15512415 2023-01-01 2023-12-31 15512415 2023-01-01 2023-12-31 auditor_1 15512415 2023-01-01 2023-12-31 memberOfBoardIdentifier_1 15512415 2023-01-01 2023-12-31 memberOfBoardIdentifier_1 15512415 2023-01-01 2023-12-31 memberOfBoardIdentifier_2 15512415 2023-01-01 2023-12-31 memberOfBoardIdentifier_3 15512415 2023-01-01 2023-12-31 memberOfBoardIdentifier_4 15512415 2023-01-01 2023-12-31 memberOfBoardIdentifier_5 15512415 2022-01-01 2022-12-31 15512415 2021-01-01 2021-12-31 15512415 2020-01-01 2020-12-31 15512415 2019-01-01 2019-12-31 15512415 2023-12-31 15512415 2022-12-31 15512415 2021-12-31 15512415 2020-12-31 15512415 2019-12-31 15512415 2022-12-31 fsa:ContributedCapitalMember 15512415 2022-12-31 fsa:RetainedEarningsMember 15512415 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 15512415 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 15512415 2023-12-31 fsa:ContributedCapitalMember 15512415 2023-12-31 fsa:RetainedEarningsMember 15512415 2022-12-31 fsa:AcquiredIntangibleAssetsMember 15512415 2022-12-31 fsa:GoodwillMember 15512415 2023-01-01 2023-12-31 fsa:AcquiredIntangibleAssetsMember 15512415 2023-01-01 2023-12-31 fsa:GoodwillMember 15512415 2023-12-31 fsa:AcquiredIntangibleAssetsMember 15512415 2023-12-31 fsa:GoodwillMember 15512415 2022-12-31 fsa:LandAndBuildingsMember 15512415 2022-12-31 fsa:PlantAndMachineryMember 15512415 2022-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 15512415 2022-12-31 fsa:LeaseholdImprovementsMember 15512415 2023-01-01 2023-12-31 fsa:LandAndBuildingsMember 15512415 2023-01-01 2023-12-31 fsa:PlantAndMachineryMember 15512415 2023-01-01 2023-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 15512415 2023-01-01 2023-12-31 fsa:LeaseholdImprovementsMember 15512415 2023-12-31 fsa:LandAndBuildingsMember 15512415 2023-12-31 fsa:PlantAndMachineryMember 15512415 2023-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 15512415 2023-12-31 fsa:LeaseholdImprovementsMember 15512415 2022-12-31 fsa:InvestmentsInGroupEnterprisesMember 15512415 2022-12-31 fsa:OtherInvestmentsMember 15512415 2023-01-01 2023-12-31 fsa:InvestmentsInGroupEnterprisesMember 15512415 2023-01-01 2023-12-31 fsa:OtherInvestmentsMember 15512415 2023-12-31 fsa:InvestmentsInGroupEnterprisesMember 15512415 2023-12-31 fsa:OtherInvestmentsMember 15512415 2023-12-31 fsa:LongtermPayablesToGroupEnterprisesMember 15512415 2022-12-31 fsa:LongtermPayablesToGroupEnterprisesMember iso4217:DKK pure Årsrapport 2023-01-01 2022-01-01 2023-12-31 2022-12-31 2024-06-24 15512415 2024-06-24 1960-02-27 Reporting class C, medium-size enterprise KPMG 9000 Aalborg Østre Havnegade 22D 25578198 Auditor's report on audited financial statements Aalborg 2024-06-24 KPMG 25578198 Østre Havnegade 22D 9000 true Brian Kluge The Board of Directors and the Executive Board have today discussed and approved the annual report for CCL LABEL A/S for the financial year 1 January - 31 December 2023. The annual report has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2023 and of the results of the Company's operations for the financial year 1 January - 31 December 2023.Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters, of the results for the year and of the Company's financial position. We recommend that the annual report be approved at the annual general meeting. Brian Kluge CEO Lee Gerard Pretsell Chairman Günther Johann Birkner Deputy Chairman Hasse Vad Jesper Holm Martin Aron Rasmussen Independent auditor's report To the shareholder of CCL LABEL A/S Opinion We have audited the financial statements of CCL LABEL A/S for the financial year 1 January - 31 December 2023, comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2023 and of the results of the Company's operations for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report.We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management's responsibility for the financial statementsManagement is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of financial statement users made on the basis of these financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We alsoidentify and assess the risks of material misstatement of the company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Statement on the Management's reviewManagement is responsible for the Management's review.Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. Steffen S. Hansen mne32737 CCL LABEL A/S Nyager 11 DK-2605 Brøndby Brøndby 48350000 53954000 31062000 32939000 48425000 -632000 3261000 -3053000 2522000 12512000 -3902000 -3663000 -3718000 -785000 -8434000 10574000 27953000 263529000 52950000 3168000 570728000 590040000 563453000 552137000 364865000 13144000 2902000 12535000 4665000 19528000 366786000 356212000 -328259000 -309345000 -256395000 54 0 0 3 34 29 82 827 187 36 643 604 583 560 703 144000 155000 142000 145000 145000 The financial ratios have been calculated as follows:Return on invested capitalProfit/loss before financial income and expenses x 100 / Average invested capitalReturn on equityProfit/loss after tax x 100 / Averrage equitySolvency ratioEquity ex. non-controlling interests year end x 100 / Total equity and liabilities at year end Principal activities The Company principal activities are production and sale of labels, inserts and carton. Development in activities and financial position Profit for the year (including comparison with forecasts previously announced) The Company's income statement for 2023 shows a profit of DKK 10,574 thousand as against a profit of DKK 27,953 thousand in 2022. Equity in the Company's balance sheet at 31 December 2023 stood at DKK 366,786 thousand as against DKK 356,212 thousand at 31 December 2022. Investments During 2022, most of the production equipment was replaced with newer and more productive equipment. These investments have helped secure that CCL’s production in 2023 has been competitive and gained significant new volume and are strong in new customer projects. Investments at the same level will continue during the years to come. Product development CCL Label A/S has continuously given product development high priority and developed several new products during the year. Product development takes place within the Company and in cooperation with customers to secure a successful outcome for the products developed. Outlook Due to global raw material shortage and the war in Europe, the outlook is subject to a high degree of uncertainty, but Management still expects to report positive earnings due to its strong business model, which is supported by its operations and pipeline at the time of finalising the annual report. Intellectual capital The primary intellectual capital of CCL Label A/S is its employees and their knowledge. Environmental matters We strive to become a more sustainable business. In 2023, both sites ran fully on green CO2 neutral energy and green CO2 neutral power. Several initiatives to improve our footprint were already launched in 2021 and 2022. Financial instruments The Company's goals and policies for management of financial risks As a Canadian-owned company, we are in full compliance with Bill 198. The Company's risk exposure Activities are primarily settled in DKK, EUR and SEK. Foreign exchange translations are deemed not to have any significant impact on results. Events after the balance sheet date No events have occurred after the balance sheet date of material importance to the annual report for 2023. 48350000 53954000 12768000 15029000 36214000 35664000 -632000 3261000 657000 459000 203000 500000 -178000 3220000 14050000 26042000 85000 29000 3987000 3692000 9970000 25599000 -604000 -2354000 10574000 27953000 1097000 1165000 0 194000 1097000 1359000 9694000 10418000 39165000 42041000 1747000 2731000 245000 38000 50851000 55228000 451255000 448945000 610000 610000 950000 861000 452815000 450416000 504763000 507003000 5994000 7552000 944000 5944000 5187000 5757000 12125000 19253000 25121000 35032000 1385000 2189000 1621000 0 900000 3063000 778000 1983000 1391000 1229000 31196000 43496000 22644000 20288000 65965000 83037000 570728000 590040000 13000000 13000000 353786000 343212000 366786000 356212000 3570000 5882000 0 147524000 0 10339000 20019000 26253000 159113000 22635000 206000 0 222000 0 20812000 21195000 200372000 80422000 570728000 590040000 13000000 343212000 0 10574000 13000000 353786000 The annual report of CCL LABEL A/S for 2023 has been prepared in accordance with the provisions applying to reporting class C medium-sized entities under the Danish Financial Statements Act.The accounting policies used in the preparation of the financial statements are consistent with those of last year.ReclassificationsReferring to the true and fair view set out in the Danish Financial Statements Act, the Company has reclassified individual items in the income statement and balance sheet. The reclassifications have not affected results before tax, results for the year or equity. Comparative figures have been restated accordingly. Omission of presentation of consolidated financial statementsPursuant to section 112(1) of the Danish Financial Statements Act, no consolidated financial statements have been prepared. The financial statements of CCL LABEL A/S and group entities are included in the consolidated financial statements of CCL Industries Inc., Willowdale, Ontario, Canada.. Omission of cash flow statementPursuant to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are included in the cash flow statement in the consolidated financial statements of CCL Industries Inc.. Foreign currency translation On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses. Fixed assets acquired in foreign currencies are translated at the exchange rates at the transaction dates. Revenue Income from the sale of goods, is recognised in revenue when delivery and transfer of risk to the buyer have taken place, and the income may be measured reliably and is expected to be received. The date of transfer of the most significant benefits and risks is determined using standard Incoterms ®2020. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts granted are deducted from revenue. Production costs Production costs comprise costs, including depreciation, amortisation, wages and salaries incurred to generate revenue for the year. Commercial entities recognise their cost of sales, whereas production entities recognise production costs incurred to generate revenue for the year. Such costs include direct and indirect costs for raw materials and consumables, wages and salaries, rent and leases and depreciation of production plant. Distribution costs Costs incurred in distributing goods sold during the year and in conducting sales campaigns, etc. during the year are recognised as distribution costs. Also, costs relating to sales staff, advertising, exhibition and depreciation are recognised as distribution costs. Administrative expenses Administrative expenses comprise expenses incurred during the year for management and administration of the Company, including expenses for administrative staff, management, office premises, office expenses, depreciation and amortisation. Other operating income Other operating income comprises items secondary to the activities of the Company, including gains on the disposal of intangible assets and property, plant and equipment. Other operating costs Other operating costs comprise items secondary to the activities of the entities, including losses on the disposal of intangible assets and property, plant and equipment. Financial income and expenses Financial income and expenses comprise interest income and expense, financial costs regarding finance leases, gains and losses on securities, payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc. Dividends from equity investments in subsidiaries and associates measured at cost are recognised as income in the Parent Company's income statement in the financial year when the dividends are declared. In case of indication of impairment, an impairment test is conducted. Tax on profit for the year Tax for the year comprises current tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit/loss for the year is recognised in the income statement at the amount attributable to the profit/loss for the year and directly in equity at the amount attributable to entries directly in equity. Intangible assets Goodwill On initial recognition, intangible assets are measured at cost. Goodwill is amortised on a straight-line basis over the estimated useful life determined on the basis of Management's experience within the individual business areas. Amortisation is provided on a straight-line basis over 10 years. Goodwill has arisen in connection with strategic acquisition, and therefore goodwill is amortised over 10 years on the basis of Management's experience in the relevant area of business. Gains and losses on the disposal of intangible assets are determined as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively. Software Software is measured at cost less accumulated amortisation and is amortised on a straight-line basis over the useful life. Expected useful life of software is up to 10 years. Property, plant and equipmentLand and buildings, plant and machinery and fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses.Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost.The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows:Buildings25-40 yearsPlant and machinery3-10 yearsFixtures, fittings, tools and equipment3-10 yearsLeasehold improve­ments2-5 yearsThe useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively.Land is not depreciated.Depreciation is recognised in the income statement as production costs, distribution costs and administrative expenses, respectively. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively. Leases All leases are accounted for as operating leases. Payments relating to operating leases and other leases are recognised in the income statement over the term of the lease. The Company's total obligation relating to operating leases and other leases is disclosed as contractual obligations and contingencies, etc. Investments Equity investments in subsidiaries and associates are measured at cost. In case of indication of impairment, an impairment test is conducted. When the cost exceeds the recoverable amount, write-down is made to this lower value. The cost is reduced by dividends received exceeding accumulated earnings after the acquisition date. Deposits are recognised at amortised cost. Impairment of fixed assets The carrying amount of intangible assets and property, plant and equipment as well as equity investments in subsidiaries and participating interests (including associates) is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Inventories Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs. Finished goods and work in progress are measured at cost, comprising the cost of raw materials, consumables, direct wages and salaries. Indirect production overheads and borrowing costs are not recognised in cost. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price. Receivables Receivables are measured at amortised cost. Write-down is made for bad debt losses based on an individual assessment of receivables. Corporation tax and deferred tax Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities measured on the planned use of the asset or settlement of the liability, respectively. However, deferred tax is not recognised on temporary differences relating to office buildings non-deductible for tax purposes and other items where temporary differences arise at the date of acquisition without affecting either profit/loss or taxable income. Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation within the foreseeable future; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable value. Deferred tax is measured in accordance with the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement or equity, respectively. Prepayments Prepayments comprise prepayment of costs incurred relating to subsequent financial years. Cash at bank and in hand Cash at bank and in hand comprise cash and bank deposits. Liabilities other than provisions Financial liabilities are recognised at the date of borrowing at cost, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value using the effective interest rate. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses. Other liabilities are measured at net realisable value, The liability in relation to frozen holiday funds is measured at net realisable value, including indexation. Indexation adjustments are recognised as interest expense in the income statement. 79239000 81335000 4236000 3578000 4786000 4648000 144000 155000 In accordance with section 98b(3) of the Danish Financial Statements Act, remuneration of the Executive Board and the Board of Directors has net been disclosed. 1825000 1823000 1655000 1143000 507000 726000 10574000 27953000 2976000 1944000 364000 0 3340000 1944000 -1812000 -1750000 -431000 -194000 -2243000 -1944000 1097000 0 41401000 146227000 15469000 1140000 0 12899000 0 245000 41401000 159126000 15469000 1385000 -30983000 -112086000 -12738000 -1102000 -724000 -7875000 -984000 -38000 -31707000 -119961000 -13722000 -1140000 9694000 39165000 1747000 245000 448945000 610000 2310000 0 451255000 610000 451255000 610000 Prepayments comprise prepayment of costs incurred relating to subsequent financial years, including insurance, prepaid rent and other costs. Contributed capital consists of: One share of nom. DKK 3,000,000One share of nom. DKK 2,700,000One share of nom. DKK 300,000One share of nom. DKK 6,000,000One share of nom. DKK 500,000One share of nom. DKK 500,000 5882000 4771000 -2312000 1111000 159113000 22635000 0 147524000 Intercompany loan of DKK 150 million from Group company CCL Industries Inc. falls due in 2024 and is therefore presented as current liabilities. The loan will be repaid through received dividends from subsidiaries. Contingent liabilitiesAt the balance sheet date, operating lease liabilities amounted to DKK 1,435 thousand, of which DKK 513 thousand falls due within the initial year. The leases come with periods of interminability of up to 36 months. At the balance sheet date, rental obligations amounted to DKK 4,124 thousand for the period of interminability. The tenancy agreement comes with a period of interminability of up to 12 months. No assets have been provided as collateral to the Company's bankers. CCL LABEL A/S' related parties comprise the following:Control CCL Industries Inc. 111 Gordon Barker Roed, Suite 801, Ontario , Canada CCL Industries Inc. holds the majority of the contributed capital in the Company. CCL LABEL A/S is part of the consolidated financial statements of CCL Industries Inc., 111 Gordon Barker Roed, Suite 801, Ontario , Canada, which is the smallest and largest group, in which the Company is included as a subsidiary. The consolidated financial statements of CCL Industries Inc. can be obtained by contacting the Company at the above address or at the following website: https://cclind.com/investors/investor-home/.DKK'00031/12 202331/12 2022 Management fee1,094879