CI Artemis II K/S
Gdanskgade 18
2150 Nordhavn
CVR No. 40978720
Annual report 2023
The Annual General Meeting adopted the annual
report on 15.03.2024
Chairman of the General Meeting
CI Artemis II K/S | Contents 1
Contents
Fund details 2
Statement by the General Partner on the annual report 3
Management commentary 4
Independent auditor's report 8
Statement of comprehensive income 11
Statement of financial position as at 31.12.2023 12
Statement of changes in net assets attributable to the Limited Partners 14
Statement of cash flows 15
Table of notes 16
Notes to the financial statements 17
Appendix 1 - Supplementary report on disclosures in accordance with
the SFDR
33
CI Artemis II K/S | Fund details 2
Fund details
Fund
Business Registration No.: 40978 720
Date of foundation: 03.12.2019
Registered office: Copenhagen
Financial period: - 01.01.2023 31.12.2023
Phone number: +4570705151
URL: www.cip.com
General Partner
CI Artemis II GP ApS
Board of Directors in CI Artemis II GP ApS
Thomas Hinrichsen
Ulrik Kloss Fenneberg
Fund Manager
Copenhagen Infrastructure Partners P/S
Approved Manager of Alternative Investment Funds (Danish FSA number: 23104)
Auditors
Denmark
CI Artemis II K/S | Statement by the General Partner on the annual report 3
On behalf of CI Artemis II GP ApS
CI Artemis II K/S | Management commentary 4
Management commentary
Financial highlights
2023
EUR'000
2022
EUR'000
2021
EUR'000
2020/19*
EUR'000
Key figures
Operating profit/(loss) (EBIT) (25,714) 16,556 7,102 29,872
Financial results, net 20 8 (7) (12)
Increase / (decrease) in net assets attributable
to Limited Partners
(25,694) 16,564 7,096 29,860
Net Assets attributable to Limited Partners 114,801 150,516 158,144 159,905
Total Assets 114,837 150,552 158,165 160,204
Ratios
Liquidity ratio (%) 5,255.56 5,277.94 9,456.94 221.07
Solvency ratio (%) 99.97 99.98 99.99 99.81
Return on equity (%) (19.37) 10.73 4.46 37.35
* 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.
At the end of 2023 the Limited Partners have committed EUR 310m to CI A II for for infrastructure investments in
primarily Germany.
CI Artemis II K/S | Management commentary 5
Investments
At the end of 2023, CI A II had reached final investment decision (FID) on 3 investments, 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 continue to be volatile during 2023, with increasing power prices, inflation,
and interest rates. The increased interest rates impact all investment discount rates as they increased in line with
market interest rates, representing a higher return requirement on invested capital, thus affecting the value of
investment end of year. For transmission assets, the regulatory Return on Equity (RoE) assumptions were
updated in 2023 to reflect market conditions. This has positively impacted the investment value, which was offset
by the increase of discount rates.
The income from investments in 2023 amounts to CI A II (25)m (2022: 17m) and the Profit/(loss) for the period
amounts to a gain of Insert CI A II (26)m (2022: 17m). The conditions of transmission market have a positive
impact on the investment value in 2023.
Limited Partners’ paid-in capital to the Fund at the end of 2023 amounted to EUR 279m. Net contributed capital
thus equals 90% of the committed capital of EUR 310m. Accumulated distributions to Limited Partners amounted
to EUR 192m since the fund initiation and accumulated net income at the end of 2023 amounted to EUR 26m.
Hereafter total Limited Partners’ capital at the end of 2023 amounted to EUR 115m.
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 a number of assumptions made by the Fund Manager and the
General Partner on the balance sheet date.
CI Artemis II K/S | Management commentary 6
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 accordance
with the agreement allowing for the leverage.
Events after the balance sheet date
No other events have occurred after the balance sheet date to this date which would influence the evaluation of
this annual report.
Outlook
The outlook for the Limited Partnership depends on the results of the investments.
Expectations for the Limited Partnership are in general positive and the profit for 2024 is expected to be within
the range of EUR 5-10m. The expectations for 2024 are impacted by the continued turmoil in the financial
markets impacting the return requirements on invested capital.
Corporate social responsibility
An independently assured ESG Report for 2023 represents the Fund’s compliance with the statutory statement
on corporate social responsibility, gender composition of management, data ethics and diversity in accordance
with sections 99a, b and d of the Danish Financial Statements Act.
The report is available on: www.cip.com/commitment/esg-report-2023
Supplementary report on disclosures in accordance with SFDR
This financial product was closed prior to 10 March 2021 before the criteria for “sustainable investment” within
CI Artemis II K/S | Management commentary 7
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 | Independent auditor's report 8
Independent auditor's report
CI Artemis II K/S | Independent auditor's report 9
CI Artemis II K/S | Independent auditor's report 10
CVR No. 339 635 56
Identification No (MNE) mn e 30 131
Identification No (MNE) mn e 35 823
CI Artemis II K/S | Statement of comprehensive income 11
Statement of comprehensive income
Notes
2023
EUR'000
2022
EUR'000
Interest income 5,247 6,209
Net increase/(decrease) in unrealised gains/(losses) from
financial assets at fair value
(29,862 ) 11,380
Operating income/(loss) (24,615 ) 17,589
Administrative expenses 3 (1,099 ) (1,033 )
Operating expenses (1,099 ) (1,033 )
Operating profit/(loss) (EBIT) (25,714 ) 16,556
Financial income 4 21 3
Financial expenses 5 (1 ) 5
Increase / (decrease) in net assets attributable to Limited
Partners
(25,694 ) 16,564
Comprehensive income (25,694 ) 16,564
The notes form an integral part of these financial statements.
CI Artemis II K/S | Statement of financial position as at 31.12.2023 12
Statement of financial position as at
31.12.2023
Assets
Notes
2023
EUR'000
2022
EUR'000
Equity investments 6 32,539 62,401
Receivables from investments 6 80,406 86,181
Investments 112,945 148,582
Non-current assets 112,945 148,582
Other receivables 7 2 6
Prepayments 1,098 1,170
Cash and cash equivalents 792 794
Current assets 1,892 1,970
Total assets 114,837 150,552
The notes form an integral part of these financial statements.
CI Artemis II K/S | Statement of financial position as at 31.12.2023 13
Net assets and liabilities
Notes
2023
EUR'000
2022
EUR'000
Limited partnership capital 8 278,556 277,481
Retained earnings (163,755 ) (126,965 )
Net assets attributable to Limited Partners 114,801 150,516
Other payables 9 36 36
Current liabilities 36 36
Total liabilities 36 36
Total liabilities and net assets attributable to Limited
Partners
The notes form an integral part of these financial statements.
CI Artemis II K/S | Statement of changes in net assets attributable to the Limited Partners 14
Statement of changes in net assets
attributable to the Limited Partners
Limited
partnership
capital
EUR'000
Retained
earnings
EUR'000
Total
EUR'000
Net assets 01.01.2023 277,481 (126,965 ) 150,516
Contributions from Limited Partners and General partner 1,075 0 1,075
Distributions to Limited Partners and General partner 0 (11,096 ) (11,096 )
Profit/(loss) for the period 0 (25,694 ) (25,694 )
Net assets 31.12.2023 278,556 (163,755 ) 114,801
Limited
partnership
capital
EUR'000
Retained
earnings
EUR'000
Total
EUR'000
Net assets 01.01.2022 276,131 (117,986 ) 158,145
Contributions from Limited Partners and General Partner 1,350 0 1,350
Distributions to Limited Partners and General Partner 0 (25,532 ) (25,532 )
Profit/(loss) for the period 0 16,553 16,553
Net assets 31.12.2022 277,481 (126,965 ) 150,516
The investors have committed themselves to contributing up to EUR 310m to the Fund. At , the
investors have contributed an amount of EUR 278m, causing the balance of undrawn commitment to stand at
EUR 32m.
Distributions to Limited Partners comprise 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 to perform the
investment activity. The Commitments shall be honoured by payments by the Limited Partners on a pro rata
basis according to their respective Commitments into a Deposit Account of the Limited Partnership as and when
required by a written notice to the Limited Partners. Additional specific conditions for capital contributions or
recycling of distributions are laid out in the Limited Partnership Agreement.
Please refer to note 7 for further information regarding the rights, preferences and restrictions attached to the
shares.
The notes form an integral part of these financial statements.
31.12.2023
CI Artemis II K/S | Statement of cash flows 15
Statement of cash flows
Notes
2023
EUR'000
2022
EUR'000
Operating profit/(loss) (EBIT) (25,714 ) 16,556
Net increase/(decrease) in unrealised gains/(losses) from
financial assets at fair value through profit or loss
Change in receivables 77 70
Change in payables 0 14
(1,022 ) (949 )
Received financial income 4 21 3
Paid financial expenses 5 (1 ) (5 )
Cash flows from operating activities (1,002 ) (951 )
Distributions from receivables from investments 6 11,021 25,182
Cash flows from investing activities 11,021 25,182
Contributions from Limited Partners 1,075 1,350
Distributions to Limited Partners (11,096 ) (25,532 )
Cash flows from financing activities (10,021 ) (24,182 )
Increase/decrease in cash and cash equivalents (2 ) 49
Cash beginning of year 794 745
Cash end of year 792 794
The notes form an integral part of these financial statements.
CI Artemis II K/S | Table of notes 16
Table of notes
1 Accounting policies
2 Significant accounting estimates, assumptions and
uncertainties
3 Administrative expenses
4 Financial income
5 Financial expenses
6 Investments
7 Other receivables
8 Limited Partnership capital
9 Other payables
10 Financial instruments
11 Financial risk management
12 Financial instruments measured at fair value
13 Related parties
14 Contingent liabilities
15 Investors
16 Events after the balance sheet date
17 Authorisation of the annual report for issue
CI Artemis II K/S | Notes to the financial statements 17
Notes to the financial statements
Accounting policies1
Reporting class
The financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU
and additional disclosure requirements of the Danish Financial Statements Act governing reporting class B
enterprises with addition of a few provisions for reporting class C .
The expected lifetime of the Limited Partnership is 24 years from the date of commence as set out in the Limited
Partnership Agreement. The Limited Partnership qualifies as an unregulated alternative investment fund in
compliance with the AIFMD.
The financial period runs from 1 January to 31 December each year. The accounting policies applied to these
financial statements are consistent with those applied last year.
The financial statements are presented in , which is the functional currency of the Fund. EUR
The financial statements are presented on the basis of going concern.
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 IFRS’ 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 the IFRS
Accounting Standards. Disclosures required by the IFRS Accounting Standards are provided unless the
information is considered immaterial to the economic decisionmaking of the users of these financial statements
or not applicable.
The most significant accounting policies are set out below.
Report on the exemption of preparation of consolidated financial statements
has omitted to prepare consolidated financial statements under the provisions of IFRS 10,
Consolidated Financial Statements, as the Limited Partnership qualifies as an investment entity. The definition of
an investment entity is an entity that:
CI Artemis II K/S
Obtains funds from one or more investors for the purpose of providing those investor(s) with investment
management services;
CI Artemis II K/S | Notes to the financial statements 18
Commits to its investor(s) that its business purpose is to invest funds solely for returns from capital
appreciation, investment income or both; and
Measures and evaluates the performance of substantially all 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:
The Fund has more than one investor and its investors are not related parties. Please refer to the description
in note 12 to the financial statements.
The Fund’s investments take the form of equity instrument or similar investments, and the purpose of the
Fund is to obtain a return on the invested capital in the form of capital appreciation, investment income or
both
The Fund has more than one investment, which are measured at fair value.
Standards and Interpretations not yet in force
All of the new and amended Standards and Interpretations which are relevant to the Fund, and which came into
force with effect for financial years beginning have been applied when preparing the financial
statements.
These Standards have not had an 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 an impact on the Fund.
01.01.2023
Significant accounting judgment and estimates
As part of the preparation of the financial statements, the Fund Manager and the General Partner made
judgements and estimates which affect the application of the Fund's accounting policies and the reported
amounts of assets, liabilities, income and expenses. The most significant accounting judgements are evident from
note to the financial statements.2
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.
Liabilities are recognised in the balance sheet when the Fund has a legal or contractual obligation as a result of
an event prior to or on the balance sheet date, 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.
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 trade 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.
CI Artemis II K/S | Notes to the financial statements 19
Financial assets and liabilities are derecognised when the contractual rights to the cash flows from the
investments have expired or the Fund has transferred substantially all risks and rewards of ownership .
On initial recognition, assets and liabilities are measured at cost, however, investment assets are measured at fair
value on initial recognition, typically equalling contributions and direct transaction costs. Subsequent to initial
recognition, all financial assets, and financial liabilities at fair value through profit or loss are measured at fair
value. Gains and losses arising from changes in the fair value of the ‘financial assets or financial liabilities at fair
value through profit or loss’ category are presented in the statement of comprehensive income within net
increase/(decrease) in unrealised gains/(losses) from financial assets and liabilities at fair value at fair value in the
period in which they arise.
Income is recognised in the statement of comprehensive income when earned, whereas costs are recognised by
the amounts attributable to this financial 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. Investments and loans are carried out in different currencies and hence considered less relevant in
terms of influencing the choice of functional currency. The financial statements of the Fund are presented in the
currency unit 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
differences 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 statement of comprehensive income as financial income or
financial expenses.
EUR
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.
Operating income From Receivables and investments
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.
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.
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
CI Artemis II K/S | Notes to the financial statements 20
activities and administration. The fee is calculated in accordance with the criteria set out in the Limited
Partnership 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
recognised 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.
Taxation
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.
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 and
subsequently measured at fair value with recognition of fair value adjustments through profit or loss. Receivables
from investments are measured at fair value through profit or loss under IFRS 9.
Financial assets and liabilities are derecognised when the contractual rights to the cash flows from the
investments 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,
investments 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 investments and primarily relate to advisory services provided to fund projects such as project
structuring, contracting, and de-risking etc.
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, multiple 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 receivables
Other receivables relate to the Fund’s ordinary business activities and are mainly from other companies in the
CI Artemis II K/S | Notes to the financial statements 21
Copenhagen Infrastructure Partners structure.
Other receivables are measured at amortised cost, usually equalling nominal value.
Prepayments
Prepayments comprise incurred costs relating to subsequent financial periods. Prepayments are measured at
cost.
Cash and cash equivalents
Cash comprises cash in bank deposits.
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 period.
Cash flows from operating activities are calculated as the operating profit/loss adjusted for non-cash operating
items and working capital changes attributable to the operating activities.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
investment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital and
payment of distributions to the Limited Partners as well as the raising of loans and instalments on
interestbearing debt, if any.
Cash comprises cash in bank deposits.
Financial highlights
Financial highlights are defined and calculated as below.
Ratios Calculation formula Ratios reflect
Liquidity ratio (%) Current assets x 100
Current liabilities
The Fund's financial strength
Solvency ratio (%) Equity x 100
Total assets
The Fund’s financial strength
Return on equity (%) Profit for the year x 100
Average net assets
The Fund’s profitability
Significant accounting estimates, assumptions, and uncertainties2
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.
CI Artemis II K/S | Notes to the financial statements 22
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 11.
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.
Administrative expenses3
The Fund has no employees.
Administrative expenses include management fee for the period to
, in accordance with the Limited
Partnership Agreement and management agreement. For further information about management fee, please
refer to note . Also, administrative expenses include fee to administration, audit, advisors, organisation
expenses and other professional fees.
Copenhagen Infrastructure Partners P/S
Approved Manager of Alternative Investment Funds (Danish FSA number: 23104)
13
According to Article 107 of the AIFMD Level 2 Regulation and paragraph 61 section 3 (5 and 6) of the Alternative
Investment Fund Managers etc. Act, alternative investment funds must disclose information about the total
remuneration 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
remuneration policy and disclosure requirements on remuneration for managers of alternative investment
funds, etc.
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 risktaking.
Consistency with the principles regarding the protection of the Limited Partners and measures in order to
avoid conflicts of interest.
In accordance with paragraph 61 section 3 (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
for
and Reg. No. 37 99 40 06.
2023
Copenhagen Infrastructure Partners P/S
Approved Manager of Alternative Investment Funds (Danish FSA number: 23104)
CI Artemis II K/S | Notes to the financial statements 23
Financial income4
2023
EUR'000
2022
EUR'000
Interest income from assets not measured at fair value through profit or loss 21 0
Other financial income 0 3
Financial income 21 3
Financial expenses5
2023
EUR'000
2022
EUR'000
Other interest 1 (5)
Interest expenses for financial liabilities 1 (5)
Investments6
Equity
Investments
EUR'000
Receivables
from
investments
EUR'000
Fair value at 01.01.2023 62,401 86,181
Distributions 0 (11,021)
Fair value adjustment (29,862) 5,246
Fair value at 31.12.2023 32,539 80,406
Equity
Investments
EUR'000
Receivables
from
investments
EUR'000
Fair value at 01.01.2022 51,021 105,155
Distributions 0 (25,182)
Fair value adjustment 11,380 6,208
Fair value at 31.12.2022 62,401 86,181
*Project development costs comprise investments in developer HoldCo's before FID etc. These costs in
underlying development HoldCo’s are capitalised because these development projects are expected to create
future cash flow to the Limited Partners and hence are similar to equity investments. When a project leaves
development before Financial Investment Decision (FID) phase it is transferred to investments and measured at
fair value through profit or loss statement. No costs are capitalised on receivables from investments and
therefore no transfer from development projects before FID is recognised. Please refer to note 1 for further
regarding capitalised costs.
For an overview of the final investment made by the Fund refer to the table below. The portfolio investments as
at 31.12.2023 are including the following investments.
CI Artemis II K/S | Notes to the financial statements 24
Investments Corporate form Registered in
Equity
interest
%
Profit/(loss)*
EUR'000
Equity*
EUR'000
Portfolio
investment Country Asset type
Initial date of
Investment
CI Artemis II HoldCo ApS Denmark 100.00 (8) 51,067 Artemis II Germany Operational Q1 2020
* Based on unaudited financial statements as at 31.12.2023 or latest available reporting.
The Fund invest through a string of entities. Hence, the actual ownership of the portfolio investment may vary from the ownership percentage disclosed above depending on
the ownership structure in the investment.
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 profit or loss of the investments is not recognised in profit or loss of the Fund, but rather as a fair value adjustment of the investment.
The methods applied by the Fund to measure investments are evident from note to the financial statements.12
CI Artemis II K/S | Notes to the financial statements 25
Other receivables7
2023
EUR'000
2022
EUR'000
Other receivables 2 6
2 6
The carrying amount of receivables relates to disbursements on behalf of investments and draw down
receivables.
Limited partnership capital8
The Limited Partnership is owned by the Limited Partners in proportion to their respective capital commitments.
The Limited Partnership capital has not been divided into share classes.
Other payables9
2023
EUR'000
2022
EUR'000
Other vendors and other liabilities 36 36
Other payables 36 36
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.
Financial instruments10
Classes of financial instruments:
2023
EUR'000
2022
EUR'000
Equity investments 32,539 62,401
Receivables from investments 80,406 86,181
Financial assets measured at fair value through profit or loss 112,945 148,582
Other receivables 2 6
Receivables measured at amortised cost 2 6
Other payables 36 36
Financial liabilities measured at amortised cost 36 36
All financial liabilities are due for payment within 12 months.
No provisions for expected credit loss have been recognised. Please refer to note 10 for further information.
CI Artemis II K/S | Notes to the financial statements 26
Financial risk management11
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 can be categorised as follows:2023
Financial risk factors
Liquidity risks
Less than 1
year
EUR'000
Between 1
year and 5
years
EUR'000
After 5 years
EUR'000
Total
EUR'000
Other payables 36 0 0 36
31.12.2023 36 0 0 36
Less than 1
year
EUR'000
Between 1
year and 5
years
EUR'000
After 5 years
EUR'000
Total
EUR'000
Other payables 36 0 0 36
31.12.2022 36 0 0 36
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.
The Funds liquidity risk is considered insignificant based on the above explanation.
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 at banks
CI Artemis II K/S | Notes to the financial statements 27
Other receivables
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.
The Fund has limited exposure against credit risk related to cash and receivables, because they only have cash in
well-established banks, receivables and contingent liabilities or guarantees with parallel funds. Expected credit
loss under IFRS 9 is considered immaterial due to the majority of the receivables are against parallel funds and
companies in the Copenhagen Infrastructure Partners structure. It has been assessed that undrawn commitment
from investors in the parallel funds and companies in the structure is sufficient to cover the outstanding
receivable. Investor base is large institutional investors. In this view, it has been assessed that risk for investors
been unable to meet their commitment at any time is immaterial. Therefore, write-downs on these
counterparties are considered immaterial. Furthermore, the Fund has historically not experienced any credit
losses. Hence, no additional disclosure related to ECL provided.
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 invests in
infrastructure projects in a combination of loan and equity through loans through equity investments.
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 is not exposed to any significant credit risk from a single counterparty at 31.12.2023, since the portfolio
of the Fund consists of a number of counterparties and infrastructure projects. 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.
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.
CI Artemis II K/S | Notes to the financial statements 28
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.
Financial instruments measured at fair value12
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. The valuation approach
incorporates all of the factors that market participants would take into account in pricing a transaction, such as
cash flows, discount rates and yield curves assumptions.
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
CI Artemis II K/S | Notes to the financial statements 29
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
EUR'000
Level 2
EUR'000
Level 3
EUR'000
Total
EUR'000
2023
Unlisted shares, equity investments 0 0 32,539 32,539
Receivables from investments 0 0 80,406 80,406
Financial assets measured at fair value
through profit or loss
0 0 112,945 112,945
Level 1
EUR'000
Level 2
EUR'000
Level 3
EUR'000
Total
EUR'000
2022
Unlisted shares, equity investments 0 0 62,401 62,401
Receivables from investments 0 0 86,181 86,181
Financial assets measured at fair value
through profit or loss
0 0 148,582 148,582
Material unobservable inputs
Fair value of the assets is determined based on both forward-looking information, current market and
geopolitical conditions, actuals e.g., contributions and distributions etc. as well as status on the specific assets.
Valuations are conducted by an independent inhouse valuation expert team and approved quarterly in the
Copenhagen Infrastructure Partners Valuation Committee and subsequently by the Board of Directors as part of
the quarterly report. A number of material 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% (2022: 7-9%).
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
CI Artemis II K/S | Notes to the financial statements 30
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 risks. An alpha adjustment will be
applied to reflect the company specific risks that are not reflected in the beta, which typically is based on more
mature comparable companies. For a corporate investment, the total alpha adjustment is estimated based on
the implied discount rate at the acquisition date and the alpha will be adjusted based different milestones.
Examples of milestones could be revenue targets, EBITDA-margin or IPO date depending on the business case. As
the corporate matures and executes on its business plan, the alpha adjustment will be reduced based on
milestones identified at the acquisition date. However, even for a fully matured company there might still be an
alpha adjustment to reflect differences in risks compared to peer group
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.
Regulatory Return on Equity (ROE) - Investments regulated under German GAAP)
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).
Inflation – Investments regulated under German GAAP
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 are 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.
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 investments.
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. It is the assessment that any reverse effect will be immaterial. The approximately
impact on Fund NAV is calculated by altering one input at a time and rerun the model. No sensitivity analysis has
been made for investments where Management has assessed the cost price as the best estimate of fair value.
The table below presents the effect of changing the assumptions behind the valuation techniques adopted based
on reasonable possible alternative assumptions for those investments whose fair values are recognized in whole
or in part using valuation techniques based on assumptions that are not supported by prices or other inputs
from observable current market transactions in the same instrument.
CI Artemis II K/S | Notes to the financial statements 31
In the below table only equity investments are included because these are the only investments calculated with a
valuation technique. For development projects before FID and receivables from investments cost price is
considered best estimate of the fair value.
Asset type
Fair value at
31.12.2023
Valuation
Technique
Unobservable
Input
Weighted
average input
Reasonable
possible shift
+/- (absolute
value)
Change in
Valuation +/-
Operational
projects
32,539,142 Discounted cash
flow
Inflation 6% - 2% (+/- 1%) 1,822,192
/
(1,789,653)
RAB 1,770,000,000 (EUR 15m) (943,635)
Interest rate from
2029
1.81%
(+/- 1%)
520,626
/
(488,087)
Discount rate 8.80% (+/- 1%) 1,854,731
/
(1,692,035)
Total 32,539,142
The inputs above are considered the most material unobservable input due to the nature of the investments.
Related parties13
Related parties with a controlling interest
The Limited Partnership has no investors or related parties with a controlling interest.
Related party transactions
2023
EUR'000
2022
EUR'000
The General Partner receives a fee for its obligation towards as
per limited partnership agreement
CI Artemis II K/S
Payment to the General Partner 1 0
Fund Manager (the Fund Manager) is considered a related party of the Fund
due to its role as being Fund Manager
Management fee 922 924
Management fee is a fixed fee until the Fund's termination.
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. For further information on receivables from
investments refer to note .6
CI Artemis II K/S | Notes to the financial statements 32
2023
EUR'000
Contributions 98,000
Net contributions at 31.12.2023 98,000
Committed loan capital 98,000
Outstanding commitment at 31.12.2023 0
There are no other key relationships, which are considered material to the financial statements
Contingent liabilities14
There are no guarantees or contingent liabilities of the Fund.
No provisions for expected credit loss have been recognised. Please refer to note for further. 11
Investors15
The Limited Partnership has registered the following Limited Partner as holding more than 5% of the voting rights
or nominal value of the contributed capital:
Limited Partner Residence Ownership percentage
PensionDanmark
Pensionsforsikringsaktieselskab
Langelinie Allé 43, DK-2100
Copenhagen, Denmark
85.00
PFA Pension, forsikringsaktieselskab Sundkrogsgade 4, DK-2100
Copenhagen, Denmark
15.00
Events after the balance sheet date16
No events have occurred after the balance sheet date to this date which would influence the evaluation of this
annual report.
Authorisation of the annual report for issue17
At the meeting held on 29 February 2024 the General Partner authorised this annual report for issue on 15 March
2024.
The annual report will be submitted to the Limited Partnership’s Limited Partners for adoption at the Annual
General Meeting on 15 March 2024.
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 33
Appendix 1 - Supplementary report on
disclosures in accordance with the
SFDR
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 34
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 35
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 36
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 37
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 38
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 39
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 40
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 41
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 42
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 43
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 44
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 45
CI Artemis II K/S | Appendix 1 - Supplementary report on disclosures in accordance with the SFDR 46