for reducing environmental
impact through efficient resource use and waste management.
S2 Workers in the Value Chain: Our core operations do not rely extensively on large
networks of value-chain employees.
S3 Affected Communities: Our operations do not have a significant physical
presence or direct impact on communities in a manner that would create material
social impact, risks, or opportunities.
50 | Annual Report | 2024
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
The material impacts, risks, and opportunities identified in cBrain’s materiality
assessment are outlined below and are also aligned with the ESRS topics: E1 Climate
Change, S1 Own Workforce, S4 Consumers and end-users, and G1 Business Conduct
within this sustainability reporting.
Direction
Time horizon
Upstream
Own operations
Downstream
Short-term
Medium-term
Long-term
E1 Climate
change
Carbon emissions from own operations
Carbon emissions from our operations have a
negative impact on climate change by increasing
greenhouse gases in the atmosphere, thereby
intensifying global warming.
Actual
negative
impact
•
• • •
S1 Own Workforce
Failure to sustain a strong DNA to attract and
retain talent
We view cBrain's unique culture and DNA as our
foremost competitive advantage in attracting and
retaining top talent and fostering organizational
strength and social cohesion.
Potential
negative
impact
•
• •
S1 Consumers and end
-
users
Enabling
easy
-
to
-
use
citizen
-
centric
digital
services increases transparency and faster
response
Potential
positive
impact
• • • •
G1 Business
Conduct
Risk of bribery & corruption in high
-
risk regions
Certain areas of our current and potential
customers, especially those in regions with higher
risks of corruption, face increased vulnerability.
Our presence in these regions requires initiative-
taking measures to mitigate risks, especially when
engaging with government officials and during
initial payments or guarantee deposits, which are
often required in the tender processes in these
regions.
Risk
• • • • •
51 | Annual Report | 2024
Materiality Matrix
High
Low
High
E1
E3
Climate Change
Pollution
Water and Marine Resources
Biodiversity and ecosystems
Resource use and circular economy
Own workforce
Workers in the value chain
Affected communities
Consumers and end-users
Business conduct
E2
E1
E4
E5
S1
S2
S3
S4
E2
E3
E4
E5
S1
S2
S3
S4
G1
G1
52 | Annual Report | 2024
Environmental Information
ESRS E1 Climate Change
E1-1 Transition plan for climate change mitigation
cBrain aims to achieve climate neutrality by 2030. This objective reflects our
dedication to aligning business operations with the global goal of limiting warming to
1.5°C, as outlined in the Paris Agreement.
Progress towards this goal is already underway. In 2022, cBrain achieved carbon
neutrality for office electricity using solar energy and CO2 offsets. In 2023, this
commitment was extended to include a contribution to CO2 reduction for our flight
travels, and in 2024, we have further expanded to contribute CO2 reduction for 25%
of our total scope 1, 2, and 3 emissions. The next phase of our plan involves addressing
the remaining elements of our carbon footprint, with the goal of achieving carbon
neutrality across all Scope 1, 2, and 3 emissions by 2030.
Our transition plan is guided by the principles of our Climate and Environmental
Policy. It includes science-based emissions reduction targets that are aligned with the
Science-Based Targets Initiative (SBTi) methodology. These targets include direct
emissions from operations (Scope 1), indirect emissions from purchased electricity
and heating (Scope 2), and a broader range of indirect emissions from our value chain
(Scope 3).
To achieve these goals, cBrain is optimizing energy use across its operations and
prioritizing renewable energy sources where possible. When renewable solutions are
not yet viable, we are implementing carbon offsetting and contributing to CO2
reduction to ensure progress toward our net-zero target. Waste reduction is another
critical component of our strategy, focusing on improving disposal practices.
Partnerships with organizations like El Recycling for e-waste and eSmiley for food
waste monitoring support these efforts.
Our ISO 14001 certification provides a structured framework for implementing
sustainability measures, ensuring transparency, accountability, and continuous
improvement in our approach to climate change mitigation. Comprehensive data
collection is central to our plan, enabling precise carbon footprint analysis that
informs target emissions reduction initiatives.
ESRS 2 SBM-3 Material impacts, risks and opportunities
and their interaction with strategy and business model
Developing and delivering software globally requires office facilities and business
travel, making carbon emissions unavoidable.
Our materiality assessment identified the following potential impact on climate
change:
Material risks, impacts, and opportunities related to climate change
Direction
Time horizon
Upstream
Own operations
Downstream
Short-term
Medium-term
Long-term
Carbon emissions from own operations
Actual negative
impact
•
• • •
Carbon emissions from own operations
Carbon emissions from our operations negatively impact climate change by
increasing greenhouse gases in the atmosphere, thereby intensifying global warming.
E1-2 Policies related to climate change mitigation and adaptation
Our Climate and Environmental Policy, approved in 2023, outlines our commitment
to reducing environmental impacts in line with globally recognized standards. Guided
by the Science-Based Targets Initiative (SBTi) methodology, we aim to achieve
climate neutrality by 2030, focusing on energy efficiency, renewable energy sourcing,
and responsible waste management at our headquarters.
The policy covers key areas, including building operations, procurement, and mobility,
as well as setting measurable goals for each. It is guided by Standard Operating
53 | Annual Report | 2024
Procedures (SOPs). We adhere to the ISO 14001 standard to ensure systematic
improvement, transparency, and stakeholder trust in our environmental performance.
In 2024, we passed our first ISO 14001 external audit with no required amendments.
E1-3 Actions and resources in relation to climate change policies
To support our Climate and Environmental Policy, we have implemented targeted
actions and dedicated resources to achieve climate neutrality by 2030. Key actions
include optimizing energy usage, prioritizing renewable sources, and applying climate
compensation where renewable access is limited. We focus on waste reduction
through external onsite inspections of our waste disposal and responsible e-waste
disposal through partnerships, including with El Recycling. We also run internal
campaigns to minimize food waste, supported by eSmiley monitoring. All actions are
managed under our ISO 14001-certified system.
E1-4 Targets related to climate change mitigation and adaptation
The Science Based Targets Initiative (SBTi) provides a globally recognized framework
for setting ambitious, science-based emissions reduction targets that align with the
Paris Agreement.
As part of our ambition to achieve climate neutrality by 2030, we have aligned our
emissions reduction targets with the Science-Based Targets Initiative (SBTi)
methodology. However, due to the ongoing uncertainty regarding SBTi’s guidance on
including carbon offsets in Scope 3 target setting, we have decided not to submit our
targets for official validation currently and await the organization’s consultation
process to clarify its position in anticipation of updated guidelines.
Given that Scope 3 emissions account for the majority of our carbon footprint, the
lack of clear guidance on offset integration significantly impacts our target-setting
approach. While we will not seek formal validation at this stage, we remain fully
committed to setting and pursuing meaningful science-based emissions reduction
targets in line with SBTi principles and methodologies when it is clear.
E1-5 Energy consumption and mix
Our energy use primarily includes district heating and electricity. In alignment with our
science-based methodology, we aim to reduce our reliance on non-renewable energy
sources while integrating renewable energy options. This includes engaging our
suppliers at all offices to ensure our operations are supplied with renewable
electricity, adhering to the principles of additionality.
54 | Annual Report | 2024
Greenhouse Gas Emissions
tCO₂e
Note 2024
2023
2022
2021
2020
tCO₂e
Note 2024
2023
2022
2021
2020
SCOPE 1 GHG EMISSIONS 1
0
0
0
0
0
CO₂e COMPENSATION BOUGHT 7 8,5
13,2
0,0
0,0
0,0
District heating 12,5
12,0
59,0
50,0
27,0
Electricity, location-based
8,5
13,2
40,4
14,6
29,8
Electricity, market-based 0,0
0,0
40,4
14,6
29,8
Renewable energy purchased
8,5
13,2
0,0
0,0
0,0
SCOPE 2 GHG EMISSIONS 2
12,5
12,0
99,4
64,6
56,8
SHARE OF RENEWABLE ENERGY, % 100%
100%
0%
0%
0%
Other indirect emissions (scope 3) 3 GHG emissions, tCO₂e/mDKK 8
• Bistro 138,6
28,0
-
-
-
GHG emissions (location-based) 2,3
1,3
0,9
0,7
0,5
• Hosting center electricity 1,2
1,1
-
-
-
GHG emissions (market-based) 2,2
1,2
0,9
0,7
0,5
• PC, monitors, phones/tablets 138,6
-
-
-
-
Category 1: Purchased goods 4
191,9
29,1
0,0
0,0
0,0
GHG emissions, tCO₂e/FTE 9
Category 5: Waste 5
0,4
0,5
0,0
0,0
0,0
GHG emissions (location-based) 3,2
1,8
1,1
0,8
0,5
• Air travel 378,4
236,4
74,0
41,6
-
GHG emissions (market-based) 3,2
1,7
1,1
0,8
0,5
• Hotel stays 12,2
12,0
-
-
-
• Taxi 2,6
-
-
-
-
Energy Consumption, MWh 10
• Car 2,0
-
-
-
-
District heating
353,1
287,1
420,3
390,7
249,4
Category 6: Business travel 6
395,2
248,4
74,0
41,6
0,0
Electricity
183,9
167,9
294,8
284,7
279,7
SCOPE 3 GHG EMISSIONS 587,5
278,0
74,0
41,6
0,0
ENERGY CONSUMPTION, MWh 537,0
455,0
715,1
675,4
529,1
TOTAL SCOPE 1, 2 and 3 EMISSIONS 600,0
290,0
173,4
106,2
56,8
ENERGY CONSUMPTION, MWh/FTE 2,8
2,7
4,7
4,9
4,5
55 | Annual Report | 2024
Notes to the GHG emissions
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
Since 2018, we have reported on Scope 1 and 2 emissions. In 2022, we expanded our
reporting to include Scope 3 emissions from business travel (air travel) and electricity
usage from our external data center. In 2023, we further broadened our Scope 3
reporting by incorporating hotel stays and emissions from waste and food purchases.
In 2024, we aligned our GHG emissions reporting with the GHG Protocol, including all
significant emission categories. Additionally, we refined our methodology and
calculation methods for each category, as detailed below.
Note 1 - Direct GHG emissions (scope 1)
cBrain does not directly consume energy or operate company vehicles, so we have no
Scope 1 emissions.
Note 2 - Indirect GHG emissions (scope 2)
cBrain reports indirect greenhouse gas (GHG) emissions from purchased heat and
electricity in accordance with both market-based and location-based methodologies.
Market-based emissions reflect indirect GHG emissions based on procurement
choices, including contractual instruments such as Power Purchase Agreements.
Location-based emissions are calculated using national grid average emission
factors specific to each site’s geographic location.
Electricity consumption data, measured in kWh, is collected through Energinet, which
calculates cBrain’s CO₂e emissions based on its electricity usage.
Note 3 - Other indirect GHG emissions (scope 3)
Indirect emissions from our value chain are classified as Scope 3. cBrain has
conducted a preliminary materiality assessment of the fifteen categories defined by
the GHG Protocol and identified three as material. The remaining categories are
neither applicable nor lack sufficient data for accurate emissions calculations.
The data collection methods and emission calculation approaches are detailed under
each relevant category below.
Note 4 – Purchased goods and services (Category 1)
Category 1 includes cBrain's food purchases for our bistro, electricity consumption for
leased data storage, and purchase of computers, monitors, mobile phones, and
tablets.
§ Bistro
The largest suppliers provide data on purchases, accounting for 80% of the bistro's
total food purchases. The largest supplier provided CO₂e emissions data, while
emissions for other suppliers are calculated using Concito's "The Big Climate
Database v
ersion 1.2." CO₂e emissions for the remaining purchases are extrapolated
based on quantities. The remaining 20% primarily comes from our meat suppliers. As
a result, emissions from the bistro in 2024 are significantly higher than in 2023.
§ Hosting center electricity
Data on electricity used for leased data storage is obtained from invoices provided by
the supplier. The CO₂e emissions are calculated by multiplying the total usage by a
location-specific emission factor, as the energy mix at the data center differs from
that of the headquarters due to its different location.
§ PC, monitors, phones/tablets
The data on the number of computers, mobile phones, monitors, and tablets
purchased during the year is collected from invoices provided by suppliers. This data
is then multiplied by the corresponding manufacturer’s product-specific emission
factor for the entire product's lifetime.
The purchased technology has a 3-5 years lifespan, after which the used equipment is
sold for recycling, thereby contributing to more sustainable consumption (circular
economy). We recognize the products’ emissions at purchase, which can lead to
annual fluctuations.
Note 5 – Waste (Category 5)
§ Waste
Waste management primarily includes cardboard, paper, and food waste from the
Bistro. Data is obtained from Marius Pedersen’s self-service portal, tracking monthly
waste collections. CO₂e emissions are calculated using the GHG Protocol's "
waste-
type-specific" method, applying unique emission factors for each waste type and
treatment. Emissions for 2023 and 2024 are based on concrete calculations of waste
from the company’s emission factors for food waste and cardboard.
56 | Annual Report | 2024
Note 6 - Business travel (Category 6)
§ Air travel
The emissions for each flight have been calculated by obtaining information on all
registered flights during the reporting period. The distance for each flight was
determined using the online tool www.airmilescalculator.com, which calculates the
distance between points A and B using Vincenty's formula, including stopovers.
Flights were categorized as domestic, short-haul, long-haul, or international (between
non-EU countries) to account for emissions at different altitudes.
Additionally, the class type was considered when applying the appropriate emission
factor. The well-to-tank emission factor for each flight category was multiplied by the
distance and added to the flight'
s emissions, yielding the total CO₂e emissions for
each air travel.
§ Hotel stays
Data related to hotel stays, which includes the country, number of nights, and number
of rooms, are collected based on data from employees' reimbursement of hotel
expenses. The CO₂e-emissions are then calculated based on DEFRA’s country-
specific emission factors. For countries not included in DEFRA’s data set, the emission
factor was derived from www.hotelfootprints.org, as referred by DEFRA.
§ Taxi
CO₂e-emissions from taxi rides are calculated based on employees' reimbursement of
taxi expenses. The total price is used to estimate the number of kilometers driven in
each country, which is multiplied by an average emission factor per kilometer.
§ Car
Transport includes driving in the employees' own cars, where driving is conducted in
relation to cBrain’s activities, primarily to and from customers. Specific information on
car types and the fuel used, either electricity, diesel or petrol, has been obtained for
84% of the total distances driven to multiply the distance with the relevant emissions
Note 7 - CO₂e compensation purchased
cBrain receiv
es information about CO₂e compensation purchased directly from
suppliers.
Note 8 - GHG emissions based on net revenue
The total GHG emissions based on both location- and market-based approaches have
been calculated to net revenue using the following formula:
tCO
2
e emissions in total (location
-
or market
-
based)
Net revenue
Note 9 - GHG emissions based on FTE
The total GHG emissions based on both location- and market-based approaches have
been calculated to the number of FTEs using the following formula:
tCO
2
e emissions in total (location
-
or market
-
based)
Number of FTE’s
Note 10 - Energy consumption
The data used for the total energy consumption is the same data used for the CO₂e-
emission calculations. The total energy consumption is calculated by converting the
total district heating and electricity into the same unit (MWh) and adding them.
57 | Annual Report | 2024
E1-7 GHG removals and GHG mitigation projects financed through carbon credits
We remain completely neutral in emissions from our electricity consumption by
adding solar power to the grid through The 0-Mission, a program in which cBrain
subscribes to a solar park in Vandel near Vejle in Denmark.
To account for our Scope 3 emissions, we have chosen to focus our compensation
strategy on supporting the Danish National Carbon Budget by committing funds to
Klimaskovfonden for national afforestation projects. This decision reflects our shift
away from purchasing Clean Development Mechanism (CDM) carbon offsets
established under the Kyoto Protocol. While the preferable alternative would have
been to buy direct carbon credits, the reality is that the carbon credit market and its
associated technologies remain underdeveloped.
As a result, and in alignment with our commitment to real and effective carbon
emissions offsets and removal, a zero will appear in the Scope 3 offsets line of our
2024 GHG carbon accounts.
We continue to monitor developments in the carbon credit market and CO2 removal
technologies, positioning ourselves as early adopters of a mindset dedicated to true
CO2 reduction.
E1-8 Internal carbon pricing
We do not apply internal carbon pricing schemes in our business.
E1-9 Anticipated financial effects from material physical and transition risks and
potential climate-related opportunities
We have opted to exercise the phase-in allowance to omit the financial effects from
material physical and transition risks and potential climate-related opportunities
required in E1-9 risks and potential climate-related opportunities required in E1-9.
58 | Annual Report | 2024
Applied Software
for Government
59 | Annual Report | 2024
Social Information
ESRS S1 Own workforce
At cBrain, our employees are at the core of our success, playing a pivotal role in
maintaining our strong market position and driving the continuous development of
our business. As a knowledge-intensive, fast-growing company, attracting, retaining,
and developing top talent is essential to achieving our strategic goals.
We recognize our employees as our greatest asset and are committed to fostering a
work environment that prioritizes health, safety, and well-being. Investing in employee
development strengthens our organizational DNA, creating a dynamic and inclusive
workplace where everyone can contribute, grow, and reach their full potential.
Our approach to employee engagement is built on strong leadership, open
communication, and a culture of collaboration. We offer comprehensive training
programs, hands-on development opportunities, and ongoing feedback mechanisms
to ensure continuous professional growth. Additionally, we actively monitor
engagement and well-being through regular surveys, reinforcing our commitment to
a thriving and motivated workforce.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
cBrain’s growth strategy depends on a continuous influx of new talent and the
ongoing development of our existing teams. We must continuously nurture and
strengthen our unique organizational DNA to sustain our market position and remain a
trusted partner in developing COTS solutions for government software.
Our materiality assessment identified the following potential impact on our
workforce:
Material risks, impacts, and opportunities related to climate change
Direction
Time horizon
Upstream
Own operations
Downstream
Short-term
Medium-term
Long-term
Failure to sustain a
strong DNA to
attract and retain talent
Potential
negative impact
•
• •
Failure to sustain a strong DNA to attract and retain talent
At cBrain, our culture and DNA are key to attracting and retaining talent while
fostering organizational and social cohesion. Weakening our core values in product
innovation, customer focus, and workplace culture could lead to higher employee
turnover and impact business growth. Maintaining a strong reputation in the job
market and among educational institutions is also essential for securing future talent.
To mitigate this risk, we embed a strong people agenda in our business strategy,
focusing on leadership training, continuous method development, structured
onboarding, and work-life balance. We also remain committed to equal opportunities
and diversity as fundamental pillars of our culture.
60 | Annual Report | 2024
S1-1 Policies related to own workforce
We are committed to creating an ambitious yet fair and inclusive workplace, guided
by our CSR Policy, Code of Conduct, and key Human Rights, Diversity, and Fair Labor
Practices policies.
cBrain wishes to build long-term relations with employees and be a supportive
employer through a holistic view of our employees' different life phases and
situations.
Employee health and safety are highly prioritized, supported by our Global Health
Policy, which offers fitness and sports facilities at the headquarters as well as social
and sports clubs (incl. running, climbing, walking, badminton, basket, padel, board
games, etc.), ergonomic workstations, free annual vaccinations, along with regular
safety training. We also promote a healthy work-life balance through flexible work
arrangements. Moreover, our people have a high degree of autonomy in planning their
own work, and our low-hierarchy organizational structure encourages open dialogue,
innovation, and creativity.
We uphold a zero-tolerance approach to discrimination and harassment. According to
our policies, any discrimination based on race, gender, religion or beliefs, political
view, sexual orientation, social or ethnic origin, or other personal characteristics is
prohibited across all aspects of employment.
Harassment, including unwanted behavior of a sexual nature, is not tolerated, and
employees are encouraged to report any concerns to HR.
Diversity is a core value, as outlined in our Diversity Policy. We believe that a diverse
culture brings varied perspectives, and drives innovation, and our initiatives aim for at
least 40% gender representation in management by 2030.
Recruitment and promotion processes value diverse backgrounds and include factors
such as gender, age, educational background, experience, language, etc., ensuring an
inclusive workplace.
Our commitment to data security reflects the trust essential to our operations. Data
privacy is rigorously protected in line with international standards.
Furthermore, our employee policies align with global frameworks like the UN Guiding
Principles on Business and Human Rights, underscoring our dedication to ethical and
responsible business practices worldwide.
All policies are approved by the board of directors and overseen by the audit
committee.
S1-2 Processes for engaging with own workforce and workers’ representatives about
impacts
We know that personal influence in one's own work is crucial to employee
engagement. We are dedicated to relating openly with our employees on matters
affecting their well-being and perceived rights. We use structured and informal
channels, such as regular development meetings, one-to-one meetings with
managers, and team feedback sessions, to ensure that employee perspectives are
integrated into our decision-making. Our leadership, including HR, facilitates these
interactions, documenting feedback to address any issues at an executive level.
Our people policies encourage employees to share concerns without fear of
retaliation, and we have included courses in psychological safety as part of our Good
Communication program to maintain psychological safety through secure, open
communication.
We continuously assess and adjust our engagement processes based on employee
feedback and surveys, aligning our practices with organizational goals. For instance,
we conduct onboarding surveys, which enable us to monitor and increase job
motivation during the onboarding process. Yearly, we develop an employee data
analysis based on qualitative information from exit interviews to draw lessons and
identify focus areas for improvement and strengthening employee engagement and
retention.
S1-3 Processes to remediate negative impacts and channels for own workforce to
raise concerns
Employees are encouraged to speak freely and report any concerns or complaints
regarding harassment, suspected legal or financial misconduct, or other issues to their
manager, HR, or directly to any members of the executive management. This
mechanism provides a confidential way to report serious concerns, supporting our
commitment to securing a respectful and ethical workplace.
Where internal channels may not be suitable, employees can anonymously use the
whistleblower protection framework to ensure their concerns are addressed to the
audit committee chair.
61 | Annual Report | 2024
S1-4 Taking action on material impacts on own workforce, and approaches to
managing material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
In 2024, as part of our strategic focus, cBrain HR collaborated with an organizational
psychologist to identify and evaluate employee training initiatives that support our
organizational culture goals. Under the “Good Communication” initiative, we have
conducted internal team sessions such as High-Performance Teams, Master the
Difficult Conversation, become a Good Listener, and Create Psychological Safety.
These courses equip our employees to manage challenging conversations, build
active listening, and foster a culture where everyone feels comfortable sharing ideas
and feedback with colleagues, managers, customers, and partners.
Additionally, we have introduced the next phases of Good Communication, where
leaders and employees receive training in emotional intelligence, which will be a new
initiative in 2025. HR has launched “cBook for Managers,” which contains different
management tools, including stress handling, to help managers in their role and
support a healthy work environment, enabling them to identify early stress symptom
warnings.
S1-5 Targets related to managing material impacts, advancing positive impacts, as
well as to risks and opportunities
We conduct regular workplace assessments (APV) to gather feedback on working
conditions and ensure a safe, healthy environment. These assessments help identify
risks and improvement areas, with action plans shared with all employees. HR also
conducts an annual analysis covering hiring, terminations, leave, and exit interview
feedback. Additionally, surveys during onboarding help identify areas for
improvement and support management in optimizing the employee experience.
In 2018 and 2021, we conducted engagement surveys and workshops to assess the
work environment and overall job satisfaction. These insights help us continuously
refine our approach, and we are preparing an employee analysis for 2025. While we
are not a KPI-driven company, we take engagement survey results seriously and set
ambitious targets for key people metrics.
Our priority is achieving high response rates to ensure meaningful feedback. Surveys
are conducted anonymously to encourage openness, and the insights gathered drive
ongoing improvements in employee well-being while supporting cBrain’s growth and
innovation goals. This approach helps us balance employee well-being with business
performance.
S1-6 Characteristics of the Undertaking’s Employees
Headquartered in Denmark, cBrain operates in more than 10 countries across five
continents with a workforce of 220 employees (headcounts). In 2024, 19 employees
left, resulting in a 7% turnover rate.
We strive for a balanced workforce based on gender, age, and international
background. Our mix of permanent and temporary employees contributes to a
dynamic environment, blending the perspectives of experienced professionals and
early-career talents.
The IT industry is typically unevenly composed, with women representing less than
23% of the workforce in Denmark and its neighboring countries. At cBrain, women
make up 40% of our workforce, which is significantly above industry norms. We
believe gender diversity positively influences our working environment by fostering a
more balanced workforce cohesion, enabling innovation, and contributing to our good
business results.
The tables on the next page show details about the diversity and characteristics of our
workforce. cBrain has under 50 employees abroad, below 10% of its workforce, so the
table is not divided by country.
S1-7 Characteristics of non-employees in the undertaking’s own workforce
Our non-employees primarily include partners in regions, playing a key role in
expanding our market presence and bringing in key local competencies. While
operating independently, they are guided to uphold our ethical conduct and company
values and are included in all significant company strategic and social events. We
regularly assess our reliance on these non-employee roles to ensure alignment with
our strategic expansion goals, enabling a cohesive presence in new markets while
effectively managing associated risks.
S1-8 Collective bargaining coverage and social dialogue
cBrain’s employees are not covered by collective bargaining agreements. However,
Danish employees are well protected by the Danish Salaried Employees Act
(Funktionærloven) and Holidays Act, which protects employees to a high degree
through ambitious and fair standards for employment terms such as notice periods,
vacation, and working hours. Local law applies to employees outside Denmark, and in
some areas of employment, cBrain offers even better conditions than the law
requires.
62 | Annual Report | 2024
Diversity and characteristics of employees
FTE's
2024
2023
2022
2021
2020
Headcounts
2024
2023
2022
2021
2020
Gender diversity
Permanent employees
Male 113
95
87
77
70
Male
137
87
80
68
65
Female 76
72
65
60
47
Female
65
67
61
57
46
Other -
-
-
-
-
Other
-
-
-
-
-
1
189
167
152
137
117
11
202
154
141
125
111
Women's representation by levels
Temporary employees
Board of Directors 2
20%
20%
20%
20%
20%
Male
12
8
7
9
5
Executive Management 3
0%
0%
0%
0%
0%
Female
6
5
4
3
1
Directors 4
25%
25%
0%
0%
0%
Other
-
-
-
-
-
Managers 5
35%
35%
38%
30%
30%
12
18
13
11
12
6
All employees 6
40%
43%
44%
44%
40%
Non-guaranteed employees
Distribution of employees by age group 7
Male
5
6
5
4
4
Under 30 years old 18%
-
-
-
-
Female
3
4
3
3
2
Between 30-50 years old 56%
-
-
-
-
Other
-
-
-
-
-
Over 50 years old 26%
-
-
-
-
13
8
10
8
7
6
Gender pay gap
Employee turnover 14
Managers 8
40%
-
-
-
-
Permanent employees
7%
11%
12%
9%
12%
Other employees below managers 9
8%
-
-
-
-
Temporary employees
11%
16%
17%
40%
40%
CEO pay ratio 10
4,6:1
4,6:1
4,6:1
4,6:1
4,6:1
Non-guaranteed employees
32%
10%
0%
22%
14%
63 | Annual Report | 2024
S1-9 Diversity metrics
The accounting policies for diversity and employee characteristics metrics in the table
above are described below.
Note 1 - Gender diversity
Gender diversity is reported based on the average number of employees during the
financial year, categorized by the gender registered with authorities. This includes all
full-time and part-time staff, adjusted for working hours relative to a full-time
equivalent (FTE) position.
Note 2 - Women's representation in the Board of Directors
The Board of Directors consists of five members, of whom one is a woman.
Note 3 – Women representation in Executive Management
The Executive Management team consists of two male members.
Note 4 – Women's representation in Directors
Directors are defined as an extension of executive management in daily operations
and are collectively called the executive management team. The team includes four
additional members, of whom one is a woman.
Note 5 – Women representation in Managers
Managers include all other personnel with direct people management responsibilities.
At the end of the financial year, the average number of managers was 17, of whom six
were women.
Note 6 – Women representation in all employees
Gender diversity is the average number of female employees divided by the total
number of FTEs.
Note 7 – Distribution of employees by age group
The distribution of employees by age group is based on the average number of
employees in each age category as of the last day of the financial year.
Note 8 – The gender pay gap for managers
Managers (see definition of Managers in Note 5), have a 40% gender pay gap, mainly
due to male managers' longer tenure and broader responsibilities. New hires and
promotions receive equal salaries, adjusted for qualifications.
Note 9 – The gender pay gap for other employees
Other employees include all non-management staff. The 8% gender pay gap is due to
a group of male employees with longer tenure and broader responsibilities. New hires
receive equal pay based on qualifications.
Note 10 – CEO pay ratio
The annual total remuneration ratio of the highest-paid individual (CEO) to the
median annual total remuneration for all employees, excluding the highest-paid
individual.
Note 11 – Permanent employees
Permanent employees are defined as full-time employees and are reported based on
headcount at the end of the financial year.
Note 12 – Temporary employees
Temporary employees include part-time workers (hourly paid employees) and are
reported based on headcount at the end of the financial year.
Note 13 – Non-guaranteed employees
Non-guaranteed employees include contractors (external consultants) who are
closely affiliated with the company for specific purposes, such as market
development consultants abroad. These employees are reported based on headcount
at the end of the financial year.
Note 14 – Employee turnover
Employee turnover is calculated as the number of employees who left the company
during the year, divided by the average number of employees during the year.
64 | Annual Report | 2024
S1-10 Adequate Wages
All our employees in European countries are paid an adequate wage in line with
Directive (EU) 2022/2041, ensuring compliance with local wage standards. As our
workforce primarily consists of highly educated employees, our wages are set way
above these minimum benchmarks to reflect the skills and expertise of our
employees. Our non-European employees similarly receive adequate wages based on
national and market benchmarks.
S1-11 Social protection
Our employees' well-being is a top priority. Comprehensive social protection
measures are available as part of employment, including healthcare, retirement plans,
disability insurance, and paid leave. These benefits are tailored to meet local
regulations and market standards.
S1-12 Persons with disabilities
We do not track employee disability but value the diversity among our team.
S1-13 Training and Skills Development metrics
All employees participate in two annual performance dialogues with their direct
managers, using a structured form to guide the process and assess past performance,
set future goals, and outline personal development plans. These reviews ensure
alignment between individual growth and our strategic objectives, with outcomes
documented and shared with HR to support continuous employee development.
In 2024, cBrain invited all employees to an off-site three full-day workshop working
with the execution of our strategic growth goals and “Plan 2023-2025” where
everybody had the opportunity to participate in strategy work and share innovative
ideas and concerns related to company ambitions.
Additionally, we offer a wide range of development opportunities tailored to our
workforce’s diverse needs, including technical training, leadership development, agile
project management, and personal skills development programs. On average, each
employee completed 42,5 hours of training in 2024 equally distributed for the entire
workforce.
S1-14 Health and safety metrics
We are committed to a safe, healthy, and supportive workplace. Our Global Health
Policy promotes well-being through proactive health monitoring, including monthly
reviews of sick leave and vacation balances. Employees facing heavy workloads or
stress are encouraged to seek support from managers and HR.
We prioritize both physical and mental health, offering ergonomic assessments, flu
vaccinations, a fitness center, company-sponsored sports events, and healthy meals.
Our Good Communication initiative includes training in workplace safety, emotional
intelligence, and psychological safety to foster a positive culture.
All employees are covered by health and safety procedures. In 2024, work-related
injuries remained below 1%, resulting in minimal lost workdays.
S1-15 Work-life balance
We value work-life balance as a core component of employee well-being, and we
perceive it to increase our overall productivity. We are committed to providing flexible
terms and arrangements and policies that help employees maintain a healthy balance
between their work responsibilities and personal lives.
In 2024, 100% of employees were entitled to family-related leave, reflecting our
dedication to supporting the employees’ family needs. Of these, 5% of employees
took family-related leave, with 2% of men and 6% of women utilizing this benefit.
S1-16 Remuneration metrics (pay gap and total remuneration)
We are committed to fair and equal remuneration practices that reflect our dedication
to inclusivity and transparency. We regularly review and analyze our pay structures to
ensure that employees are compensated fairly based on an evaluation of skills,
experience, responsibilities, and contributions. As part of this process, we monitor the
gender pay gap to identify and address any disparities in pay between male and
female employees performing comparable roles and with comparable educational
and experience profiles.
S1-17 Incidents, complaints, and severe human rights impacts
In 2024, in terms of human rights impacts, cBrain reported no incidents or complaints.
We maintain a respectful and ethical work environment with accessible, anonymous
reporting channels that are monitored. Our policies are regularly assessed to align
with best practices.
65 | Annual Report | 2024
Social Information
ESRS S4 Consumers and end-users
ESRS 2 SBM-2 Interests and views of stakeholders
Government digital transformation represents one of the largest markets globally.
COTS for government is a game-changing approach that offers government
organizations fast digital transformation at scale. This offers a huge market
opportunity for cBrain and cBrain intends to become a leading global supplier of
COTS for government. With F2, cBrain has a first-mover advantage and a unique value
proposition.
cBrain intends to become a leading global supplier of COTS for government.
With F2, cBrain has a unique value proposition, backed by a strong customer
reference base. The business roadmap for global leadership is based on 3 building
blocks: Strategic customers (Super Accounts), Subscriptions, and Partners.
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 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, thereby 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, thereby becoming a key enabler for government transformation.
By adopting best practices from the most digital country in the world with high
standards when it comes to e.g. transparency, justice, inclusion, anti-corruption,
biodiversity, and climate regulation, cBrain and its partners can provide government,
citizens, businesses, and end-users around the world with solutions that support and
respects not only human rights but all The Teen Principles set up by UN and several of
UN’s Sustainable Development Goals.
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with
strategy and business model
The world is becoming increasingly digital. It opens for opportunities as well as risks.
Our materiality assessment identified the following potential impact on our
workforce:
Material risks, impacts, and opportunities related to consumers and end-users
Direction
Time horizon
Upstream
Own operations
Downstream
Short-term
Medium-term
Long-term
Enabling
easy
-
to
-
use
citizen
-
centric
digital services increases transparency
and faster response
Potential positive impact
• • • •
The level of cyber risk is increasing and can compromise services and data thereby
disturbing society and causing vulnerability.
There is a tendency for large government projects to fail to meet schedule, budget,
and results that can contribute to a lack of trust towards government and
digitalization.
The demand for increased efficiency and better citizen services in the public sector is
huge and offers opportunities for cBrain to expand our business and to develop and
provide solutions that help citizens and businesses to interact with the public sector
66 | Annual Report | 2024
in a way that is helpful, respectful and efficient and at the same time lower the digital
threshold and barriers.
Increased complexity in legislation can cause complex solutions that can make it
difficult for citizens and businesses to grasp to understand what to do. Digitalization
can offer help but also in itself drive complexity. It can be a double-edged sword.
cBrain regards this development as a huge opportunity because we foresee that it will
drive the demand for standard solutions built for government and based on best
practices.
At the same time, it will demand increased investment in security and the protection
of data and the integrity of data and in the enhancement of the end-user dialogue
whether it is civil servants, citizens, or businesses.
S4-1 Policies related to consumers and end-users
As a provider of eGovernment services across 5 continents cBrain recognizes and is
aware of its responsibility towards society.
cBrain has many years maintained a comprehensive security policy and system, which
is ISO 27001 certified and controlled by external assessors. The General Data
Protection Regulation from the EU has been implemented according to Danish law
and is audited by external assessors yearly. Results from the assessment are disclosed
on cBrain’s customer portals. The F2 software is developed by the principal security
by design. Assessments cover Denmark and Germany, but policies and procedures
are followed globally.
cBrain has been preparing for the implementation of The Network and Information
Security 2 (NIS-2) Directive, which aims to achieve a high common level of
cybersecurity across the EU. cBrain will finalize the implementation before the
deadline decided by the Danish Parliament.
S4-2 Processes for engaging with consumers and end-users about impacts
According to the Danish Company Act cBrain implemented a Data Ethical Policy in
2021 and reports every year on the development. Policy and reports are available on
cBrain’s homepage www.cbrain.com/corporate-governance.
As described in the Data Ethical Policy the product board has the responsibility to
assess any data ethical issues in the product development cycle to ensure that cBrain
keeps its data ethical promises. The product manager is responsible for making sure
that assessments are carried through. Further in the implementation of customer
solutions, it is the responsibility of the project manager to ensure that data ethical
issues are brought up and discussed with the customer's management.
A Code of Conduct has been in place since 2018 and ensures that policies are
implemented, updated, and followed. A Supplier Code of Conduct ensures that
partners and suppliers are following the same principles.
All staff are trained and tested in the Code of Conduct relevant policies and in the
security system as a part of the onboarding process and are retrained and tested
yearly.
S4-3 Processes to remediate negative impacts and channels for consumers and end-
users to raise concerns
Innovation, further development, and enhancement of the standard platform are
anchored in the product board under the governance of the CEO and CTO and are
steered by the product manager. As a one-product company, it is a strategic forum.
From customers and end-users cBrain receives constant input and cBrain arranges
and hosts Best Practice events at the headquarters, where solutions and issues are
discussed.
cBrain releases new major versions of F2 every year but consider adopting a more
agile release mechanism in the future.
cBrain has developed a whole range of methods and tools that support the design and
implementation process in customer projects. E.g., the F2 Bureaucracy Model, the F2
Design Model, The Wave Implementation Model, The Banana Model, The Innovation
Cookbook, and the Alfa-Beta-Scaling Model. At the core of those models is
Innovation Design thinking, which enables a remarkably high degree of end-user
participation. Working with the F2 product, which is configurable to a remarkably high
extent, gives the users the ability to impact the configuration all through the design
process. We call it Open Design.
Accessibility is key not only to the public sector but also to cBrain. We develop
standard software for the public sector with an outreach to quite different user
groups including of course citizens and businesses. The German public market is
characterized by exceedingly high standards regarding end-user accessibility and
working with one of the largest agencies in Germany, cBrain has invested years in
meeting those high standards.
67 | Annual Report | 2024
Formal reporting mechanisms are implemented to make sure that cBrain Policies and
Code of Conduct are followed including a Whistle Blower channel to manage possible
incidents. The Audit Committee oversees it.
S4-4 Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities related
to consumers and end-users, and effectiveness of those actions
By implementing international standards for security (ISO 27001) and environment
(ISO 14001) we have established a risk-based management setup and a company
culture that secures and supports high attention.
We act systematically to prevent any misuse of sensitive data, and we have clear
policies and guidelines for how employees should manage situations of data leakage if
it should arise. The same goes for environment-related issues. Thereby risks are
reduced.
Due to the focus on SGD 16, we work constantly to improve transparency and
responsibility through our product F2. Via our methods and F2, we emphasize and
support a citizen-centric approach, which results in easy-to-use self-service solutions
with high quality, that again deliver high value for citizens, businesses, and public
entities.
By providing solutions in the area of climate, energy and environmental regulation,
cBrain contributes to lowering the CO2e emission and enhancement of biodiversity.
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
0 reports have been filed via The Code of Conduct channel and the Whistle Blower
channel since it was established in 2018 and respectively 2020.
For 2024, cBrain related (excl. “Caused by customer”) security incidents targets and
results have been:
Significance Target Result
Minimal impact
No Target
12
Minor impact
Less than 10
4
Impact
Less than 5
3
Greater impact
0
0
Catastrophic impact
0
0
Total
19
The Danish Data Protection Agency (DDPA)
1 report has been issued to DDPA
0 issue has been addressed by DDPA
The Centre for Cyber Security (CFCS)
0 reports have been issued to CFCS
CFCS has addressed 1 issue
After a reply from cBrain to CFCS, CFCS concluded that there was no security flaw
and the case was closed.
External ISO 27001 audit of cBrain
Performed in September 2024
Besides improvement suggestions only 1 minor nonconformity, which cBrain had
rectified by 1/12-2024.
External ISAE 3402 & 3000 audits of cBrain
Performed in the period November 2024 to January 2025
Resulted in 0 nonconformities.
68 | Annual Report | 2024
Governance Information
ESRS G1 Business Conduct
ESRS 2 SBM-2 Interests and views of stakeholders
We are committed to conducting business with integrity in all aspects of our
operations and ensuring compliance with the laws and regulations in every country
where we operate. As a global provider of COTS for governments, we recognize the
importance of ethical practices in our interactions with the public sector.
As a growing organization, we continually enhance our compliance program and
emphasize the need for a shared understanding of our business conduct among our
people, suppliers, and partners. Our strong culture of integrity and transparency
ensures that our people understand the importance of ethical conduct in our business
practices and build trust with our stakeholders.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
Working with government agencies requires engaging with officials at multiple levels,
making vigilance against corrupt business practices essential, particularly in high-risk
regions where bribery and corruption risks are elevated. These risks include facilitation
payments and potential corruption involving government officials.
Our materiality assessment identified the following potential impact on our business
conduct:
Material risks, impacts, and opportunities related to climate change
Direction
Time horizon
Upstream
Own operations
Downstream
Short-term
Medium-term
Long-term
Risk of bribery & corruption in high
-
risk regions
Risk
• • • • •
Risk of bribery & corruption in high-risk regions
Certain areas of our current and potential customers, especially those in regions with
higher risks of corruption, face increased vulnerability. Our presence in these regions
requires initiative-taking measures to mitigate risks, especially when engaging with
government officials and during initial payments or guarantee deposits, which are
often required in the tender processes in these regions.
Any incident of bribery or corruption could result in fines, penalties, and reputational
damage for cBrain, undermining our relationships with current and prospective public
customers, suppliers, or partners. This risk is present not only within our own
operations but also among our partners and is notably higher in regions such as the
Middle East, Africa, Asia, and South America.
G1-1 Business conduct policies and corporate culture
Our compliance framework is built on our core values, Code of Conduct, and Supplier
Code of Conduct, supplemented by specific policies addressing anti-corruption, data
protection, IT security, and insider trading. These policies empower our employees
and suppliers to make decisions that align with our ethical standards.
The Board of Directors holds ultimate responsibility for overseeing cBrain’s corporate
culture and business conduct, while the Executive Management is tasked with leading
by example and promoting a culture of integrity throughout the organization.
Risks related to business integrity and compliance are actively overseen and managed
across the organization by the CFO and the General Counsel, and discrepancies are
reported to the Audit Committee. No report has been given in 2024.
Code of Conduct
Our Code of Conduct sets clear ethical standards for the company and encompasses
all aspects of our operations and activities, including compliance with laws, respect
for human rights, commitment to diversity, fair competition, and anti-corruption
practices. It outlines responsibilities related to business integrity, such as anti-money
laundering regulations and data protection, and prohibits aggressive tax strategies
and political contributions. Employees are required to report any violations, and
suppliers must adhere to similar ethical standards.
69 | Annual Report | 2024
The CFO is responsible for the Code of Conduct. No noncompliance is reported to the
Audit Committee, and no incident has been reported in 2024. The Code of Conduct is
reviewed annually and updated in line with relevant legislation, with the latest update
occurring in October 2024 due to the annual review.
Training and Awareness
To ensure understanding and adherence to the Code of Conduct, we provide ongoing,
mandatory training and regular communications for all employees. This training is
integrated into the onboarding process for recruits and covers the Code of Conduct
and our anti-corruption policies. All business conduct policies are readily accessible to
employees through cBrain’s onboarding. Annually, all employees must restudy the
program and achieve at least 90% in an online test to complete.
In 2024, we strengthened our compliance framework by centralizing the compliance
organization under the governance of the CFO. The Compliance and security internal
auditors now collaborate closely with the General Counsel and CFO on tasks related
to ISO certifications and ISAE audits.
Whistle-Blower System
cBrain offers a whistle-blower system that enables employees, customers, suppliers,
and partners to report any financial or legal impropriety allegations. This system is
accessible through our website, and all reported concerns are reviewed and assessed
by the audit committee chair to determine if they fall under the scope of the whistle-
blower policy and, ultimately, if required by our external auditor.
Training on the whistle-blower system and the associated privacy policy is mandatory
because all employees are a part of the onboarding process. Whistle-blowers are
protected from retaliation, discrimination, or disciplinary action resulting from their
reports.
In 2024, zero concerns were raised through the whistle-blower system.
G1-2 Management of relationships with suppliers
Supplier Code of Conduct
Our success is built on strong partnerships with suppliers who share our ethical
principles, and we clearly outline our expectations in our Supplier Code of Conduct.
The Supplier Code of Conduct addresses potential risks related to labor practices,
human rights, health and safety, environmental responsibility, and bribery and
corruption. Suppliers must comply with international human rights standards and
national laws regarding child and forced labor, working hours, wages and benefits, and
non-discrimination.
We expect our suppliers to prioritize occupational health, safety, and environmental
compliance while supporting cBrain’s goal of reducing Scope 3 emissions and
achieving net-zero emissions by 2030. This includes providing data on greenhouse
gas (GHG) emissions and setting emissions reduction targets that align with the Paris
Agreement.
All primary suppliers are required to sign our Supplier Code of Conduct and
disseminate it to their subcontractors and business associates involved in providing
goods and services as outlined in our contracts.
Suppliers are subject to ad hoc risk evaluations and audits to ensure compliance. We
reserve the right to terminate contracts with any supplier that violates the Supplier
Code of Conduct or refuses to participate in a remediation plan when requested. In
2024, cBrain conducted one evaluation through an audit.
We recognize our responsibility to our suppliers by maintaining standard payment
terms of net 30 days to prevent overdue payments, particularly for small and
medium-sized enterprises (SMEs).
The General Counsel is responsible for the Supplier Code of Conduct, which is
reviewed annually and updated to align with relevant legislation. The most recent
update occurred in March 2023.
G1-3 Prevention and detection of corruption and bribery
We uphold a zero-tolerance policy toward bribery and corruption, committing to
conduct our business ethically and with integrity in all dealings and relationships
worldwide. We comply with anti-bribery and corruption laws in every jurisdiction
where we operate, and we neither engage in nor tolerate any form of facilitation
payments.
70 | Annual Report | 2024
Our Code of Conduct and Anti-Corruption Policy clearly outlines our commitment to
preventing bribery, fraud, and corruption. All employees undergo mandatory training
in these specific policies, and our expectations are communicated to suppliers
through our Supplier Code of Conduct.
In regions such as the Middle East, Africa, Asia, and South America, we face an
elevated risk of corruption and bribery, particularly within our sales departments,
which often engage with government officials. To address these challenges,
employees operating in high-risk areas receive targeted compliance training and
dedicated support to ensure they understand and adhere to our ethical standards,
including anti-corruption.
We encourage employees, suppliers, customers, and partners to report any
allegations of corruption, bribery, fraud, or other legal or financial misconduct by
contacting the CFO or through our whistle-blowing mechanism.
Concerns submitted via the whistle-blower system are reviewed and assessed by the
audit committee chair and our external auditors if required.
Training and Awareness
We provide mandatory anti-corruption and bribery training for new employees
through our onboarding process and yearly updates via online training. In 2024, 100%
of employees completed training and testing on our Code of Conduct, Anti-
Corruption Policy, and Information Security Policy. By prioritizing training, testing, and
awareness, we ensure that our employees are equipped to uphold our commitment to
integrity in all aspects of our operations.
G1-4 Incidents of corruption or bribery
In 2024, cBrain reported no breaches of the Code of Conduct. There were also no
incidents related to human rights, fraud, corruption, bribery, or violations of antitrust
or competition laws.
Additionally, cBrain did not receive any convictions or fines for breaches of anti-
corruption or anti-bribery laws, nor were we subject to any legal actions related to
corruption or bribery during this year.
G1-5 Political influence and lobbying activities
We do not fund political parties and strictly make charitable contributions that comply
with local laws and ethical standards. Before they are executed, all donations must
receive approval from the CFO.
cBrain is a member of several trade and business associations in Denmark and other
countries where we operate, with a total annual contribution for these memberships
amounting to DKK 1m.
Furthermore, no cBrain Board of Directors, Executive Management, or other
management members held positions in public administration or regulatory bodies in
the two years preceding the 2024 reporting period.
G1-6 Payment practices
Our standard contract payment terms are set at 30 days from receipt of the invoice
for all suppliers. This applies to approximately 80% of our annual invoices by value. We
ensure payments are made within this 30-day timeframe for services received, which
encompasses about 5% of our annual invoices. The remaining invoices are also paid
within 30 days of receipt, maintaining consistency through our payment practices.
71 | Annual Report | 2024
Statements
72 | Annual Report | 2024
Management Statement
The Board of Directors and Executive Management have today discussed and
approved the annual report of cBrain A/S for the financial year 2024.
The annual report has been prepared in accordance with IFRS Accounting Standards
as adopted by the EU and additional requirements of the Danish Financial Statements
Act.
It is our opinion that the consolidated financial statements and the Parent company's
financial statements give a true and fair view of the Group’s and the Parent company’s
financial position on December 31, 2024, and of the results of the Group’s and the
Parent company’s operations and cash flows for the financial year January 1 –
December 31, 2024.
In our opinion, the Management’s review gives a fair review of the development in the
Group’s and the Parent company’s operations and financial conditions, the results for
the year, cash flows, and financial position as well as a description of the principal risks
and uncertainty factors that the Group and the Parent company face.
In our opinion, the annual report of cBrain A/S for the financial year 2024 identified as
cBrain-2024-12-31- en.zip has been prepared, in all material respects, in compliance
with the ESEF-regulation.
We recommend that the annual report be approved at the annual general meeting.
Copenhagen, February 20, 2025
Board of Directors
Henrik Hvidtfeldt
Chair
Lisa C. Herold Ferbing
Vice Chair
Peter Loft
Per Tejs Knudsen
Thomas Qvist
Executive Board
Per Tejs Knudsen
CEO
Thomas Qvist
CTO
73 | Annual Report | 2024
Independent Auditor’s Report
To the shareholders of cBrain A/S
Report on the audit of the Consolidated Financial Statements and Parent Company Financial Statements
Opinion
We have audited the consolidated financial statements and the parent company
financial statements of cBrain A/S for the financial year 1 January – 31 December
2024, which comprise income statement, statement of comprehensive income,
balance sheet, statement of changes in equity, cash flow statement and notes,
including material accounting policy information, for the Group and the Parent
Company. The consolidated financial statements and the parent company financial
statements are prepared in accordance with IFRS Accounting Standards as adopted
by the EU and additional requirements of the Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent company
financial statements give a true and fair view of the financial position of the Group
and the Parent Company at 31 December 2024 and of the results of the Group's and
the Parent Company's operations and cash flows for the financial year 1 January – 31
December 2024 in accordance with IFRS Accounting Standards as adopted by the EU
and additional requirements of the Danish Financial Statements Act.
Our opinion is consistent with our long-form audit report to the Audit Committee and
the Board of Directors.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(ISAs) and additional requirements applicable in Denmark. Our responsibilities under
those standards and requirements are further described in the "Auditor's
responsibilities for the audit of the consolidated financial statements and the parent
company financial statements" (hereinafter collectively referred to as "the financial
statements") section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Ethics
Standards Board for Accountants' International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical requirements applicable in
Denmark, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the IESBA Code.
To the best of our knowledge, we have not provided any prohibited non-audit services
as described in article 5(1) of Regulation (EU) no. 537/2014.
Appointment of auditor
We were initially appointed as auditor of cBrain A/S on 28 April 2022 for the financial
year 2022. We have been reappointed annually by resolution of the general meeting
for a total consecutive period of 3 years up until the financial year 2024.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements for the financial year 2024. These
matters were addressed during our audit of the financial statements as a whole and in
forming our opinion thereon. We do not provide a separate opinion on these matters.
For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled our responsibilities described in the "Auditor's responsibilities for the
audit of the financial statements" section, including in relation to the key audit
matters below. Accordingly, our audit included the design and performance of
procedures to respond to our assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on
the financial statements.
74 | Annual Report | 2024
Key audit matters:
Capitalisation of development projects
Development projects are capitalized when the criteria’s according to IAS 38 are met.
This includes whether the development projects are clearly defined and identifiable,
and where the technical feasibility, sufficient resources and the cost price can be
determined as well as potential future economic benefits can be demonstrated.
The criteria for recognition and measurement of development projects are subject to
Management’s estimates and judgements. which is uncertain by nature.
The Group monitors the expected carrying amount of development projects in
progress and evaluates whether any indications of impairment for the completed
development projects exists. Development projects in progress and completed
projects are tested for impairment at least annually.
We focused on this area as the assessment of whether the criteria for recognition of
development projects are met and the preparation of impairment test are subject to
significant Management estimates and judgements.
We refer to Note 2 for accounting estimates and Note 13 Intangible Assets.
How our audit addressed the key audit matter
We have assessed whether the prepared documentation for the recognition of
development projects meets the criteria for capitalization in accordance with IAS 38.
On a sample basis, we have tested the recognized direct labor expenses to time
registrations and other payroll related information. In addition, we have on a sample
basis assessed whether the capitalized indirect costs are directly attributable to the
development projects and whether the costs are accurate.
We have compared the budgets used in the impairment test with the business plans
approved by Management, and assessed the key assumptions used in the impairment
test through discussions with management about strategic initiatives. We have
compared management’s estimates from previous periods to realized earnings, to
assess the reliability of Management’s Expectations for future earnings.
Statement on the Management’s review
Management is responsible for the Management's review.
Our opinion on the financial statements does not cover the Management's review,
and we do not express any assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the Management's review and, in doing so, consider whether the Management's
review is materially inconsistent with the financial statements, or our knowledge
obtained during the audit, or otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether the Management's review
provides the information required by relevant law and regulations.
Based on our procedures, we conclude that the Management's review is in
accordance with the financial statements and has been prepared in accordance with
the requirements of relevant law and regulations. We did not identify any material
misstatement of the Management's review.
Management’s responsibilities for the financial statements
Management is responsible for the preparation of consolidated financial statements
and parent company financial statements that give a true and fair view in accordance
with IFRS Accounting Standards as adopted by the EU and additional requirements of
the Danish Financial Statements Act and for such internal control as Management
determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the
Group's and the Parent Company's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of
accounting in preparing the financial statements unless Management either intends to
liquidate the Group or the Parent Company or to cease operations, or has no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance as to whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor's report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in
accordance with ISAs and additional requirements applicable in Denmark will always
detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could
75 | Annual Report | 2024
reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit conducted in accordance with ISAs and additional requirements
applicable in Denmark, we exercise professional judgement and maintain professional
skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Group's
and the Parent Company's internal control.
Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
Management
Conclude on the appropriateness of Management's use of the going concern
basis of accounting in preparing the financial statements and, based on the
audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group's and the
Parent Company's ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor's report.
However, future events or conditions may cause the Group and the Parent
Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and contents of the financial
statements, including the note disclosures, and whether the financial
statements represent the underlying transactions and events in a manner
that gives a true and fair view.
Plan and perform the group audit to obtain sufficient appropriate audit
evidence regarding the financial information of the entities or business units
within the group as a basis for forming an opinion on the group financial
statements. We are responsible for the direction, supervision and review of
the audit work performed for purposes of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the consolidated financial
statements and the parent company financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor's report
unless law or regulation precludes public disclosure about the matter.
Report on compliance with the ESEF Regulation
As part of our audit of the Consolidated Financial Statements and Parent Company
Financial Statements of cBrain A/S, we performed procedures to express an opinion
on whether the annual report of cBrain A/S for the financial year 1 January – 31
December 2024 with the file name cBrain-2024-12-31-en.zip is prepared, in all
material respects, in compliance with the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) which includes
requirements related to the preparation of the annual report in XHTML format and
iXBRL tagging of the Consolidated Financial Statements including notes.
Management is responsible for preparing an annual report that complies with the
ESEF Regulation. This responsibility includes:
The preparing of the annual report in XHTML format;
The selection and application of appropriate iXBRL tags, including extensions
to the ESEF taxonomy and the anchoring thereof to elements in the
taxonomy, for all financial information required to be tagged using
judgement where necessary.
Ensuring consistency between iXBRL tagged data and the Consolidated
Financial Statements presented in human readable format; and
For such internal control as Management determines necessary to enable the
preparation of an annual report that is compliant with the ESEF Regulation.
76 | Annual Report | 2024
Our responsibility is to obtain reasonable assurance on whether the annual report is
prepared, in all material respects, in compliance with the ESEF Regulation based on
the evidence we have obtained, and to issue a report that includes our opinion. The
nature, timing and extent of procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material departures from the requirements
set out in the ESEF Regulation, whether due to fraud or error. The procedures include:
Testing whether the annual report is prepared in XHTML format;
Obtaining an understanding of the company’s iXBRL tagging process and of
internal control over the tagging process;
Evaluating the completeness of the iXBRL tagging of the Consolidated
Financial Statements including notes;
Evaluating the appropriateness of the company’s use of iXBRL elements
selected from the ESEF taxonomy and the creation of extension elements
where no suitable element in the ESEF taxonomy has been identified;
Evaluating the use of anchoring of extension elements to elements in the
ESEF taxonomy; and
Reconciling the iXBRL tagged data with the audited Consolidated Financial
Statements.
In our opinion, the annual report of cBrain A/S for the financial year 1 January – 31
December 2024 with the file name cBrain-2024-12-31-en.zip is prepared, in all
material respects, in compliance with the ESEF Regulation.
Copenhagen, 20 February 2025
EY Godkendt Revisionspartnerselskab
CVR no. 30 70 02 28
Mikkel Sthyr Henrik Pedersen
State Authorised State Authorised
Public Accountant Public Accountant
mne26693 mne35456
77 | Annual Report | 2024
Financials
78 | Annual Report | 2024
Consolidated Financial Statements
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
79 | Annual Report | 2024
Consolidated Statements of Comprehensive Income
CONSOLIDATED INCOME STATEMENT
EARNINGS PER SHARE
T.DKK
Notes 2024
2023
T.DKK
Notes
2024
2023
Revenue
3,4
267.781
239.182
Basic EPS
20
3,24
3,16
Diluted EPS (DEPS)
20
3,24
3,16
Cost of services
5
-3.483
-2.152
External expenses
6,7
-38.131
-35.683
Staff costs
8
-135.905
-121.181
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Research and development costs
are
capitalized.
22.836
26.404
T.DKK
Notes
2024
2023
Depreciation and amortization expense
9
-24.756
-21.165
Operating profit (EBIT)
88.342
85.405
Profit for the period
64.815
63.178
Other comprehensive income
0
0
Financial income
10
1.066
1.313
Total comprehensive income for the year
64.815
63.178
Financial expenses
11
-3.404
-5.364
Earnings before income taxes (EBT)
86.004
81.354
Income taxes
12
-21.189
-18.176
Profit for the year
64.815
63.178
Consolidated Financial Statement
80 | Annual Report | 2024
Consolidated Balance Sheet
ASSETS
EQUITY AND LIABILITIES
T.DKK
Notes 2024
2023
T.DKK
Notes
2024
2023
Intangible assets
13
67.660
64.594
Share capital
5.000
5.000
Property, plant and equipment
14
231.265
211.572
Retained earnings
270.717
218.580
Right-of-use assets
15
2.821
0
Proposed dividend
12.800
5.600
Other financial assets
16
950
798
Total equity
20
288.517
229.180
Total non-current assets
302.696
276.964
Deferred tax liabilities
21
12.610
11.759
Trade receivables
17
46.962
43.801
Lease liabilities
22
1.181
0
Contract assets
18
16.011
8.630
Borrowings
23
46.852
48.807
Other receivables
4.451
2.228
Provisions
24
115
0
Receivables
67.424
54.659
Total non-current liabilities
60.758
60.566
Cash and cash equivalents
22.256
9.234
Trade payables
3.333
3.429
Lease liabilities
22
1.541
0
Total current assets
89.680
63.893
Contract liabilities
18
5.744
5.163
Current tax liabilities
19
8.829
13.780
Total assets
392.376
340.857
Borrowings
23
1.981
1.906
Other payables
25
21.673
26.833
Total current liabilities
43.101
51.111
Total liabilities and equity
392.376
340.857
Accounting policies applied
1
Accounting estimates
2
Commitments and contingencies
26
Related party transactions
27
Financial instruments and -risks
28
Capital structure
29
Events after the balance sheet date
30
Key ratios
31
Consolidated Financial Statement
81 | Annual Report | 2024
Consolidated Statements of Changes in Equity
2024
2023
T.DKK
Share
capital
Retained
earnings
Proposed
dividend
Total
equity
T.DKK
Share
capital
Retained
earnings
Proposed
dividend
Total
equity
Equity, January 1 5.000
218.580
5.600
229.180
Equity, January 1 5.000
160.302
4.200
169.502
Net profit for the year 0
52.015
12.800
64.815
Net profit for the year 0
57.578
5.600
63.178
Comprehensive income for the period 0
52.015
12.800
64.815
Comprehensive income for the period 0
57.578
5.600
63.178
Share-based payments 0
0
0
0
Share-based payments 0
235
0
235
Purchase of treasury shares 0
0
0
0
Purchase of treasury shares 0
-454
0
-454
Sale of treasury shares 0
0
0
0
Sales of treasury shares 0
827
0
827
Dividends 0
122
-5.600
-5.478
Dividends 0
92
-4.200
-4.108
Transactions with owners 0
122
-5.600
-5.478
Transactions with owners 0
700
-4.200
-3.500
Equity, December 31 5.000
270.717
12.800
288.517
Equity, December 31 5.000
218.580
5.600
229.180
Consolidated Financial Statement
82 | Annual Report | 2024
Consolidated Cash Flow Statement
T.DKK
2024
2023
T.DKK
2024
2023
Operating profit (EBIT)
88.342
85.405
Investments in intangible assets
-22.836
-26.404
Depreciation and amortization
24.756
21.165
Investments in property, plant, and equipment
-24.598
-703
Change in working capital
Cash flow from investing activities
-47.434
-27.107
Change in trade- and other receivables
-5.384
1.998
Change in contract assets and -liabilities
-6.800
-12.229
Repayment of lease liabilities
-73
0
Change in trade- and other payables
-5.256
1.060
Interest lease payments
-8
0
Cash flow from operating profit
95.658
97.399
Repayment of borrowings
-1.909
-48.073
Dividends paid, net
-5.478
-4.108
Share-based payments
0
235
Cash flow from financing activities
-7.468
-52.181
Financial items
-2.229
-3.885
Income taxes paid
-25.505
-7.452
Cash and cash equivalents, January 1
9.234
2.225
Cash flow from operating activities
67.924
86.297
Net cash flow for the period
13.022
7.009
Cash and cash equivalents, December 31
22.256
9.234
83 | Annual Report | 2024
Notes to the Consolidated Financial Statement
Consolidated Financial Statement
84 | Annual Report | 2024
Note 1 – Accounting policies
General information
cBrain A/S (the “Company”) 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
The annual report for 2024 includes both the consolidated financial statements of
cBrain A/S and its subsidiaries (the group), as well as separate financial statements for
the parent company.
The consolidated financial statements for cBrain A/S have been prepared in
accordance with IFRS Accounting Standards as adopted by the EU and additional
Danish disclosure requirements for listed companies.
The accounting policies, as described below, have been consistently applied in the
reporting year and for the comparative figures. Where relevant, accounting policies
have been moved below the notes.
The consolidated financial statements are expressed in thousands of Danish Kroner
(T.DKK). Danish Kroner amounts are depicted in European format.
New Accounting Regulation
The implementation of new or amended standards and interpretations, which are
mandatory for preparers of financial statements in 2024, has been implemented but
has not resulted in changes to recognition and measurement in the consolidated
financial statements or the parent company's financial statements.
At the time of the publication of this annual report, some new or amended standards
and interpretations have not yet come into effect and, therefore, have not been
incorporated into the annual report.
The newly issued, not-yet-effective standards and interpretations will be
implemented as they become mandatory for the consolidated financial statements
and the parent company's financial statements.
Management assesses that these will not have a significant impact on the
consolidated financial statements or the parent company's financial statements for
the coming financial years.
Consolidated Financial Statements
The consolidated financial statements include cBrain A/S (the parent company), and
subsidiaries in which cBrain A/S has control.
The group controls an entity if the group is exposed to or has rights to variable returns
from its involvement with the entity and can use its power to affect those returns.
In assessing whether the group has control, consideration is given to de facto control
and exercisable or convertible potential voting rights that exist at the reporting date.
Entities in which the group exercises significant, but not controlling, influence over
operational and financial decisions are classified as associated companies.
Considerable influence typically exists when the group directly or indirectly owns or
controls more than 20% of the voting rights but less than 50% or otherwise controls
the respective entity.
The consolidated financial statements are prepared as a summary of the parent
company's and the individual subsidiaries' financial statements, presented by the
group's accounting policies, with eliminations for intercompany revenues and
expenses, equity interests, internal balances, dividends, as well as realized and
unrealized gains from transactions between the consolidated entities. Unrealized
gains from transactions with associated companies are eliminated in proportion to
the group's ownership interest in the entity. Unrealized losses are eliminated in the
same manner as unrealized gains unless they represent an impairment.
Foreign Currency Transactions
For each of the reporting entities within the group, a functional currency is
determined. The functional currency is the currency used in the primary economic
environment in which each reporting entity operates. Transactions in currencies other
than the functional currency are considered foreign currency transactions.
Transactions in foreign currencies are translated into the functional currency at the
exchange rate prevailing on the transaction date at initial recognition. Exchange rate
differences arising between the transaction date and the payment date are
recognized in the income statement as financial income or expenses.
Receivables, payables, and other monetary items denominated in foreign currencies
are translated into the functional currency at the exchange rate prevailing on the
balance sheet date.
Consolidated Financial Statement
85 | Annual Report | 2024
Note 1 – Accounting policies (continued)
Prepayments received in foreign currency related to customer contracts are
translated into the entity's functional currency using the exchange rate at the date
when the entity initially recognizes the non-monetary asset or liability arising from the
payment.
The difference between the exchange rate on the balance sheet date and the
exchange rate at the time the receivable or liability arose or the rate in the most
recent annual report is recognized in the income statement as financial income or
expenses.
When including entities in the consolidated financial statements with a functional
currency other than Danish kroner, translation is performed in the income statement
and other comprehensive income at the exchange rates on the transaction date, and
balance sheet items are translated at the exchange rates on the balance sheet date.
The transaction date exchange rate is determined using the average rate for each
month, to the extent that it does not significantly differ from other methods.
Exchange rate differences arising from the translation of these entities' equity at the
beginning of the year to the balance sheet date's exchange rates and from the
translation of total income from the transaction date's exchange rates to the balance
sheet date's exchange rates are recognized in other comprehensive income in a
separate reserve for currency translation adjustments under equity.
Reporting in accordance with the ESEF Regulation
With the Commission Delegated Regulation (EU) 2019/815 on the European Single
Electronic Format (ESEF) Regulation, a common electronic reporting format has been
introduced, which must be used by issuers of financial instruments on regulated
markets in the EU when preparing annual reports.
The combination of the XHTML format and iXBRL tags allows annual reports to be
readable by both humans and machines, making the information in annual reports
more accessible and easier to analyze and compare. The group's iXBRL tags have
been developed in accordance with the ESEF Taxonomy, which is part of the ESEF
Regulation and has been developed based on the IFRS Taxonomy. Items in the
consolidated financial statements are tagged to elements in the ESEF Taxonomy.
For items that are not explicitly defined in the ESEF Taxonomy, extended taxonomy
elements have been created. These extended elements are linked to elements in the
ESEF Taxonomy, except for elements that are subtotals. The annual report submitted
to the Financial Supervisory Authority (the Officially Designated Mechanism) consists
of the XHTML document and the technical files, all of which are included in the ZIP file
cBrain_2024_12_31.zip.
Key Definitions
XHTML (eXtensible HyperText Markup Language) is a text-based language used to
structure and markup content such as text, images, and hyperlinks in documents that
are displayed in a web browser.
iXBRL tags (Inline XBRL tags) are hidden metadata embedded in the source code of
an XHTML document, enabling the transformation of XHTML-formatted information
into a machine-readable XBRL data representation using appropriate software.
A financial reporting taxonomy is an electronic table of contents for reporting
elements used to report company data. A taxonomy element is an element defined in
a taxonomy that is used for machine-readable tagging of information in an XBRL data
dictionary.
Note 2 - Accounting Estimates
Determination of the carrying amount of certain assets and liabilities requires
management to make judgments, estimates, and assumptions about future events.
Estimates and assumptions are based on historical experience and other factors and
are regarded by management as reasonable in the circumstances but are inherently
uncertain and unpredictable and therefore the actual outcome may differ from these
estimates.
It may be necessary to revise previously made estimates due to changes in the
conditions on which these estimates were based or due to added information or
subsequent events.
Estimates that are particularly significant for financial reporting include, among
others, impairment tests of development projects.
Impairment testing of development projects
Ongoing development projects are evaluated for impairment at least annually. cBrain
A/S operates in a competitive market, and despite experiencing increased demand for
the IT solutions (F2) offered by cBrain, the requirements for solutions are becoming
more demanding.
Consolidated Financial Statement
86 | Annual Report | 2024
Note 2 - Accounting Estimates (continued)
cBrain is, therefore, dependent on staying at the forefront of technological
advancements. At the same time, there is a constant market demand for better and
more efficient IT solutions, which may result in a shortened product lifespan. All
ongoing development projects are proceeding as planned, and there is no information
from customers or competitors indicating that current and new versions of F2 will not
be sellable as expected.
Based on these considerations, management has assessed the recoverable amount of
ongoing development projects in terms of expected future net cash flows, including
completion costs.
Additionally, management has determined that for completed development projects
subject to amortization over 5 years, there are no indications of impairment beyond
the depreciation taken.
Please refer to note 13 in the consolidated financial statements.
Revenue recognition
Revenue recognition requires management to make judgments that are based on
assumptions about historical and forecast information, as well as regional and industry
economic conditions in which we or our clients operate.
Key decisions include identifying separate performance obligations, evaluating
contract modifications, and estimating revenue based on the percentage of
completion method, which requires significant judgment in estimating time to
complete budgets.
Management utilizes historical data from comparable projects when estimating the
time to complete budgets.
Please refer to notes 3 and 4 in the consolidated financial statements.
Note 3 – Segment information
Market areas
cBrain's software solution is a comprehensive product consisting of a wide range of
configurable software modules and libraries. The software product is marketed under
the brand name: F2 (production system, case management, and business processes).
When presenting information related to geographical areas, details about revenue
distribution across geographical segments are reported based on the geographical
location of customers.
Segments
cBrain operates as a single operating segment, as there is no division of the group's
activities in internal reporting.
The intangible and tangible fixed assets recognized on the group's balance sheet can
be attributed to Denmark.
T.DKK 20242023Products and Services Software 209.555 189.179Services 58.226 50.003267.781 239.182Timing of revenue recognition Over time 229.343 198.796At a point in time 38.438 40.386267.781 239.182Geographical information Denmark 178.053 155.498Other EU-countries 81.364 75.930Countries outside the EU8.364 7.754267.781 239.182Significant Customers Customer A* 156.075 128.884Customer B 71.056 74.091
*Customers in the Danish state are aggregated together as Customer A.
Consolidated Financial Statement
87 | Annual Report | 2024
Note 4 – Revenue
T.DKK 20242023Software 209.555 189.179Services 58.226 50.003267.781 239.182
§ Accounting Policies
Classes of revenues
cBrain's revenue comprises Software and Services.
Software
Software comprises software subscription and -licenses, software-as-a-service
(SaaS), customization and configuration as well as maintenance, operation, and
support.
Services
Services include the sale of consultancy services, education, and training. Services
revenue represents fees earned from consulting and education services.
Revenue recognition
When a sales agreement includes multiple performance obligations, the total sales
value of the agreement is allocated proportionately to the individual performance
obligations identified within the agreement. When the contract cannot be separated
into distinct performance obligations, the entire contract is recognized linearly over
the contract period.
Revenue is recognized by cBrain using the five-step model in IFRS 15 and is
recognized when control over the individually identifiable performance obligation
transfers to the customer.
The recognized revenue is measured based on the consideration that cBrain expects
to be entitled to in a contract with a customer. cBrain's recognition of revenue can
occur either overtime or for sales of software licenses at a point in time. Revenue is
recognized from customers when control transfers to the customer at an amount
that reflects the consideration cBrain expects to be entitled to as compensation for
these services.
Recognition of revenue requires the existence of a contract approved by both the
customer and cBrain, with a mutual obligation to fulfill the agreement, identifiable
rights to the delivery of goods or services, identifiable payment terms, a commercial
substance in the contract, and cBrain will probably receive payment for its services.
Revenue is recognized when control of the service has been transferred to the
customer.
The sales value of contract assets and liabilities is measured based on the degree of
completion and the total expected revenue in each contract. The degree of
completion is measured using an input-based method, based on the hours incurred
relative to the expected total hours required to fulfill the contract, which is deemed to
best reflect the transfer of control.
When the sales value in a contract cannot be determined reliably, it is measured at the
costs incurred or the net realizable value if lower.
Individual contract assets and liabilities are recognized in the balance sheet as
contract assets under receivables or as contract liabilities under liabilities, depending
on the net amount of the sales value after deducting progress billings and advances
received.
Costs related to sales and contract acquisition are recognized in the income
statement as they are incurred. cBrain's primary payment terms are 30 days.
Note 5 – Cost of Services
§ Accounting Policies
The cost of services includes expenses for IT equipment and software incurred to
generate the revenue for the year. Cost of services also includes research expenses
and expenses related to development projects that do not meet the criteria for
recognition in generating the intangible assets.
Consolidated Financial Statement
88 | Annual Report | 2024
Note 6 - External Expenses
T.DKK 20242023Sales and marketing costs 17.533 16.579General and administrative expenses 19.246 17.756Short-term leases expenses 1.352 1.34838.131 35.683
§ Accounting Policies
External expenses comprise expenditures associated with sales and marketing,
including distribution, sales, advertising, and allowances for bad debts. Furthermore,
general and administrative expenses related to premises and other miscellaneous
expenses related to administration.
Note 7 - Fees to the Statutory Auditors
T.DKK 20242023Statutory audit 868 841Other assurance services 191 160Tax and VAT advisory services 0 60Other services 156 301.215 1.091
Fees for services other than the statutory audit of the financial statements provided
by EY Godkendt Revisionspartnerselskab, Denmark amounted to T.DKK 347 (2023:
T.DKK 250). This includes assurance opinions related to IT, other assurance opinions,
agreed-upon procedures as well as CSRD-related services.
Note 8 – Staff costs
T.DKK 20242023Wages and salaries 132.886 118.456Social security costs 2.552 2.308Share-based payment expense 0 5Board fee 410 350Other personnel expenses 57 62135.905 121.181Average number of employees 189 167
Fees and remuneration to the Board of Directors and Executive Management
T.DKK 20242023Fees to the Board of Directors Board fee 410 350Remuneration to the Executive Management Fixed base salary 3.605 3.434Short-term cash incentive 1.547 1.5835.152 5.017Total short-term remuneration 5.562 5.367
§ Accounting Policies
Staff costs include salaries and wages, as well as discretionary bonuses for the
group's employees. Additionally, other personnel expenses are recognized.
When employees are offered the opportunity to convert salary into shares in cBrain
under § 7P of the Danish Tax Assessment Act, the subscription is made at the market
price without any benefit element, and therefore, no separate cost is calculated and
recognized for this.
Consolidated Financial Statement
89 | Annual Report | 2024
Note 9 – Depreciation and Amortization Expense
T.DKK 20242023Software 19.770 16.953Leases 81 0Land and buildings 3.787 3.418Other Equipment 1.118 79424.756 21.165
§ Accounting policies
Depreciation, amortization, and impairment comprise amortization and impairment of
intangible assets and depreciation of tangible fixed assets for the year, including
depreciation of leased assets.
Note 10 – Financial Income
T.DKK 20242023Interest income, other 466 772Exchange rate gains 600 5411.066 1.313
§ Accounting Policies
Financial income is recognized in the income statement as the amounts relating to
the financial years. Financial income includes interest income, realized and unrealized
gains on securities, and foreign exchange transactions.
Note 11 - Financial Cost
T.DKK 20242023Interest expense, leases 8 0Interest expense, other 2.811 4.550Exchange rate losses 585 8143.404 5.364
§ Accounting Policies
Financial expenses are recognized in the income statement as the amounts relating to
the financial year. Financial expenses include interest costs, realized and unrealized
losses on securities, debt, and foreign exchange transactions, as well as supplements
and refunds under the advance tax scheme, and related items.
Note 12 – Income Taxes
T.DKK 20242023Current tax on profits for the year 18.697 16.206Adjustment for deferred tax 8511.930Adjustments in respect of current income tax of previous year 1.6414021.189 18.176Total income tax Tax using the Danish corporation tax rate (22%) 18.921 17.898Non-deductible -96-295Write-off of non-deductible depreciation 667590Effect of different tax rates on foreign subsidiaries 5644Other adjustments 0-101Adjustments in respect of current income tax of previous year 1.6414021.189 18.176Effective tax rate 24,6% 22,3%
Consolidated Financial Statement
90 | Annual Report | 2024
Note 12 – Income Taxes (continued)
§ Accounting Policies
Current tax, which consists of current tax expense for the year and changes in
deferred tax, is recognized in the income statement with the portion attributable to
the profit for the year and directly in equity for the portion that can be attributed to
entries posted directly to equity.
Note 13 – Intangible Assets
2024
Software T.DKK Softwareunder TotaldevelopmentCost, January 1 181.5173.417184.934Additions 022.83622.836Transfer 23.277-23.2770Cost, December 31 204.7942.976207.770Amortization, January 1 120.3400120.340Amortization 19.770019.770Amortization, December 31 140.1100140.110Carrying amount, December 31 64.6842.97667.660
Out of the year's additions to software under development, totaling DKK 22,8m,
capitalized salaries amount to DKK 22,6m.
In 2024, software under development of DKK 23,3m was released and transferred to
software.
In 2024, management performed an impairment test of the carrying amount of
development projects in progress. It has been assessed that the recoverable amount
in the form of value in use exceeds the carrying amount. The value in use is calculated
based on expected net cash flows for 5 years.
2023
Software T.DKK Softwareunder TotaldevelopmentCost, January 1 156.2982.232158.530Additions 026.40426.404Transfer 25.219-25.2190Cost, December 31 181.5173.417184.934Amortization, January 1 103.3870103.387Amortization 16.953016.953Amortization, December 31 120.3400120.340Carrying amount, December 31 61.1773.41764.594
In 2023, out of the year's additions to development projects in progress, totaling DKK
26,4m, capitalized salaries amount to DKK 25,3m.
In 2023, management performed an impairment test of the carrying amount of
development projects in progress. It has been assessed that the recoverable amount
in the form of value in use exceeds the carrying amount. The value in use is calculated
based on expected net cash flows for 5 years.
§ Accounting Policies
Software under development that is clearly defined and identifiable, where technical
feasibility, sufficient resources, and a potential future market or use within the group
can be demonstrated, and where the intention is to complete, market, or use the
project, are recognized as intangible assets if their cost can be reliably measured, and
there is sufficient assurance that future earnings or net selling prices will cover
production, selling, administrative, and development costs. Other development costs
are recognized in the income statement in the financial statement line cost of
services.
Capitalized development costs are measured at cost less accumulated depreciation
and impairment. The cost includes salaries and wages, and other directly attributable
costs related to the group's development activities.
Consolidated Financial Statement
91 | Annual Report | 2024
Note 13 – Intangible Assets (continued)
Upon completion of the development work, development projects are depreciated on
a straight-line basis over their estimated economic useful life from the date at which
the asset is ready for use. The amortization period is 5 years. The amortization base is
reduced by any impairments.
Note 14 – Property, plant and equipment
2024
Land andOther T.DKK TotalbuildingsEquipmentCost, January 1 214.5644.495219.059Additions 24.3311.36725.698Adjustment of cost -1.1000-1.100Cost, December 31 237.7955.862243.657Depreciation, January 1 6.0141.4737.487Depreciation 3.8831.1185.001Accumulated depreciation on adjustment of cost -960-96Depreciation, December 31 9.8012.59112.392Carrying amount, December 31 227.9943.271231.265
Land and buildings with a carrying amount of DKK 192m comprise land of DKK 31m,
which is not subject to depreciation.
2023
Land andOther T.DKK TotalbuildingsEquipmentCost, January 1 214.3324.024218.356Additions 232471703Disposals 000Cost, December 31 214.5644.495219.059Depreciation, January 1 2.5966793.275Depreciation 3.4187944.212Depreciation, December 31 6.0141.4737.487Carrying amount, December 31 208.5503.022211.572
§ Accounting Policies
Property, plant, and equipment are measured at cost less accumulated depreciation
and impairment.
The cost includes the purchase price and expenses directly attributable to the
acquisition until the asset is ready for use.
Property, plant and equipment are depreciated on a straight-line basis over their
expected useful lives, as follows:
Land: is not depreciated.
Buildings: 20-50 years
Building installations: 5 years
Other equipment: 3-5 years.
The depreciation base is calculated considering the residual value of the asset and is
reduced by any impairments. The depreciation period is determined at the time of
acquisition and is reviewed annually.
A leased asset is recognized under property, plant, and equipment in the balance
sheet when, under a lease agreement, the group gains control over a specific
identified asset for the duration of the lease.
Consolidated Financial Statement
92 | Annual Report | 2024
Note 14 – Property, plant and equipment (continued)
The leased asset is initially measured at cost, which is equivalent to the value of the
lease liability adjusted for prepaid lease payments.
Subsequently, the asset is measured at cost less accumulated depreciation. The
leased asset is depreciated over the shorter of the lease term and the useful life of the
leased asset. Depreciation is recognized linearly in the income statement.
The leased asset is adjusted for changes in the lease liability resulting from changes in
the terms of the lease agreement or changes in the cash flows of the contract as a
result of changes in an index or interest rate.
Gains and losses from the disposal of Property, plant and equipment are calculated as
the difference between the selling price, net of selling expenses, and the carrying
amount at the date of disposal.
Note 15 - Right-of-use assets
Office leases
T.DKK 20242023Cost, January 1 00Addition 2.9020Cost, December 31 2.9020Depreciation, January 1 00Depreciation 810Amortization, December 31 810Carrying amount, December 31 2.8210
§ Accounting Policies
Right-of-use assets are leased real estate property. Right-of-use assets are measured
at a cost corresponding to the lease liability recognized, adjusted for any lease
incentives received, and initial direct costs. Depreciation is calculated using the
straight-line method over the lease term or the useful life of the right-of-use assets,
whichever is shortest.
The variable lease payments that do not depend on index or a rate are recognized as
expense in the year the event or condition that triggers the payment occurs.
For all asset classes, non-lease components will be separated from the lease
components and thereby not form part of the recognized right-of-use asset and the
lease liability.
Note 16 – Other Financial Assets
T.DKK 20242023Cost, January 1 798511Additions 152643Disposals 0-356Cost, December 31 950798Carrying amount, December 31 950798
§ Accounting policies
Other financial assets consist of office rental deposits and deposits for the
establishment of company registration in cBrain Kodumburar India Private Limited.
These assets are measured at amortized cost.
The leases have notice periods ranging from 3 months to 6 years.
Consolidated Financial Statement
93 | Annual Report | 2024
Note 17 – Trade Receivables
T.DKK 20242023Trade receivables, gross 47.56544.059Change in provision for credit losses: Provision, January 1 258266Unused amounts reversed -258-266Additions 603258Provision, December 31 603258Trade receivables, net 46.96243.801
2024
Due Not Due 1-Due 31-T.DKK >60 Totaloverdue30 days60 daysdaysContract assets, gross 16.01100016.011Trade receivables, gross 44.1852.24243470447.565Expected credit loss -567-12-3-21-603Trade receivables, net 43.6182.23043168346.962Trade receivables and 59.6292.23043168362.973contract assets, net Share of trade receivables and contract assets 99%expected to be paid Expected credit loss % 1,3%0,5%0,7%3,0%1,3%
The group’s payment terms are primary 30 days.
2023
Due Not Due 1-Due 31-T.DKK >60 Totaloverdue30 days60 daysdaysContract assets, gross 8.6300008.630Trade receivables, gross 40.7722.60311457044.059Expected credit loss -226-19-2-11-258Trade receivables, net 40.5462.58411255943.801Trade receivables and 49.1762.58411255952.431contract assets, net Share of trade receivables and contract assets 99%expected to be paid Expected credit loss % 0,6%0,7%1,8%1,9%0,6%
§ Accounting policies
Receivables are recognized at amortized cost, which usually corresponds to the
nominal value. The value is reduced by allowance for expected losses, calculated using
the simplified expected credit loss model.
Consolidated Financial Statement
94 | Annual Report | 2024
Note 18 – Contract Assets and Liabilities
T.DKK 20242023Contract assets Work-in-progress 16.0118.63016.0118.630Contract liabilities Deferred income 4.4273.020Prepayments from customers 7712.143Costs to fulfill contracts 546 05.7445.163Contract assets and liabilities are classified in the balance sheet as follows: Contract assets 16.0118.630Contract liabilities -5.744-5.16310.2673.467
The increase in work-in-progress can be attributed to several larger IT projects which
are expected to be completed and finally invoiced in 2025.
Contract assets as of December 31, 2023, relating to produced unbilled revenue
totaling DKK 8,6m are recognized in revenue in 2024.
Contract liabilities as of December 31, 2023, relating to deferred income and
prepayments from customers totaling DKK 5,2m are recognized in revenue in 2024.
§ Accounting policies
Contract assets comprise produced, unbilled revenue and costs incurred to fulfil
contracts. The individual contract assets are recognized as receivables in the balance
sheet when the selling price can be measured reliably.
Contract liabilities include deferred income and prepayments from customers. The
individual contract liabilities are recognized under liabilities in the balance sheet as the
sales value of the underlying assets.
Note 19 – Current Tax Liabilities
T.DKK 20242023Corporation tax receivable/payable, January 1 13.7805.114Current tax for the year 18.69716.206Adjustment of tax relating to previous years 1.22140Corporation tax paid in the year -24.869-7.5808.82913.780
§ Accounting Policies
Current tax receivables and liabilities are recognized in the balance sheet as tax
calculated on the taxable income for the year, adjusted for tax on previous years'
taxable income and for tax paid on account.
Note 20 – Share Capital
Reconciliation of Treasury Shares
Pcs. 2024 2023 Treasury shares, January 1 437.1872,2%441.1832,2%Treasury shares acquired in the year 00,0%3.3550,0%Treasury shares sold in the year 00,0%-7.3510,0%437.1872,2%437.1872,2%
The share capital consists of 20.000.000 shares with a nominal value of DKK 0,25
each. No shares have special rights.
As of December 31, 2024, the group holds 437.187 treasury shares (compared to
437.187 shares as of December 31, 2023). The market value of the group’s treasury
shares as of December 31, 2024, is DKK 78,4m (compared to DKK 117,6m as of
December 31, 2023).
Consolidated Financial Statement
95 | Annual Report | 2024
Note 20 – Share Capital (continued)
In 2024, the group did not sell any treasury or repurchase any ordinary shares. The
Annual General Meeting authorizes the management to repurchase up to 10% of its
share capital.
The proposed dividend for 2024 amounts to DKK 12,8m, equivalent to DKK 0,64 per
share (compared to DKK 45,6m, equivalent to DKK 0,28 per share in 2023).
Statement of Earnings per Share
Pcs. 20242023Number of shares 20.000.00020.000.000Average number of own treasury shares-437.187-439.185Average number of shares, outstanding 19.562.81319.560.815Basic EPS 3,243,16Diluted EPS (DEPS) 3,243,16
§ Accounting Policies
Dividends are recognized as a liability at the time of approval by the Annual General
Meeting. Dividends expected to be paid for the year are recorded as a separate line
item within equity.
The acquisition of treasury shares is recognized directly in equity at cost.
Consideration and dividends received on the sale of treasury shares are also directly
credited to equity.
Proceeds from the sale of treasury shares are recognized directly credited on equity.
Note 21 – Deferred Tax Liabilities
T.DKK 20242023Deferred tax liability, January 1 11.7599.509Adjustment for deferred tax for the year 8511.930Deferred tax liability, December 31 12.61011.759Recognized deferred tax liabilities are attributable to the following: Intangible assets 14.88514.211Property, plant and equipment -694-318Provisions, etc. -1.581-2.13412.61011.759
§ Accounting Policies
Deferred tax liabilities and deferred tax assets are recognized in accordance with the
tax law and rates that will be applicable, under the legislation in effect as of the
balance sheet date, when the deferred tax is expected to become payable as current
tax. Changes in deferred taxes due to changes in tax rates are recognized in the
income statement.
Consolidated Financial Statement
96 | Annual Report | 2024
Note 22 – Lease Liabilities
T.DKK 20242023Undiscounted lease liability Within one year 1.6100Between 1 and 3 years 1.2090Between 3 and 5 years 00More than 5 years 002.8190Amounts recognized in the balance sheet Current financial liabilities 1.5410Non-current financial liabilities 1.18102.7220Amounts recognized in the statement of profit or loss Lease payments 730Interest expenses related to lease liabilities 80810
§ Accounting Policies
Lease liabilities are recognized as the present value of the remaining lease payments,
discounted using an alternative borrowing rate. The lease liability is measured at initial
recognition as the present value of future lease payments discounted using an
alternative borrowing rate.
Note 23 – Borrowings
2024
Effective Coupon Interest CurrencyMaturityRateRateFloating interest rate mortgage loans3,92%3,92%DKK18 years
2023
Effective Coupon Interest CurrencyMaturityRateRateFloating interest rate mortgage loans4,06%4,06%DKK19 years
T.DKK 20242023Within one year 1.9811.9061-3 years 4.2004.0413-5 years 4.5384.366More than 5 years 38.61940.932Total contractual undiscounted cash flows 49.33851.245
T.DKK 20242023Non-current liabilities 46.85248.807Current liabilities 1.9811.906Carrying amount 48.83350.713
There are no debt covenants in the borrowing agreement.
Consolidated Financial Statement
97 | Annual Report | 2024
Note 23 – Borrowings (continued)
§ Accounting Policies
Borrowings from credit institutions, etc., are initially recognized at fair value, net of
transaction costs incurred upon borrowing. Subsequently, financial liabilities are
measured at amortized cost using the effective interest method, with the difference
between the proceeds and the nominal value recognized in the income statement as
financial expenses over the term of the loan.
Other financial liabilities are measured at amortized cost.
Note 24 – Provisions
T.DKK 20242023Provisions, January 100Arising during the year 1150Unused amounts reversed 00Provisions, December 31 1150
§ Accounting Policies
Provisions relate to expected future costs for the removal of installations and
equipment, as well as reinstatement, etc., upon vacating cBrain’s leased properties.
These provisions are reevaluated annually based on the condition of the leases at the
balance sheet date.
Note 25 – Other payables
§ Accounting Policies
Other payables include bonus, holiday allowance and other staff obligations, VAT,
PAYE tax labor market contributions, etc. Other payables are measured at amortized
costs using the effective interest method.
Note 26 – Commitments and Contingencies
T.DKK 20242023Short-term lease commitments, within one year 07790779
In 2024 short-term lease payments of TDKK 1.352 (2023: TDKK 1.348) has been
expensed.
Collateral
The property located at Kalkbrænderiløbskaj 2, 2100 Copenhagen Ø, with a total
carrying amount of DKK 192,4m, is used as collateral in an owner's mortgage deed to:
Mortgage loan for the remaining debt of DKK 48,8m (2023: DKK 50,7m).
Credit institution for DKK 15,0m as joint liability for the Group's bank
balances.
Restricted cash
cBrain's subsidiary, cBrain MENA Computer System and Design LLC, has provided
security in cash deposited of DKK 2,4m (2023: DKK 1,8m) to the Group's bank in
Dubai (EmiratesNBD). The group does not have withdrawal rights for the deposit, and
therefore, the deposit is presented as other receivables.
Other Contingent Liabilities
cBrain's Danish companies are jointly and severally liable for the tax on the Danish
companies’ income, etc. The total amount of outstanding corporate income tax in
Denmark is DKK 8,9m (2023: DKK 13,9m). The Danish companies are also jointly and
severally liable for Danish withholding taxes in the form of dividend tax, royalty tax,
and interest tax. Any subsequent adjustments to corporate taxes and withholding
taxes may result in the Group's liability being a larger amount.
Consolidated Financial Statement
98 | Annual Report | 2024
Note 27 – Related Party Transactions
cBrain’s related parties exercising a significant influence comprise the company’s
Board of Directors and Executive Management Board as well as relatives of these
persons. Related parties also comprise companies in which the individuals mentioned
above have material interests.
The Group did not enter into any agreements, deals, or other transactions in 2024 in
which the Parent company’s Board of Directors or Executive Management Board had
a financial interest, except for transactions following from the employment
relationship.
Key Management Personnel consists of the Board of Directors and the Executive
Management. Remuneration to members of the Board of Directors and the Executive
Management Board is disclosed in note 8 and the Remuneration Report for 2024.
Members of the Board of Directors are elected by the shareholders at the Annual
General Meeting for terms of one year.
Refer to pages 37 for additional information on Board of Directors members. Interest
in the company of members of the Board of Directors and the Executive Management
Board:
For a detailed description of the parent companies’ transactions with subsidiaries,
please refer to the parent company’s financial statements note 28.
Shareholder Composition
The following shareholders own 5% or more of the company's share capital:
Putega Holding ApS, Denmark, ownership interest 41,70% (2023: 42,66%) (Per
Tejs Knudsen, CEO and board member of cBrain A/S).
As of the end of 2024, the parent company had approximately 13.200 shareholders
compared to approximately 14.700 shareholders at the end of 2023.
Note 28 – Financial Instruments and Risks
Categories of Financial Instruments
T.DKK 20242023Financial assets measured at amortized cost Other financial assets 950798Trade receivables 46.96243.801Other receivables 4.4512.228Cash and cash equivalents 22.2562.22574.61956.061Financial liabilities measured at amortized cost Lease liabilities 2.7220Borrowings 48.83350.713Provisions 115 0Trade payables 3.3333.42955.00354.142
Financial Risk Management Strategies
cBrain is exposed to market risks in the form of changes in exchange rates and
interest rates, as well as credit risks and liquidity risks, due to its operations,
investments, and financing activities.
Management believes that cBrain operates with a low-risk profile, and as such, foreign
currency, interest rate, and credit risks only occur on a commercial basis. It is cBrain's
policy not to engage in active speculation in financial risks.
Entering new markets may involve transactions in foreign currencies, which could
expose cBrain to currency fluctuations. Therefore, this area is closely monitored to
assess the need for currency hedging instruments. For implemented optimization,
refer to the following section.
Foreign Exchange Risk
cBrain's foreign exchange risk is primarily managed by matching cash inflows and
outflows in the same currency. The difference between cash inflows and outflows in
the same currency represents an unhedged currency risk. The majority of positions
are in EUR, USD, GBP and AED.
Consolidated Financial Statement
99 | Annual Report | 2024
Note 28 – Financial Instruments and Risks (continued)
Currency Risk on Recognized Assets and Liabilities
2024
T.DKK EURUSDGBPAEDCash and cash equivalents 2.946280 7925654.583Receivables 12.563928 03.71717.208Liabilities -5570 0-32-589Unhedged net-position 14.9521.208 7924.25021.202Loss/gain at 10 % strengthening/ +/- 1.495+/- 121+/- 79+/- 425+/- 2.120weakening of DKK
2023
T.DKK EURUSDGBPAEDCash and cash equivalents 2.2981.259 2902784.125Receivables 3.289468 1724.5998.528Liabilities -2090 0-94-303Unhedged net-position 5.3781.727 4624.78312.350Loss/gain at 10 % strengthening/ +/- 538+/- 173+/- 46+/- 478+/- 1.235weakening of DKK
Interest Rate Risks
cBrain's interest rate risk is related to bank balances and debt to mortgage loans
(borrowings). As of December 31, 2024, the Group has a bank balance of DKK 22,3m
(2023: DKK 9,2 million). In connection with bank balances, there is a total credit facility
of DKK 0 million. The bank balances are subject to variable day-to-day interest rates.
The Group's borrowings consist of an 18-year variable-rate mortgage loan with rate-
fixing every 6 months. As of December 31, 2024, borrowings amount to DKK 48,8
million (2023: DKK 50,7 million). The interest rate as of December 31, 2024, is 3,92%. If
the interest rate were to increase by one percentage point, it would have a negative
effect of DKK 0,5 million. A corresponding decrease in interest rates would have the
opposite effect. The impact of changes in interest rates on the Group's result does
not differ from the impact on equity.
Liquidity Risks
cBrain's objective is to maintain sufficient liquidity reserves to be able to respond
appropriately to unforeseen fluctuations in liquidity. Excess liquidity is placed in
deposit or savings accounts, considering the expected liquidity needs. Liquidity is only
placed with financial institutions with high creditworthiness.
Non-Derivative Financial Liabilities
2024
Between Between Less than After T.DKK 6 and 12 1 and 5 Total6 months5 yearsmonthsyearsLease liabilities 8058051.20902.819Borrowings 9919918.73838.61949.338Trade payables 3.3330003.333Other payables 21.67300021.67326.8021.7969.94738.61977.163
2023
Between Between Less than After T.DKK 6 and 12 1 and 5 Total6 months5 yearsmonthsyearsLease liabilities 0 0 0 0 0Borrowings 9539538.40740.93251.245Trade payables 3.4290003.429Other payables 23.7663.0670026.83328.1484.0208.40740.93281.507
Credit Risks
Credit risk is low due to the types of customers, primarily consisting of public
authorities and professional organizations. The finance department continuously
reviews credit risks, including the size and age distribution of receivables from
individual customers.
Consolidated Financial Statement
100 | Annual Report | 2024
Note 28 – Financial Instruments and Risks (continued)
In 2024, an expected loss of DKK 0,6m was recognized (2023: DKK 0,3), and no losses
were realized during the financial year.
See note 17 for further information about credit risks.
Changes in liabilities arising from financing activities
Borrowings 20242023Opening, January 1 50.71398.579Borrowings 00Repayment of borrowings -1.909-48.073Amortization of loan costs (non-cash) 29207Closing, December 31 48.83350.713
Note 29 - Capital Structure
cBrain's management continuously assesses whether the Group's capital structure
aligns with the interests of the Group and its shareholders. The overall objective is to
maintain a capital structure that supports long-term financial growth while
maximizing returns to the Group's stakeholders through optimizing the ratio of equity
to debt. The Group's overall strategy remains unchanged from the previous year.
cBrain's capital structure consists of borrowings, lease liabilities, cash and cash
equivalents, equity, including share capital, and retained earnings. The Board of
Directors reviews the capital structure twice a year in connection with the
presentation of the interim and annual reports. As part of this review, the Board of
Directors assesses the cost of capital and the risks associated with each type of
capital.
The financial gearing at the balance sheet date can be summarized as follows:
T.DKK 20242023Lease liabilities 2.7220Borrowings 48.83350.713Cash and cash equivalents -22.256-9.23429.29941.479Equity 288.517229.180Financial Gearing Ratio 10,2%18,1%
The Group does not have a specific target for the level of financial leverage.
Note 30 - Events After the Balance Sheet Date
No events have occurred after the end of the financial year that require adjustment or
disclosure in the annual report for 2024.
101 | Annual Report | 2024
Note 31 – Key Ratios
The key figures and financial ratios have been prepared on a consolidated basis and
defined and calculated in accordance with the 'Recommendations and Financial
Ratios' issued by the Danish Finance Society, using the following calculation formulas:
Revenue growth rate =
Revenue in current period - Revenue in previous period
Revenue in previous period
Profit margin (EBIT) =
Operating profit (EBIT)
Revenue
Return on investment (ROI) =
Result before tax (EBT)
Total assets
EBT margin =
Earnings before income taxes (EBT)
Revenue
Liquidity ratio =
Total current assets
Total current liabilities
Solvency ratio =
Total equity
Total assets
Return on equity =
Profit for the period
Average equity
Book Value per Share (BVPS) =
Total equity
Number of shares
Basic EPS =
Profit for the period
Average outstanding shares
Diluted EPS (DEPS) =
Profit for the period
Average outstanding shares + Diluted shares
Average number of
employees (FTEs)
=
Number of employees calculated as average FTE
(full-time equivalents)
Gender diversity, all
employees
=
Gender diversity is calculated as average FTE
(full-time equivalents) per gender.
Scope 1 & 2 CO2e emissions
(tons)
=
Emissions for electricity and district heating at cBrain's
locations (market-based).
Consolidated Financial Statement
102 | Annual Report | 2024
Parent Company Financial Statements
Statement of Comprehensive Income
Balance Sheet
Cash Flow Statement
Statement of Changes in Equity
Notes to the Parent Company Financial Statements
103 | Annual Report | 2024
Statements of Comprehensive Income
INCOME STATEMENT
STATEMENT OF COMPREHENSIVE INCOME
T.DKK
Notes 2024
2023
T.DKK
Notes 2024
2023
Revenue
3,4
267.781
239.182
Profit for the period
63.879
62.697
Other comprehensive income
0
0
Cost of services
5
-3.483
-3.558
Total comprehensive income for the year
63.879
62.697
External expenses
6,7
-38.356
-34.811
Staff costs
8
-135.905
-120.664
Research and development costs capitalized
22.836
26.404
DISTRIBUTION OF PROFIT
Depreciation and amortization expense
9
-28.455
-25.194
T.DKK
Notes 2024
2023
Operating profit (EBIT)
84.418
81.359
Proposed dividend
12.800
5.600
Financial income
10
2.538
2.988
Development costs reserve
2.392
7.372
Financial cost
11
-2.885
-3.637
Retained earnings
61.487
49.725
Earnings before income taxes (EBT)
84.071
80.710
Total
63.879
62.697
Income taxes
12
-20.192
-18.013
Profit for the year
63.879
62.697
Parent Company Financial Statement
104 | Annual Report | 2024
Balance Sheet
ASSETS
EQUITY AND LIABILITIES
T.DKK
Notes 2024
2023
T.DKK
Notes 2024
2023
Intangible assets
13
67.660
64.594
Share capital
5.000
5.000
Property, plant and equipment
14
38.832
15.510
Reserve for development costs
52.709
50.317
Right-of-use assets
15
52.758
56.522
Retained earnings
216.274
167.465
Investments in subsidiaries
16
125.226
50.050
Proposed dividend
12.800
5.600
Receivables from subsidiaries
17
7.353
7.209
Total equity
23
286.783
228.382
Other financial assets
18
950
798
Total non-current assets
292.779
194.683
Deferred tax liabilities
24
12.581
11.727
Lease liabilities
25
47.941
52.557
Receivables from subsidiaries
17
15.095
92.705
Provisions
26
615
500
Trade receivables
19
45.776
40.943
Total non-current liabilities
61.137
64.784
Contract assets
20
16.011
8.630
Other receivables
1.869
442
Trade payables
3.281
3.379
Receivables
78.751
142.720
Lease liabilities
25
7.337
5.464
Contract liabilities
20
5.744
5.163
Cash and cash equivalents
21.540
8.764
Current tax liabilities
21
8.010
13.780
Other payables
22
20.778
25.215
Total current assets
100.291
151.484
Total current liabilities
45.150
53.001
Total assets
393.070
346.167
Total liabilities and equity
393.070
346.167
Applied accounting policies
1
Accounting estimates
2
Commitments and contingencies
27
Related party transactions
28
Financial instruments and -risks
29
Capital structure
30
Events after the balance sheet date
31
Parent Company Financial Statement
105 | Annual Report | 2024
Statements of Changes in Equity
2024
2023
T.DKK
Share
capital
Reserve for
development
costs
Retained
earnings
Proposed
dividend
Total
equity
T.DKK
Share
capital
Reserve for
development
costs
Retained
earnings
Proposed
dividend
Total
equity
Equity, January 1 5.000
50.317
167.465
5.600
228.382
Equity, January 1 5.000
42.945
117.040
4.200
169.185
Net profit for the year 0
2.392
48.687
12.800
63.879
Net profit for the year 0
7.372
49.725
5.600
62.697
Comprehensive income
for the period
0
2.392
48.687
12.800
63.879
Comprehensive
income for the period
0
7.372
49.725
5.600
62.697
Share-based payments 0
0
0
0
0
Share-based payments 0
0
235
0
235
Purchase of treasury
shares
0
0
0
0
0
Purchase of treasury
shares
0
0
-454
0
-454
Sale of treasury shares 0
0
0
0
0
Sale of treasury shares 0
0
827
0
827
Dividends 0
0
122
-5.600
-5.478
Dividends 0
0
92
-4.200
-4.108
Transactions with
owners
0
0
122
-5.600
-5.478
Transactions with
owners
0
0
700
-4.200
-3.500
Equity, December 31 5.000
52.709
216.274
12.800
286.783
Equity, December 31 5.000
50.317
167.465
5.600
228.382
Parent Company Financial Statement
106 | Annual Report | 2024
Cash Flow Statement
T.DKK
2024
2023
T.DKK
2024
2023
Operating profit (EBIT)
84.418
81.359
Investments in intangible assets
-22.836
-26.404
Depreciation and amortization
28.455
25.194
Investments in property, plant and equipment
-25.341
-538
Change in working capital
Investments in subsidiaries
-2.085
-48.073
Change in trade- and other receivables
-6.260
4.578
Cash flow from investing activities
-50.262
-75.015
Change in contract assets and -liabilities
-6.800
-12.229
Change in trade- and other payables
-4.535
2.254
Repayment of lease liabilities
-73
0
Change in receivables from subsidiaries
-1.150
-7.455
Interest lease payments
-8
0
Cash flow from operating profit
94.128
93.701
Dividends paid, net
-5.478
-4.108
Cash flow from financing activities
-5.559
-4.108
Share-based payments
0
235
Financial items, net
-26
-412
Cash and cash equivalents, January 1
8.764
1.815
Income taxes paid
-25.505
-7.452
Net cash flow for the period
12.776
6.949
Cash flow from operating activities
68.597
86.072
Cash and cash equivalents, December 31
21.540
8.764
107 | Annual Report | 2024
Notes to the Parent Company Financial Statement
Parent Company Financial Statement
108 | Annual Report | 2024
Note 1 - Accounting Policies
Basis of Preparation
The separate annual financial statements for the parent company are included in the
annual report because the Danish Financial Statements Act requires a separate parent
company financial statement.
The parent company's financial statements for cBrain A/S have been prepared in
accordance with IFRS Accounting Standards as adopted by the EU and additional
Danish disclosure requirements for listed companies.
The parent company's financial statements are presented in thousands of Danish
kroner (T.DKK), which is considered the functional currency of the Parent company’s
activities. Amounts are presented in European format.
The accounting policies, as described below, have been consistently applied in the
reporting year and for the comparative figures. Where relevant, accounting policies
have been moved to the notes.
The accounting policies are the same as those for consolidated financial statements,
with the exception described below. For a detailed description of the group’s
accounting policies, please refer to note 1 of the consolidated financial statements.
Foreign Currency Translation
Foreign exchange adjustments of intragroup accounts are recognized in the income
statement in cBrain A/S’ financial statements. Foreign exchange adjustments of intra-
group accounts between cBrain A/S and subsidiaries are considered part of the net
investment in the subsidiaries concerned. Settlement of intra-group balances
considered part of the net investment is not, per se, considered a partial divestment
of a subsidiary.
Investments in subsidiaries
Investments in subsidiaries are measured at cost, for a detailed description please
refer to note 16.
Taxation
cBrain A/S is subject to the Danish rules on mandatory joint taxation of the Group's
Danish subsidiaries. cBrain A/S serves as the Group's administration company for
group taxation and consequently settles all corporate tax payments with the tax
authorities. Contributions to/from subsidiaries within the group taxation regime are
recognized under tax on the profit for the year. Tax liabilities and receivables are
recorded under current assets/liabilities.
Joint tax contributions to be paid or received are recognized in the balance sheet
under receivables from or payables to group companies. Companies that utilize tax
losses in other companies pay joint tax contributions to the parent company
equivalent to the tax value of the utilized losses, while companies whose tax losses
are utilized by other companies receive joint tax contributions from the parent
company, equivalent to the tax value of the utilized losses (full allocation).
Note 2 - Accounting Estimates
For a description of the accounting estimates please refer to note 2 to the
consolidated financial statements.
Management judges that all critical accounting estimates concerning the parent
company are included in note 2 of the consolidated financial statements and that
there are no critical accounting estimates that are unique to the parent.
Note 3 – Segment Information
Market areas
cBrain's software solution is a comprehensive product consisting of a wide range of
configurable software modules and libraries. The software product is marketed under
the brand name: F2 (production system, case management, and business processes).
When presenting information related to geographical areas, details about revenue
distribution across geographical segments are reported based on the geographical
location of customers.
Segments
cBrain operates as a single operating segment, as there is no division of the Group's
activities in internal reporting.
The intangible and property, plant, and equipment recognized on the Group's balance
sheet can be attributed to Denmark.
Parent Company Financial Statement
109 | Annual Report | 2024
Note 3 – Segment Information (continued)
T.DKK
2024
2023
Products and Services
Software
209.555
189.179
Services
58.226
50.003
267.781
239.182
Timing of revenue recognition
Over time
229.343
198.796
At a point in time
38.438
40.386
267.781
239.182
Geographical information
Denmark
178.053
155.498
Other EU-countries
81.364
75.930
Countries outside the EU
8.364
7.754
267.781
239.182
Significant Customers
Customer A*
156.075
128.884
Customer B
71.056
74.091
*Customers in the Danish state are aggregated together as Customer A.
Note 4 – Net revenue
T.DKK
2024
2023
Software
209.555
189.179
Services
58.226
50.003
267.781
239.182
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 4.
Note 5 – Cost of Services
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 5.
Note 6 - External Expenses
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 6.
Parent Company Financial Statement
110 | Annual Report | 2024
Note 7 - Fees to the Statutory Auditors
T.DKK
2024
2023
Statutory audit
816
791
Other assurance services
191
160
Tax and VAT advisory services
0
60
Other services
156
30
1.163
1.041
Fees for services other than the statutory audit of the financial statements provided
by EY Godkendt Revisionspartnerselskab, Denmark amounted to T.DKK 347 (2023:
T.DKK 250). This includes assurance opinions related to IT, other assurance opinions,
agreed-upon procedures as well as CSRD related services.
Note 8 – Staff costs
T.DKK
2024
2023
Wages and salaries
132.886
117.939
Social security costs
2.552
2.308
Share-based payment expense
0
5
Board fee
410
350
Other personnel expenses 57
62
135.905
120.664
Average number of employees
189
167
Fees and remuneration to the Board of Directors and Executive Management
T.DKK
2024
2023
Fees to the Board of Directors
Board fee
410
350
Remuneration to the Executive Management
Fixed base salary
3.605
3.434
Short-term cash incentive
1.547
1.583
5.152
5.017
Total short-term remuneration
5.562
5.367
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 8.
Note 9 – Depreciation and Amortization Expense
T.DKK
2024
2023
Software
19.770
16.953
Leases
6.666
6.585
Land and buildings
238
206
Furnishing of rented premises
663
656
Other Equipment
1.118
794
28.455
25.194
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 9.
Parent Company Financial Statement
111 | Annual Report | 2024
Note 10 – Financial Income
T.DKK
2024
2023
Interest income, subsidiaries
1.492
1.852
Interest income, other
458
595
Exchange rate gains
588
541
2.538
2.988
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 10.
Note 11 - Financial Cost
T.DKK
2024
2023
Interest expense, leases
1.872
2.038
Interest expense, other
515
785
Exchange rate losses
498
814
2.885
3.637
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 11.
Note 12 – Income Taxes
T.DKK
2024
2023
Current tax on profits for the year
17.879
16.076
Adjustment for deferred tax
854
1.897
Adjustments in respect of current income tax of previous year
1.459
40
20.192
18.013
Total income tax
Tax using the Danish corporation tax rate (22%)
18.496
17.756
Non-deductible
107
27
Write-off of non-deductible depreciation 52
45
Effect of higher tax rates in Germany 78
64
Other adjustments 0
81
Adjustments in respect of current income tax of previous year
1.459
40
20.192
18.013
Effective tax rate
24,0%
22,3%
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 12.
Parent Company Financial Statement
112 | Annual Report | 2024
Note 13 - Intangible Assets
2024
T.DKK
Software
Software
under
develop-
ment
Total
Cost, January 1
181.517
3.417
184.934
Additions
0
22.836
22.836
Transfer
23.277
-23.277
0
Cost, December 31
204.794
2.976
207.770
Amortization, January 1
120.340
0
120.340
Amortization
19.770
0
19.770
Amortization, December 31
140.110
0
140.110
Carrying amount December 31
64.684
2.976
67.660
Out of the year's additions to software under development, totaling DKK 22,8m,
capitalized salaries amount to DKK 22,6m.
In 2024, software under development of DKK 23,3m was released and transferred to
software.
In 2024, management performed an impairment test of the carrying amount of
development projects in progress. It has been assessed that the recoverable amount
in the form of value in use exceeds the carrying amount. The value in use is calculated
based on expected net cash flows for 5 years.
2023
T.DKK
Software
Software
under
develop-
ment
Total
Cost, January 1
156.298
2.233
158.531
Additions
0
26.403
26.403
Transfer
25.219
-25.219
0
Cost, December 31
181.517
3.417
184.934
Amortization, January 1
103.387
0
103.387
Amortization
16.953
0
16.953
Amortization, December 31
120.340
0
120.340
Carrying amount December 31
61.177
3.417
64.594
In 2023, out of the year's additions to software under development, totaling DKK
26,4m, capitalized salaries amount to DKK 25,3m.
In 2023, management performed an impairment test of the carrying amount of
development projects in progress. It has been assessed that the recoverable amount
in the form of value in use exceeds the carrying amount. The value in use is calculated
based on expected net cash flows for 5 years.
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 13.
Parent Company Financial Statement
113 | Annual Report | 2024
Note 14 - Property, plant, and Equipment
2024
T.DKK
Land and
buildings
Leasehold
improve-
ments
Other
Equipment
Total
Cost, January 1
11.193
3.302
4.495
18.990
Additions
23.974
0
1.367
25.341
Disposals
0
0
0
0
Cost, December 31
35.167
3.302
5.862
44.331
Depreciation, January 1
1.135
872
1.473
3.480
Depreciation
238
663
1.118
2.019
Depreciation, December 31
1.373
1.535
2.591
5.499
Carrying amount December 31 33.794
1.767
3.271
38.832
2023
T.DKK
Land and
buildings
Leasehold
improve-
ments
Other
Equipment
Total
Cost, January 1
11.193
3.235
4.024
18.452
Additions
0
67
471
538
Disposals
0
0
0
0
Cost, December 31
11.193
3.302
4.495
18.990
Depreciation, January 1
929
216
679
1.824
Depreciation
206
656
794
1.656
Depreciation, December 31
1.135
872
1.473
3.480
Carrying amount December 31 10.058
2.430
3.022
15.510
§ Accounting Policies
With the accounting policies described for the consolidated financial statements note
14, the parent company's accounting policies differ in the following aspects:
Property, plant, and equipment in the parent company are depreciated on a straight-
line basis over their expected useful lives, as follows:
Land: is not depreciated.
Buildings: 30 years.
Leasehold improvements: 5 years
Other equipment: 3-5 years.
Note 15 – Right-of-use Assets
Office leases
T.DKK
2024
2023
Cost, January 1
65.252
64.337
Addition (remeasurement)
0
915
Addition
2.902
0
Cost, December 31
68.154
65.252
Depreciation, January 1
8.730
2.145
Depreciation
6.666
6.585
Amortization, December 31
15.396
8.730
Carrying amount, December 31
52.758
56.522
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 15.
Parent Company Financial Statement
114 | Annual Report | 2024
Note 16 - Investments in Subsidiaries
T.DKK
2024
2023
Cost, January 1
50.340
50.340
Additions
75.176
0
Cost, December 31
125.516
50.340
Impairment losses, January 1
-290
-290
Impairment losses, December 31
-290
-290
Carrying amount, December 31
125.226
50.050
The capital shares in subsidiaries are specified as follows:
Name
Place of origin
Voting and
ownership
share
Equity
Profit for
the year
cProperty ApS
Copenhagen,
Denmark
100%
123.519
-88
cBrain MENA Computer
System and Design LLC
Dubai, UAE
100%
346
99
cBrain North America LLC
Delaware, USA
100%
0
0
cBrain East Africa Computer
System Design Limited
Nairobi, Kenya
100%
-113
-113
cBrain Omni Ghana Ltd
Accra, Ghana
50%*
0
0
cBrain Kodumburar India
Private Limited
Tamil Nadu,
India
50%*
0
0
*Shareholder agreements give cBrain control of the company.
§ Accounting Policies
Investments in subsidiaries are measured in the parent company's financial
statements at cost. The cost includes the purchase consideration recognized at fair
value plus direct acquisition costs.
If there is an indication of impairment, impairment tests are conducted as described
in the accounting policies applied for the consolidated financial statements. Where
the carrying amount exceeds the recoverable amount, it is written down to this lower
value.
When distributing reserves other than retained earnings in subsidiaries, the
distribution reduces the acquisition cost of the investments if the distribution has the
character of a repayment of the parent company's investment.
Note 17 - Receivables from Subsidiaries
§ Accounting Policies
Long-term receivables from subsidiaries include office rent deposits to cBrain’s’ 100%
owned subsidiary, cProperty ApS (CVR no. 37294098). The amount is equivalent to
one year’s lease payments. The office rent is price-regulated annually with a minimum
of 2% annually and a maximum of 4%. As a result, the rental deposit is adjusted
accordingly.
Short-term receivables from subsidiaries mainly include a short-term loan to
cProperty ApS provided in connection with the purchase of Utzon House in 2022.
In 2024, the company's short-term receivable from cProperty ApS was reduced by
DKK 75 million through a capital increase in cProperty ApS of nominally DKK 75,000,
subscribed for 1,000 per capital share of DKK 1. As of December 31, 2024, the
mortgage loan (borrowings) in cProperty has a carrying amount of DKK 49m, and the
property, plant, and equipment have a carrying amount of DKK 192m. Therefore,
cBrain does not expect any credit loss on this receivable.
Short-term loans accrue interest at a rate equivalent to cBrain's deposit rate at the
company's bank. As of December 31, 2024, the interest rate was 1,09% (2023: 2,85%).
Parent Company Financial Statement
115 | Annual Report | 2024
Note 18 – Other Financial Assets
T.DKK
2024
2023
Cost, January 1
798
466
Additions
152
643
Disposals
0
-311
Cost, December 31
950
798
Carrying amount, December 31
950
798
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 16.
Note 19 – Trade Receivables
T.DKK
2024
2023
Trade receivables, gross
46.379
41.201
Change in provision for credit losses:
Provision, January 1
258
266
Unused amounts reversed
-258
-266
Additions
603
258
Provision, December 31
603
258
Trade receivables, net
45.776
40.943
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 17.
Reconciliation of expected credit loss
2024
T.DKK
Not
overdue
Due 1-
30 days
Due 31-
60 days
Due
>60
days
Total
Contract assets, gross
16.011
0
0
0
16.011
Trade receivables, gross
42.999
2.242
434
704
46.379
Expected credit loss
-567
-12
-3
-21
-603
Trade receivables, net
42.432
2.230
431
683
45.776
Trade receivables and
contract assets, net
58.443
2.230
431
683
61.787
Share of trade receivables expected to be paid
99%
Expected credit loss %
1,3%
0,5%
0,7%
3,0%
1,3%
2023
T.DKK
Not
overdue
Due 1-
30 days
Due 31-
60 days
Due
>60
days
Total
Contract assets, gross
8.630
0
0
0
8.630
Trade receivables, gross
37.914
2.603
114
570
41.201
Expected credit loss
-226
-19
-2
-11
-258
Trade receivables, net
37.688
2.584
112
559
40.943
Trade receivables and
contract assets, net
46.318
2.584
112
559
49.573
Share of trade receivables expected to be paid
99%
Expected credit loss %
0,6%
0,7%
1,8%
1,9%
0,6%
Parent Company Financial Statement
116 | Annual Report | 2024
Note 20 – Contract Assets and Liabilities
T.DKK
2024
2023
Contract assets
Work-in-progress
16.011
8.630
16.011
8.630
Contract liabilities
Deferred income
4.427
3.020
Prepayments from customers
771
2.143
Costs to fulfill contracts 546
0
5.744
5.163
Contract assets and liabilities are classified in the balance sheet
as follows:
Contract assets
16.011
8.630
Contract liabilities
-5.744
-5.163
10.267
3.467
Contract assets as of December 31, 2023, relating to produced unbilled revenue
totaling DKK 8,6m are recognized in revenue in 2024.
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 18.
Note 21 – Current Tax Liabilities
T.DKK
2024
2023
Corporation tax receivable/payable, January 1
13.780
4.851
Current tax for the year
17.879
16.076
Adjustment of tax relating to previous years
1.220
40
Corporation tax paid in the year
-24.869
-7.187
8.010
13.780
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 19.
Note 22 – Other Payables
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 25.
Note 23 – Share Capital
Reconciliation on Treasury Shares
Pcs.
2024
2023
Treasury shares January 1
437.187
2,2%
441.183
2,2%
Treasury shares acquired in the year
0
0,0%
3.355
0,0%
Treasury shares sold in the year
0
0,0%
-7.351
0,0%
437.187
2,2%
437.187
2,2%
The share capital consists of 20.000.000 shares with a nominal value of DKK 0,25
each. No shares have special rights.
Parent Company Financial Statement
117 | Annual Report | 2024
Note 23 – Share Capital (continued)
As of December 31, 2024, the group holds 437.187 treasury shares (compared to
437.187 shares as of December 31, 2023). The market value of the group’s treasury
shares as of December 31, 2024, is DKK 78,4m (compared to DKK 117,6m as of
December 31, 2023).
In 2024, the group did not sell any treasury or repurchase any ordinary shares. The
Annual General Meeting authorizes the management to repurchase up to 10% of its
share capital.
The proposed dividend for 2024 amounts to DKK 12,8m, equivalent to DKK 0,64 per
share (compared to DKK 45,6m, equivalent to DKK 0,28 per share in 2023).
Statement of Earnings per Share
Pcs.
2024
2023
Number of shares
20.000.000
20.000.000
Average number of own treasury shares
-437.187
-439.185
Average number of shares, outstanding
19.562.813
19.560.815
Basic EPS
3,19
3,13
Diluted EPS (DEPS)
3,19
3,13
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 20.
Note 24 – Deferred Tax Liabilities
T.DKK
2024
2023
Deferred tax liability January 1
11.727
9.830
Adjustment for deferred tax for the year
854
1.897
Deferred tax liability December 31
12.581
11.727
Recognized deferred tax liabilities are attributable to the
following:
Intangible assets
14.885
14.211
Property, plant, and equipment
-723
-350
Provisions, etc.
-1.581
-2.134
12.581
11.727
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 21.
Parent Company Financial Statement
118 | Annual Report | 2024
Note 25 – Lease Liabilities
T.DKK
2024
2023
Undiscounted lease liability
Within one year
9.085
7.329
Between 1 and 3 years
16.612
15.100
Between 3 and 5 years
16.025
15.710
More than 5 years
20.951
29.543
62.673
67.682
Amounts recognized in the balance sheet
Current financial liabilities
7.337
5.464
Non-current financial liabilities
47.941
52.557
55.278
58.021
Amounts recognized in the statement of profit or loss
Lease payments
7.402
7.162
Interest expenses related to lease liabilities
1.872
2.072
9.274
9.234
§ Accounting Policies
For a description of the accounting policies, please refer to the consolidated financial
statements note 22.
Note 26 – Provisions
T.DKK
2024
2023
Provisions, January 1
500
500
Arising during the year
115
0
Unused amounts reversed
0
0
Provisions, December 31
615
500
Provisions relate to expected future costs for the removal of installations and
equipment, as well as reinstatement, etc., upon vacating cBrain’s leased properties.
These provisions are reevaluated annually based on the condition of the leases at the
balance sheet date.
Note 27 – Commitments and Contingencies
T.DKK
2024
2023
Short-term lease commitments, within one year
0
779
0
779
Guarantee obligations
cBrain A/S acts as a guarantor for its 100% owned subsidiary cProperty ApS's
mortgage loan for the remaining debt of DKK 48,8m (2023: DKK 50,7m). The property
located at Kalkbrænderiløbskaj 2, 2100 Copenhagen Ø, has a total carrying amount of
DKK 192,4m.
Other Contingent Liabilities
cBrain A/S has issued a letter of support for the fully owned subsidiary cProperty ApS,
committing to provide, if required, the necessary funds for cProperty ApS to honor its
liabilities as the fall is due until December 31, 2026.
Parent Company Financial Statement
119 | Annual Report | 2024
Note 27 – Commitments and Contingencies (continued)
Other Contingent Liabilities
cBrain's Danish companies are jointly and severally liable for the tax on the Danish
companies’ income, etc. The total amount of outstanding corporate income tax in
Denmark is DKK 8,9m (2023: DKK 13,9m). The Danish companies are also jointly and
severally liable for Danish withholding taxes in the form of dividend tax, royalty tax,
and interest tax. Any subsequent adjustments to corporate taxes and withholding
taxes may result in the Group's liability being a larger amount.
Note 28 – Related Parties Transactions
For the Parent company, in addition to transactions with other related parties
depicted in note 27 of the consolidated financial statements, related parties also
comprise subsidiaries where cBrain A/S has a controlling or significant influence.
The Parent company leases cBrain’s headquarter from its 100% owned subsidiary
cProperty ApS (CVR no. 37294098), please refer to note 15 and note 25.
The Parent company's outstanding balance with subsidiaries comprises receivables of
DKK 22,5m, current account DKK 15,1m and non-current group deposits of DKK 7,4m
(2023: DKK 99,9m, current account DKK 92,7m, and non-current group deposits DKK
7,2m).
Balances with subsidiaries comprise office rent deposits to cBrain’s’ 100% owned
subsidiary, cProperty ApS, and short-term loans to cProperty ApS provided in
connection with the purchase of Utzon House in 2022. The short-term loans are
accrued interest. For more information, please refer to note 16. Interest on receivables
from subsidiaries is specified in note 10.
Terms and conditions
The Parent company's outstanding balance with subsidiaries is unsecured and are
repayable in cash. The outstanding balance accrues interest at 1,09%
Note 29 – Financial Instruments and Risks
Categories of Financial Instruments
T.DKK
2024
2023
Financial assets measured at amortized cost
Receivables from subsidiaries
15.095
92.705
Trade receivables
45.776
40.943
Other receivables
1.869
442
Cash and cash equivalents
21.540
8.764
84.280
142.854
Financial liabilities measured at amortized cost
Lease liabilities
55.278
58.021
Provisions
615
500
Trade payables
3.281
3.379
59.174
61.900
Financial Risk Management Strategies
cBrain is exposed to market risks in the form of changes in exchange rates and
interest rates, as well as credit risks and liquidity risks, due to its operations,
investments, and financing activities.
Management believes that cBrain operates with a low-risk profile, and as such, foreign
currency, interest rate, and credit risks only occur on a commercial basis. It is cBrain's
policy not to engage in active speculation in financial risks.
Entering new markets may involve transactions in foreign currencies, which could
expose cBrain to currency fluctuations. Therefore, this area is closely monitored to
assess the need for currency hedging instruments. For implemented optimization,
refer to the following section.
Foreign Exchange Risk
cBrain's foreign exchange risk is primarily managed by matching cash inflows and
outflows in the same currency. The difference between cash inflows and outflows in
the same currency represents an unhedged currency risk. The majority of positions
are in EUR, USD, GBP, and AED.
Parent Company Financial Statement
120 | Annual Report | 2024
Note 29 – Financial Instruments and Risks (continued)
Currency Risk on Recognized Assets and Liabilities
2024
T.DKK
EUR
USD
GBP
AED
Cash and cash equivalents 2.946
280
792
0
4.018
Receivables
12.563
928
0
3.905
17.396
Liabilities
-557
0
0
0
-557
Unhedged
net-position
14.952
1.208
792
3.905
20.857
Loss/gain
at 10 %
strengthening/weakening
of DKK
+/- 1.495
+/- 121
+/- 79
+/- 391
+/- 2.085
2023
T.DKK
EUR
USD
GBP
AED
Cash and cash equivalents 2.298
1.259
290
0
3.847
Receivables
3.289
468
172
4.535
8.464
Liabilities
-209
0
0
0
-209
Unhedged
net-position
5.378
1.727
462
4.535
12.102
Loss/gain
at 10 %
strengthening/weakening
of DKK
+/- 538
+/- 173
+/- 46
+/- 454
+/- 1.210
Interest Rate Risks
cBrain's interest rate risk is related to bank balances and debt to mortgage loans
(borrowings). As of December 31, 2024, the company has a bank balance of DKK
21,5m (2023: DKK 8,8m). In connection with bank balances, there is a total credit
facility of DKK 0 million. The bank balances are subject to variable day-to-day interest
rates.
Liquidity Risks
cBrain's objective is to maintain sufficient liquidity reserves to be able to respond
appropriately to unforeseen fluctuations in liquidity. Excess liquidity is placed in
deposit or savings accounts, considering the expected liquidity needs. Liquidity is only
placed with financial institutions with high creditworthiness.
Non-Derivate Financial Liabilities
2024
T.DKK
Less than
6 months
Between
6 and 12
months
Between 1
and 5
years
After
5 years
Total
Lease liabilities
4.530
4.555
32.636
20.952
62.673
Trade payables
3.281
0
0
0
3.281
Other payables
20.778
0
0
0
20.778
28.589
4.555
32.636
20.952
86.732
2023
T.DKK
Less than
6 months
Between
6 and 12
months
Between 1
and 5
years
After
5 years
Total
Lease liabilities
3.652
3.676
30.811
29.042
67.181
Trade payables
3.379
0
0
0
3.379
Other payables
22.148
3.067
0
0
25.215
29.179
6.743
30.811
29.042
95.775
Credit Risks
Credit risk is low due to the types of customers, primarily consisting of public
authorities and professional organizations. The finance department continuously
reviews credit risks, including the size and age distribution of receivables from
individual customers.
In 2024, an expected loss of DKK 0,6m was recognized (2023: DKK 0,3), and no losses
were realized during the financial year.
The company has not entered into derivative financial instruments for hedging
recognized financial assets and liabilities.
Parent Company Financial Statement
121 | Annual Report | 2024
Note 30 - Capital Structure
T.DKK
2024
2023
The financial gearing at the balance sheet date can be
summarized as follows:
Lease liabilities
55.278
58.021
Cash and cash equivalents
-21.540
-8.764
33.738
49.257
Equity
286.783
228.382
Financial Gearing Ratio
11,8%
21,6%
Note 31 - Events After the Balance Sheet Date
There have been no events occurring after the end of the financial year that would
require adjustment or disclosure in the annual report.
Parent Company Financial Statement
122 | Annual Report | 2024
cBrain A/S
Kalkbrænderiløbskaj 2
DK-2100 Copenhagen
Denmark
+ 45 7216 1811
info@cbrain.com
Nasdaq symbol: CBRAIN
www.cbrain.com
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