In brief
Business and strategy Performance Corporate governance Financial statements
Nuuday Annual Report 2022 2
In brief 3
Nuuday at a glance 4
Letter from CEO 5
Key highlights of 2022 8
Financial overview 9
Business and strategy 10
Our business model 11
Delivering on our strategy 13
Performance 17
Nuuday’s performance 18
Corporate governance 20
Corporate governance
statement 21
Risk management 22
Sustainability highlights 29
Board of Directors 31
Executive Management 33
Financial statements 35
Parent company financial
statement 81
Management statement and
independent auditor’s report 99
Contents
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Business and
s
trategy
page
10
Letter
from
the
CEO
page
5
In brief
Business and strategy Performance Corporate governance Financial statements
Nuuday Annual Report 2022 4
* Underlying EBITDA/ CAPEX, excl. transformation costs
In brief
Business and strategy Performance Corporate governance Financial statements
Nuuday Annual Report 2022 4
Nuuday at a glance
Nuuday
is Denmark’s leading telecoms service provider consisting of eight consumer
and business brands spanning connectivity, communication and entertainment
– all
with the shared goal of helping customers make sense with technology.
5.8
m
Customer relations (RGUs) at Nuuday
Our customer
relations
1.8
m
Business, incl. mobile partners
4.1m
Consumer
3,515
Employees excl. transformation FTEs
Revenue
(DKKbn)
14.7
EBITDA*
(DKKbn)
1.8
CAPEX*
(DKKbn)
1.1
Our brands
In brief
Business and strategy Performance Corporate governance Financial statements
Nuuday Annual Report 2022 5
T
he Nuuday team looks back on 2022
with substantial pride as a year when we
rapidly accelerated our transformation.
On arriving in June 2021, I set out the
ambition to fundamentally transform
Nuuday into a best-in-class telco on a
par with key European peers. Specifi-
cally, we want to be the preferred pro-
vider for Danish consumers and busi-
nesses, delivering the best customer
experiences and in the most digital way.
In 2022, we took the first major steps to
deliver on that promise, as we laid the
foundations for the new Nuuday.
Technology – a new modern IT stack
We have begun replacing our legacy
technology systems, some of which are
up to 40 years old and no longer suitable
for the modern telco market. Not only
have they contributed to an excessive
cost base, but they have also inhibited
our ability to design the very best cus-
tomer experiences and shift our interac-
tions with our customers to the digital
world.
After a rigorous RFP process, in June we
signed a contract with Netcracker to
replace our complex legacy systems with
a new modern IT stack. Our strategy is
radical; to replace our entire BSS and
OSS stacks with a ‘best of suite’ (i.e. an
end-to-end) ‘greenfield’ cloud-based IT
stack. Given the age of our existing sys-
tems, we rejected the more typical telco
IT transformation – ‘best of breed’ –
which replaces certain components and
had been tried multiple times at TDC
without success.
Our chosen approach will accelerate
implementation, provide easy access to
product development shared with major
telcos worldwide, and radically lower
costs inside and outside IT while consid-
erably enhancing the stability and secu-
rity of our technology.
Together with Netcracker, we have
made excellent progress. We will launch
in H2 2023 with our consumer business,
and we have already successfully com-
pleted the key work for phase 1 in
accordance with our timelines by the
end of 2022. This includes simplifying our
product portfolio and completing the
blueprinting and design phases.
Improving our customer experience
In advance of the new technology plat-
form, we have made very significant
progress in transforming the
Letter from the CEO
Delivering the
new Nuuday
In brief
Business and strategy Performance Corporate governance Financial statements
Nuuday Annual Report 2022 6
performance of the Nuuday business –
both concerning sales but critically also
in raising the quality of our customer
experience, which is central to the prom-
ise we made after my arrival in mid-2021.
Material improvements in our customer
experience followed in 2022, thanks to
a wide-ranging programme of improve-
ments across our processes, online
resources, customer journeys and work
on stabilising and streamlining our legacy
technology stack.
For example:
• The overall volume of customer calls
to YouSee fell by 11% in 2022, once
again reflecting improvements in the
design of our customer journeys.
• Introducing the Genesys call handling –
or CXM – platform during 2022 across
our key businesses led to a materia
l
im
provement in our ability to handle
call traffic efficiently, in line with cus-
tomer expectations.
• We dramatically improved the preci-
sion of fibre delivery – the percentag
e
of
customers who received their fibr
e
in
stallation on the date origina
lly
promised – from a ‘worst in class’ 20%
at the beginning of 2022 to a respect-
able 70% by the end of the year. In
parallel, we also halved our average
delivery time thanks to improved
cooperation with our network opera-
tor partners.
• Overall, our brand Net Promoter Score
(bNPS) improved across all the Nuuday
brands by 6 points during the year, in-
cluding a rise of more than 15 points for
YouSee – our leading consumer brand.
Meanwhile, we have been investing
steadily to improve the quality and value
propositions offered by our product
portfolio to match the best that Euro-
pean telco peers can offer.
YouSee launched YouSee Play – our new
TV & streaming offering that allows cus-
tomers to combine traditional flow TV
channels with streaming services at af-
fordable price points – and, for the first
time, customers can opt not to have a
set-top box. We have been pleased by
the consumer response to YouSee Play,
which has helped generate a sales uplift
of 40%, and by the positive reaction of
housing associations to the product. This
integration of streaming allowed us to
merge YouTV – our previous OTT TV of-
fering – into YouSee’s overall entertain-
ment proposition at the end of 2022.
TDC Erhverv also invested significantly
in reshaping its proposition, by improving
and repositioning its offerings for the
SMB segment during Q3. We also in-
vested materially to strengthen our
security solutions, including our 24/7
Security Operations Center, which has
resulted in a significant influx of new
customers who prioritise security –
especially given the higher risks facing
Danish public and private organisations
from early 2022 onwards.
Accelerating our business
transformation programme
In 2022, we saw a shift in pace and direc-
tion from the business, as we aim to
upgrade from a ‘legacy’ telecoms pro-
vider with poor systems and customer
experiences into a ‘best in class’ digital
service provider on a par with the best in
Europe.
None of this would be possible without
high levels of motivation and enthusiasm
for the change among our colleagues.
This is an area we have invested in heav-
ily, and I am delighted with the extent to
which our Nuuday colleagues have em-
braced both the need for the transfor-
mation and our strategy for delivering it.
As a result, we saw significant gains in job
satisfaction over 2022, with our internal
eNPS and eSAT scores jumping 7 points
and 2 points, respectively – Nuuday now
outperforms the average achieved by
larger Danish businesses and is on a par
with the highest performers in key cate-
gories. Excitement about being part of
the largest transformation in Danish tel-
ecoms history is a key motivator for the
wider business – as it is for me and my
management team.
This enthusiasm is also reflected in the
efforts we have made to support a gen-
uine transformation among our people.
As part of accelerating the shift from a
legacy to a digital challenger mindset, we
have developed an important and chal-
lenging training programme to enhance
the ‘cognitive diversity’ of our population
and embrace approaches that differ
from those they might have chosen his-
torically. This has been an important ele-
ment of our successful transformation
during 2022.
We also continued to make steady pro-
gress with our sustainability agenda. Our
strategy includes a focus on online edu-
cation for children and improving the
sustainability of our product offerings,
while ensuring we secure our Ecovadis
platinum rating – among the global top
1% of companies for corporate sustaina-
bility performance.
Our work on transforming our products,
customer experience, technology and
work practices is steadily improving our
financial performance and is central for
our long-term financial ambitions.
In 2022, Nuuday performed in line with
its financial guidance. Service revenue
grew slightly by 0.5% YoY, as growth in
mobile services and high-speed broad-
band, driven by both customer growth
and price adjustments, offset the decline
in legacy services such as PSTN and TV.
Gr
oss profit declined by 2.9% YoY, to DKK
4.847bn, due to increasing energy prices,
increasing costs from switching to fibre,
and increasing third-party content
costs.
With Nuuday entering the next stages of
its transformation programme, we be-
gan reporting transformation costs
1
sep-
arately from Q2. For the full year, un-
derlying EBITDA (excl. transformation
Letter from the CEO
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 7
costs) dropped by 3.1% but we experi-
enced a positive trend through the year
as our customer base stabilised and we
began to realise efficiency gains; Q4
EBITDA grew by 14.3% compared with
EBITDA in Q4 2021.
From a broader perspective, we collabo-
rated with network operators and
regulators to ensure that the Danish
telecoms landscape, particularly in fixed
services, operates with consumers’
interests in mind.
The evolution of the Danish market has
created a patchwork of multiple infra-
structure operators, in many cases
effective monopolies, but with a light
touch approach to regulation of quality,
and multiple different technical
approaches. Particularly in a market
of Denmark’s scale, this causes undue
complexity, higher costs and weaker
incentives to innovate, which ultimately
impacts Danish consumers and busi-
nesses. We are working to encourage a
shift to a more ‘European’ model that
allows service providers such as Nuuday
to create low-cost, standard offerings
across Denmark while also incentivising
innovation – notably in the B2B market.
2023 outlook
2023 will be a crucial year for Nuuday's
transformation as we launch our con-
sumer business on the Netcracker plat-
form, starting with our mobile business in
Q3 2023. Together with our highly dedi-
cated and talented employees, I enter
2023 full of confidence that we will main-
tain our strong transformation pace
from 2022 and will take important steps
in 2023 towards delivering the new
Nuuday.
Jon James
CEO of Nuuday
1
Transformation costs exclusively comprise costs that will cease on completion of the transformation, and that are directly related to Nuuday’s comprehensive business transformation, e.g.
direct IT costs, external expenses and personnel costs for resources working on the transformation, as well as extra costs from running parallel systems during the transformation. T
ransfor-
mation costs are fully funded, i.e. costs related to Nuuday’s transformation are covered by Nuuday’s current cash balance.
Letter from the CEO
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 8
Key highlights of 2022
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 8
Strengthened entertainment
universe
We added SkyShowtime, Disney+ and
more streaming services to Telmore
Play and YouSee, making us the only
provider of all streaming channels
under one roof
Live on all major
utility networks
YouSee, TDC Erhverv and Hiper
continued to launch broadband and
TV offerings on new utility fibre
networks, notably the Energi Fyn,
Fibia and Thy-Mors fibre networks.
Nuuday now has a truly nationwide
fibre footprint
Partnered with Netcracker
to build new IT stack
We signed a contract with
Netcracker to replace our complex
legacy systems with a new modern IT
stack and to become a best-in-class
digital service provider
Repositioned TDC Erhverv
in the SMB segment
TDC Erhverv repositioned itself in the
SMB market with integrated
telecommunications and IT security
solutions featuring increased
convenience and cybercrime
prevention
Successfully launched
YouSee Play
YouSee launched YouSee Play as our
new TV & streaming service offering
customers maximum flexibility and
choice at attractive price levels
2022
2023
Relief and support
for refugees
Nuuday offered free telephony to
and from Ukraine as well as making
multiple donations. YouSee also
spearheaded an initiative to donate
20,000 free SIM cards to Ukrainian
refugees arriving in Denmark
New CFO – completes Nuuday’s
leadership team
Henrik Christiansen joined Nuuday
as new CFO on 1 August, completing
the leadership team that will execute
on Nuuday’s transformation.
In parallel, eesy and Relatel
appointed new CEOs
Growth in mobile & high-speed
broadband – key strategic areas
Nuuday significantly outperformed
previous years, with a mobile
subscriber base that grew each
quarter, and consumer broadband
returning to growth in Q4 for the
first time since Q1 2016
Best network for the 7
th
consecutive year
Nuuday’s mobile voice customers
have access to Denmark’s best
network for the 7
th
consecutive year
– now with 5G access for customers
with eesy and TDC Erhverv one+
Key milestone passed ahead of
time
At the turn of 2022/2023, Hiper
passed a key milestone six months
ahead of time and now provides a
best-in-class network and service for
more than 100,000 Danish
households
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 9
2022 2021 2020 2019
Income statement (DKKm)¹
Revenue
14,674 14,657 14,756 15,625
Hereof service revenue 13,275 13,213 13,341 14,227
Gross profit
4,847 4,993 5,318 5,895
Underlying EBITDA
2
1,766
1,823
1,936
2,035
EBITDA
1,709
1,823
1,936
2,035
Operating profit/(loss) (EBIT)
93 (13) (77) 164
Profit/(loss) before income taxes
(227) (413) (470) (204)
Profit/(loss) for the year
(190)
(390)
(410)
(128)
Income statement, excluding special items
Operating profit (EBIT)
159 111 46 219
Profit
/(loss) before income taxes (161) (338) (347) (151)
Profit
/(loss) for the year (138) (342) (313) (87)
Balance sheet (DKKm)
Total assets
17,448 17,776 17,669 19,101
Net interest
-bearing debt (NIBD) (2,827) (8,530) (9,647) (9,861)
Total equity
6,543 386 776 1,192
Underlying capital expenditure
2
(1,136) (1,149) (1,431) (1,517)
Capital expenditure
(1,314)
(1,149)
(1,431)
(1,517)
Statement of cash flow (DKKm)
Operating activities
959 2,146 1,643 1,322
Investing activities
(1,316) (970) (1,348) (1,601)
Financing activities
755 (1,174) (323) 298
Total cash flow
398 2 (28) 19
2022 2021 2020 2019
Key financial ratios (%)
Service revenue growth
0.5 (1.0) (6.2) (1.1)
Gross margin
33.0 34.1 36.0 37.7
EBITDA margin
11.6 12.4 13.1 13.0
EBIT margin
0.6 (0.1) (0.5) 1.0
Equity
ratio 37.5 2.2 4.4 6.2
Retail RGUs ('000)
Mobile subscriptions
3
2,847 2,805 2,726 2,761
TV
949 985 1,037 1,177
Broadband
4
1,036 1,049 1,091 1,170
Landline voice
5
324 395 466 470
Employees
FTEs (end
-of-year) 3,615 3,686 3,985 4,515
FTEs Consumer
1,939 2,033 2,197 2,552
FTEs Business
964 971 1,056 1,193
FTEs Other
712 682 732 770
1 Nuuday A/S was established on 7 December 2018. On 11 June 2019, the parent company TDC A/S demerged parts of its rights and obli-
gations to Nuuday A/S. The financial statements reflect the demerger of TDC A/S, which had accounting effect from 1 January 2019.
Prior to the demerger, Nuuday A/S had no activities, and the comparative figures for 2018 have not been restated.
2 Excluding transformation costs.
3 Comparative figures have been restated to include Nuuday-owned brand RGUs previously recognised as wholesale customers in
Nuuday Mobile Partners and exclude Telmore debt collection customers. In addition, following the demerger of TDC A/S into Nuuday
and TDC NET, comparative figures have been adjusted to include TDC NET employees in the RGUs that were previously excluded.
4 Comparative figures have been adjusted to include BTO fibre.
5 Following internal migration of customers and alignment of accounting methods in Q2 2020, the level of landline voice RGUs has in-
creased. The migration had no impact on revenue or the result.
Financial overview
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 11
Our business
model
Nuuday
is Denmark’s leading telecoms
provider
, with a strong and diverse portfolio
of brands and products. We are engaged in
almost
six million customer relations across
consumer and business segments. Our
brands provide Danish consumers and
businesses with high
-speed broadband and
best
-in-class mobile connectivity, flexible TV
& streaming propositions, and a broad suite
of advanced business solutions
, including
cybersecurity, unified communications and
digital collaboration
.
#1
market position in DK across consumer
broadband, TV, mobile voice, as
well
as B2B services
5
.8m
customer relations
(RGUs) in total
Consumer brands
Mobile
Denmark’s third
-largest consumer mobile brand,
offer-
ing
a superior customer experience and uniquely mo-
bile & streaming with Telmore Play
Broadband
Pure
-play internet challenger delivering high-speed
broadband
with great value for money
TV, mobile and broadband
Denmark’s leading triple play telecommunications and
entertainment
provider, with more than 1.5 million
Danish households as customers
Mobile
Digital and fast
-growing mobile brand providing
easy, value
-for-money mobile connectivity
on Denmark’s best network
An OTT TVOD streaming service
The preferred digital movie rental platform for
movie lovers, with market
-leading breadth and
depth of choice.
(On 7 March 2023,
we announced that Blockbuster was beeing acquired by SF Anytime. The transfer of ownership will take place over a 6-
month period ending 31 August 2023).
Business brands
Mobile, broadband & network
services as well as security, uni-
fied communications & digital col-
laborating and IoT
Denmark’s market leader in B2B
telecommunications
with a broad
portfolio of solutions
An advanced network, unified
communications & digital
collaboration
,
and cyber security
Leading provider of advanced
integrated B2B solutions and
security operation centr
e services
Mobile, mobile broadband and
innovative switch software
A m
obile B2B brand focused on
providing SMB
s with great prod-
ucts and services at attractive
prices
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 12
We have Denmark’s strongest range of partnerships to ensure our customers can access
Denmark’s best mobile and fixed networks, best-in-class entertainment and leading-edge business offers
Denmark’s
best mobile
network
Leading high-
speed broadband
coverage
Superior
entertainment
portfolio
Best-in-class
business
solutions
Our unique partnership with
TDC NET gives us access to the
best-in-class 5G mobile network,
assessed as the best coverage
and quality network for the 7
th
consecutive year
Through our partnerships with
the leading Danish fibre and
cable networks, we provide access
to high-speed broadband for the
vast majority of Danish house-
holds and businesses
With the best and most
relevant entertainment catalogue,
and through strong partnerships
with both domestic and interna-
tional content providers, we offer
our customers access to a w
orld of
entertainment from both streaming
services as well
as broadcasters
Through well-established business
partnerships with industry leaders
such as Cisco and Microsoft, we of-
fer our business
customers flexible best-in-class
solutions within areas such as
cyber security, digital collaboration
and unified communications
Our network partner:
Selection of our partners:
Selection of partners:
Selection of partners:
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 13
Nuuday’s clear ambition is to be a European best-in-class telco and the preferred
service provider for Danish households and businesses. To reach this goal, Nuuday set out a
new strategic direction in 2021 that is guiding Nuuday’s far-reaching transformation.
In 2022, Nuuday made substantial progress across all its three strategic pillars,
demonstrating its ability to deliver tangible results on a well-defined strategy.
Best
choice
The best choice for Danish consumers and businesses
Strategic focus areas
Across a strong brand portfolio with diverse value propositions, we aim
to offer our customers the best choice, through all
-encompassing, flexible,
and innovative products based on leading
-edge technologies
Best
experience
Deliver the best customer experience
Strategic focus areas
We are determined to provide Danish consumers and businesses with seam-
less journeys and meet them on their preferred channels
– an aim shared by
all our brands
Most
digital
Digital transformation through radical simplification
Strategic focus areas
By radically simplifying our business model and transforming our IT, we seek to
innovate and continuously deliver the best products and services as well as
the best digital experiences to our customers
Delivering on our strategy
Deliver best-in-market
connectivity
everywhere
Innovate entertainment
and business solutions
Provide excellent value
for converged house-
holds and businesses
Systematically
eliminate pain points
Create smooth and
seamless customer
journeys
Provide excellent value
for converged house-
holds and businesses
Simplify business
model
Transform IT
foundation
Digitalise our
customer interactions
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 14
2022: Expanding our best
-in-class range
In 2022, we
launched various initiatives supporting our aspiration to
be the Best Choice for Danish consumers and businesses. We further
expanded our high
-speed broadband footprint by entering into new
partnerships with utilities across the country.
We further improved
our 5G experien
ce in collaboration with TDC NET, and once again re-
ceived
top external recognition from Teknologisk Institut for our ef-
forts
– by winning Denmark’s best mobile network award for the 7th
consecutive year. Within entertainment, YouSee Play, a fully
flexible
entertainment service
, went live, combining traditional TV channels
with
innovative streaming services. We also strengthened our con-
tent
by adding Disney+, SkyShowtime and Nordisk Film+ to the
streaming selection universe at both YouSee and Telmor
e Play.
Best choice
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Highlight
initiatives
To meet the increasing demand for flexible entertain-
ment solutions, we launched YouSee Play, a new enter-
tainment universe combining TV channels and streaming
services,
at attractive price levels – with no fixed, basic
package requirement
Hiper, our high
-speed broadband challenger
brand, was awarded “best value
for money” by
Loyalty
Group for the 3rd consecutive year
We increased our focus on supporting small and medium
-
sized businesses
, based on their day-to-day operating needs
.
For
example, InternetFilter is now an integral part of TDC
Erhverv’s broadband
portfolio, reflecting how security solu-
tions
are becoming even more crucial to businesses, irre-
spective of industry and size
While expanding our collaboration with Fibia, we went
live on Energi Fyn and Thy
-Mors Energi utility fibre
networks
– and now offer high-speed fibre connec-
tions to
an additional 250,000 households, while deliv-
ering across all major fibre networks
For the
7th consecutive year, we were delighted to of-
fer Denmark’s best mobile network to our customers,
creating unparalleled quality for our customers across
5G
-coverage and speed dimensions
Nuuday Annual Report 2022 14
At TDC Erhverv, we are determined to
remain the Best Choice for Danish busi-
nesses
– also long term. In 2022, we con-
tinued pushing innovation forward by initi-
ating a new drone project in collaboration
with Falck. Aiming to save lives through
faster and more efficient transportation
of blood samples and medicine, it is a
prime example of how 5G technology can
benefit everyone in the future
– John Henriksen, Head of TDC Erhverv
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 15
2022: Ongoing innovation brings tangible improvements
During the year, we demonstrated tangible improvements across our
key customer experience parameters. Th
is progress resulted from
vari
ous initiatives spanning from tools and processes to ways of
working.
For instance, by completely revamping its service organisa-
tion,
Hiper significantly reduced waiting times and improved its tNPS
by
30 points. TDC Erhverv introduced a new online portal for end us-
ers and further
streamlined its
customer communication, resulting in
43
,000 fewer incoming calls. In terms of fibre delivery, better inter-
nal processes
at Nuuday combined with more efficient external col-
laborations
halved delivery times and raised precision rates from a
less than
satisfactory 20% to a decent 70%. New initiatives and
improvements such as these hel
ped improve Nuuday’s overall bNPS
by 6
points during 2022.
Best experience
Nuuday Annual Report 2022 15
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Highlight
initiatives
Omni
-channel support enables us to handle enquiries more ef-
ficiently while delivering
a better customer experience. In
2022, we successfully onboarded
Genesys, a global leader in
the CX platform
space – a partnership that generated tangi-
ble progress on our key service parameters and help
ed drive
our NPS to the highest level in many years
In 2022, eesy added MobilePay as a payment option, mirroring
how customer preferences are becoming more seamless, and
demonstrating
how we constantly aim to improve every step
of
our customers
’ digital journeys. Building on an already leading
platform, thi
s helped sustain eesy’s remarkable bNPS of 60+, a
top ranking among its European peers
Hiper, eesy and Relatel, some of our digital chal-
lenger brands, are all
Trustpilot category leaders
with impressive 4
.6–4.7 scores – a testament to the
digital
-enabled efforts our frontline employees put
into serving our customers every day
We are delighted to
be recognised for offering the
best customer experience
, which boosted our cus-
tomer loyalty and recommendations. Our high
-speed
broadband brand, Hiper, was awarded
the title of
“Most recommended brand” by Loyalty Group with
a
higher
Net Promoter Score than its peers
We continue to deliver tangible progress on our ambition to
deliver the best experiences across our products and services
This year, we saw significant improvements in our tNPS scores
reflecting how we strive to deliver great experiences in every
customer interaction. In addit
ion, strengthened collaboration
with utility partners has enhanced our fibre journeys, and we
also saw a drastic decline in incoming calls as a result of our
data
-driven efforts to systematically eliminate pain points
- Michael Stinner, Head of CX & Transformation
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 16
2022: Landmark partnership and successful project
launch
Our digital transformation
embraces all our brands, departments
and products
, and we are constantly implementing value-
adding digi-
tal initiatives across these areas. Nonetheless, our
IT transformation
programme
is the overarching IT project that will truly enable us to
become a European best
-in-class telco and the service provider pre-
ferred by
both Danish households and businesses. We are therefore
thrilled to have entered a new partnership with Netcracker
that
equips
us to utilise its state-of-the-art, cloud-native portfolio and
professional services
to replace our complex legacy systems with a
new modern IT stack
while we re-
engineer our commercial and oper-
ational processes. This truly transformative partnership will help us
become a lean
and digital service provider. We had already finalised
our blueprinting phase just six
months after launching the project
and
are now on track to deliver the new Nuuday!
100
40
29%
IT legacy systems are being
replaced with an out
-of-
the
-box solution as part of
our digital transformation
y
ears is the age of our
oldest operating IT system,
reflecting the massive
potential for IT efficiency
gains
of
products
have already
been simplified as part
of
our product simplification
campaign
Most digital
Nuuday Annual Report 2022 16
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Highlight
initiatives
Our landmark strategic partnership with
Netcracker, a global leader in Gartner’s
magic
quadrant with a proven track record of
successful transformative Telco projects, is
the pivotal
element of our transformation
journey
We constantly seek to digit
alise every customer interaction,
and concrete initiatives in 2022 include
d creating
online portals,
implement
ing digital payment solutions and integrating trans-
parency in our onboarding process. As a result, we received 11%
few
er incoming calls and significantly
increased our digital sales
share
We are continuously digit
alising all areas of our op-
erations, and in 2022, implemented Adobe’s leading
marketing software solutions
. We are pleased to
see
that our marketing ROI has already improved
alongside better, tailored customer interactions
Nuuday’s business transformation relies heavily on IT, and in 2022,
we entered into a landmark strategic partnership with Net-
cracker.
Its proven track record of successful, on-time IT trans-
formation program
mes for leading European telcos based on out-
of
-the-box solutions inspired confidence during the selection pro-
cess. Our joint efforts in the project organi
sation have clearly
shown
that we have embarked on a transformation journey with
the ideal partner. We are
on track – and we are positive that
Nuuday will become the most digital
telco in Denmark
- Monika Gullin, CTO
Nuuday Annual Report 2022 18
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Revenue
(DKKm)
14,674
Service revenue
(DKKm)
13,275
Gross profit
(DKKm)
4,847
Underlying Opex
(DKKm)
3,081
Underlying
EBITDA
(DKKm)
1,766
1 From 2022, Nuuday began reporting transformation costs separately
from its underlying business performance. Transformation costs
exclusively comprise costs that will cease on completion of the trans-
formation, and that are directly related to Nuuday’s comprehensive
business transformation, e.g. direct IT costs, external expenses and
personnel costs for resources working on the transformation as well
as extra costs from running parallel systems during the transfor-
mation. The costs of transformation are fully funded, i.e. the costs
of Nuuday’s transformation are covered by Nuuday’s current cash
balance.
Our financial performance reflects the phase we have
reached in our transformation; we are clearly focused
on investing in our customer experience and
comprehensive business transformation.
The benefits of our efforts are already visible in im-
proved customer numbers, stable service revenue and
improvements in operating expenditure in our underly-
ing business.
At the same time, we are investing materially to drive
the business transformation; overall, we will invest more
than DKK 1bn to complete our transformation. This will,
over time, produce a sustainable, efficient and profita-
ble business that delivers innovative products and ex-
cellent customer experiences in a truly digital manner.
Service revenue
The company’s success in stabilising its customer base
was reflected in slightly growing service revenue, up
0.5% to DKK 13,275m. This rise in service revenue was
driven by a continued strong performance in the
mobile segment, offset by declines in legacy products
and a modest decline in broadband – though with an
increase in our high-speed broadband base. Service
revenue in the mobile segment grew by 3.6%, driven by
increasing ARPU at Telmore, and eesy’s growing cus-
tomer base, along with increased A2P SMS prices and
international roaming activity at Mobile Partners.
Gross profit
Gross profit decreased by 2.9%, or DKK 146m, to
DKK 4,847m. The decline was driven by costs related
to customers migrating from legacy products (such as
DSL) to future-proof high-speed products, increased
energy costs and continued increase in third-party
network and content costs.
Nuuday’s performance
•
In 2022, we stabilised or grew our key strategic areas, following several years of declining
customer volumes.
•
Mobile voice RGUs grew steadily each quarter, totalling net adds of 42,000 throughout 2022,
while we successfully increased broadband RGUs in Q4 2022, for the first time in seven years.
•
Revenue increased slightly by 0.1% with a 0.5% increase in service revenue, driven by strong
performances in mobility services and high-speed broadband.
•
Underlying EBITDA (excluding transformation costs
1
) declined by 3.1%, driven mainly by gross
profit margin pressure and increasing third-party costs against the background of
stabilisation in our core business.
•
Underlying capital expenditure dropped slightly by 1.1% but, when including transformation
costs related to Nuuday’s technology transformation, capital expenditure rose by 14.4%,
as we began the significant investment in building the new Nuuday.
Nuuday Annual Report 2022 18
Nuuday Annual Report 2022 19
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Underlying Capex
(DKKm)
1,136
Loss excl
uding special
items
(DKKm)
138
Cash flow from
operating activities
(DKKm)
959
Employees
excluding
transformation FTEs
(EoY
)
3,515
Operating expenses
Nuuday’s underlying operating expenses (excluding
transformation costs) declined by 2.8%, or DKK 89m, to
DKK 3,081m. This decrease reflected the early benefits
of our transformation, notably the impact of improved
customer experiences on reducing our call ratio.
EBITDA
Underlying EBITDA (excluding transformation costs)
declined by 3.1%, or DKK 57m, to DKK 1,766m. Including
transformation costs, EBITDA declined by 6.3%, or
DKK 114m, to DKK 1,709m. Despite positive developments
in service revenue, and falling operating expenses,
EBITDA was negatively influenced by the decline in
gross profit margins, primarily from third-party costs.
Capital expenditure
Capital expenditure excluding transformation costs
decreased by 1.1%, or DKK 13m, to DKK 1,136m. This decline
was driven mainly by lower capitalised wages as we re-
duced investment in our legacy IT systems prior to the
Netcracker launch. This was partly offset by an increase
in volume-driven capex related to customer installations.
Capital expenditure including transformation costs
increased by 14.4%, or 165m, to DKK 1,314m. The increase
was driven primarily by higher IT investments related
to the transformation programme.
Loss for the period
After amortisation, interest expenses, etc., the loss (ex-
cluding special items) amounted to DKK 138m. Despite
transformation costs of DKK 57m in 2022, this was an im-
provement of DKK 204m YoY. Including special items, the
loss improved by DKK 200m to DKK 190m. The improved
results were driven largely by reduced amortisation.
Cash flow
Total cash flow increased by DKK 396m from DKK 2m in
2021 to DKK 398m in 2022. The positive development
was caused primarily by the transfer of Nuuday’s share
of TDC Holding’s cash pool (DKK 865m) to its own bank
accounts with effect from 1 January 2022. This was
partly offset by the negative development in cash flow
from investing activities (DKK 346m).
Cash flow from operating activities declined by
DKK 1,187m to DKK 959m, driven primarily by net working
capital (DKK 1,225m) that related mainly to the imple-
mentation of adjusted intra-group payment terms in
2021 in connection with the refinancing of Group debt.
EBITDA also contributed negatively to the development
(DKK 114m), which was partly offset by lower net inter-
est paid (DKK 136m) related to refinancing.
The DKK 346m increase in cash outflow from investing
activities to DKK 1,316m, was due primarily to higher in-
vestments (DKK 194m), divestment of Cloudeon in 2021
(DKK 97m) as well as acquisition of activities from
TDC Holding (DKK 51m).
Cash flow from financing activities increased by
DKK 1,929m to DKK 755m. The above-mentioned change
in net working capital was used to reduce amounts
owed to Group companies (DKK 1,095m), while Nuuday’s
share of TDC Holding’s cash pool was transferred to
Nuuday (DKK 865m).
2022 guidance follow-up
EBITDA performance in 2022 was in line with our guid-
ance; namely that EBITDA would be somewhat lower in
2022 compared with 2021, driven by significant invest-
ments in customer experiences as well as the continued
migration of customers to fibre infrastructure. Cash
generation was, as guided, materially lower in 2022 than
in 2021 driven by the development in net working capital
combined with the IT transformation.
2023 guidance
We expect a flat development in service revenue in
2023, which will be a year with significantly higher
investments in our business transformation, as well as
continued migration of customers to fibre infrastruc-
tures. Consequently, we expect that both EBITDA
including and excluding transformation costs will be
somewhat below the level in 2022.
Nuuday Annual Report 2022 19
Nuuday Annual Report 2022 21
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 22
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 23
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 23
Input
“Disclosure of information due
to an external attack”
Questionnaire
System/application/service
Risk details
1-6 x 1-6 Scale
Treat, tolerate, terminate
or transfer?
The
process
Output
“Disclosure of information in
Salesforce due to leaked
administrator credentials”
How does the risk compare
with other risks?
“Validate that X, Y, Z have been
implemented to…”
Are we within risk appetite, or
do we need another response
task?
Ensure the risk stays at the
expected level
Risk statements
Risk
assessments
Entity
Risk criteria
Heatmap
Risk response task
Risk identification
– something worries us
Evaluation
– How severe?
Respond to risk
– Action to take?
Strategy
implemented
– how do the actions affect
the risk?
Monitor risk
– regular checks and
surveillance for change
in status
Risk
Heatmap
Risk response task
Result
Reports and
dashboards
Nuuday Annual Report 2022 24
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 25
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk &
trend
Risk domain
Details &
impact
Mitigation initiatives
New or current competitors
taking market share
Stable
Commercial
Denmark has a competitive
telecommunications landscape.
Increased competition and continuing price pressure
affect Nuuday’s ability to establish sustainable pricing in
B2C and B2B markets.
•
Improve customer experience through fully digital
customer journeys
•
Retain best network status
•
Continue to provide high-quality services and improve
NPS
•
New attractive product releases
Forced price increases
from suppliers
Stable
Commercial
Nuuday relies on a number of suppliers
for support in
deliver
ing products and services. Increases in prices from
key suppliers can
erode profit margins and negatively
affect Nuuday brands’ competitiveness.
•
Improving contractual terms
•
Reduce costs on major expenses (i.e. move to own
IP core)
Consumer savings
– “downspin”
Increasing
Commercial
We are seeing inflation, pressure on salaries,
with a trend
of people
generally spending less money. Consequently,
people are
choosing to save on, for example, mobile phone
subscriptions
by choosing cheaper packages, thus lowering
the Average Revenue Per Unit.
This could potentially
spread into TV and
broadband segments.
•
Monitoring market tendencies
•
Continue to strengthen areas of differentiation (network
quality and 5G)
•
Offer highly competitive and attractive propositions
across all consumer brands
•
Address the entirety of the consumer and business
mobile market
Entertainment content: price
increases and
taxation
Increasing
Commercial
Content producers continue to raise their prices for
entertainment, which particularly affects the YouSee
& Telmore brands.
On TV, increasing price pressure from streaming providers
coupled with increasing
content costs (especially related
to premium sports) could further accelerate existing
downward trends, w
ith customers ‘shaving’ or ‘cutting’ the
cord on their TV subscription
s.
Additionally,
the Government has suggested to submit a
proposal
to the Danish parliament to add a value-added
tax
on copyrighted material. This would have a heavy
impact on the viability of existing business models.
•
Optimise products and pricing to ensure that TV
packages remain relevant for as many customers as
possible
•
Invest in developing attractive next-generation
entertainment products to cater for the rapidly growing
combi-viewer segment that values both streaming and
TV channel content
•
Pursue a full household strategy and incentivise
purchasing multiple services and products
Nuuday Annual Report 2022 26
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk &
trend
Risk domain
Details &
impact
Mitigation initiatives
Nuuday Annual Report 2022 27
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk &
trend
Risk domain
Details &
impact
Mitigation initiatives
IT &
business transformation
Stable
Transformation
Execution /
Human
Resources
Nuuday is progress
ing with its transformation, which is key
in engaging customers, increasing productivity, and
guaranteeing high
-quality services in the future.
A
number of risks are associated with this transformation,
such as employee engagement, human resource
management, technical integrations and de
-coupling of
legacy IT.
The materialisation of risks affecting the transformation
of Nuuday’s IT stack and business is in focus, and
the
identified risks are being broken down at programme and
project level to prioritise appropriate mitigation efforts
before the risks are realised.
•
Management reiteration of transformation plan and
Nuuday’s strategic objectives at town hall meetings to
inspire confidence in direction and journey
•
Handle programme risks in collaboration with risk
domains and steering groups to find suitable solutions
•
Seconding of workforce supporting legacy IT systems to
calm employee concerns
•
Use feedback from employee surveys to strengthen
satisfaction, motivation, loyalty and culture
•
Ensure targets and expectations are clear to all
employees
•
Reinforce a culture of ongoing feedback, and focus on
continuous development
Political & legal changes
Stable
Image, PR & Public Affairs
EU and national governmental changes often lead to new
political objectives. With these new objectives, we often
see political decisions or new legislation. Depending on the
magnitude, these changes can profoundly affect Nuuday’s
ability to carry out its b
usiness and/or fulfil operational
targets.
•
Nuuday participation in industry groups and discussions
on proposed legislation
•
Continued dialogue with authorities, politicians and
municipalities
Financial risks
Finance
See Financial
Statements – Section 4.3 “Financial Risks” for
details
•
N/A
Human rights
Stable
Image, PR & Public Affairs /
Legal & Compliance
Nuuday has
responsibility for our direct employees, the
employees of partners and companies in our
supply chain,
including the risk of forced labour, discrimination or
harassment and misuse or loss of personal data, or data
breaches.
If Nuuday or Nuuday partners violate fundamental human
rights
, this may lead to legal action as well as bad publicity
and customer reactions negatively impacting Nuuday.
•
Procedures and policies & partner code of conduct
•
Based on a thorough risk assessment, we conduct audits
at our suppliers each year, particularly screening for
adherence to the UN Global Compact Assessment
•
Industry collaboration through JAC – the Joint Alliance
for CSR
Nuuday Annual Report 2022 28
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk &
trend
Risk domain
Details &
impact
Mitigation initiatives
Anti
-corruption and bribery
Stable
Image, PR & Public Affairs /
Legal & Compliance
Nuuday is a large employer in
Denmark with suppliers
across the globe. With multiple contract relationships
there is always a risk that bribery or corrupt pra
ctices
could occur
, influencing business decisions.
If corruption or b
ribery occurs, it may lead to legal action
as well as ba
d publicity and customer reactions negatively
impacting Nuuday.
•
Anti-corruption policy commits Nuuday to complying with
the UN Convention against corruption
•
Raising awareness and putting in place resources and
training for employees
•
Whistleblower policy that allows for the anonymous
reporting of suspected wrongdoings at the company
•
Partner Code of Conduct for suppliers, partner
organisations and employees
Environment and climate
Stable
Image, PR & Public Affairs /
Legal & Compliance
Several potential environmental and climate risks may be
linked to our operations and supply chain. Nuuday has a
responsib
ility to try to reduce our own resource
consumption, emissions and waste in producti
on and to
influence partners and suppliers to act equally responsibly.
If Nuuday does not show credible action on environment
and climate matters, it may generate bad publicity and
customer reactions negatively impacting Nuuday.
•
Nuuday has set ambitious carbon emissions reduction
targets for Scopes 1, 2 & 3
•
ISO 14001 certification covering our whole operation
•
Detailed ESG reporting on climate and environment
metrics
•
Nuuday has embarked on a revised sustainability
strategy with sustainable procurement and products as
a key pillar
•
Nuuday aims to retain an Ecovadis platinum rating as a
token of recognition that Nuuday is a leader in
sustainability
Social and employees
Stable
Human Resources
/ Health
& Safety
Nuuday focuses on retaining the services of its key
personnel and invests in attracting suitable and qualified
talents to ensure a good
working environment e.g., with no
accidents or stress incidents. Nuuday's success
depends
largely on
our ability to attract and retain key personnel.
The competition for qualified personnel is intense and with
limited availability of candidates with the required
knowledge of the telecoms industry and relevant
experience in Denmark.
•
88% of employees are covered by collective agreements
•
Occupational health and safety policy and certification
to ISO 45001 standard
•
Flexible working conditions.
•
Quarterly employee engagement surveys
•
Diversity, equity, inclusion & belonging (DEIB) Policy
Nuuday Annual Report 2022 29
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 29
Nuuday Annual Report 2022 30
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2022 31
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Board of Directors
Michael Parton
Chair of the Board
Appointed (until): 2022 (2023)
Nationality: British
Year of birth: 1954
Non-independent
Board function
Shareholder elected
Chairman of the Health & Safety
Committee; member of the
Compensation & Nomination
Committee; member of the Audit
Committee
Education:
Chartered Management
Accountant
Sofia Arhall Bergendorff
Vice chair
Appointed (until): 2022 (2023)
Nationality: Swedish
Year of birth: 1969
Independent
Board function
Shareholder elected
Chairman of the Compensation &
Nomination Committee; m
ember of the
Health & Safety Committee
Education:
MBA, INSEAD, France & Singapore
Peter Nyegaard
Board member
Appointed (until): 2022 (2023)
Nationality: Danish
Year of birth: 1963
Independent
Board function
Shareholder elected
Chairman of the Audit Committee;
member of the Compensation &
Nomination Committee
Education:
MSc in Economics, University of
Copenhagen, Denmark.
Other Board positions:
Danmarks Skibskredit A/S (vice chair),
Moment Group A/S, Delete Group Oy,
Øens A/S
Søren Abildgaard
Board member
Appointed (until): 2022 (2023)
Nationality: Danish
Year of birth: 1968
Independent
Board function
Shareholder elected
Education:
AMP, Harvard Business School
Executive Education
MSc in International Marketing,
Southbank University, UK
Joe Boorman
Board member
Appointed: 2022 (2023)
Nationality: British
Year of birth: 1972
Independent
Board function
Shareholder elected
Member of the Audit Committee
Education:
Chartered Accountant,
(BA Hons.) Geography, University of
Sheffield, UK
Nuuday Annual Report 2022 32
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Board of Directors
Susana Leith-Smith
Board member
Appointed: 2022 (2023)
Nationality: Portuguese
Year of birth: 1977
Non-independent
Board function
Shareholder elected
Member of the Audit Committee;
member of the Compensation &
Nomination Committee; member of the
Health & Safety Committee
Education:
MSc in Modern History & International
Relations, University of St Andrews, UK
Other Board positions:
Arqiva Group Limited, TDC Holding A/S,
DKT Holdings ApS, DKT Finance ApS,
Telekommunikation ApS, Open Fiber
S.p.A, Womankind Worldwide
Thomas Lech Pedersen
Board member
Appointed (until): 2021 (2024)
Nationality: Danish
Year of birth: 1976
Board function
Employee elected
Education:
AU, Human Resources, Academy
Aarhus, Denmark
Other Board positions:
Association of
Managers and Employees in
Special Positions of Trust
Tobias Tolstrup
Board member
Appointed (until): 2021 (2024)
Nationality: Danish
Year of birth: 1985
Board function
Employee elected
Education:
AP, Marketing Management, Viborg
Erhvervsakademi/Manchester
Metropolitan University, Denmark/UK
Zanne Stensballe
Board member
Appointed (until): 2021 (2024)
Nationality: Danish
Year of birth: 1969
Board function
Employee elected
Member of the Health & Safety
Committee
Education:
Graduate diploma in Business
Administration (Marketing
Management), Storstrøms
Handelshøjskolecenter, Denmark &
eMBA, AVT Business School, Denmark
Nuuday Annual Report 2022 33
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Executive Management
Jon James
Chief Executive Officer
Year of birth:
1969
Education:
BA in Economics and History,
Cambridge University, UK
Henrik Christiansen
Chief Financial Officer
Year of birth:
1967
Education:
BSc in Management Accounting,
Copenhagen Business School, Denmark
Monica Gullin
Chief Technology Officer
Year of birth:
1968
Education:
MSc in Electrical Engineering, KTH
Stockholm, Sweden
Maj Britt Andersen
Chief Human Resources Officer
Year of birth:
1967
Education:
MSc in International Business and
Modern Languages, Copenhagen
Business School, Denmark
Nuuday Annual Report 2022 34
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Executive Management
Michael Stinner
Head of CX & Operations
Year of birth:
1974
Education:
Business Administration and IT, IHK Co-
logne, Germany
Christian Morgan
Head of YouSee
Year of birth:
1984
Education:
MSc in Economics and Business
Administration, Copenhagen Business
School, Denmark
John Henriksen
Head of TDC Erhverv
Year of birth:
1969
Education:
IT Technology, Tietgen Business
College, Denmark
Jens Grønlund
Head of NuuBrands
Year of birth:
1984
Education:
MSc in Strategy and Organisation,
University of Southern Denmark,
Denmark
Nuuday Annual Report 2022 36
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Consolidated income statement 37
Consolidated statement of comprehensive income 37
Consolidated balance sheet 38
Consolidated statement of cash flows 39
Consolidated statement of changes in equity 40
Notes to consolidated financial statements 41
Parent company financial statement 81
Management statement 99
Independent auditor’s report 100
Section 1 - Basis of
preparation
1.1. Accounting policies 42
1.2. Critical accounting estimates
and judgements 43
1.3. New accounting standards 43
Section 2 - Profit for the year
2.1. Revenue 45
2.2. Cost of sales 47
2.3. External expenses 47
2.4. Personnel expenses 48
2.5. Depreciation, amortisation and
impairment losses 49
2.6. Special items 49
2.7. Income taxes 51
Section 3 - Operating assets
and liabilities
3.1. Intangible assets 55
3.2. Property, plant and equipment 59
3.3. Lease assets and liabilities 61
3.4. Trade receivables 63
3.5. Contract assets and liabilities 65
3.6. Prepaid expenses 65
3.7. Provisions 66
Section 4 - Capital structure
and financing costs
4.1. Equity 68
4.2. Loans 69
4.3. Financial risks 70
4.4. Financial income and expenses 71
4.5. Maturity profiles of financial
instruments 72
Section 5 - Cash flow
5.1. Change in working capital 75
5.2. Investment in enterprises 75
Section 6 - Other disclosures
6.1. Incentive programmes 77
6.2. Related parties 78
6.3. Fees to auditors 79
6.4. Other financial commitments 79
6.5. Pledges and contingencies 80
6.6. Events after the balance
sheet date 80
6.7. Overview of group companies
at 31 December 2022 80
Nuuday Annual Report 2022 36
Financial statements
Content
Notes to consolidated financial statements
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Nuuday Annual Report 2022 37
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Consolidated income statement
(DKKm)
Note
2022
2021
Revenue
2.1 14,674 14,657
Cost of sales
2.2 (9,827 )
(9,664 )
Gross profit
External expenses
2.3 (1,372 )
(1,426 )
Personnel expenses
2.4 (1,829 )
(1,800 )
Other income
2.1 63 56
Operating profit before depreciation, amortisation and special items
(
EBITDA) 1,709 1,823
Depreciation, amortisation and impairment losses
2.5 (1,550 )
(1,712 )
Special items
2.6 (66 )
(124 )
Operating
loss (EBIT) 93
(13 )
Financial income and expenses
4.4 (320 )
(400 )
Loss before income taxes
(227 )
(413 )
Income
taxes 2.7 37 23
Loss for the year
(190 )
(390 )
Attributable to:
Shareholders of Nuuday A/S
(190 )
(390 )
L
oss for the year
(190 )
(390 )
Consolidated statement of comprehensive income
(DKKm)
Note
2022
2021
Loss for the year
(190 )
(390 )
Other comprehensive income/(loss)
Total comprehensive loss
(190 )
(390 )
Nuuday Annual Report 2022 38
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Consolidated balance sheet
Assets
(DKKm) Note 2022 2021
Non
-current assets
Intangible assets
3.1 12,764 12,916
Property, plant and equipment
3.2 1,144 1,140
Lease assets
3.3 327 378
Joint ventures, associates and other investments
Other receivables
Prepaid expenses
3.6 7 -
Total non-current assets
Current assets
Inventories
Trade receivables
3.4 1,132 1,046
Other receivables
Contract assets
3.5 676 562
Amounts owed by group companies
Income tax receivable
2.7 2 24
Derivative financial
instruments 97 -
Prepaid expenses
3.6 629 607
Cash
Total current assets
Total assets
Equity and liabilities
(DKKm) Note 2022 2021
Equity
Share
capital 4.1 0 0
Retained earnings
Total equity
Non
-current liabilities
Deferred tax liabilities
2.7 1,554 1,587
Provisions
3.7 49 61
Lease liabilities
3.3 274 317
Loans
from group companies 4.2,4.5 - 7,453
Other
payables 228 219
Total non-current liabilities
Current liabilities
Loans
from group companies 4.2,4.5 2,873 1,547
Lease liabilities
3.3 83 82
Trade payables
Other payables
Contract liabilities
3.5 2,196 2,167
Amounts owed to group companies
Derivative financial instruments
Provisions
3.7 26 44
Total current liabilities
Total liabilities
Total equity and liabilities
Nuuday Annual Report 2022 39
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Consolidated statement of cash flows
(DKKm)
Note 2022 2021
Operating activities
Operating profit before depreciation, amortisation and special items
(
EBITDA)
Adjustment for non
-cash items
Payments related to
provisions 3.7 (7 )
(12 )
Special items
2.6 (76 )
(114 )
Change in working capital
5.1 (412 ) 813
Interest received
Interest paid
(312 )
(440 )
Income tax
received 2.7 26 22
Total cash flow from operating activities
Investing activities
Investment in enterprises
5.2 (51 )
Investment in property, plant and equipment
3.2 (375 )
(339 )
Investment in intangible assets
3.1 (891 )
(733 )
Investment in other non
-current assets (1 )
(4 )
Divestment of
joint ventures and associates - 97
Sale of other non
-current assets 2 1
Change in loans to joint ventures and associates
Total cash flow from investing activities
(1,316 )
(970 )
(DKKm)
Note 2022 2021
Financing activities
Lease payments
(75 )
(79 )
Change in interest
-bearing receivables and payables 865 (1,095 )
Costs relating to long
-term loans (35 )
Total cash flow from financing activities
(1,174 )
Total cash flow
Cash and cash equivalents at 1 January
Effect of exchange
-rate changes on cash and cash equivalents 2 -
Cash and cash equivalents at 31 December
Nuuday Annual Report 2022 40
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Consolidated statement of changes in equity
(DKKm)
Share capital
Retained
earnings Total
Equity at 1
January 2021 0 776 776
Loss for the year
(390 )
Total comprehensive income
(390 )
Total transactions with shareholders
Equity at 31 December 2021
Loss for the year
(190 )
Total
comprehensive income - (190 )
(190 )
Contributions of equity
Total transactions with shareholders
Equity at 31 December 202
2 0 6,543 6,543
Nuuday Annual Report 2022 41
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Section 1
Basis of preparation
This section sets out the basis of preparation, which
relates to the financial statements as a whole. Where
an accounting policy is specific to one note, the
policy is
described in the note to which it relates. Similarly, critical
sources of estimation uncertainty are described in the
notes to which they relate.
Management r
eview
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2022 41
In this section
1.1.
Accounting policies 42
1.2.
Critical accounting estimates and
judgements 43
1.3.
New accounting standards 43
Nuuday Annual Report 2022 42
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Nuuday’s consolidated financial state-
ments for 2022 have been prepared
in accordance with the International
Financial Reporting Standards (IFRS) as
adopted by the European Union (EU) and
further disclosure requirements in the
Danish Financial Statements Act.
The consolidated financial statements
are based on the historical cost conven-
tion, except for financial assets and
liabilities that are initially measured at
fair value adjusted for transaction costs
if they are not subsequently measured
at fair value through the income state-
ment. Trade receivables are measured
at their transaction price.
When preparing the consolidated finan-
cial statements, Management makes
assumptions that affect the reported
amount of assets and liabilities at the
balance sheet date, and the reported
income and expenses for the accounting
period. The accounting estimates and
judgements considered critical to the
preparation of the consolidated financial
statements are shown in note 1.2.
The accounting policies are unchanged
compared with the policies applied in
the Annual Report 2021.
Consolidation policies
The consolidated financial statements
include the financial statements of the
parent company and subsidiaries of
which Nuuday A/S has direct or indirect
control. Joint ventures of which the
Group has joint control and associates of
which the Group has significant influence
are recognised using the equity method.
The consolidated financial statements
have been prepared on the basis of the
financial statements of Nuuday A/S and
its consolidated companies, which have
been restated to Group accounting
policies, combining items of a uniform
nature.
On consolidation, intra-group income
and expenses; shareholdings, dividends,
internal balances; and realised and unre-
alised profits and losses on transactions
between the consolidated companies
have been eliminated.
1.1
| Accounting policies
Nuuday Annual Report 2022 43
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
The preparation of Nuuday Group’s
Annual Report requires Management
to exercise judgement in applying the
Group’s accounting policies. It also
requires the use of estimates and
assumptions that affect the reported
amount of assets, liabilities, income and
expenses. Actual results may differ from
those estimates.
Estimates and underlying assumptions
are reviewed on an ongoing basis. Revi-
sions are recognised during the period
in which the estimates are revised and
during any future periods affected.
The following areas involve a higher
degree of estimates or complexity and
are outlined in more detail in the related
notes:
Nuuday Group has adopted the new
standards, amendments to standards
and interpretations that are effective
for the financial year 2022. None of the
changes have affected recognition or
measurement in the financial statements
nor are they expected to have any
future impact.
IASB has approved a number of new
accounting standards and changes to
standards that are not yet effective.
Nuuday Group has evaluated the stand-
ards and as none of them are expected
to be relevant to the Group, they are
not expected to impact on the financial
statements.
1.2
| Critical accounting estimates and judgements
Notes
Critical accounting estimates
and judgements
Estimates
/judgements
2.
1
Revenue
Assessment of principal or agent Judgement
Assessment of contracts involving complex sale of
goods and services
Estimate/
Judgement
2.
6
Special items
Assessment of special events or transactions Judgement
3.1
Intangible assets
Assumptions for useful lives Estimate
Assumptions used for impairment testing
Estimate/
judgement
3.4
Trade receivables
Assessment of expected losses Estimate
1.3
| New accounting standards
Nuuday Annual Report 2022 44
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Section 2
Profit for the year
This section focuses on disclosures of details of the
Nuuday Group’s results for the year, including segment
reporting, special items and taxation. A detailed review
of revenue,
EBITDA and profit for the year is provided in the
section “Nuuday performance” in the Management’s review.
In this section
2.1.
Revenue
45
2.2.
Cost of sales
47
2.3.
External expenses
47
2.4.
Personnel expenses
48
2.5.
Depreciation, amortisation and
impairment losses
49
2.6.
Special items
49
2.7.
Income taxes
51
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2022 44
Nuuday Annual Report 2022 45
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Revenue recognition for a telecom oper-
ator is a complex area of accounting
that requires management estimates
and judgements.
Recognition of revenue depends on
whether the Group acts as a principal in
a transaction or an agent representing
another company. Whether the Group is
considered to be the principal or agent in
a transaction depends on an analysis of
both the form and substance of the cus-
tomer agreement. When the Group acts
as the principal, revenue is recognised at
the agreed value, whereas when the
Group acts as an agent, revenue is rec-
ognised as the commission the Group
receives for arranging the agreement.
Judgements of whether the Group acts
as a principal or as an agent impact on
the amounts of recognised revenue and
operating expenses, but do not impact
on net profit for the year or cash flows.
Judgements of whether the Group acts
as a principal are used primarily in trans-
actions covering content.
When the Group concludes contracts
involving complex sale of goods and
services, management judgements are
required to determine whether goods
and services shall be recognised
together or as separate goods and
services.
Management estimates are also used
for allocating the transaction price to
the individual elements based on their
respective fair values, if judged to be
recognised separately. For example,
business customer contracts can com-
prise several elements related to mobile
phones, subscriptions, leases, etc.
2.1
| Revenue
(DKKm)
2022 2021
Sales of goods recognised at a point in time
1,394 1,364
Sales of services recognised over time
13,280 13,293
Total
14,674
14,657
R
evenue specified by services (DKKm) 2022 2021
Landline voice
746 806
Mobil
e services 5,085 4,907
Internet & network
3,460 3,474
TV
3,452 3,438
Other services
1,931 2,032
Total
14,674
14,657
Critical accounting
estimates and judgements
Nuuday Annual Report 2022 46
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Revenue is measured at the fair value
of the consideration receivable after
deducting sales tax and discounts relat-
ing directly to sales. Revenue comprises
goods and services provided during the
year. Goods and services may be sold
separately or in bundled packages. Ser-
vices include traffic and subscription
fees, interconnection and roaming fees,
fees for leased lines, network services,
TV distribution as well as connection and
installation fees. Goods include customer
premises equipment, telephony hand-
sets, PCs, set-top boxes, etc.
Nuuday sells to households and the
contracts are primarily perpetual, with
the same service provided until the cus-
tomer terminates the contract. Some of
the contracts include a non-cancellation
period of 6 months. The company also
has contracts with antenna associations
for longer periods.
Nuuday sells digital solutions to enter-
prises and public segments. Business
offers modular solutions for small and
medium-sized enterprises, as well as
customised solutions for public and large
enterprises. Modular self-service con-
tracts are perpetual, and contracts with
customised solutions are for longer peri-
ods, i.e., 3-5 years.
The significant sources of revenue are
recognised in the income statements as
follows:
• revenues from subscription fees and
flat-rate services are recognised over
the subscription period
• revenues from telephony are recog-
nised at the time the calls are made
• sales related to prepaid services are
deferred, and revenues are recognised
at the time of use
• revenues from leased lines are recog-
nised over the rental period
• revenues from the sale of equipment
are recognised on delivery. Revenues
from equipment maintenance are rec-
ognised over the contract period
Revenue arrangements with multiple
deliverables are recognised as separate
units of accounting, independent of any
contingent element related to the deliv-
ery of additional items or other perfor-
mance conditions. Such revenues include
the sale of equipment located at cus-
tomer premises, e.g. switchboards and
handsets.
The transaction price in revenue ar-
rangements with multiple deliverables,
such as handsets and subscriptions, are
allocated to each performance obliga-
tion based on the stand-alone selling
price. Where the selling price is not di-
rectly observable, it is estimated based
on expected cost plus a margin. Dis-
counts on bundled sales are allocated
to each element in the contract.
Contracts with similar characteristics
have been evaluated using a portfolio
approach due to the large number of
similar contracts.
In case of contracts for longer periods,
and if the payment exceeds the services
rendered, contract liabilities are recog-
nised, see note 3.5.
Revenues are recognised gross when
Nuuday acts as the principal in a trans-
action. For content-based services and
the resale of services from content
providers where the group acts as the
agent, revenues are recognised net
of direct costs.
The percentage-of-completion method
is used to recognise revenue from con-
tract work in progress based on an
assessment of the stage of completion.
Contract work in progress includes in-
stallation of telephone and IT systems,
systems integration and other business
solutions.
Non-refundable up-front connection
fees are included in the total transaction
price for the contract with the customer
and are thereby allocated to the identi-
fied performance obligations (services).
The period between the transfer of the
service to the customer and the pay-
ment by the customer is not of an
extent that gives reason to adjust the
transaction prices for the time value
of money.
Other income
Other income comprises mainly account-
ing items of a secondary nature com-
pared with the company’s principal
activities.
2.1
| Revenue (continued)
Accounting policies
Nuuday Annual Report 2022 47
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Accounting policies
Cost of sales includes transmission costs
and cost of goods sold. Transmission
costs include external expenses related
to operation of mobile and landline net-
works and leased transmission capacity
as well as interconnection and roaming
costs related directly to the Group’s pri-
mary income.
Cost of goods sold includes terminal
equipment and transmission material as
well as TV-programme rights and other
content costs.
Accounting policies
External expenses include expenses re-
lated to marketing and advertising, sub-
scriber acquisition costs (over the ex-
pected term of the related customer re-
lationship), IT, property, expenses related
to staff, capacity maintenance, service
contracts, etc.
2.2
| Cost of sales
(DKKm)
2022 2021
Mobil
e services (3,510)
(3,331)
Landline voice
(368)
(422)
Internet & network
(1,780)
(1,681)
TV
(2,427)
(2,457)
Other services
(1,742)
(1,773)
Total
(9,827)
(9,664)
2.3
| External expenses
(DKKm)
2022 2021
Marketing and advertising
(203)
(207)
Subscriber acquisition and retention, cf. note 3.5
(172)
(163)
Properties
(121)
(110)
IT
(402)
(339)
Temps and personnel
-related expenses (77)
(59)
Other
(397)
(548)
Total
(1,372)
(1,426)
Comments
Nuuday derives the vast majority
of its cost of sales from contracts
with TDC NET A/S. In 2020 Nuuday
entered into a contract with
TDC NET A/S under which end-to-
end mobile services are provided.
The contract has an initial term of
eight years, including an additional
seven years phaseout period if the
contract is not extended. See also
note 6.2.
Nuuday Annual Report 2022 48
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
2.4
| Personnel expenses
(DKKm)
2022 2021
Wages and salaries (including short
-term and long-term bonuses) (2,075)
(2,050)
Pensions (defined contribution plans)
(180)
(178)
Social security
(42)
(38)
Total
(2,297)
(2,266)
Of which capitalised as non
-current assets 468 466
Total personnel expenses recognised in the income statement
(1,829)
(1,800)
Remuneration for the Executive Committee
1
and the Board of Directors
(DKKm) 2022 2021
Base salary (incl. benefits)
7.2 6.6
Cash bonus
3.9 3.1
Pensions
1.2 0.9
Long
-term incentive programme 1.3 0.4
Management incentive programme
0.9 0.5
14.5 11.5
Redundancy compensation
4.0 7.3
Key management in total
18.5 18.8
Fee to the Board of Directors
7.5 0.5
Total
26.0 19.3
1
During 2022, the remuneration to the Executive Committee (excluding redundancy compensation) comprised 1.5 members on
average (2021: 2.0 members).
Comments
Wages, salaries, social security
contributions, paid leave and sick
leave, bonuses and other em-
ployee benefits are recognised in
the year in which the employee
renders the related services.
The average number of full-time
employee equivalents was 3,668
(2021: 3,749).
Incentive programmes
See note 6.1.
Nuuday Annual Report 2022 49
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
2.5
| Depreciation, amortisation
and impairment losses
(DKKm)
2022 2021
Amortisation of intangible assets, cf. note 3.1
(1,079)
(1,186)
Depreciation of property, plant and equipment, cf. note 3.2
(381)
(434)
Depreciation of lease assets, cf. note 3.3
(85)
(85)
Impairment losses, cf. notes 3.1 and 3.2
(15)
(16)
Of which capitalised as tangible and intangible assets
10 9
Total
(1,550)
(1,712)
2.6
| Special items
(DKKm)
2022 2021
Costs related to redundancy programmes
(49)
(103)
Other restructuring costs, etc.
(17)
(5)
Loss from rulings
- (16)
Special items before income taxes
(66)
(124)
Income taxes related to special items
14 27
Special items related to joint ventures and associates
- 49
Total special items
(52)
(48)
Cash flow from special items
(DKKm) 2022 2021
Redundancy programmes
(66)
(91)
Rulings
- (15)
Other
(10)
(8)
Total
(76)
(114)
Nuuday Annual Report 2022 50
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Critical accounting judgements
In the income statement, special items
are presented as a separate item.
Special items include income or costs
that in Management’s judgement shall be
disclosed separately by virtue of their
size, nature or incidence. In determining
whether an event or transaction is spe-
cial, Management considers quantitative
as well as qualitative factors such as
the frequency or predictability of occur-
rence of the transaction or event,
including whether the event or transac-
tion is recurring. This is consistent with
the way that financial performance is
measured by Management and reported
to the Board of Directors, and assists in
providing a meaningful analysis of the
operating results of Nuuday.
Accounting policies
Special items are significant amounts
that Management considers are not
attributable to normal operations such
as restructuring costs and special write-
downs for impairment of intangible
assets and property, plant and equip-
ment. Special items also include gains
and losses related to divestment of
enterprises, as well as transaction costs
and adjustments of purchase prices
relating to the acquisition of enterprises.
Special items consist of both recurring
and non-recurring items.
Special items are disclosed on the face
of the income statement. Items of a simi-
lar nature in joint ventures and associ-
ates are recognised in profit from joint
ventures and associates.
2.6
| Special items (continued)
Nuuday Annual Report 2022 51
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
2.7
| Income taxes
2022 2021
Income taxes
(DKKm)
Income tax
income/
(expense)
Income tax
payable/
(receivable)
Deferred tax
liabilities/
(assets)
Income tax
income/
(expense)
Income tax
payable/
(receivable)
Deferred tax
liabilities/
(assets)
At 1 January
(24)
1,587
(61)
1,625
Income taxes for the year
22
1
(23)
34
23
(57)
Adjustment of tax for previous years
15 (5)
(10) (11)
(8)
19
Income tax paid
26
22
Total
37 (2)
1,554 23 (24)
1,587
Shown in the balance sheet as:
Tax payable/deferred tax liabilities
-
1,554
-
1,587
Tax receivable/deferred tax assets
(2)
-
(24)
-
Total
(2)
1,554 (24)
1,587
Income taxes are specified as follows:
Income excluding special items
23
(4)
Special items
14
27
Total
37 23
Nuuday Annual Report 2022 52
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
2.7
| Income taxes (continued)
2022 2021
Deferred tax
(DKKm)
Deferred tax
assets
Deferred tax
liabilities
Total
1
Intangible assets
-
42
42
64
Other
-
41
41
31
Current
- 83 83 95
Intangible assets
- 1,456 1,456 1,473
Property, plant and equipment
(27)
- (27)
(10)
Lease assets and liabilities
(6)
- (6)
(4)
Tax value of tax
-loss carryforwards (12)
- (12)
(12)
Other
- 60 60 45
Non-current
(45)
1,516
1,471
1,492
Deferred tax at 31 December
(45)
1,599
1,554
1,587
1
The total net deferred tax is recognised as a liability in the balance sheets.
2022 2021
E
ffective tax rate (DKKm) DKKm % DKKm %
Danish corporate income tax rate
35 22.0 75 22.0
Limitation on the tax deductibility of interest expenses
(33)
(20.8)
(67)
(19.6)
Other non
-taxable income and non-deductible expenses 6 3.9 (1)
(0.2)
Adjustment of tax for previous years
15 9.1 (11)
(3.3)
Effective tax excluding special items
23
14.2
(4)
(1.1)
Special items
14
2.1
27
6.7
Effective tax including special items
37 16.3 23 5.6
Comments
Nuuday A/S and all its Danish
subsidiaries participate in joint
taxation with DKT Holdings ApS,
which is the ultimate owner of the
Nuuday Group and management
company in the joint taxation. The
jointly taxed companies are jointly
and severally liable for the total
income taxes, taxes paid on ac-
count and outstanding residual
tax (with additional payments and
interest) relating to the joint
taxation.
Comments
The increasing effective tax rate
(excluding special items) was due
primarily to an increased adjust-
ment of tax for previous years.
Nuuday Annual Report 2022 53
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Tax for the year comprises current
income tax, changes in deferred tax and
adjustments from prior years and is rec-
ognised in the income statement, except
to the extent that it relates to items
recognised in other comprehensive
income.
Current income tax liabilities and current
income tax receivables are recognised in
the balance sheet as income tax payable
or income tax receivable.
Deferred tax is measured under the bal-
ance-sheet liability method on the basis
of all temporary differences between
the carrying amounts and the tax bases
of assets and liabilities at the balance
sheet date. However, deferred tax is not
recognised if the temporary difference
arises from the initial recognition of
goodwill or if it arises from initial recogni-
tion of an asset or liability in a transac-
tion other than a business combination
that affects neither accounting nor
taxable profit/loss. Deferred income tax
is provided on temporary differences
arising on investments in subsidiaries,
joint ventures and associates, except
where the timing of the reversal of the
temporary difference is controlled by
Nuuday Group and it is probable that the
temporary difference will not reverse in
the foreseeable future.
Deferred tax assets including the tax
value of tax-losses carried forward are
recognised when it is likely that these will
be utilised in the foreseeable future.
Deferred tax is adjusted concerning
elimination of unrealised intra-group
profit and losses.
Deferred tax is measured on the basis
of the tax rules and tax rates effective
under the legislation in the respective
countries at the balance sheet date
when the deferred tax is expected to be
realised as current income tax. Changes
in deferred tax as a result of changes in
tax rates are recognised in the income
statement except for the effect of items
recognised directly in other comprehen-
sive income.
Deferred tax assets and liabilities are
offset in the consolidated balance sheet.
2.7
| Income taxes (continued)
Accounting policies
Nuuday Annual Report 2022 54
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Section 3
Operating assets
and liabilities
This section shows the assets used to generate Nuuday’s
performance and the resulting liabilities incurred. Assets
and liabilities relating to Nuuday’s financing activities are
addressed in
section 4. Deferred tax assets and liabilities
are shown in
note 2.7.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
In this section
3.1.
Intangible assets
55
3.2.
Property, plant and equipment
59
3.3.
Lease assets and liabilities
61
3.4.
Trade receivables
63
3.5.
Contract assets and liabilities
65
3.6.
Prepaid expenses
65
3.7.
Provisions
66
Nuuday Annual Report 2022 54
Nuuday Annual Report 2022 55
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
3.1
| Intangible assets
2022 2021
(DKKm)
Goodwill
Customer
relationships
Brands
Other rights,
software, etc.
Total
Goodwill
Customer
relationships
Brands
Other rights,
software, etc.
Total
C
ost at 1 January 9,255 14,328 4,175 8,670 36,428 9,255 14,334 4,175 8,705 36,469
Additions
- - - 891 891 - - - 733 733
Additions related to acquisition of activities
- - - 51 51 - - - - -
Assets disposed of or fully amortised
- (47)
- (412) (459)
- (6)
- (768)
(774)
C
ost at 31 December 9,255 14,281 4,175 9,200 36,911 9,255 14,328 4,175 8,670 36,428
A
mortisation and impairment losses at 1 January (3,693)
(12,783)
(123)
(6,913) (23,512)
(3,693) (12,448)
(119)
(6,828)
(23,088)
Amortisation
- (245)
- (834) (1,079)
- (341)
(4)
(841)
(1,186)
I
mpairment losses for the year - - - (14) (14)
- - - (12)
(12)
Assets disposed of or fully amortised
- 47 - 411 458 - 6 - 768 774
A
mortisation and impairment losses
at 31 December
(3,693)
(12,981)
(123)
(7,350) (24,147)
(3,693) (12,783)
(123) (6,913)
(23,512)
Carrying amount at 31 December
5,562
1,300
4,052
1,850
12,764
5,562
1,545
4,052
1,757
12,916
Comments
In 2022,
impairment losses of intangi-
ble assets, etc. totalled DKK
14m,
(2021: DKK 12m
) of all related to
termination of various software
projects.
Assets with indefinite useful lives
other than goodwill related to the
TDC brand
were unchanged at
DKK 4,052m compared with 2021.
The carrying amount of software
amounted to DKK
1,728m (2021:
DKK 1,606m)
, of which DKK 87m
related to software in process. The
addition of internally developed
software totalled DKK 454m (2021:
DKK
445m).
Nuuday Annual Report 2022 56
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Management estimates useful lives for
intangible assets based on periodic stud-
ies of customer churn or actual useful
lives and the intended use for those
assets. Such studies are completed or
updated when new events occur that
may have the potential to impact the
determination of the useful life of the
asset, i.e. when events or circumstances
occur that indicate that the carrying
amount of the asset may not be recov-
erable and should therefore be tested
for impairment. Any change in customer
churn or the expected useful lives of
these assets is recognised in the financial
statements, as soon as any such change
has been ascertained, as a change in a
critical accounting estimate.
Impairment testing of intangible assets
Intangible assets comprise a significant
portion of Nuuday Group’s total assets.
The measurement of the recoverable
amount of intangible assets is a complex
process that requires significant Man-
agement judgements in determining vari-
ous assumptions to be used to calculate
cash-flow projections, discount rates and
terminal growth rates.
The sensitivity of changes in the
assumptions used to determine the
recoverable amount may be significant.
Furthermore, the use of other estimates
or assumptions when determining the
recoverable amount of the assets may
result in other values and could result in
required impairment of intangible assets.
The assumptions used for the impair-
ment testing of goodwill are shown in the
section Impairment testing of goodwill
and intangible assets with indefinite
useful lives.
Impairment testing of goodwill and
intangible assets with indefinite
useful lives
The carrying amount of goodwill is
tested for impairment annually and if
events or changes in circumstances indi-
cate impairment. The annual tests were
carried out at 1 October 2022 and at
1 October 2021, respectively.
Impairment testing is an integral part of
Nuuday’s budget and planning process,
which is based on long-term business
plans with projection until 2030. The dis-
count rates applied reflect specific risks
relating to the individual cash-generating
unit. The recoverable amount is based on
the value in use determined on expected
cash flows based on long-term business
plans approved by Management.
Projections for the terminal period are
based on general expectations and risks,
taking into account the general growth
expectations for the telecoms industry
in Denmark.
The long-term business plans are based
on current trends. The budget period
includes cash flow effects from com-
pleted restructurings combined with
effects of strategic initiatives aimed at
improving or maintaining trend lines.
For the impairment testing of goodwill,
Nuuday uses a pre-tax discount rate for
each of the four cash-generating units.
Sensitivity analyses have been per-
formed to assess the probability that
any likely changes in cash flow or dis-
count rate will result in an impairment
loss. One of the key swing factors behind
the projection is the EBITDA
level in the
planning period. A sensitivity analysis
indicates that EBITDA may be approxi-
mately 10% lower in each year in the
planning period before a write-down
would have to be recognised. If the
3.1
| Intangible assets (continued)
Critical accounting
estimates and judgements
Key assumptions for calculating the value in use
for the significant
1
goodwill amounts
(DKKm)
YouSee
Nuubrands
Business
Carrying amount of goodwill at 31 December 2022 (DKKm)
3,603
1,030
895
Carrying amount of goodwill at 31 December 202
1 (DKKm)
3,603 1,030 895
Market
-based growth rate applied at 1 October 2022 to
extrapolated projected future cash flows for the period
following 2030
2.3%
2.3%
2.3%
Market
-based growth rate applied at 1 October 2021 to
extrapolated projected future cash flows for the period
following 2030
1.0%
1.0%
1.0%
Applied pre
-tax discount rate at 1 October 2022
11.7% 11.7% 11.7%
Applied pre-tax discount rate at 1 October 2021
7.6%
7.6%
7.6%
1
Representing 99% of the total carrying
amount in 2022.
Nuuday Annual Report 2022 57
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Weighted average cost of capital
(WACC) applied as the discounting
factor in the calculations increases/
decreases by 1.0% and all other things
being equal, the value in use would de-
crease/increase by DKK 1.7bn and 2.3bn,
respectively and would not cause the
carrying amount of goodwill to exceed
the recoverable value. Under the same
assumptions, a 1.0% decrease/increase in
the market-based growth rate would
the value in use decrease/increase by
DKK 1.1bn and 1.5bn, respectively. All the
above-mentioned changes in key as-
sumptions would not cause the carrying
amount to exceed the recoverable value.
If the key assumptions change more
than indicated in the above analyses the
recoverable value may decrease at a
level, where an impairment loss occurs.
With the present relation between
WACC and growth rate the WACC can
increase to approximately 12.9% pre-tax
with a growth rate at 2.5% before the
carrying amount of goodwill will exceed
the recoverable value.
The assumptions for calculating the
value in use for the most significant
goodwill amounts are given below.
Assumptions regarding recoverable
amounts and projected earnings
YouSee
Any reasonably possible changes in the
key assumptions are not expected to
cause the carrying amount of goodwill to
exceed the recoverable value.
Projections are based on the assumption
of a steadily declining EBITDA in the
projected period. However, the trend
towards the terminal period in the long-
term business plan will stabilise based on
the following assumptions:
• Landline voice RGU will decline in line
with market trends however partly
offset by slightly increasing ARPU
development due to price development
in the market
• A decline in mobility services gross
profit from a slightly declining cus-
tomer base, but offset by ARPU stabili-
sation in line with general price devel-
opment
• A minor decline in broadband gross
profit due to decreasing RGUs on par-
ticularly DSL, as customers migrate to
high-speed technologies (e.g. fibre and
coax). The decline will be partly offset
by increasing ARPUs in the later years
of the projected period driven by the
customer migrations and general price
development
• TV gross profit decline due to pressure
on the number of RGUs from market
trends. Focus on future-proof technol-
ogy in TV such as “Bland selv TV”, will
somewhat stabilise the RGU trend
in terminal period and generate
higher ARPU
• Savings throughout the first half of
the planning period driven by initiatives
generated in an extensive saving pro-
gram with reductions in external and
personnel expenses. Inflationary in-
crease in cost assumed from halfway
in the planning period.
Nuubrands
Any reasonably possible changes in the
key assumptions are not expected to
cause the carrying amount of goodwill to
exceed the recoverable value.
Projections are based on the assumption
of steadily increasing EBITDA throughout
the projected period in the long-term
business plan based on the following as-
sumptions:
• Steady growth in mobility services
gross profit driven by increased foot-
print in the no-frills market from Eesy.
Furthermore, increasing ARPUs are ex-
pected in line with the general price
development to further improve the
mobility gross profit development
• Increasing broadband gross profit
driven by Hiper’s increased footprint in
the high-speed technology market
• Savings throughout the first half of
the planning period driven by initiatives
generated in an extensive saving pro-
gram with reductions in external and
personnel expenses. Inflationary in-
crease in cost assumed from halfway
in the planning period
Business
Any reasonably possible changes in the
key assumptions are not expected to
cause the carrying amount of goodwill to
exceed the recoverable value.
Projections are based on the assump-
tions of a declining EBITDA early in the
planning period, offset by a stabilization
of EBITDA and subsequent increasing
EBITDA towards the terminal period in
the long-term business plan based on the
following assumptions:
• Landline voice RGU decline in line with
market trend
• Stable gross profit development in mo-
bility services throughout the planning
period, driven by small increase in RGU
base, offset by lower ARPU due to
product mix and cost development
• Declining broadband GP in the early
years of the planning period, however
it will stabilise towards terminal period.
The increase is driven by migrations of
customers from DSL to high-speed
technology (e.g. fibre) in the upcoming
years, which drive high loss of RGUs
and low ARPUS, but will eventually sta-
bilise after migrations
• Savings throughout the first half of
the planning period driven by initiatives
generated in an extensive saving pro-
gram with reductions in external and
personnel expenses. Inflationary in-
crease in cost assumed from halfway
in the planning period
3.1
| Intangible assets (continued)
Nuuday Annual Report 2022 58
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Goodwill and brands with indefinite use-
ful lives are recognised at cost less accu-
mulated impairment losses. The carrying
amounts of goodwill and brands with
indefinite useful lives are tested for
impairment annually and whenever
events or changes in circumstances indi-
cate that the carrying amounts may not
be recoverable, and are subsequently
written down to the recoverable
amounts in the income statement if
exceeded by the carrying amounts.
Impairment losses-of goodwill are not
reversed. For the purpose of impairment
testing in the consolidated financial
statement, goodwill is allocated to the
Group’s cash-generating units. The
determination of cash-generating units
is based on the internal management
reporting.
Brands with finite useful lives, proprie-
tary rights, etc. are measured at cost
less accumulated amortisation and im-
pairment losses and are amortised on a
straight-line basis over their estimated
useful lives.
Customer-related assets are measured
at cost less accumulated amortisation
and impairment losses and are amortised
using the diminishing-balance method
based on the percentage of churn (5% to
20%) corresponding to the expected pat-
tern of consumption of the expected
future economic benefits.
Development projects, including costs of
computer software purchased or devel-
oped for internal use, are recognised as
intangible assets if the cost can be cal-
culated reliably and if they are expected
to generate future financial benefits.
Costs of development projects include
wages, external charges, depreciation
and amortisation that are directly at-
tributable to the development activities
as well as interest expenses in the pro-
duction period.
Development projects that do not meet
the criteria for recognition in the bal-
ance sheet are expensed as incurred in
the income statement.
The main amortisation periods are
as follows:
Software
3-5 years
Development projects in process and
intangible assets of indefinite useful lives
are tested for impairment at least annu-
ally and written down to recoverable
amounts in the income statement if
exceeded by the carrying amount.
Intangible assets are recorded at the
lower of recoverable amount and carry-
ing amount.
Impairment tests on goodwill and other
intangible assets with indefinite lives are
performed at least annually and, if nec-
essary, when events or changes in cir-
cumstances indicate that their carrying
amounts may not be recoverable.
3.1
| Intangible assets (continued)
Accounting policies
Nuuday Annual Report 2022 59
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
3.2
| Property, plant and equipment
2022 2021
(DKKm)
Network
infra-
structure
Equipment
Assets under
construction
Total
Network
infra-
structure
Equipment
Assets under
construction
Total
Cost at 1 January
2,400
725
86
3,211
2,471
698
58
3,227
Transfers (to)/from other items
12
-
(12)
-
-
-
-
-
Transfers from leased assets
- - - - 6 - - 6
Additions
288
46
51
385
280
42
28
350
Assets disposed of
(538)
-
-
(538)
(357)
(15)
-
(372)
C
ost at 31 December 2,162 771 125 3,058 2,400 725 86 3,211
Depreciation and impairment losses at 1 January
(1,474)
(593)
(4)
(2,071)
(1,456)
(543)
(2)
(2,001)
Transfers from leased assets
-
-
-
-
(4)
-
-
(4)
Depreciation
(319)
(62)
-
(381)
(369)
(65)
-
(434)
Impairment losses for the year
-
-
-
-
(2)
-
(2)
(4)
Assets disposed of
538
-
-
538
357
15
-
372
D
epreciation and impairment losses at 31 December (1,255)
(655)
(4)
(1,914) (1,474) (593)
(4)
(2,071)
Carrying amount at 31 December
907
116
121
1,144
926
132
82
1,140
Cash flow
(DKKm) 2022 2021
Additions, cf. table above
(385)
(350)
Non
-cash additions regarding decommissioning obligations - 2
Capitalised depreciations cf
. note 2.5 10 9
Cash flow from investment in property, plant and equipment
(375)
(339)
Nuuday Annual Report 2022 60
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Property, plant and equipment are
measured at cost less accumulated
depreciation and impairment losses.
Cost comprises purchase price and costs
directly attributable to the acquisition
until the date on which the asset is
ready for use. The cost of self-con-
structed assets includes directly
attributable payroll costs, materials,
depreciation, parts purchased and
services rendered by sub-suppliers or
contractors as well as interest expenses
in the construction period. Cost also
includes estimated decommissioning
costs if the related obligation meets the
conditions for recognition as a provision.
Directly attributable costs comprise
personnel expenses together with other
external expenses calculated in terms of
time spent on self-constructed assets.
The depreciation base is measured at
cost less residual value and any impair-
ment losses. Depreciation is provided on
a straight-line basis over the estimated
useful lives of the assets. The main
depreciation periods are as shown in
the next table.
The useful lives and residual values of
the assets are reviewed regularly. If the
residual value exceeds the carrying
amount of an asset, depreciation is dis-
continued.
Property, plant and equipment that have
been disposed of or scrapped are elimi-
nated from accumulated cost and accu-
mulated depreciation. Gains and losses
arising from sale of property, plant and
equipment are measured as the differ-
ence between the sales price less selling
expenses and the carrying amount at
the time of sale. The resulting gain or
loss is recognised in the income state-
ment under other income or other
expenses.
Software that is an integral part of tele-
phone exchange installations, for exam-
ple, is presented together with the
related assets. Useful lives are estimated
individually.
Customer-placed equipment (e.g. set-
top boxes) is capitalised and depreciated
over the estimated useful life of the indi-
vidual asset, not exceeding five years.
3.2
| Property, plant and equipment (continued)
Accounting policies
Network infrastructure:
exchange equipment 3-15 years
other network equipment 3-20 years
Equipment (computers, tools and
office equipment)
3-15 years
Nuuday Annual Report 2022 61
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
3.3
| Lease assets and liabilities
2022 2021
Lease assets
(DKKm)
Land and
buildings
Network
infrastructure
Vehicles and
equipment
Total
Land and
buildings
Network
infrastructure
Vehicles and
equipment
Total
Carrying amount at 1 January
344 0 34 378 372 2 38 412
Additions
12 - 26 38 44 - 21 65
Transfer to property, plant and equipment
- - - - - (2)
- (2)
Disposals
- - (4)
(4)
(11)
- (1)
(12)
Depreciation
(61) - (24)
(85)
(61)
- (24)
(85)
Carrying amount at 31 December
295 0 32 327 344 0 34 378
Amounts recognised in the income statement
(DKKm) 2022 2021
Expense relating to short
-term leases (29)
(24)
Depreciation charge of lease assets, cf. above
(85)
(85)
Interest expense (included in financing costs)
(10)
(11)
Lease liabilities
(DKKm) 2022 2021
Recognised in the balance sheet at present value:
External lease liabilities
15 4
Lease liabilities due to group companies
342 395
Total
357 399
Of which presented as current
(83)
(82)
Total non-current
274
317
Maturing between 1 and 3 years
141 138
Maturing between 3 and 5 years
63 89
Maturing between 5 and 10 years
70 90
Total non
-current 274 317
Reconciliation of lease liabilities
(DKKm) 2022 2021
Carrying amount at 1 January
399 426
Lease payments
(75)
(79)
New lease contracts
39 65
Other non
-cash movements (6)
(13)
Carrying amount at 31 December
357
399
Comments
Nuuday leases various offices, retail
stores, vehicles and equipment.
Rental contracts are typically made
for fixed
periods of 3 to 15 years but
may have extension options.
Lease terms are negotiated on an
individual basis and contain a wide
range of different terms and condi-
tions. The lease agreements do not
impose any covenants other than
the security interests in
the leased
assets that are held by the lessor.
Leased assets may not be used as
security for borrowing purposes.
Nuuday Annual Report 2022 62
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Assets and liabilities arising from leases
are initially measured on a present-value
basis. Lease liabilities include the net pre-
sent value of the following lease pay-
ments:
• fixed payments (including in-substance
fixed payments), less any lease incen-
tives receivable
• variable lease payments that are
based on an index or a rate, initially
measured using the index or rate as at
the commencement date
• amounts expected to be payable by
the Group under residual value guar-
antees
• the exercise price of a purchase option
if the Group is reasonably certain to
exercise that option
• payments of penalties for terminating
the lease, if the lease term reflects the
Group exercising that option.
Lease payments to be made under rea-
sonably certain extension options are
also included in the measurement of the
liability.
The lease payments are discounted using
the interest rate implicit in the lease. If
that rate cannot be readily determined,
which is generally the case for leases in
the Group, the lessee’s incremental bor-
rowing rate is used, being the rate that
the lessee would have to pay to borrow
the funds necessary to obtain an asset of
similar value to the lease asset in a similar
economic environment with similar terms,
security and conditions.
The incremental borrowing rates are
based on our existing credit facilities and
observable market data.
The Group is exposed to potential future
increases in variable lease payments
based on an index or rate, which are not
included in the lease liability until they
take effect. When adjustments to lease
payments based on an index or rate take
effect, the lease liability is reassessed
and adjusted against the lease asset.
Lease payments are allocated between
principal and financing costs. The financ-
ing costs are charged to the income
statement over the lease period so as to
produce a constant periodic rate of in-
terest on the remaining balance of the li-
ability for each period.
Lease assets are measured at cost less
accumulated depreciation and write-
downs for impairment. Cost comprises
the following:
• the amount of the initial measurement
of lease liability
• any lease payments made at or before
the commencement date less any
lease incentives received
• any initial direct costs
• decommissioning costs.
Lease assets are generally depreciated
over the shorter of the asset’s useful life
and the lease term on a straight-line
basis. If the Group is reasonably certain
to exercise a purchase option, the lease
asset is depreciated over the underlying
asset’s useful life cf. note 3.2.
Impairment tests on lease assets are
performed annually and, if necessary,
when circumstances indicate their car-
rying amounts may not be recoverable.
Write-downs of lease assets related to
vacant tenancies are based on expecta-
tions concerning timing and scope,
future cost levels etc. The calculation of
the write-downs comprises rent and
operating costs for the contract period
reduced by the expected rental income
from subleases.
Payments associated with short-term
leases of equipment and vehicles and all
leases of low-value assets are expensed
as incurred. Short-term leases are leases
with a lease term of 12 months or less.
Low-value assets comprise IT equipment
and small items of office furniture.
3.3
| Lease assets and liabilities (continued)
Accounting policies
Comments
The total cash outflow for leases
in 2022 totalled DKK 85m (2021:
DKK 90m). The amount is excl.
short-term leases and leases of
low-value assets.
Nuuday Annual Report 2022 63
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Critical accounting
estimates
Expected credit losses are assessed for
portfolios of trade receivables based on
customer segments, historical credit loss
experience combined with forward-look-
ing information on macroeconomic
factors affecting the credit risk. The
expected loss rates are updated at each
reporting date.
3.4
| Trade receivables
(DKKm)
2022
2021
Trade receivables
1,226 1,213
Expected credit losses
(94)
(167)
Trade receivables, net
1,132 1,046
Expected credit losses
at 1 January (167)
(181)
Expected credit loss recognised
(51)
(35)
Realised
credit losses 99 33
Reversed
expected credit losses 25 16
Expected credit losses
at 31 December (94)
(167)
Trade receivables
(DKKm) Not yet due
Less than
1 month
past due
More than
1 month
past due
More than
3 months past
due
More than
6 months past
due Total
202
2
Expected loss rate
2% 1% 3% 17% 77% 8%
Gross carrying amount
897
151
62
23
93
1,226
Expected credit losses
(15)
(1)
(2)
(4)
(72)
(94)
20
21
Expected loss rate
1%
1%
4%
11%
75%
14%
Gross carrying amount
779
145
50
37
202
1,213
Expected credit losses
(7)
(2)
(2) (4)
(152)
(167)
Comments
The carrying amount of the balance’s
approximated fair value is due to
the short maturity of amounts
receivable.
As at 1 January 2021, trade receiva-
bles from contracts with customers
amounted to DKK 1,117m (net of loss
allowance of DKK 181m).
Nuuday Annual Report 2022 64
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Trade receivables are amounts due from
customers for goods sold or services
performed in the ordinary course of
business. Nuuday operates with stand-
ard customer payment terms where
customer subscriptions are billed and
paid in advance of the subscription
period, while usage and one-off services
are billed and paid after the subscription
period. The receivables are generally
due for settlement within 20-30 days
and are therefore all classified as cur-
rent. Trade receivables are recognised
initially at the amount of consideration
that is unconditional. The Group holds
the trade receivables with the objective
of collecting the contractual cash flows
and therefore measures them subse-
quently at amortised cost using the
effective interest method.
Nuuday applies the simplified approach
to measure expected credit losses, which
uses a lifetime expected loss allowance
for all trade receivables, contract assets
and lease receivables. To measure the
expected credit losses, receivables have
been grouped based on shared credit
risk characteristics and the days past
due. The expected loss rates are based
on the payment profiles of sales and the
corresponding historical credit losses
experienced. The historical loss rates are
adjusted to reflect current and forward-
looking information on macroeconomic
factors affecting the ability of the
customers to settle the receivables.
3.4
| Trade receivables (continued)
Accounting policies
Nuuday Annual Report 2022 65
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Subscriber acquisition costs
and fulfilment costs
The most common subscriber acquisition
costs are dealer commissions. Subscriber
acquisition costs and fulfilment costs are
capitalised and recognised as expenses
in external expenses and personnel
expenses over the expected term of the
related customer relationship. The term
is estimated using historical customer
churn rates. Change of management
estimates may have a significant impact
on the amount and timing of the
expenses for any period.
Deferred subscription income recognised
as a liability comprises payments re-
ceived from customers covering income
in subsequent years.
3.5
| Contract assets and liabilities
(DKKm)
2022 2021
1 January
2021
Assets recognised from costs to obtain a contract
(SAC)
248 204 212
Assets recognised from costs to fulfil a contract
55 23 14
Assets recognised from costs to fulfil contract
s
with Group companies
373 335 263
Total contract assets
676
562
489
Deferred subscription income
2,191 2,150 2,149
Work in progress for the account of third parties,
liabilities
5 17 45
Total contract liabilities
2,196
2,167
2,194
Accounting policies
3.6
| Prepaid expenses
Comments
Total prepaid expenses amounted
to DKK 636m (2021:
DKK 607m) of which DKK 269m
(2021: DKK 280m) related to
group companies.
Comments
Of the deferred subscription income,
DKK 30m (2021: DKK 38m) will be rec-
ognised as income after more than
one year.
Revenue recognised in 2022 that
was included in deferred subscription
income at the beginning of the
period amounted to DKK 2,108
m
(2021: DKK 2,102m).
Costs recognised in 2022 that were
included in assets recognised from
costs to obtain a contract (SAC) at
the beginning of the period
amounted to DKK 123m (2021:
DKK 132m). Assets to fulfil a contract
at the beginning of the period
DKK 86m (2021 DKK 61m)
were recog-
nised as costs in 2022.
Of the assets recognised from costs
to obtain a contract (SAC), DKK 108m
(2021 DKK 82m) and DKK 314m (2021:
DKK 269m) of costs to fulfil a contract
will be recognised as costs after more
than one year.
Nuuday Annual Report 2022 66
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Accounting policies
Provisions are recognised when the
Group has a legal or constructive obliga-
tion arising from past events, it is proba-
ble that economic benefits must be
sacrificed to settle it, and the amount
can be estimated reliably.
Provisions for restructuring, etc. are
recognised when a final decision thereon
has been made before or on the balance
sheet date and has been announced to
the parties involved, provided that the
amount can be measured reliably. Provi-
sions for restructuring are based on a
defined plan, which means that the
restructuring commences immediately
after the decision has been made.
Provisions are measured at Manage-
ment’s best estimate of the amount at
which the liability is expected to be set-
tled. Provisions are discounted if the
effect is material to the measurement
of the liability.
3.7
| Provisions
2022 2021
(DKKm)
Restructuring
obligations
Other
provisions Total
Provisions at 1 January
50 55 105 80
Provisions made
54 54 135
Provisions used (payments)
(72) (1)
(73)
(102)
Reversal of unused provisio
- (11)
(11)
(8)
Provisions at 31 December
32 43 75 105
Of which recognised through special
items in the income statement
30 2 32 53
Recognised as follows in the balance
sheet:
Non
-current liabilities 6 43 49 61
Current liabilities
26 - 26 44
Total
32 43 75 105
Specification of how payments regarding provisions are recognised in
the statements of cash flow
(DKKm) 2022 2021
Payments related to provisions
(7)
(12)
Cash flow related to special items
(66)
(90)
Total
(73)
(102)
Comments
Provisions for restructuring obli-
gations related primarily to redun-
dancy programmes. The majority
of the provisions for redundancy
programmes are expected to
result in cash outflows in the next
five years. The uncertainties
related primarily to the estimated
amounts and the timing of the
related cash outflows.
Other provisions related mainly to
onerous contracts and jubilee
benefits for employees as well as
decommissioning obligations. The
majority of these provisions are
not expected to result in cash
outflows in the next five years.
The uncertainties regarding oner-
ous contracts related to both tim-
ing and estimated amounts. The
uncertainties regarding jubilee
benefits related to both salary
and the number of employees
included.
Nuuday’s total redundancy costs
included wages during the notice
period, severance pay, stand-off
pay, payments pursuant to the
Danish Salaried Employees Act,
social security contributions and
outplacement costs.
Nuuday Annual Report 2022 67
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Section 4
Capital structure
and financing costs
This section
includes disclosures related to Nuuday’s capital
structure and related financing costs as well as finance
-
related risks and how these are managed.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
In this section
4.1.
Equity
68
4.2.
Loans
69
4.3.
Financial risks
70
4.4.
Financial income and expenses
71
4.5.
Maturity profiles of financial instruments
72
Nuuday Annual Report 2022 67
Nuuday Annual Report 2022 68
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Accounting policies
Dividends
Dividends expected to be distributed for
the year are recognised in a separate
item in equity. Dividends and interim divi-
dends are recognised as a liability at the
time of adoption by the Annual General
Meeting and the meeting of the Board of
Directors, respectively.
4.1
| Equity
Comments
The total authorised number of
shares is 400,200 with a par value of
DKK 1 per share
(increased 100 in
2022 compared to 2021). All issued
shares are fully paid up.
During 202
2, total equity increased
by DKK
6,157m to DKK 6,543m due to
equity contribution (DKK 6,347m)
offset by
the loss for the year
(DKK 190m).
During 2021,
total equity decreased
by DKK 390m to DKK 386m due to
the loss for the year
.
The parent company statement of
changes in equity specifies which
reserves are available for distribu-
tion. The distributable reserves
amounted to DKK 5,208m at
31 December 2022 (2021:
DKK
(707)m). At the Annual General
Meeting, the Board of Directors
will not propose any dividend for
the financial year 2022.
Nuuday Annual Report 2022 69
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Accounting policies
Loans
Loans are recognised initially at the
proceeds received net of transaction
expenses incurred. In subsequent peri-
ods, loans are measured at amortised
cost so that the difference between the
proceeds and the nominal value is recog-
nised in the income statement over the
term of the loan.
Other financial liabilities are measured
at amortised cost.
Financial instruments
On initial recognition, financial deriva-
tives are recognised in the balance sheet
at fair value and subsequently remeas-
ured at fair value in the balance sheet
and in the income statement. Depending
on the type of instrument, different rec-
ognised measurement methods are ap-
plied for derivative financial instruments.
Nuuday does not apply hedge account-
ing.
4.2
| Loans
Loan from TDC
Holding A/S 2030
Maturity
Dec 2030
Fixed/floating rate
Fixed
Coupon
4%
Currency
DKK
Nominal value (DKKm)
2,873
Additionally, Nuuday has
entered into EUR 450m notional interest rate swaps to hedge future debt issuance.
As of 31
-12 2022 there were no drawings on Revolving Credit Facilities (RCF). Undrawn RCFs amount to EUR 13m,
maturing July 2026.
Reconciliation of loans
(DKKm)
2022
2021
Carrying amount at 1 January
9,000
9,000
Conversion of loan from TDC Holding A/S to share capital
(6,127)
-
Carrying amount at 31. December
2,873 9,000
Recognised as follows in the balance sheet:
Non-current liabilities
-
7,453
Current liabilities
2,873
1,547
Total
2,873 9,000
Comments
At year-end 2022 Nuuday was
financed by a shareholder loan
from TDC Holding A/S and a Re-
volving Credit Facility provided by
external banks. In December 2022
the shareholder loan was reduced
from DKK 9 bn to DKK 2.9bn by
converting the residual to equity.
In November 2022, Nuuday signed
a new term loan facility, where
proceeds will be used to redeem
the loan (including accrued inter-
est) from TDC Holding A/S.
Events after the balance
sheet date
On 3 February 2023, Nuuday is-
sued a
EUR 500m term loan, In connec-
tion with the DKT Finance refi-
nancing in February 2023, Nuuday
redeemed it’s loan from TDC
Holding A/S. Together with the re-
volving credit facility the new
term loan completes the long term
funding of Nuuday.
The establishment of the new
share and capital structure sup-
ports the strategy and the long-
term value creation in the interest
of the company as well as the
shareholders.
Nuuday Annual Report 2022 70
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Interest-rate risks
Nuuday is exposed to interest-rate risks
in the euro area. This risk emerges as
the Revolving Credit Facility (RCF) is tied
to the development in the daily
European reference rate, Euribor. The
new term loan facility, which ensures
Nuuday’s long term funding, has been
hedged before drawing the loan pro-
ceeds. Therefore, Nuuday has mitigated
the main interest rate risk in the funding
structure.
Exchange-rate risks
Nuuday is primarily exposed to ex-
change-rate risks from USD, but these
are hedged by TDCH´s Group Treasury
function. These risks relate to payables
from equipment and handset suppliers as
well as content providers.
Nuuday has no exchange-rate risk from
its shareholder loan or the new term
loan facility as they are issued in DKK
and EUR respectively.
Credit risks
Nuuday is exposed to credit risks as a
provider of digital customer experiences
and entertainment in Denmark and as
counterparty to financial contracts.
Nuuday handles the credit risk emanat-
ing from providing services for custom-
ers, while the credit risks in relation to fi-
nancial contracts are handled centrally
by TDCH´s Group Treasury function.
Liquidity risks
Nuuday has no short-term refinancing
risk as the new term loan facility is run-
ning for five years.
Undrawn credit lines
At year-end 2022, Nuuday had undrawn
committed credit lines totalling DKK
1,004m.
Credit rating
In relation to the 2022 financing, Nuuday
has been rated by the three global rat-
ing agencies Moody’s, Fitch and S&P. All
ratings are listed in the below table.
4.3
| Financial risks
Nuuday ratings at 31 December 2022
Moody’s
Fitch
S&P
Company
Instrument
Company
Instrument
Company
Instrument
Nuuday
B2
B2
B (neg outlook)
BB
-
B
-
B
Comments
Nuuday is exposed to financial
market and credit risks when buy-
ing and selling goods and services
denominated in foreign currencies
as well as due to the cash flow
from investing in the business and
financing activities. Nuuday han-
dles financial risks specific to the
provision of digital customer expe-
riences and entertainment, and is
supported by the Group Treasury
function in relation to identifying,
monitoring and managing these
risks (see also the Group Treas-
ury’s financial policies for risk
management in TDC Holding
group’s Annual Report).
Nuuday Annual Report 2022 71
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
1
Nuuday has partly hedged its future debt issuances to fixed
interest rates (nominal EUR 450m), and as market interest
rates have increased this has resulted in a gain in 2022.
4.4
| Financial income and expenses
(DKKm)
2022 2021
Interest income
13 6
Interest expenses
(417)
(449)
Net interest
(404)
(443)
Specified as
follows:
Loans from TDC Holding A/S (360)
(355)
Lease liability (10)
(11)
Other (34)
(77)
Currency translation adjustments
(1)
(6)
Fair Value adjustments
1
85
-
Interest and currency translation adjustments
(320)
(449)
Profit/(loss) from joint ventures and associates
- 49
Total
(320)
(400)
Nuuday Annual Report 2022 72
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Maturity profiles
The maturity analyses of financial assets
and liabilities are disclosed by category
and class and are allocated according to
maturity period. All interest payments
and repayments of financial liabilities are
based on contractual agreements. Inter-
est payments on floating-rate instru-
ments are determined using forward
rates.
Financial assets and liabilities measured
at fair value relate to derivatives. The
fair value of these derivatives is calcu-
lated based on observable inputs such as
interest rates, etc. (Level 2 in the IFRS
fair value hierarchy).
4.5
| Maturity profiles of financial instruments
2022
Maturity profiles of expected cash flows
1
(DKKm)
< 1 year
1-3 years
3-5 years
> 5 years
Total
Fair value
Carrying
amount
Financial
assets and liabilities measured at fair value
through profit or loss
Assets
²:
Derivatives
Inflow
34 155 - - 189
Outflow
(19)
(69)
- -
(88)
Total derivatives assets
15
86
-
-
101)
97
97
Liabilities:
Derivatives
Inflow
278 - - - 278
Outflow
(289)
- - - (289)
Total derivatives liabilities
(11)
-
-
-
(11)
(11)
(11)
Total derivatives
4 86 - - (90 86 86
Financial liabilities measured at amortised cost
Loan from TDC Holding A/S
(2,873)
-
-
-
(2,873)
(2,873)
(2,873)
Loan from TDC
Holding A/S, interest
3
(125)
-
- - (125)
(107)
(107)
Lease liability
(84)
(149)
(71)
(84)
(388)
(357)
(357)
Amounts owed to group companies
(983)
-
-
-
(983)
(983)
(983)
Trade and other payables
4
(1,022)
- - - (1,022)
(1,022)
(1,022)
Total
(5,087)
(149)
(71) (84)
(5,391)
(5,342)
(5,342)
Total
(5,083)
(63)
(71)
(84)
(5,301)
(5,256)
(5,256)
Nuuday Annual Report 2022 73
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
4.5
| Maturity profiles of financial instruments (continued)
2021
Maturity profiles of expected cash flows
1
(DKKm) < 1 year 1-3 years 3-5 years > 5 years Total Fair value
Carrying
amount
Financial liabilities measured at amortised cost
Loan from TDC
Holding A/S (1,547) (1,573)
(5,880)
- (9,000)
(9,000)
(9,000)
Loan from TDC
Holding A/S, interest
3
(355) (455)
(176)
- (986)
(231)
(231)
Lease
liability (83) (147)
(99)
(109)
(438)
(399)
(399)
Amounts owed to group companies
(1,247) - - - (1,247)
(1,247)
(1,247)
Trade and other payables
4
(975) - - - (975)
(975)
(975)
Total
(4,207) (2,175)
(6,155)
(109)
(12,646)
(11,852)
(11,852)
1
All cash flows are undiscounted. The table reflects only the cash flow from financial liabilities.
2
Both assets and liabilities measured at fair value through profit or loss are disclosed in the above table because some of the derivatives are used for hedging financial liabilities
measured at amortised cost, see table.
3
Fair value and carrying amount value consist of accrued interest on loan from TDC Holding A/S at 31 December
4
As not all trade and other payables recognised in the balance sheet are financial instruments (e.g. unbilled payables do not constitute a financial liability), the amount differs
from the amount disclosed in the balance sheet.
Nuuday Annual Report 2022 74
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Section 5
Cash flow
This section provides information on Nuuday’s cash flow.
More information on
development in the cash flow items is
included in note 2.6 Special items, note 3.1 Intangible assets,
note 3.2 Property, plant and equipment
, note 3.3 Lease
assets and liabilitie
s, note 3.7 Provisions as well as
note 4.4
Financial income and expenses. A review of cash
flow is provided in the section Nuuday performance in
the Management’s review.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
In this section
5.1.
Change in working capital 75
5.2.
Investment in enterprises 75
Nuuday Annual Report 2022 74
Nuuday Annual Report 2022 75
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Cash flow from operating activities is
presented using the indirect method and
is based on profit before interest, taxes,
depreciation, amortisation and special
items adjusted for non-cash operating
items, cash flow related to special items,
changes in working capital, interest
received and paid as well as income
taxes paid.
Cash flow from investing activities
comprises acquisitions and divestments
of enterprises, purchases and sales of
intangible assets, property, plant and
equipment as well as other non-current
assets. Cash flow from acquired enter-
prises are recognised from the time of
acquisition, while cash flows from enter-
prises divested are recognised up to the
time of divestment.
Cash flow from financing activities com-
prises changes in interest-bearing debt,
lease instalments and dividends to share-
holders.
Cash and cash equivalents cover cash
and marketable securities with a remain-
ing life not exceeding three months at
the time of acquisition, and with an insig-
nificant risk of changes in value.
The cash flow statement cannot be
derived solely from information pre-
sented in the financial statements.
In 2022, Nuuday insourced IT- and other
activities from the parent company
TDC Holding A/S. The net cash flow on
the acquisition amounted to DKK 51m.
The acquisition had no significant impact
on the income statement for 2022.
Accounting policies
5.1
| Change in working capital
(DKKm)
2022 2021
Change in inventories
(35)
(52)
Change in receivables
(85)
199
Change in contract assets
(114)
(73)
Change in trade payables
(187)
914
Change in contract liabilities
29 (27)
Change in prepaid expenses
5 (53)
Change in other items, net
(25)
(95)
Total
(412)
813
5.2
| Investment in enterprises
Nuuday Annual Report 2022 76
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Section 6
Other disclosures
This section contains
statutory notes or notes that are
presumed to be less important for understanding the
Group’s financial performance.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2022 76
In this section
6.1.
Incentive programmes 77
6.2.
Related parties 78
6.3.
Fees to auditors 79
6.4.
Other financial commitments 79
6.5.
Pledges and contingencies 80
6.6.
Events after the balance sheet date 80
6.7.
Overview of group companies
at 31 December 2022 80
Nuuday Annual Report 2022 77
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
In order to support the delivery of short-
and long-term financial results, the
Group has both short- and long-term in-
centive programmes for executives and
managers.
Short-term incentive programmes (STI)
The short-term bonus programmes are
closely linked to our strategy. The per-
formance measures are focused on
EBITDA, dividend capacity and Net Pro-
moter Score.
Bonus payments are calculated as the
individual employee’s basic salary multi-
plied by the bonus percentage multiplied
by the degree of target fulfilment.
The bonus percentage for members
of the Executive Committee is usually
25-50%. For other managers, the bonus
percentage varies within a range of 10%-
33%. The target fulfilment can be maxi-
mum 200%.
Long-Term Incentive programme (LTI)
The LTI programme is cash based and its
objectives are linked to the long-term
strategy. The programme is revolving
with grants given each year but with a 2
or 3-year vesting period, as the goals
are principally set for a 2 or 3-year
period. The objectives are EBITDA, cash
flow, fibre
connection performance, divi-
dend capacity and Net Promoter Score.
The expenses are recognised over the
vesting period.
Bonus payments are calculated as the
individual employee’s basic salary multi-
plied by a LTI percentage multiplied by
the degree of target fulfilment.
The LTI percentage usually varies within
a range of 12%-36%. The target fulfilment
can be maximum 200%.
Management incentive programme (MIP)
In July 2020, the parent company TDC
Holding A/S established a new cash-
based incentive programme which in-
cludes the Executive Committee and
certain key managers of Nuuday. In total
15 managers are participating the MIP
programme. Under the MIP, the partici-
pants are required to place a deposit to
TDC Holding A/S to qualify for a return.
The payback amounts are based on the
development in certain financial perfor-
mance measures of the TDC Holding
group as well as certain business and
Health & Safety KPIs over the period un-
til 2023. The investment programme co-
vers the time period 2019-2023. The par-
ticipants have 40% of the deposits at risk
of being lost in downside scenarios and
the expected range of payouts are at
2x-4x the participants’ deposit. The
Nuuday participants’ total deposits
amount to DKK 13m and the expenses for
2022 relating to the programme
amounted to DKK 11m (2021: DKK 2m). At
31 December 2022 the total liabilities re-
lated to the management incentive pro-
gramme amounted to DKK 30m (2021:
DKK 18m)
6.1
| Incentive programmes
Nuuday Annual Report 2022 78
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Related parties also include Nuuday’s
joint ventures and associates shown in
note 6.7.
Remuneration for the Board of Directors
and the Executive Committee is specified
in note 2.4.
Loans from the parent company
TDC Holding A/S are specified in
note 4.2.
Purchase commitments towards group
companies are shown in note 6.4.
All transactions with related parties are
made on market terms. The most signifi-
cant related party is TDC NET A/S, see
also note 2.2.
Nuuday has the following additional
transactions and outstanding balances
with related parties:
6.2
| Related parties
Name of related party
Nature of relationship
Domicile
DKT Holdings ApS
Indirect ownership
– ultimate parent
Copenhagen, Denmark
DKT Finance ApS
Indirect ownership
Copenhagen, Denmark
DK Telekommunikation ApS
Indirect ownership
Copenhagen, Denmark
TDC
Holding A/S
Ownership
- parent
Copenhagen,
Denmark
TDC NET A/S
Subsidiary of TDC
Holding A/S
Copenhagen, Denmark
TDC Pensionskasse
Pension
fund
Copenhagen, Denmark
Related parties
(DKKm) 2022 2021
TDC Holding A/S
Income
2
26
Expenses, lease payments and capital expenditures
(560)
(757)
Receivables
-
865
Payables
(423)
(813)
Loans
(2,873)
(9,000)
Joint ventures and associates
Income
- 1
Other related parties
Income
98 90
Expenses and capital expenditures
(5,393)
(5,389)
Receivables
269 280
Payables
(1,008)
(1,059)
Nuuday Annual Report 2022 79
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
6.3
| Fees to auditors
Fees to auditors elected by the Annual General Meeting
(DKKm) 2022 2021
Statutory audit
3
2
Other assurance
engagements 1 -
Tax advisory services
- -
Other services
5 1
Total non-statutory audit services
6
1
Total
9 3
6.4
| Other financial commitments
(DKKm)
2022 2021
Lease commitments for short
-term and low-value leases
Short
-term leases 13 10
Leases of low
-value assets - -
Total
13
10
Capital and purchase commitments
Commitments related to
infrastructure, IT and administrative services from
group companies
13,365 16,452
Commitments related to outsourcing agreements
200 9
Investments in intangible assets
398 -
Other purchase commitments
954 1,356
Comments
The commitments related to
infrastructure are preliminary
contracts with TDC NET A/S.
Except for short-term leases and
leases of low-value assets, leases
are recognised as a lease asset
and a corresponding liability at the
date at which the leased
asset is available for use by the
Group, cf. note 3.3.
Nuuday Annual Report 2022 80
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Pledges
Cash with a carrying amount of
DKK 402m are pledged as security
for long-term loans.
Contingent liabilities
Nuuday is party to certain pending
lawsuits and cases pending with public
authorities and complaints boards. Based
on a legal assessment of the possible
outcome of each of these lawsuits and
cases, Management is of the opinion that
these will have no significant adverse
effect on Nuuday’s financial position.
Until 31 December 2022, Nuuday A/S was
jointly registered for Danish VAT with
the parent company TDC Holding A/S
and the majority of its Danish subsidiar-
ies and is jointly and severally liable for
payment of VAT.
Nuuday A/S is liable for obligations at-
tributable to the activities, assets and li-
abilities of TDC Holding A/S that existed
at the demerger on 11 June 2019. The
joint and several liabilities of Nuuday A/S
and TDC Holding A/S respectively may
not exceed an amount corresponding to
the net value of the assets and liabilities.
In connection with the DKT Finance refi-
nancing in February 2023, Nuuday re-
deemed it’s shareholder loan from TDC
Holding A/S. Together with the revolving
credit facility the new term loan com-
pletes the long term funding of Nuuday.
There have been no other events that
materially affect the assessment of this
Annual Report 2022 after the balance
sheet date and up to today.
6.5
| Pledges and
contingencies
6.6
| Events after the balance
sheet date
6.7
| Overview of group companies
at 31 December 2022
Company name
Domicile
Currency
Ownership share
(%)
Hiper A/S
Copenhagen, Denmark
DKK 100
TDC Telco ApS
Taastrup, Denmark
DKK 100
4T af 1. oktober 2012 ApS
1
Copenhagen, Denmark
DKK 25
1
The enterprise is included under the equity method.
Nuuday Annual Report 2022 81
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Parent company
financial statements
2022 81
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2022 82
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Parent company income statement
(DKKm)
Note 2022 2021
Revenue
2.1 14,447 14,488
Cost of goods sold
(9,647)
(9,549)
External expenses
(1,446)
(1,499)
Personnel expenses
2.2 (1,694)
(1,676)
Other income
65 58
Operating profit before depreciation, amortisation and special
items (EBITDA)
1,725
1,822
Depreciation, amortisation and impairment losses
(1,527)
(1,687)
Special items
2.3
(66)
(127)
Operating profit
/(loss) (EBIT)
132 8
Loss from subsidiaries
3.4 (33)
(21)
Financial income and expenses
4.3 (317)
(397)
Loss before income taxes
(218)
(410)
Income taxes
2.4 28 20
Loss for the year
(190)
(390)
Parent company statement
of comprehensive income
(DKKm)
Note 2022 2021
Loss for the year
(190)
(390)
Other comprehensive income
-
-
Total comprehensive
Loss (190)
(390)
Nuuday Annual Report 2022 83
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Parent company balance sheet
Assets
(DKKm) Note 2022 2021
Non
-current assets
Intangible assets
3.1 12,274 12,420
Property, plant and equipment
3.2 1,121 1,125
Lease assets
3.3 324 373
Investments in subsidiaries
3.4 645 678
Investments in associates and joint ventures
3 3
Other receivables
11 13
Prepaid expenses
8 -
Total non
-current assets 14,386 14,612
Current assets
Inventories
244 209
Trade receivables
3.5 1,129 1,044
Contract assets
3.6 616 529
Receivables from group
companies
74 660
Other receivables
8 9
Income tax receivables
2.4 - 21
Derivatives financial instruments
97 -
Prepaid expenses
629 607
Cash
402 2
Total current assets
3,199
3,081
Total assets
17,585 17,693
Equity and liabilities
(DKKm) Note 2022 2021
Equity
Share capital
4.1 0 0
Other reserves
1,335 1,093
Retained earnings
5,208 (707)
Total equity
6,543
386
Non
-current liabilities
Deferred tax liabilities
2.4 1,553 1,586
Provisions
48 61
Loans
4.2 - 7,453
Lease liabilities
3.3 272 314
Other payables
214 205
Total non
-current liabilities 2,087 9,619
Current liabilities
Loans
group companies 2,873 1,547
Lease liabilities
3.3 81 81
Trade payables
1,664 1,703
Contract liabilities
3.6 2,173 2,150
Payables to group
companies 1,305 1,474
Income tax payable
5 -
Other payables
817 689
Derivatives financial instruments
11 -
Provisions
26 44
Total current liabilities
8,955
7,688
Total liabilities
11,042 17,307
Total equity and liabilities
17,585
17,693
Nuuday Annual Report 2022 84
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Parent company statement of cash flows
(DKKm)
Note 2022 2021
Operating activities
Operating profit before depreciation, amortisation and special items
(
EBITDA)
1,725 1,822
Adjustment for non
-cash items 16 48
Payments related to provisions
(7)
(12)
Special items
(76)
(111)
Change in working capital
5.1 (440)
621
Interest received
13 5
Interest paid
(308)
(436)
Income tax paid
2.4 21 19
Total cash flow from operating activities
944
1,956
Investing activities
Investment in subsidiaries
3.4 - (20)
Investment in activities
(51)
-
Investment in property, plant and equipment
(361)
(328)
Investment in intangible assets
(883)
(727)
Investment in other non
-current assets - (4)
Divestment of joint ventures and associates
- 97
Sale of other non
-current assets 2 1
Change in loans to subsidiaries, joint ventures and associates
- 8
Total cash flow from investing activities
(1,293)
(973)
(DKKm)
Note 2022 2021
Financing activities
Lease payments
(74)
(79)
Cost related to long
-term loans (35)
-
Change in interest
-bearing receivables and payables 856 (902)
Total cash flow from financing activities
747
(981)
Total cash flow
398 2
Cash and cash equivalents at 1 January
2 -
Effect of exchange
-rate changes on cash and cash equivalents 2 -
Cash and cash equivalents at 31 December
402
2
Nuuday Annual Report 2022 85
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Parent company statement
of changes in equity
(DKKm)
Share
capital
Reserve for
capitalised
development
projects
Retained
earnings
Total
Equity at 1 January 20
21 0 948 (172) 776
Loss for the year
- 145 (535)
(390)
Total comprehensive income/(loss)
0
145
(535)
(390)
Total transactions with owners
-
-
-
-
Equity at 31 December 20
21 0 1,093 (707)
386
Loss for the year
-
242
(432)
(190)
Total
comprehensive income/(loss) - 242 (432)
(190)
Contributions of equity
0
-
6,347
6,347
Total transactions with owners
0 - 6,347 6,347
Equity at 31 December 2022
0
1,335
5,208
6,543
Nuuday Annual Report 2022 86
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Notes to parent company
financial statements
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2022 86
Nuuday Annual Report 2022 87
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
The Financial statements 2022 of the
parent company have been prepared
in accordance with the International
Financial Reporting Standards (IFRS) as
adopted by the European Union (EU) and
further disclosure requirements in the
Danish Financial Statements Act (report-
ing class “C stor”).
The parent company accounting policies
are the same as those applied for the
Group, with the additions mentioned
below. See note 1.1 to the consolidated
financial statements for the Group’s
accounting policies.
The accounting policies are unchanged
compared with the policies applied in the
Annual Report 2021.
Supplementary accounting policies
for the parent company
Investments in subsidiaries, joint ventures
and associates
The equity method is used for measuring
investments in subsidiaries, joint ventures
and associates. Under the equity
method, investments in a subsidiary, a
joint venture or an associate are recog-
nised on initial recognition at cost, and
the carrying amount is increased or
decreased to recognise the parent com-
pany’s share of the profit or loss of the
investment after the date of acquisition.
The parent company’s share of profit or
loss is recognised in the parent com-
pany’s profit or loss. Dividends received
from investments in subsidiaries, joint
ventures and associates reduce the
carrying amount of the investment. The
parent company’s share of other com-
prehensive income arising from the
investment is recognised in other
comprehensive income of the parent
company.
Reserve for capitalised development
projects
In accordance with the Danish Financial
Statements Act, the parent company
has established a non-distributable
reserve in equity regarding capitalised
development projects. This reserve will
be reversed as the development projects
are amortised or impaired.
For information on critical accounting
estimates and judgements, see note 1.2
to the consolidated financial statements.
For information on new accounting
standards for the Group, see note 1.3 to
the consolidated financial statements.
1.1
| Accounting policies
1.2
| Critical accounting estimates and judgements
1.3
| New accounting standards
Nuuday Annual Report 2022 88
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Remuneration for the Board of Directors
and the Executive Committee is
described in note 2.4 to the consolidated
financial statements.
2.1
| Revenue
(DKKm)
2022 2021
Sales of goods recognised at a point in time
1,394 1,364
Sales of services recognised over
time 13,053 13,124
Total
14,447
14,488
Revenue specified by services
(DKKm)
2022
2021
Landline voice
746 806
Mobility services
5,085 4,908
Internet & network
3,232 3,298
TV
3,452 3,438
Other services
1,932 2,038
Total
14,447 14,488
2.2
| Personnel expenses
(DKKm)
2022 2021
Wages and salaries (including short
-term and long-term bonus) (1,934)
(1,926)
Pensions
(180)
(175)
Social security
(42)
(36)
Total
(2,156)
(2,137)
Of which capitalised as non
-current assets 462 461
Total
(1,694)
(1,676)
¹
Denotes the average number of full-time employee equivalents including permanent employees and trainees.
2.3
| Special items
(DKKm)
2022 2021
Costs related to redundancy programmes
(49)
(103)
Other restructuring costs, etc.
(15)
(8)
Loss from rulings
(2)
(16)
Special items before income taxes
(66)
(127)
Income taxes related to special items
14 27
Special items related to joint ventures and associates
-
49
Total special items
(52)
(51)
Nuuday Annual Report 2022 89
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
2.4
| Income taxes
2022 2021
(DKKm)
Income tax
income/
(expense)
Income tax
payable/
(receivable)
Deferred tax
liabilities/
(assets)
Income tax
income/
(expense)
Income tax
payable/
(receivable)
Deferred tax
liabilities/
(assets)
At 1 January
(21)
1,586
(58)
1,624
Income taxes
13 8 (21)
29 24 (53)
Adjustment of tax for previous years
15
(3)
(12)
(9)
(6)
15
Tax paid
21
19
Total
28 5 1,553 20 (21) 1,586
Income taxes are specified as follows:
Income excluding special items
14 (7)
Special items
14 27
Total
28
20
D
eferred tax (DKKm) 2022 2021
Intangible assets
42 64
Other
41 31
Current
83 95
Intangible assets
1,441 1,454
Property, plant and equipment
(25)
(5)
Lease assets and liabilities
(6)
(4)
Other
60 46
Non
-current 1,470 1,491
Deferred tax at 31 December
1,553 1,586
E
ffective tax rate (%) 2022 2021
Danish corporate income tax rate
22.0 22.0
Profit from subsidiaries, joint ventures and associates
(4.6)
(1.5)
Adjustment of tax for previous years
9.7 (2.6)
Limitation on the tax deductibility of interest
expenses (22.0)
(19.8)
Other
4.1 (0.1)
Effective tax rate excluding special items
9.2 (2.0)
Special items
3.6 6.9
Effective tax rate including special items
12.8 4.9
Nuuday Annual Report 2022 90
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
3.1
| Intangible assets
2022 2021
(DKKm)
Goodwill
Customer
relationships
Brands
Other rights,
software, etc.
Total
Goodwill
Customer
relationships
Brands
Other rights,
software, etc.
Total
C
ost at 1 January 8,815 14,345 4,162 8,642 35,964 8,815 14,351 4,162 8,683 36,011
Additions
- - - 883 883 - - - 727 727
Additions related to acquisition of activities
- - - 51 51 - - - - -
Assets disposed of or fully amortised
- (146)
- (411) (557)
- (6)
- (768)
(774)
C
ost at 31 December 8,815 14,199 4,162 9,165 36,341 8,815 14,345 4,162 8,642 35,964
A
mortisation and impairment losses at 1 January (3,693)
(12,840)
(110)
(6,901) (23,544)
(3,693) (12,515)
(110)
(6,821)
(23,139)
Amortisation
- (237)
- (829) (1,066)
- (331)
- (836)
(1,167)
I
mpairment losses for the year - - - (14) (14)
- - - (12)
(12)
Assets disposed of or fully amortised
- 146 - 411 557 - 6 - 768 774
A
mortisation and impairment losses at 31 De-
cember
(3,693)
(12,931)
(110)
(7,333) (24,067)
(3,693) (12,840)
(110) (6,901)
(23,544)
Carrying amount at 31 December
5,122
1,268
4,052
1,832
12,274
5,122
1,505
4,052
1,741
12,420
Nuuday Annual Report 2022 91
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
3.2
| Property, plant and equipment
2022 2021
Network
infra-
structure
Equipment
Assets under
construction Total
Network
infra-
structure
Equipment
Assets under
construction Total
C
ost at 1 January 2,373 724 81 3,178 2,454 695 58 3,207
Additions
287 45 37 369 276 42 23 341
Assets disposed of
(538)
- - (538) (357)
(13)
- (370)
C
ost at 31 December 2,122 769 118 3,009 2,373 724 81 3,178
D
epreciation and impairment losses at 1 January (1,456)
(593)
(4)
(2,053) (1,449)
(541)
(2)
(1,992)
Depreciation
(312)
(61)
- (373) (362)
(65)
- (427)
I
mpairment losses for the year - - - - (2)
- (2)
(4)
Assets disposed of
538 - - 538 357 13 - 370
D
epreciation and impairment losses at 31 December (1,230)
(654)
(4)
(1,888) (1,456) (593)
(4)
(2,053)
Carrying amount at 31 December
892
115
114
1,121
917
131
77
1,125
Nuuday Annual Report 2022 92
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
The total cash outflow for leases in 2022
was DKK 84m (2021: DKK 90m), of which,
DKK 10m (2021: DKK 11m) related to inter-
est payments on lease liabilities.
3.3
| Lease assets and liabilities
2022 2021
Lease assets
(DKKm)
Land and
buildings
Vehicles and
equipment
Total
Land and
buildings
Vehicles and
equipment
Total
Carrying amount at 1 January
339 34 373 372 38 410
Additions
12 26 38 39 21 60
Disposals
- (4)
(4)
(11)
(1)
(12)
Depreciation
(59)
(24)
(83)
(61)
(24)
(85)
Carrying amount at 31 December
292 32 324 339 34 373
Lease liabilities
(DKKm)
2022
2021
Recognised in the balance sheet at present value:
Current
81
81
Non-current
272
314
Total
353 395
Maturing within 1 year
81 81
Maturing between 1 and 3 years
139
136
Maturing between 3 and 5 years
63
88
Maturing after 5 years
70 90
Total
353 395
Amounts recognised in the statement of profit and loss
(DKKm) 2022 2021
Expense relating to short
term leases (29) (24)
Depreciation charge of lease assets, cf. above
(83) (85)
Interest expense (included in financing cost)
(10) (11)
Nuuday Annual Report 2022 93
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
3.4
| Investments in subsidiaries
(DKKm)
2022 2021
C
ost at 1 January 752 732
Additions
- 20
Cost at 31 December
752
752
Value adjustments
at 1 January (74)
(53)
Share of profit/(loss)
(33)
(21)
Value adjustments
at 31 December (107)
(74)
Carrying amount at 31 December
645
678
Overview of subsidiaries at 31 December 202
2
Company name
Domicile
Currency
Ownership
share (%)
Subsidiaries:
Hiper A/S
Copenhagen, Denmark
DKK 100
TDC Telco ApS
Taastrup, Denmark
DKK 100
Nuuday Annual Report 2022 94
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
3.5
| Trade receivables
(DKKm)
2022 2021
Trade receivables
1,218 1,207
Expected credit losses
(89)
(163)
Trade receivables, net
1,129 1,044
Expected credit losses
at 1 January (163)
(179)
Expected credit losses
recognised (50)
(34)
Realised
credit losses 99 33
Reversed
expected credit losses 25 17
Expected credit losses at 31 December
(89)
(163)
Trade receivables
(DKKm) Not yet due
Less than
1 month
past due
More than
1 month
past due
More than
3 months past
due
More than
6 months past
due
Total
202
2
Expected loss rate
2% 1% 2% 18% 76% 7%
Gross carrying amount
895 151 61 22 89 1,218
Expected credit losses
(15)
(1)
(1) (4)
(68)
(89)
20
21
Expected loss rate
1% 1% 4% 11% 75% 14%
Gross carrying amount
778 144 50 37 198 1,207
Expected credit losses
(7)
(2)
(2) (3)
(149)
(163)
3.6
| Contract assets and liabilities
(DKKm)
2022 2021
Assets recognised from costs to obtain a contract (SAC)
226 197
Assets recognised from costs to fulfil a contract
41 18
Assets recognised from costs to fulfil an
internal contract 349 314
Total contract assets
616 529
Deferred subscription income
2,168 2,133
Work in progress for the account of third parties, liabilities
5 17
Total contract liabilities
2,173 2,150
Nuuday Annual Report 2022 95
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
For information on share capital, see note 4.1 to the consolidated
financial statements.
For a specification of loans and a reconciliation between loans and cash flows
from financing activities, see note 4.2 to the consolidated financial statements.
(DKKm)
2022 2021
Interest income from group
companies - -
Other interest income
13 5
Interest expenses to group
companies (360)
(391)
Other Interest expenses
(54)
(54)
Net interest
(401)
(440)
Currency translation adjustments
(1)
(6)
Fair value adjustments
85
-
Interest and currency translation adjustments
(317)
(446)
Profit/(loss) from joint ventures and associates
- 49
Total
(317)
(397)
4.1
| Equity
4.2
| Loans
4.3
| Financial income and expenses
5.1
| Change in working capital
(DKKm)
2022 2021
Change in inventories
(35)
(55)
Change in
receivables (142)
166
Change in contract assets
(87)
(69)
Change in trade payables
(181)
743
Change in contract liabilities
22 (29)
Change in prepaid expenses
6 (54)
Change in other items, net
(23)
(81)
Total
(440)
621
Nuuday Annual Report 2022 96
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
For information about the related parties
of the Group, see note 6.2 to the consoli-
dated financial statements. The parent
company has the following transactions
and balances with its subsidiaries (cf. the
overview of subsidiaries in note 3.4):
Remuneration for the Board of Directors
and the Executive Committee is
described in note 2.4 and incentive
programmes are described in note 6.1 to
the consolidated financial statements.
All transactions with related parties are
made on market terms.
Nuuday A/S is included in the consoli-
dated financial statements of TDC
Holding A/S and of the ultimate parent
company DKT Holdings ApS. The consoli-
dated financial statements can be down-
loaded from
tdcgroup.com/en/investor-
relations
.
For information on other financial
commitments, see note 6.4 to the
consolidated financial statements.
6.1
| Related parties
Subsidiaries
(DKKm) 2022 2021
Income
14 9
Expenses
(113)
(108)
Receivables
75 17
Debt
(219)
(7)
6.2
| Fees to auditors elected by
the Annual General Meeting
Fees to auditors elected by the Annual General Meeting
(DKKm)
2022
2021
Statutory audit
3
2
Other assurance engagements
1 -
Tax advisory services
- -
Other services
5 1
Total non-statutory audit services
6
1
Total
9 3
6.3
| Other financial commitments
Nuuday Annual Report 2022 97
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Cash with a carrying amount of
DKK 402m are pledged as security
for long-term loans.
For information on pending lawsuits, see
note 6.5 to the consolidated financial
statements.
For information on events after the bal-
ance sheet date, see note 6.6 to the
consolidated financial statements.
6.4
| Pledges and contingencies
6.5
| Events after the balance sheet date
Nuuday Annual Report 2022 98
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Statements
Nuuday Annual Report 2022 98
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2022 99
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Executive Committee
Board of Directors
Nuuday Annual Report 2022 100
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
We have audited the consolidated finan-
cial statements and the parent financial
statements of Nuuday A/S for the finan-
cial year 01.01.2022 - 31.12.2022, which
comprise the income statement, state-
ment of comprehensive income, balance
sheet, statement of changes in equity,
cash flow statement and notes, including
a summary of significant accounting poli-
cies, for the Group as well as the Parent.
The consolidated financial statements
and the parent financial statements are
prepared in accordance with Interna-
tional Financial Reporting Standards as
adopted by the EU and additional re-
quirements of the Danish Financial
Statements Act.
In our opinion, the consolidated financial
Independent auditor’s report
Nuuday Annual Report 2022 101
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
• Evaluate the overall presentation,
CVR No 33
Identification No (MNE) mne32208
Identification No (MNE) mne23347
Nuuday Annual Report 2022 102
Forward-looking statements
Forward
-looking statements
This report may include statements about Nuuday’s expectations, beliefs, plans, objectives,
assumptions or future events or performance that are not historical facts and may be forward-looking. These
statements are often, but not always, formulated using words or phrases such as “are likely to result”, “are expected to”, “w
ill continue”, “believe”, “is anticipated”, “estimated”, “intends”, “expects”, “plans”,
“seeks”, “projection” and “outlook” or similar expressions or negatives thereof. These statements involve known and unknown r
isks, estimates, assumptions and uncertainties that could cause actual results,
performance or achievements or industry results to differ materially from those expressed or implied by such forward
-looking statements.
Any forward
-looking statements are qualified in their entirety by reference to the factors discussed throughout this financial report. Key factors that may have a direct bearing on Nuuday’s results
include: the competitive environment and the industry in which Nuuday operates; contractual obligations in Nuuday’s financing
arrangements; developments in competition within the domestic and interna-
tional communications industry; information technology and operational risks
, including Nuuday’s responses to change and new technologies; introduction of and demand for new services and products;
developments in demand
, product mix and prices in the mobile and multimedia services market; research regarding the impact of mobile phones on health; changes in applicable legislation, including but not
limited to tax and telecommunications legislation and anti
-terror measures; decisions made by the Danish Business Authority; the possibility of being awarded licences; increased interest rates; the status of
important intellectual property rights; exchange
-rate fluctuations; global and local economic conditions; investments in and divestment of domestic and foreign companies; and supplier relationships.
As the risk factors referred to in this report could cause actual results or outcomes to differ materially from those express
ed in any forward-looking statements made in this Report, undue reliance is not
to be placed on any of these forward
-looking statements. New factors will emerge in the future that Nuuday cannot predict. In addition, Nuuday cannot assess the impact of each factor on its business or
the extent to which any fac
tor, or combination of factors, may cause actual results to differ materially from those described in any forward-looking statements.