Incomas Holding ApS
Tangen 6, DK-8200 Aarhus N
Annual Report for 1 January - 31 December 2023
CVR No 38 38 10 83
The Annual Report was
presented and adoptet at the
Annual General Meeting of the
Company on 3 June 2024
Chairman of the General
Meeting
Contents
Management’s Statement
Independent Auditor’s Report
Company Information
Group Chart
Financial Highlights
Management’s Review
Consolidated Income Statement for the year ended 31 December
Consolidated Statement of comprehensive income for the year ended 31 December
Consolidated Balance Sheet as at 31 December
Consolidated Balance Sheet as at 31 December
Consolidated Statement of Changes in Equity for the Year ended 31 December
Consolidated Statement of Changes in Equity for the Year Ended 31 December
Consolidated Statement of Cash Flows for the Year Ended 31 December
Contents of the Notes to the Consolidated Financial Statements
Notes to the Financial Statements
Parent company
Parent Income Statement for the Year Ended 31 December
Parent Balance Sheet as at 31 December
Parent Balance Sheet as at 31 December
Parent Statement of Changes in Equity for the Year Ended 31 December
Parent Statement of Changes in Equity for the Year Ended 31 December
Contents of the Notes to the Consolidated Financial Statements
Notes to the Financial Statements
Executive Board
Board of Directors
CVR No 33 77 12 31
Company Information
CVR No: 38 38 10 83
The Company
Financial period: 1 January - 31 December
Incorporated: 1 February 2017
Financial year: 7 th financial year
Municipality of reg. Office: Aarhus
Board of Directors
Jepppe Bülow Højgaard, Chairman
Emil Kildegaard Gerhardt
Christian Bach
Jesper Severin Johanson
Executive Board
Jesper Severin Johanson
Christian Bach
Auditors
Group Chart
Financial Highlights
Seen over a five-year period, the development of the Group is described by the following financial highlights:
In
thousands
EUR
2023
2022
2021
2020
2019
Key figures
Profit/loss
Revenue
0
0
0
2.116.865
1.003.510
Gross profit
179.154
1.607.124
177.642
45.590
20.177
and tax (EBIT)
140.148
1.388.529
142.567
33.945
14.653
Net financials
27.076
-5.393 -1.868 -436 -127
Profit before tax (EBT)
167.224
1.383.136
140.699
33.509
14.526
Profit for the year
127.946
1.074.662
109.170
26.548
11.306
Balance sheet
Balance sheet total
1.102.449
1.460.608
274.339
87.419
33.793
Investment in property, plant and equipment
951
1.131
895
0
0
Equity
986.879
896.357
123.196
45.165
21.755
Cash flows
Cash flows from operating activities
-15.411
1.065.308
75.424
10.011
13.913
Cash flows from investing activities
-99.943 -201.481 -876 -21
0
Cash flows from financing activities
-227.685 -151.668 -9.104
4.239
0
Change in cash and cash equivalents for the year
-343.039
712.159
65.444
14.229
13.913
Number of employees - average for the year
166
122
90
64
36
Key ratios
Return on assets
12,7%
95,1%
52,0%
38,8%
43,4%
Solvency ratio
89,5%
61,4%
44,9%
51,7%
64,4%
Return
on
equity
13,6%
210,8%
129,7%
79,3%
70,2%
For definitions of financial key figures and ratios, please refer to note 1.
*The implementation of IFRS as from 1 January 2021 had an impact on the financial statements and key ratios for 2021 and onwards.
Comparative figures for 2019 and 2020 have not been restated and were prepared in accordance with Danish GAAP.
Company Information
InCommodities is a global technology company specializing in energy trading and renewables asset management. We
trade power, gas, and environmental products. We support renewable asset owners in managing and optimizing the outp
from their solar and wind assets. Our transactions balance the energy markets by matching supply and demand, ensuring
security of supply, and contributing to lower energy prices.
We have digitalized and automated every aspect of our value chain. We combine deep market insights with advanced
technologies, allowing us to efficiently move energy across time and geographies, manage renewables output, and store
energy until it is needed.
Founded in 2017 in Aarhus, Denmark, InCommodities has grown from four founders to 200+ people with diverse
nationalities and educational backgrounds. Headquartered in Aarhus, Denmark, we conduct trading activities across
Europe, North America, and Asia Pacific. We have grown exponentially since our establishment, making us one of the
world’s fastestgrowing energy trading companies.
A Letter from Our CEO
When we founded InCommodities in 2017, we set out with a bold ambition: to rethink how data and technology can be
used in energy trading, while fostering an exceptional workplace culture where every individual can thrive and excel. This
dual focus on leveraging technological innovation to simplify, automate and scale our business, alongside people-centri
our dedication to living out values laid the foundation for our journey.
Reflecting on the year 2023, I am proud to say that these cornerstones continue to be the pillars of our success. Our
financial performance, measured by earnings, stands as the third-best year in InCommodities’ history. Despite
experiencing significantly reduced volatility in the markets and lower prices compared to the unprecedented conditions of
the previous year, especially on the gas market, our 2023 results underscore our resilience and adaptability in navigating
and balancing the ever-changing energy markets, contributing to both a stable supply of energy and market efficiency.
Central to this achievement, are the talented and exceptional individuals who make up our team. Not only did we manage
a satifsfying financial | result, but we achieved our highest-ever people engagement rate, emphasizing the tangible impact
of our commitment to foster a workplace where people thrive. Despite significant growth, including welcoming 60+ new
colleagues out of a total team of 200+, I am immensely proud that we have remained steadfast in our commitment to
foster high levels of engagement. Our unique culture, the very foundation of InCommodities and what made us successful
in the first place, continues to flourish, remaining both robust and vibrant. I have always emphasized that culture is our
only true sustainable competitive advantage to drive our success, and I continue to believe that.
2023 has been a year of investing in our strategic objectives. In line with our commitment to supporting the green
transition to net zero, we intensified our focus on renewables and sustainable initiatives in 2023. This included expanding
our renewable portfolio, introducing new services and products, and earmarking a portion of our earnings to drive the
green transition forward. As part of our InCommodities Sustainable Investment Initiative, where up to 5% of our annual
earnings are allocated to advance the green transition, we have donated 25 million DKK to establish a new center | for
research in energy at Aarhus University, CoRE, dedicated to create new insight and knowledge about energy,
environmental and climate economics in Denmark and internationally.
The turmoil experienced in the energy markets in 2022, coupled with increased margin calls that required substantial
capital buffers and even led some energy traders to bankruptcy, left us uncertain about the potential aftereffects in 2023
and what scenarios to expect. This uncertainty prompted us to take proactive measures to strengthen our equity,
enhancing our ability to manage potential financial risks more effectively. Consequently, a significant portion of our
profits have been allocated towards fortifying our equity position, affecting return on equity compared to previous years.
Throughout the year, we have continued to navigate the evolving energy landscape with agility and innovation, utilizing
cutting-edge technology and strategic partnerships to drive a positive change. Our commitment to supporting the
transition towards net zero remains unwavering as we leverage our core strengths to pursue global opportunities to
maximize our impact. The dedication and expertise of our team members have been and will continue to be instrumental
in this progress.
On that note, I would like to take this opportunity to thank all our team members and partners for their support and
dedication. Together, we will continue to shape the future of energy trading and make a meaningful impact on the world.
Thank you for your interest in InCommodities, and happy reading.
Kind regards,
Jesper Severin Johanson, CEO
Business Perspectives 2023: Navigating the Dynamic Energy Landscape
Entering 2023, we anticipated a risk that the volatility and turbulence experienced in the energy markets during 2022
would persist in some form. However, the year unfolded to be more normal, stable, and less dramatic than some scenarios
had indicated. The European energy supply has proven to be more resilient and agile than anticipated.
In 2023, the energy markets returned to a more stable position, while we at InCommodities demonstrated the capacity of
driving growth through our core strengths: Our focused efforts in trading power and gas balancing supply and demand,
ensuring security of energy, and contributing to efficient energy markets, along with our commitment to support the green
transition towards net zero. This accomplishment was made possible by our team, supported by our advanced
technological foundation.
The previous year, 2022, marked a 100-year event characterized by unparalleled volatility in the markets and staggering
gas prices following the war in Ukraine. While we anticipated that 2023 would return to some semblance of normalcy, we
also expected that the turbulence from 2022 would continue to pose challenges. In reality, the energy crisis extended over
six quarters, spanning from late 2021 until the early spring of 2023.
2023 proved to resemble 2021 and previous years, revealing the European energy sector to be more resilient and agile
than initially anticipated. Despite the continued tragic situation in Ukraine and the strained relations between Russia and
the West, the gas market remained stable. Meanwhile, the situation in the Middle East grew increasingly unstable, posing
potential implications for energy markets. The fact that Europe did not experience as severe consequences as many in the
energy sector feared can be attributed to a mild winter on the continent and industrial demand destruction, leading to
reduced energy consumption across Europe coupled with improved LNG capacities and availability.
While the gas price experienced limited price fluctuations in 2023, the price of power remained low and stable as
expected. Lower prices, reduced volatility and fewer market dislocations resulted in less risk and consequently fewer
opportunities for an energy trading company like InCommodities. Despite this, our financial result in terms of earnings
was the third highest for the company since our founding in 2017.
Moreover, InCommodities found increasing opportunities in the market for renewables; an agenda we as a company, hold
close to our DNA. In 2023, we launched a new business area, Renewables Asset Management, specializing in power
purchase agreements. These agreements provide financial security to developers and owners of renewable energy
production in the German market, while we also manage the complexities of the physical MWh produced. By the end of
the year, our activity in this new business area rose by 200%, representing an increase from 410 to 1210 MW.
In 2023, we also laid the groundwork for our venture into other important business areas. We have established an
Environmental Product team focusing on biomethane, as we anticipate its growing significance in Europe’s energy mix as
a green alternative and an increasingly important diversifier for the EU’s gas supply. Additionally, the team focuses on the
carbon markets - both the compliance and voluntary market - as well as renewable certificates, including Guarantees of
Origin. These certificates assure buyers that the electricity generated comes from renewable energy sources.
Global presence
InCommodities continues to operate predominantly on a global scale, and 2023 was a year where the groundwork was laid
for expanding our business operations globally - both in Europe and through planned initiatives for our work in North
America and the Asian-Pacific region.
In the United States, we have expanded with more colleagues in our Austin, Texas office, and we aim to double the
number of our colleagues based in and around our office in Texas by end of 2025. In January 2024, we are opening an
office in Singapore and anticipate opening a Japan office later in the same year.
The past year further solidified our global reach, with 99% of revenue continuing to be generated outside of Denmark,
which serves as the home base for our headquarters. Furthermore, we have strived to enhance our presence through the
establishment and expansion of our international offices. This strategic move ensures that we have dedicated colleagues
on the ground in key markets, providing us with a stronger foundation for scaling our business and maximizing impact
across business areas in relevant markets.
"The energy markets were notably calmer in 2023 than the previous year, directly impacting our financial results. As
problem-solvers in the energy sector, our performance reflects the industry’s challenges. With 2023 presenting fewer
obstacles, our strong results stand out. I am proud of what our team has accomplished in a year with limited
opportunities."
Christian Bach, CFO
A different landscape
After a turbulent 2022 marked by extraordinary volatility, the energy trading industry has garnered increased public and
political attention. The energy crisis shed light on the vulnerabilities and complexities within the energy sector, prompting
stakeholders and regulators to scrutinize market dynamics and regulations more closely. We perceive this as a recognition
of our strategic importance and societal impact, as we play a crucial role in balancing supply and demand, ensuring energy
security, and stability. We have responded accordingly, dedicating more time to external communication. Following a 16-
18 month-long energy crisis, we have significantly improved our ability to manage the attention and challenges that come
with increased public and political scrutiny. The increased attention has positively impacted the public understanding of
our industry and the recognition of its importance.
The Renewable Energy Value Chain
Renewable energy is playing an increasingly significant role in the global economy by mitigating the impact of climate
change and ensuring energy security. There are several market players in this chain, each contributing their unique value
to accelerate the transition towards sustainable energy.
1.
Manufacturers of renewable energy solutions
These companies produce renewable energy technologies such as wind turbines and solar panels, which are essential for
the generation of clean energy.
2.
Project developers
Project developers and renewables asset owners manage the process of securing land, permits, financing, and ensure that
renewable energy projects meet environmental standards and deliver long-term value.
3.
Power purchase agreement providers
Power Purchase Agreements (PPA) providers facilitate the financing of renewable projects by assuming and managing the
risks associated with unstable renewable output. This enables asset owners to benefit from stable cash flow and reliable
management of physical electricity. Additionally, PPA providers can directly connect corporate customers with renewable
energy projects and facilitate ongoing energy supply. The utilization of corporate PPAs empowers companies to reduce
their carbon footprint, accomplish sustainability goals, and stabilize energy costs.
4.
Market
The energy market serves as the backbone of the liberalized energy industry, enabling transportation of energy across
different geographies and time periods to balance supply and demand, as well as providing liquid markets to hedge
against exposure to energy price fluctuations.
5.
Balance responsible party
The main role of a BRP is to forecast, schedule, and balance the power demand by purchasing power in the market that
includes the renewable output.
6.
Supply companies Energy
supply companies purchase electricity via a BRP and distribute it to households and businesses, ensuring efficient and
reliable delivery to the End users.
7.
End users
End users include residential, commercial and industrial customers.
Our Numbers: Energy Traded
InCommodities operates in 16 gas markets and 35 power markets across Europe, Asia Pacific, and North America,
engaging in continuous trading year-round. In 2023, the energy markets experienced a return to stability, characterized by
decreased volatility and notably lower demand compared to the turbulent conditions of 2022. This shift is evident in the
volume of energy traded throughout 2023 compared to 2022. Building on our momentum from previous years, including
2021, InCommodities continued to increase its share of energy traded in the markets where we are present.
Our Numbers: Earnings Before Tax
In 2023, we achieved an EBT of EUR 167,224 million. While this represents a significant decrease compared to the 2022
EBT, it remains a very satisfying result, indicating our strong capability to generate profit even in market conditions with
low volatility and limited opportunities.
Strategy: Keeping a Fixed Eye on Our Founding Principles
In our strategic outlook for the past year, we focused strongly on the key elements that have contributed to our success,
and we will maintain this focus in the years to come.
This includes our commitment to balance the energy market of tomorrow to make the transition toward net zero possible.
Our approach revolves around leveraging cutting-edge technologies and cultivating an innovative company culture where
people thrive and perform. Our ambition is global presence, albeit reliant on liberalized and open markets for optimal
performance. Remaining true to our core belief of supporting net zero, we trade only in energy sources that we deem
essential for facilitating the transition to a sustainable future, including power, certificates, and natural gas, which we
consider a crucial transitional fuel.
Attracting the right talent
The success of InCommodities rests entirely on a team of diverse, dedicated and talented people. To ensure continued
success, we prioritize retaining and engaging our current team members while also seeking to attract new, highly skilled
colleagues to | join us in our global growth efforts. It is a strategic priority to continue our co-ownership model, offering
shares and warrants in the company to our people. Furthermore, the personal and professional growth and development
of our people and an intense focus on shared values and social activities stays at the core of InCommodities.
The continuation of our flat hierarchy structure and distributed decision-making is a top priority, ensuring agile and fast
decision-making - a significance that only grows as the organization becomes larger and more global. However, as the
organization expands, new opportunities arise to facilitate job satisfaction and nurture talent. Increasingly, we can offer
internal mobility across geographies, allowing our people to move within teams, gaining insights into the value chain and
our business. This mobility can lead to individuals transitioning to new roles or areas, supporting their growth and
development.
The technological edge
InCommodities is not just an energy trader - we are a tech company utilizing advanced technologies to predict and analyze
the energy market, while optimizing trading strategies and automating transactions. Technological development requires
a constant focus and continued investment. Embracing a platform-centric approach, we have restructured our framework
to drive innovation within our data platforms, creating the conditions for continuous growth. Forward-thinking
investments in cutting-edge technology stacks position us to meet future demands in algorithmic trading, fortifying our
technological foundation for enhanced market responsiveness.
“Technology is our cornerstone in energy trading, empowering us to shape the future. With cutting-edge investments,
we are positioned to lead with unwavering determination and technological innovation. ”
Lars Kühn, CIO
Supporting the green transition
As the global energy landscape swiftly transitions towards sustainable solutions to achieve net zero ambitions, the demand
for balanced and efficient energy markets is on the rise. This shift presents new business opportunities for us where we
can apply our expertise and capitalize on the principles of our digital forecasting and trading platform. Furthermore, we
are dedicated to support the green transition through our 5% commitment, InCommodities Sustainable Investment
Initiative.
Scaling renewables asset management business
In 2023, we continued to build and scale our strategic focus on renewables asset management. The business area was
initiated in 2022, and the first PPA (power purchase agreements) contracts took effect in January 2023. PPA contracts
provide insurance for wind farms and other renewable energy producers against market risks, including fluctuating
energy prices associated with green energy, which relies on the sun shining and the wind blowing.
During 2023, InCommodities continuously expanded its portfolio of PPA contracts through both existing and new
customer relationships. As of January 2024, InCommodities has increased its portfolio from 410 MW to 1210 MW in
Germany. We see great potential in the Nordics and APAC regions, specifically Denmark, Sweden, Finland, and Japan.
These markets will be focal points in 2024 as we intensify our efforts to expand our PPA business across them.
In 2023, we expanded our power purchase agreement services to include various fixed-price products and Guarantee of
Origin (GoO) certificates, alongside our existing balancing risk management agreements. These services not only generate
revenue but also ensure stability for renewable energy owners, safeguarding their revenue from price fluctuations.
Environmental products
In 2023, we also laid the groundwork for our venture into other important business areas. We have established an
Environmental Product team focusing on biomethane, as we anticipate its growing significance in Europe’s energy mix as
a green alternative and an increasingly important diversifier for the EU’s gas supply. Additionally, the team focuses on the
carbon markets - both regarding allowances for compliance and voluntary emission reductions - as well as renewable
energy certificates including Guarantees of Origin. These certificates attest the renewable origin of energy and enable
tracking of renewable power production from production to consumption, giving producers flexibility while promoting
competitiveness for sustainable sources in the market. This provides additional income for the producer, thereby
incentivizing renewable energy production which can help make renewable energy production more profitable to invest
in.
"Reaching the global targets for net zero requires significant investments into renewable energy. We are proud to play a
central part in supporting the realization of these investments by supporting our customers in managing the risks
associated with wind and solar assets in the form of PPAs. We believe that our high focus on automation, quantitative
capabilities and digitization will provide great opportunities for InCommodities and our customers."
Andreas Juul Jensen, Head of Renewables Asset Management
Establishing a center for research in energy
As committed in the InCommodities Sustainable Investment Initiative launched in 2022, we continuously target to spend
5% of our yearly earnings on investments in initiatives that support the transition towards net zero.
InCommodities donated DKK 25 million to the establishment of the Center for Research in Energy (CoRE) at Aarhus
University which launched on January 1st, 2024. The research center will unite research in energy, environmental and
climate economics with a focus on quantitative methods and their development, thus providing the knowledge upon
which future energy markets can be built. It will bring together various disciplines, reflecting the nature of energy systems,
educate a considerable number of PhDs, host international conferences in Aarhus, and collaborate with the most
impactful researchers in the world.
Aarhus is home to a cluster of energy trading companies that have increased their market share in the global energy
market in recent years. The majority of the sector’s talent pool is highly educated, and the establishment of CoRE
contributes positively to the sector’s future development scope within sustainability.
We firmly believe in fostering knowledge about the global energy markets and their importance to the green transition is
crucial for accelerating the transition towards net zero. The complexity of the energy markets and the increased level of
sustainable energy sources calls for research and education at a new level. Supporting an innovative and future-oriented
research center such as CoRE enables us to contribute to this goal.
"Climate change and the green transition are the major societal challenges of our time. Energy consumption is a critical
component of the global economy but also one of the main causes of climate change. If we are to succeed with the green
transition and achieve more sustainable energy consumption, it is absolutely crucial that we have in-depth
understanding of the mechanisms in those markets, where the energy is converted and traded. Focused research in this
area as well as in other aspects of energy markets and the climate will now become a strategic investment area at the
department and at CoRE."
Niels Haldrup, Center leader, CoRE
InCommodities Sustainable Investment initiative
Through the InCommodities Sustainable Investment Initiative launched in 2022, we are committed to invest up to 5% of
our annual earnings in infrastructure, knowledge, companies, or renewable assets that support the transition towards net
zero. In 2023, in addition to our donation to the establishment of CoRE, we invested in Baltic forestry and Article 9 funds,
which focus on sustainable investments. It is a lengthy and meticulous process of selecting projects that align with our
aspirations, but we remain committed to our dedication to support the green transition, striving to identify sustainable
long-lasting projects where our impact can be longlasting.
In 2022 we invested in a solar project in Favrskov municipality outside Aarhus, approximately 15km from our
headquarters. We plan to transform a closed plant nursery with a capacity of up to 5.5 MW solar park, which will be able
to power up to 1,200 households. Despite our initial target for operational readiness was set for 2024, unforeseen delays
are casting uncertainty over the timeline for full operational deployment of the park. However, despite these challenges,
we remain committed to seeing the project through to completion.
Risk Management: Being Aware of Our Potential Pitfalls
InCommodities employs a thorough risk management framework to ensure efficient governance and procedures. This
approach to risk management is deeply ingrained in every part of the organization, with a risk policy reviewed at least
once a year.
Within InCommodities, risk management operates on two tiers: strategic and operational. Strategic considerations and
decisions form the basis for defining operational risk management protocols. These include aspects such as partnership
structures, core values, leadership principles, recruitment and people engagement policies, and outsourcing guidelines.
Our policies are documented to include the key points suggested by FIA Principal Traders Group. In addition, we adhere
to the guidelines and principles proposed by the Committee of European Banking Supervisors for governance of
operational risk.
Market risk
Market risk is characterized as the risk of open positions changing value due to changes in supply, demand, and other
market conditions.
In 2023, we witnessed improved signs of stabilization and a notable decrease in volatility. This followed a turbulent 2022
marked by record-high price fluctuations, largely influenced by the lingering effects of COVID-19 stimulus packages,
Russia’s invasion of Ukraine, and various geopolitical tensions.
Several key factors impacted and explained the price stabilization in 2023, including but not limited to:
▪
Mild winter conditions in Europe from late 2022 to early 2023 led to lower-than-expected energy demand. With ample
gas in storage, the pressure eased, stabiliza-tion ultimately contributing to price
▪
An increased supply of liquid natural gas in 2023, with a significant share of imports coming from the US.
▪
Significantly lower demand, which persisted even as prices decreased throughout the year.
These factors resulted in unseasonably filled storages by the end of Q1 2023, with storage inventories reaching record
highs by the end of the injection season.
InCommodities has implemented several procedures to continuously maintain an appropriate level of market risk. Risk
mandates are defined at several levels in the company based on Value at Risk (VaR) measurements with daily and monthly
limits. Controlling mechanisms are integrated in the trading platform.
Liquidity risk
Liquidity risk is defined as InCommodities’ risk of not being able to meet its payment obligations with partners and
trading partners. Our experience is that we are operating in a market with more rigorous demands on capital; a natural
after-effect following the immense liquidity challenges many market participants experienced in 2022, when requirements
were up to 50 times greater than previously seen.
Without liquidity, we as energy traders cannot trade or run our core business, which is why we give this area top priority.
For the same reason, we run a closely monitored forecasting and controlling operation, focused on our equity ratio and
leverage of our balance sheet, so that we are constantly able to predict the need for capital.
During periods of wide-ranging market volatility, the cash requirements for margins are significantly increased to
maintain an unchanged activity level. In addition to our procedures for trading limits, etc., we manage this by maintaining
a close dialogue with our permanent banking partners.
Our profitability has enabled us to continuously amass a steadily increasing capital reserve, which cushions us against
future periods of crisis involving volatile markets.
Compliance risk
At InCommodities, we recognize a spectrum of risks inherent in our operations, which demand vigilant oversight and
proactive management to safeguard our stability and reputation. Compliance risk looms as a significant concern across
our diverse business domains. Adherence to an array of laws and regulations is imperative and failure to comply not only
poses legal repercussions but also threatens our standing in the market, underscoring the critical need for robust
compliance mechanisms.
People risk
At InCommodities, we believe our people and their talent are crucial to our continued success, and any disruptions
present potential challenges. This includes the risk of hiring the wrong talent and the threat of losing key individuals
whose expertise drives our operations forward. In this regard, we are pleased to report positive trends, with a record-high
people score of 9.3 out of 10 indicating high satisfaction, minimal churn rates, and an increasing ability to attract top-tier
global talent. Nonetheless, we remain vigilant in our efforts to mitigate any potential disruptions to our talented
workforce.
Geopolitical tensions and risk of cyber-attacks
Political risks also cast a shadow over our operations, with geopolitical tensions and conflicts in regions such as the Middle
East and North Africa (MENA) posing potential threats. These upheavals can trigger fluctuations in energy prices,
impacting our trading activities and financial performance. Additionally, the growing risk of cyber-attacks targeting the
energy sector presents a pressing concern. An energy system lacking resilience against cyber threats not only jeopardizes
operational continuity but also raises broader security implications for the sector as a whole.
While our focus primarily revolves around protecting our own systems and data, we are acutely aware of the broader
cybersecurity threats facing the energy sector. In response, InCommodities stays alert, continuously assessing and
fortifying our cyber defenses to mitigate the risk of potential breaches.
At InCommodities, we recognize the multifaceted nature of risks inherent in the energy trading sector. From compliance
obligations to human capital management and geopolitical uncertainties, as well as the ever-present threat of cyber-
attacks, we remain committed to proactive risk management strategies to safeguard our operations, stakeholders, and
reputation. By remaining vigilant and leveraging innovative solutions, we aim to navigate these challenges effectively and
sustainably drive our business forward. We do so by actively training our people in proactive risk management.
People & Culture: The DNA of InCommodities
Our most important and long-term sustainable competitive advantage is our culture. It starts and ends with our people.
Our ambition is clear: we want to be the best workplace for the best people. It is a vision we share with most other
companies, but where we differ is our approach.
Our commitment to creating an exceptional workplace that is nothing like the average is evident in everything we do: from
our flat organizational decision-making structure, distributed how we live our company purpose and values, and the social
events we organize, to how we celebrate our successes.
“I’m of the core belief that culture is the only long-term competitive advantage a company can have. What matters is the
way we are with each other. ”
Jesper Severin Johanson, CEO
Value: Honesty
- We are a team driven by our ambition to be the best: The best company, the best team, the best people.
We facilitate this process by being direct and honest with each other. We see honesty as the key element to growth, and we
use this feedback, sparring, and direct communication to excel on every level.
Value: Transparency
- InCommodities was built on the need to break free from the status quo; old management
structures and top-down leadership where secrecy is prevalent, and insecurity and fear are drivers. We see transparency as
the key element to trust. We encourage and invite the entire team to join us at the table, because only with the doors
opened to all, do we become empowered.
Value: Rethink -
The only constant is change. Our ability to be an agile organization that welcomes change makes us
resilient. We see rethink as the key element of our strength. We seek to improve and to realize that improvement is a
circular process. Think, then rethink.
Purpose: We Advance Together
-
Advance
expresses our constant appetite to move forward, develop and challenge ourselves with determination, mastery
and technology.
-
Together
emphasizes the way we advance and how we believe we will create the strongest results of all, through our
culture, community and autonomy.
Vision:
To pioneer algorithmic trading and renewables management
Increased engagement during growth
For the same reasons mentioned on the previous page, we invest a substantial amount of time and energy in recruiting
and onboarding. This is a crucial priority for us as a growing company. In 2023, we welcomed 60 new colleagues, bringing
our headcount to a total of 204 by year- end, both at our headquarters in Denmark and abroad, reflecting our commitment
to global expansion.
In our pursuit of creating an exceptional workplace where people thrive, we actively track the job satisfaction and
engagement levels of our team members, considering it a crucial metric to ensure we meet our aspirations. In 2023, we
ended the year with a record- breaking engagement score of 9.3, which stands as a testament to our people’s thriving
engagement, even amidst strong continuous growth. We are very proud of this achievement as we believe it reflects our
commitment to foster an environment where each individual feels valued and heard. We also see it as a confirmation of
our strong commitment to live out our values and cultural beliefs. By decentralizing decision- making to each individual,
we empower our team members to make meaningful contributions, thereby fostering an environment conducive to both
personal growth and exceptional performance.
In 2023, we launched a series of initiatives focusing on nurturing the growth and development of our team members and
prioritizing their overall health and well-being - both physically and mentally. These are fundamental elements that define
our commitment to being an exceptional workplace, one that rethinks the ordinary, where people can grow, thrive and
perform. In the following, you can read about some of these initiatives.
“It starts with us and ends with us. ‘We Advance Together’. And central, we have advancement. I think it sets the tone
for how we wish to reach our vision. ”
Stefan Milton Bache, Head og Quantitative Solutions
Rethinking Health & Well-being
In January 2023, we kicked off our most ambitious Health & Well-being offer since the founding of InCommodities. The
program has included running programs, group training, health checks, an Office Athletes program, office exercises
circuits, etc. throughout the year.
In 2023, we were pleased to see extraordinary commitment to the different initiatives. For instance, we observed a 71%
engagement among our colleagues in health checks, followed by 70% engagement of those participants in follow-up
sessions, maintaining their engagement over time. 88% of the attendants in the sessions exercise regularly. Initially, 11%
had low self-rated health, which is already a low number, we managed to decrease this rate to only 5% during 2023. We
are impressed with these numbers and our colleagues’ dedication to improving their health or maintaining strong health.
The Health and Well-being program will continue in 2024.
“I wanted to work on my health, from exercising to eating right and getting enough sleep. The immediate benefits are
obvious: I lost 8 kilograms of fat and gained some muscle on the side. Additionally, when I exercise, I recover faster. I
am also more focused at work, and my ability to tune out annoying noises has improved significantly. ”
Ivar de Hoogt, Quantitative Gas Trader
Rethinking people advancement
In 2023, we kicked off our People Advancement Program, which focuses solely on personal development and growth,
including how to identify and overcome barriers that hinder progress or reaching one’s full potential. The program offers a
framework for self-development, thus differentiating itself from traditional leadership or talent development programs.
The program consists of three main focal points: Grow self-awareness, build emotional intelligence, and handle feedback
and conflicts.
The Advancement Program is one of several initiatives directly emanating from our core values. The first cohort started
their program in May 2023, and our goal is to continue creating new cohorts every six months targeting team members
that want to commit the time and effort into enhancing their self-awareness and working with areas that require
development.
We Advance Together Days ‘23
In 2023, we introduced a new concept “We Advance Together Days” which is designed to broaden our mindset, make us
challenge the status quo and rethink how we can do things differently to support our purpose “We Advance Together”.
Over 24 intensive hours, we engage in team-building activities and draw on inspiration from renowned speakers, each an
expert in their fields. In 2023, these speakers featured Morten Münster, Raymond Hettinger, Mathias Brandewinder,
Steve Ward and Caroline Farberger.
In addition to We Advance Together Days, which targets the whole company, we consistently strive to acquire fresh
perspectives and enhance our skills, approaches and mindset to keep improving our operations and pushing development
forward, both within individual teams and across teams.
Social Events Throughout the Year
Fostering a sense of community and belonging is deeply grounded in our purpose and cultural belief. We believe strong
interpersonal connections with one’s colleagues creates an environment for high engagement and performance.
Consequently, we focus on social events throughout the year, such as summer- and Christmas parties, familiy day trips
and team-building activities.
ESG - Introduction: Meeting Expectations and Standards - Both Yours and Ours
We take pride in doing our best when it comes to our ESG work. We are on a journey towards becoming a strong ESG
player in our industry.
Reflecting our key values of Honesty, Transparency, and Rethink, we want our ESG framework to focus on adding value to
our business. We firmly believe that a thoroughly defined ESG framework and strategy will benefit our ongoing business
developments and provide a new level of transparency for all stakeholders regarding our ESG framework. We
acknowledge the amount of work that still lies ahead solution-oriente and will approach it with the same and determined
mindset as we do with all challenges. Furthermore, we aim to provide our stakeholders with relevant information in the
same transparent and honest manner as always.
We remain committed to doing our part when it comes to operating a sustainable business and reducing our negative
climate impact in any way possible. In 2023, our sustainable initiatives covered launching new business areas focusing on
renewables, supporting the establishment of a new research center, CoRE, at Aarhus University, maintaining our high
expectations for our work environment and the health and well-being of our people, and so much more.
Whistleblower scheme
Living up to high standards requires going the extra mile. We implemented our whistleblower scheme in 2023, but we
made sure to bring it to the next level. We chose to make the whistleblower scheme accessible to any third parties with a
relationship to our organization, not just our colleagues. External stakeholders such as business partners, suppliers,
customers, or other external parties can also submit a report.
The scheme is accessible via our website, which means it is globally accessible. Furthermore, reports can be made 100%
anonymously. While complete anonymity might impact our ability to adequately investigate the report, we believe it
ensures the absolute protection of the whistleblower and we hope it will encourage the use of the whistleblower scheme.
Reports are received by PricewaterhouseCoopers (PwC), which serves as an independent third party. After evaluating the
report, PwC forwards the concern to the Whistleblower Unit of InCommodities. The Whistleblower Unit is a group of
colleagues responsible for the whistleblower scheme as a whole but also the diligent and timely investigation of any
whistleblower reports. Senior leadership participates in the Whistleblower Unit.
There have been no whistleblower reports in 2023.
Composition of the board and other levels of management
This report-in following section entail the statutory by §99b of the Danish Financial Statements Act.
We strive to foster an equal workplace where all colleagues back-ground - regardless of gender, ethnic sexual orientation,
and religion - are likely to thrive and succeed in their jobs.
Board of Directors
2023
2024
2025
2026
2027
Total number of members
Underrepresented gender in numbers
0
Underrepresented gender in %
Target in %
Target deadline
-
Other Management Levels
Total number
Underrepresented gender in numbers
5
Underrepresented gender in %
Target in %
Target deadline
We acknowledge that it is not a change that will happen overnight or within a short period but requires continuous efforts.
However, we hope our work in this area leads to an increase in female applicants. Ultimately, a broader field of candidates
helps create a better balance between genders in the departments and managerial positions. The benefits derived from a
better balance between genders are commonly known and proven, and we expect to benefit similarly, perhaps even to a
greater extent, due to our unique culture.
Ownership structure
We believe in co-ownership and that the success of InCommodities should be shared with the people who have created it,
our people. Today, 85% of the company is owned by people actively involved in our corporate operations, with the
majority held by our four Gold-ma founders and with minority ownership by Sachs and selected investors.
The ownership structure of InCommodities reflects our ambition to create engagement throughout the organization. We
firmly believe co-ownership increases engagement, motivation, job satisfaction, and compliance.
It is our ambition to increase the number of shares held by non-founding team members, aiming to double that number in
the coming years. Everyone in the organization, including student assistants, is given access to our warrant program that
can be converted into shares.
Outlook: Enabling the Energy Transition
After reflecting on the past year, we now look ahead and anticipate a more stable energy supply as the backbone of our
operations. However, we must remain vigilant, recognizing the potential for fluctuations arising from changes in the
geopolitical landscape. Should such shifts occur, the role of energy traders is expected to amplify, underscoring our
sector’s significance in navigating the dynamic energy markets.
Although we have returned to a semblance of normalcy, the coming years present a landscape marked by anticipated
volatility and challenges in the European energy supply. The delicate balance of renewables introduces an element of
instability, compounded by a potential shortfall in nuclear power.
Nevertheless, we envision an opportunity in renewables, positioning it as a key factor in the European energy mix. In
tandem, we are committed to expanding our global footprint, both marketwise and through the establishment of new
offices.
For energy traders, the changes in the world’s energy mix to reach net zero offers substantial growth potential for us and
our sector, as the sector is ever more important to enable the transition.
Our strategic approach involves the handling of fluctuations in energy prices, necessitating a significant capital reserve in
times of market volatility and an uncertain future. These “quiet” years serve as a period dedicated to fortifying our
financial buffer and internal processes, ensuring we are well- equipped to navigate and address any potential energy crisis
on the horizon.
In the coming years, we expect more normalized markets but also acknowledge the challenges posed by limited progress
in diversifying the energy mix. As a company, we are committed to mitigating the negative impacts of these challenges
while actively supporting the transition towards net zero.
2
5
/
Consolidated income statement
for the year ended 31 December
In thousands EUR
Notes
2023 2022
Fair value adjustments of financial and physical energy contracts
3
Gross profit
Other external expenses
-14.019
-8.282
Staff costs
4
-24.560 -210.006
Depreciation
-427 -307
Operating profit before financial income and expenses (EBIT)
Financial income
3, 5
Financial expenses
3, 5
-20.035 -22.920
Profit before tax (EBT)
Tax on profit for the year
6
-39.278
-308.474
Net profit for the year
Total net profit for the period is attributable to the owners of
Incomas Holding ApS
2
6
/
Consolidated statement of comprehensive income
for the year ended 31 December
In thousands EUR
Notes
2023 2022
Profit for the year
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
-715 -328
Other comprehensive income
Other comprehensive income for the period, net of tax
-374
-328
Total comprehensive income for the period
Total comprehensive income for the period is attributable to the owners of Incomas
Holding ApS
2
7
/
Consolidated
balance
sheet
as at 31 December
In thousands EUR
Notes
2023
2022
Assets
Non-current assets
Land and buildings
Right-of-use assets
7
Deposits
Total non-current assets
Current assets
Inventories
8
Trade receivables
9
Other receivables
Derivatives
10
Prepayments
Asset investment
10
Cash and cash equivalents
Total current assets
Total assets
2
8
/
Consolidated
balance
sheet
as at 31 December
In thousands EUR
Notes
2023
2022
Equity
16
Share capital
Share premium account
Reserve for exchange rate adjustments
-1.191 -476
Retained earnings
Proposed dividend for the year
Total equity
Liabilities
Non-current liabilities
Provisions
13
Lease liabilities
7
Payables to owners and Management
Credit institutions
11
Total non-current liabilities
Current liabilities
Lease liabilities
7
Credit instiutions
11
Trade payables
Derivatives
10
Corporation tax
Other payables
11
Total current liabilities
Total liabilities
Total liabilities and equity
29
/
Consolidated statement of changes in equity
for the year ended 31 December
In thousands EUR
Share capital
Share Premium
account
Reserve for exchange
rate adjustments
Retained earnings
Proposed dividend
for the year
Total Equity
As at 1 January 2023
-476
Profit for the period 0 0
Exchange adjustments 0 0
-715 0
Other comprehensive income 0 0
Total comprehensive income 0 0
-715
Transactions with owners in their capacity as
owners
Cash capital increase
Share-based payments 0 0
Tax on share-based payments 0 0
Extraordinary dividends paid 0 0
Proposed dividend for the year 0 0
As at 31 December 2023 930 21.436
-1.191
30
/
Consolidated statement of changes in equity
for the year ended 31 December
In thousands EUR
Share capital
Share Premium
account
Reserve for exchange
rate adjustments
Retained earnings
Total Equity
As at 1 January 2022
-148
Profit for the period 0 0
Other comprehensive income 0 0
Exchange adjustments 0 0
-328 0 -328
Total comprehensive income 0 0
-328 1.074.662 1.074.334
Transactions with owners in their
capacity as owners
Cash
Capital
Increase
Share-based payments 0 0 0 -7.575 -7.575
Tax on Share-based payments 0 0 0 1.694 1.694
Extraordinary dividends paid 0 0 0 -304.175 -304.175
As at 31 December 2022 917 8.873 -476 887.043 896.357
31/
Consolidated statement of cash flows
for the year ended 31 December
In thousands EUR
Notes
2023 2022
Cash flows from operating activities
Net profit for the year
Adjustments
15
Changes in net working capital
15
-27.881 -109.335
Financial income received
5
Financial expenses paid
5
-9.524 -22.920
Corporation tax paid
6
-134.800 -208.472
Net cash inflow from operating activities
-15.411
Cash flows from investing activities
Payment for fixed assets etc.
-951 -1.131
Current investment assets
-98.992 -200.350
Net cash outflow from investing activities
-99.943
-201.481
Cash flows from financing activities
Change of loans from credit institutions
11
Lease payments
-436 -130
Other long-term debt payment
-178.200 -21.258
Cash capital increase
Share based payments
Raising of other long-term debt
11
Dividends paid to company's shareholders
-50.000 -304.175
Net cash outflow from financing activities
-227.685
-151.668
Net increase in cash and cash equivalents
-343.039
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of year
32/
Contents of the notes to the consolidated financial statements
Note 1 Summary of significant accounting policies
Note 2
Critical estimates and judgements
Note 3
Fair value adjustments
Note 4
Staff costs
Note 5
Financial income and expenses
Note 6
Income tax expense
Note 7
Leases
Note 8
Inventories
Note 9
Trade receivables
Note 10
Fair value
Note 11
Financial assets and financial liabilities
Note 12
Financial risk management
Note 13
Provisions
Note 14
Offsetting financial assets and financial liabilities
Note 15
Cash flow specifications
Note 16
Share capital
Note 17 Capital management
Note 18 Contingent liabilities and commitments
Note 19
Related party transactions
Note 20
Interests in other entities
Note 21
Fee to auditors appointed at the general meeting
Note 22
Subsequent events
33/
Note 1 Summary of significant accounting policies
The consolidated financial statements of Incomas Holding ApS ('the Group') for the year ended 31 December 2023 were authorised
for issue in accordance with a resolution of the directors on 15 May 2024.
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU as well as additional the Danish disclosure requirements applying to entities of reporting
class C for large enterprises.
The consolidated financial statements have been prepared on a historical cost basis, except for the following financial assets and
liabilities, which are measured at fair value.
-
Contracts for sale and purchase of gas, power and capacities which are not entered into for the Group's own use.
-
Derivative financial instruments.
The consolidated financial statements are presented in Euro (EUR) and all values are rounded to the nearest thousand, except when
otherwise indicated.
New standards and interpretations and not yet adopted
The Group has adopted relevant new or amended standards (IFRS) and interpretations (IFRIC), which have been adopted by the
EU and which are effective for the financial year January 1 – December 31, 2023. The following has been adopted:
•
Amendments to IAS 8 Accounting policies: Changes in Accounting Estimates and Errors - Definition of Accounting Estimates.
•
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction.
•
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies.
•
Amendments to IAS 12 Income Taxes: International Tax Reform - Pillar Two Model Rules.
•
New standard; IFRS 17 Insurance Contracts.
In assessment of the Group, the new or amended standards and interpretations have neither had a material impact on the
consolidated financial statements nor on the separate financial statements in 2023.
Certain new accounting standards, amendments to accounting standards and interpretations that have been published are not
mandatory for December 31, 2023 reporting periods and have not been early adopted by the Group. These standards include:
•
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non-
current liabilities with covenants (January 1, 2024, not yet endorsed by the EU).
•
Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements (January 1, 2024, not yet endorsed by the EU).
•
Amendments to IAS 21, Lack of Exchangeability (January 1, 2025, not yet endorsed by the EU).
The listed amendments are not expected to have a material impact on the recognition and measurement of the balance sheet at
January 1, 2024, neither in terms of the consolidated financial statements nor in terms of the separate financial statements.
Principles of consolidation
Subsidiaries are all entities over which the Group has control. The Group controls an entity where the Group is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct
the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
34/
CHANGES TO ACCOUNTING POLICIES IN 2023
In Commodities A/S holds demand deposits at clearing banks required by counterparties, restricted to cover initial margin, and this
was previously recognised as trade receivables.
In Commodities has alligned the treatment of all demand deposits in which demand deposits with restrictions on use are
subsequently classified as cash and cash equivalents.
The change in accounting treatment has been accounted for retrospectively and comparative information has been restated. The
change has no effect on the statement of comprehensive income or equity. The comparative figures for cash and cash equivalents
increased by EUR 42 million and trade receivables decreased by EUR 42 million.
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of the Group are measured using the currency of the primary economic environment in
which the Group operates (‘the functional currency’). The consolidated financial statements are presented in Euro (EUR), which is
the Group’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets
and liabilities denominated in foreign currencies at year end exchange rates, are generally recognised in profit or loss. They are
deferred in equity if they are attributable to part of the net investment in a foreign operation.
The results and financial position of foreign operations that have a functional currency different from Euro are translated into Euro
as follows:
-
assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
-
income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average
exchange rates, and
-
all resulting exchange differences are recognised in other comprehensive income.
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their
fair values. Positive and negative fair values of derivative financial instruments which are not settled at year end are classified as
”Derivates", respectively. The fair values of derivative financial instruments which are settled at year end are classified as ”Cash at
bank” and ”Credit institutions”, respectively. Derivative financial instruments with positive fair values are offset against derivative
financial instruments with negative fair values when settled on a net basis.
Contracts for the delivery of power and gas are classified as derivative financial instruments when there is a practice of net
settlement in respect of similar contracts, including offsetting contracts before delivery.
Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial
instrument is designated and qualify as hedge accounting.
Income Statement
Fair value adjustments of financial and physical energy contracts
The Group routinely enters into exchange traded sale and purchase transactions for physical delivery of energy commodities. A
considerable part of these transactions for physical delivery of a non-financial item are considered within the scope of IFRS 9 due to
the fact that the Group has a practice of entering into offsetting contracts before the delivery date. Consequently, they are measured
at fair value on initial recognition and subsequently measured at fair value through profit and loss.
For contracts whose fair value cannot be determined solely based on observable market data, any difference between the
transaction price and transaction date fair value determined by applying a valuation model is deferred and recognized over the term
of the contract.
A portion of the sale and purchase transactions for physical delivery of energy commodities takes the form of contracts that were
entered into and continue to be held for the purpose of receipt or delivery of the physical commodity in accordance with the
Group’s expected sale, purchase or usage requirements (“own use”) and are not within the scope of IFRS 9. The assessment of
whether a contract is deemed to be “own use” is based on the nature of the contract as well as facts and circumstances of how the
contract is included in the Group's activities.
Other external expenses
Other external expenses comprise expenses for premises, marketing, office expenses etc.
35/
Staff costs
Staff expenses comprise direct wages and salaries, pension contributions, social security contributions, sick leave, bonuses, and
share-based payments which are recognized in the year in which the associated services are rendered by employees of the Group.
Employee benefits - Pensions
For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a
mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid.
The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset
to the extent that a cash refund or a reduction in the future payments is available
Share-based payments
A number of employees have been granted equity-settled warrants. Issued warrants become exercisable after a certain period of
time or upon an earlier exit event subject to the employee still being employed at the exercise date. The grant date fair value is
recognized as a compensation expense over the vesting period with a corresponding entry to equity.
Other operating income and expenses
Financial income and expenses comprise interest income and interest expenses, realized and unrealized exchange rate adjustments,
fair value adjustment of current asset investments as well as interest on extra payments and repayment under the on-account
taxation scheme and interest in respect of lease liabilities.
Other financial income primarily comprises realized gains on exchange forward derivatives as well as interest income.
Other financial expenses primarily comprise realized and unrealized exchange rate adjustments as well as interest expenses.
Tax on profit/loss for the year
The income tax expense or credit for the period is the tax payable on the taxable income of the current period, based on the
applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period in the countries where the company and its subsidiaries generate taxable income. The management periodically evaluates
positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers
whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either
based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of
the uncertainty.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. A deferred income tax asset or liability is also
not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that,
at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when
the related deferred income tax asset is realized or the deferred income tax liability is settled.
Balance sheet
Leases
The Group leases properties. Property contracts are typically made for 1 to 5 years but may have extension and termination options.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of fixed payments (including in-substance fixed payments); any variable lease payment that are based on an index or a rate,
initially measured using the index or rate as at the commencement date and the exercise price of a purchase option if the Group is
reasonably certain to exercise that option. Lease payments to be made under reasonably certain extension options are also included
in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease or lessee’s incremental borrowing rate if the implicit
interest rate cannot be readily determined.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period
so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost which comprises the amount of the initial measurement of lease liability; any initial direct
costs; the estimated restoration costs and any lease payments made at or before the commencement date less any lease incentives
received.
36/
Payments associated with short-term leases of property and all leases of low-value assets are recognized on a straightline basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less without a purchase option. Low-value
assets comprise IT equipment and small items of office furniture.
Fixed asset investments
Fixed asset investments consist of deposits from leasehold.
Inventories
Inventories comprise gas used for trading. Inventories are measured at the lower of cost under the FIFO method adjusted for gains
and losses from hedging instruments and net realizable value. The net realizable value of inventories is calculated at the amount
expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses. The net
realisable value is determined allowing for marketability, obsolescence and development in expected selling price.
Trade receivables
Trade receivables are amounts due from power and gas sold as part of the ordinary course of business. Trade receivables are
recognized initially at the amount of consideration that is unconditional. The Group holds the trade receivable with the objective of
collecting the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest
method, less allowance for life-time expected losses. The Group applies the IFRS 9 simplified approach to measuring expected
credit losses which uses a lifetime expected loss for all trade receivables.
Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of
amounts previously written down are recognized as a reduction of costs against the same line item.
Derivatives
When derivatives do not meet the hedge accounting criteria, they are primarily classified as ‘held for trading’ for accounting
purpose and initially recognised, and subsequently measured at fair value through profit and loss and recognised in the balance
sheet as ‘derivatives ”. Derivatives that are held for trading are classified as current assets and liabilities regardless of their maturity
date. The Group does not apply any type of hedge accounting in the financial statements. Derivatives are categorised by means of
shared risk and underlying commodity.
The Group routinely enters into sale and purchase transactions for physical delivery of energy commodities. A considerable part of
these transactions for physical delivery of a nonfinancial item is considered within the scope of IFRS 9 since the contracts are net
settled, and they are consequently accounted for as derivatives measured at fair value through profit and loss.
Other receivables
Other receivables consist of deposits related to trading, receivable VAT and miscellaneous receivables. Other receivables are
measured at amortized cost. Deposits represent the amount of cash required for trading positions with certain counterparties.
Prepayments
Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest.
Deferred tax
Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary
differences and losses.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and
where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the
entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other
comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in
equity, respectively.
Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or
loss over the period of the borrowings using the effective interest method.
37/
Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that
some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no
evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity
services and amortized over the period of the facility to which it relates.
Equity reserves
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds.
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the
entity, on or before the end of the reporting period but not distributed at the end of the reporting period. Payments of dividends are
subject to debt covenants.
Cash Flow Statement
The cash flow statement shows the Group's cash flows for the year broken down by operating, investing and financing activities,
changes for the year in cash and cash equivalents as well as the Group's cash and cash equivalents at the beginning and end of the
year.
Cash flows from operating activities
Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and
non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises
current assets less short-term debt excluding items included in cash and cash equivalents.
Cash flows from investing activities
Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and
equipment as well as fixed asset investments.
Cash flows from financing activities
Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to
and from shareholders.
Cash and cash equivalents
Cash and cash equivalents comprise ”Cash at bank and in hand” and ”Overdraft facilities”.
The cash flow statement cannot be immediately derived from the published financial records.
38/
Financial Highlights
Explanation of financial ratios
Return of assets
Solvency ratio
Profit before financial x 100
Total assets
Equity at year end x 100
Total assets at year end
Return on eguity
Net profit for the year x 100
Average equity
39/
Note 2 Critical estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual
results. Management also needs to exercise judgement in applying the Group’s accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more
likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about each of these
estimates and judgements is included in other notes together with information about the basis of calculation for each affected line
item in the financial statements. In addition, this note also explains where there have been actual adjustments this year as a result
of an error and of changes to previous estimates.
Judgements
Measurement of gas trading inventory
Determining the measurement method of gas trading inventories require management to make judgements.
Management uses significant judgement when determining whether the Group acts as a broker-trader. In this assessement,
management takes into consideration both characteristics of the sales contracts entered into, the frequency and volumes of gas
trading and the strategic use of the gas trading inventory. Evaluating all the facts and circumstances relating to the gas trading
inventories, the Group does not act as a broker-trader and gas trading inventories are consequently measured at historic cost.
The carrying amount of gas trading inventory as per the balance sheet date amount to TEUR 67.143 (2022: 73.145).
Estimates
Valuation of derivatives and commodity contracts not entered into for the Group's own use
In some cases, the fair values of derivatives are estimated using internal models due to the absence of quoted prices or other
observable, market-corroborated data. This primarily applies to the Group’s longer-term, structured derivative contracts or
contracts in illiquid markets. The majority of these contracts are valued using models with inputs that include price curves for each
of the different products. These price curves are built up from available active market pricing data including volatility and
correlation and modelled using the maximum available market-derived information. Additionally, when limited data exist for
certain products or market areas, prices are determined using historical and long-term pricing relationships. The use of alternative
estimates or valuation methodologies may result in significantly different values for these derivatives. The Group also trades
capacities for which no active market exists hence the price is estimated. The estimate is based on the future spreads between the
given market areas, which may result in different values for these derivatives.
The carrying amount of derivatives and commodity contracts as per the balance sheet date Amount to tEUR 12.377 (2022: 59.364).
Fair Value adjustments
Gains and losses arising from trading with energy commodity derivatives including futures, options, swaps and certain forward
sales and purchases are excluded from revenue and presented separately. Likewise, energy commodity contracts with physical
delivery with a net settlement option or past practice of settlement of contracts in net cash or other financial instruments are also to
be excluded from revenue since these energy commodity contracts and treated considered within the scope of IFRS 9 Financial
instruments. Given the nature of the company's business model and contracts with counterparties all gains and losses arising from
trading with energy commodity derivatives are accounted for using IFRS 9 Financial instruments.
40/
Note 3
Fair value adjustments
Fair Value adjustments
Gains and losses arising from trading with energy commodity derivatives including futures, options, swaps and certain forward
sales and purchases are excluded from revenue and presented separately. Likewise, energy commodity contracts with physical
delivery with a past practice of settlement of contracts in net cash or other financial instruments are also to be excluded from
revenue since these energy commodity contracts and treated considered within the scope of IFRS 9 Financial instruments.
Given the nature of the company's business model and contracts with counterparties all gains and losses arising from trading with
energy commodity derivatives are accounted for using IFRS 9 Financial instruments.
Other gains and losses arising from financial assets and financial liabilities measured at fair value are disclosed in accordance with
IFRS 7 in note 5.
41/
Note 4
Staff costs
In thousands EUR
2023
2022
Wages and salaries
20.755
205.206
Share-based payments
374
125
Pension cost, defiend contribution plans
1.351
504
Other social security costs
153
149
Other staff costs
1.927
4.022
24.560
210.006
Average number of employees
Key management personnel compensation
Key management personnel (Others) consists of the Board of Directors and the Executive Board. The compensation paid or
payables to key management personnel for employee services is shown below:
In thousands EUR
2023
Executive
Board of
Board
Directors
Others
Total
Wages and salaries
483
0
483
966
Share-based payments
0
0
0
0
Pension cost, defiend contribution plans
24
0
24
48
Other social security costs
1
0
1
2
Other staff costs
2
0
2
4
510
0
510
1.020
2022
In thousands EUR
Executive
Board
Board of
Directors
Others
Total
Wages and salaries
291
0
363
654
Share-based payments
0
0
0
0
Pension cost, defiend contribution plans
14
0
18
32
Other social security costs
1
0
1
2
Other staff costs
0
0
0
0
306
0
382
688
42/
Share-based payment
Warrant program
To motivate and retain certain employees, the Group has established a warrant programme. 74.366 warrants were granted in
August 2020 and 29.800 warrants were granted in April 2021 and 21.600 warrants were granted in May 2022 and 33.315 warrants
were granted in March 2023. Warrants vest within 3-4 years from the grant date.
Vesting requirements of the warrants are based on non-terminated employment at maturity or upon an exit event.
The fair value of the warrants have been determined based on a Black-Scholes option pricing model with data input from historical
share prices of a peer group.
Key input in the Black-Scholes option pricing model includes excercise prices in a range of DKK 242-1046 and volatility in a range
of 29%-31%.
The fair value of warrants granted in 2023 amount to tEUR 1.586 (2022: tEUR 568). No key management personnel are included
in the warrant program. The employees that have been given warrants have the option to buy the predefined amount of shares at a
predefined value.
Number of shares
2023
2022
Outstanding at the beginning of the period
43.400
102.466
Granted during the period
3.315
21.600
Forfeited during the period
0
-6.300
Exercised during the period
0
-74.366
Expired during the period
0
0
Outstanding at the end of the period
46.715
43.400
Weighted-average reming contractual life, years
None of the warrants are exercisable at the end of the period
2
3
43/
Note 5 Financial income and expenses
In thousands EUR
2023
2022
Financial income
Currency exchanges gains
6.311
14.650
Fair value adjustments, investment assets
24.581
0
Other financial income
16.219
2.877
Total financial income
47.111
17.527
Financial expenses
Interest on lease liabilities
41
38
Currency exchanges losses
10.511
4.899
Fair value adjustments, investment assets
0
1.551
Other financial expenses
9.483
16.432
Total financial expenses
20.035
22.920
Note 6 Income tax expense
Current tax
Current tax on profits for the year
39.198
308.689
Adjustments for current tax of prior periods
80
-214
Income tax expense
39.278
308.475
In thousands EUR
2023
%
2022
%
Reconciliation of effective tax rate
Tax at the Danish tax rate of 22% (2022: 22%)
36.789
22%
304.313
22%
Less tax in foreign operations in relation to the Danish tax
rate of 22% rate (2022: 22%)
45
0
-
Tax effects of amounts which are not deductible (taxable) in
calculating taxable income:
Other timing differences
-38
0,0%
4.286
0,3%
Non-deductible expenses
2.402
1,4%
90
0,0%
Adjustments for current tax of prior periods
80
0,0%
-204
0,0%
Income tax expense
39.278
23,5%
308.485
22,3%
The Incomas Group is within the scope of the OECD Pillar II model rules regarding minimum taxation of 15%. The rules were
implemented in Denmark in 2023 with effect from 1 January 2024. Since the Pillar II legislation was not effective on the
reporting date, the Incomas Group has no related current tax exposure. The Pillar II rules are, however, not expected to have a
material impact on the tax position of the Incomas Group in 2024.
The Incomas Group has applied the temporary exception issued by the International Accounting Standard Board (IASB) in May
2023 from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither recognized nor discloses
information about deferred tax assets and liabilities related to Pillar II income taxes.
44/
Note 7
Leases
In thousands EUR
2023
2022
Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
Right-of-use assets
Properties
939
415
939
415
Additions to the right-of-use assets
951
0
Lease liabilities
Current
578
303
Non-current
347
216
925
519
Amounts recognised in the statement of profit or loss
The statement of profit or loss shows the following amounts relating to leases:
Depreciation charge of right-of-use assets
Properties
427
307
427
307
Interest expense on lease liabilities
41
38
Expense relating to short-term
377
17
Total cash outlow for leases
845
362
45/
Note 8
Inventories
In thousands EUR
2023
2022
Gas storage
67.143
73.145
Land held for resale
449
0
67.592
73.145
The following inventory write downs are included in the carrying amount presented in the table above.
Changes in inventory write-downs
In thousands EUR
2023
2022
Inventories write down at 1 January
-16.921
-14.656
Write-downs for the year, additions
-7.812 -16.921
Write-downs for the year, reversal
16.921
14.656
Total inventory write-downs
-7.812 -16.921
Total inventories, net
67.592
73.145
Amounts recognised in profit and loss
Inventories recognised as an expense during 2023 amounted to TEUR 1.389.599 (2022 TEUR: 1.940.396). These were included in
Fair value adjustment of financial and physical energy contracts.
Note 9
Trade receivables
In thousands EUR
2023
2022
Trade receivables from contracts
110.075
135.666
Loss allowance
0
0
110.075
135.666
Due to the short-term nature of the current receivables, the carrying amount is considered to be the same as the fair value.
Refer to note 12 for a description of the expected credit losses and risks regarding trade receivables.
46/
Note 10
Fair value
Derivative financial instruments in the Group mainly consist of commodity derivatives that are traded as part of the Group’s
ordinary business activity.
The Group measures the following financial assets and liabilities at fair value:
-
Power derivatives
-
Gas derivatives
-
Foreign currency derivatives
-
Asset investments
Fair value hierarchy
This section explains estimates made in determining the fair value of the financial instruments that are recognized and measured at
fair value through profit and loss in the financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Group has classified its financial instruments into three levels prescribed under the accounting
standards.
Level 1
Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices). To a large extent level 2 is based on observable quoted prices, however in some instances
forward prices are not observable. In these situations the most liquid forward curves are used to derive a spread to the specific
location. For options theoretical pricing models with implied volatilities are used to calculate market prices.
These valuation techniques maximise the use of observable market data where it is avaliable and rely as little as possible on entity
specific estimates. If all significant inputs required to calculate the fair value of an instrument are observable, the instrument is
included in Level 2;
Level 3
Inputs for the asset or liability that are not based on observable market data. Non-listed shares and other securities fall within level
3 of the fair value hierarchy.
Exchange-traded derivatives as well as foreign exchange contracts are valued using closing prices provided by the exchanges at the
balance sheet date. These derivatives are categorized within level 1 of the fair value hierarchy. Exchange-traded derivatives are
typically considered settled through the payment or receipt of variation margin.
Over-the-counter (OTC) financial swaps and physical commodity sale and purchase contracts including commodity forwards are
generally valued using readily available information in the public markets and if necessary, quotations provided by brokers and
price index developers. These quotes are corroborated with market data and are predominately categorized within level 2 of the fair
value hierarchy.
47/
Valuation processes/techniques
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measue fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
The valuation process of the derivatives includes different input based on external information to the extent possible and the final
valuation is verified and approved by the risk management function. Benchmark and pricing services are used to verify valuations
and increase data quality.
The below table sets out the fair value hierarchy for assets and liabilities measured at fair value in the balance sheet:
In thousands EUR
Level 1
Level 2
Level 3
Total
2023
Financial assets
Power derivatives
0
0
0
0
Gas derivatives
56.434
0
0
56.434
Foreign currency derivatives
0
0
0
0
Asset investments
309.640
0
0
309.640
Total
366.074
0
0
366.074
Financial liabilities
Power derivatives
455
3.272
0
3.727
Gas derivatives
0
40.330
0
40.330
Foreign currency derivatives
0
0
0
0
Total
455
43.602
0
44.057
2022
Financial assets
Power derivatives
127.510
0
0
127.510
Gas derivatives
0
0
0
0
Foreign currency derivatives
0
0
0
0
Asset investments
200.350
0
0
200.350
327.860
0
0
327.860
Financial liabilities
Power derivatives
32.292
38.187
0
70.479
Gas derivatives
0
0
0
0
Foreign currency derivatives
1.209
0
0
1.209
Total
33.501
0
0
71.688
48
/
Note 11 Financial assets and financial liabilities
The Group holds the following financial instruments:
In thousands EUR
2023
2022
Financial assets
Financial assets measured at fair vaule through proft and loss
Derivatives and commodity contracts
56.434
127.510
Derivatives and commodity contracts (cash and cash equivalents)
53.742
173.034
110.176
300.544
Financial assets at amortised cost
Deposits
310
223
Trade receivables
110.075
135.666
Other receivables
98.921
121.377
Cash and cash equivalents
404.032
627.779
613.338
885.045
Financial assets
723.514
1.185.589
Due to the short-term nature of the financial assets measured at amortised cost, their carrying amount is considered to be the same as their fair value.
Financial Liablities
Financial liabilities measured at fair vaule through proft and loss
Derivatives and commodity contracts
44.057
71.688
44.057
71.688
Financial liabilities at amortised cost
Trade payables
24.931
81.550
Creidt institutions
69
4.824
Lease liabilties
925
519
Payables to owners and Management
0
173.376
Other payables
34.714
101.051
60.639
361.320
Financial liabilities
104.696
433.008
Due to the short-term nature of the financial liabilities measured at amortised cost, their carrying amount is considered to be the same as their fair
value. The Group's exposure to various risks associated with the financial instruments is discussed in note 10.
49
/
Borrowings
In 45291 Incomas Holding ApS
Current
2023
Non-current
Total
Current
2022
Non-current
Total
Credit institutions
69
0
69
0
4.824
4.824
Other loans
0
0
0
0
173.376
173.376
69
0
69
0
178.200
178.200
For the borrowings, the fair values are not materially different from their carrying amounts, since the interest payable on those borrowings is either
close to current market rates or the borrowings are of a short-term nature.
The nature of the Group's borrowings are primarily credit line facilities, which can be used to borrow cash or to provide guarantees or letter of credit to
counterparts. The maturites of the credit line facilities are flexible and are based on variable interest rates.
The borrowing from credit institutions in 2022 consists of a loan from Vækstfonden. The loan is maturing in 2025 and cannot be unilaterally by
Vækstfonden. The loan is based on a variable interest rate. Other loans in 2022 consists from Incomas Holding ApS. The loan is maturing in 2025 and
cannot be unilaterally by Incomas Holding ApS. The loan is based on a fixed interest rate.
50
/
Note 12
Financial risk management
The Group’s principal financial liabilities, comprise loans and borrowings, and trade and other payables. The main purpose of these
financial liabilities is to finance the group’s operations. The Group's principal financial assets include trade receivables, and cash
and cash equivalents.
The Group is exposed to market risk, credit risk, liquidity risk.
Market risk
Market risk is the risk of losses or gains caused by changes in the market value of the Group’s financial assets and liabilities
resulting from changes in market prices or rates. Market risk affects the Group’s consolidated financial statement through the
valuation of the Group’s financial instruments.
Commodity price risk
Commodity price risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
underlying commodity prices. The Group's exposure to the risk of changes in commodity prices and volumes relates to the trading
performed by the Group in gas and power.
Pre-Trade Risk Limits: The pre-trade risk limits are set and administrated at several levels of the Group to operationalize and
mitigate the market risk:
1.
Board of Directors: At the board level an overall risk appetite is defined. The risk level is defined in terms of 1% daily VaR and 1%
monthly VaR. As such the board of directors (BoD) allows that, the Group loses up to the daily (monthly) VaR level 1% of the days
(months). If the VaR limits are breached the BoD must be informed. Limits at this level are primarily determined based on the
Group's solidity and risk appetite of the owners.
2.
Founding Partners: The founding partners set the 1% VaR limits for each department under consideration of the VaR limits
specified by the BoD. If the VaR limit is breached the BoD must be informed. Limits at this level are primarily determined based on
the experience of the teams, clearing arrangements, exchange arrangements and market risk. The founding partners are also
responsible for distributing limits for larger “one off” events like capacity auctions.
3.
Head of Trading Department and Head of Risk: The practical risk limits formulated in terms of concrete risk mandates are
formulated jointly by the head of the relevant trading unit and the Head of Risk under the considerations of the 1% VaR limits set
by the BoD and the founding partners. These mandates are set at the department level and differentiate between the various
business areas. These can be in the form of VaR, EUR, MW or MWh limits. The mandates must be visual to the entire company.
The mandates can be dynamic in the sense that they can automatically increase or decrease as a function of accumulated GP. Limits
at this level are primarily determined based on the experience of the individuals and the market risk.
Value-at-Risk
The Group is assessing the market risk by measuring the Value-At-Risk (VaR) on an ongoing basis. VaR is a statistical measure that
quantifies the extent of possible financial losses during a certain period of time given normal market conditions. To manage market
risk and collective portfolio exposure, The Board of Directors have set specific limits to the VaR.
VaR is calculated under the assumption of 1-day and 1 month holding periods, 99% confidence and 1-year historical data. A decay
factor is applied, meaning that the influence of historical data decreases with a predefined factor each day, i.e. most recent market
data has the highest weight. Below figures are based on 1-day holding period.
In thousands EUR
2023
2022
Power at 31 December
3.792
12.385
Gas at 31 December
5.231
26.470
51
/
Foreign currency risk
Foreign currency risk is the risk that fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Group's exposure to foreign currency risk is derived from the Group’s trading activities in which trade
receivables, account payables and derivatives are denominated in a currency other than the functional currency.
The Group manages its risk towards foreign currency by occasionally entering forward contracts on specific currencies to which the
daily commercial business is exposed. However, there is no single currency exposure that is considered material. The majority of
the Group's activities are in EUR as the majority of the activities are performed in market areas where commodity products are
traded in EUR.
Monetary items and sensitivity
In thousands EUR
2023
2022
Casch and
receivables
Potential
change in
exchange rate
Impact on
profit og loss
before tax
Casch and
receivables
Potential
change in
exchange rate
Impact on
profit og loss
before tax
DKK/EUR
5.521
1%
55
1.780
1%
18
USD/EUR
52.374
5%
2.494
27.554
5%
1.312
GBP/EUR
-30.024
5%
-1.430
63.248
5%
3.012
CZK/EUR
9.897
10%
900
0
10%
0
PLN/EUR
1.245
10%
113
0
10%
0
SGD/EUR
467
10%
42
0
10%
0
JPY/EUR
-1
10%
0
0
10%
0
CHF/EUR
153
10%
14
0
10%
0
Interest rate risk
The exposure to the risk of changes in interest rates relates primarily to interest-bearing assets and liabilities in the Group with a
floating rate. The exposure is not considered material as the Group is primarily financed by its own equity. Please refer to ‘Liquidity
risk’ for an overview of the maturity of the financial liabilities. The majority of the liabilities are maturing within 12 months, while
the risk of material changes in the interest rates is considered low.
Credit risk
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to
retail customers, including outstanding receivables.
Credit risk is considered very limited due to the limited receivables from individual counterparts and a very low probability of
default for each of the counterparties.
However, the Company is expanding its bilateral trading activities and hence the credit risk increases. When exposed to credit risk
towards a trading counterpart an extensive credit assessment must be performed, which minimum involves:
-
Collecting credit and compliance reports through our business-acknowledged external partner
-
Profound screening of most recent annual reports
-
Getting an overview of ownership structure
Based on the assessment we set a credit limit on how much EUR exposure we are willing to accept towards the trading counterpart.
Such screening must be performed on all trading counterparts at least annually.
The majority of the Company's trading activities are still performed towards exchanges, TSOs, clearing banks and banks. Such
counterparts are in general low risk counterparts. Thus, the overall credit risk of the Company is considered low.
For more information about the trade receivables please refer to note 9. Please refer to note 14 for more detailed information about
offsetting of financial assets and liabilities.
52
/
Trade receivables
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss
allowance for all trade receivables. However, due to the nature of the Group's business activities, the Group considers its credit risk
related to trade receivables to be immaterial.
No loss allowances were made in 2023 and 2022.
The Group has never realized any losses from counterparties. Trade receivables primarily consist of receivables from commodity
exchanges, clearing houses and TSOs. The Group has made a credit risk assessment of the open financial positions at the balance
sheet date. No provisions were needed as the risk is deemed immaterial.
Trade receivables are written off if there is no reasonable expectation of recovery. Indicators of no reasonable expectation of
recovery include, for example, the failure of a debtor to engage in a repayment plan with the Group or failure to make contractual
payments for a period longer than 90 days past due.
A considerable part of the counterparties is covered by standard agreements. Such agreements contain regulations on credit,
payment, and offsetting. This means that the Group is less exposed to credit risk than if trading with fewer or no standardized
terms. The minimal risk and low risk cover TSOs, exchanges, and other A-rated counterparts.
In Commodities assesses that these counterparts carry no or only limited credit risk as they are part of public security of supply or
have high credit ratings. InCommodities carries out an evaluation of the credit risk of all counterparties before trading is
commenced.
Liquidity risk
We consider the current liquidity risk very limited due to the significant amount of cash on account, low debt and limited hedges.
Liquidity risk is a significant element of the risk sphere of the Group. To ensure that the group always has sufficient liquidity for all
possible future scenarios the group has a large array of tools at hand and takes a number of measures. These tools and measures
must include:
●
Vast buffers set aside in budgets for
●
Variation margin
●
An extended period of weak performance
●
The unknown.
●
Liquidity projection (both budget and in operations)
●
Daily liquidity monitoring
●
Excess cash holding
●
Flexible lines with banks
●
The ability to scale cash intensive operations down
●
Education of key front office employees in liquidity management and risk.
The Risk Department is responsible for monitoring the group's liquidity risk, and most importantly how it would be affected under
various scenarios. As such, the Risk Department must stress-test open power and gas positions where liquidity risk arises. The tool
must take price-correlations into consideration and contain the ability to play around with price-volatilities. Hence, capturing how
the group's liquidity situation would look e.g. under a worst-case scenario. If a worst-case scenario would cause severe liquidity
stress the Head of Risk must act accordingly to reduce exposure.
53
/
Maturities of financial liabilities
The amounts disclosed in the following table are the contractual undiscounted cash flows. Balances due within 12 months equal
their carrying balances as the impact of discounting is not significant.
Contractual maturities of financial
liabilities
< 1 year
1 - 5 years
> 5 years
Total
contractual
cash flows
Carrying
amount
At 31 December 2023
Trade payables
24.931
0
0
24.931
24.931
Borrowings
69
0
0
69
69
Lease liabilities
609
360
0
969
925
Other payables
34.714
0
0
34.714
34.714
Derivatives held for trading
44.057
0
0
44.057
44.057
104.380
360
0
104.740
104.696
At 31 December 2022
Trade payables
81.550
0
0
81.550
81.550
Borrowings
241
224.741
0
224.982
178.200
Lease liabilities
401
433
0
834
519
Other payables
101.051
0
0
101.051
101.051
Derivatives held for trading
71.688
0
0
71.688
71.688
254.931
225.174
0
480.105
433.008
Note 13
Provisions
In thousands EUR
Refurbishment of tenancy
Current
0
Non-current
113
Total
113
Current
0
Non-current
113
Total
113
Other provisions
0
0
0
0
0
0
0
113
113
0
113
113
The provision to refurbishment of tenancy consist of an obligation to refurbish leased property when the lease contract lapse.
In thousands EUR
Refurbish-
ment of
tenancy
Other
provisions
Total
At 1 January 2022
113
0
113
Charged to profit and loss
0
0
0
- Additional provisions recognised
0
0
0
- Unused amounts reversed
0
0
0
Amounts used during the year
0
0
0
At 31 December 2022
113
0
113
At 1 January 2023
113
0
113
Charged to profit and loss
0
0
0
- Additional provisions recognised
0
0
0
- Unused amounts reversed
0
0
0
Amounts used during the year
0
0
0
At 31 December 2023
113
0
113
Note 14 Offsetting financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where the Group currently has a legally
enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the
liability simultaneously. The Group has also entered into arrangements that do not meet the criteria for offsetting but still allow for the
related amounts to be set off in certain circumstances, such as bankruptcy or the termination of a contract.
The following table presents the recognised financial instruments that are offset, or subject to enforceable master netting arrangements
and other similar agreements but not offset. The column ‘net amount’ shows the impact on the Group’s balance sheet if all set-off rights
were exercised.
Effects of offsetting on the balance sheet Related amounts not offset
Gross amounts
Net amounts
presented in
Cash
collateral
In thousands EUR
Gross amounts
offset in the
balance sheet
the balance
sheet
(received /
pledged)
Net amount
2023
Financial assets
Trade receivables
142.280
-32.205
110.075 29.372
139.447
Derivatives held for trading
8.172.161
-8.115.727
56.434 0
56.434
Total financial assets
8.314.441
-8.147.932
166.509
29.372
195.881
Financial liabilities
Trade payables
57.136
-32.205
24.931 -50.522
-25.591
Derivatives held for trading
8.159.784
-8.115.727
44.057 0
44.057
Total financial liabilities
8.216.920
-8.147.932
68.988
-50.522
18.466
Effects of offsetting on the balance sheet Related amounts not offset
Gross amounts
Net amounts
presented in
Cash
collateral
In thousands EUR
Gross amounts
offset in the
balance sheet
the balance
sheet
(received /
pledged)
Net amount
2022
Financial assets
Trade receivables
187.388
-51.722
135.666 33.347
169.013
Derivatives held for trading
2.526.328
-2.398.818
127.510 0
127.510
Total financial assets
2.713.716
-2.450.540
263.176
33.347
296.523
Financial liabilities
Trade payables
133.272
-51.722
81.550 -87.419
-5.869
Derivatives held for trading
2.470.506
-2.398.818
71.688 0
71.688
Total financial liabilities
2.603.778
-2.450.540
153.238
-87.419
65.819
56/
In thousands EUR
Borrowings
Leases
Total
Note 15
Cash flow specifications
In thousands EUR
2023
2022
Adjustments
Financial income
-47.111
-17.527
Financial expenses
20.035
22.920
Depreciations
427
307
Income tax
39.278
308.474
Other adjustments
0
-328
12.629
313.846
Changes in net working capital
Change in inventories
5.552
-29.124
Change in receivables
119.412
-244.533
Change in trade payables
-152.845
164.322
-27.881 -109.335
Net debt reconciliation
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
At 1 January 2022
28.565
649
29.214
Cash flows
149.635
-130
149.505
New leases
0
0
0
Other changes
0
0
0
At 31 December 2022
178.200
519
178.719
Cash flows
-178.200
-436
-178.636
New leases
0
842
0
Other changes
0
0
0
At 31 December 2023
0
925
925
57/
2023
2022
Number
of
shares
Nominal
value
Number
of
shares
Nominal
value
Note 16 Share capital
The share capital comprises:
Ordinary
shares
at
1
January
6.835.103 917
6.760.737 907
Capital increase
89.487 13
74.366 10
Ordinary shares at 31 December
6.924.590 930
6.835.103 917
No shares carry any special rights. All shares are fully paid
2023 2022
EUR per share
Total
dividend
paid
out
for
the
year
7 45
Total dividend proposed for the year
25 0
Note 17 Capital management
The Group’s objectives when managing capital are to:
- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for
other stakeholders, and
- maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the following gearing ratio: Net debt, as per note 15:
Cash flow specifications divided by Total equity, as shown in the balance sheet.
During 2023, the Group’s strategy, which was unchanged from 2022, was to maintain a debt to equity ratio of 2. The debt to equity ratio
at 31 December 2023 was 0,0 (2022: 0,20). The debt to equity ratio at 31 December 2023 decreased due to the financial performance of
2023 and thus increase in equity.
In general during 2024 we will seek to increase debt / equity ratio with agreement with new financial partners. We need to ensure a
stronger gearing of our equity to ensure our future growth. At the moment we are primarily founded by our own equity and that is not
optimal. AS we have done historically we pay out dividends to owners when we have sufficient excess cash.
58/
Note 18 Contingent liabilities and commitments
In thousands EUR
2023
2022
The Group had contingent liabilities at year end in respect of:
Charges and security
The following assets have been placed as security with bankers:
Liquid funds of
122.428
233.724
Asset investments of
224.110
-
Guarantee obligation
The Group has placed payment guarantees to counterparties of to meet standard requirements
related to credit risk
177.570
197.256
Commitments
As a part of the main activities the Group has entered into contracts with counterparties whereof contractual commitments amount
to TEUR 144.565 (2022: tEUR 219.101). All contracts run between 0-81 months (2021: 0- 69 months). Contractual commitments
relates to power and gas derivatives that have been recognized in the balance sheet.
Other contingent liabilities
The Danish group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount
of corporation tax payable by the Group amounts to TEUR 10.761. Moreover, the Danish group companies are jointly and severally
liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent
adjustments of corporation taxes and withholding taxes may increase the Group’s liability.
59/
Ownership interest held by Ownership interest held by
the group, % non-controlling interests, %
Name of entity
Place of business
2023
2022
2023
2022
Note 19 Related party transactions
Incomas Holding ApS has no related parties with control of the Group and no related parties with significant influence other than key
management personnel – mainly in the form of the Board of Directors and the Executive Board.
Information about renumeration to key management personnel has been disclosed in note 4.
Transactions with other related parties
In thousands EUR 2023 2022
The following transactions occurred with related parties:
Key management personnel
Financial expensese
0 835
Loans from key management personnel
0 153.639
Terms and conditions
The loans to key management personnel are repayable within four years from the reporting date. The average interest rate on the loans
during the year was 6%.
Note 20 Interests in other entities
The Group’s principal subsidiaries at 31 December 2023 are set out below. Unless otherwise stated, they have share
capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests
held equals the voting rights held by the Group. The country of incorporation or registration is also their principal place of
business.
In Commodities A/S Aarhus, Denmark
100% 100% - -
In Commodities Global ApS Aarhus, Denmark
100% 100% - -
In Commodities APAC ApS Aarhus, Denmark
100% 100% - -
In Commodities US ApS Aarhus, Denmark
100% 100% - -
In Commodities US LLC Delaware, USA
100% 100% - -
In Commodities PV ApS Aarhus, Denmark
100% 100% - -
In Commodities JP Godo Kaisha Tokyo, Japan
100% - - -
In Commodities SG Pte Ltd Singapore
100% - - -
60/
Note 21
Fee to auditors appointed at the general meeting
In thousands EUR
2023
2022
PricewaterhouseCoopers
Audit fee
158
122
Other assurance services
169
97
Tax advisory services
485
101
Other services
265
210
1.077
530
Note 22 Subsequent events
After the end of the financial year, no events have occurred which could significantly affect the Group's financial position.
Parent company
6
2
/
Parent
income
statement
for the year ended 31 December
In thousands EUR
Notes
2023 2022
Gross profit/loss
-352
-57
Staff expenses
-227
0
Profit/loss before financial income and expenses
-579 -57
Income from investment in subsidiaries
106.528
1.079.803
Financial income
2
34.408 1.089
Financial expenses
2 -2.864 -3.044
Profit/loss before income tax
137.493
1.077.791
Tax on profit/loss for the year
3
-9.547
-3.068
Profit/loss for the year
127.946
1.074.723
6
3
/
Parent
balance
sheet
as at 31 December
In thousands EUR
Notes
2023
2022
Assets
Fixed asset investment
Investment in subsidiaries
4
618.647 712.342
Receivables from group enterprises
5
0 144.337
Total fixed asset investment
618.647 856.679
Fixed assets
618.647
856.679
Receivables
Receivables from group enterprises
13.213 8.538
Other receivables
18.045 610
Total receivables
31.258 9.148
Current asset investment
7
309.640
200.350
Cash and cash equivalents
38.724
18.888
Total current assets
379.622
228.386
Total assets
998.269
1.085.065
6
4
/
Parent
balance
sheet
as at 31 December
In thousands EUR
Notes
2023
2022
Equity
Share capital
8
930 917
Share premium account
0 8.873
Reserve for net revaluation under the equity method
615.394 709.200
Retained earnings
195.324 177.470
Proposed dividend for the year
175.000 0
Total equity
986.648
896.460
Provisions
Provisions relating to investments in group enterprises
111 0
Total provisions
111 0
Long-term debt
Payables to owners and Managment
0 173.374
Total long-term
0 173.374
Short-term debt
Payables to group enterprises
2.669 0
Corporation tax
6.424 2.347
Other payables
2.417 12.884
Total short-term debt
11.510 15.231
Total debt
11.510
188.605
Total liabilities
998.269
1.085.065
65/
Parent statement of changes in equity
for the year ended 31 December
Share premium
Reserve for net
Proposed dividend
Share capital
account
revaluation under the Retained earnings
for the year
Total equity
equity method
In
thousands
EUR
As at 1 January 2023
917
8.873
709.200
177.470
0
896.460
Cash capital increase
13
12.563
0
0
0
12.576
Extraordinary dividend paid
0
0
0
-50.000
0
-50.000
Exchange adjustments relating to foreign entities
0
0
0
0
0
0
Other equity movements
0
0
-334
0
0
-334
Transfer from share premium account
0
-21.436
0
21.436
0
0
Net profit/loss for the year
0
0
-93.472
46.418
175.000
127.946
As at 31 December 2023
930
0
615.394
195.324
175.000
986.648
66/
Parent statement of changes in equity
for the year ended 31 December
As at 1 January 2022
907
0
113.109
9.222
123.238
Cash capital increase
10
8.873
0
0
8.883
Extraordinary dividend paid
0
0
0
-304.175 -304.175
Exchange adjustments relating to foreign entities
0
0
-328
0
-328
Other equity movements
0
0
-5.881
0
-5.881
Net profit/loss for the year
0
0
602.300
472.423
1.074.723
As at 31 December 2022
917
8.873
709.200
177.470
896.460
67
/
Contents of the notes to the consolidated financial statements
Note 1 Summary of significant accounting policies
Note 2 Financial income and expenses
Note 3
Income tax expense
Note 4
Investment in subsidiaries
Note 5
Other fixed asset investments
Note 6
Other investments at fair value
Note 7
Share capital
Note 8
Distribution of profit
Note 9 Long-term debt
Note 10 Contingent liabilities and commitments
Note 11
Related party transactions
68
/
Note 1 Summary of significant accounting policies
The separate financial statements of Incomas Holding ApS ('Parent Company') for the year ended 31 December 2023 were
authorised for issue in accordance with a resolution of the directors on 15 May 2024.
This note provides a list of the significant accounting policies adopted in the preparation of these separate financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The seperate financial statements of the Parent Company for 2022 have been prepared in accordance with the provisions of the
Danish Financial Statements Act applying to large enterprises of reporting class C.
The separate financial statements have been prepared on a historical cost basis.
The separate financial statements are presented in Euro (EUR) and all values are rounded to the nearest thousand, except when
otherwise indicated.
With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated
financial statements of Incomas Holding ApS, the Company has not prepared a cash flow statement.
Recognition and measurement
Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities
measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are
recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due
to changed accounting estimates of amounts that have previously been recognised in the income statement.
Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the
Parent Company, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Parent
Company, and the value of the liability can be measured reliably.
Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item
below.
Foreign currency translation
Functional and presentation currency
Items included in the separate financial statements of the parent are measured using the currency of the primary economic
environment in which the Parent Company operates (‘the functional currency’). The separate financial statements are presented in
Euro (EUR), which is the Parent Company’s functional and presentation currency.
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due
to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and
expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value
adjustments are recognised directly in equity.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are
translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and
the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement.
69
/
Income statement
Other external expenses
Other external expenses comprise expenses for premises, sales and distribution as well as office expenses, etc.
Gross profit/loss
With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of other external
expenses.
Income from investments in subsidiaries
The item “Income from investments in subsidiaries” in the income statement includes the proportionate share of the profit for the
year.
Tax on profit/loss for the year
Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit/loss
for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in
equity.
The Parent Company is jointly taxed with Danish group companies. The tax effect of the joint taxation is allocated to enterprises in
proportion to their taxable incomes.
Balance sheet
Investments in subsidiaries
Investments in subsidiaries are recognised and measured under the equity method.
The item “Investments in subsidiaries” in the balance sheet include the proportionate ownership share of the net asset value of the
enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of
unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated
at the time of acquisition of the enterprises.
The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to “Reserve for net revaluation
under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for
other equity movements in the subsidiaries.
Subsidiaries with a negative net asset value are recognised at EUR 0. Any legal or constructive obligation of the Parent Company to
cover the negative balance of the enterprise is recognised in provisions.
Receivables
Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to
nominal value less provisions for bad debts.
Current assets investments
Current asset investments, which consist of listed bonds and shares, are measured at their fair values at the balance sheet date. Fair
value is determined on the basis of the latest quoted market price.
Deferred tax assets and liabilities
Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and
liabilities. However, deferred tax is not recognised in respect of temporary differences concerning goodwill not deductible for tax
purposes and other items - apart from business acquisitions - where temporary differences have arisen at the time of acquisition
without affecting the profit for the year or the taxable income.
Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet
date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made
according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the
liability, respectively.
Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be
realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.
Deferred tax assets and liabilities are offset within the same legal tax entity.
70
/
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected
taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a
legally enforceable right of set-off and an intention to settle on a net basis or simultaneously.
Financial debts
Loans are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured
at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income
statement over the loan period.
Other debts are measured at amortised cost, substantially corresponding to nominal value.
71
/
Note 2
Staff costs
In thousands EUR
2023
2022
Wages and salaries
188
0
Pension cost, defiend contribution plans
38
0
Other social security costs
0
0
Other staff costs
1
0
227
0
Average number of employees
1
0
No staff costs are regarding members of the Board of Directors or the Executive Board.
72
/
Note 3
Financial income and expenses
In thousands EUR
2023
2022
Financial income
Interest received from group enterprises
7.052
598
Other financial income
27.356
491
Total financial income
34.408
1.089
Note 4
Financial income and expenses
In thousands EUR
2023
2022
Financial expenses
Interes paid to group enterprises
0
1.886
Other financial expenses
2.864
1.158
Total financial expenses
2.864
3.044
Note 5
Income tax expense
In thousands EUR
2023
2022
Current tax on profits for the year
9.467
2.347
Deferred tax for the year
0
721
Adjustments of tax concerning previous years
80
0
Income tax expense
9.547
3.068
73/
Note 6 Investment in subsidiaries
The separate financial statements of Incomas Holding ApS ('Parent Company') for the year ended 31 December 2023 were
authorised for issue in accordance with a resolution of the directors on 15 May 2024.
This note provides a list of the significant accounting policies adopted in the preparation of these separate financial
statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
In thousands EUR 2023 2022
Cost at 1 January
3.142
3.119
Additions for the year
0 23
Cost at 31 December
3.142 3.142
Value adjustments at 1 January
709.200
113.108
Exchange adjustments
0 -328
Net profit/loss for the year
106.528 1.079.803
Dividend to the Parent Company
-200.000 -477.502
Other equity movements, net
-334 -5.881
Value adjustments at 31 December
615.394 709.200
Equity investments with negative net asset value transferred to provisions
111
0
Carrying amount at 31 December
618.647
712.342
Investments in subsidiaries are specified as follows:
Name of entity
Place of registered office
Share capital
Votes and ownership
In Commodities Global ApS
Aarhus
TEUR 5
100%
In Commodities PV ApS
Aarhus TEUR 5
100%
74
/
Note 7
Other fixed asset investments
In thousands EUR
2023
2022
Cost at 1 January
144.337
0
Additions for the year
0
144.337
Disposals for the year
-144.337
0
Cost at 31 December
0
144.337
Carrying amount at 31 December
0
144.337
Note 8
Other investments at fair value
Value
adjustment, Fair value at
income
31
statement
December
Shares
14.717
161.838
Bonds
9.026
147.802
Total
309.640
75
/
Note 9 Share capital
The share capital is broken as the following:
A-shares
6.457.533 867
B-shares
377.570
50
Total
917
Note 10 Distribution of profit
In thousands EUR
2023
2022
Extraordinary dividend paid
50.000
304.175
Proposed dividend for the year
175.000
0
Reserve for net revaluation under the equity method
-93.472
602.300
Retained earnings
-3.582
168.248
Total
127.946
1.074.723
Note 11 Long-term debt
In thousands EUR
2023
2022
Payments due within 1 year are recognised in short-term debt.
The debt falls due for payment as specified below:
Payables to owner and Management
After 5 years
0
0
Between 1 and 5 years
0
173.374
Long-term part
0
173.374
Within 1 year
0
0
0
173.374
76
/
In thousands EUR 2023 2022
Note 12 Contingent assets, liabilities and financial obligations
Charges and security
The following assets have been placed as security with bankers:
Current asset investments limited to the value of:
Liquid funds limited to the value of:
Guarantee obligations
The parent company has placed payment guarantees to subsidiaries' counterparties
The parent company has provided a limited surety bond of TEUR 247.500 for In Commodities A/S to credit institutions. The total
debt per 31 December 2023 is TEUR 0.
The parent company has provided an unlimited surety bond for In Commodities A/S to other credit institutions. The total debt per
31 December 2023 is TEUR 0.
The parent company has pledged financial support for the continues operation of the following subsidaries:
*
In Commodities APAC ApS
*
In Commodities PV ApS
In addition the parent company will subordinate their receivables in favor of the creditors of the above mentioned subsidaries.
The Danish group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group.
Note 13
Related party transactions
Other related parties
Other related parties in the period 1 January 2021 to 31 December 2023 comprise the management of subsidiaries as well as the
Board of Directors and Executive Board of the subsidiaries together with their immediate families.
Transactions
The Company has chosen only to disclose transactions which have not been made on an arm’s length basis in accordance with
section 98(c)(7) of the Danish Financial Statements Act.
224.110
0
7.813
0
120.129
197.256