Svitzer A/S
Annual Report 2023
The Annual Report comprise:
• The Group Annual Report (pages 1-111)
• The Parent Company Financial Statements (pages 112 - 130)
Company Address: Sundkrogsgade 17, 2100 Copenhagen Ø, Denmark
Company reg.no. 43 26 60 12
The Annual Report was presented and adopted at the
Annual General Meeting of the Company on 23 February 2024
Copenhagen, 23 February 2024
Chairman of the General Meeting
Consolidated Financial Statements
55 Consolidated income statement
55 Consolidated statement of comprehensive income
56 Consolidated balance sheet
57 Consolidated cash flow statement
58 Consolidated statement of changes in equity
60 Notes to the consolidated financial statements
105 Company Overview
106 Management’s Statement
107 Independent Auditor’s Report
109 Definition of Terms
Management Review
Executive Summary
5 Svitzer at a Glance
6 Letter from the CEO
9 Financials at a Glance
10 Case Story: Setting the Standard
for Sustainable Marine Services
Towage and Marine Services
12 Our Business
15 Our Market
17 Our Strategy
19 Case Story: Svitzer’s Focus on Pragmatic
Innovation Reshapes Maritime Standards
Performance
22 Operational Highlights 2023
24 Financial Performance 2023
28 Outlook for 2024
29 Case Story: Dedication Secured Woodside
Terminal Towage Contract
Sustainability
32 Sustainability
39 Case Story: Partnering with the Industry
to Create Sustainable Growth
Governance
41 Corporate Governance
45 Shareholders, Capital Structure and Allocation
46 Board of Directors
47 Executive Leadership
48 Management Remuneration
50 Risk Management
Table of Contents
2Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial StatementsFinancial Statements
Our Vision
Leading Sustainable Marine Services,
Innovating with and for People, Customers
and Communities.
Svitzer at a Glance
Every 3-4 minutes, somewhere in the world, a
ship relies on Svitzer for safe and sustainable
towage in or out of a bustling port or terminal.
Cargo and container ships, tankers, and car
carriers etc. depend on Svitzer’s expertise to
manoeuvre them safely the first and the last
mile of their journeys.
Founded in 1833, Svitzer builds on almost
200 years of experience, and our powerful
tugboats and experts in towage work tire-
lessly to keep goods flowing, businesses
thriving, and communities connected. Today,
Svitzer is a leading global port and terminal
infrastructure provider, serving approximately
2,000 customers in 141 ports and 40 termi-
nals across 37 countries through a fleet of
456 vessels.
29.2%
2023 EBITDA margin
1.7bn
DKK 2023 EBITDA
Employees
4,000
5.8bn
DKK 2023 Revenue
456
Vessels
1
All data based for FY 2023. Countries, Ports, vessels and
terminals include Svitzer Group and all joint ventures and
associated companies. Employees (approximate) include
Svitzer and subsidiaries.
2,000
Custmers
37
Countries
Group Annual Report 2023
Onshore
778
Seafarers
3,214
79
Nationalities
5Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
A year of solid performance
2023 was yet again a year of solid performance for Svitzer. We kept
a steady course and delivered mission-critical, safe, and reliable
towage and marine services to our approximately 2,000 customers
around the globe and across different industries.
Our total revenue grew 6% to DKK 5,786m
driven by a record number of harbour towage
tug jobs of more than 150,000 in total. Adjusted
for foreign exchange impact, total revenue
grew 9.5%. EBITDA was up 4% to DKK 1,690m,
resulting in a EBITDA margin of 29.2%.
Over the past five years, we have consistently
achieved around 6% annually revenue
growth with an average EBITDA margin of 30%.
During the year, we secured a number of
signifi cant commercial contract wins to further
reaffirm our global leadership position. This
includes a seven-year contract for Terminal
Towage services at Fawley Refinery, one of
the UK’s largest oil refineries, and a five-year
contract, commencing in 2024, to deliver five
tugboats servicing BHP’s operations at Port
Hedland, Western Australia, the world’s largest
iron ore export port. We also secured a 15-year
Terminal Towage contract to service Gastrade’s
Alexandropoulis Independent Natural Gas
System, which marked our entry into Greece.
Further, we started up operations on several
previously signed contracts. This included a
Kasper Friis Nilaus
Chief Executive Officer
Letter from
the CEO
Executive Summary
We secured a number of
significant commercial contract
wins to further reaffirm our
global leadership position
6Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
contract with Oman India Fertiliser Co. in Oman
and the contract with Australian energy company
Woodside Energy Ltd. to provide towage
and pilot transfer services at their LNG export
operations in the Port of Dampier. Meanwhile, in
Brazil, we continued to expand our fleet, clearly
demonstrating our strategic commitment to
servicing customers along the Brazilian coast.
In Australia, a new four-year National Towage
Enterprise Agreement came into effect in July,
providing certainty and stability for both our
colleagues and customers throughout Australia.
In Russia, we closed down our operations as a
consequence of Russia’s invasion of Ukraine.
As part of this process, we were pleased to see
that all former employees of Svitzer found new
employment.
New strategy launched
In early 2023, we launched a new strategy, firmly
anchored in our vision of leading sustainable
marine services and setting a clear direction for
future growth.
We have identified a number of mutually rein-
forcing focus areas and differentiators, which
in combination enable us to provide more
value to customers and other stakeholders as
industry megatrends, including decarbonisation
and digitalisation of port operations, progress
at speed.
While the delivery of cost-effective, safe, and
reliable services remains a top priority for
Svitzer, we have further intensified our efforts
to move even closer to our customers to
strengthen the customer experience. Several
commercial initiatives have been launched
to deepen our understanding of customer
needs and ensure we remain at the forefront
of such needs. Consequently, it is rewarding
to see that we in 2023 managed to improve
customer satis faction and loyalty, based on the
globally recognised NPS (Net Promoter Score)
standard to an all-time high of 39.
Leading the decarbonisation of towage
services
As a global leader in sustainable marine services,
we take our responsibility towards our customers,
society, and the environment very seriously.
We take an active role in leading the green
transition in our industry, actively showing the
way towards more sustainable practices by
minimising the environmental impact of our
operations. We have set two ambitious targets:
to reduce the CO
2
intensity of our global fleet
by 50% by 2030, and to reach fully carbon
neutral operations by 2040.
In 2023, we reached several important decar-
bonisation milestones on our way to these
targets. Firstly, we ran up to 70 tugboats on
Hydrotreated Vegetable Oil (HVO) instead of
Letter from the CEO
Marine Gas Oil (MGO), saving approximately
23,000 tonnes of CO
2
in 2022 alone. Secondly,
our ‘Aim for 8 initiative’ that prompts masters
to sail at a maximum of eight knots during tug
operations has saved more than 930,000
liters of fuel and 2,600 tonnes of CO
2
, with a
significant potential for further fuel savings and
emission reductions ahead.
Based on those combined initiatives, we
made strong progress on our targets in 2023
by reducing the CO
2
intensity of our global
fleet by 24% compared to 2020, and we are
so far on track to deliver on our long-term
decarbonisation targets.
Our people make the difference
Across our markets and regions, it is our pas-
sionate, deeply committed and professional
colleagues that make the defining difference for
our company. I would like to extend my sincere
appreciation while thanking them for their hard
work and dedicated service to Svitzer and our
customers in 2023.
I am particularly pleased to see how our col-
leagues, across sea and shore, have proactively
leaned into our strategy and the changes it
brings to our business and ways of working.
The engagement and motivation of our people
continue to be as critical for our future success
as ever, which is why I am delighted to see our
We take on the role
of leading the green
transition of our industry.
7Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
people engagement score be in the top 25%
quartile in 2023. It is only when we enable our
people to perform, thrive, and grow that Svitzer
can continue to deliver superior customer
experiences.
Becoming a stand-alone listed company
2024 will be another exciting year for Svitzer, not
least following A.P. Møller – Mærsk’s decision
to initiate a separation of Svitzer through a
demerger and listing of Svitzer Group A/S on
Nasdaq Copenhagen, whereby A.P. Møller –
Mærsk shareholders will receive listed shares
in Svitzer Group A/S. A listing presents Svitzer,
our customers, people, and shareholders with
new opportunities for sustainable growth.
Our core business and strategy remain the same,
but a separate listing is a unique opportunity
to position ourselves even stronger as an
independent company and leader in global
towage and marine services.
In February 2024, as part of the preparations
for becoming a stand-alone listed company,
the Board of Directors was strengthened with
new members. The Board of Directors now
comprises Chair Morten H. Engelstoft, Vice
Chair Robert M. Uggla, Christine Brennet
( Morris) and Peter Wikström.
The Board of Directors and our Global Leader-
ship Team together represent many years of
experience within the commercial, operational,
Letter from the CEO
technical, financial, regulatory, and safety
aspects of the towage and marine services
industry.
As we continue to execute on our strategy to
grow Svitzer sustainably, I am convinced that
we are both organisationally, financially, and
operationally ready for a future as a stand-alone
listed company. At the centre of everything
we do will be the safety of our people and the
continued efforts to listen and respond to the
needs of our customers.
We are organisationally,
financially, and
operationally ready for a
future as a stand-alone
listed company.
Kasper Friis Nilaus,
Chief Executive Officer
8Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Financials at a Glance
Executive Summary
2021
DKK m
2022 2023
5,786
5,476
4,653
Revenue
DKK m
2021 2022 2023
1,690
1,623
1,383
EBITDA
DKK m
2021 2022 2023
1,465
1,153
944
CAPEX
Financial statements (DKK m) 2023 2022 2021 2020
*
2019
*
Income statement
Revenue 5,786 5,476 4,653 4,453 4,632
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 1,690 1,623 1,383 1,412 1,369
Depreciation, amortisation and impairment losses, net -829 -957 -774 -763 -930
Profit/loss before financial items (EBIT) 1,007 820 762 922 596
Financial items, net 39 -21 -72 -157 -203
Profit/loss before tax 1,046 799 690 765 393
Tax -286 -149 -118 -96 -149
Profit/loss for the year 760 649 573 670 244
Profit/loss for the year-Svitzer’s share 705 598 537 644 213
Balance sheet
Total assets 14,378 14,442 13,615 12,119 12,143
of which tangible assets 8,633 8,069 7,746 7,285 7,504
Equity 6,379 12,324 11,627 10,930 4,400
Liabilities 7,999 2,118 1,988 1,189 7,742
Invested capital 9,778 9,750 9,290 9,016 8,999
Net interest-bearing debt -3,745 2,576 2,325 1,914 -4,581
Cash flow statement
Change in net working capital -113 -205 -77 138 23
Cash flow from operating activities 1,416 1,291 1,252 1,449 1,159
Cash flow from investing activities -1,061 -910 -703 -934 -476
Capital lease instalments – repayments of lease liabilities -100 -98 -96 -98 -108
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) -1,465 -1,153 -944 -854 -612
Cash flow from financing activities -452 -402 -561 -534 -686
Free Cash Flow 223 232 391 566 663
Key financial figures
Revenue growth 5.7% 17.7% 4.5% -3.9% 5.8%
EBITDA margin 29.2% 29.6% 29.7% 31.7% 29.6%
Return on equity after tax 8.1% 5.4% 5.1% 8.7% 6.2%
Return on invested capital (LTM) 7.6% 6.7% 7.0% 9.0% 4.9%
Revenue from Harbour Towage (HT) activities 3,993 3,731 3,124 3,001 3,149
EBITDA from HT acitivties 1,034 955 833 784 812
Number of tug jobs in Harbour Towage (HT) 151,018 146,115 137,738 137,764 134,359
Revenue from Terminal Towage (TT) activities 1,787 1,764 1,548 1,508 1,520
EBITDA from TT activities 700 679 597 640 606
Environmental and social data
CO
2
intensity reduction 24.4% 13.4% 3.7% - -
Average number of emloyees 3,397 3,285 3,127 3,099 3,105
* The numbers for the years 2019 and 2020 are unaudited and are estimates from periods before Svitzer Group has applied IFRS accounting standards.
Reference is made to Page 111 for definition of terms.
9Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Setting the Standard
for Sustainable Marine
Services
Case Story
Svitzer’s commitment to emis-
sions reduction is evident in our
tangible achievements. Overall,
we achieved a 24% reduction
in CO
2
intensity of our global
fleet in 2023 compared to 2020,
through digitalisation, behavioural
initiatives and conversion
to biofuels.
The use of data and digitalisation play a crucial
role in Svitzer, as they can provide valuable
insights for understanding the carbon foot-
print of our tugboats and more broadly in the
local ports. By collecting real-time data from
our global operations, we are able to develop
data-driven insights and solutions that advance
operational efficiency and reduce emissions in
our own operations, as well as for our partners,
and customers.
One of the solutions developed by Svitzer is
the digital tool Port Monitor. Port Monitor drives
fuel and carbon intensity reduction by providing
insights into efficiency progress per vessel, per
port, and across the entire operation. It also
assigns each tugboat job with an EcoRating,
representing the fuel efficiency of the particular
job, to enable conversations with the crew about
how to minimise fuel consumption and environ-
mental impact.
Initiatives like ‘Aim for 8’ exemplify Svitzer’s
proactive approach in changing behaviours to
reduce emissions by encouraging masters to
reduce speed to 8 knots during mobilisation and
demobilisation. Launched in 2022, this initiative
has in 2023 already decreased carbon intensity
by more than 6% compared to the 2020 baseline.
EcoTow represents another sustainable solution
offered by Svitzer, offering customers a low-
carbon fuel alternative to traditional towage
services. Up to 70 tugboats have been converted
from Marine Gas Oil (MGO) to Hydrotreated
Vegetable Oil (HVO) since the introduction of the
EcoTow tugboats in 2021. EcoTow is available to
Svitzer customers globally and offers immediate
Scope 3 CO
2
emission reductions.
The solution provides customers with emission
reductions and the conversion to HVO has saved
the emission of approximately 23,000 metric
tons of CO
2
in 2022 alone.
Port of Bristol
UK
In addition to the vast
potential a solution like
Port Monitor holds for
internal optimisation, it’s
relevant to a broad range
of customers.
One example being
terminal towage
customers who, in most
instances, pay for the
fuel used on our vessels
and consequently take
a strong interest in our
fuel consumption and
any opportunity for fuel
and carbon emission
reductions.
Kasper Karlsen
Global Chief Operating Officer
10Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Our
Business
Svitzer’s business is centred around the use of tugboats to
assist large seaborne vessels in manoeuvring in and out of ports
and terminals to berth and unberth.
Towage and Marine Services
Towage is a mission critical port
infrastructure service enabling efficient
and safe marine traffic
Ooad and Onload of Ship
Waiting for Clearance at Sea
Assist in manoeuvring to an assigned berth Berthing of ship
Assist in manoeuvring out of the portUnberthing of ship
We also provide vessels, ports, and terminals
with a range of related marine services. This
includes line handling, firefighting, emergency
response, and where relevant, maintenance
services and operation of smaller service boats,
in certain locations.
Our services play a crucial role as part of critical
port infrastructure. Reliable and safe towage
services are essential to a safe and efficient
berthing of vessels in ports and terminals, and
delays in towage services may trigger costly
delays for the vessels entering or leaving ports or
terminals. While towage services are business-
critical to port and terminal operations, they
represent an estimated less than 10% of total
port costs and less than 1% of total voyage costs
for medium- to large-sized container vessels.
Reducing Risk in
Navigation through Ports
Enhancing Operations and
Driving Efficiency in Port Calls
Limiting Delays Triggering
Delays for Following Vessels
12Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Two Main Business Areas
Our Business
We have divided our towage service business into two main areas,
Harbour Towage and Terminal Towage.
Harbour Towage
In Harbour Towage, we enter into agreements
with vessel owners or operators to provide
towage services for their vessels in specific ports.
In addition to agreements with vessel owners
or operators, we may also enter into a license
agreement with the port authority granting the
right to operate in that port. The contract period
with the vessel owners or operators is usually
between one and three years. Licenses issued
by the port can be of a longer duration, usually
between five to ten years.
The fee structure for customers in the Harbour
Towage segment is usually determined based
on a per-tug-job basis which means that we are
paid a certain fee per tug required for a given
towage service. Each port has a public tariff for
towage jobs and other related services. The fee
is either determined based on the public tariff or
a negotiated discount to the public tariff.
In some instances, typically for certain licensed
ports, the fee or any increase in fees is agreed
with or set by the port authority as part of the
tender for the license. These fees are then typi-
cally adjusted or reviewed every year, reflecting
consumer price index developments, and may
also incorporate more frequent adjustments
related to changes to the price of fuel.
Harbour Towage Terminal Towage
Two main segments with overlapping and differentiated dynamics.
13Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
We operate in 141 ports and 40 terminals
across 37 countries
The pioneering
TRAnsverse design
fundamentally
changes towage
operations, drives
efficiency and
reduces emissions.
— Higher steering forces
— Manoeuvre in all directions
— Maximises efficiency,
minimising risk
— Reduces fuel consumption
Terminal Towage
31%
DKK 1,787
Terminal towage
40%
DKK 700
Harbour Towage
69%
DKK 3,993
Harbour Towage
60%
DKK 1,034
Revenue 2023* EBITDA 2023*
Terminal Towage
In Terminal Towage, we enter into agreements
with on- and off-shore terminal operators for
the delivery of towage services by making a pre-
determined number of tugboats, and sometimes
other vessels, available to service all vessels that
enter or leave the specific terminal.
The fee structure for these contracts is a fixed
day rate paid by terminal operators regardless
of towage volumes. Adjustments of fees are
relative to each contract but are often tied to
changes of the consumer price index, pre-
determined annual rate increases, or increases
in certain costs e.g. crew.
Terminal Towage contract periods differ but are
sometimes up to 30 years long, with an average
contract length of approximately 10 years.
* Revenue and EBITDA which is classified as unallocated activities do not form part of these numbers
14Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Our
Market
Towage and Marine Services
The global towage market is inherently resilient and stable
and has shown consistent long-term growth, reflecting a
continuous increase in the number of port calls.
Increase in global trade volumes
Growth in global trade volumes promotes more seaborne
cargo and results in more and larger cargo vessels being put
into operation which in turn increases the demand for towage
services. Consequently, the cargo volume growth per commodity
is the main underlying driver of growth in port calls. The global
fleet size and trade flows are the two main parameters driving
the total volume of port calls and determining the location of
the port calls.
Shift towards larger vessels
As a result of increasing global trade volumes, seaborne cargo
vessels are becoming increasingly larger, enabling them to
transport more cargo per voyage. The number of tugboats
required per port call typically depends on the type and the size
of the vessel entering the port. With larger vessels expected
to claim a larger share of the market, more tugboats will be
required to safely manoeuvre these vessels. The increase in
the average size of cargo vessels has resulted in the number of
tug jobs growing faster than port calls, which is also expected
towards 2028.
Increase in average towage
service tariffs
Average tariffs per tug job in the global towage market has
increased and is expected to continue to increase. Tariffs are
usually calculated based on a number of factors. This includes
the gross tonnage and size of the vessel to be towed, the
number of tugboats required, the duration of the tug job, and
global price inflation. The main driver for the general year-on-
year increase in towage service tariffs is the general increase in
costs as a result of price inflation, resulting in higher operating
costs for towage operators.
As a mission-critical service, which provides
for safe and efficient marine operations in ports
and terminals, the estimated value of the global
towage market in 2022 was approximately
USD 11.6bn.
Svitzer’s Group addressable market has grown
at a CAGR of 2.4% between 2018 and 2022
and is expected to grow at a CAGR of 4.4%
between 2022 and 2028*.
Expected market growth
2022-2028 (CAGR)
2018 – 2022
2.4%
2022 – 2028
4.4%
The expected market
growth will be driven
by three main growth
drivers:
* The addressable market is defined as the markets / ports
Svitzer considers to be addressable, equivalent to a total
market value of USD 6.7bn in 2022 of which USD 2.7bn
is currently addressed and USD 4.0bn is currently not
addressed. Thereby, the addressable market is excluding
markets considered structurally unavailable due to
restrictions on foreign companies, inability to compete,
geopolitics, risk appetite and customer types.
15Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Our Market
Market Trends
In addition to the growth drivers, three key
trends are shaping the global towage industry
and increasing its complexity, benefiting key
players with the capabilities to meet market
demand.
Decarbonisation
Decarbonisation is gradually becoming more
important among customers in the maritime
industry as they increase focus on their Scope 3
emissions. In addition, some ports start driving
the implementation of green towage even if it
comes with additional costs. This increased
focus from customers is driven by their own
targets, as well as transparency regulations,
such as the European Union’s Corporate
Sustain ability Reporting Directive, which will
gradually require companies to report on their
carbon footprint.
Digitalisation
Digital tools and use of operational data are
increasingly driving operational optimisations to
reduce the idle time and fuel consumption of
tugboats, while also optimising maintenance
of vessels.
Market Consolidation
The towage market is experiencing ongoing
consolidation, driven both by expected scale
advantages as well as increased quality and
expanded geographic coverage of the services
provided. Further consolidation is expected
to also be driven by the need to invest in
decarbonisation and optimisation of operations.
This will increase complexity and costs of
operations, making it more difficult for smaller
towage operators to compete.
16Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Our Strategy
Towage and Marine Services
Our strategy is centred on our commitment
to three core focus areas, which reinforce each
other, and is rooted in our vision to be a leader
in sustainable marine services, innovating with
and for people, customers and communities.
We aim to grow organically in line with the
overall towage market, by targeting specific
projects within Harbour Towage and Terminal
Towage, and through continued leadership
in decarbonisation, as well as through M&A
growth on an opportunistic basis.
Sustainable Marine Services
Our ambition of continuously growing and
developing our business in a safe, financially
sound, and environmentally sustainable way,
will be met through:
• Commercial excellence – tailored
solutions and value propositions for
customers to help win new contracts
and retain customers through contract
renewals and extensions.
• Portfolio enhancements – differentiate
from competitors by offering innovation,
improved efficiency and safety that adds
value for customers and ports with the
aim of being the preferred provider for
customers and drive additional business.
• Cost efficiency – driving efficiency and
reducing costs through increased asset
and crew utilisation, procurement savings,
operating costs optimisation, bunker costs
reduction and extended dry-dock intervals.
Our Focus Areas
Our Differentiators
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Leading sustainable marine services,
innovating with and for people,
customers and communities
OUR VISION
Enabling Growth
As customer demands continue to change globally and new industry
trends such as decarbonisation and digitalisation emerge, being a
global leader in sustainable marine services requires us to work closely
with customers and other industry stakeholders, while continuing to
focus on opportunities for mutual value creation.
17Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Sustainable Marine ServicesData & Digital Solutions Partnering for Green Ports
Feeds trust and know-how
Creates dierentiation Creates dierentiation
Feeds data and unmet needs
Data and Digital Solutions
Operating in ports and terminals globally, Svitzer
collects large amounts of data every day. This
enables us to unlock data-driven insights and to
develop digital solutions that deliver operational
efficiency and value for ourselves, our customers
and other in-port stakeholders.
Our Strategy
Partnering for Green Ports
Through partnerships with port operators, port
authorities, shipping lines, and other in-port
stakeholders, we explore long-term, collaborative
development of innovative business models,
digital products, and tools that enable the
decarbonisation of port operations.
Our three strategic focus areas have a mutually reinforcing effect between each other, creating
a competitive advantage where we continuously learn from our customers and partners and act on
these insights.
• The more ports and terminals
we can serve with decarbon-
isation solutions, the more
attractive we become as a
green port partner to other
ports and customers.
• Attractive data and digital
solutions strengthen our
customer value proposition
and helps the expansion of
our existing core products.
• The more ports and ter-
minals we serve, the more
data we get to create data
and digital solutions and
spark the interest of new
ports and terminals.
18Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Svitzer’s Focus on Pragmatic Innovation
Reshapes Maritime Standards
Case Story
Staying ahead of the curve in
meeting customer needs is our
top priority. Our commitment
to innovation has led to signifi
-
cant innovative solutions that
strengthen safety and support the
green transition in our industry.
Svitzer’s innovation focus thrives within the
industry’s constraints, forcing us to be creative
within the limitations and boundaries set by our
customers. However, there are also cases where
we can push the boundaries. We encourage
teams to bring forward their ideas, fostering a
culture where we continuously test ideas and
concepts, while acknowledging that failure is an
integral part of innovation.
The Swiss Army Knife of Tugboats
One example is the TRAnsverse Tugboat,
Svitzer’s latest tugboat design. As container-
ships and tankers grow larger to reduce the
environmental impact, so does the need for our
fleet to have more steering force, historically
leading to larger engines.
To break this cycle, Svitzer has designed a
tugboat with a more efficient balance between
propellers, hull, and towpoint featuring a towing
staple that enables 180-degree free movement
of the tow line. This provides the vessel with
multidirectional manoeuvrability and superior
steering forces, with a much higher speed range
than the norm.
The new tugboat’s versatility and safety have
earned it the nickname “Swiss Army Knife of
Tugboats” among our crew – perfect for any
port or terminal.
During 2023 and with an expected delivery
in 2024, the Svitzer Group is building the first
three TRAnsverse tugboats. The first one
will operate in Amsterdam, The Netherlands,
followed by two tugboats that will operate in
Newcastle Port in Australia.
Istanbul
Turkey
19Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Today, we see an
increasing demand from
our customers for more
sustainable solutions.
Traditional methods are
not enough to meet
their expectations.
They require more steering
force from our vessels
while still reducing the
carbon footprint. This
necessitates a continuous
drive for innovation.
Thomas Bangslund
Head of Innovation
20Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Operational
Highlights
2023
In 2023, Svitzer achieved a series of significant business milestones,
reflecting the company’s commitment to growth, innovation, and
decarbonisation.
Performance
Fawley Refinery
In April, Svitzer secured a seven-year contract
for terminal towage services at Fawley Refinery
near Southampton in the UK. Effective July 1,
the contract includes line handling, along with
operating three tugboats, three launch boats,
and two mooring pontoons at one of the UK’s
largest oil refineries.
Utilising existing tugboats, launch assets,
and infrastructure previously used by Solent
Towage, Svitzer provided a reliable, efficient,
and cost- effective solution through synergies
with our harbour towage operations in the Port
of Southampton, reinforcing Svitzer’s leading
position in the UK towage market.
BHP, Port Hedland
In June, Svitzer signed a five-year contract for
servicing BHP’s operations in Port Hedland,
Western Australia. Port Hedland is the world’s
largest iron ore export port and the largest
bulk port measured by tonnage throughput.
Effective from 2024, the contract includes the
delivery of five new RAstar 2800 tugboats.
The new tugboats will operate on a five-
year term with a five-year extension option.
In addition to the delivery of tugs, Svitzer will
provide exclusive commercial representation
for BHP’s towage services in Port Hedland.
22Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Alexandropoulis LNG terminal
In July, Svitzer secured a 15-year terminal towage
contract for Gastrade’s flagship Alexandropoulis
INGS terminal, and Greece’s first offshore LNG
project.
Effective December 2023, this contract marks
Svitzer’s entry into Southern Europe and
Greece, providing towage services and support
for advanced LNG operations, including the
support of a Floating Storage Regasification
Unit (FSRU) and its pipeline system connected
Operational Highlights 2023
to the Greek national natural gas transmission
system. Svitzer’s more than 25 years of
experience working in the LNG industry will
be showcased through a customised solution,
including four new ASD tugboats, further
establishing our position as a leading towage
service partner to the industry.
Woodside Energy
In October, Svitzer’s contract with Woodside
Energy Ltd. commenced operations, providing
towage and pilot transfer services at Woodside’s
flagship LNG export operations in the Port of
Dampier, Western Australia.
The contract, awarded in January 2022, has
an initial 12-year term with options to renew for
three and further two years. Svitzer operates five
modern 80-tonne bollard pull tugboats to meet
critical towage needs for export LNG cargoes.
Additionally, Svitzer has delivered a new pilot
transfer vessel to support Woodside and its joint
venture operations.
The Woodside contract prioritises substantial
emission reductions and local industry support,
including the commissioning of a new pilot
transfer vessel and tailored training packages
for local people.
Fawley
Refinery:
Alexandropoulis
LNG terminal
BHP
Port Hedland
7-year Contract
5-year Contract
15-year Contract
2023 Terminal Towage Wins
23Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Financial Performance
2023
Performance
Svitzer continued to grow with new contracts
secured in Europe, with one new contract
commencing in the UK in July and entering
into a new country (Greece) through winning a
Terminal Towage contract which commenced
in December. In AMEA, new operations in
Oman and the Philippines were commenced.
Americas was positively impacted by Brazil
entering a new port. Australia also commenced
a new contract in Dampier in October.
The Group delivered an EBITDA of DKK 1,690m (DKK 1,623m),
resulting from higher revenue across the Group.
Revenue increased by DKK 310m to DKK
5,786m (DKK 5,476m) and adjusted for foreign
exchange impact, the increase was 9.5% or DKK
522m. Revenue for Harbour Towage increased
by DKK 262m driven by higher volumes of 3%,
tariff increases in Europe, Australia and Americas
and a new port entry in Brazil. Terminal Towage
revenue increased by DKK 23m primarily
impacted by tariff increases across regions,
new contracts commenced in Europe, Australia
volumes, partly offset by increasing fuel and
operating costs driven by higher activity.
The increases in Svitzer Americas and Australia
were partly offset by a decrease in Svitzer
Europe impacted by higher costs from the
inflationary increases on crew costs and higher
fuel costs from higher activity and replacing
MGO with HVO and Svitzer AMEA impacted
by the closing of operations in Russia. EBITDA
margin for the Group was at 29.2% which was
a decrease compared to 2022 at 29.6%.
EBIT increased to DKK 1,007m (DKK 820m)
primarily driven by 2022 being impacted by an
impairment related to the closing of operations
in Russia, an increase in EBITDA, which was
partly offset by lower results from joint ventures
and associates.
and AMEA partly offset by the loss of revenue
from the closing of operations in Russia.
EBITDA increased to DKK 1,690m
(DKK 1,623 m)
Svitzer continued to be challenged with the
macroeconomic development where inflationary
increases on costs were seen across the regions
impacting operating costs. However, with
timely tariff adjustments in Harbour Towage
and escalations in accordance with the Terminal
Towage contracts Svitzer managed to mitigate
impact on the financial result.
In Svitzer Americas, the increase was primarily
driven by increased revenue from a new port
entry in Brazil and tariff increases offset by higher
fuel costs driven by higher activity, higher crew
related costs and maintenance and repair costs
for vessels. In Svitzer Australia, the increase was
primarily driven by tariff increases and increased
Svitzer Australia
Svitzer Europe
Svitzer Americas
Svitzer AMEA
Unallocated/eliminations
Svitzer Group
Region (DKKm)
2023
-648
-505
-192
-120
-
-1,465
2022
-287
-224
-223
-399
-20
-1,153
-361
-281
31
279
20
-312
%
126%
125%
-14%
-70%
-100%
-27%
2023
637
488
298
311
-45
1,690
2022
570
505
240
318
-11
1,623
67
-17
58
-7
-34
66
%
12%
-3%
24%
-2%
309%
4%
2023
2,004
1,994
907
888
-7
5,786
2022
1,914
1,874
788
896
3
5,476
90
120
119
-8
-10
310
%
5%
6%
15%
-1%
-333%
6%
Revenue EBITDA CAPEX
24Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
9,778
Total Invested
Capital
9,845
Total Invested
Capital
Financial Performance 2023
Financial items, net increased to net income
of DKK 39m (net loss of DKK 21m) positively
impacted by the higher interest income on loans
and receivables, lower net foreign exchange
losses and 2022 was negatively impacted by
the net impact from write-down of a financial
receivable related to divested activities.
Tax expense increased to DKK 286m
(DKK 149m) impacted by improved financial
performance and net movements related tax
exposures for ongoing tax matters in multiple
jurisdictions.
Net profit of DKK 760m (649m) primarily
driven by an improved EBIT partly offset by
higher tax expense.
ROIC increased to 7.6% (6.7%) impacted by
increased net operating profit after tax (NOPAT)
and by increased investments in the fleet, dry-
docking and assets under construction and net
movements related to tax exposures for ongoing
tax matters in multiple jurisdictions.
Cash flow from operating activities was
DKK 1,416m (DKK 1,291m). The increase was
impacted by improved EBITDA and a positive
change in net working capital in comparison
to prior year. The change in working capital
was primarily driven by an increase in trade
receivables from higher revenue partly offset by
increased trade and other payables resulting
from higher costs and decreased fuel inventory
due to timing of fuel stock on vessels.
Cash conversion for the year was 84% which
was higher than prior year at 80% impacted by a
less unfavourable change in working capital.
Gross capital expenditure (CAPEX) was
DKK 1,465m (DKK 1,153m) mainly driven by
investments in growth projects of DKK 678m
(DKK 476m), fleet renewals of DKK 286m
(DKK 223m), drydocking of DKK 526m (DKK
399m) and other investment or timing of pay-
ment of negative DKK 25m (DKK 55m). The
investments in growth projects were primarily
in Terminal Towage DKK 551m (DKK 308m)
whereas Harbour Towage growth was DKK 127m
(DKK 168m).
Free cash flow reduced to DKK 223m (DKK
232m) impacted by increased CAPEX invest-
ments partly offset by higher sales proceeds
from sale of property, plant and equipment
of DKK 207m (DKK 73m), higher cash flow
from operating activities and higher dividends
received from joint ventures and associated
companies DKK 177m (DKK 131m).
Invested capital: Total assets for the year
amounted to DKK 14,378m (DKK 14,442m).
The decrease was primarily driven by a decrease
in current assets and a negative foreign exchange
rate impact of DKK 211m offset by an increase
in non-current assets related to assets under
construction, deliveries of new vessels and
dry-dockings undertaken. The invested capital
remained stable at DKK 9,778m (DKK 9,845m).
80% (79%) or DKK 7,828m (DKK 7,767m) of
the invested capital comprises of vessels, dry-
docking assets, and assets under construction.
Land, buildings, intangible assets, and other
leased assets remained on par compromising
of 7% (8%) or DKK 729m (DKK 831m) of the
invested capital. Other assets and liabilities
amounted to DKK 1,222m (DKK 1,247m) or
12% (13%) of the invested capital, including
net working capital items which increased to
DKK 449m (DKK 366m) primarily driven by an
increase in trade receivables resulting from the
increased revenue, and increased trade and
other payables resulting from timing of costs.
Invested Capital (DKKm)
2023
Vessels & Dry
Dockings
75%
2022
Vessels & Dry
Dockings
74%
Working Capital
5%
Leased Assets
3%
Other Assets & Liabilities
8%
Intangible Assets
4%
Assets under
Construction
5%
Working Capital
4%
Leased Assets
3%
Other Assets & Liabilities
9%
Intangible Assets
5%
Assets under
Construction
5%
25Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Financial Performance 2023
Svitzer Australia
2023
Svitzer Australia comprises the operating seg-
ment of the Svitzer Group’s business on the
Australian continent and Papua New Guinea.
The main Harbour Towage ports in terms of
revenue are Adelaide, Brisbane, Fremantle,
Melbourne, Newcastle, Port Botany, and Port
Kembla, with key Terminal Towage contracts
supporting the Chevron operations in Gorgon
and Wheatstone and the Darwin INPEX
operation. In addition to this, Svitzer Australia
has joint ventures and associated companies
across the continent.
Overall Development
Strong financial performance in 2023 assisted
by higher Harbour Towage activity across most
Australian ports, including a significant uplift in
Melbourne as a result of a Harbour Master man-
date for additional towage support in response
to safety incidents. Public tariff increases from
1st April reflected the high inflationary pressure
which has progressively reduced to more
moderate levels by the end of the year.
Key Highlights
• Successful implementation of the new
contract with Woodside Energy Ltd. from
1st October.
• Awarded the fleet renewal tender for BHP
for five newbuild vessels to be chartered
to BHP in Port Hedland over an initial
period of five years commencing in first
half of 2024 with an option to extend for a
further 5 year period.
• The new National Towage Enterprise
Agreement for Svitzer Australia was
approved by the Fair Work Commission.
The new agreement came into effect
from 18 July 2023 and runs for a four-year
period until July 2027.
CAPEX
Significant Growth CAPEX in 2023 associated
with the purchase of five newbuild tugs for the
commencement of the new Woodside contract
in the Port of Dampier. The remaining CAPEX
was related to the regular drydocking invest-
ment and vessels for fleet renewal.
2023
2,004
637
-648
Revenue
EBITDA
CAPEX
AUSTRALIA — Financial Figures DKKm
2022
1,914
570
-287
90
67
-361
%
5%
12%
126%
Svitzer Europe
2023
Svitzer Europe comprises the operating
segment of the Svitzer Group’s business on
the European continent.
The main markets in terms of revenue are
the UK, Denmark, Sweden, the Netherlands,
and Germany.
Overall Development
Revenue increased driven by CPI related tariff
increases for Harbour Towage and higher
Terminal Towage revenue as a result of the
commencement of the Terminal Towage pro-
ject at Fawley. The tug job volume in 2023 was
negatively impacted by increased sanctions
in Russia and higher energy inventories in the
region impacting energy related vessel calls and
tug jobs especially in Continental Europe.
Key Highlights
• The commencement of a seven-
year contract to provide Terminal
Towage services at Fawley Refinery, at
Southampton in the UK in Q3 2023.
• The commencement of a 15-year
agreement to service Gastrade’s
Alexandroupolis Independent Natural Gas
System (Alexandroupolis INGS) LNG
terminal, the first offshore LNG project in
Greece from December 2023.
CAPEX
Growth CAPEX was impacted by the project
in Greece with the purchase of four vessels.
The remaining CAPEX was related to the
regular drydocking investment.
2023
1,994
488
-505
Revenue
EBITDA
CAPEX
EUROPE — Financial Figures DKKm
2022
1,874
505
-224
120
-17
-281
%
6%
-3%
125%
26Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Svitzer AMEA
2023
Svitzer AMEA comprises the operating segment
of the Svitzer Group’s within Asia, the Middle
East, and Africa.
The main markets in terms of revenue are
Angola, Bahrain, Egypt, Morocco, Bangladesh,
and Oman. In addition to this, Svitzer AMEA
has joint ventures and associated companies in
China, the Philippines, and Qatar.
Overall Development
The contractual increases in rates were
secured across the Terminal Towage portfolio.
Operations remained stable in all countries
with increased activity and volumes recorded
in Egypt and Morocco.
The operations in Russia were terminated end
of first quarter. The vessels from the operations
are being sold to a third party.
Financial Performance 2023
Key Highlights
• Commencement of new operations in the
Philippines and Oman, while extension
of contracts was secured in Bahrain, and
Egypt.
• Positive reception and interest in
sustainability solutions in the Middle East
countries and the green fuel on tugs has
been piloted in Oman.
CAPEX
Growth CAPEX for the year was related to the
upgrading of vessels for the new contract in
Oman. For Philippines a replacement vessel
was acquired. Remaining CAPEX relates to
the replacement of a pilot boat in Morocco and
regular drydocking investment.
2023
888
311
-120
Revenue
EBITDA
CAPEX
AMEA — Financial Figures DKKm
2022
896
318
-399
-8
-7
279
%
-1%
-2%
-70%
Svitzer Americas
2023
Svitzer Americas comprises the operating seg-
ment of the Svitzer Group’s business in the
Americas.
The main markets in terms of revenue are
Argentina, Bahamas, Brazil, Costa Rica,
Panama, and Peru. Further, Svitzer Americas
has joint ventures and associated companies
in Barbados, British Virgin Islands, Canada, the
Dominican Republic, Haiti, and St. Lucia.
Overall Development
Revenue increased due to high volumes par-
ticularly coming from grain export in Brazil and
revenue from special operations. The decline in
volumes from grain exports due to the severe
drought in Argentina and the high inflation
experienced in the country were mitigated by
tariff increases and reallocation of tugs to reduce
capacity and increase the utilisation.
Inflation remained a concern in the rest of the
region and higher costs were widely recovered
through contractual escalations, tariff increase,
and cost saving initiatives.
Key Highlights
• Further expanding the presence in Brazil
with the start of operations in Salvador.
• In June 2023 a special operation was
started in the South of Brazil to support
a container ship affected by fire erupting
in its engine room, requiring continuous
support of one tug through the end of the
year.
CAPEX
Growth CAPEX includes fleet expansion in
Brazil with a total of four newbuild tugs con-
tracted where two were delivered during 2023
and the other two with expected completion in
2024. Growth CAPEX was approximately 65%
of total CAPEX in the region. The remaining
CAPEX was related to the regular drydocking
investment.
2023
907
298
-192
Revenue
EBITDA
CAPEX
AMERICAS — Financial Figures DKKm
2022
788
240
-223
119
58
31
%
15%
24%
-14%
27Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Outlook for
2024
Performance
Sensitivities
Revenue expectation includes full year effects of
operations commenced during 2023 in the UK,
Greece, Brazil, the Philippines and Australia, as well
as new operations planned to commence during
2024 in Australia.
Given the multi-local nature of Svitzer’s business,
the consolidated financial results are impacted
by the development in the underlying currencies
of the business. The main foreign currencies for
Svitzer are Australian Dollar, US Dollar, British
Pound and Euro. These main currencies are
assumed to weaken or be flat towards the DKK.
Currency
USD
EUR
GBP
AUD
Sensitivity Analysis on Currency (EBITDA)
Average 2023A
Rates towards DKK
6.90
7.45
8.50
4.66
Average 2024
Rates towards DKK
6.73
7.44
8.43
4.55
+- 5% Change in 2024 FX Rate
Impact on 2024 EBITDA
+- DKK 30m
+- DKK 18m
+- DKK 8m
+- DKK 35m
Harbour Towage is driven by global shipping
activity along with tariff increases reflecting
local inflation.
Terminal Towage is driven by the number of
vessels on contract along with annual escala-
tions in the day rate to reflect cost inflation.
Combining the underlying activity growth in
the market with price adjustments and new
operation, the revenue is expected to grow by
3.5% to 5% in 2024, on a constant exchange
rates basis and 1.5% to 3% in estimated
average exchange rates basis.
3.5-5.0% growth on
constant exchange rates basis
Revenue
DKK 900-1,100m
Gross CAPEX
DKK 1,700-1,800m
EBITDA
*
Similar to previous years, Svitzer will continue
the efforts to mitigate the inflationary pressure
on all cost categories by driving efficiencies.
Based on this, combined with the assump-
tions made on revenue, the EBITDA margin is
expected to be in line with 2023 leading to
an expected EBITDA of DKK 1,700-1,800m,
excluding separation and listing cost related to
the demerger from A.P. Møller – Mærsk A/S
which is expected to amount to DKK 130m
Growth CAPEX is expected to be DKK
400-500m.
Fleet renewal, docking, and other CAPEX is
expected to be DKK 500-600m.
It is assumed that Svitzer continues to invest
in commercial and technology upgrades of its
fleet and operations and that the fleet does
not experience abnormal levels of equipment
breakdowns.
* See forward looking statements – risks and uncertainties on page 55.
28Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Dedication Secured Woodside
Terminal Towage Contract
Case Story
Set along the Pilbara coast in
Western Australia amidst the dry,
red landscapes, lies the industrial
Port of Dampier.
For over 65 years, Woodside, a global energy
company, has led the production and export of
LNG from this port, supplying natural gas both
domestically and internationally, while also play-
ing a role in decarbonisation efforts. In line with
this commitment, as well as their commitment
to excellence and safety, Woodside sought a
new long-term Terminal Towage partner, inviting
proposals from premier towage companies
across Australia and worldwide.
Combining Global and Local Expertise
Svitzer’s tender proposal was based on listening
attentively to Woodside’s perspective, coupled
with a fusion of our global maritime expertise,
The contract was awarded in January 2022 and has an initial term of 12 years from January 2022 with two options to renew,
one for 3 years and one for 2 years. The contract entered its operation in October 2023
scale, and profound local market insights.
Our proposal was a fleet design emphasising
operational efficiency, decarbonisation solu-
tions, and an operational model aligned with
Woodside’s stringent safety, environmental,
and community standards.
Overcoming Challenges with Commitment
Executing the project amidst ongoing COVID-19
impacts posed challenges, particularly during
implementation. Nonetheless, our geographically
dispersed team rallied tirelessly to ensure com-
pliance with all quality standards, overcoming
logistical and workforce hurdles.
Woodside’s unwavering support, transparent
communication, and collaborative spirit signifi-
cantly contributed to our success.
Port of Dampier
Australia
29Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Building a Trust-Based Partnership
This contract represents a key milestone. The
commencement of operations shows how align-
ing with customer needs, leveraging our global
and local expertise, and embracing innovative
approaches can foster enduring and mutually
beneficial partnerships. Yet, for Svitzer, this mile-
stone marks just the beginning of the journey
– transitioning from contractual obligations to
ongoing value creation for Woodside.
For Svitzer, the Woodside operation represents
more than just a contractual agreement; it sym-
bolises how innovation, adaptability, and shared
values can cultivate enduring partnership and
generate shared value.
Their request for
proposal stood out.
They delegated the
responsibility of solution-
finding to us, fostering
immense creativity
within our team. For
Woodside, towage was
not merely a service but
a vital component of their
operations.
They sought innovative
solutions ensuring
safety, reliability,
operational efficiency
and decarbonisation,
integrating cutting-edge
technologies.
Videlina Georgieva
Managing Director Svitzer Australia
30Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Sustainability
32Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Sustainability
33Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Sustainability
34Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Lagging
LTIF
TRCF
Leading
Frontline learning teams for High Risk Events
Emergency Drills Completion
Action Closure (all actions)
Leadership Safety Visits
2022
1.7
5.2
84%
86.1%
93.8%
93.8%
KPIs
0.7
5.4
100%
93.2%
92.7%
90.9%
2021
1.3
6.0
80%
95.3%
91.4%
94.4%
2023
Sustainability
Our leading indicators include compliance
with Global Offshore Vessel Management
and Self-Assessment (OVMSA) standards
and proactive HSS management practices,
such as emergency drills, leadership vessel
visits, learning from high-potential events and
action closure. The leading indicators provide
a proactive approach to risk management and
resilience, which ensure continuous focus on
mitigating serious risk rather than solely reacting
to incidents.
By prioritising incident reporting and data
quality while leveraging leading indicators for
risk improvement decision-making, Svitzer
remains committed to safety excellence and
operational resilience.
35Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Sustainability
50%
Carbon Intensity
Reduction
100%
Carbon
Neutral
The strategy rests on two
ambitious targets
2023 2030 2040 Neutral
Operations
9
Carbon intensity, measured in gCO
2
e /kWh, is determined for each vessel based on the total fuel consumption and
running hours for all engines installed on board. Total kW power installed is the sum of all engines Maximum Continuous
Rating values for the vessels. Percentage improvement is measured by comparing the fleet average value for the current
year to the baseline value for 2020. GHG emissions are calculated using conversion factors from DEFRA (updated 2022).
36Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Sustainability
37Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Sustainability
38Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Partnering with the Industry to Create
Sustainable Growth
Case Story
With vast insight into global port
operations, Svitzer actively colla-
borates with port operators, port
authorities, shipping companies,
and stakeholders to develop inno-
vative business models, enabling
CO
2
reductions while driving
value for our port customers.
We do this by leveraging our global scale, data
and expertise, and working with partners to
apply our leading decarbonisation solutions in
emissions monitoring, behavioural tracking, new
towing technologies, and the use of biofuels.
Throughout 2023, we engaged in strategic
dialogues with several ports and other actors in
the wider global shipping industry, focusing on
forming partnerships for green ports to reduce
carbon emissions through the adoption of new
technologies and low or zero carbon alternatives
for all involved in the port operations.
In April 2023, this resulted in the signing of a
memorandum of understanding (MoU) with
the Port of Melbourne, alongside industry
partners Maersk, ANL (a subsidiary of CMA-
CGM), Stolthaven Terminals, HAMR Energy,
and ABEL Energy. The collaboration will explore
the commercial feasibility of establishing a
green methanol bunkering hub at the Port of
Melbourne, including the various elements of
establishing the hub and potential challenges.
The Port of Melbourne is Australasia’s largest
maritime hub for containerised, automotive,
and general cargo. Svitzer has served the port
for more than 15 years.
Port of Melbourne
Australia
It is through a partnership
approach that we will
best meet the future
decarbonisation
challenges facing the
wider shipping industry.
Svitzer is in a unique
position to contribute
to the decarbonisation
based on our experience
and decarbonisation
solutions developed from
serving port operations
around the world.
James Robinson-Burge
Head of Performance & Products,
Svitzer Operations
39Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Governance
41 Corporate Governance
45 Shareholders, Capital Structure and Allocation
46 Board of Directors
47 Executive Leadership
48 Management Remuneration
50 Risk Management
40Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Corporate
Governance
Good corporate governance is essential to Svitzer. As a wholly
owned subsidiary of A.P. Møller – Mærsk A/S, our governance
structure today is an integrated part of A.P. Møller – Mærsk A/S’
governance structure which promotes the objectives of:
• Early identification of opportunities,
challenges, and risks.
• Efficient processes for informed
decision-making.
• Continuous learning.
• Proactive planning and agile execution.
• Sound controls, checks, and balances,
and compliance.
• Clear allocation of authorities and
responsibilities.
• Safe operations.
• A strong, sustainable approach to ESG.
The core values of A.P. Møller – Mærsk A/S
are engrained in Svitzer’s way of conducting
its business and will continue to be an integral
part of the corporate governance of the new
group after the A.P. Møller – Mærsk A/S
demerger of its towage and marine services
activities. These core values have remained
guiding principles for leaders and employees
across our company for almost half a century.
Our 5 core values were far ahead of their time
when they were created by the founders of
A.P. Moller – Maersk. Today they remain our
guiding principles, calling upon us to remain
conscientious as we strive to do better.
Governance
Our 5 Core Values
Constant Care
Take care of today, actively
prepare for tomorrow
Humbleness
Listen, learn, share, and give
space to others
Uprightness
Our word is our bond
Our Employees
The right environment for the
right people
Our Name
The sum of our values:
Passionately striving together
41Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Governance
Structure
Svitzer A/S has a two-tier management struc-
ture consisting of the Board of Directors and the
Executive Management. The two bodies are
separate and have no overlapping members.
Board of Directors is responsible for the over-
all management, strategic direction, and the
supervision of the Executive Management who
carries out the day-to-day management of the
company together with the wider Executive
Leadership Team.
Following the demerger and admission to trad-
ing and official listing in 2024 and in addition
to a similar two-tier governance structure, it
is expected that the Board of Directors will
establish a corporate governance set-up for
ListCo as reflected to the right.
The supreme governing body of
Svitzer A/S is the General Meeting,
at which the share holders exercise
their rights in matters such as the
election of board members and
auditors of the company, approval
of the Group Annual Report
and adoption of the Articles of
Association.
Shareholder(s)
Chief Commercial Officer
Managing Director Europe
Chief Information Officer
Chief Operating Officer
Managing Director AMEAManaging Director Americas
Chief People Officer
General Counsel
Managing Director Australia
ListCo Corporate Governance Structure
Board of Directors
Remuneration Committee
Audit & Risk Committee Nomination Committee
Global Leadership Team
Current Structure
Expected structure in 2024
Executive Management
CEO & CFO
Corporate governance principles and
recommendations
Once the demerger has been completed,
the Board of Directors of the ListCo
(the ‘ListCo Board of Directors’) will adopt
a set of corporate governance principles
that will constitute ListCo’s approach to the
‘ Recommendations for Corporate Govern-
ance’ implemented by Nasdaq Copenhagen
in the Rules for issuers of shares and as set
out in section 107b of the Danish Financial
Statements Act. In this connection the ListCo
Board of Directors will prepare a statement
on corporate governance, which will be
effective from the date of admission to trading
and official listing on Nasdaq Copenhagen.
This statement will include information about
ListCo’s corporate govern ance practices and
compliance with the ‘ Recommendations
for Corporate Governance’. Once adopted,
ListCo’s corporate governance statement will
be available on the company’s website.
Governance
42Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Board of Directors Executive Management
The ListCo Board of Directors is expected
to comprise of Chair Morten H. Engelstoft,
Vice Chair Robert M. Uggla, Christine Brennet
( Morris) and Peter Wikström which corresponds
to the current Board of Directors of Svitzer A/S.
It is the intention to propose one or two addi-
tional, independent members at Svitzer’s annual
general meeting in 2025. Further information on
the members of the Svitzer A/S and expected
ListCo Board of Directors, including a presenta-
tion of the biographies can be found on page 46.
The ListCo Board of Directors will be respon-
sible for the overall and strategic management
of ListCo and ensuring that ListCo is properly
organised. Further, the ListCo Board of Direc-
tors will, among other things, supervise ListCo’s
operations, financial performance, and forecasts
on an on-going basis, ensure that relevant and
proper budget approval procedures are in place,
carry out an annual risk assessment and ensure
that ListCo’s financial resources are adequate
at all times. The ListCo Board of Directors must
annually perform an evaluation of the effective-
ness, performance, achievements and compe-
tencies of the ListCo Board of Directors.
The Executive Management of Svitzer A/S
is appointed by the Board of Directors and
consists of the Chief Executive Officer (CEO)
and the Chief Financial Officer (CFO) who will
also serve as Executive Management team in
ListCo.Further information on the members
of theExecutive Management, including a
presentation of the biographies can be found
on page 47.
The ListCo Executive Management is responsi-
ble for the day-to-day management of ListCo in
accordance with the direction set by the ListCo
Board of Directors, which includes:
Outline of responsibilities:
• Establish, review, and continuously
update general business and
management principles of the company
• Decide on strategy and risk policies for
the company
• Supervise the performance of the
company, the Executive Management,
and secure that the company has the
proper organisational setup in place
• Review the company’s financial position,
capital resources, and reporting on
financials and performance
• Appoint members of Executive
Management
It is expected that the Board of Directors of
ListCo will convene at least four times a year.
Outline of responsibilities:
• The development of the business and
submission of strategy proposals to the
Board of Directors for review and decision
• Strategy implementation and executing
on investments and divestments
• Developing the organisational structure
of the company including the allocation
of resources
• Driving and monitoring the performance
of the company
• Preparing internal and external financial
reporting
• Monitoring and planning capital resources
and liquidity
• Establishing and implementing internal
policies and procedures for relevant
topics such as accounting, finance, IT,
sustainability, etc.
• Overseeing Enterprise Risk Management
• Reporting to the Board of Directors.
Governance
43Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Once established, the Audit and Risk Committee is expected
to consist of Christine Brennet (Morris) as Chair and Morten H.
Engelstoft and Peter Wikström as members.
The overall purpose of the Audit and Risk Committee will be to review ListCo’s
accounting and auditing matters that require, by decision of the ListCo Board
of Directors or the Audit and Risk Committee, a more thorough evaluation, and
shall assess the internal controls and risk management systems of the ListCo
Group. Furthermore, the Audit and Risk Committee is tasked with reviewing
material on related parties’ transactions for ListCo.
Once established, the Remuneration Committee is expected to consist
of Morten H. Engelstoft as Chair and Robert M. Uggla as member.
The overall purpose of the Remuneration Committee will be to ensure that
ListCo maintains a remuneration policy for members of the ListCo Board of
Directors and ListCo Executive Management and practices that supports
the overall strategy of ListCo and long term value creation for shareholders.
The main tasks of the Remuneration Committee shall be to outline the
framework and overall principles and make recommendations for the
remuneration of the members of the ListCo Board of Directors, the ListCo
Board Committees and the ListCo Executive Management as well as ensure
compliance with the remuneration policy applicable for ListCo. Additionally,
the Remuneration Committee will be consulted on the framework and
overall principles for the remuneration for the executive leadership team of
ListCo based on proposal from the CEO of ListCo and be informed of the
overall incentive framework applicable for employees in general.Lastly, the
Remuneration Committee will assist the ListCo Board of Directors of ListCo
with the preparation of ListCo’s remuneration report.
Once established, the Nomination Committee is expected to consist
of Robert M. Uggla as Chair and Morten H. Engelstoft as member.
The overall purpose of the Nomination Committee will be to assist the ListCo
Board of Directors with ensuring that appropriate plans and processes are in
place for the recruitment and nomination of candidates to the ListCo Board of
Directors, ListCo Executive Management, and the ListCo Board Committees.
The Nomination Committee will annually evaluate the composition of the
ListCo Board of Directors and ListCo Executive Management and make
recommendations for nomination or appointment of members of the ListCo
Board of Directors, the ListCo Executive Management, and the ListCo Board
Committees.
Expected Board Committee
structure for ListCo
Following completion of the demerger and admission to trading and official listing of ListCo,
the Board of Directors of ListCo is expected to establish an Audit and Risk Committee, a
Remuneration Committee, and a Nomination Committee in accordance with applicable
laws and regulations and the Danish Recommendations on Corporate Governance.
Audit and Risk
Committee
Remuneration
Committee
Nomination
Committee
Governance
The Audit & Risk Committee is expected to convene
at least four times per year.
The Remuneration Committee is expected to
convene at least twice per year.
The Nomination Committee is expected to convene
at least once per year.
44Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Shareholders,
Capital
Structure and
Allocation
Governance
Share Capital
Svitzer has one class of shares. The share capital
at the end of 2023 was DKK 420,952,500 com-
prising 1,683,810 shares, each with a nominal
value of DKK 250. There were no changes to the
share capital during 2023.
Distribution to Shareholders in 2023
In the financial year ended 31 December 2023,
Svitzer declared DKK 6.2bn (corresponding to
DKK 3,682 (rounded) per share of nominal value
DKK 250) in interim dividends to its shareholders.
Svitzer did not pay out dividends in respect of the
financial year ended 31 December 2022.
Shareholders
At the end of 2023, Svitzer had one registered
shareholder who owned 100% of the share
capital. A.P. Møller – Mærsk A/S owned
100% (2022: 100%) of the total registered
share capital.
Capital Structure
At the end of 2023, Svitzer’s net interest- bearing
debt was DKK 3,745m (a net cash position
of DKK 2,576m at year-end 2022). This was
impacted by the paid dividend of DKK 6,200m
by obtaining a loan from its shareholder of
DKK 6,200m.
45Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Board of Directors
Governance
Morten H. Engelstoft
Chair
Considered independent (ListCo)
Born: 1967
Nationality: Danish
Year of first appointment: 2024
Expiration of term (expected for ListCo): 2025
Non-executive board member
Other management duties, etc.:
• Board position in Through Transport Mutual
Insurance Association Limited (as Chair) and one
of its controlled subsidiaries
• Wärtsilä Corporation
13
(board member)
• Board position in Maersk Supply Service Holding
ApS and one of its controlled subsidiaries
Education:
• Executive MBA from International Institute for
Management Development (IMD)
• A.P. Møller’s Shipping Education
Qualifications:
Experience within the transport, maritime and logistics
sector. Previously served as CEO of APM Terminals B.V.
and Executive Vice President of A.P. Møller – Mærsk A/S.
Robert M. Uggla
Vice Chair
Not considered independent (ListCo)
Born: 1978
Nationality: Swedish
Year of first appointment: 2024
Expiration of term (expected for ListCo): 2025
CEO of A.P. Møller Holding A/S
Other management duties, etc.:
• A.P. Møller – Mærsk A/S
13
(Chair)
• A.P. Møller Capital P/S (Chair)
• Maersk Tankers A/S (Chair)
• Agata ApS (CEO)
• Estemco XII ApS (CEO)
• IMD (Director of the foundation board)
• International Business Leaders’ Advisory Council,
IBLAC (member)
• Board positions in a number of controlled
subsidiaries of A.P. Møller Holding A/S
Education:
• MSc in Business Administration from Stockholm
School of Economics, including studies at Università
Commerciale Luigi Bocconi
• Executive education at The Wharton School, Stanford
Business School, Harvard Business School, and IMD
Qualifications:
Leadership experience within investments, transportation
and infrastructure-related activities.
Christine Brennet (Morris)
Considered independent (ListCo)
Born: 1966
Nationality: Dual Belgian and American citizenship
Year of first appointment: 2024
Expiration of term (expected for ListCo): 2025
Non-executive board member
Other management duties, etc.:
• DOF Group ASA
13
(board member)
Education:
• MBA from Stanford Graduate School of Business
• MSc in Actuarial Sciences from Université
Catholique de Louvain
Qualifications:
International experience as CFO and broad financial
experience in capital markets, financial and strategic
planning, strategy, risk management, accounting and
financial operations and systems.
Peter Wikström
Not considered independent (ListCo)
Born: 1975
Nationality: Swedish
Year of first appointment: 2023
Expiration of term (expected for ListCo): 2025
Head of M&A, Head of Strategic Brands and Vice
President in A.P. Møller – Mærsk A/S
13
Other management duties, etc.:
• C2X A/S (board member)
• Maersk Container Industry A/S (Chair)
• Stillstrom A/S (Chair)
• Maersk Training A/S (Chair)
Education:
• MSc in International Business Administration
from the School of Economics and Management at
Lund University
Qualifications:
Experience from investments in the transport, maritime
and logistics sector and experience from the finance
industry with a focus on corporate finance and M&A.
13
Listed company
46Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Executive
Leadership
Team
Governance
Svitzer’s Executive Leadership Team includes leaders
with a long tenure within the company and in the maritime
industry, and leaders with valuable experience from outside
the company, bringing increased diversity of thought, age,
gender, and nationality.
The Executive Leadership Team
includes 11 roles and areas of
responsibility.
The Executive Leadership Team jointly owns the
execution of Svitzer’s strategy and is composed
in a way which provides strong alignment across
Svitzer’s global organisation as well as clear
ownership and accountability of the company’s
strategy.
Knud Lind Winkler
Chief Financial Officer since October 2013.
Knud Lind Winkler has also been the CEO of Svitzer
Salvage Holding A/S since April 2015 and CEO of
Svitzer Caribbean A/S since October 2013.
Knud Link Winkler has previously been Chair of the
Board of Directors at Ardent Worldwide Ltd. and
Ardent Holdings Ltd.
Knud Lind Winkler holds a Master of Science in Busi-
ness Administration and Auditing from the University
of Aarhus, School of Business and Social Sciences
and a Bachelor of Science in Business Administration
and Computer Science from the University of Aarhus,
School of Business and Social Sciences.
Kasper Friis Nilaus
Chief Executive Officer since June 2020.
Prior to his appointment as CEO, Kasper Friis Nilaus was
Managing Director of Svitzer Europe from 2017-2020.
Kasper Friis Nilaus is currently a member of the Board
of Directors of Höegh Autoliners ASA where he is
also a member of the Sustainability, Governance, and
Compensation Committee.
Kasper Friis Nilaus has previously been a member of the
board of directors of Höegh Autoliners Management AS.
Kasper Friis Nilaus holds a Master of Laws from the
University of Copenhagen and an MBA from Nottingham
University Business School and has completed different
executive leadership programs at IMD Business School,
Harvard University and Stanford University.
Executive Management
The Executive Leadership Team
responsibilities
Kasper Friis Nilaus, Chief Executive Officer
Knud Lind Winkler, Chief Financial Officer
Kasper Karlsen, Chief Operating Officer
Mattias Hellström, Chief Commercial Officer
Emilie Margrethe Sybille Bruun, Chief People Officer
Pernille Krogh-Meyer, Chief Information Officer
Arjen van Dijk, Managing Director, Americas
Lise Demant, Managing Director, Europe
Videlina Georgieva, Managing Director, Australia
Deniz Kirdar True, Managing Director AMEA
47Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Management
Remuneration
Governance
The Policy supports the business needs by ena-
bling an appropriate total remuneration package
that has a clear link to business strategy and
aligns with shareholder interests.
The objectives of the Policy are to:
• Ensure appropriate total remuneration:
The remuneration design and decisions
are guided by market practice, reflected
in the remuneration components offered
and the total remuneration value provided.
• Link to business strategy: The Policy
supports the business plan and the
need for executive leaders to focus on
delivering an ongoing progress to achieve
the company’s strategic goals, reflected
in a combination of short- and long-term
incentive components.
• Align with shareholder interest: The
Policy is designed to support the delivery
of strong financial and operational
results over time, which ultimately grow
shareholder value.
The remuneration for the Executive Manage-
ment consists of a fixed base salary, which is
inclusive of company pension contribution and
car, short-term incentive as well as long-term
incentive components. The remuneration
structure is intended to drive a ‘reward for
The following sections set out key elements of the total remuneration
awarded to the Executive Management of Svitzer A/S for 2023 as
per the A. P. Møller – Mærsk Remuneration Policy (‘The Policy’),
applicable for Svitzer for the financial year 2023.
2023
5
3
2
10
Fixed Based Salary
Short-term Cash Incentive
Long-term Share Based Incentives
Total Remuneration to the Executive Management
Fees and Remuneration to the Executive Management (In DKK m)
2022
5
3
1
9
2021
5
3
2
10
performance’ culture by aligning individual
reward to company performance and share-
holder value creation.
The individual remuneration level is set and
reviewed based on peer companies of similar
size and complexity to ensure they remain
comparable and fit for the business.
48Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Risk
Management
Governance
Enterprise Risk Management
As a global company, we face various risks inher-
ent to the marine services industry we are a part
of and the markets and regions we operate in.
The aim of Enterprise Risk Management (ERM)
is to manage these risks, support our operational
and strategic objectives, protect and create
shareholder value, ensure risk awareness, and
inform decisions to ensure an appropriate bal-
ance between risk and reward.
Risk Management is an integral part of our
decision-making processes and is supported
by our corporate ERM framework. The ERM
Risk Management contributes to sustainable value creation
andachieving our strategic objectives. It supports our short- and
medium-term targets and helps Svitzer establish the necessary
foundations for informed business decisions. This includes securing
an appropriate balance between risksand opportunities.
framework provides a holistic and transparent
view of our strategic and operational risk posi-
tions, with the aim of continuously assessing
and, when necessary, adjusting our overall risk
exposure.
Key Risks
Based on their potential impact and probability,
the key risks identified for Svitzer are described
on the following pages. This includes mitigating
actions taken and planned.
50Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Description
Commercially, Svitzer is exposed
to risks in relation to increased
competitive pressure, which is most
notable in relation to competitive
entries in our single operator ports.
We are also exposed to changes
in commodity prices, negatively
impacting growth and existing
business.
— Similarly, a risk ofcommoditisa-
tion of towage, is a factor we have
to prepare for.
Mitigation
To further strengthen customer
loyalty, Svitzer is strongly focused
on cost leadership, high service
reliability, the development of deep
customer relationships, and having
high contract coverage.
— We purposely diversify our busi-
ness development efforts and work
proactively, leveraging our strategic
differentiators.
— Operational flexibility through
crewing models and fleet increases
the variability of our cost base, while
maximising our differentiators to set
us apart from competition.
Key
Risks
Geopolitical environment
and macroeconomy
As a global organisation, Svitzer
experiences the effects of increasing
geopolitical tensions as well as actual
armed conflicts.
— Macroeconomic changes, ex-
pressed in high inflation rates, volatility
in transaction currencies, and higher
cost of capital, may impactour ability
to deliver our services cost-efficiently.
All new market entries are approved
by Svitzer’s Executive Management
team. Exposure to any particular risk
is carefully considered and mitigated
in the wider context of the individual
market, its industry dynamics, and
our customer exposure. This was
most recently done when Svitzer
closed down its operations in Russia,
as a consequence ofthe Russian
invasion of Ukraine.
Description
Mitigation
51Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Key
Risks
Risk
Overview
Compliance
Geopolitical
Commercial
Decarbonisation
Likelihood
Impact
Cyber Risk
Safety
People and Culture
Cyber Risk
Description
We are dependent on our commercial,
technical, and operational IT infrastruc-
ture. A cyber security event, whether
caused by malicious activities, unin-
tentional human error, or system failure,
can have significant impact on our
operations and on our customers’
operations. Theft of data could poten-
tially affect our ability to meet contrac-
tual obligations, impacting our opera-
tions and resulting in a loss of business
opportunities, fines from authorities,
and reputational damage.
Mitigation
Continuously work to improve
Svitzer’s cyber security posture by
working structured with cyber risks
both from an external and internal
view and mitigating the critical risks
with concrete actions. Furthermore,
as the biggest threat vector contin-
ues to be via our employees, we are
promoting awareness initiatives for
all employees to mitigate this.
52Svitzer Group Annual Report 2023Executive Summary Towage and Marine Services Performance Sustainability Governance Financial Statements
Consolidated
Financial Statements
55 Consolidated income statement
55 Consolidated statement of comprehensive income
56 Consolidated balance sheet
57 Consolidated cash flow statement
58 Consolidated statement of changes in equity
60 Notes to the consolidated financial statements
105 Company Overview
106 Management’s Statement
107 Independent Auditor’s Report
109 Definition of Terms
Svitzer Group Annual Report 2023 54Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Consolidated income statement Consolidated statement of comprehensive income
Note (DKK m) 2023 2022 2021
2.1 Revenue 5,786 5,476 4,653
2.2 Operating costs -4,095 -3,849 -3,249
Other income 26 23 11
Other costs -27 -27 -32
2.1
Profit before depreciation, amortisation and impairment
losses, etc. (EBITDA) 1,690 1,623 1,383
2.3, 3.1, 3.2, 3.3 Depreciation, amortisation and impairment losses, net -829 -957 -774
2.4 Gain on sale of non-current assets, etc., net 18 1 15
3.6 Share of profit in joint ventures and associated companies 128 153 138
2.1 Profit/loss before financial items (EBIT) 1,007 820 762
4.3 Financial income 198 139 110
4.3 Financial expenses -159 -160 -182
Profit before tax 1,046 799 690
5.1 Tax -286 -149 -118
Profit for the period 760 649 573
Of which:
Non-controlling interests -55 -51 -36
Svitzer A/S' share 705 598 537
Earnings per share, DKK 419 355 318
Note (DKK m) 2023 2022 2021
Profit for the year 760 649 573
Translation from functional currency to presentation currency:
Translation impact arising during the year -204 97 560
Reclassified to income statement - - -1
Total items that have been or may be reclassified
subsequently to the income statement -204 97 559
4.2 Actuarial gains/losses on defined benefit plans -8 2 -409
5.1 Tax on other comprehensive income 2 -1 76
Total items that will not be reclassified to the income
statement -6 1 -333
Other comprehensive income, net of tax -210 98 226
Total comprehensive income for the year 550 747 799
Of which:
Non-controlling interests -51 -61 -46
Svitzer A/S' share 499 686 753
Svitzer Group Annual Report 2023 55Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Consolidated balance sheet
Note (DKK m)
31 Dec
2023
31 Dec
2022
31 Dec
2021
1 Jan
2021
3.1 Intangible assets 399 444 435 427
3.2 Property, plant and equipment 8,290 7,802 7,446 6,967
3.3 Right-of-use-assets 343 267 300 318
3.6
Investments in joint ventures and associated
companies 772 865 865 795
4.2 Pensions, net assets 7 11 13 391
Loans receivable 58 74 49 82
Other receivables 14 16 20 52
Financial non-current assets, etc. 851 966 947 1,320
5.1 Deferred tax 338 339 300 195
Total non-current assets 10,221 9,818 9,428 9,227
Inventories 101 94 59 34
4.4, 2.1 Trade receivables 876 713 608 524
Tax receivables 61 58 33 51
3.4 Loan receivable 2,601 3,188 2,870 1,764
Other receivables 157 89 123 51
Prepayments 31 40 29 28
Other current assets 3,726 4,088 3,663 2,418
Cash and bank balances 318 427 436 410
Assets held for sale 12 15 29 30
Total current assets 4,157 4,624 4,187 2,892
Total assets 14,378 14,442 13,615 12,119
Note (DKK m)
31 Dec
2023
31 Dec
2022
31 Dec
2021
1 Jan
2021
Share capital 421 421 421 421
Reserves 5,802 11,506 10,813 10,120
Equity attributable to Svitzer A/S 6,223 11,927 11,234 10,541
Non-controlling interests 156 397 393 389
Total equity 6,379 12,324 11,627 10,930
4.1 Lease liabilities, non-current 275 194 229 241
4.1 Borrowings, non-current 487 469 91 4
4.2 Pensions and similar obligations 25 28 25 54
3.5 Provisions 79 82 58 30
5.1 Deferred tax 180 188 134 93
Tax payables 16 1 2 -
Other non-current liabilities 300 299 219 177
Total non-current liabilities 1,062 962 539 422
4.1 Lease liabilities, current 85 89 87 86
4.1 Borrowings, current 5,878 362 636 55
3.5 Provisions 4 21 29 44
Trade payables 432 366 413 372
Tax payables 255 107 83 34
Other payables 265 189 191 166
2.1 Deferred income 17 18 10 10
Other current liabilities 973 701 726 626
Liabilities associated with assets held for sale 1 4 - -
Total current liabilities 6,937 1,156 1,449 767
Total liabilities 7,999 2,118 1,988 1,189
Total equity and liabilities 14,378 14,442 13,615 12,119
Svitzer Group Annual Report 2023 56Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Consolidated cash flow statement
Note (DKK m) 2023 2022 2021
Profit/loss before financial items 1,007 820 762
2.3, 3.1, 3.2, 3.3 Depreciation, amortisation and impairment losses, net 829 957 774
2.4 Gain on sale of non-current assets, etc., net -18 -1 -15
Share of profit/loss in joint ventures and associated companies -128 -153 -138
5.5 Change in working capital -113 -205 -77
Change in provisions and pension obligations, etc. -17 18 -19
Other non-cash items 4 6 -0
Cash flow from operating activities before tax 1,564 1,442 1,287
Taxes paid -148 -151 -35
Cash flow from operating activities 1,416 1,291 1,252
5.5 Purchase of intangible assets and property, plant and equipment -1,465 -1,153 -944
Sale of intangible assets and property, plant and equipment 207 73 80
Dividends received 177 131 112
Other financial investments, net 20 39 47
Cash flow from investing activities -1,061 -910 -703
4.1 Repayment of external borrowings -21 -3 428
4.1 Repayment of lease liabilities -100 -98 -96
4.1 Proceeds from external borrowings - 24 2
4.1 Proceeds from borrowings with Parent company 6,200 - -
4.1 Change in borrowings with Parent company -635 92 256
Change in loans with Parent company 543 -377 -1,060
Financial income received 160 49 31
Financial expenses paid -80 -26 -14
4.3 Financial expenses paid on lease liabilities -12 -12 -13
Dividends distributed -6,216 -17 -51
Dividends distributed to non-controlling interests in subsidiaries -30 -50 -24
Acquisition of non controlling interests -273 - -
Other equity transactions 12 16 -20
Cash flow from financing activities -452 -402 -561
Net cash flow for the period -97 -21 -12
Note (DKK m) 2023 2022 2021
Net cash flow for the period -97 -21 -12
Cash and cash equivalents 1 January 432 436 410
Currency translation effect on cash and cash equivalents -16 17 38
Cash and cash equivalents 31 December 319 432 436
Of which classified as assets held for sale -1 -5 -
Cash and cash equivalents 31 December 318 427 436
Cash and bank balances include DKK 198m (2022: DKK 329m, 2021: DKK 286m) relating to cash and
bank balances in countries with exchange control or other restrictions. These funds are not readily available
for general use by the parent company or other subsidiaries.
Svitzer Group Annual Report 2023 57Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Consolidated statement of changes in equity
Note (DKK m) Share
capital
Translation
reserve
Retained
earnings
Total Non-controlling
interests
Total
equity
Equity 1 January 2021 421 3,200 6,920 10,541 389 10,930
Other comprehensive income, net of tax - 549 -333 216 10 226
Profit for the period - - 537 537 36 573
Total comprehensive income for the period - 549 204 753 46 799
Dividends to shareholders - - -50 -50 -31 -82
Acquisition of non-controlling interests - - -21 -21 - -21
Sale of non-controlling interests - - 13 13 -13 -
Capital increases and decreases - - -2 -2 2 -
Total transactions with shareholders - - -60 -60 -42 -102
Equity 31 December 2021 421 3,749 7,064 11,234 393 11,627
2022
Other comprehensive income, net of tax - 87 1 88 10 98
Profit for the period - - 598 598 51 649
Total comprehensive income for the period - 87 599 686 61 747
Dividends to shareholders - - -17 -17 -48 -65
Sale of non-controlling interests - - 9 9 -9 -
Capital increases and decreases - - 15 15 - 15
Total transactions with shareholders - - 7 7 -57 -50
Equity 31 December 2022 421 3,836 7,670 11,927 397 12,324
Svitzer Group Annual Report 2023 58Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Consolidated statement of changes in equity
Note (DKK m) Share
capital
Translation
reserve
Retained
earnings
Total Non-controlling
interests
Total
equity
2023
Other comprehensive income, net of tax - -200 -6 -206 -4 -210
Profit for the period - - 705 705 55 760
Total comprehensive income for the period - -200 699 499 51 550
Dividends to shareholders - - -6,200 -6,200 -33 -6,233
Acquisition of non-controlling interests - - - - -273 -273
Capital increases and decreases - - -3 -3 14 11
Total transactions with shareholders - - -6,203 -6,203 -292 -6,495
Equity 31 December 2023 421 3,636 2,166 6,223 156 6,379
The Company's share capital amounts to DKK 420,953 thousand with shares of DKK 250 or multiples there of.
Dividend per share in 2023 is equivalent to DKK 3,612 per share. Earnings and dividends per share in 2023 and before is only applicable before the demerger from A.P. Møller – Mærsk A/S.
Svitzer Group Annual Report 2023 59Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Notes to the consolidated
financial statements
1. Basis of Preparation
1.1 General accounting policies
1.2 Significant accounting estimates
and judgements
2. Operating Profit
2.1 Segment information
2.2 Operating costs
2.3 Depreciation, amortisation and impairment losses
2.4 Gain on sale of non-current assets, etc. net
3. Invested Capital
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets
3.4 Loans receivable
3.5 Provisions
3.6 Investments in associates and joint ventures
4. Capital and Financing
4.1 Borrowings and lease liability reconciliation
4.2 Pension and similar obligations
4.3 Financial income and expenses
4.4 Financial instruments and risks
4.5 Financial instruments by category
5. Other Disclosures
5.1 Tax and deferred tax
5.2 Share based payments
5.3 Commitments
5.4 Contingent liabilities
5.5 Cash flow specifications
5.6 Related parties
5.7 Subsequent events
Svitzer Group Annual Report 2023 60Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Basis of preparation
The consolidated financial statements for 2023
for Svitzer have been prepared on a going con-
cern basis and in accordance with the IFRS
Accounting Standards as adopted by the EU
and additional disclosure requirements for
reporting class large C as per Danish Financial
Statements Act.
The consolidated financial statements of Svitzer
are included in the consolidated financial state-
ments of A.P. Moller – Maersk.
First-time adoption of IFRS accounting
standards
For all periods up to and including the year
ended 31 December 2022, the parent company,
Svitzer A/S, has prepared separate financial
statements in accordance with the Danish
Financial Statements Act. These consolidated
financial statements for the year ended
31 December 2023 are the first consolidated
financial statements prepared in accordance
with IFRS Accounting Standards as adopted by
the EU and further requirements in the Danish
Financial Statements Act. Accordingly, Svitzer
has prepared consolidated financial statements
for the year ended 31 December 2023 together
with comparative figures for the years ended
31 December 2022 and 31 December 2021 that
comply with IFRS as adopted by the EU appli-
cable as at 31 December 2023, as described
in the summary of general accounting policies.
In preparing the financial statement, the Group’s
opening statement of financial position was
prepared as at 1 January 2021, the Group’s date
of transition to IFRS Accounting Standards as
adopted by the EU.
As a Brand in A.P. Moller – Maersk, the account-
ing policies applied by Svitzer have been aligned
with IFRS Accounting Standards, and as such
no material differences exist between the rec-
ognition and measurement criteria historically
applied in the financial reporting to A.P. Moller
– Maersk and the criteria applied in the prepara-
tion of these consolidated financial statements.
In addition, no objective evidence has been
identified to suggest that estimates made under
previous accounting policies were in error, and,
as such, no adjustments have been recognised
to opening equity upon the transition to IFRS
Accounting Standards. Accordingly, no recon-
ciliations of impact are presented in these
consolidated financial statements.
In accordance with IFRS 1, these consolidated
financial statements comply with IFRS Account-
ing Standards as adopted by the EU applicable
as at 31 December 2023. All standards are
applied fully retrospectively, considering transi-
tion options in IFRS 1.
iXBRL reporting
The primary statements and the notes to the
consolidated financial statements are tagged
using inline eXtensible Business Reporting
Language (iXBRL).
Rounding
In general, rounding may cause variances in
sums and percentages in the Annual Report.
Consolidation
The consolidated financial statements com-
prise the parent company Svitzer A/S and its
subsidiaries.
Subsidiaries are entities controlled by Svitzer A/S.
Control is usually obtained when the Group
directly or indirectly holds more than 50% of the
voting rights in the company or by other rights
such as agreements on management control.
Further, control also implies that the Group is
exposed or has rights to variable returns from its
involvement with the investee and has the ability
to affect those returns through its power over
the investee.
Entities are classified as joint ventures if the
contracting parties' rights are limited to net
assets in the seperate legal entities.
Entities which are not subsidiaries, over which
the Group exercises significant influence, but
which it does not control are considered associ-
ates. Significant influence is usually obtained by
direct or indirect ownership or controls of more
than 20% of the voting rights but less than 50%.
The Consolidated Financial Statements are
based on the Parent Company and the subsid-
iaries and are prepared by combining items of
a uniform nature and eliminating intercompany
transactions, shareholdings, balances and inter-
company gains and losses. The consolidated
financial statements are prepared by applying
the Group’s accounting policies. Investments in
subsidiaries are eliminated against the propor-
tionate share of the subsidiaries’ net asset value
at the acquisition date. The Group’s investments
in associates and joint ventures are recognised
in the Consolidated Financial Statements at the
Group’s proportionate share of the associate’s/
joint venture’s net asset value.
Non-controlling interests’ share of profit/loss for
the year and of equity in subsidiaries is included
as part of Svitzer’s profit and equity respectively
but shown as separate items.
Foreign currency translation
The consolidated financial statements are pre-
sented in DKK. In the translation to the presen-
tation currency for subsidiaries, associates, or
joint ventures with functional currencies other
than DKK, the total comprehensive income
General accounting policies
Note 1.1
Svitzer Group Annual Report 2023 62Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
is translated into DKK at average exchange
rates, and the balance sheet is translated at
the exchange rates as at the balance sheet
date. Exchange rate differences arising from
such translations are recognised directly in
other comprehensive income and in a separate
reserve of equity.
The functional currency varies from business
area to business area. For Svitzer’s principal
activities, the functional currency is generally
the local currency of the country in which such
activities are performed, unless specific scenarios
suggest a different currency is appropriate.
Transactions in currencies other than the func-
tional currency are translated at the exchange
rate prevailing at the date of the transaction.
Monetary items in foreign currencies not set-
tled at the balance sheet date are translated at
the exchange rate as at the balance sheet date.
Foreign exchange gains and losses are included
in the income statement as financial income
or expenses.
Share of profit/loss in associated companies
and joint ventures is recognised net of tax and
corrected for the share of unrealised intra-group
gains and losses. The item also comprises any
impairment losses for such investments and
their reversal.
Statement of comprehensive income
Other comprehensive income consists of gains
and losses not recognised in the income state-
ment, including exchange rate adjustments
arising from the translation from functional cur-
rency to presentation currency, fair value adjust-
ments of other equity investments (at FVOCI),
as well as actuarial gains/losses on defined
benefit plans, etc. Svitzer’s share of other com-
prehensive income in associated companies and
joint ventures is also included.
On disposal or discontinuation of an entity,
Svitzer’s share of the accumulated exchange
rate adjustment relating to the relevant entity
with a functional currency other than DKK, is
reclassified to the income statement.
Other comprehensive income includes current
and deferred income tax to the extent that
the items recognised in other comprehensive
income are taxable or deductible.
Balance sheet
Non-current assets
Assets are held for sale, when the carrying
amount of an individual non-current asset, or
disposal groups, will be recovered principally
through a sale transaction rather than through
continuing use. Assets are classified as held
for sale when activities to carry out a sale have
been initiated, when the activities are available
for immediate sale in their present condition and
when the activities are expected to be disposed
of within 12 months. Liabilities directly asso-
ciated with assets held for sale are presented
separately from other liabilities.
Assets held for sale are measured at the lower of
the carrying amount immediately before classi-
fication as held for sale and fair value less costs
to sell, and impairment tests are performed
immediately before classification as held for sale.
Non-current assets are not depreciated or amor-
tised while classified as held for sale.
Current assets
Inventories mainly consist of bunker on the ves-
sels. Inventories are measured at cost, primarily
according to the FIFO method. Spare parts are
usually expensed directly in the profit/loss as
the amounts are immaterial.
Loans and receivables are initially recognised at
fair value and if applicable any direct transaction
costs, and subsequently measured at amor-
tised cost using the effective interest method.
For loans and other receivables, write-downs
are made for expected losses based on specific
individual assessments. For trade receivables,
the loss allowance is measured by the simpli-
fied approach according to IFRS 9, applying
a provision matrix to calculate the expected
lifetime losses. The provision matrix includes
write-downs for non-due receivables. Write-
downs could also be made for specific individual
cases.
Equity and liabilities
Equity includes total comprehensive income for
the year comprising the profit/loss for the year
and other comprehensive income.
The translation reserve comprises of Svitzer’s
share of accumulated exchange rate differences
arising on translation from functional currency
into presentation currency.
Other payables comprise of amounts related
to staff, including wages and salaries, holiday
pay and other wages and salary related items,
amounts owed to the public authorities, amounts
owed in connection with the purchase/disposal
of capex, accrued interest and dividends payable.
Climate-related risks
When preparing the consolidated financial
statements, Management considers climate-
related risks, where these could potentially
impact reported amounts materially. As a Brand
of A.P. Moller – Maersk, Svitzer was part of the
assessment made at the end of 2023 by A.P.
Moller – Maersk. For Svitzer, the material areas
assessed covered useful life and residual value
of vessels. For 2023, the assessment has not
resulted in any material change in useful life or
General accounting policies
Note 1.1 — continued
Svitzer Group Annual Report 2023 63Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
the estimated residual value. Reference is made
to Note 3.2 Property, plant and equipment.
New financial reporting requirements
Amendments to IAS 12 Income Taxes: In May
2023, the IASB issued amendments to IAS 12
income taxes, which provides temporary relief
from the requirement to recognise and disclose
deferred taxes arising from enacted or substan-
tively enacted tax law that implements the Pillar
II Model Rules published by the OECD, includ-
ing tax law that implements qualified domestic
minimum top-up taxes. The amendments have
been adopted by the EU and the company has
applied the relief.
Deferred tax related to assets and liabilities
arising from a single transaction: The amend-
ments narrow the scope of the initial recog-
niton exception so that it no longer applies to
transactions that give rise to equal taxable and
deductible temporary differences such as leases
and decomissioning liabilities. The amendments
have no material impact on the Group's consoli-
dated financial statements.
Svitzer has not yet adopted the following
accounting standards and requirements:
IFRS 17 – Insurance contracts: It has been
assessed that the standard will not have a signif-
icant impact on recognition and measurement
of the Group.
Other changes to IFRS are not expected to
have any significant impact on recognition and
measurement.
General accounting policies
Note 1.1 — continued
The preparation of the consolidated financial
statements requires the Management to make
estimates and judgements on an ongoing
basis and to form assumptions that provide
the basis for recognition and measurement of
the reported amounts. These assumptions are
based on historical experience, independent
advice, external data points as well as in-house
specialists and other factors believed to be
reasonable under the given circumstances.
The assumptions may be incomplete or inac-
curate and unanticipated events or circum-
stances may occur, for which reason the actual
results may deviate from the applied estimates,
assessments, and assumptions. One aspect is
measurement uncertainty, where Management
makes assumptions that derive the value of
recognised assets and liabilities. These assump-
tions concern the timing and amount of future
cash flows as well as the risks inherent in these.
Therefore, assumptions may change, or the
outcome may differ in the coming years, which
could require an upward or downward adjust-
ment to the carrying amounts of the balance
sheet items.
In the opinion of Management, the following
accounting estimates are significant in the
preparation of the Annual Report:
• Useful life and residual value estimates:
Note 3.2
• Impairment testing key assumptions:
Note 3.1, Note 3.2
• Deferred tax assets and uncertain tax
positions: Note 5.1
Significant accounting estimates and judgements
Note 1.2
Svitzer Group Annual Report 2023 64Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Segment information
The allocation of business activities into seg-
ments reflects Svitzer’s character as a global
leading port infrastructure service provider and is
in line with the internal management reporting.
The reportable segments are split out on the
main geographical regions Svitzer operates in.
The operating segments being Australia,
Europe, AMEA (Asia, Middle East and Africa),
Americas and the Unallocated items which
includes the costs related to the corporate
functions, which are reported as unallocated
items.
All the four segments have activities in harbour
towage and terminal towage.
Revenue between segments is limited.
Income statement
Revenue for all businesses is recognised when
the performance obligation has been satisfied,
which happens upon the transfer of control to
the customer at an amount that reflects the
consideration to which the Group expects to be
entitled in exchange for the goods or services.
Revenue from towage activities is recognised
over time as the performance obligation is
satisfied, including a share of revenue from
incomplete activities at the balance sheet date.
However, this remains very limited to Svitzer.
Revenue from sales is recognised based on
the price specified in the contract, net of the
estimated volume discounts. Revenue is only
recognised to the extent that it is highly probable
that a significant reversal will not occur.
Revenue from the sale of goods is recognised
upon the transfer of control to the buyer.
No significant element of financing is deemed
present as sales are made with a credit term of
20-45 days, which is consistent with market
practice.
Additional key segment performance measure
is gross capital expenditure (CAPEX) which
is calculated basis the capex spend excluding
acquisitions and divestments.
Segment information
Note 2.1
Svitzer Group Annual Report 2023 66Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Segment information
Note 2.1 — continued
(DKK m) Australia Europe Americas AMEA Unallocated
items &
Eliminations
1
Consolidated
total
2023
Total revenue 2,004 1,994 907 888 -7 5,786
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 637 488 298 311 -45 1,690
Depreciation, amortisation and impairments, net -306 -263 -133 -106 -20 -829
Profit before financial items (EBIT) 363 244 230 235 -65 1,007
Key Metrics:
Gross capital expenditures, excl. acquisitions and divestments (CAPEX) -648 -505 -192 -120 0 -1,465
2022
Total revenue 1,914 1,874 788 896 3 5,476
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 570 505 240 318 -11 1,623
Depreciation, amortisation and impairments, net -296 -274 -122 -257 -7 -957
Profit before financial items (EBIT) 316 235 183 102 -15 820
Key Metrics:
Gross capital expenditures, excl. acquisitions and divestments (CAPEX) -287 -224 -223 -399 -20 -1,153
2021
Total revenue 1,668 1,599 655 730 0 4,653
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 512 430 213 261 -32 1,383
Depreciation, amortisation and impairments, net -274 -259 -123 -107 -12 -774
Profit before financial items (EBIT) 286 182 138 169 -15 762
Key Metrics:
Gross capital expenditures, excl. acquisitions and divestments (CAPEX) -185 -411 -100 -224 -23 -944
1
Includes Svitzer HQ (headquarters, which incurs costs for the global teams, IT, travel costs. etc)
Svitzer has organised segments in ‘Australia’,
‘Europe’, ‘Americas’ and ‘AMEA’. All segments
include harbour towage and terminal towage
activities.
Reference is made to the income statement for
a reconciliation from EBIT to profit.
The segment disclosures reflect the informa-
tion which the Executive Management receives
monthly in its capacity as ‘chief operating deci-
sion maker’ as defined in IFRS 8. The allocation
of resources and the segment performance are
evaluated based on revenue and profitability
measured on earnings before interest and taxes
(EBIT).
Svitzer Group Annual Report 2023 67Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Note 2.1 — continued
Segment information
Accrued income included in trade receivables
in the balance sheet constitutes contract assets
comprising unbilled amounts to customers
representing the Group’s right to consideration
for the services transferred to date. Any amount
previously recognised as accrued income is
reclassified to trade receivables at the time it is
invoiced to the customer.
Deferred income is recognised in the income
statement within 12 months.
Under the payment terms generally applicable
to the Group’s revenue generating activities,
prepayments are received only to a limited extent.
Typically, payment is due upon the completion
of services.
Part of the deferred income presented in the
balance sheet constitutes contract liabilities
which represent advance payments and billings
in excess of revenue recognised.
There are no significant changes in accrued
income and deferred income during the
reporting period.
Loss allowance disclosed in note 4.4 relates
to receivables arising from contracts with
customers.
Contract balances (DKK m) 2023 2022 2021
Trade receivables from revenue from contracts with customers 770 649 550
Accrued income – contract asset 106 64 58
Deferred income – contract liability 17 18 10
Geographical
split (DKK m)
Revenue Non-current assets
1
2023 2022 2021 2023 2022 2021
Denmark 309 271 240 437 518 548
Angola 240 262 212 235 265 253
Argentina 122 122 93 119 146 155
Australia 1,887 1,802 1,564 2,615 2,395 2,258
Brazil 216 166 125 661 519 352
Egypt 148 139 77 299 326 227
Netherlands 247 273 228 837 1,457 1,523
Panama 115 102 110 312 253 255
Sweden 202 193 163 8 19 18
UK 1,010 968 826 1,341 743 696
Other 1,291 1,178 1,015 2,168 1,872 1,898
Total 5,786 5,476 4,653 9,032 8,513 8,183
Geographical information: Revenue for towage activities is based on the entity the port being serviced by the tugs operated by
the Group, including leased vessels on time charter agreements.
1
Comprised of intangible assets, property, plant and equipment and right-of-use assets, excluding financial non-current assets.
Types of revenue (DKK m) 2023 2022 2021
Harbour Towage activities 3,993 3,731 3,124
Terminal Towage activities 1,787 1,764 1,548
Other activities and eliminations 6 -19 -19
Total 5,786 5,476 4,653
Svitzer Group Annual Report 2023 68Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Note 2.2
Operating costs
(DKK m) 2023 2022 2021
Variable costs
1
586 536 339
Vessel costs
2
588 543 467
Overheads
3
329 294 225
Staff costs 2,403 2,317 2,101
Other 189 159 117
Total operating costs 4,095 3,849 3,249
Remuneration of employees
Wages and salaries 2,053 1,996 1,803
Severance payments 11 14 20
Pension costs, defined benefit plans 14 25 21
Pension costs, defined contribution plans 178 149 143
Other social security costs 151 133 114
Total remuneration 2,407 2,317 2,101
Of which
Recognised in the cost of assets 4 - 2
Expensed as staff costs 2,403 2,317 2,101
Average number of employees 3,397 3,285 3,127
Customary agreements have been entered into with employees regarding compensation in connection with resignation
with consideration for local legislation and collective agreements.
For information about share-based payments, reference is made to note 5.2.
1
Variable costs are inclusive of fuel costs, overheads and royalty costs
2
Vessel costs are inclusive of port, mobilisation, insurance, stores, consumables, maintenance and repair costs
3
Overheads are inclusive of lease expenses and general administration costs
Fees and remuneration to the Executive Management
and other key management personnel (DKK m)
2023 2022 2021
Fixed based salary 21 22 18
Short-term cash incentive
2
11 12 9
Long-term share based incentives
1
5 5 4
Total remuneration to the Executive Management and other
key management personnel 37 39 31
Key management personnel comprises of the Board of Directors, Executive Management and other key management personnel.
1
Inclusive of restricted shares and stock options, refer to note 5.2.
2
Short term incentives include pensions contributed for other key management personnel of DKK 1.9m (2022: DKK 1.5m,
2021: DKK 1.0m).
For the years 2023, 2022, 2021 the Board of Directors for Svitzer A/S have been employees of A.P. Moller – Maersk.
No additional fees and remuneration has been provided for the Board by Svitzer A/S.
Fees to the statutory auditors (DKK m) 2023 2022 2021
Statutory audit 9 6 6
Other assurance services 7 - -
Tax and VAT advisory services - - -
Other services - - -
Total fees 16 6 6
Svitzer Group Annual Report 2023 69Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Note 2.3 Note 2.4
Depreciation, amortisation and impairment losses Gain on sale of non-current assets, etc.
(DKK m) 2023 2022 2021
Vessels etc. 698 671 611
Production facilities and equipment 16 14 15
Right-of-use assets 102 97 102
Total depreciation 816 782 727
Customer relationships 11 11 11
Other intangible assets 13 22 12
Total amortisation 24 33 24
Impairments losses related to intangible assets
1
9 - 14
Vessels etc. impairment losses
2
1 7 -
Assets held for sale impairment losses
2
- 134 10
Total impairment losses 11 141 24
Reversal of impairment losses
3
-20 - -
Total net impairments -10 141 24
Depreciation, amortisation and impairment losses, net 829 957 774
1
Impairment losses related to intangible assets of DKK 9m (2022: DKK 0m, 2021: DKK 14m) relate to impairments for IT
software.
2
Impairment losses related to tangible assets of DKK 1m (2022: DKK 141m, 2021: DKK 10m) relate to impairment of
property, plant and equipment. In 2022 as a consequence of closing of Svitzer operations in Russia impairment of DKK 134m
was recognised, as the recoverable amounts of the assets in Russia were reassessed and impairment losses for the vessels
were recognised. The operating segment impacted was AMEA.
3
Reversal of impairment losses of DKK 20m (2022: DKK 0m, 2021: DKK 0m) relate to two vessels which were sold for higher
than asset value considered in assets held for sale. The operating segment impacted was AMEA.
(DKK m) 2023 2022 2021
Gains 23 11 19
Losses -5 -10 -4
Gain on sale of non-current assets, etc., net 18 1 15
Gains and losses in the years are related to the sale of vessels.
Svitzer Group Annual Report 2023 70Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets
3.4 Loans receivable
3.5 Provisions
3.6 Investments in associates and joint ventures
3.
Invested Capital
Svitzer Group Annual Report 2023 71Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Intangible assets are measured at cost less
accumulated amortisation and impairment
losses. Amortisation is calculated on a straight-
line basis over the estimated useful life of the
assets. Goodwill has an indefinite useful life.
Intangible assets regarding acquired customer
relationships are amortised basis assessment on
individual cases, while IT software is amortised
over the useful life of 5 years.
Impairment losses are recognised when the carry-
ing amount of an asset or a cash-generating unit
exceeds the higher of the estimated value in use
and fair value less costs of disposal. Goodwill is
attributed to cash-generating units on acquisi-
tion and impaired before other assets.
Significant account estimates
Intangible assets and property, plant and equip-
ment are tested for impairment if there is an
indication of impairment. However, annual
impairment tests are carried out for goodwill as
well as intangible assets that are not yet in use.
Impairment losses are included in depreciation,
amortisation and impairment, in the income
statement.
In Group, only Port Towage Amsterdam reported
under reporting segment, Europe, has Goodwill
recognised as a result of a stepwise acquisiton.
An annual impairment test is carried out for
goodwill.
Impairment – assessment inputs
The recoverable amount of each cash- generating
unit is determined based on the higher of its
value in use or fair value less costs of disposal.
The estimated value in use is calculated using
certain key assumptions for the expected future
cash flows and applied discount factor. Current
market values for vessels, etc., are estimated
using acknowledged brokers. Projected cash
flow models are used when fair value is not
obtainable or when fair value is deemed lower
than value in use. The cash flow projections are
based on financial budgets and business plans
approved by Management, though based on
experience, external sources where available
and a calculated terminal value. In nature, these
projections are subject to judgement and esti-
mates that are uncertain.
The discount rates applied reflect the time value
of money as well as the specific risks related
to the underlying cash flows, i.e, project and/
or country specific risk premium. Further, any
uncertainties reflecting past performance and
possible variations in the amount or timing of the
projected cash flows are generally reflected in
the discount rates.
Impairment – key assumptions applied
The outcome of impairment tests is subject to
estimates of the future development of volumes,
rates, fuel prices and the discount rates applied.
Management determines the key assump-
tions for each impairment test by considering
past experience as well as market analysis
and future expectations based on supply and
demand trends.
Svitzer is directly impacted by the development
of fuel price, where the competitive landscape
determines the extent to which the develop-
ment is reflected in the tariffs charged to the
customer. Fuel expense is expected to reduce
compared to 2023, driven by a reduction
in prices.
Inflation is expected to also remain a contrib-
uting factor, while the impact is expected to be
lower across Svitzer in 2024 than in 2023.
Impairment – results of impairment
Goodwill relates to Port Towage Amsterdam,
where the impairment test is based on the
estimated value in use from five-year business
plan for 2024-2028 and a calculated terminal
value. Management has applied an assumption
of a flat terminal growth rate of 2% (2022: 2%,
2021: 2%). A discount rate of 9.5% (2022: 7.6%,
2021: 7.6%) p.a. before tax or a discount rate
of 9% (2022: 7.5%, 2021: 7.5%) p.a after tax.
The impairment test showed headroom from
the value in use to the carrying amount and thus
no impairment was recognised.
Intangible assets
Note 3.1
Svitzer Group Annual Report 2023 72Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Intangible assets
Note 3.1 — continued
(DKK m) Goodwill Customer
relationships
Other
1
Total
Cost
1 January 2023 2,319 56 144 2,519
Disposals - - -55 -55
Exchange rate adjustments -82 - 1 -81
31 December 2023 2,237 56 90 2,383
Amortisation and impairment losses
1 January 2023 -1,951 -34 -90 -2,075
Amortisation - -11 -13 -24
Impairment losses
2
- - -9 -9
Disposals - - 55 55
Exchange rate adjustments 70 - -1 69
31 December 2023 -1,881 -45 -58 -1,983
Carrying amount:
31 December 2023 356 11 32 399
Cost
1 January 2022 2,298 56 119 2,473
Additions - - 20 20
Exchange rate adjustments 21 - 6 27
31 December 2022 2,319 56 144 2,519
Amortisation and impairment losses
1 January 2022 -1,952 -22 -64 -2,039
Amortisation - -11 -22 -33
Exchange rate adjustments 1 -1 -5 -5
31 December 2022 -1,951 -34 -90 -2,075
Carrying amount:
31 December 2022 368 22 54 444
(DKK m) Goodwill Customer
relationships
Other
1
Total
Cost
1 January 2021 2,688 56 93 2,837
Additions - - 23 23
Disposals -478 - - -478
Exchange rate adjustments 88 - 3 91
31 December 2021 2,298 56 119 2,473
Amortisation and impairment losses
1 January 2021 -2,363 -11 -35 -2,410
Amortisation - -11 -12 -24
Impairment losses
3
- - -14 -14
Disposals 478 - - 478
Exchange rate adjustments -67 - -2 -68
31 December 2021 -1,952 -22 -64 -2,039
Carrying amount:
31 December 2021 346 34 56 435
1
Other including IT software is inclusive of any other rights and IT software and prepayments.
2
In 2023, it was assessed that the business was not able to harvest all the benefits of a software, thus an impairment of the
carrying value of DKK 9m was recognised. The impairment was recognised in unallocated items.
3
In 2021 an impairment of DKK 14m was recognised as a result of the redesign of the ERP platform. The operating segment
impacted was unallocated items and eliminations.
Svitzer Group Annual Report 2023 73Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Property, plant and equipment are valued at cost
less accumulated depreciation and impairment
losses. Depreciation is charged to the income
statement on a straight-line basis over the use-
ful life at an estimated residual value. The useful
lives of new assets are typically as follows:
Vessels 25 years
IT equipment 3 years
Operational equipment 5-7 years
Leasehold improvements 5-15 years
Estimated useful lives and residual values are
reassessed on an annual basis. The cost of an
asset is divided into separate components,
which are depreciated separately if the
useful life of the individual component differs.
Drydocking and survey costs are recognised in
the carrying amount of vessels when incurred
and depreciated over the period until the next
drydocking or survey.
The cost of assets constructed by Svitzer
includes directly attributable expenses.
For information on impairment tests, reference
is made to note 3.1 Intangible assets.
The impact of decarbonisation and climate-
related risks on the useful lives of existing assets
has been assessed. Such risks include new
climate- related legistation restricting the use of
certain assets and new technology demanded.
For 2023, the assessment has not resulted in
any material change.
Significant accounting estimates
Useful lives are estimated based on experience.
When there is an indication of a change in an
asset’s useful life, Management revises the
estimates for individual or groups of assets
with similar characteristics due to factors such
as quality of maintenance and repair, technical
development, or environmental requirements.
Residual values of a vessel is difficult to estimate
given their long useful lives, the uncertainty
of economic conditions, and the uncertainty
of steel prices which is considered the main
determinant of residual value. Additionally, the
acceleration of development of vessels with a
lower carbon footprint may generate downward
pressure on the market for second-hand con-
ventional vessels. Svitzer estimates its residual
value of vessels at 10% of the purchase price
excluding drydocking costs.
Property, plant and equipment
Note 3.2
(DKK m) Vessels
etc.
Other tangi-
ble assets
1
Assets under
construction
and payment
on account
Total
Cost
1 January 2023 12,211 230 442 12,883
Additions 73 3 1,414 1,490
Disposals -495 -36 -4 -535
Transfers 1,258 43 -1,301 -
Transfers, assets held for sale -33 - - -33
Exchange rate adjustments -150 -4 6 -148
31 December 2023 12,863 237 557 13,657
Depreciation and impairment losses
1 January 2023 -4,905 -176 - -5,081
Depreciation -698 -16 - -714
Impairment losses -1 - - -1
Disposals 316 35 - 351
Transfers, assets held for sale 28 - - 28
Exchange rate adjustments 47 3 - 50
31 December 2023 -5,214 -154 - -5,368
Carrying amount
31 December 2023 7,650 83 557 8,290
1
This includes hardwares, furniture & fixtures, cars, land, buildings, leasehold improvements, operational improvements and
other tangible assets
Svitzer Group Annual Report 2023 74Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
(DKK m) Vessels
etc.
Other tangi-
ble assets
1
Assets under
construction
and payment
on account
Total
Cost
1 January 2022 11,819 238 232 12,289
Additions 80 2 1,037 1,119
Disposals -332 -24 -- -355
Transfer from asset under construction 804 17 -821 -
Transfers, assets held for sale -280 -1 -11 -291
Exchange rate adjustments 120 -2 5 123
31 December 2022 12,211 230 442 12,883
Depreciation and impairment losses
1 January 2022 -4,656 -187 - -4,843
Depreciation -671 -14 - -686
Impairment losses -7 - - -7
Disposals 297 23 - 320
Transfers, assets held for sale 147 0 - 148
Exchange rate adjustments -15 2 - -13
31 December 2022 -4,905 -176 - -5,081
Carrying amount
31 December 2022 7,307 54 442 7,802
1
This includes hardwares, furniture & fixtures, cars, land, buildings, leasehold improvements, operational improvements and
other tangible assets
Property, plant and equipment
Note 3.2 — continued
(DKK m) Vessels
etc.
Other tangi-
ble assets
1
Assets under
construction
and payment
on account
Total
Cost
1 January 2021 11,005 305 174 11,484
Additions 386 -1 532 918
Disposals -429 -81 - -510
Transfer from asset under construction 474 7 -481 -
Transfers, assets held for sale -49 - - -49
Exchange rate adjustments 431 9 7 446
31 December 2021 11,819 238 232 12,289
Depreciation and impairment losses
1 January 2021 -4,271 -247 - -4,518
Depreciation -611 -15 - -625
Impairment losses - - - -
Disposals 364 81 - 445
Transfers, assets held for sale 41 - - 41
Exchange rate adjustments -179 -7 - -186
31 December 2021 -4,656 -187 - -4,843
Carrying amount
31 December 2021 7,163 51 232 7,446
1
This includes hardwares, furniture & fixtures, cars, land, buildings, leasehold improvements, operational improvements and
other tangible assets
Svitzer Group Annual Report 2023 75Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Right-of-use assets are mainly leased vessels
and real estate property. Lease contracts for ves-
sels are typically made for fixed periods but may
have extension options as described together
with lease liabilities. Real estate contracts are
negotiated on an individual basis and contain a
wide range of terms and conditions.
Leases are recognised as a right-of-use asset
with a corresponding lease liability at the date
on which the leased asset is available for use.
The right-of-use asset is depreciated over the
shorter of the asset’s useful life and the lease
term on a straight-line basis.
The Group applies the short-term recognition
exemption for lease contracts that, at the com-
mencement date have a lease term of 12 months
or less for all classes of underlying assets and
exemption for lease contracts for which the
underlying asset is of low value.
Right-of-use assets (DKK m) Vessels,
etc.
Real estate
and other
leases
Total
1 January 2023 98 169 267
Additions 88 99 187
Disposals - -1 -1
Depreciation -68 -34 -102
Exchange rate adjustments -3 -5 -8
31 December 2023 115 228 343
1 January 2022 162 139 300
Additions - 63 63
Disposals - - -
Depreciation -66 -30 -97
Exchange rate adjustments 3 -2 1
31 December 2022 98 169 267
1 January 2021 158 160 318
Additions 107 9 116
Disposals -35 -7 -42
Depreciation -74 -28 -102
Exchange rate adjustments 6 5 10
31 December 2021 162 139 300
Amounts recognised in profit and loss (DKK m) 2023 2022 2021
Depreciation cost on right-of-use assets -102 -97 -102
Interest expenses (included in finance costs) -12 -12 -13
Expenses relating to service elements of leases -10 -7 -4
Expenses relating to short-term leases -57 -47 -43
Expenses relating to leases of low-value assets -1 -1 -1
Total recognised in operating costs -68 -54 -49
Right-of-use assets
Note 3.3
Loans receivable
Note 3.4
Loans receivable of DKK 2,601m (2022:
DKK 3,188m, 2021: DKK 2,870m) primarily
consists of intra group cash pools with
A.P. Møller – Mærsk A/S of DKK 2,592m
(2022: DKK 3,177m, 2021: DKK 2,727m).
As part of the Group’s activities, customary leasing
agreements are entered, especially regarding the chartering
of vessels and offices and other equipment. In some cases,
there can be options for extending the lease term.
Real estate and other leases primarily consist of leased
buildings for Svitzer’s offices.
Lease liabilities are disclosed in notes 4.1 and 4.4.
Total cash outflow from leases was DKK 180m
(2022: DKK 164m , 2021: DKK 157m ) of which
DKK 100m(2022: DKK 98m, 2021: DKK 96m)
relates to repayment of lease liabilities,
DKK 68m (2022: DKK 54m, 2021: DKK 49m) to
other lease expenses and DKK 12m (2022: 12m,
2021: DKK 13m) to interest expenses.
Svitzer Group Annual Report 2023 76Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Provisions
Note 3.5
Provisions are recognised when Svitzer has a
present legal or constructive obligation from
past events. The item includes, legal disputes,
provisions for ongoing indirect tax disputes
and other provisions. Provisions are recognised
based on best estimates and discounted where
the time element is significant and where the
time of settlement is reasonably determinable.
(DKK m) Indirect tax
provisions
Legal
disputes
Other Total
1 January 2023 81 21 2 103
Provision made 9 1 - 11
Amount used - -19 - -19
Amount reversed -3 - - -3
Exchange rate adjustments -10 1 - -9
31 December 2023 77 4 2 83
Of which:
Classified as non-current 77 2 - 79
Classified as current - 2 2 4
(DKK m) Indirect tax
provisions
Unsettled claims
and lawsuits
Other Total
1 January 2022 64 21 2 87
Provision made 15 4 - 19
Amount used - -3 - -3
Amount reversed -4 - - -4
Exchange rate adjustments 5 -1 - 4
31 December 2022 81 21 2 103
Of which:
Classified as non-current 81 2 - 82
Classified as current - 19 2 21
1 January 2021 50 2 22 74
Provision made 15 20 - 35
Amount used - - -20 -20
Amount reversed -6 -1 - -7
Exchange rate adjustments 5 - 0 5
31 December 2021 64 21 2 87
Of which:
Classified as non-current 40 18 - 58
Classified as current 24 3 2 29
Indirect tax provisions include current and potential tax claims which are not based on the taxable profits such
as VAT, turnover taxes, etc.
Unsettled claims and lawsuits include ongoing legal disputes where a provision should be created basis legal
assessment. The resolution of legal disputes through either negotiations or litigation can take several years to
be reached and outcomes are subject to considerable uncertainty.
All non current provisions are expected to be settled within two to five years.
Reversals of provisions primarily relate to legal disputes and indirect tax provisions which are recognised in the
income statement under operating costs and tax.
Svitzer Group Annual Report 2023 77Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Investments in associates and joint ventures
Note 3.6
Investments in associated companies and joint
ventures are recognised as Svitzer's share of
the equity value inclusive of goodwill less any
impairment losses. Goodwill is an integral part
of the value of associated companies and joint
ventures and is therefore subject to impairment
test together with the investment.
Impairment losses are reversed to the extent the
original value in considered recoverable.
Investments in associates and joint ventures are
measured according to equity method. In the
balance sheet, investments are measured at the
proportionate share of the companies' equity
value.
The Group, through its wholly owned subsidiar-
ies have interests in associated companies and
joint ventures. The table on the right shows the
interests with ownership percentages.
(DKK m) 2023 2022 2021
Svitzer's interest in associates 190 198 194
Svitzer's interest in joint ventures 582 667 671
Total 772 865 865
Investments comprise (DKK m) Ownership % Type of
ownership
Share of profit/loss Share of Carrying amount
2023 2022 2021 2023 2022 2021
Qingdao Port Svitzer Towage Co. Ltd 45 Associated 5 7 7 106 111 113
Cenertech Svitzer Marine Service (Gunagdong)
Co. Ltd 49 Associated 9 10 8 62 64 56
CNOOC Zhuhai Shipping Services Co, LTD 29 Associated 2 3 2 22 24 25
Riverwijs-Dampier Pty. Ltd 50 Joint venture 10 19 14 11 48 49
RiverWijs Burrup Pty.Ltd 50 Joint venture 5 15 11 15 54 48
Adstan Tug Charters (Partnership) 50 Joint venture 7 7 9 11 12 11
Bowen Towage Services Pty. Ltd 50 Joint venture - - 8 4 15 27
Port Lincoln Tugs Pty. Ltd. 50 Joint venture 7 5 1 32 26 21
Halifax Marine Towing Limited Partnership 50 Joint venture 25 19 16 25 18 16
Shenzhen Dapeng Svitzer Towage Company Ltd. 49 Joint venture 2 3 3 20 22 23
Yantian Svitzer (Huizhou) Towage Company Ltd. 44 Joint venture 1 2 2 17 20 21
Svitzer Caribbean Dominicana S.A.S 50 Joint venture 16 14 9 48 46 50
Nakilat Svitzerwijsmuller Company W.L:L 30 Joint venture 16 23 20 197 199 166
Svitzer Barbados Ltd 50 Joint venture 3 - - 12 16 21
Caucedo Marine Service S.A. (Dominican
Republic branch) 50 Joint venture 11 19 13 143 140 123
Other investments
*
Joint venture 9 7 15 47 50 95
Total 128 153 138 772 865 865
* This consists of other joint venture entities with the investment carrying amount lower than 5% of total interests in joint ventures.
Reference is made to the company overview for the country of incorporation.
Svitzer Group Annual Report 2023 78Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Investments in associates and joint ventures
Note 3.6 — continued
Joint ventures, key figures (100%) DKK m 2023 2022 2021
Revenue 975 980 963
Costs -740 -686 -694
Total profit/loss 235 295 268
Share of profit/loss of joint ventures 112 133 121
Non-current assets 1,004 1,226 1,150
Current assets 965 960 767
of this, cash and cash equivalents 297 413 331
Non-current liabilities -130 -105 -166
Current liabilities -302 -367 -259
Total carrying amount 1,536 1,714 1,491
The table summarises the key financial information at 100% for joint ventures.
Associated companies, key figures (100%) DKK m 2023 2022 2021
Revenue 158 174 163
Costs -120 -128 -125
Total profit/loss 38 45 38
Share of profit/loss of associates 16 20 17
Non-current assets 340 382 423
Current assets 187 209 211
of this, cash and cash equivalents 22 120 87
Non-current liabilities -15 -49 -77
Current liabilities - 31 -40 -59
Total carrying amount 481 503 498
The table summarises the key financial information at 100% for associated companies.
The table on the right summarises the profit for
the period and other key financial information at
100% for associates and joint ventures.
Svitzer Group Annual Report 2023 79Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
4.1 Borrowings and lease liability reconciliation
4.2 Pension and similar obligations
4.3 Financial income and expenses
4.4 Financial instruments and risks
4.5 Financial instruments by category
4.
Capital and Financing
Svitzer Group Annual Report 2023 80Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Borrowings and lease liability reconciliation
Note 4.1
(DKK m) Net debt as at
31 December
2022
Cash flows Non-cash changes Net debt as at
31 December
2023
Additions Disposals Foreign exchange
movements
Other
Borrowings 831 5,544 - - -10 - 6,365
Borrowings:
Classified as non-current 469 487
Classified as current 362 5,878
Leases:
Lease liabilities 283 -100 187 -1 -9 - 360
Total leases 283 -100 187 -1 -9 - 360
Leases:
Classified as non-current 194 275
Classified as current 89 85
Total borrowings and leases 1,114 5,445 187 -1 -19 - 6,726
Cash flows of DKK 5,544m consists of proceeds from new borrowings from Parent company of DKK 6,200m, repayments of DKK 21m for external borrowings and repayments of borrowings to the Parent company of DKK 635m.
Svitzer Group Annual Report 2023 81Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
31 December
2020
31 December
2021
Borrowings 59 686 - - -13 -4 728
Borrowings:
Classified as non-current 4 91
Classified as current 55 636
Leases:
Lease liabilities 327 -96 116 -42 11 - 316
Total leases 327 -96 116 -42 11 - 316
Leases:
Classified as non-current 241 229
Classified as current 86 87
Total borrowings and leases 386 590 116 -42 -2 -4 1,044
Borrowings and lease liability reconciliation
Note 4.1 — continued
(DKK m) Net debt as at
31 December
2021
Cash flows Non-cash changes Net debt as at
31 December
2022
Additions Disposals Foreign exchange
movements
Other
Borrowings 728 113 - - -10 - 831
Borrowings:
Classified as non-current 91 469
Classified as current 636 362
Leases:
Lease liabilities 316 -97 63 - 1 - 283
Total leases 316 -97 63 - 1 - 283
Leases:
Lease liabilities 229 194
Total leases 87 89
Total borrowings and leases 1,044 16 63 - -9 - 1,114
Svitzer Group Annual Report 2023 82Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Borrowings and lease liability reconciliation
Note 4.1 — continued
Financial liabilities are initially recognised at
fair value less transaction costs. Subsequently,
the financial liabilities are measured at amor-
tised cost using the effective interest method,
whereby transaction costs and any premium or
discount are recognised as financial expenses
over the term of the liabilities.
Lease liabilities are measured at the present
value of the lease payments over the lease term,
at the interest rate implicit in the lease. If that
rate cannot be determined, the lease's incre-
mental borrowing 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 in a similar economic environment with
similar terms and conditions.
Subsequently, the lease liability is measured
at amortised cost with each lease payment
allocated between the repayment of the liability
and financing cost. The finance cost is charged
to the income statement over the lease period
using the IBR (Incremental borrowing rate) that
was used to discount the lease payments.
The lease payments include fixed payments
less any lease incentives receivable and variable
lease payments that depend on an index or a
rate. If the contract holds an option to purchase,
extend or terminate a lease and it is reasonable
to be exercised by the Group, the lease payment
will include those.
Lease payments on short-term leases and
leases of low value assets are recognised as
an expense on a straight line basis over the
lease term.
Reference is made to Note 4.4 for the maturities
on lease liabilities.
Svitzer Group Annual Report 2023 83Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Pension and similar obligations
Note 4.2
Pension obligations are the net liabilities of
defined benefit obligations and the dedicated
assets adjusted for the effect of minimum fund-
ing and asset ceiling requirements. Plans with
a funding surplus are presented as net assets
on the balance sheet. The defined benefit
obligations are measured at the present value
of expected future payments to be made in
respect of services provided by employees
up to the balance sheet date. Plan assets
are measured at fair value. The pension cost
charged to the income statement consists of
calculated amounts for vested benefits and
interest in addition to settle ment of gains or
losses, etc. Interest on plan assets is calculated
with the same rates as used for discounting the
obligations. Actuarial gains/losses are recog-
nised in other comprehensive income.
As employer, the Group participates in pension
plans according to normal practice in the coun-
tries in which the Group operates. Generally,
the pension plans within the Group are defined
contribution plans, where contributions are
recognised on an accrual basis in the income
statement. A number of entities have defined
benefit plans, in which retirement benefits are
based on length of service and salary level.
Specification of net liability (DKK m) United
Kingdom
2023
Other
2023
Total
2023
United
Kingdom
2022
Other
2022
Total
2022
United
Kingdom
2021
Other
2021
Total
2021
Present value of funded plans 1,539 120 1,659 1,495 140 1,635 2,356 181 2,537
Fair value of plan assets -1,539 -165 -1,704 -1,510 -194 -1,703 -2,375 -237 -2,612
Net liability of funded plans 0 -45 -45 -15 -54 -69 -19 -56 -75
Present value of unfunded plans - 55 55 - 67 67 - 65 65
Impact of minimum funding requirement/asset ceiling 4 4 8 14 5 19 17 5 21
Net liability 31 December 4 14 18 -1 18 17 -2 14 12
Of which:
Pensions, net assets 7 11 13
Pensions and similar obligations 25 28 25
In 2024, the Group expects to pay contributions totalling DKK 10m (DKK 11m) to funded defined benefit plans.
The majority of the Group’s defined benefit liabilities are in the UK. All of the plans in the UK are funded. Other defined benefit
liabilities are in Australia and Canada.
In Sweden, the Group also particiapates in the defined benefit scheme Alecta. As no information is available about the individual
participants share of this scheme, it is treated as a defined contribution plan and disclosed as part of operating costs in Note 2.2.
As well as being subject to the risks of falling interest rates, which would increase the obligation, poor asset returns and pensioners
living longer than anticipated, the Group is also subject to the risk of higher-than- expected inflation. This is because many pension
benefits, particularly in the UK plans, increase in line with inflation although some minimum and maximum limits apply.
Svitzer Group Annual Report 2023 84Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Pension and similar obligations
Note 4.2 — continued
Sensitivities for key assumptions in the UK (DKK m) Change in liability 2023
Increase
2023
Decrease
2022
Increase
2022
Decrease
Factors
Discount rate Increase/(decrease) by 25 basis points -42 44 -48 51
Inflation rate Increase/(decrease) by 25 basis points 22 -22 26 -26
Life expectancy Increase/(decrease) by 1 year 70 -71 80 -81
The sensitivity of the liabilities and pension costs to the key assumptions are as follows:
Life expectancy as at 31 December 2023 2043 2022 2042 2021 2041
65 year old male in the UK 21.4 22.7 21.1 23.0 21.0 23.0
65 year old female in the UK 24.1 25.5 24.0 25.1 24.0 25.0
Significant financial assumptions United
Kingdom
2023
Total
2023
United
Kingdom
2022
Total
2022
United
Kingdom
2021
Total
2021
Discount rate 4.5% 4.4% 4.8% 4.6% 2.0% 2.0%
Inflation rate 3.3% 3.3% 3.5% 3.4% 3.5% 3.4%
Svitzer Group Annual Report 2023 85Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Pension and similar obligations
Note 4.2 — continued
Specification of plan assets (DKK m) United
Kingdom
2023
Other
2023
Total
2023
United
Kingdom
2022
Other
2022
Total
2022
United
Kingdom
2021
Other
2021
Total
2021
Insurance contracts 1,507 - 1,507 1,454 - 1,454 2,287 - 2,287
Shares 5 55 60 9 72 81 12 88 100
Government bonds 10 42 52 13 61 74 36 74 109
Corporate bonds 10 21 31 11 - 11 11 - 11
Real estate 1 24 24 1 29 29 1 35 36
Other assets 6 23 29 21 33 54 28 40 68
Fair value 31 December 1,539 165 1,703 1,509 194 1,703 2,375 237 2,612
Rates of life expectancy reflect the most recent
mortality investigations, and in line with market
practice an allowance is made for future improve-
ments in life expectancy. The Group assumes
that future improvements will be in line with the
latest projections of 1.25% for all UK plans.
The liabilities are calculated using assumptions
that are the Group’s best estimate of future
experience bearing in mind the requirements
of IAS 19.
The Group’s plans are funded in accordance
with applicable local legislation. In the UK, each
plan has a Trustee Board that is required to act in
the best interests of plan members. Every three
years, a formal valuation of the plan’s liabilities
is carried out using a prudent basis, and if the
plan is in deficit, the Trustees agree with the
Group or the sponsoring employer on a plan for
recovering that deficit.
Around 98% of the UK liabilities are now covered
by insurance policies. Therefore, movement
in the liabilities due to change in assumptions
would equally impact the assets value related to
the buy-in policies, resulting in a reduced move-
ment in the overall balance sheet position.
No contributions to the UK plans are expected
for 2024. No contributions to the UK plans were
also expected for 2023 and 2022. In most of
the UK plans, any surplus remaining after the
last member dies may be returned to the Group.
However, the Merchant Navy Officers Pension
Fund (MNOPF) contributions paid by the
Group are not refundable in any circumstance
and the balance sheet liability reflects an adjust-
ment for any agreed deficit recovery contribu-
tions in excess of deficit determined using the
Group’s assumptions.
Svitzer Group Annual Report 2023 86Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Pension and similar obligations
Note 4.2 — continued
Change in net liability
(DKK m)
Present
value of
obligations
Fair value
of plan
assets
Adjust-
ments
Net
liability
Of which:
UK
1 January 2023 1,702 1,704 19 17 -1
Current service cost, administration cost etc. 8 -6 - 15 6
Calculated interest expense/income 74 77 2 -1 0
Recognised in the income statement in 2023 82 71 2 15 6
Actuarial gains/losses from changes in financial and
demographic assumptions, etc. 53 33 - 20 10
Adjustment for unrecognised asset due to asset ceiling - - -12 -12 -10
Recognised in other comprehensive income in 2023 53 33 -12 8 0
Contributions from the Group and employees 1 13 - -12 -
Benefit payments -152 -145 - -7 -
Exchange rate adjustments 28 29 - -1 -
31 December 2023 1,714 1,704 9 18 4
1 January 2022 2,602 2,612 22 12 -2
Current service cost, administration cost etc. 20 -7 - 26 6
Calculated interest expense/income 48 50 - -1 0
Recognised in the income statement in 2022 68 43 0 25 6
Actuarial gains/losses from changes in financial and
demographic assumptions, etc. -696 -697 - 1 -3
Adjustment for unrecognised asset due to asset ceiling - - -2 -2 -2
Recognised in other comprehensive income in 2022 -696 -697 -2 -2 -5
Contributions from the Group and employees 1 4 - -3 -
Benefit payments -178 -163 - -16 -
Exchange rate adjustments -95 -97 -1 1 0
31 December 2022 1,702 1,704 19 17 -1
Change in net liability
(DKK m)
Present
value of
obligations
Fair value
of plan
assets
Adjust-
ments
Net
liability
Of which:
UK
1 January 2021 2,675 3,032 20 -337 -381
Current service cost, administration cost etc. 12 -15 - 27 14
Calculated interest expense/income 41 48 0 -6 -6
Recognised in the income statement in 2021 53 33 0 21 8
Actuarial gains/losses from changes in financial and
demographic assumptions, etc. -136 -529 - 393 418
Adjustment for unrecognised asset due to asset ceiling - - -1 -1 3
Exchange rate adjustments - - 17 17 -
Recognised in other comprehensive income in 2021 -136 -529 16 409 421
Contributions from the Group and employees 1 36 - -35 -30
Benefit payments -180 -168 - -12 -
Exchange rate adjustments 188 208 -15 -35 -20
31 December 2021 2,602 2,612 22 12 -2
Svitzer Group Annual Report 2023 87Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Financial income and expenses
Note 4.3
(DKK m) 2023 2022 2021
Interest income on loans and receivables 160 48 31
Interest expenses on liabilities
1
-108 -44 -29
of which borrowing costs capitalised on assets
1
- 1 0
Net interest expenses 52 4 3
Exchange rate gains on bank balances, borrowings and working capital 38 73 78
Exchange rate losses on bank balances, borrowings and working capital -50 -91 -94
Net foreign exchange gains/losses -12 -19 -16
Impairment losses on financial assets - -24 -58
Reversal of impairment losses on financial assets - 18 -
Financial expenses, net
40 -22 -71
Of which:
Financial income 198 139 110
Financial expenses -159 -160 -182
1
Of which DKK 12m (2022: DKK 12m, 2021: DKK 13m) relates to interest expenses on lease liabilities.
Svitzer Group Annual Report 2023 88Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Financial instruments and risks
Note 4.4
The Group’s activities expose it to a variety of
financial risks:
• Market risks, i.e., currency risk
and interest rate risk
• Credit risk
• Liquidity risk
The Group’s overall risk management
programme focuses on the unpredictability
of financial markets and seeks to minimise
the potential adverse effects on the Group’s
financial performance.
Risk Management is carried out by a central
finance department of A.P. Moller - Maersk
under policies approved by the A.P. Møller -
Mærsk A/S' Board of Directors. The finance
department identifies, evaluates and hedges
financial risks in cooperation with the Executive
Management of Svitzer.
Market risk is the risk that changes in market
prices, such as foreign exchange rates and
interest rates, will affect the Group’s profit or
the value of its holdings of financial instruments.
The sensitivity analysis in the currency risk and
interest rate section relate to the position of
financial instruments at 31 December 2023.
The sensitivity analysis for currency risk has been
prepared on the basis that the proportion of
financial assets and liabilities in foreign curren-
cies remain unchanged from 31 December 2023.
Furthermore, it is assumed that the exchange
rate sensitivities have a symmetric impact, i.e.,
an increase in rates results in the same absolute
movement as a decrease in rates.
The sensitivity analysis shows the effect on
profit and equity of a reasonably possible
change in exchange rates.
Currency and translation risk
The Group’s currency risk relates to the fact that
the Group presentation currency is DKK while
local entities may incur expenses and earn
revenue in both DKK and a wide range of other
currencies, where the most significant curren-
cies are AUD, EUR, GBP and USD.
As net income is in DKK, this is also the primary
financing currency. Income and expenses from
other activities are mainly denominated in local
currencies, thus reducing Svitzer's exposure
to these currencies.
The Group’s sensitivity to an increase in the
DKK exchange rate of 10% against all other
significant currencies to which the Group is
exposed is estimated to have the impact of
Currency
sensitivity
for financial
instruments
(DKK m)
Profit before tax Equity before tax
2023 2022 2021 2023 2022 2021
USD 10 13 -26 10 13 -26
AUD 77 104 89 77 104 89
GBP 4 31 51 4 31 51
Other 35 46 53 35 46 53
Total 126 195 168 126 195 168
DKK 126m (2022: 195m, 2021: 168m) on profit
before tax with the correlating impact on equity
before tax. EUR is not included in the anlysis as
it is considered pegged to DKK.
The sensitivities are based only on the impact of
financial instruments that are outstanding at the
balance sheet date and are thus not an expres-
sion of the Group’s total currency risk.
Svitzer Group Annual Report 2023 89Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Financial instruments and risks
Note 4.4 — continued
Borrowings and lease liabilities by
interest rate levels (DKK m)
Carrying
Amount
0-1 year 2-4 years 5- years
2023
0-3% 95 2 93 -
3-6% 6,630 6,408 75 147
Total 6,725 6,410 168 147
Of which:
Bearing fixed interest 364
Bearing floating interest 6,361
2022
0-3% 870 828 42 -
3-6% 244 75 95 74
Total 1,114 903 136 74
Of which:
Bearing fixed interest 308
Bearing floating interest 806
2021
0-3% 790 765 26 -
3-6% 253 67 108 78
Total 1,043 832 133 78
Of which:
Bearing fixed interest 321
Bearing floating interest 722
The Group has most of its debt denominated in DKK, USD and AUD. The Group strives to maintain
a combination of fixed and floating interest rates on its net debt, reflecting expectations and risks,
bearing fixed interest rates thus resulting in minimal risk from change in interest rates.
Maturity analysis of trade receivables (DKK m) 2023 2022 2021
Receivables not due 636 545 468
Less than 90 days overdue 227 161 136
91 - 365 days overdue 21 16 9
More than 1 year overdue 7 3 2
Receivables, gross 891 724 615
Provision for bad debt -15 -11 -6
Carrying amount 876 713 608
Change in provision for bad debt (DKK m) 2023 2022 2021
1 January -11 -6 -12
Provision made -7 -7 -5
Amount used 1 - 6
Amount reversed 3 2 5
Exchange rate adjustments and others - - -
31 December -15 -11 -6
The loss allowance provision for trade receivables as at 31 December 2023 reconciles to the opening
loss allowance as follows:
Interest rate risk
Next interest rate fixing Credit risk
Svitzer Group Annual Report 2023 90Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Financial instruments and risks
Note 4.4 — continued
Liquidity Risk
Net interest-bearing debt and liquidity reserve (DKK m) 2023 2022 2021
Borrowings 6,365 831 728
Net interest-bearing debt -3,745 2,576 2,325
Cash and bank balances 318 427 436
Restricted cash -198 -329 -286
Net Cash pools 2,462 3,109 2,870
Liquidity reserve
1
2,582 3,207 3,020
For information about cash and bank balances in countries with exchange control or other restrictions, please see text to the
consolidated cash flow statement.
1
Liquidity reserve is defined as undrawn committed revolving facilities with more than one year to expiry, term deposits not
included in cash and bank balances and cash and bank balances, excluding balances in countries with exchange control or
other restrictions.
The average term to maturity of loan facilities in the Group was about less than 1 year at 31 December 2023, about 1 year at
31 December 2022, about 1 year at 31 December 2021.
The majority of the borrowings are with the parent company, A. P. Møller - Mærsk A/S that has a credit rating of BBB+.
Trade receivables
The Group has exposure to financial and com-
mercial counterparties but has no particular
concentration of customers or suppliers.
To minimise the credit risk, financial vetting is
undertaken for all major customers, adequate
security is required for commercial counter-
parties, and credit limits are set for key commer-
cial counterparties.
The Group applies the simplified approach to
providing the expected credit losses prescribed
by IFRS 9, which permits the use of the lifetime
expected loss provision for all trade receivables.
To measure the expected credit losses, trade
receivables have been grouped based on
shared credit risk characteristics and the days
past due. In accordance with IFRS 9, non-due
trade receivables have also been considered
for impairment.
Approximately 46% (2022: 26%, 2021: 29%)
of the provision for bad debt is related to trade
receivables overdue by more than one year.
Other financial assets at amortised cost
Other financial assets at amortised cost
comprise loans receivable, cash pool receivables
and other receivables. These financial assets
are considered to have low credit risk, and thus
the impairment provision calculated based on
12 months of expected losses is considered
immaterial. The financial assets are considered
to be low risk when they have a low risk of
default, and the issuer has a strong capacity to
meet its contractual cash flow obligations in the
near term.
Financial institutions
Bank balances are primarily held in relationship
banks with a credit rating of at least A-. No in-
dividual counter-partly exposure is above 10%.
Liquidity reserve
The Group in Q1 2024 is anticipated to sign
a loan agreement which comprises of a term
loan of around DKK 3,287m and a revolving
credit facility of DKK 1,379m. Combined with
the liquidity reserve of DKK 2,582m as of
31 December 2023, the Group is deemed to
have sufficient liquidity reserves to cover short
term debt obligations.
Svitzer Group Annual Report 2023 91Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Financial instruments and risks
Note 4.4 — continued
Maturities of liabilities and
commitments (DKK m)
Carrying
Amount
Cash flows including interest Total
0-1 year 2-4 years 5- years
2023
Borrowings 6,365 5,986 515 - 6,501
Lease liabilities 360 99 170 182 451
- hereof interest 14 31 46 91
Trade payables 432 432 - - 432
Other payables 265 265 - - 265
Total recognised in balance sheet 7,422 6,782 685 182 7,649
Capital commitments 291 - - 291
Total 7,073 685 182 7,940
2022
Borrowings 831 378 489 - 867
Lease liabilities 283 98 138 95 331
- hereof interest 9 19 21 49
Trade payables 366 366 - - 366
Other payables 189 189 - - 189
Total recognised in balance sheet 1,669 1,031 627 95 1,753
Capital commitments 743 24 - 767
Total 1,774 651 95 2,520
Maturities of liabilities and
commitments (DKK m)
Carrying
Amount
Cash flows including interest Total
0-1 year 2-4 years 5- years
2021
Borrowings 727 636 92 - 728
Lease liabilities 316 96 170 102 368
- hereof interest 10 20 24 54
Trade payables 413 413 - - 413
Other payables 191 191 - - 191
Total recognised in balance sheet 1,647 1,338 262 102 1,702
Capital commitments 382 131 - 513
Total 1,720 393 102 2,215
Majority of the Borrowings are with the Parent company. Where interest rate for future payments is not readily available, future
interest is calculated basis the prevalent interest rate on the last day of the year.
It is of great importance for the Group to main-
tain a financial reserve to cover the Group’s
obligations and investment opportunities and to
provide the capital necessary to offset changes
in the Group’s liquidity due to changes in the
cash flow from operating activities.
The flexibility of the financial reserve is subject
to ongoing prioritisation and optimisation,
among other things by focusing on the release
of capital and following up on the development
in working capital.
Svitzer Group Annual Report 2023 92Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Financial instruments by category
Note 4.5
(DKK m) Carrying
amount
2023
Carrying
amount
2022
Carrying
amount
2021
Carried at amortised cost
Loans receivable 2,659 3,262 2,919
Other interest-bearing receivables and deposits 3 1 1
Trade receivables 876 713 608
Other receivables (non-interest-bearing) 168 105 143
Cash and bank balances 318 427 436
Financial assets at amortised cost 4,024 4,508 4,107
Carried at fair value through other comprehensive income
Equity investments (FVOCI)
1
2 2 2
Financial assets at fair value through OCI 2 2 2
Total financial assets 4,026 4,510 4,109
Carried at amortised cost
Borrowings 6,365 831 727
Lease liabilities 360 283 316
Trade payables 432 366 413
Other payables 265 189 191
Financial liabilities at amortised cost 7,422 1,669 1,647
Total financial liabilities 7,422 1,669 1,647
1
Designated at initial recognition in accordance with IFRS 9.
The fair value for all financial assets and liabilities are deemed to equal carrying amount.
Financial instruments measured at
fair value
Financial instruments measured at fair value can
be divided into three levels:
Level 1 — Quoted prices (unadjusted) in active
markets for identical assets or liabilities
Level 2 — Inputs other than quoted prices
included within level 1 that are observable for the
asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices)
Level 3 — Inputs for the asset or liability that are
not based on observable market data
Fair value of listed securities is within level 1 of
the fair value hierarchy. Non-listed shares and
other securities are within level 3 of the fair
value hierarchy.
Fair value of derivatives is mainly within level
2 of the fair value hierarchy and is calculated
based on observable market data as of the end
of the reporting period.
Fair value of level 3 assets and liabilities is pri-
marily based on the present value of expected
future cash flows.
A reasonably possible change in the discount
rate is not estimated to affect the Group’s profit
or equity significantly.
Financial instruments carried at
amortised cost
Fair value of the short-term financial assets and
other financial liabilities carried at amortised
cost is not materially different from the carrying
amount. In general, fair value is determined
primarily based on the present value of expected
future cash flows. Where a market price was
available, however, this was deemed to be the
fair value.
Other equity investments (FVOCI)
The Group has investments in equity shares
of one non-listed company. The Group holds
non-controlling interests (between 1% and
15%) in this company. These investments were
irrevocably designated at fair value through
OCI as the Group considers these investments
to be strategic in nature.
Svitzer Group Annual Report 2023 93Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
5.1 Tax and deferred tax
5.2 Share based payments
5.3 Commitments
5.4 Contingent liabilities
5.5 Cash flow specifications
5.6 Related parties
5.7 Subsequent events
5.
Other Disclosures
Svitzer Group Annual Report 2023 94Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Tax and deferred tax
Note 5.1
Tax comprises an estimate of current and
deferred income tax as well as adjustments to
previous years taxes. Income tax is tax on tax-
able profits, and consists of corporation tax,
withholding tax of dividends, etc. In addition,
tax comprises tonnage tax. Tonnage tax is clas-
sified as tax when creditable in, or paid in lieu
of, income tax. Tax is recognised in the income
statement to the extent that it arises from items
recognised in the income statement, including
tax on gains on intra-group transactions that
have been eliminated in the consolidation.
Deferred tax is calculated on temporary dif-
ferences between the carrying amounts and
tax bases of assets and liabilities. Deferred tax
is not recognised for differences on the initial
recognition of assets or liabilities, where at
the time of the transaction neither accounting
nor taxable profit/loss is affected, unless the
differences arise in a business combination.
In addition, no deferred tax is recognised for
undistributed earnings in subsidiaries, when
Svitzer controls the timing of dividends.
No taxable dividends are currently expected.
A deferred tax asset is recognised to the extent
that it is probable that it can be utilised within
a foreseeable future.
Global Minimum Taxation (OECD Pillar II)
In an effort to end tax avoidance and to address
concerns about the erosion of the global corpo-
rate tax base, a global framework for corporate
taxation has been formed by the OECD/G20
Inclusive Framework and is supported by over 135
jurisdictions. One of the key elements is to intro-
duce a global minimum tax rate of 15%, based
on group accounting income per jurisdiction.
The minimum tax rules are designed as a hier-
archy of the right to claim income tax. If the
income is not subject to a minimum effective
tax rate of 15% in the country where it is earned,
then the remaining tax payment (top-up tax)
can be picked up in another jurisdiction where
the Group is active. For the Group, Denmark
will add top-up tax if not applied locally as the
ultimate parent entity of the Group, A. P. Møller
Holding A/S, is located in Denmark.
The Danish Implementation of Council Direc-
tive (EU) 2022/2523 of 14 December 2022 is
effective from 1 January 2024. This means that
Svitzer's income is subject to the minimum tax
rules for all jurisdictions via Danish implementa-
tion for the financial year 2024 and onwards. It is
expected that many jurisdictions will implement
similar legislation.
Because the Danish implementation covers
the Group's global activities, it is not expected
that other national implementations will have
significant additional impact to the global tax
payments of the Group. It may however have an
impact on the location where potential top-up
taxes will be paid.
Significant account estimates
Deferred tax assets, including the tax value of
tax losses carried forward are recognised to the
extent that Management assess that the tax
asset can be utilised through positive taxable
income in the foreseeable future. Assessment
is made basis the latest business plans and the
recent financial performance of the individual
entities. Net deferred tax assets recognised in
entities having recognised an accounting loss in
either the current or preceding period amount
to DKK 1.4m (DKK 13.1m). These assets mainly
relate to the unused tax losses.
Uncertain tax positions
Svitzer Group is engaged in a number of dis-
putes with tax authorities of varying scope.
Appropriate provisions and recognition of
uncertain tax positions have been made where
the probability of the tax position upheld in indi-
vidual cases is considered at least 50%. Claims
for which the probability of Svitzer Group’s tax
position being upheld is assessed by Manage-
ment to be less than 50%, are not provided for.
Svitzer Group Annual Report 2023 95Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Tax and deferred tax
Note 5.1 — continued
(DKK m) 2023 2022 2021
Tax recognised in the income statement
Current tax on profits for the year -228 -172 -155
Adjustment for current tax of prior periods -65 -23 24
Utilisation of previously unrecognised deferred tax assets - 54 39
Total current tax -293 -140 -92
Origination and reversal of temporary differences 48 -8 -11
Adjustment for deferred tax of prior periods -42 -1 -2
Adjustment attributable to changes in tax rates and laws - - 22
Recognition of previous unrecognised deferred tax assets 1 - -
Reassessment of recoverability of deferred tax assets, net - - -35
Total deferred tax 7 -9 -25
Total income tax -286 -149 -118
Tonnage and freight tax - - -
Total tax expense -286 -149 -118
Tax reconciliation
Profit/loss before tax 1,046 799 690
Profit/loss subject to Danish and foreign tonnage taxation, etc. -190 -127 -117
Share of profit/loss in joint ventures -112 -133 -121
Share of profit/loss in associated companies -17 -20 -17
Profit/loss before tax, adjusted 728 519 436
(DKK m) 2023 2022 2021
Tax using the Danish corporation tax rate (22%) -160 -114 -96
Tax rate deviations in foreign jurisdictions -24 2 -65
Effect of income taxes distinct from corporation tax -27 -39 -16
Non-taxable income -3 0 0
Non-deductible expenses 17 -14 15
Temporary diff. no deferred tax asset recognised -5 -2 0
Tax loss, no deferred tax recognised - -4 -2
Tax asset recognised 29 - -
Adjustment to previous years' taxes
1
-107 -24 22
Effect of changed tax rate - - 22
Change in recoverability of deferred tax assets 1 54 4
Other differences, net -7 -8 -3
Total income tax -286 -149 -118
Effective tax rate 40% 29% 27%
Tax recognised in other comprehensive income and equity 2 -1 76
Of which:
Current tax 2 1 -7
Deferred tax 0 -1 83
1
Adjustment to previous year taxes includes additional tax payable and correlated penalties related to recognition and utilisation
of tax losses carried forward recognised in prior years.
Towage activity is subject to various local corporate tax regimes, including tonnage tax which calcu-
lates corporate income tax based on the net tonnage of the fleet. Given the liability to tonnage tax is
not impacted by financial profits, and is payable even in loss making years, the effective tax rate (ETR)
metric can fluctuate significantly.
Svitzer Group Annual Report 2023 96Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Recognised deferred tax assets and liabilities are attributable to the following:
Tax and deferred tax
Note 5.1 — continued
(DKK m) Assets Liabilities Net liabilities
2023 2022 2021 2023 2022 2021 2023 2022 2021
Intangible Assets - - - 3 6 11 3 6 11
Property, plant and equipment 87 89 85 189 49 33 102 -40 -52
Receivables etc. - - - 9 - - 9 - -
Provisions, etc. 35 3 2 12 - - -23 -3 -2
Leases 5 4 4 0 - - -5 -4 -4
Tax loss carry forwards 252 232 207 - - - -252 -232 -207
Other 2 11 3 10 133 91 8 122 87
Total 381 339 301 223 188 135 -158 -152 -167
Offsets -43 - -1 -43 - -1 - - -
Total 338 339 300 180 188 134 -158 -152 -166
Unrecognised deferred tax assets (DKK m) 2023 2022 2021
Deductible temporary differences 18 51 52
Tax loss carry forwards 251 531 551
Unused tax credits - 1 1
Total 269 582 604
Majority of the unrecognised deferred tax assets have no significant time limitations. There are no substantial unrecognised tax
liabilities on investments in subsidiaries, associated companies and joint ventures.
Svitzer Group Annual Report 2023 97Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Tax and deferred tax
Note 5.1 — continued
Change in deferred tax, net during the year (DKK m) 2023 2022 2021
1 January -152 -166 -102
Intangible Assets -3 -6 -4
Property, plant and equipment 143 11 -
Receivables etc. 9 - -
Provisions, etc. -20 -1 -73
Leases - - -1
Tax loss carry forwards -20 -25 -24
Other -115 35 39
Recognised in the income statement -7 15 -63
31 December -158 -152 -166
Svitzer Group Annual Report 2023 98Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Share based payments
Note 5.2
Equity-settled restricted shares and share
options awarded to members of the Executive
Management and other key management per-
sonnel of Svitzer as part of A.P. Møller – Mærsk
A/S’ long-term incentive programme are recog-
nised as remuneration expense over the vesting
period as per the estimated fair value at the grant
date and result in a corresponding adjustment
to equity of A.P. Møller – Mærsk A/S.
At the end of each reporting period, A.P. Møller –
Mærsk A/S revises its estimated number of
awards that are expected to vest based on the
non- market vesting conditions and service con-
ditions. Any impact of the revision is recognised
in the income statement with a corresponding
adjustment to equity.
Restricted shares
Members of the Executive Management and
the key management personnel of Svitzer are
awarded restricted shares of A.P. Møller –
Mærsk A/S. Each restricted share granted is a
right to receive an existing B share of nominal
DKK 1,000 in A.P. Møller – Mærsk A/S.
Transfer of restricted shares is contingent upon
employee still being employed and not being
under notice of termination and takes place
when three years have passed from the date
of grant. During the vesting period, there is no
entitlement to any dividends. Special conditions
apply regarding illness, death and resignation as
well as changes in the company’s capital struc-
ture, etc. The recognised remuneration expense
related to the restricted shares plan is DKK 3m
(2022: DKK 3m, 2021: DKK 2.3m). The average
remaining contractual life for the outstanding
restricted shares as per 31 December 2023 is
1.5 years (2022: 1.2 years, 2021: 1.3 years).
Outstanding restricted shares Executive
Management
No.
Other key
management
personnel
No.
Total
No.
Total fair
value
1, 2
DKK million
1 January 2023 166 278 444
Granted 80 164 244 3
Exercised and vested
3
77 84 161
Forfeited - 42 42
Transferred
4
- 59 59
Outstanding 31 December 2023 169 257 426
1 January 2022 209 269 478
Granted 32 85 117 2
Exercised and vested
3
75 76 151
Outstanding 31 December 2022 166 278 444
1 January 2021 207 208 415
Granted 57 109 166 2
Exercised and vested
3
55 48 103
Outstanding 31 December 2021 209 269 478
1
The fair value per Restricted Stock unit (RSU) is equal to the volume weighted average share price on the date of grant i.e. 1
April 2023 (1 April 2022, 1 April 2021), adjusted for expected dividends during the vesting period. The fair value per RSU is
10,299 DKK (2022: DKK 17,466 and 2021: DKK 14,793).
2
Total fair value is at the time of grant.
3
The weighted average share price at settlement was DKK 12,732 (2022: DKK 20,372, 2021: DKK 14,793)
4
Transferred shares relate to employees who have moved from Svitzer to A.P. Møller – Mærsk A/S.
Svitzer Group Annual Report 2023 99Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Share based payments
Note 5.2 — continued
Share options plan
In addition to the restricted shares, Execu-
tive Management and other key manage-
ment personnel have a share option plan in
A.P. Møller – Mærsk A/S. Each share option
granted is a call option to buy an existing
B share nominal DKK 1,000 in A.P. Møller –
Mærsk A/S. The share options are granted
at an exercise price corresponding to 110% of
the average of the market price on the first five
trading days following the release of A.P. Møller
– Mærsk A/S’ most recent Annual Report.
Exercise of the share options is contingent upon
the option holder still being employed at the
time of vesting, which takes place when three
years have passed from the date of grant.
The share options can then be exercised when
at least three years and no more than seven
years have passed from the date of the grant.
Special conditions apply regarding illness,
death, and resignation as well as changes in
A.P. Møller – Mærsk A/S’ capital structure, etc.
The share options can only be settled in shares.
The recognised remuneration expense related
to the share option plan is DKK 2.1m (2022:
DKK 2.3m, 2021: DKK 2.1m).
The average remaining contractual life of out-
standing stock options as per 31 December
2023 is 6.2 years (2022: 6.2 years, 2021: 5.3
years) and the exercise price for outstanding
stock options as per 31 December 2023 is
DKK 7,605 to 25,096 (2022: 7,605 to 25,096,
2021: 7,605 to 13,754).
Outstanding share options Members of
the Executive
Management
No.
Other key
management
personnel and
employees
No.
Total
No.
Average
exercise
price
DKK
Total fair
value
DKK million
1 January 2023 1,241 1,361 2,602 13,452
Granted 478 213 691 13,257 9
Exercised
1
357 168 525 8,633
Forfeited - 491 491 15,327
Transfer
2
- 476 476 -
Outstanding 31 December 2023 1,362 439 1,801 14,318
Exercisable 31 December 2023 266 - 266 8,309
1 January 2022 1,448 1,455 2,903 9,873
Granted 241 296 537 25,096 10
Exercised
1
448 390 838 7,998
Outstanding 31 December 2022 1,241 1,361 2,602 13,452
Exercisable 31 December 2022 101 29 130 8,637
1 January 2021 1,235 1,128 2,363 8,670
Granted 377 466 843 13,754 14
Exercised
1
164 139 303 9,988
Outstanding 31 December 2021 1,448 1,455 2,903 9,873
Exercisable 31 December 2021 142 - 142 9,941
1
The weighted average share price at the dates of exercise of share options exercised in 2023 was DKK 12,674 (2022:
DKK 19,833, 2021: DKK 16,490).
2
Transferred shares relate to employees who have moved from Svitzer to A.P. Møller – Mærsk A/S.
Svitzer Group Annual Report 2023 100Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Commitments
Note 5.3
Newbuilding programme at 31 December 2023 (DKK m) 2024 Total
Vessels (number of assets) 10 10
Capital commitment relating to newbuildings 291 291
Newbuilding programme at 31 December 2022 (DKK m) 2023 2024 Total
Vessels (number of assets) 21 2 23
Capital commitment relating to newbuildings 743 24 767
Newbuilding programme at 31 December 2021 (DKK m) 2022 2023 Total
Vessels (number of assets) 8 6 14
Capital commitment relating to newbuildings 375 131 506
Lease commitments (DKK m)
2023
Within one year 4
Total 4
2022
Within one year 10
Total 10
2021
Within one year 17
Between two and five years 8
Total 25
Capital commitments (DKK m) Total
2023
Capital commitments relating to acquisi-
tion of non-current assets 291
Total capital commitments 291
2022
Capital commitments relating to acquisi-
tion of non-current assets 767
Total capital commitments 767
2021
Capital commitments relating to acquisi-
tion of non-current assets 513
Total capital commitments 513
Commitments
Short-term and low-value leases
As part of the Group’s activities, customary
agreements are entered into regarding the
charter and operating leases of vessels, port
facilities, etc.
Capital Commitments
Capital commitment of DKK 291m (2022:
767m, 2021: 513m) primarily relate to
investments of 10 (2022: 23, 2021: 14)
new building vessels.
Svitzer Group Annual Report 2023 101Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Class of contingent liabilities (DKK m) 2023 2022 2021
External guarantees 6 6 5
Disputed cases-claims and litigations 87 84 76
Liabilities jointly liable with other venturers of joint ventures 9 - 2
Tax issues 45 46 51
Contingent liabilities 147 136 134
Contingent liabilities
Note 5.4
(DKK m) 2023 2022 2021
Change in working capital
Inventories -7 -36 -23
Trade receivables -182 -106 -58
Trade payables 55 -44 -1
Other working capital movements 29 - -22
Exchange rate adjustment of working capital -9 -18 27
Total -113 -205 -77
Purchase of intangible assets and property, plant and equipment
Purchase of intangible assets - -20 -23
Purchase of property, plant and equipment, own -1,490 -1,119 -918
Cost of property, plant and equipment, leased - - -
Change in payables to suppliers regarding purchase of assets 25 -15 -3
Capitalised borrowing costs - 1 -
Total -1,465 -1,153 -944
Cash flow specifications
Note 5.5
Cash flow from operating activities includes all
cash transactions other than cash flows arising
from investing and financing activities such as
investments and divestments, received divi-
dends, principal payments of loans, instalments
on lease liabilities, paid and received financial
items and equity transactions. Capitalisation of
borrowing costs is considered as a non-cash
item, and the actual payments of these borrowing
costs are included in cash flow from financing.
Cash and cash equivalents comprise cash and
bank balances net of bank overdrafts where
overdraft facilities form an integral part of
Svitzer’s cash management.
The Group is involved in several legal cases, tax,
and other proceedings arising in the ordinary
course of business, which are subject to inherent
uncertainty. Disputed cases include ongoing
unsettled lawsuits, tax issues refer to ongoing
tax disputes with tax authorities. Management
continuously assesses the risks associated with
the cases and disputes, and their likely outcome.
It is the opinion of Management that, apart from
items recognised in the financial statements,
the outcome of these cases and disputes are
not probable or cannot be reliably estimated
in terms of amount or timing. The Group does
not expect these to have a material impact
on the consolidated financial statements.
Tax may crystallise on repatriation of dividends.
Through participation in a joint taxation scheme
with A.P. Møller Holding A/S, the Danish com-
panies are jointly and severally liable for taxes
payable, etc., in Denmark.
Svitzer Group Annual Report 2023 102Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Related parties
Note 5.6
(DKK m) Controlling parties Associated companies Joint Ventures
2023 2022 2021 2023 2022 2021 2023 2022 2021
Income statement
Revenue 663 534 454 - - - - - -
Operating costs -52 -96 -178 - - - - - -
Financial items 88 13 1 - - - - - -
Other -25 -27 -29 - - - - - -
Assets
Loans receivable, non-current 58 56 - - - - - - -
Trade receivables 99 76 57 - - - - - -
Loans and other receivable, current 2,593 3,188 2,870 - - - - - -
Cash and bank balances 12 1 0 - - - - - -
Liabilities
Bank and other credit institutions, etc, non- current 486 459 88 - - - - - -
Bank and other credit institutions, etc, current 5,745 347 635 - - - - - -
Trade payables 5 3 61 - - - - - -
Other 12 8 2 - - - - - -
Purchase of property, plant and equipment, etc, - - - - - - -112 - -
Sale of companies, property, plant and equipment, etc, 178 - - - - - - - -
Capital Increase - - 37 - - - - -9 -
Dividends earned - - - 15 10 6 163 121 107
Dividends distributed -6,200 -13 -11 - - - - - -
Reference is made to Note 2.2 for the remuneration to the Executive Management and other key management personnel and
Note 5.2 for share options and restricted shares.
A.P. Møller – Mærsk A/S, Copenhagen Denmark has control over the company and prepares consolidated financial statements.
A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond til almene Formaal is the ultimate owner.
Svitzer Group Annual Report 2023 103Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Subsequent events
Note 5.7
On 8 February 2024, A.P. Møller – Mærsk A/S
announced that it has decided to initiate a
seperation of Svitzer through a demerger and
a separate public listing of Svitzer on Nasdaq
Copenhagen A/S following the anticipated
signing and publication of statutory demerger
documents on or around 22 March 2024. The
Board of Directors of A.P. Møller – Mærsk A/S
intends to propose the demerger for approval by
the A.P. Møller – Mærsk A/S shareholders at an
extraordinary general meeting expected to be
held on 26 April 2024. The anticipated first date
of trading for the shares of Svitzer Group on
Nasdaq Copenhagen is on 30 April 2024.
Svitzer Group Annual Report 2023 104Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Company Overview
Company Country of
incorporation
Owned
share
(in %)
Subsidiaries
Adsteam Agency Pty. Ltd. Australia 100
Adsteam Agency (PNG) Ltd. Papa New Guinea 100
Adsteam Marine Pty. Ltd. Australia 100
Em. Z. Svitzer A/S Denmark 100
Felixarc Marine Ltd. United Kingdom 100
OOO Svitzer Sakhalin Terminal Towage Russian Federation 100
P/F Svitzer Faroe Islands Faroe Islands 100
Port Towage Amsterdam B.V. Netherlands 100
Svitzer Africa Pty. Ltd. South Africa 100
Svitzer Americas Company S.A. Panama 100
Svitzer Americas Terminal Towage, S.A. Panama 100
Svitzer Angola Lda Angola 60
Svitzer Angola Shipowners BVI Ltd. British Virgin Islands 60
Svitzer Argentina S.A.U. Argentina 100
Svitzer Asia Pte. Ltd. Singapore 100
Svitzer Australasia Group Limited Partnership Australia 100
Svitzer Australasia Holdings Pty. Ltd. Australia 100
Svitzer Australasia Services Pty. Ltd. Australia 100
Svitzer Australia Pty. Ltd. Australia 100
Svitzer Bahamas Ltd. Bahamas 100
Svitzer Bahrain WLL Bahrain 100
Svitzer Brasil Serviços Marítimos Ltda. Brazil 100
Svitzer Canada Ltd. Canada 100
Svitzer Caribbean A/S Denmark 100
Svitzer Contracting Pty Limited Australia 100
Svitzer Costa Rica S.A. Costa Rica 100
Svitzer Egypt LLC Egypt 86
SVITZER EuroMed B.V. Netherlands 100
SVITZER Europe Holding B.V. Netherlands 100
Svitzer Georgia LLC Georgia 100
Svitzer Growth Projects Pty Ltd Australia 100
Svitzer Hazira Pvt. Ltd. India 100
Svitzer Hellas Maritime Company Greece 100
Svitzer Idku SAE Egypt 80
Company Country of
incorporation
Owned
share
(in %)
Svitzer India Pvt. Ltd. India 100
Svitzer Joint Ventures Pty. Ltd. Australia 100
Svitzer Latin Americas B.V. Netherlands 100
Svitzer Liberia LLC Liberia 100
Svitzer Marine Ltd. United Kingdom 100
Svitzer Mexico S.A. de C.V. Mexico 100
Svitzer Middle East Ltd. British Virgin Islands 100
Svitzer Netherlands BV Netherlands 100
Svitzer Panama Inc. Panama 100
Svitzer Peru S.A. Peru 100
SVITZER PNG Limited Papa New Guinea 100
SVITZER Sakhalin B.V. Netherlands 100
Svitzer Sakhalin Limited Liability Co. Russian Federation 100
Svitzer Salvage Holding A/S Denmark 100
Svitzer Sohar LLC Oman 85
Svitzer Sur LLC Oman 70
Svitzer Sverige AB Sweden 100
Svitzer Tanger Med Morocco 70
Svitzer Terminals Australia Pty Limited Australia 100
Svitzer Terminals Limited United Kingdom 100
Svitzer Towage A/S Denmark 100
Svitzer Towage GmbH Germany 100
SvitzerWijsmuller Halul LLC* Qatar 100
Wijsmuller Groningen B.V. Netherlands 100
Wijsmuller Salvage & Towage Argentina S.A.* Argentina 100
Joint Ventures
Adstan Tug Charters (Partnership) Australia 50
Batangas Bay Towage, Inc Philipines 40
Bowen Towage Services Pty. Ltd.* Australia 50
Caribbean Tug & Barge S.A Panama 50
Caucedo Marine Service S.A. (St. Lucia branch) Saint Lucia 50
Caucedo Marine Service S.A. (St. Kitts) Saint Kitts and Nevis 50
Caucedo Marine Service, S.A. Panama 50
Company Country of
incorporation
Owned
share
(in %)
Caucedo Marine Service, S.A. (DR Branch) Dominican Republic 50
Caucedo Marine Service, S.A.
(USVI Branch)
United States Minor
Outlying Islands 50
Coastal Tug & Barge Pty. Ltd. Australia 50
Halifax Marine Towing General Partnership Canada 50
Halifax Marine Towing Limited Partnership Canada 50
Nakilat Svitzerwijsmuller Company W.L.L. Qatar 30
Point Tupper Towing General Partnership Canada 50
Point Tupper Towing Limited Partnership Canada 50
Port Lincoln Tugs Pty. Ltd. Australia 50
RiverWijs Burrup Pty. Ltd. Australia 50
Riverwijs Pty. Ltd. Australia 50
Riverwijs-Dampier Pty. Ltd. Australia 50
Shenzhen Dapeng Svitzer Towage Company Ltd. China 49
Svitzer Alireza Saudi Arabia Limited Saudi Arabia 50
SVITZER Barbados Ltd Barbados 50
Svitzer Caribbean Dominicana S.A.S Dominican Republic 50
Svitzer Caribbean Harbour Services, S.A. Panama 50
Svitzer Haiti S.A. Haiti 35
Yantian Svitzer (Huizhou) Towage Company Ltd. China 44
Associated companies
Cenertech Svitzer Marine Service
(Gunagdong) Co. Ltd. China 49
CNOOC Zhuhai Shipping Services Co. Ltd China 29
Qingdao Port Svitzer Towage Co. Ltd China 45
* Refers to entities in liquidation
Svitzer Group Annual Report 2023 105Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Governance
Executive Management
Board of Directors
Svitzer Group Annual Report 2023 106Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Svitzer Group Annual Report 2023 107Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
CVR No 33 77 12 31
Independent Auditor’s Report
Svitzer Group Annual Report 2023 108Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
A
ASD: Azimuth Stern Drive tug.
C
CAPEX or Gross CAPEX: CAPEX or Gross capital
expenditure refers to cash payments for intangible assets
and property, plant and equipment, excluding acquisi-
tions and divestments.
Calculated as (Frontline Learning Teams/No. of
serious + HiPo events) x 100: All reported incidents to
HMS are monitored for the actual severity and potential
severity against the company safety risk matrix to assess
for high-risk classifications. When it is likely that severe
or fatal consequences were only avoided due to (i) slight
differences in the work context normally present, (ii)
dependence on one or week risk controls, and (iii) pres-
ence of luck rather than effective risk control, then less
serious incidents are recorded as High Potential events.
Once the classification is confirmed, a frontline learning
team is planned and carried out with actions tracked
to completion. Exemptions for legal privilege, external
threat related and significant access challenges.
Calculated as Compliant Vessels/Valid Vessels:
For vessel and crew safety we monitor the amount and
type of drills completed on a monthly basis against the
procedural requirements of the Svitzer Drill Matrix.
If SOLAS mandatory drills (fire, abandon ship and MOB)
are not completed on time, the score will be 0 regardless
of other completed drills.
Definition of
Terms
Calculated as Actions Closed on time / All Actions
Due: The KPI measures on-time action closure rate
against all HMS system generated actions including
audit actions, safety meeting actions, and event improve-
ment actions (except categories; workflow and vessel
reoccurring actions). The KPI is a percentage of actions
closed prior to or on the action due date against all
generated valid system actions that have reached or
passed the assigned due date.
Calculated as Compliant Vessels/Valid Vessels:
Vessels must be attended by leaders or management on
a monthly basis to engage and discuss safety. The KPI
tracks basis of procedural requirements.
Change in Net Working Capital: The movement
between the opening and closing balances in a period
for inventory, trade receivables, other receivables, trade
payables, other payables and any gains/losses with
respect to working capital adjusted for non-cash and
cash movement within the period.
CO
2
Intensity Reduction: The reduction percentage
of carbon intensity (gCO
2
e/kWh) that Svitzer A/S has
realised compared to baseline year 2020 (129.62).
E
EBIT: Earnings Before Interest and Taxes.
EBITDA: Earnings Before Interest, Taxes, Depreciation
and Amortisation.
EBITDA Margin: EBITDA divided by Revenue.
F
Free cash flow: Cash flow from operation activities,
purchase-sale of intangible assets and property, plant
and equipment, dividends received, repayments of lease
liabilities, financial payments and financial expenses paid
on lease liabilities.
FTE or average number of employees: The number
of all equivalent full time employees (both onshore
and offshore) employed by the Svitzer Group and its
subsidiaries for a relevant financial period.
G
Gross profit: The sum of revenue, less variable costs
and loss on debtors.
Growth CAPEX: CAPEX predominantly related to
growth.
H
Harbour Towage: A towage service by tugboats to
vessel owners or operators at various ports and harbours.
I
Invested capital: Segment operating assets less
segment operating liabilities, including investments and
deferred taxes related to the operation.
L
ListCo: The company that will be incorporated upon
final approval by the shareholders of A.P. Møller – Mærsk
A/S of the separation and demerger of the towage and
marine services activities by contribution of A.P. Møller
– Mærsk A/S’ holding of shares in Svitzer A/S including
its direct and indirect subsidiaries as well as certain other
assets and liabilities to a newly incorporated Danish
limited liability company to be named Svitzer Group A/S.
Lost Time Injury Frequency rate (LTIF): Calculated
as (Number of LTI/Exposure Hours Reported) x 1m. LTI
is a work-related injury, which is classified as a fatality,
life altering injury (LAI) or lost workday case (LWC) that
results in a person being unfit for work on the day after
or shift after the day of occurrence of the occupational
injury. This ‘day’ includes rest days, weekends, leave
days, public holidays or days after ceasing employment.
Fatalities, LAI and LWCs are included in LTI reporting.
Exposure Hours are work hours for employees recorded
within Svitzer Harmonised Management System and is
used as the base for calculating this metric. The metric
excludes associated companies.
N
Net interest-bearing debt: Equals interest-bearing
debt, including lease liabilities less cash and bank
balances as well as other interest bearing assets.
R
Return on equity after tax: Calculated as the profit/
loss for the year divided by the average equity as at end
of current year and prior year.
Return on invested capital after tax (ROIC): Profit/
loss before financial items for the year (EBIT) less tax
on EBIT divided by the average invested capital, last
12 months.
Revenue Growth: Increase in revenue over a financial
period.
T
Terminal Towage: A towage service by tugboats
dedicated to a specific terminal.
Total Recordable Incident Frequency rate (TRIF):
Calculated as (Number of TRC/Exposure Hours
Reported) x 1m. Total Recordable cases are the sum of
fatalities, life altering injuries (LAI), lost workday cases
(LWC), restricted work cases (RWC) and medical
treatment cases (MTC). Exposure Hours are the work
hours for employees recorded within HMS which is
used as the base for calculating this metric. The metric
excludes associated companies.
Tug Jobs (Harbour Towage) (‘000): The number of
harbour towage tug jobs performed by the Svitzer Group
in a relevant financial period.
Technical terms, abbreviations and definitions
of key figures and financial ratios.
Svitzer Group Annual Report 2023 109Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Forward-looking statements – risks and
uncertainties
This annual report contains forward-looking
statements. Forward-looking statements are
statements that are not historical facts and that
can be identified by words such as “believe”,
“expect”, “anticipate”, “intends”, “estimate”,
“will”, “may”, “continue”, “should”, and similar
expressions. The forward-looking statements
in this annual report are based upon various
assumptions, many of which are based, in turn,
upon further assumptions.
Although Svitzer believes that these assump-
tions were reasonable when made, these
assumptions are inherently subject to signifi-
cant known and unknown risks, uncertainties,
contingencies and other important factors
which are difficult or impossible to predict and
are beyond its control. These factors include
general economic and business conditions,
changes in exchange rates, demand for Svitzer’s
services, competitive factors within the global
towage industry, operational issues in one or
more of the company’s markets and regions,
and uncertainties regarding the purchase and
divestment of businesses.
See also the annual report’s Risk Management
section on pages 50.
Phone: (+45) 39 19 39 19
CVR. Number 43 26 60 12
Established on 3 March 1833
Registered in the municipality
of Copenhagen
Designations
The Svitzer Group,
Svitzer, the Company,
and Svitzer A/S
consolidated with its subsidiaries
and associated companies
are used interchangeably.
Published by Svitzer A/S
Design and layout by
e-Types A/S
Svitzer Group Annual Report 2023 110Executive Summary Performance Sustainability Governance Financial StatementsTowage and Marine Services
Svitzer A/S
Sundkrogsgade 17
2100 Copenhagen Ø
+45 39 19 39 19
CVR 43266012
svitzer.com
info@svitzer.com
Svitzer A/S
Sundkrogsgade 17
DK-2100 Copenhagen
CVR 43266012
2023
PARENT
COMPANY
FINANCIAL STATEMENTS
page 113
113
page 114
CONTENTS
INCOME STATEMENT
115
BALANCE SHEET AT 31ST OF DECEMBER
116
STATEMENT OF CHANGES IN EQUITY
118
NOTES - CONTENTS
119
page 115
INCOME STATEMENT
Amounts in DKK thousand
Note
2023 2022
Revenue
257,146 234,198
Other income
810 4,330
2
Staff costs
-123,793 -103,261
Other external expenses
-177,732 -143,785
Loss before depreciation, amortisation and impairment losses, etc.
-43,569 -8,518
6
Depreciation, amortisation and impairment losses
-21,237
-8,249
Loss before financial items
-64,806 -16,767
Dividends received from subsidiaries
517,310 102,752
Impairment of financial assets*
- -2,513
3
Financial income
24,907 55,334
3
Financial costs
-1,555 -1,241
Profit before tax
475,856 137,565
4
Tax
16,092 -5,305
5
Profit for the year
491,948 132,260
Appropriation of profit for the year is disclosed in note 5
page 116
BALANCE SHEET AT 31 DECEMBER
Assets at 31 December
Amounts in DKK thousand
Note
2023 2022
Intangible Fixed Assets
Completed development projects
31,259 32,995
In progress development cost
- 19,501
6
Total intangible fixed assets
31,259 52,496
Property, plant and equipment
Production facilities and equipment, etc.
- -
6
Total property, plant and equipment
- -
Financial non-current assets
Investments in subsidiaries*
10,810,952 10,814,413
7
Total financial non-current assets
10,810,952 10,814,413
Receivables
Trade receivables
113 -
Receivables from group enterprises
309,674 391,851
Receivables from subsidiaries
188,882 161,021
Receivables from joint ventures
246 267
Other receivables
- 193
Prepayments
7,369 12,859
Total receivables, etc.
506,284 566,191
Total current assets
506,284 566,191
Total assets
11,348,494 11,433,100
* 2022 restated as per disclosure
page 117
BALANCE SHEET AT 31 DECEMBER
Liabilities at 31 December
Amounts in DKK thousand
Note
2023 2022
8
Share capital
420,953 420,953
Reserve for development costs
24,383
,
40,947
Retained earnings *
5,234,168 10,925,656
Total equity
5,679,504 11,387,556
Current liabilities
Payables to subsidiaries
4,900 2,538
Payables to group enterprises
5,609,364 3,912
Current tax payables joint tax
- 10,676
Trade payables
9,050 4,915
9
Other payables
45,676 23,502
Total current liabilities
5,668,990 45,543
Total liabilities
5,668,990 45,543
Total equity and liabilities
11,348,494 11,433,099
* '2022 restated as per disclosure
page 118
STATEMENTS OF CHANGES IN EQUITY
Amounts in DKK thousand
Equity 1 January 2023
420,953 40,947 10,925,656 11,387,556
Extraordinary dividend
- - - 6,200,000 - 6,200,000
Profit/loss for the year
- - 16,564 508,512 491,948
Equity 31 December 2023
420,953 24,383 5,234,168 5,679,504
Equity 1 January 2022
420,953 32,170 8,940,153 9,393,276
Adjustment to opening 1 January 2022
- - 1,862,020 1,862,020
Adjusted equity 1 January 2022
420,953 32,170 10,802,173 11,255,296
Profit/loss for the year
- 8,777 123,483 132,260
Equity 31 December 2022
420,953 40,947 10,925,656 11,387,556
Share capital
The Company’s share capital amounts to DKK 420,953 thousand with shares of DKK 250 or multiples hereof.
Share
capital
Retained
earnings
Total
equity
Reserve for
development
costs
Share
capital
Reserve for
development
costs
Retained
earnings
Total
equity
page 119
NOTES
Contents
Page
1
Accounting policies 120
2
Staff costs 12
3
Financial income and expenses 14
4
Tax 14
5
Appropriation of profit/loss 14
6
Intangible Fixed Assets and Property, plant and equipment 15
7
Investments in subsidiaries 16
8
Share capital 18
9
Other payables 18
10
Commitments and contingent liabilities, etc. 19
11
Related parties 19
page 120
1 Accounting policies
Basis of preparation
Recognition and measurement
Translation policies
All expenses incurred to achieve the earnings for the year are recognised in the income statement.
Assets are recognised when it is probable that future economic benefits attributable to the asset will flow to the Company and
the value of the asset can be measured reliably.
• Reduction in Impairment Loss: The carrying amount of the impaired asset has been increased by DKK 1,862 million.
There has not been made any changes to the accounting policies applied.
Recognition and measurement take into account any predictable losses and risks occurring before the presentation of the
annual report which confirm or invalidate affairs and conditions existing at the balance sheet date.
Danish Kroner is used as the measurement currency. All other currencies are regarded as foreign currencies.
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due
to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and
expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value
adjustments are recognised directly in equity.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are
translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet
date and the transaction date rates are recognised in financial income and expenses in the income statement. Fixed assets
acquired in foreign currencies are measured at the transaction date rates.
The financial statements for 2023 are presented in Danish Kroner.
Revenue is recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities
measured at fair value or amortised cost are recognised.
The financial statements for Svitzer A/S (‘the Company’) for 2023 have been prepared in accordance with the Danish Financial
Statements Act for enterprises of reporting class C (medium).
In accordance with section 86, par. 4 of the Danish Financial Statements Act, the Parent Company does not prepare a cash flow
statement, as the Company and its subsidiaries are included in the consolidated cash flow statements of Svitzer Group.
With reference to section 96(3) of the Danish Financial Statements Act and to note for fees to the statutory auditors included in
the consolidated financial statements of Svitzer Group, the Company has decided not to disclose the fees to statutory auditors.
During the fiscal year 2023, we identified an oversight in the recognition of impairment losses in our financial statements for the
prior years, which necessitates the correction of our financial records to accurately reflect the impairment reversal. Specifically, it
has come to our attention that an impairment loss recognised in prior periods should have been reversed in the opening balance
of the comparison year. The nature of this and its impact on Svitzer A/S's financial statements are elaborated upon in the
subsequent sections of this disclosure.
The adjustment primarily relates to the recovery of the asset's initial cost value exceeding previous estimates and improved
economic conditions leading to a reassessment of impairment indicators related to investments in subsidiaries. The previous
assessment led to an understatement of the carrying amount of the impaired assets and a corresponding understatement of
equity.
As a result, Svitzer A/S have restated the financial statements for the prior years.The impact of this correction on the financial
statements is as follows:
• Increase in Equity: The restatement resulted in an increase in retained earnings for the prior years, by DKK 1,862 million.
Liabilities are recognised when it is probable that future economic benefits will flow out of the Company and the value of the
liability can be measured reliably.
Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item
below.
page 121
Incentive schemes
Revenue
Other external expenses
Staff expenses
Amortisation, depreciation and impairment losses
Financial income and expenses
Tax on profit/loss for the year
Revenue from the sale of services is recognised in the income statement when transfer of risk to the buyer has been made
before year end.
Revenue comprise of management fee and is recognised if delivery and transfer of risk took place before end of year.
The Company is jointly taxed with the Danish entities within the A.P. Møller - Mærsk Group as well as A. P. Møller Holding A/S.
The tax effect of the joint taxation with the subsidiaries is allocated to Danish enterprises showing profits or losses in proportion
to their taxable incomes (full allocation with credit for tax losses). The jointly taxed enterprises have adopted the on-account
taxation scheme.
Revenue is recognised exclusive of VAT and net of discounts relating to sales.
Other external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office
expenses, etc.
Staff expenses comprise wages and salaries as well as payroll expenses.
Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and
property, plant and equipment.
Financial income and expenses are recognised in the income statement at the amounts relating to the financial year.
Tax for the year consists of current tax and deferred tax for the year. The tax attributable to the profit for the year is recognised in
the income statement, whereas tax attributable to equity transactions is recognised directly in equity. Any changes in deferred
tax due to changes to tax rates are recognised in the income statement.
The value of share option plans offered to the Executive Board and a number of senior employees is recognised as an expense
in the income statement based on the intercompany charge invoiced from the Parent Company. The most significant conditions
of the plans are disclosed in the notes.
page 122
Intangible fixed assets and property, plant and equipment
Impairment of intangible fixed assets and property, plant and equipment
Investments in subsidiaries
Receivables
Prepayments
Provisions
Deferred tax assets and liabilities
Current tax receivables and liabilities
Financial liabilities
Deferred income
Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value which corresponds to
nominal value less provisions for bad debts. Provisions for bad debts are determined on the basis of an individual assessment of
each receivable.
Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest.
Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Company has
a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation.
Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use
of the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected
to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax
entity. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the
balance sheet date when the deferred tax is expected to become current tax. Any changes in deferred tax due to changes to tax
rates are recognised in the income statement.
Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted
for tax on taxable incomes for prior years and tax paid on account.
Intangible fixed assets, and property, plant and equipment are measured at cost less accumulated depreciation and less any
accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until
the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-
line basis over the expected useful lives of the assets, which are:
Development projects 5 years
Other fixtures and fittings, tools and equipment 3-7 years
The carrying amounts of intangible assets and property, plant and equipment are reviewed on an annual basis to determine
whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is
written down to its lower recoverable amount.
Fixed interest loans, such as mortgage loans and loans from credit institutions, are recognised initially at the proceeds received
net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost and the difference between the
proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period. Other debts
are measured at amortised cost substantially corresponding to nominal value.
Deferred income comprises payments received in respect of income in subsequent years.
Investments in subsidiaries are measured at cost or a lower value in use.
In the event the cost exceeds the recoverable amount, a write-down is made to this lower value. Indications of impairment exists
for example when the cost exceeds the accumulated earnings since the acquisition or when the cost exceeds the net asset
value of the investment. Recoverable amount used is the highest value of the expected new sales price and capital value.
Capital value is determined as the present value of the net cash flow from the possession of the individual subsidiary.
Impairment and any subsequent reversal of previous years impairment is recognised in the income statement as
reversal/impairment of financial assets.
Dividends from subsidiaries are recognised as income at the time of declaration. On disposal of such investments, the difference
between net disposal proceeds and their carrying amounts is included in profit or loss.
page 123
2 Staff costs
Amounts in DKK thousand
2023 2022
Wages and salaries 115,973 97,020
Pension costs, defined contribution plans 7,294 5,742
Other social security costs 526 499
Total remuneration 123,793 103,261
Average number of employees 106 87
Share-based payment
Restricted shares plan
Share option plans
In addition to the plan described above, there is a share option plan for employees. Each share option granted is a call option to
buy an existing B share of nominal DKK 1,000 in A.P. Møller - Mæersk A/S.
The share options are granted at an exercise price corresponding to 110% of the average of the market price on the first five
trading days following the release of A.P. Møller - Mæersk A/S’ Annual Report. Exercise of the share options is contingent upon
the option holder still being employed at the time of exercise. The share options can be exercised when at least three years and
no more than seven years have passed from the time of grant. Special conditions apply regarding illness, death and resignation
as well as changes in the company’s capital structure, etc.
The share options can only be settled in shares. A part of A.P. Møller - Mæersk A/S’ holding of own B shares will be used to
meet the company’s obligations in respect of the share option plans.
The restricted shares plan was introduced in 2013 and grants have been awarded to employees on a yearly basis since 2013.
The transfer of restricted shares is contingent upon the employee still being employed and not being under notice of termination
and takes place when three years have passed from the time of granting.
Employees are not entitled to any dividends during the vesting period. Special conditions apply regarding illness, death and
resignation as well as changes in the company’s capital structure, etc. A part of A.P. Møller - Mærsk A/S’ holding of own B
shares will be used to meet the company’s obligations in connection with the restricted shares plan.
In terms of valuations of the restricted share plan (fair-, weighthed- and totals), we refer to note 5.2 in the consolidated Financial
Statement for Svitzer Group.
page 124
2 Staff costs (continued)
Remuneration awarded
Amounts in DKK thousand
Executive Management
2023 2022
Fixed base Salary 5,360 5,078
Short-term cash incentive
2,438 2,833
Long-term share-based incentives 2,252 1,384
Total 10,050 9,295
In terms of valuations of the share option plan (fair-, weighted- and totals), we refer to note 5.2 in the consolidated Financial
Statement for Svitzer Group.
Management remuneration 2023
The table below shows the 2023 financial impact of remuneration awarded to the members of the Executive Management in
aggregate.
The Executive Management participates in share-based incentive schemes, we refer to note 5.2 in the consolidated Financial
Statement for Svitzer Group
page 125
3 Financial income and expenses
Amounts in DKK thousand
2023 2022
Intercompany part of financial income
24,907 55,334
Intercompany part of financial expenses
-1,555 -1,241
4 Tax
Amounts in DKK thousand
2023 2022
Tax recognised in the income statement
16,090 -5,305
Total
16,090 -5,305
Of which:
Current tax
2,604 -10,676
Withholding tax
-241 -1,973
Tax adjustment previous years
13,727 7,344
5 Appropriation of Profit/loss
Amounts in DKK thousand
2023 2022
Proposed Dividend
- -
Reserve for development costs
16,564- 8,777
Retained earnings
508,512 123,483
Total
491,948 132,260
The Company has in December 2023 distributed DKK 6.200 million in extraordinary dividend to the shareholder.
page 126
6 Intangible Fixed Assets and Property, plant and equipment
Amounts in DKK thousand
Cost
1 January 2023
Addition
Transfer
Disposal
31 December 2023
Depreciation and impairment losses
1 January 2023
Transfer -
Depreciation
Disposal
Impairment
31 December 2023
Carrying amount 31 December 2023
Cost
1 January 2022
Addition
Transfer
Disposal
31 December 2022
Depreciation and impairment losses
1 January 2022
Transfer
Depreciation
31 December 2022
Carrying amount 31 December 2022
Completed development
projects
In progress development
cost
Machinary, plant and
equipment etc.
-
-
-
55,325
19,501
29,554
19,501
15,146-
-
29,446-
19,501-
-
59,679
-
108
-
-
21,237
-
-
22,330
-
29,554
-
-
-
15,146-
-
29,446-
31,259
-
-
28,421
-
108
-
55,325
29,554
-
-
-
55,325
55,325-
-
55,325
19,501
29,554
-
19,501
-
14,081
14,081-
-
-
14,081
29,554
32,995
19,501
-
22,330
-
29,554
8,249
-
-
page 127
7 Investments in subsidiaries
Amounts in DKK thousand
Cost
1 January 2023
Addition
Disposal
31 December 2023
Impairment
1 January 2023
Impairment
Reversal of impairment losses
31 December 2023
Carrying amount 2023
Cost
1 January 2022
Addition
Disposal
31 December 2022
Impairment
1 January 2022 *
Impairment
31 December 2022
Carrying amount 2022
* Correction of prior years impairment - refer to note 1.
10,837,325
10,837,325
-
-
Investment in subsidiaries
Total
- 3,461
3,461-
10,833,864
10,833,864
22,912
22,912
-
-
-
-
10,837,325
10,837,325
-
-
-
-
22,912
22,912
10,810,952
10,810,952
-
10,837,325
10,837,325
22,912
22,912
10,814,413
10,814,413
20,399
20,399
2,513
2,513
page 128
7 Investments in subsidiaries and other equity investments (continued)
Directly owned subsidiaries
SVITZER Americas Company S.A. 100% N/A N/A
SVITZER Asia Pte. Ltd.
(2021)
100% 51.4 619.8
SVITZER Towage A/S 100% 118.9 2,291.5
SVITZER Australasia Holdings Pty. Ltd. 100% N/A N/A
SVITZER Europe Holding BV 100% 118.0 4,052.8
Svitzer Middle East Limited
(2021)
100% 55.5 660.1
SVITZER Africa (Pty) Ltd.
(2021)
100% 0.5 0.3
Svitzer Angola Lda. 60%* N/A N/A
Svitzer Salvage Holding A/S 100% 76.0 1,723.5
* Including 50% ownership through Svitzer Africa Pty. Ltd.
The Netherlands
British Virgin Islands
South Africa
Angola
Only subsidiaries of direct ownership have been disclosed. All subsidiaries are consolidated in the Svitzer Consolidated Financial
Statements for 2023.
Profit/loss for the period and equity are disclosed as per latest official financial statements in accordance with the requirements
in the Danish Financial Statements Act. Not available ('N/A') indicates that no official financial statements are required to be
prepared.
Denmark
Panama
Singapore
Denmark
Australia
Country of
incorporation
Owner- ship
Profit/loss
for the period (2022)
DKK '000
Equity
DKK '000
page 129
8 Share capital
9 Other payables
Amounts in DKK thousand
2023 2022
Accrued staff cost
19,323 15,755
Other payables, external
26,352 7,748
Total
45,676 23,503
Of which:
Classified as non-current - -
Classified as current 45,676 23,502
Shareholders who own more than 5% pursuant to section 104 in the Danish Financial Statements Act. - A.P. Møller – Mærsk
A/S, Copenhagen (100%)
Svitzer A/S is included in the 2023 consolidated financial statements of A.P. Møller – Mærsk A/S and A.P. Møller Holding A/S
who hold a controlling interest.
page 130
10 Commitments and contingent liabilities, etc.
Commitments
Commitments
Contingent liabilities
Other financial obligations
Guarantees amount to DKK 5.600 thousand (DKK 5.600 thousand in 2022).
11 Related parties
Svitzer A/S is jointly taxed with the Danish companies in the A.P. Møller ‐ Mærsk Group and A.P. Møller Holding A/S. The
Danish group companies are jointly and severally liable for tax on the Group's jointly taxed income.
A.P. Møller- Mærsk A/S, Copenhagen has the controlling influence through 100 % ownership. All companies in the A.P. Møller -
Mærsk Group, Copenhagen as well as A.P. Møller Holding A/S, Copenhagen are considered as related parties.
Besides standard remuneration, Svitzer A/S has no further transactions with key management of A.P. Møller - Mærsk A/S,
Møller og Hustru Chastine Mc-Kinney Møllers Fond til Alemene formaal, Copenhagen or companies under their significant
influence.
The company has no commitments as at 31 December 2023 (DKK 0 in 2022).