Groupm Denmark A/S

Ledelsesberetning

Financial highlightsDKK'0002023 2022202120202019Key figuresRevenue1,103,5591,074,7371,029,673687,884727,273Gross profit166,857169,459142,312126,634121,714Operating profit8,9992,2051,8153,1161,486Net financials1,407-1,204-301434-103Profit for the year103,2257201,1952,7571,050Total assets345,942205,898236,259189,343168,455Equity104,4551,23026,08420,62917,872Investment in property,plant and equipment5,9233,1993,41611,32711,967RatiosGross margin15.1%15.8%13.8%18.4%16.7%Return on equity195.3%5.3%5.1%14.3%6.1%Solvency ratio30.2%0.6%11.0%10.9%10.6%The financial ratios have been calculated as follows:Gross profit x 100Gross marginRevenueProfit/loss from ordinary activities after tax x 100Return on equityAverage equityEquity at year-end x 100Solvency ratioTotal equity and liabilities at year-endDevelopment in the yearThe Company's revenue for the financial year 2023 was TDKK 1,103,559, an increase of 2.7% from 2022where the revenue amounted to TDKK 1,074,737 which is slightly above forecasted revenue for 2023. The Company's income statement for 2023 shows a profit of TDKK 103,225 as against TDKK 720 in2022 which is above our expected range of profit for the year 2023. This is due to the dividend received inJune 2023 from the subsidiaries on the financial result 2022. The profit before financial income andexpenses for the year 2023 was TDKK 8,999 as against TDKK 2,205 in 2023. This is attributable to theefforts of the Company to realize efficiencies on our own operations by decreasing our other externalcosts and staff costs to counter the increase of the cost of sales.Equity in the Company's balance sheet at 31 December 2023 stood at TDKK 104,455 as against TDKK1,230 at 31 December 2022. The increase year over year is mainly attributable to the dividenddistribution from the subsidiaries that was proposed in their annual accounts for the year 2022. The financial performance for the year 2023 is deemed satisfactory and in line with expectations.Particular risksThere were no unusual risks associated with GroupM Denmark’s business. OutlookThe Company will continue the focus on investments to maintain its leading position in the data andtechnology driven communications market. We need to consider the pressure on the market and thegenerally low level of growth. Therefore, the forecast for 2024 shows a decrease in revenue at a cautiouslow 1 digit rate, with revenue ranging between TDKK 1,050,000 and TDKK 1,100,000. In addition, we willkeep putting efforts to realize efficiencies within our own operations in order to counter the negativeimpact of the pressure on our prices and increased costs of sales. The expected profit before financialincome and expenses for 2024 ranges between TDKK 1,000 and TDKK 2,000.Intellectual capital resourcesA substantial part of GroupM Denmark's business hinges on the existence of certain staff resources andtools which have been further developed throughout the year, both in terms of value-based managementand with respect to processes and structures for the knowledge-based work.Operating reviewWe take the confidentiality and safe handling of Client and Client consumer data for all our Clients veryseriously. We work under a documented security and privacy policy distributed to all staff at the time ofemployment and communicated to all employees annually. This is supplemented by Information SecurityAwareness Training requiring all employees to comply with a code of business conduct prohibitingdisclosure of Client confidential information. As part of our governance, risk, and compliance program, it is essential to abide by the IT securitypolicies, procedures and controls implemented and in operation to be effective and to ensureconfidentiality, integrity and availability. We operate under WPP Data Privacy and Security Charter (“TheCharter”). The Charter includes policies for data ethics, artificial intelligence and privacy and a bespokestandard set of controls (General Computing Controls (GCCs)) developed by WPP to be used on a globalbasis, derived from industry recognized standards and best practice including but not limited to ISO27001, ITIL, COSO and COBIT and deemed appropriate for our industry. The controls include, but arenot limited to, access management, physical security, server room access, network access security,malware prevention and monitoring, encryption, secure data backup & recovery, business continuity,secure data disposal, mobile device security, acceptable use, and awareness training. We represent ourlevel of compliance with The Charter by performing self-assessments and participating in related audits inline with WPP’s internal assurance program. Uncertainty relating to recognition and measurementRecognition and measurement in the Annual Report have not been subject to any uncertainty.Unusual eventsThe financial position at 31 December 2023 of the Company and the results of the activities of theCompany for the financial year for 2023 have not been affected by any unusual events.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balancesheet date.

Beskrivelse af virksomhedens væsentligste aktiviteter

Operating reviewMain activitiesGroupM DK is part of the GroupM network within the WPP Group, a global marketing solution provider.GroupM is a leading global media network comprising the following key agencies: Mindshare,EssenceMediacom, Wavemaker and Nexus Media Solutions.The primary activities are to provide services within administration, accounting and businessdevelopment to companies within the Group.