Kpmg P/S

Ledelsesberetning

Financial highlightsRevenueNumber of employees and partnersDKK’000 2023/24 2022/23 2021/22 2020/21 2019/20KPMG in Denmark Revenue* 1,614,766 1,485,901 1,365,279 1,111,559 1,009,737Revenue KPMG P/S 1,028,236 939,287 897,045 735,513 690,406Operating profit/loss 3,772 806 10,509 4,604 7,779Profit/loss from financial income and expenses 1,191 264 -961 -1,107 -1,585Profit for the year 4,963 1,070 9,548 3,497 6,194Total assets 357,401 353,237 334,550 304,689 353,201Investments in property, plant and equipment 3,470 4,249 8,411 4,662 2,530Equity 78,081 87,555 77,829 55,544 57,594Cash flow from operating activities 57,363 21,140 -4,604 -76,086 110,418Cash flow from investing activities -3,344 -6,926 -9,251 -7,424 -4,792Cash flow from financing activities -10,687 6,406 11,987 -3,297 23Total cash flow 43,332 20,620 -1,868 -86,807 105,649Revenue growth** 9 % 5% 22 % 7% 19%Solvency** 22 % 25 % 23 % 18% 16%Number of employees and partners 726 869 885 678 593Gender split (male/female) in % 60/40 60/40 62/38 63/37 66/34* KPMG P/S (Audit and Advisory), KPMG Acor Tax Partnerselskab (Tax) and KPMG Law Advokatfirma P/S (Legal), the fully separate and individually independent legal entities, are referred to as “KPMG in Denmark”.** For definitions, see note 1, Accounting policies.More than a numberIn a world that never ceases to surprise, for better or for worse, it is only through great effort, focus on quality, strong insights and the will to make a difference that we achieve results like those we saw in the financial year 2023/24 (FY24).We conclude FY24 with a collective 8% growth for KPMG in Denmark , and an impressive 9.4% growth for KPMG P/S alone. This exceeds our own expectations going into the year and is a testament to our ability to come together as well as the trust that our clients have placed in us. In addition to a satisfactory growth percentage, we also crossed a landmark, reaching a revenue of one billion DKK for KPMG P/S for the first time in history, and an impressive revenue of 1.6 billion DKK for the collective KPMG in Denmark.This achievement is not just a number. It is a milestone that reflects our collective effort and the value we provide. It is something we can all take pride in – so thank you. Thank you to all who put their faith in us – both clients and colleagues. This year has indeed been dedicated to refining our core strengths – whether it is delivering cutting-edge technology advisory services or conducting high-quality audits – while also embracing new opportunities, launching innovative initiatives and amplifying the unique aspects of KPMG. A year ago, we established a new Leadership Team, which has since set ambitious strategic goals to ensure a stable and sustainable future for our Company. While the road ahead may pose challenges, our direction is clear.We believe that we are shaping a firm fit for the future, breaking with the norm – not to be different – but to make the unusual usual. More focus on our talents, more focus on our culture, making room for different aspirations, diversity and individuality. The KPMG of today was established 10 years ago, offering us the opportunity to do things differently. Now we stand ready to seize this opportunity and succeed.Driving purpose and accountabilityWhen you listen, you learn. And on that you need to act. We will create the firm of the future and be the best place to work, while enhancing our diversity and inclusion in the years ahead. Our values drive us forward, and I will explore every avenue to ensure that we always strive to do better.A significant development this year has been the introduction of Key Behaviour Indicators (KBIs), a framework for measuring behaviours that support both our client relationships, our values and our commitment to creating an inclusive environment – where performance and behaviour go hand in hand. KBIs are now embedded in our evaluation process on partner level and for our leaders, and we will closely monitor the results.In an effort to be the best place to work, we also had the pleasure of welcoming a new member to our Leadership Team, Head of People and Partner, Camilla Kruse, just as we finished FY24. She brings years of experience to KPMG, a strong focus on diversity and we are looking forward to thriving and growing our culture together.Putting clients first—across the NordicsAt KPMG, we are a people-focused business, driven by the commitment to deliver exceptional work, insights and expertise to our clients every single day. In FY24, we are proud to have exceeded expectations, as reflected in the positive feedback from most of our clients. They rated their overall satisfaction with KPMG at an impressive average score of 4.44 out of 5, a testament to our unwavering dedication to building strong client relationships and the hard work of our teams across service lines.Making a meaningful difference for our clients is at the core of everything we do. In FY24, we set ambitious new goals for a Nordic collaboration and shared expertise, further enabling us to serve our clients with an integrated, cross-border perspective.While we already operate in a truly global context – combining global insights with local expertise – the proximity and collaboration with our Nordic colleagues allow us to enhance our network even further. This strengthened partnership empowers us to tackle complex challenges and seize opportunities with a robust suite of resources, expertise and innovative solutions.10-year anniversary celebration2014 marked the rebirth for KPMG in Denmark, and we are proud to announce that we have surpassed our past accomplishments with a record-breaking FY24 revenue crossing the one billion DKK mark. That figure is more than 18 times higher than our initial revenue 10 years ago. A 10-year-long journey fuelled by the resilience and dedication of the people representing the KPMG logo in Denmark over the last decade. A heartfelt thank you to everyone who contributed to making this achievement possible.We celebrated this 10th year accordingly with clients, business relations and employees. Our clients joined us for a special reception, where we had the opportunity to express our gratitude for their continued trust in our services and to reaffirm our commitment to achieving impactful results. It was a festive and wonderful occasion to look back on a decade of milestones while setting a future vision for the Company’s growth.During our annual Company Day in August, we celebrated both a year of outstanding efforts and our 10-year anniversary. It was truly a memorable celebration, filled with inspiring speakers, great company, laughter, music and a great party in the evening.In conclusion, KPMG’s growth and accomplishments this year are a direct result of the dedication of our teams, the trust of our clients and our shared commitment to excellence, innovation and digital transformation over the past ten years.As we continue forward, we remain focused on expanding our impact, advancing and making a notable difference in diversity and enhancing our exceptional culture. We embrace our smaller and more agile nature, aiming to leverage it to do better for our colleagues. FY24 has been a year of consolidating our values, growing cross-border collaboration and fostering a healthier culture.Message from the CEO and Senior PartnerDedicated to listening It has been a pleasure to successfully conclude my first full financial year as CEO and Senior Partner at KPMG P/S. I have felt genuinely welcomed by the entire organization in my new role, and I have witnessed the incredible power of this organization. Our collective achievements this year are truly remarkable and serve as a testament to what we can accomplish together.In my first year as CEO and Senior Partner, establishing an open culture of communication has been a key priority. Through “Ask Me Anything” sessions, specific bi-monthly Leadership Communication Surveys and other initiatives, we have created fora that foster transparent, meaningful dialogue, allowing everyone to voice ideas, questions and concerns. I also find significant value in my Sounding Boards, which provide me and the Leadership Team with invaluable internal feedback and insights from across the organization. I have gained valuable insights through active listening and engaging in meaningful discussions with colleagues across all levels of our organization. I believe that the participants in our Sounding Boards also benefit from these exchanges.These initiatives are all a part of nurturing our culture and have given the leadership team and the business the best possible opportunities to align and keep moving forward to succeed. I am delighted to witness a tangible result of this effort in the form of a significant improvement in our Global People Survey on the question “There is open and honest communication from leadership at KPMG”. Even though the road ahead will not be easy, I am more dedicated than ever to create the firm of the future, catering to the new generations while sticking to our values and setting a new standard in the industry. We will not compete and compare – we choose to be different. Make the Difference. Together for better.My first year as CEO and Senior Partner has shown me what we are made of in KPMG. Achieving a strong result in a trying year is more than just a number - it is a testament of dedica-tion and a value-driven way of working from the entire company. It makes me proud to make a difference for our cli-ents while pushing to set new positive standards in the industry.Mads Raahede, CEO & Senior PartnerFocusing on the core businessOur growth in FY24 has been stabilized and driven by our multidisciplinary model. This way of approaching the market is a constant for us and has been a driver for our success through the last 10 years, pushing results and shaping the KPMG we know today.This way of thinking allows us to deliver certainty in an uncertain world and building a business environment with a focus on trust and integrity. Through our audit services in Denmark, we uphold transparency and compliance, ensuring businesses operate in accordance with regulations and best practices. Our Advisory function keeps our clients on track with ambitions and goals, ensuring constant progress. We are proud to diligently deliver our services to all our clients.We recognize our role as auditors and advisors, and we know our objective is to efficiently deliver change and be a partner to trust in trying times.Throughout FY24, KPMG saw many highlights within the business, especially as AI started to deliver on all the promises made from this growing technology. Our teams utilized AI in almost all aspects of our business, including our own Advisory GPT and AI audit tool, Clara, to elevate our ability to ensure the speed and quality of work, both internally and externally.Our Advisory function delivered projects within a broad range of deal advisory, management and risk consulting, and many other fields showcasing the true strength of the Multidisciplinary model across a host of sectors such as Financial Services, Pharma, Infrastructure and numerous others.By leveraging our core strengths, we have delivered vital value to our clients and stakeholders, driving sustainable growth and fostering trust and credibility across sectors. Our commitment to stability and integrity extends beyond financial metrics; we always strive to promote knowledge, guidance and support in a constantly evolving business landscape.Key facts about KPMGKPMG in Denmark is organised in separate legal entities that provide services through a cross-functional collab-oration between KPMG P/S (Audit and Advisory), KPMG Acor Tax Partnerselskab (Tax), and KPMG Law Advokat-firma P/S (Legal), the fully and separate individually independent legal entities, referred to as “KPMG in Denmark”. 8 %Revenue growth rate992Employees and partners1,614,766Combined revenue DKK millionOur global networkKPMG is a global network of pro-fessional services firms providing advisory, audit and tax services. We operate in 142 countries and have 275,288+ people working in member firms around the world. We work closely with a broad range of clients, such as busi-ness corporations, governments and public sector agencies and not-for-profit organisations. We support them in mitigating risks and exploiting business opportu-nities. We lead with a commitment to quality and integrity across the KPMG global organisation, bringing a passion for client suc-cess and a purpose to serve and improve the communities in which KPMG firms operate. In a world where rapid change and unprec-edented disruption are the new normal, we inspire confidence and empower change in all we do.5.1%38Revenue 142growth rateCombined revenue Countries USD billionwhere we operate275,288+Number of employeesESG: from compliance to leveraging big ambitionsEnvironmental, Social and Governance (ESG) consider-ations have evolved from a regulatory burden to a stra-tegic imperative for forward-thinking companies. ESG is now recognised as a powerful tool for driving innovation, enhancing reputation and creating long-term value. As part of our commitment to ESG priorities, KPMG is intensifying efforts to mitigate risks associated with the green transformation for both public and private sector clients. Our focus spans across regulatory, commercial, financial and major project concerns, as well as address-ing risk management across strategy development, investment decisions and operational phases. Additional-ly, we are continuously educating Sustainability Auditors to further enhance our capabilities. Currently, more than 30 people have received specialised training to prepare ESG reports in accordance with the Corporate Sustaina-bility Reporting Directive (CSRD).A new center of excellence ensures stellar deliveriesDuring FY24, we merged our dedicated ESG compliance assurance and advisory teams to create a center of Excellence in our new ESG Advisory Services team. By centralizing our efforts and maintaining a hands-on, client-centric approach for every project, we are better equipped to meet the growing demands of the market. This ensures that our clients will get access to all relevant aspects of best practice in our ESG offerings, including CSRD readiness, high-quality assurance on their CSRD reporting and advisory services covering all aspects of ESG.The center of Excellence has enabled us to refine our ESG services, ensuring they align more effectively with client demands across KPMG’s diverse areas of expertise, both from an audit and an advisory perspective. Our comprehensive and pragmatic approach to CSRD implementation has been particularly well received by our clients, demonstrating the value of our end-to-end solutions.Not only has our team and organization evolved and adapted, but our talent pool has also expanded significantly. We have brought in new competencies, including carbon accounting specialists and experts in processes and controls, while broadening our focus on ESG strategy. In response to the demand for sustainable business practices, companies must also adapt their tax strategies to meet emerging regulatory requirements and stakeholder expectations.FY24 saw auditors preparing clients for CSRD and the next wave of requirementsOur primary objective in our audit-focused ESG efforts is to assist our clients in preparing for and complying with their upcoming CSRD reporting obligations. We also focus on assisting large enterprises in meeting new regulatory requirements such as the corporate sustainability due diligence directive (CSDDD), and on helping smaller companies prepare to effectively respond to inquiries from stakeholders subject to CSRD and CSDDD.We have been actively engaged in CSRD implementation and ESG assurance readiness for clients across various industries.The green transition is now an assetAcross the EU and Denmark, we see the energy and utilities sector executing ambitious green initiatives set by governments and private entities. This involves scaling existing value chains, such as renewable energy from solar and wind, and establishing new ones, like carbon capture, utilization, storage (CCUS) and hydrogen. We are proud to have supported some of these actors and contributing to solutions for a greener tomorrow in assisting our clients’ ambitions.We also see regulatory changes when coming to deals. Initiatives such as the implementation of the EU’s Sustainable Finance Framework will directly affect dealmakers and the financial services sector, intensifying the need for comprehensive ESG due diligence to meet sustainability goals.ESG due diligence is increasingly crucial with 97% of Nordic investors incorporating ESG in their M&A agendas, according to the recent KPMG “Global ESG due diligence study 2024”. Investors are integrating ESG factors into their investment strategies to enhance financial value. There is a rising demand for a thorough understanding of ESG risks and opportunities during M&A processes, with precise insights needed for post-deal alignment with ESG standards. As companies aim to meet stringent decarbonisation requirements, significant investments are essential, making ESG considerations critical in valuation and investment decisions.Robust ESG due diligence practices are becoming essen-tial to comply with evolving regulations. We see investors are increasingly motivated to ensure that targets meet growing ESG standards, driven by regulatory obligations and the push for sustainable investment.Our voice on ESGIn the past year, we continued to strengthen our internal ESG initiatives, amplifying our voice and commitment to making ESG an integral part of everything we do. FY24 marked the second year of our Leaders 2050 network, a professional network led by KPMG for future leaders in all sectors. The network’s mission is to educate and develop the leaders of the future to ensure a greener and more sustainable future, while nurturing a sense of togetherness and kinship in making the younger generations heard – particularly in the discussions about a greener future. This year, the network grew significantly, expanding from 350 to 550 members, reflecting its growing impact and reachWe also continued our collaboration with FINANS, culminating in the successful hosting of the second FINANS IMPACT Award show. Once again, we recognized and celebrated companies that are truly making a difference and leading the way in the realm of ESG. Building on this success, we are excited to replicate the initiative in FY25, where winners will be announced in the categories of Climate, Tech and Social. In FY24, we were also one of the premium sponsors of Årets SMV, an award show that celebrates small and medium-sized companies in Denmark, also on their ESG impact within the category “ESG Frontrunner of the year”.Time to deliver on the hype for tech and AI In KPMG, we experience AI reaching a new level of maturity. FY24 showed us that the ambitious businesses working with AI and new technologies are expecting a return on investment and transforming the hype into results.We see a heightened focus on our core AI delivery services in Data Engineering Optimization. Recognizing a clear market demand, we established a unit dedicated to Generative AI implementation and adoption. This unit features a Value Capture framework that we developed, which offers extensive training, hackathons and case testing with our clients. This framework for recording and monitoring business value creation ensures that clients can track their performance effectively.The market shows the way, and we find the toolsWe also continue to expand our advisory services in quantum computing, focusing on Quantum Risk Assessment and Optimization services using Quantum-inspired technologies. As market interest in these areas grows, so does our commitment to providing cutting-edge solutions. Machine learning is also poised for a resurgence in FY25, following two years of emphasis on Generative AI. Challenges faced by clients will increasingly necessitate the application of traditional machine learning techniques alongside new AI methodologies.In FY24, our advisory team significantly enhanced the focus on Implementation Services, strengthening our foundation and developing new AI offerings. To deliver tangible business value, we expanded our capabilities in Automation and Low Code solutions, ensuring they seamlessly fit into our clients’ enterprise architecture for easy implementation.Our strategy of both advising and delivering is exempli-fied by our successful creation of the first Generative AI applications for several key financial institutions, show-casing our expertise and capacity to drive significant impact by both advising our clients and implementing the solutions.Technology is doing the heavy lifting - Our professionals captain the shipFY24 saw KPMG auditors use advanced technology to enhance the audit process even further, while leading with expertise and integrity. Our approach leverages two interrelated dimensions to power audits with AI. First, AI automatically examines vast populations of data, identifying outliers and potential risks through machine learning. Second, deep digital audit knowledge is accessed and shared via OpenAI, making audits not only smarter but also more consistent.Despite the integration of AI in audits, the knowledge, skills and integrity of our professionals remain at the helm, guiding the direction and driving all our activities. AI serves as a virtual co-pilot, enabling us to gain deeper insights and facilitating better knowledge sharing within our team and with our clients. We have more than a hundred of our auditors trained in using our smart audit platform, KPMG Clara. KPMG Clara is an advanced, integrated audit platform that employs AI, machine learning and data analytics to enhance audit quality and e????ciency. It enables real-time collaboration, automates routine tasks, and provides customizable dashboards for clear audit progress tracking. Designed for global use and regulatory compliance, Clara o????ers deeper insights into nancial data, improving decision-making and client experience. By leveraging cutting-edge technology, KPMG Clara ensures a forward-looking, high-quality audit service.Clara delivers trusted audit proofOur KPMG Clara AI Transaction Scoring automates the analysis of all accounting materials. It detects unusual transactions through simultaneous checks on control points executed against every individual transaction. Every data point is controlled by GPT or GenAI technologies with Clara. With the implementation of KPMG Clara AI Transaction Scoring, we are making huge strides in audit efficiency and precision:100% Testing of Transactions: Ensuring that every single transaction within the population is scrutinized for auditing journal entries or specific account balances.Smart Risk Assessment: By risk scoring all transactions and using functionalities such as smart filtering and trend analysis, our auditors are more effective and efficient.Less Manual Testing: Reducing the number of samples required for manual follow-up, which supports productive discussions to rectify manual errors or ineffective controls.Anomaly Detection: Utilizing machine learning algorithms to identify transactions that deviate from approved and expected protocols, effectively finding the “needle in the haystack.”KPMG Clara AI Transaction Scoring significantly enhances our audit efficiency by delivering faster results. The advanced transaction scoring capabilities allow us to concentrate on outliers that require attention, eliminating the need for time-consuming, non-strategic manual testing.We see a tremendous opportunity to scale this technology to other areas, advancing towards continuous auditing. This approach will expedite the audit process, enabling earlier detection of issues and shortening the financial year-end audit cycles, while expanding internal audit coverage.Adopting AI is adapting to AIAs AI adoption accelerates, we recognize the significant ethical concerns and potential risks that come with its use. To become a scalable and agile AI-driven company within three to five years, clients are facing a multi-layered challenge. They are to establish robust data platforms and governance while actively working with AI. This complex undertaking has built new bridges within KPMG where we work to lift our clients into a place where compliance is a formality and progress is a natural next step.On a global level, KPMG has therefore developed the KPMG Trusted AI framework to strategically address the design, development, deployment and use of AI solutions, ensuring they are implemented responsibly and ethically to provide value with confidence.The age of AI heralds a multi-platform and multi-modal future, starting with the adoption and rollout of Generative AI assistant platforms. This paradigm shift, still in its infancy, demands substantial investments in adoption, training and value realization to be truly transformative. Major transformations driven by C-level executives, particularly CFOs, are beginning to take shape now, and with a two to three-year outlook we will see a new approach to digital change that differs significantly from what we see now. A stronger alliance with Microsoft In KPMG, we believe in collaboration as a major part of succeeding. We have been significantly strengthened in FY24 by our alliance with Microsoft, spanning global, regional and local levels. Our partnership includes Data and AI, new ways of working, Modern Work and the Power software suite. As a selected AI Partner for Microsoft, we are excited to co-host several events on AI and Data in spring 2025. While Microsoft remains a cornerstone of our global strategic partnerships, we also maintain key alliances with ServiceNow, SalesForce, SAP, Oracle and Workday. Locally in Denmark, notable partnerships include Boost.ai, BluePrism and 2021.ai, enhancing our ability to deliver comprehensive solutions to clients.From an audit perspective, our collaboration with Microsoft Azure OpenAI leverages KPMG’s proprietary audit and accounting expertise within a highly secure environment. We are actively integrating ChatGPT into KPMG Clara AI Chat, tailoring it specifically for our closed-circuit audit applications.Our culture is our strengthAt KPMG Denmark, our culture stands as a cornerstone of our identity and a key differentiator in the market. As a people-centric organization, our success is closely linked to the talent and dedication of our advisors and auditors. Over the past decade, we have cultivated a positive and open culture that fosters both personal and professional growth.This environment not only nurtures the potential of our workforce but also reinforces our commitment to excellence and client service and building a supportive and dynamic workplace where our people can thrive and deliver exemplary service.Fostering an inclusive workplaceA positive and inclusive workplace culture is at the foundation of our business, and for the second year, our Ally Groups have been an integral part of driving this mission forward. We take pride in the fact that the groups Parent Group, Gender Balance, Footprint Group, MindSpace and QueerSpace are entirely driven by our people and supported by the Leadership. Our Ally Groups create spaces where employees from diverse backgrounds feel valued and included and raise internal awareness on the issues they are passionate about through events and other initiatives.We strongly believe that KPMG is a better place because of our Ally Groups. We are proud to have employees who choose to spend time on causes that keep improving KPMG’s culture and have a positive impact on society. One of the tangible initiatives that has come out of our Gender Balance Ally Group this year has been to provide free sanitary products to all female employees by setting up Red Boxes on restrooms in the Copenhagen office, which has been well received by employees. In addition, the QueerSpace Ally Group hosted two allyship lunches with a focus on educating employees on the LGBTQIA+ community.The Parents Ally Group organised events in partnership with Inspired Beyond Babies, from baby brunches in our Copenhagen office to courses for employees on leave. In FY24, we also introduced Role Model Events, where guest speakers are invited to inspire employees on leadership, challenges they have overcome and career tips. In August 2024, Caroline Farberger gave an inspiring keynote, filling our atrium with her story of courage in her journey of transitioning from a man to a woman, and how this has impacted her life and transformed her role as CEO.To further advance the DEI agenda, we also recognise that collaborating with other companies offers valuable opportunities for mutual learning. As part of this commitment, we remain actively involved in the Female Leadership Academy, the Above and Beyond initiative, have signed the DI Diversity Pledge and are proud members of their Diversity Council.These are some of the initiatives we proudly undertake to demonstrate our commitment to gender equality and strive to create a supportive and inclusive environment for all genders. OUR VALUESCourage We think and act boldly.Integrity We do what is right.Excellence We never stop learning and improving.Together We respect each other and find strength in our differences.For Better We do what matters.Improving our feedback cultureWe aim to foster an open and honest feedback culture. Feedback training is integral at every level of KPMG in Denmark. In addition, upward feedback was part of the year-end process this year, enabling employees at all levels to give upwards feedback to their immediate leader. This helps our leaders and employees build stronger relationships based on trust and mutual respect. CEO and Senior Partner Mads Raahede also led by example by initiating monthly “Ask Me Anything” sessions, providing an open forum for direct communication with employees.Additionally, he set up sounding boards to facilitate discussions on business-related topics and gather valuable feedback on both predetermined and emergent issues. Furthermore, our leadership team conducted a comprehensive survey to assess the clarity and effectiveness of internal communication within KPMG, ensuring alignment with our organizational standards and objectives.A great place to workAnother way of gathering feedback is through our annual Global People Survey (GPS), which provides valuable insights into employee satisfaction. The GPS is a crucial instrument for us in terms of fostering a work culture that is educational, rewarding and collaborative. In FY24, we are proud to have reached a response rate of 92% (90% in FY23), with 80% of employees indicating that they would recommend KPMG as a “great place to work” a result that we have been upholding since last year (80% FY23). This survey serves as a beacon to continue to do better for our people.As a workplace, we believe that mental and emotional well-being is central in bringing the best version of yourself to work. We provide training to all our managers on how to check in with their employees, and we offer dialogue guides enabling all our leaders to conduct emphatic and trustful 1:1 conversations around well-being, work-life balance and supporting employees facing personal challenges.Taking responsibility for the people of KPMG In FY24, we focused on both the internal and external aspects that influence our people at KPMG, reflecting our commitment to creating an even better workplace. This included recruiting new talent and actively working to motivate, develop and empower our colleagues.A positive and inclusive workplace culture is the foundation of our business. We are driven by our values, embedding them into all aspects of our work — from client interactions to how we interact with each other as colleagues and leaders. We assess our employees using KPIs, but just as importantly, we also focus on KBIs (Key Behavioural Indicators) — the behaviours that drive performance and foster a positive, inclusive work environment. This enables everyone to bring their true selves to work and perform at their best.We are committed to continuously improving KPMG by raising our standards and ensuring we support our employees at every stage of their lives.Example of Key Behavioural Indicators in KPMG DenmarkActively support the well-being of team membersSupport and participate in social activities both at firm and service line levelContribute to proactive and positive communicationSupport the development of people by creating a learning cultureAct as a team player (show a willingness to assist team members and other teams) Take an active role in leadership for example by:• Fulfilling firmwide, function or service line leadership roles• Taking on the Koach role and ensuring fulfilment in accordance with the framework.One year with our Challenger AcademyAs we mark one year since the launch of our Challenger Academy, we are pleased to share that three successful modules have already been hosted with 119 employees participating. Our Challenger Academy is designed to ensure a strong onboarding experience at KPMG, build a robust professional network and foster a sense of belonging. The Challenger Academy aims to showcase the diverse opportunities within KPMG and create a pathway for continuous development and upskilling, especially for our early career talents. The experience shared by the facilitators, along with their insights, was crucial for my improved performance at the office moving forward. Additionally, the sense of belonging fostered during Module A, and the network built through this experience, were invaluable.”- Feedback from a participant in the KPMG Challenger Academy.With a focus on developing essential skills and a healthy culture, the programme is crafted to be agile and inclusive, enabling new joiners to participate soon after their start date and maximise their potential at KPMG. Feedback from participants and stakeholders has been overwhelmingly positive, with an impressive average rating of 8.5 out of 10 for the overall experience. Notably, the programme is contributing to improved retention among young professionals, further affirming its value.Attracting the best talentAt KPMG, recruiting talent with diverse backgrounds is a key priority. We focus on diversity throughout the recruitment process, ensuring our external communication highlights individuals from various backgrounds, academic disciplines, genders and more. Our goal is to attract a wide range of individuals — from students and young professionals to experienced hires — who bring unique perspectives and insights to KPMG. In FY24, we actively engaged with students by participating in more than 70 events and fairs across Denmark. In addition, we hosted numerous in-house events to give prospective talent a first-hand experience of our culture and the opportunity to engage directly with our employees. Therefore, we are pleased to report a 30% increase in applications from potential trainees and graduates/challengers compared to last year. KPMG Challenger academyModule A: How we work togetherA 3-day training trip abroad to expand the candidate’s professional network and provide insight into our ways of working. During Sustainable Impact Day, we engage in meaningful work while also taking part in workshops and training sessions to improve self- awareness and build connections with academy peers.Module B: KPMG core skillsUpskilling the candidate’s KPMG Core Skills - two days of intensive training at an offsite location focusing on essential skills crucial for success at KPMG.Module C: Personal developmentModule C focuses on personal development and how to build a long-term sustainable career. Over two days, the candidate joins training sessions together with their academy peers to gain insight into the impact they can make on the world around them.Client case :Økonomistyrelsen The project originated from Økonomistyrelsen’s strategic need to identify opportunities for improvement and pinpoint areas ripe for AI development. After systematically analysing their operations, we identified five clear recommendations to enhance efficiency and effec-tiveness. This initiative not only showcased the practical applications of AI within the public sector but also underscored our commitment to driving technological advancements that deliver measurable value.We wanted to get started with GenAI to demonstrate the potential for efficiency in the public sector and to lead the way. KPMG had a tested method that we chose to adopt, and it provided us with a quick way to get started, both technologically and, as it turned out even more importantly, on a human level.”- Brian Arreborg Hansen, Kontorchef i Økonomistyrelsen Client case :Transportministeriet KPMG assisted the Danish Ministry of Transport and a broad consortium of Danish municipalities and several infrastructure companies with a financial and organization-al analysis on how to implement storm surge protection in the Copenhagen metropol-itan area. The analysis was three-fold, and included identifying potential damages for households, businesses and critical infrastructure, establishing a financial method for contribution and payment collection from beneficiaries of the protection system, and assessing the most effective organizational setup. We recognized that the project demanded a team capable of navigating in an envi-ronment with numerous stakeholders and high complexity within many different professions of geodata simulations, finan-cial modeling, public law, organizational models, etc. KPMG assembled a skilled team that successfully delivered a model providing actionable insights for advanc-ing with the establishment of storm surge protection around the Copenhagen Har-bor.” - Lasse Mohr-Winterberg, Kontorchef at Transportministeriet Financial reviewDevelopment in activities and financial position In FY24, KPMG P/S realized revenue of DKK 1,028 million compared to DKK 939 million in FY23, an increase of DKK 42 million and corresponding to a growth of 9.4%. The growth comes from a purely organic expansion of our business. Our revenue growth is slightly above our expectations given the uncertainties and volatility in the markets, and the profit for FY24 was slightly above last year’s profit and within range of what was expected. Profit for the year was DKK 5 million compared to DKK 1.1 million in FY23. As KPMG is an equity partner-owned company, the remuneration to the equity partners in terms of their performance is included under Staff costs. In general, our results reflect our economic condition: our continued growth across our service lines, expanding services within audit, assurance, M&A, outsourcing and advisory services, especially within financial services, ESG and digitalization. We have incurred costs in relation to our organic growth, especially in regard to our hiring processes, attracting new talents and further investing in our people, facilities, tools and structures. These investments ensure the expanding delivery of high-quality services to our clients. Our net cashflow was overall positive, impacted mainly by changes in work-in-progress. At year end, our total assets amounted to DKK 352 million, compared to DKK 353 million last year, due to a higher cash flow from the changes in working capital.Financing and capital reservesOur equity amounted to DKK 78 million compared to DKK 88 million last year, following a cash capital decrease due to equity partners retiring from KPMG P/S, as well as retained earnings. The equity includes DKK 18.75 million in unpaid contributed capital. The solidity including unpaid capital reserves amounted to 22% of total assets, compared to 25% last year.Financial outlookWe expect to keep growing in the coming year as we continue to see a demand for our expanding services in the market. We continue to invest in our growth, attracting and retaining highly-skilled people and positioning ourselves to adapt to the changing market conditions. From a business point of view, we acknowledge that the upcoming FY25 still presents uncertainties due to the macro-geopolitical landscape, along with general conditions influenced by fluctuations in inflation and interest rates. As a result, we expect reported revenue growth to be on par for the upcoming financial year FY25, around 2-6%, and anticipate a net result in the range of DKK 2-6 million.Operational riskThe operational risks facing our business include those we have in common with other professional services firms. These include notably a deterioration in market conditions, attracting, developing and retaining the best talent in the market, claims and reputational damage caused by either an actual or a suspected failure to deliver services of appropriate quality, or by taking on inappropriate clients or engagements. It is vital for us to uphold a very high public trust with employees, clients, capital markets, regulators and society. We have implemented a system of quality management based on KPMG International’s Quality Framework, and we regularly conduct enterprise risk assessments where we identify potential risks and their impact on our business. Based on that, we plan and perform remediating actions as well as quality performance and risk compliance reviews.Financial riskOur financial risk management is centralized, and our policy is to continuously monitor our financial risks and take necessary actions to minimize financial risk. It is our policy not to engage in active speculation in financial risk. We are exposed to credit risk through our ongoing work-in-progress and receivables, which is mitigated by a broad and diverse client base across several industries. We are to a limited extent exposed to market risks such as changes in currencies and interests. The current economic situation does not pose an overall elevated credit risk, and Management has factored this into the accounting policy. We do not have any material credit risk on individual debtors. We are to a minor extent exposed to fluctuations in foreign currencies, mostly USD and EUR. Our sales transactions are mostly carried out in Danish Kroner.Events after the balance sheet dateNo events materially affecting the assessment of the annual report have occurred after the balance sheet date.