Deloitte
Statsautoriseret Revisionspartnerselskab
CVR
-no. 33 96 35 56
Weidekampsgade 6
2300 Copenhagen S
Phone 36102030
Fax
36102040
www.deloitte.dk
Medlem af Deloitte Touche Tohmatsu Limited
Business Registration No
Annual report 2022
T
he Annual General Meeting adopted the annual report on 4 May 2023
Chairman of the General Meeting
_________
________________________
Name: Aurore Perleau
CI Artemis II K/S
Contents
Page
____
Fund details 1
Statement by the General Partner on the annual report 2
Independent auditor's report 3
Management commentary 6
Statement of comprehensive income 9
Balance sheet at 31 December 2022 10
Statement of changes in equity 12
Cash flow statement for 2022 13
Table of notes 13
Notes 15
Appendix 1 – Supplementary report on disclosures in accordance with the SFDR etc. Error! Bookmark not
defined.
CI Artemis II K/S 1
Fund details
Fund
CI Artemis II K/S
Amerika Plads 29
2100 Copenhagen
Business Registration No: 40 97 87 20
Founded: 3 December 2019
Registered in: Copenhagen
Financial year: 1 January 2022 - 31 December 2022
Telephone: +45 70 70 51 51
Internet: www.cipartners.dk
General Partner
CI Artemis II GP ApS
Fund Manager
Copenhagen Infrastructure Partners P/S
Approved Manager of Alternative Investment Funds (Danish FSA number: 23104)
Auditors
CI Artemis II K/S 2
On behalf of CI Artemis II GP ApS
08.04.2022
CI Artemis II K/S 3
Independent auditor's report
Independent auditor's report
CI Artemis II K/S 4
Independent auditor's report
CI Artemis II K/S 5
Business Registration No 33 96 35 56
Identification No (MNE) mne30131 Identification No (MNE) mne35823
08.04.2022
CI Artemis II K/S 6
Management commentary
2022
2021
2020/19*
EUR’000
EUR’000
EUR’000
Financial highlights
Key figures
Operating profit/(loss) (EBIT)
16,556
7,102
29,872
Financial items, net
(2)
(7)
(12)
Profit/loss for the year
16,553
7,096
29,860
Equity
150,516
158,144
159,905
Assets total
150,552
158,165
160,204
Ratios
Liquidity ratio (%)
5,277.94
9,456.94
221.07
Solvency ratio (%)
99.98
99.99
99.81
Return on equity (%)
10.73
4.46
18.67
* This is the Fund’s first financial year and comprise the period 3 December 2019 - 31 December 2020.
Primary activity
CI Artemis II K/S (CI A II) was established in December 2019 and is managed by Copenhagen Infrastructure
Partners P/S. The General Partner of CI A II is CI Artemis II GP ApS.
The Limited Partners have committed EUR 310m to CI A II for four infrastructure investments in Germany.
Investments
End of 2022, CI A II holds investments in BorWin1, BorWin2, HelWin2 and DolWin2.
In Q1 2020, CI A II acquired a 51% share in the offshore transmission assets BorWin1, BorWin2, HelWin2 and
DolWin2 of ~34% (economic ownership). All assets are fully operational.
Development in activities and finances
The conditions in the financial markets became more volatile during 2022, with increasing power prices, infla-
tion, interest rates and fluctuations in the currency markets.
The global energy crisis continues to impact the power markets as the Russia-Ukraine war impacts the short-
term market volatility, especially within the European/UK gas and power markets and global commodity markets
which impacts the Limited Partnership. The EU power markets implemented short-term policies to reduce elec-
tricity consumption, subsidized consumer costs and introduced windfall taxes on excess profits. Transmission
assets are not directly impacted by high power prices. However, there is a small indirect effect given that trans-
mission system operators (TSOs) must compensate grid losses at market rate. Thus, if forecasted costs differ
from actual costs, it has a short-term cash flow effect until full costs are compensated through regulatory revenue
with a delay.
Management commentary (continued)
CI Artemis II K/S 7
Interest rates increased across all markets as central banks continued to fight the high inflation. Based on current
regulatory framework for the investments, higher interest rates are only to be considered in year 2026 for imple-
mentation in 2029 and onwards. All investment discount rates have increased in line with market interest rates,
representing a higher return requirement on invested capital, thus affecting the value of investments end of year.
This effect is partially offset by the updated interest rate assumptions for the regulatory return on equity (RoE)
and optimization of the investment cashflows.
The Operating profit/(loss) in 2022 amounts to a profit of EUR 17m (2021: 7m) and the Profit/(loss) for the year
amounts to a profit of EUR 17m (2021: 7m), which is in line with the expectation.
Limited Partners’ paid-in capital to the Fund at the end of 2022 amounted to EUR 277m, equaling 90% of the
committed capital of EUR 310m. Accumulated distributions to Limited Partners amounted to EUR 180m since
fund initiation and accumulated net income end of 2022 amounted to EUR 54m. Hereafter total Limited Partners’
capital end of 2022 amounted to EUR 151m.
Uncertainty relating to recognition and measurement
CI A II invests in infrastructure projects structured to provide stable cash flows, but where transferability and
cash flows may to a certain extent still be affected by changes in market conditions. Consequently, the fair value
of the investments is based on estimates and several assumptions made by the General Partner on the balance
sheet date.
Information according to the Alternative Investment Fund Managers Directive
According to Article 22 of the Alternative Investment Fund Managers Directive, Alternative Investment Funds
(AIF) must make certain disclosures to investors in connection with the presentation of financial statements.
During the financial period covered by the financial statements, there have been no significant changes in the
matters below:
• The Fund’s Investment strategy;
• Valuation principles of the Fund’s investments;
• The percentage of the AIF’s assets which are subject to special arrangements arising from their illiquid
nature;
• New arrangements for managing the Fund’s liquidity;
• The Fund's risk profile and the risk management systems implemented by the Fund Manager used to
manage the Fund's risks;
• There have been no amendments to the maximum level of leverage which the Fund Manager can use on
behalf of the Fund. Nor has there been any changes in the right to use collateral or any guarantee accord-
ance with the agreement allowing for the leverage.
Management commentary (continued)
CI Artemis II K/S 8
Events after the balance sheet date
No events have occurred after the balance sheet date to this date which would influence the evaluation of this
annual report.
Outlook
Expectations for the Limited Partnership are in general positive and the profit for 2023 is expected to be with-
in the range of EUR 5-15m. The expectations for 2023 is impacted by the continued turmoil in the financial
markets impacting the return requirements on invested capital.
No further investments are expected to be made.
Supplementary report on disclosures in accordance with the SFDR etc.
This financial product was closed prior to 10 March 2021 before the criteria for “sustainable investment” within
the meaning of Article 2 (17) of EU Regulation 2019/2088 was applicable and/or available. As a result, the
investments underlying this financial product do not take into account the EU criteria for sustainable investment
objective. As such, this financial product is classified as an Article 8 product, which promotes, among other
characteristics, environmental or social characteristics.
The product level periodic disclosure – Annex IV of the Commission Delegated Regulation (EU) 2022/1288, is
found in Appendix 1.
CI Artemis II K/S 9
Statement of comprehensive income
2022 2021
Notes EUR’000 EUR’000
_____ ___________ ___________
Interest income 6,208 6,630
Net increase/(decrease) in unrealised gains/(losses)
from financial assets and liabilities at fair value
Operating income 17,588 7,881
___________ ___________
Administrative expenses 3 (1,032 ) (779 )
___________ ___________
Operating expenses (1,032 ) (779 )
___________ ___________
O
perating profit/(loss) (EBIT) 16,556 7,102
___________ ___________
F
inancial income 4 3 0
Financial expenses 5 (5 ) (7 )
___________ ___________
Profit/(loss) for the year 16,553 7,096
___________ ___________
Other comprehensive income 0 0
___________ ___________
Comprehensive income 16,553 7,096
___________ ___________
___________ ___________
_________
__
_________
__
CI Artemis II K/S 10
Balance sheet at 31 December 2022
2022 2021
Notes EUR’000 EUR’000
_____ ___________ ___________
Equity investments 6 62,401 51,021
Receivables from investments
Investments 148,582 156,176
___________ ___________
Non-current assets 148,582 156,176
___________ ___________
O
ther short-term receivables 6 1
Prepayments 1,170 1,243
___________ ___________
Receivables 1,176 1,244
___________ ___________
Cash 794 745
___________ ___________
Current assets 1,970 1,989
___________ ___________
Assets 150,552 158,165
___________ ___________
___________ ___________
_________
__
6
_________
__
CI Artemis II K/S 11
Balance sheet at 31 December 2022
2022 2021
Li
mited Partnership capital
Retained earnings (126,965 ) (117,987 )
___________ ___________
Equity 150,516 158,144
___________ ___________
Othe
r payables 8 36 21
___________ ___________
Current liabilities 36 21
___________ ___________
Liabilities 36 21
___________ ___________
Equity and liabilities 150,552 158,165
___________ ___________
___________ ___________
No
_____
tes
E
_________
UR’000
__
7
E
_________
UR’000
__
CI Artemis II K/S 12
Statement of changes in equity
Limited
Partnership Retained
capital earnings Total
EUR’000 EUR’000 EUR’000
___________ ___________ ___________
Equity at 1 January 2022 276,131 (117,987 ) 158,144
Contribution from Limited Partners 1,350 0 1,350
Distributions to Limited Partners 0 (25,532 ) (25,532 )
Profit/(loss) for the year 0 16,553 16,553
___________ ___________ ___________
Equity at 31 December 2022 277,481 (126,965 ) 150,516
___________ ___________ ___________
___________ ___________ ___________
Limited
Partnership Retained
capital earnings Total
EUR’000 EUR’000 EUR’000
___________ ___________ ___________
Equity at 1 January 2021 275,138 (115,233 ) 159,905
Contribution from Limited Partners 993 0 993
Distributions to Limited Partners 0 (9,850 ) (9,850 )
Profit/(loss) for the year 0 7,096 7,096
___________ ___________ ___________
Equity at 31 December 2021 276,131 (117,987 ) 158,144
___________ ___________ ___________
___________ ___________ ___________
The investors have committed themselves to contributing up to EUR 310m to the Fund. On 31 December
2022, the investors have contributed a net amount of EUR 277m out of the combined contribution commit-
ment, causing the balance commitment to stand at EUR 33m.
Distributions to Limited Partners comprises return of capital and realised gain. Return of capital is presented as
part of Limited Partnership capital whereas realised gain / loss is presented as part of retained earnings.
Committed capital will be contributed to the Fund when capital is called to serve costs or performing invest-
ments. The Commitments shall be honored by payments by the Limited Partners on a pro rata basis according
to their respective Commitments into a Deposit Account of the Partnership as and when required by a written
notice to the Limited Partners. Additional specific conditions for capital contributions or recycling of distribu-
tions are laid out in the Limited Partnership Agreement.
Refer to note 7 for further regarding the rights, preferences and restrictions attached to the shares.
CI Artemis II K/S 13
Cash flow statement for 2022
2022 2021
Notes EUR’000 EUR’000
_____ ___________ ___________
Operating profit/(loss) 16,556 7,102
Income from investments (17,588 ) (7,882 )
Working capital changes 9 84 (1,514 )
___________ ___________
Cash flows from ordinary activities (949 ) 2,293
___________ ___________
F
inancial income 4 3 0
Financial expenses 5 (5 ) (7 )
___________ ___________
Cash flows from operating activities (951 ) 2,286
___________ ___________
D
istributions from equity investments 6 0 11,250
Distributions from receivables from investments 6 25,182 0
___________ ___________
Cash flows from investing activities 25,182 11,250
___________ ___________
C
ontribution from Limited Partners 1,350 993
Distributions to Limited Partners (25,532 ) (9,850 )
___________ ___________
Cash flows from financing activities (24,182 ) (8,857 )
___________ ___________
Increase/decrease in cash 49 93
C
ash beginning of year 745 652
___________ ___________
Cash end of year 794 745
___________ ___________
___________ ___________
Table of notes
1. Accounting policies 16
CI Artemis II K/S 14
2. Significant accounting estimates, assumptions and uncertainties 21
3. Administrative expenses 21
4. Financial income 22
5. Financial expenses 22
6. Investments 23
7. Limited Partnership capital 24
8. Other payables 24
9. Working capital changes 24
10. Financial instruments 24
11. Financial risk management 25
12. Financial instruments measured at fair value 28
13. Related parties 31
14. Contingent liabilities 32
15. Investors 32
16. Events after the balance sheet date 32
17. Authorisation of the annual report for issue 32
CI Artemis II K/S 15
Notes
1. Accounting policies
Reporting class
The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as
adopted by the EU and disclosure requirements of the Danish Financial Statements Act governing reporting class
B enterprises with certain provisions from class C .
CI A II is a Limited Partnership based in Denmark.
The accounting policies applied to these financial statements are consistent with those applied last year.
The financial statements are presented in Euro (EUR), which is the functional currency of the Fund.
The financial statements are presented on the basis of historical cost, except for the investments and receivables
from investments, which are measured at fair value. Historical cost is based on the fair value of the consideration
given in exchange for assets.
All amounts in the financial statements are presented in whole EUR thousands. Every figure is rounded off
separately and, for that reason, minor differences between the stated totals and the sum of underlying figures
may occur.
Judgements made by the General Partner in the application of IFRSs that have had significant effects on the
financial statements are disclosed, where applicable, in the relevant notes to the financial statements.
Defining materiality
If a line item is not individually material, it is aggregated with other items and notes of a similar nature in the
financial statements or in the notes. There are substantial disclosure requirements throughout IFRS. Disclosures
required by IFRS are provided unless the information is considered immaterial to the economic decision-making
of the users of these financial statements or not applicable.
The most significant accounting policies are set out below.
CI Artemis II K/S 16
Notes
1. Accounting policies (continued)
Report on the omission of preparation of consolidated financial statements
CI A II has omitted to prepare consolidated financial statements under the provisions of IFRS 10 as the Limited
Partnership qualifies as an investment entity. The definition of an investment entity is an entity that:
1. Obtains funds from one or more investors for the purpose of providing those investor(s) with investment
management services;
2. Commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appre-
ciation, investment income or both; and
3. Measures and evaluates the performance of substantially all of its investments on a fair value basis.
In view of the circumstances described below, the General Partner believes that the Fund satisfies the typical
criteria of an investment entity that:
1. The Fund has more than one investment.
2. The Fund and the investor are not related parties. Please refer to the description in note 13 to the financial
statements.
3. The Fund’s investments take the form of equity instrument. The Fund can exit the investment, if relevant.
Standards and Interpretations not yet in force
All the new and amended Standards and Interpretations which are relevant to the Fund and which came into
force with effect for financial years beginning 1 January 2022 have been applied when preparing the Financial
Statements.
These standards have not had a significant impact on the Fund’s Annual Accounts.
There are no other Standards, Interpretations or amendments to existing Standards that are not yet effective that
would be expected to have a significant impact on the Fund.
Significant accounting judgement and estimates
As part of the preparation of the financial statements, the Fund Manager and the General Partner make a number
of accounting judgements which form the basis of presentation, recognition and measurement of the Fund’s
assets and liabilities. The most significant accounting judgements are evident from note 2 to the financial state-
ments.
Recognition and measurement
Assets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Fund, and the value of the asset can be measured reliably. Assets are derecognised in
the balance sheet when it is no longer probable that future economic benefits will flow to the Fund.
CI Artemis II K/S 17
Notes
1. Accounting policies (continued)
Purchase and sale of financial assets and liabilities are recognised in the balance sheet at the closing date.
Liabilities are recognised in the balance sheet when the Fund has a legal or constructive obligation as a result of
a prior event, and it is probable that future economic benefits will flow out of the Fund, and the value of the
liability can be measured reliably. Liabilities are derecognised in the balance sheet when it is no longer probable
that economic benefits will have to be given up to settle the liability.
On initial recognition, assets and liabilities are measured at cost, however, investment assets are measured at fair
value on initial recognition, typically equaling cost exclusive of directly incurred expenses (direct transaction
costs). Measurement subsequent to initial recognition is affected as described below for each financial statement
item. Allowance is made for events occurring from the balance sheet date to the date of presentation of the annual
report, and which confirm or invalidate affairs and conditions existing at the balance sheet date.
Income is recognised in the statement of comprehensive income when earned, whereas costs are recognised by
the amounts attributable to the reporting period.
Foreign currency translation
The functional currency reflects the currency in which the Limited Partners have committed themselves to the
Fund as well as the currency in which the Fund pays the Fund Manager for carrying out investment related
services. The financial statements of the Fund are presented in the currency unit Euro (EUR), which is the Fund’s
functional and presentation currency.
On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction
date. Receivables, payables and other monetary items denominated in foreign currencies that have not been
settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange dif-
ferences that arise between the rate at the transaction date and the rate in effect at the payment date or the rate at
the balance sheet date are recognised in the income statement as financial income or financial expenses.
Statement of comprehensive income
Revenue recognition
Dividend income is recognised when the Fund’s rights to receive the payments have been established.
Interest on receivables from investments at fair value through profit or loss is accrued on a time-proportionate
basis. The interest is calculated based on outstanding amount.
CI Artemis II K/S 18
Notes
1. Accounting policies (continued)
Operating income from receivables and investments
Operating income from receivables and investments consists of unrealised fair value adjustments, dividends,
accrued interest, net foreign exchange gains or losses related to receivables and investments and profit or loss
from the disposal of portfolio investments or receivables.
Income realised from the disposal of investments is calculated as the difference between net selling price and
the fair value at the beginning of the financial year.
Administrative expenses
All expenses are recognised in the statement of comprehensive income on an accrual basis.
Administrative expenses comprise expenses incurred during the reporting period not directly related to the
Fund’s investment activities. The Fund pays the Fund Manager an annual fee for carrying out investment related
activities and administration. The fee is calculated in accordance with the criteria set out in the Limited Partner-
ship Agreement.
Administrative expenses which can be directly allocated to specific investments are recognised in the underlying
project companies.
Administrative expenses that do not relate to the Fund’s investment activities or is investment specific are rec-
ognised as expense by the Fund. Such costs comprise among others financial, legal and tax advisory, audit,
bookkeeping, travel costs and General Partner fee.
Financial income and expenses
Financial income and expenses comprise interest income and various expenses, and net exchange rate adjust-
ments on transactions in foreign currencies.
Interest income and interest expenses are recognised on an accrual basis.
Income taxes
Under current Danish law governing the Fund, it is not independently taxable because the Fund’s profit/loss for
the year is included in the Limited Partners’ taxable income.
CI Artemis II K/S 19
Notes
1. Accounting policies (continued)
Balance sheet
Investments and receivables from investments
Financial assets and liabilities are recognised at fair value through profit or loss when the Fund becomes party
to the contractual provisions of the instrument. Recognition takes place on the commitment date when the Fund
purchases or sells an investment under a contract whose terms require delivery of the investment within the time
frame established by the market.
On initial recognition, investments and receivables from investments are measured at fair value.
Financial assets and liabilities are derecognised when the contractual rights to the cash flows from the invest-
ments have expired or the Fund has transferred substantially all risks and rewards of ownership.
Investments consist of equity investments and receivables from investments consist of loans. Furthermore, in-
vestments consist of capitalised development costs, which increase the fair value of the investments. Capitalised
development costs consist of expenses related to early-stage design and development of infrastructure invest-
ments and primarily relates to advisory services provided to fund projects such as project structuring, contracting
and de-risking etc. On initial recognition, both types of investment are measured at fair value, and subsequently
measured at fair value with recognition of fair value adjustments through profit or loss. Receivables from invest-
ments are measured at fair value through profit or loss under IFRS 9.
The fair value is calculated equivalent to an estimated fair value that is determined based on market information,
IPEV Valuation Guidelines and generally accepted valuation techniques, including benchmarking, DCF or other
relevant methods, which are considered to provide the best estimate of the fair value.
For further information about the measurement of fair values, please refer to note 12.
Other short-term receivables
Other receivables relate to the Fund’s ordinary business activities and are mainly from other companies in the
Copenhagen Infrastructure Partners structure.
Other receivables are measured at amortised cost, usually equaling nominal value. The value is reduced by write-
downs for expected losses based on generally accepted models under IFRS 9, including the Fund’s historical
experience in credit losses etc.
Prepayments
Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.
Cash
Cash comprises cash in bank deposits.
CI Artemis II K/S 20
Notes
1. Accounting policies (continued)
Other financial liabilities
Other financial liabilities are measured at amortised cost, which usually corresponds to nominal value.
Cash flow statement
The cash flow statement of the Fund is presented using the indirect method and shows cash flows from operating,
investing and financing activities as well as the Fund’s cash at the beginning and the end of the financial year.
Cash flows from operating activities are calculated as the operating profit/loss adjusted for non-cash operating
items and working capital changes.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of in-
vestments.
Cash flows from financing activities comprise cash changes in the size or composition of the contributed capital
and cash payment of distributions to the Limited Partners.
Cash comprises cash in bank deposits.
Financial highlights
Financial highlights are defined and calculated in accordance with “Recommendations & Ratios” issued by the
Danish Society of Financial Analysts.
Ratios Calculation formula Ratios reflect
Liquidity ratio (%) =
Current assets x 100
Current liabilities other than
provisions
The entity’s financial strength.
Solvency ratio (%) =
Equity x 100
Total assets
The entity’s financial strength.
Return on equity (%) =
Profit for the year x 100
Average equity
The entity’s profitability.
CI Artemis II K/S 21
Notes
2. Significant accounting estimates, assumptions and uncertainties
The Fund develops and invests in infrastructure assets (unlisted equity investments and receivables), the market
price of which depends both on entity-specific affairs and market conditions, including power prices, commodity
prices, exchange rates and construction risks within the different investments. For further information about the
impact of accounting estimates on the annual report, please refer to the Sensitivity analysis section at note 12.
Furthermore, the valuation and hence fair value of the long-term receivables are affected by changes in the risk-
free interest rate and the general cost of risk in the market. As a result, income from investments, including the
unrealised value adjustments and the fair value of investments are subject to estimation and uncertainty. For
further information about the financial risks related to the investments, please refer to note 12.
This uncertainty may be higher during periods of high volatility in the financial markets, and economic trends
affect earnings of the underlying companies as well. Furthermore, the uncertainty is affected by the construction
risk within the different investments, and the uncertainty related to the construction of the projects taking place
within relevant time frames or milestones.
The methods applied in and the assumptions underlying the determination of the fair value in unlisted equity
investments and receivables are described in note 12 to the financial statements.
3. Administrative expenses
The Fund has no employees.
Administrative expenses include management fee for the period to Copenhagen Infrastructure Partners P/S, in
accordance with the Limited Partnership Agreement and management agreement. For further information about
management fee and investment advisory fee, please refer to note 13.
According to Article 107 of the AIFMD Level 2 Regulation and section 61 (5 and 6) of the Alternative Invest-
ment Fund Managers etc. Act, alternative investment funds must disclose information about the total remuner-
ation of the entire staff of the Fund Manager and the number of beneficiaries. Furthermore, remuneration to
material risk-takers must be disclosed.
The Fund Manager must also disclose the information necessary to provide an understanding of the risk profile
of the Fund and the measures that the Fund Manager takes to avoid or manage conflicts of interest between the
Fund Manager and the Limited Partners. The Board of Directors has adopted a remuneration policy in order to
ensure that the employees and Management are remunerated according to the Danish Executive Order on re-
muneration policy and disclosure requirements on remuneration for managers of alternative investment funds,
etc.
CI Artemis II K/S 22
Notes
3. Administrative expenses (continued)
The remuneration policy ensures, among other matters, that the following is applied in relation to remuneration
at the Fund Manager:
• Promoting of sound and effective risk management, which does not encourage excessive risk-taking.
• Consistency with the principles regarding the protection of the Limited Partners and measures in order to
avoid conflicts of interest.
In accordance with section 61 (5 and 6) of the Alternative Investment Fund Managers etc. Act, information
regarding salaries paid to employees of the Fund Manager is disclosed in the Annual Report for 2022 for Co-
penhagen Infrastructure Partners P/S, Business Reg. No. 37 99 40 06.
4. Financial income
2022 2021
EUR’000 EUR’000
___________ ___________
Interest income from assets not measured at fair value through profit or loss 3 0
___________ ___________
Financial income 3 0
___________ ___________
5. Financial expenses
2022 2021
EUR’000 EUR’000
___________ ___________
Other interest (4) (6)
Net foreign exchange loss (1) (1)
___________ ___________
Interest expenses for financial liabilities (5) (7)
___________ ___________
CI Artemis II K/S 23
Notes
6. Investments
Receivables
from
Investments investments
EUR’000 EUR’000
___________ ___________
Fair value at 31 December 2021 51,021 105,155
Distributions 0 (25,182)
Value adjustment 11,380 6,208
___________ ___________
Fair value at 31 December 2022 62,401 86,181
___________ ___________
Receivables
from
Investments investments
EUR’000 EUR’000
___________ ___________
Fair value at 31 December 2020 49,770 109,773
Distributions 0 (11,250)
Value adjustment 1,251 6,632
___________ ___________
Fair value at 31 December 2021 51,021 105,155
___________ ___________
Corporate Equity interest Profit/(loss)
* Equity*
Investment form Registered in % EUR’000 EUR’000
_________________ ___________ ___________ ___________ ___________ ___________
CI Artemis II HoldCo ApS Copenhagen 100.00 (71) 51,075
* Based on the latest reported numbers as of 31.12.2022
Since the Fund’s main activity is investing in infrastructure investments, listing all investment entities related to
the Fund would result in a comprehensive list consisting of multiple pages of entities. In order to maintain the
clarity and readability of the annual report, the list of entities to which the Fund has an equity interest has been
limited to the entities to which the Fund has a direct ownership. Furthermore, it is considered that listing all
entities would fill the annual report with immaterial information.
Consistently with the accounting policies, the Fund regularly adjusts the value of the investments to the best
estimate of fair value. This means that the proportionate share of operating profit or loss for the Companies is
not recognised in profit or loss of the Fund, but rather a fair value adjustment of the investment.
The methods applied by the Fund to measure investments are evident from note 12 to the financial statements.
CI Artemis II K/S 24
Notes
7. Limited Partnership capital
The Limited Partnership is owned by the Limited Partners in proportion to their contributed capital. The limited
partnership capital has not been divided into classes.
8. Other payables
2022 2021
EUR’000 EUR’000
___________ ___________
Auditor and other advisors 36 21
___________ ___________
The carrying amount of payables relates to investments, legal fees, auditor’s fees, travel costs etc. The amount
recognised is equal to the fair value of the liabilities.
Other payables fall due for payment within 12 months.
9. Working capital changes
2022 2021
EUR’000 EUR’000
___________ ___________
Change in receivables 69 (1,237)
Change in payables 15 (277)
___________ ___________
84 1,514
___________ ___________
10. Financial instruments
Categories of financial instruments:
2022 2021
EUR’000 EUR’000
___________ ___________
Investments 62,401 51,021
Receivables from investments 86,181 105,155
___________ ___________
Financial assets measured at fair value through profit or loss 148,582 156,176
___________ ___________
Other short-term receivables 6 1
Prepayments 1,170 1,243
___________ ___________
Receivables measured at amortised cost 1,176 1,244
___________ ___________
Other payables 36 21
___________ ___________
Financial liabilities measured at amortised cost 36 21
___________ ___________
All financial liabilities are due for payment within 12 months.
No provisions for expected credit loss have been recognised. Refer to note 11 for further.
CI Artemis II K/S 25
Notes
11. Financial risk management
The General Partner is ultimately responsible for the overall risk management within the Fund but has delegated
the responsibility to the Fund Manager.
The Fund pursues an investment strategy approved by the Limited Partners and invests in both greenfield and
operating infrastructure assets.
The Fund’s risk management processes include identification, measurement, monitoring, reporting and mitiga-
tion of the identified risks to minimise the potential negative effects at fund level.
Key financial risk factors and exposure regarding the financial statements for 2022 can be categorised as fol-
lows:
Financial risk factors
Liquidity risks
Less than Between After
1 year 1 and 5 years 5 years Total
EUR’000 EUR’000 EUR’000 EUR’000
_______ _______ _______ _______
Other payables 36 0 0 36
_______ _______ _______ _______
31 December 2022 36 0 0 36
_______ _______ _______ _______
Less than Between After
1 year 1 and 5 years 5 years Total
EUR’000 EUR’000 EUR’000 EUR’000
_______ _______ _______ _______
Other payables 21 0 0 21
_______ _______ _______ _______
31 December 2021 21 0 0 21
_______ _______ _______ _______
The Fund manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of
financial assets and liabilities. In addition, the Fund is able to draw on uncalled commitments from its investors
to meet its obligations if needed. In addition, no indication of the Limited Partners' inability to contribute the
remaining fund commitment exists as well as future income from investments is expected to settle the outstand-
ing amount.
CI Artemis II K/S 26
Notes
11. Financial risk management (continued)
Credit risks
Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has
entered into with the Fund. The credit risks of the Fund are considered limited.
The Fund's credit risk primarily arises from
• cash and cash equivalents at banks
• other short-term receivables
• contingent liabilities or guarantees
The majority of the Fund’s receivable is receivables from investments which are measured at fair value and
therefore no provision for expected credit loss (ECL) is recognised. Historically, no losses on other receivables
have been realised, hence no provisions for expected credit loss have been recognised in the statement of com-
prehensive income. Any such provision would be considered insignificant as the credit risks of the Fund are
considered limited.
Management manages its credit risk exposure by transacting the majority of the Fund’s contractual commitment
activities with well-established banks, regulated exchanges and business partners which the Management con-
sider to be reputable.
Furthermore, most receivables and contingent liabilities are against holding companies and project companies
within Copenhagen Infrastructure Partners. Hence, Management has a thorough knowledge of the financial sit-
uation in many the entities in which the Fund has a receivable or contingent liability against. Any such provision
would be considered insignificant as the credit risks of the Fund are considered limited.
Investments are progressing as planned and following the outlined budget. Furthermore, the Fund provides a
guarantee to the underlying projects if needed indicating that obligations will be met. Also, the Fund invest in
infrastructure projects in a combination of loan and equity. Infrastructure projects are characterised by a stable
and solid income when the project reaches FID. There is no indication towards that projects are in a state where
they will not be able to meet the obligation against the Fund.
The Fund Manager regularly assesses the risk related to single exposures taking into account current market
developments, inflation, performance of investments, interest rate, price movements etc.
Interest rate risk
The Fund has no long-term external debt at the balance sheet date and therefore no interest risk is related to the
liabilities.
CI Artemis II K/S 27
Notes
11. Financial risk management (continued)
Further the Fund has issued loans with a fixed interest rate to infrastructure companies, where the Fund holds
the majority or a substantial part of the shares. Loans have only been provided to companies in the Copenhagen
Infrastructure Partners structure. No fair market value adjustments are made specifically on such issued loans as
the fair market value is assessed on an investment level which can comprise a combination of both equity and
loan. Furthermore, these loans are not given with purpose of divesting these to external parties, why best estimate
of future cash flows is that these are going to be paid back to the Fund. Therefore, the interest rate risk on the
individual issued loan is considered limited.
Currency risk
The Fund is denominated in EUR. A majority of cash flows take place in EUR, incl. cashflows to investment.
Consequently, the Limited Partners have very limited exposure to currency risk through the Fund. No hedging
is made at fund level. No derivatives have been recognized on the balance sheet date in the Fund.
If the foreign exchange rates to which the Fund is exposed moved by +/- 10%, the estimated effect on profit/loss
would be as follows +/- EUR 0m.
Commodity and power prices
The Fund’s indirect power price exposure is mitigated via power price agreements and/or instruments in the
project’s capital structure. The Fund’s indirect outright power price exposure are considered as low. Other hedges
of commodities and power prices are recognised in the underlying entity structures, not in the Fund.
When the Fund has an indirect outright power price and commodity price exposure changes in such risk factors
impact the fair value of the individual investment.
12. Financial instruments measured at fair value
The fair value of the investments is measured on a quarterly basis, or more frequently if significant changes
occur.
The Fund Manager has implemented procedures and methodology to ensure that the valuation is carried out
consistently over time and across investments.
Methods applied in and assumptions underlying the determination of fair values of investments
The fair value of investment and receivables from investments has been estimated by applying methods that best
reflect the risks and the stage of each investment, e.g. assumptions related to power prices, inflation rates, tech-
nical availability and discount rate.
In general, the fair value is determined in accordance with IPEV Valuation Guidelines and generally accepted
valuation techniques, including DCF models, benchmarking or other relevant methods.
CI Artemis II K/S 28
Notes
12. Financial instruments measured at fair value (continued)
The valuation of equity investments and receivables from investments is based on the same methods, as equity
investments and receivables from investments are exposed to the same risks.
Fair value hierarchy for financial instruments measured at fair value in the balance sheet
Below, financial instruments measured at fair value are classified using the fair value hierarchy:
• Quoted prices in active markets for identical instruments (Level 1)
• Quoted prices in active markets for similar assets or liabilities or other valuation methods under which all
material inputs are based on observable market data (Level 2)
• Valuation techniques under which any material inputs are not based on observable market data (Level 3)
All investments are classified as Level 3 investments and there have not been any transfers between the levels
during the financial year.
Material unobservable inputs for Level 3
Financial instruments measured at fair value in the balance sheet are based on valuation techniques that include
material unobservable input. Material unobservable inputs mean in this context that the valuation is dependent
on a return requirement that contains a number of components that cannot be observed on trading markets, for
example project-specific risks and illiquidity prices.
Level 1 Level 2 Level 3 Total
2022 EUR’000 EUR’000 EUR’000 EUR’000
________ ________ _________ _________
Unlisted shares, equity investments 0 0 65,001 65,001
Receivables from investments 0 0 86,181 86,181
________ ________ _________ _________
Financial assets measured at fair value through profit
or loss 0 0 151,182 151,182
________ ________ _________ _________
Level 1 Level 2 Level 3 Total
2021 EUR’000 EUR’000 EUR’000 EUR’000
________ ________ _________ _________
Unlisted shares, equity investments 0 0 51,021 51,021
Receivables from investments 0 0 105,155 105,155
________ ________ _________ _________
Financial assets measured at fair value through profit
or loss 0 0 156,176 156,176
________ ________ _________ _________
CI Artemis II K/S 29
Notes
12. Financial instruments measured at fair value (continued)
Material unobservable inputs
Fair value of the assets is determined based on both forward-looking information, current market and geopolit-
ical conditions, actuals e.g., contributions and distributions etc. as well as status on the specific assets. Valua-
tions are conducted by an independent inhouse valuation expert team and approved quarterly in the CIP Valua-
tion Committee and subsequently by the Board of Directors as part of the quarterly report. A number of mate-
rial unobservable input is applied in the valuation and is ongoingly assessed on a on a Fund specific level. An
elaboration of the assessed material unobservable inputs is outlined below.
Discount rate
The discount rate used to value investments and receivables from investments after COD is considered the
most material unobservable input, and the applied range for the discount rate is between 7-9% (2021: 5-7%).
The equity discount rate comprises two legs. The first element is a standard discount rate model (“Capital asset
pricing model”) comprising risk free rate, systematic risk (beta) and market risk premium and the second ele-
ment is additional infrastructure specific risk factors comprising alpha adjustments, illiquidity risk premium
and construction risk premium. Each element is described below.
The risk free rate is the yield of a risk free investment with a maturity equal to the duration of the investment.
Duration is the present value weighted average time until cash flows are received. Beta measures the degree of
systematic risk of the asset. Beta is re-leveraged according to amount of debt in the project. The market risk
premium is the return premium above the risk free rate for the theoretical market portfolio. The approach to
determine the market risk premium is based on an average from multiple answers from different countries.
Alpha adjustment is added to the equity discount rate to reflect project specific and price risks. It has been de-
termined to divide alpha adjustment into two components; one for general project risks and one for price spe-
cific risk. The illiquidity risk premium catches the effect of extra risk and premium related to infrequently
traded assets. Determination is based on investment type, asset complexity and transfer restrictions. Lastly, a
construction risk premium is added on the discount rate, which reflects the extra risk associated with assets un-
der construction. The premium is gradually lowered as projects reach construction related milestones.
Debt discount rates likewise comprise two legs. The first element is a standard debt discount rate model com-
prising risk free rate and credit spread and the second element is additional infrastructure specific risk factors
comprising illiquidity risk premium and construction risk premium. Risk free rate and illiquidity risk premium
follows the description above for equity discount rate whereas the credit spread depicts the yield between the
risk-free rate and a debt investment with the same maturity but a lower corporate credit rating. The Scope’s
credit rating framework is applied in determination of the credit spread for each investment.
CI Artemis II K/S 30
Notes
12. Financial instruments measured at fair value (continued)
Inflation
Inflation forecasts are based on a combination of short-term data sourced from the Bloomberg Bank Composite
Inflation Tool combined with the long term central bank forecasts (e.g. Bank of England, Federal Reserve
Bank, European Central Bank) for the countries from which materials are sourced, as well as data relating to
specific commodities. Changes to inflation is considered in determining the discount rates as the changes to
inflation can impact risk free rate and through that the discount rate applied for the individual asset.
Regulatory Return on Equity (ROE)
Every 5 years the allowed regulatory Return on Equity (ROE) (determined using the Capital Asset Pricing
Model) is adjusted to adapt to changes in financial markets (risk-free rate, Market Risk Premium and beta). For
the period 2024-2028 the ROE was set by BNetzA at 5.07%. For each future 5-year period from 2029 to 2043,
the ROE assumption is updated to 5.4%, 5.7% and 6.1% respectively, based on the current forecast of the risk-
free rate proxy (10-year look-back-period applied).
Sensitivity analysis
The fair value of the Fund’s investments is affected by developments in the applied discount rate and future
earnings expectations for these investments. A decline or increase in the material unobservable inputs stated
above and changes in macroeconomic conditions might have a direct effect on the valuation of the invest-
ments. Due to the nature of the investments the effects are subject to some uncertainty, as other factors can in
some scenarios have a reverse effect.
Portfolio sensitivity Variable change in input Approximately
impact on Fund NAV
Regulatory Return on Equity
(+ / - 1%-points)
EUR 4m / EUR (4)m
Inflation
(+ / - 1%-points)
EUR 10m / EUR (10)m
Discount rate
(+ / - 1%-points)
EUR (7)m / EUR +8m
The inputs above are considered the most material unobservable input due to the nature of the investments.
Notes
13. Related parties
Related parties with a controlling interest
The Limited Partnership has no investors or related parties with a controlling interest.
CI Artemis II K/S 31
2022 2021
EUR’000 EUR’000
___________ ___________
Related party transactions
The General Partner receives a fee for its obligation towards
CI A II as per the Articles of Association
Payment to the General Partner 1 0
___________ ___________
Copenhagen Infrastructure Partners P/S (the Fund Manager) is considered
a related party of the Fund due to its role as being Fund Manager
Management fee 924 925
___________ ___________
Management fee is a fixed fee.
Receivables from investments
Loans have been granted on market terms, which are expected to be settled by future cash payments. The Fund
has no guarantees or similar collateral in connection with loans.
2022
EUR’000
___________
Contributions at 31 December 2021 98,000
Contributions 0
___________
Contributions at 31 December 2022 98,000
___________
Committed loan capital 98,000
___________
Outstanding commitment at 31 December 2022 0
___________
There are no other key relationships, which are considered material to the financial statements.
Notes
14. Contingent liabilities
There are no guarantees or contingent liabilities of the Fund.
No provisions for expected credit loss have been recognised. Refer to note 11 for further.
CI Artemis II K/S 32
15. Investors
The Limited Partnership has registered the following Limited Partners as holding more than 5% of the voting
rights or nominal value of the contributed capital:
Limited Partner
Residence
Ownership
percentage
PensionDanmark Pensionsforsikringsaktiesel-
skab
Langelinie Allé 43, 2100 Copenhagen
,
Denmark
85%
PFA Pension, forsikringsaktieselskab
Sundkrogsgade 4, 2100 Copenhagen
, Den-
mark
15%
16. Events after the balance sheet date
No events have occurred after the balance sheet date to this date which would influence the evaluation of this
annual report.
17. Authorisation of the annual report for issue
At the meeting held on 17 April 2023 the General Partner authorised this annual report for issue on 4 May 2023.
The annual report will be submitted to the Limited Partnership’s Limited Partners for adoption at the Annual
General Meeting on 4 May 2023.
Appendix 1 – Supplementary report on disclosures in accordance with the
SFDR etc.
CI Artemis II K/S 33
Periodic disclosure for
the financial products referred to in Article 8, paragraphs 1, 2 and 2a,
of
Regulation (EU) 2019/2088 and Article 6
, first paragraph, of Regulation (EU) 2020/852
Product name:
CI Artemis II K/S
Legal entity identifier:
(CVR. No) 40978720
Environmental and/or social characteristics
Copenhagen Infrastructure Artemis II K/S is managed by Copenhagen Infrastructure
Partners P/S, company number (CVR no.) 37994006 ("CIP" or the "Manager"). The Fund is a
close-ended fund which was structured, established and held its final closing prior to the
entry into force of Regulation (EU) 2019/2088 (the “Sustainable Finance Disclosure
Regulation” or "SFDR"). The Fund's overall approach to its environmental and social
characteristics thus did not formally take in to account the defined principle of “do no
significant harm” as defined in the SFDR and EU Taxonomy, and therefore the Fund's
investments are not currently considered to meet the specific definition of “sustainable
investments” within the meaning of art. 2(1
7) of the SFDR. In terms of the EU Taxonomy,
the “do no significant harm” principle applies only to those investments underlying the
financial product that take into account the EU criteria for environmentally sustainable
economic activities. The investments underlying the remaining portion of this financial
product do not take into account the EU criteria for environmentally sustainable economic
activities.
Did this financial product have a sustainable investment objective?
Yes
No
It made sustainable
investments with an
environmental objective:
___%
in economic activities that
qualify as environmentally
sustainable under the EU
Taxonomy
in economic activities that do
not qualify as environmentally
sustainable under the EU
Taxonomy
It promoted Environmental/Social (E/S)
characteristics and
while it did not have as its objective a
sustainable investment, it
had a proportion of
___% of
sustainable investments
with an environmental objective in economic
activities that qualify as environmentally
sustainable under
the EU Taxonomy
with an environmental objective in
economic activities that do not qualify as
environmentally sustainable under the EU
Taxonomy
with a social objective
It made sustainable investments
with a social objective:
___%
It promoted E/S characteristics, but did not
make any sustainable investments
*
Sustainable
investment means
an investment in an
economic activity
that contributes to
an environmental or
social objective,
provided that the
investment does not
significantly harm
any environmental or
social objective and
that the investee
companies follow
good governance
practices.
The EU Taxonomy
is
a classification
system laid down in
Regulation (EU)
2020/852,
establishing a list of
environmentally
sustainable
economic activities.
That
Regulation
does not
include a
list of socially
sustainable
economic activities.
Sustainable
investments with an
environmental
objective might be
aligned with the
Taxonomy or not.
CI Artemis II K/S 34
Appendix 1 – Supplementary report on disclosures in accordance with the
SFDR etc. (continued)
In the next reference period, the Fund intends to assess each of its investments under the “do no
significant harm” principle and the minimum safeguards as defined in the SFDR, and this assessment
may lead to some or all of the Fund's investment being deemed “sustainable investments” within the
meaning of art. 2(17) of the SFDR in subsequent reference periods.
To what extent were the environmental and/or social characteristics promoted
by this financial product met?
For reasons stated in the introduction, the Fund is considered to be a financial product which
promotes, among other characteristics, certain environmental and social characteristics (as
described in other sections in this disclosure and in the Fund's governing documents) and therefore a
financial product subject to art. 8 of the SFDR.
The Fund principally promoted and met certain environmental characteristics in its investments,
through investing in economic activities which contribute to increasing global renewable energy
capacity and transmission.
How did the sustainability indicators perform?
As stated in the introductory section of this periodic disclosure, the Fund was established
and structured prior to the entry into force of the SFDR and EU Taxonomy. During the
reference period, CIP has used the
following sustainability indicators to measure the
environmental characteristics promoted:
1) Renewable energy capacity (MW)
2) Renewable power transmitted (GWh)
During the reference
period, the Fund portfolio consisted of
one investmen
t in a portfolio of
four energy infrastructure assets, of which all were transmitting electricity.
During the reference period, the investment in the four assets which were transmitting
electricity in the Fund’s portfolio
had a
combined renewable energy capacity of
2
,800 MW,
and renewable energy
transmission of 10,218
GWh.
…and compared to previous periods?
Since this is the first periodic disclosure made for CI Artemis II under Regulation (EU)
2022/1288 (the “SFDR Level II”), this section provides information for the current reference
period only.
What were the objectives of the sustainable investments that the financial
product partially made and how did the sustainable investment contribute to such
objectives?
N/A
How did the sustainable investments that the financial product partially made not
cause significant harm to any environmental or social sustainable investment
objective?
Sustainability
indicators measure
how the
environmental or
social
characteristics
promoted by the
financial product
are attained.
CI Artemis II K/S 35
Appendix 1 – Supplementary report on disclosures in accordance with the
SFDR etc. (continued)
N/A
How were the indicators for adverse impacts on sustainability factors taken
into account?
N/A
Were sustainable investments aligned with the OECD Guidelines for
Multinational Enterprises and the UN Guiding Principles on Business and
Human Rights? Details:
N/A
How did this financial product consider principal adverse impacts on
sustainability factors?
As stated in the introduction, the Fund was structured, established and held its final closing prior
to the entry into force of the SFDR. The Fund's overall approach to its environmental and social
characteristics thus did not formally take in to account the defined principle of “do no significant
harm” (which includes the defined concept of principal adverse impacts) as defined in the SFDR.
What were the top investments of this financial product?
During the reference period, the Fund's portfolio consisted of one investment in a portfolio of
four
energy infrastructure assets
which all were transmitting electricity.
These investments are
further
described in the Fund's annual report.
During the reference
period the investment in
the assets were transmitting electricity in the
Fund’s portfolio had combined renewable energy capacity of 2800 MW, and renewable energy
transmission of 10,218 GWh.
Gross asset value (
"GAV") as per 31 December 2022 is used as the basis for calculating the
proportions (%) of investments that have reached FID
.
Largest investments
Sector
% Assets
Country
Artemis II
Transmission
and
distribution
of electricity
100%
Germany
The list includes the
investments
constituting the
greatest proportion
of investments of
the financial product
during the reference
period which is: 1
January 2022
- 31
December 2022
Principal adverse
impacts are the
most significant
negative impacts of
investment
decisions on
sustainability factors
relating to
environmental,
social and employee
matters, respect for
human rights, anti-
corruption and anti-
bribery matters.
The EU Taxonomy sets out a “do not significant harm” principle by which
Taxonomy-aligned investments should not significantly harm EU Taxonomy
objectives and is accompanied by specific Union criteria.
The “do no significant harm” principle applies only to those investments
underlying the financial product that take into acco
unt the
Union criteria for
environmentally sustainable economic activities. The investments underlying the
remaining portion of this financial product do not take into account the Union
criteria for environmentally sustainable economic activities.
Any other sustainable investments must also not significantly harm any
environmental or social objectives.
CI Artemis II K/S 36
Appendix 1 – Supplementary report on disclosures in accordance with the
SFDR etc. (continued)
What was the proportion of sustainability-related investments?
What was the asset allocation?
As described elsewhere in this report, the Fund's approach to its environmental and social
characteristics did not take in to account the defined principles of “do no significant harm” as set
out in the SFDR and the EU Taxonomy, and therefore the Fund's investments are not currently
considered to meet the specific definition of “sustainable investments” within the
meaning of art
2(17) of the SFDR. Except as described elsewhere in this report, the Fund's investments are made
in accordance with the Fund's governing documents including its Responsible Investment Policy
and other governing documents, which set-out the environmental, social and governance
characteristics promoted by the Fund.
In alignment with the rest of this disclosure, GAV as per 31 December 2022 of assets which have
reached FID is used as the basis for calculating the proportion of investments
.
In which economic sectors were the investments made?
During the reference period the Fund's portfolio consisted of one investment in the sector of
transmission and distribution of electricity.
Asset allocation
describes the
share of
investments in
specific assets.
#1 Aligned with E/S characteristics
includes the investments of the financial product used to attain the
environmental or social characteristics promoted by the financial product.
#2Other includes the remaining investments of the financial product which are neither aligned with the
environmental or social characteristics, nor are qualified as sustainable investments.
N/A
The category #1 Aligned with E/S characteristics covers:
- The sub
-category #1A Sustainable
covers environmentally and so
cially sustainable investments.
- The sub-category #1B Other E/S characteristics
covers investments aligned with the environmental or
social characteristics that do not qualify as sustainable investments.
Investments
#1 Aligned with E/S
characteristics
100%
#1A Sustainable
0%
Taxonomy-aligned
0%
Other environmental
0%
Social
0%
#1B Other E/S
characteristics
100%
#2 Other
0%
To comply with the
EU Taxonomy, the
criteria for fossil
gas
include
limitations on
emissions and
switching to fully
renewable power
or low-carbon
fuels by the end of
2035. For
nuclear
energy, the criteria
include
comprehensive
safety and waste
management
rules.
Enabling activities
directly enable
other activities to
make a substantial
contribution to an
environmental
objective.
Transitional
activities are
activities for which
low-carbon
alternatives are not
yet available and
among others have
greenhouse gas
emission levels
corresponding to the
best performance.
CI Artemis II K/S 37
Appendix 1 – Supplementary report on disclosures in accordance with the
SFDR etc. (continued)
To what extent were the sustainable investments with an environmental
objective aligned with the EU Taxonomy?
N/A
Did the financial product invest in fossil gas and
/or nuclear energy related
activities complying with the EU Taxonomy
1
?
Yes:
In fossil gas In nuclear energy
No
1
Fossil gas and/or nuclear related activities will only comply with the EU Taxonomy where they contribute to
limiting climate change (“climate change mitigation”) and do not significantly harm any EU Taxonomy objective -
see explanatory note in the left hand margin. The full criteria for fossil gas and nuclear energy economic activities
that comply with the EU Taxonomy are laid down in Commission Delegated Regulation (EU) 2022/1214.
The graphs below show in green the percentage of investments that were aligned with the EU Taxonomy.
As there is no appropriate methodology to determine the taxonomy-alignment of sovereign bonds*, the
first graph shows the Taxonomy alignment in relation to all the investments of the financial product
including sovereign bonds, while the second graph shows the Taxonomy alignment only in relation to the
investments of the financial product other than sovereign bonds.
N/A
*
For the purpose of these graphs,
‘sovereign bonds’ consist of all
sovereign exposures
.
100 %
100 %
100 %
OpEx
CapEx
Turnover
0%
50% 100%
1. Taxonomy-alignment of investments
including sovereign bonds*
Taxonomy-aligned: Fossil gas
Taxonomy-aligned: Nuclear
Taxonomy-aligned (no gas and nuclear)
Non Taxonomy-aligned
100 %
100 %
100 %
OpEx
CapEx
Turnover
0% 50% 100%
2. Taxonomy-alignment of investments
excluding sovereign bonds*
Taxonomy-aligned: Fossil gas
Taxonomy-aligned: Nuclear
Taxonomy-aligned (no gas and nuclear)
Non Taxonomy-aligned
This graph represents x% of the total investments.
Taxonomy-aligned
activities are
expressed as a share
of:
- turnover
reflect
ing the
share of revenue
from green
activities
of
investee
companies
- capital
expenditure
(CapEx)
showing
the green
investments made
by investee
companies, e.g. for
a transition to a
green economy.
- operational
expenditure
(OpEx) reflecting
green operational
activities of
investee
companies.
CI Artemis II K/S 38
Appendix 1 – Supplementary report on disclosures in accordance with the
SFDR etc. (continued)
The share of investments made in transitional and enabling activities during the reference
period is 0 %.
How did the percentage of investments that were aligned with the EU Taxonomy
compare with previous reference periods?
N/A
What was the share of sustainable investments with an environment
al
objective not aligned with the EU Taxonomy?
N/A
What was the share of socially sustainable investments?
N/A
What investments were included under “other”, what was their purpose and
were there any minimum environmental or social safeguards?
N/A
What actions have been taken to meet the environmental and/or social
characteristics during the reference period?
Several mechanisms and procedures are in place and have been applied during the reference
period to ensure that the investment made by the Fund meet environmental characteristics. The
investment of CI Artemis II
is governed by an Responsible Investment
Policy which among others,
mandates responsible environmental impact management, protects key social objectives, such as
human and labour rights, and restricts CI Artemis II from investing in controversial weapons that
would ordinarily breach humanitarian principles. CI Artemis II is also specifically excluded from
investing in nuclear or coal fired generation, and the Fund is also restricted from investing in nuclear
weapons or weapons that would ordinarily breach humanitarian principles. In addition to adherence
to CIP’s Responsible Investment Policy described above, investments in CI Artemis II are subject to
the following procedures:
are
sustainable
investments with
an environmental
objective that do
not take into
account the
criteria for
environmentally
sustainable
economic
activities under
Regulation (EU)
2020/852.
CI Artemis II K/S 39
Appendix 1 – Supplementary report on disclosures in accordance with the
SFDR etc. (continued)
1) Mitigation and/or management plans for relevant potential adverse impacts at investee
company level.
2) Monitoring of relevant potential adverse impacts of investee companies through mandatory
reporting on either monthly, bi-monthly, quarterly or yearly basis.
3) Responding to incidents relating to relevant potential adverse impacts through
CI Artemis II's
position on the board and/or steering committee of the investee company if applicable.
During the reference period the Fund has held and operated a number of
assets which connect
offshore wind farms in the North Sea to the German electrical grid, all of which help to increase
the overall ‘stock’ of the global electricity grid, which contributes to the renewable energy
‘additionality’ (increased global renewable energy capacity and transmission
).
How did this financial product perform compared to the reference benchmark?
No reference benchmark has been designated for the purpose of attaining the promoted
environmental characteristics.
How does the reference benchmark differ from a broad market index?
N/A
How did this financial product perform with regard to the sustainability indicators
to determine the alignment of the reference benchmark with the environmental
or social characteristics promoted?
N/A
How did this financial product perform compared with the reference benchmark?
N/A
How did this financial product perform compared with the broad market index?
N/A
Reference
benchmarks are
indexes to
measure whether
the financial
product attains
the
environmental or
social
characteristics
that they
promote.