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Gøteborgve 15-17 9200 Aalborg SV Denmark 31081610 Aalborg 16 pwt-group.com Skelagerve 1A 9000 Aalborg Denmark DKK IN MILLION 2023 2022 2021 2020* 2019*INCOME STATEMENTRevenue 803 794 668 596 873Gross pro t 308 324 316 165 289EBITDA 124 154 156 -21 55EBIT 104 135 138 -388 -18Pro t/loss from  nancial income and -5 3 3 242 -23 expenses (including associate)Pro t/loss for the year 73 115 126 -200 -33BALANCE SHEETTotal assets478 451 421 355 769Investment in plant and equipment44 32 22 24 53Equity274 273 213 87 269CASH FLOWSCash flows from operating activities 164 6 153 60 111Cash flows from investing activities, net -44 -42 -29 -8 -14Thereof, investment in plant and equipment -23 -24 -12 -10 -6Cash flows from  nancing activities -67 -81 -38 -6 -76Total cash flows53 -118 86 46 21EMPLOYEES Average number of employees 400 374 354 444 552FINANCIAL RATIOS STATED AS A PERCENTAGE Gross margin 38.4 40.8 47.3 27.7 33.1EBITDA margin 15.5 19.4 23.3 -3.5 6.3Operating margin (EBIT)13.0 17.0 20.7 -65.2 -2.1Return on invested capital23.4 31.9 36.8 -70.7 -1.9Solvency ratio57.4 60.5 50.6 24.5 35.0Return on equity26.7 47.4 83.9 -112.3 -8. 6For defi nitions, please see the accounting policies.*The Company has changed its accounting policy for investments in subsidiaries in the fi nancial year. Figures for 2020 and 2019 have not been adjusted.The Board of Directors and the Executive Board have In our opinion, the Management’s Review includes a today discussed and adopted the Annual Report of fair review of the development in the Group’s and the PWT Group A/S for 2023.Parent Company’s operations and  nancial conditions, results for the year, cash flows and  nancial position as The Annual Report has been prepared in accordance well as a description of the most signi cant risks and with the Danish Financial Statements Act. uncertainty factors that the Company face.It is our opinion that the  nancial statements give a We recommend that the Annual General Meeting ap-true and fair view of the Group’s and the Parent Com-prove the Annual Report.pany’s  nancial position at 31 December 2023, and of the results of the Group’s and the Parent Company’s operations and cash flows for the  nancial year 1 Ja-nuary 2023 - 31 December 2023. THE BUSINESS PLATFORM - A BRAND HOUSE6 Swedish stores, while 11 Danish stores, 8 Norwegian, PWT Group is a leading Nordic brand house within and 6 Swedish stores are franchises. Wagner primarily men’s fashion, operating in both the B2B, B2C, and D2C sells the Group’s own brands.markets.PERFORMANCE IN THE FINANCIAL YEAR UNDER PWT Brands offers distinctive brands with a full product REVIEWrange within menswear. PWT Brands develops, produc-Retail B2C offline has impacted the results for 2023 es, and sells a wide range of strong brands:positively. Increased revenue and a higher coverage ra-• Lindberghtio have led to Retail performing better than expected, • Bisonbut increased rental and personnel costs, as anticipat-• Junk de Luxeed, resulted in a result lower than in 2022.• Morgan• Jacks Sportswear Intl.PWT Brands B2B has impacted the results for 2023 positively. Although revenue has fallen, a signicantly These brands are sold to approximately 700 independ-higher coverage ratio has led to a better result than ex-ent retailers in 27 countries, as well as to PWT Groups’ pected. Despite increased expenses, especially for per-two retail chains Tøjeksperten and Wagner.sonnel, the results are on par with last year.PWT Group’s two retail chains are operated under sep-The B2C online business revenue has increased signif-arate names and focus on different target groups. The icantly both in terms of expectations and compared to strategy also sets out to further optimize management last year, but earnings, due to substantial marketing ex-and back-ofce functions handling procurement, mar-penses, were below expectations.keting, and administration in order to capitalize on syn-ergies and obtain economies of scale.The Group’s EBITDA was DKK 124 million in 2023, which is satisfactory but below last year.Tøjeksperten is the largest menswear omni-channel retailer in Denmark with 112 stores across the coun-Despite the lower result, the result before tax (EBT) for try, of which 57 are owned by the Group, while 55 are 2023 is still assessed as satisfactory and in line with franchises. Tøjeksperten focuses on quality clothing expectations from the previous years annual report. So, for fashion-conscious men of all ages and sells both its despite challenges and increased costs, PWT managed own and external brands.to maintain protability and achieve the nancial tar-gets.Wagner is a Scandinavian menswear omni-channel re-tailer, which has 20 stores in Denmark, 8 in Norway, and Total revenue increased to DKK 803 million in 2023 12 in Sweden. Of these, the Group owns 9 Danish and from DKK 794 million in 2022. PWT GROUP A/STØJEKSPERTENWAGNER PWT BRANDS100%100%100%100%100%PWT PWT PWT WAGNER COGS APSGERMANYSWEDEN AB* NORWAY ASCHINA APSGMBH*100% Wagner Birsta AB 100% Wagner Karlstad AB 100% Wagner Växjö ABA satisfactory gross margin of 38.4% was realized, as • Improving the quality and relevance of our prod-expected, slightly lower than last year due to increased ucts.costs.• Increased focus on the product mix and merchan-dising in the stores.Prot for the year was DKK 73 million.• Continued optimization of retail focusing on secur-ing earnings in each store, renewing the stores, and In 2023, DKK 44 million was invested primarily in new building bigger stores in attractive locations.stores, expansion/improvements of existing stores, as • Continued investments in the Group’s online sales, well as in a new website and IT security. A dividend of including B2C, D2C, B2B, and omni-channel sales.DKK 75 million has been distributed. The decision to distribute was made while ensuring that there is suf-EVENTS AFTER THE BALANCE SHEET DATEcient liquidity in the company, which led to the distribu-No material events have occurred after the balance tion being made in two steps during 2023.sheet date.Net cash and cash equivalents on 31 December 2023 OUTLOOKamounted to DKK 96 million, which is very satisfactory.We aim to maintain the same level of performance, however, we anticipate a potentially challenging year OPERATIONAL OPTIMIZATIONcharacterized by further increases in cost levels, be-The ongoing efforts to optimize PWT Group’s business yond our control. We have already observed xed costs and constantly improve our customers’ experience with rising, and the uncertain demand from customers is the Group’s brands and retail chains continued in 2023 heavily influenced by macroeconomic developments, and included:that are still uncertain. Nevertheless, we remain com-mitted to navigating these challenges with agility and proval of the strategy, Management assesses relevant determination, staying true to our long-term vision and business risks. For the purpose of the risk assessment, values.Management considers, when required, the policy on currency risks adopted by the Board of Directors.Naturally, the outlook will depend on parameters im-pacting consumer behavior and disposable amounts. FINANCIAL RISKSThese include:The Group manages its nancial risks centrally and co-• The war in Ukraine and its impact on the economy.ordinates liquidity management and funding. Together • High inflation rates and potential additional nega-with the Board of Directors, Management annually as-tive consumer behavior.sesses the Group’s most important risks and, by way of • General uncertainty related to the customers’ -regular monthly reporting, reports on aspects that may nancial circumstances.materially affect the Group’s activities and risks. The corporate policy is to not engage in speculation with In general, 2024 is expected to be a challenging year, nancial risks. At the same time, we follow a conserva-possibly affected by the above uncertain conditions. tive dividend policy where we only distribute as we are EBITDA is expected to be 15-20% lower than in 2023.sure that we have sufcient liquidity to ensure the com-pany’s operations.PWT Group has strengthened its nancial position sig-nicantly in the past 3 years. The high earnings have INTERNAL CONTROL AND RISK MANAGEMENT been spent on consolidating the company, repaying all SYSTEMS FOR FINANCIAL REPORTING PURPOSESdebts, and achieving a very high solvency ratio. We con-The Board of Directors and the Executive Board are tinue the very conservative dividend policy model for overall responsible for risk management and internal distribution where we distribute in steps so we are sure controls in the Group for nancial reporting purposes.there is sufcient liquidity to make the distribution. As a The organisational structure and internal guidelines result, PWT is quite condent about the future and has make up the control environment together with legisla-built a healthy and stable nancial foundation.tion and other rules applying to the Group. The Group’s organisational structure and staff numbers are ad-RISK MANAGEMENTdressed at board meetings. In relation to the nancial Risk management is an integrated part of the manageri-reporting process, Management pays special attention al process in PWT Group to limit uncertainties and risks to the following internal controls, supporting a satisfac-in relation to the nancial and strategic targets dened tory nancial reporting process:for the Group. As part of the annual update and ap-• Credit rating of debtors• Assessment of the valuation of USD positions• Assessment of accruals and valuation of invento-riesPWT Group has established a “Group reporting pro-cess” comprising monthly reporting in the form of budget follow-up, performance assessment and com-pliance with dened targets.On the basis of the Group reporting and reports on ot-her selected areas, four board meetings are held each year at which the reporting received is discussed and assessed.Moreover, key employees from the Group participate in the board meetings at which they describe and account for the risks and controls within their areas of respon-sibility.CAPITAL RESOURCESManagement regularly assesses the appropriateness of the Group’s capital resources.Based on net cash and cash equivalents of DKK 96 mil-lion at 31 December 2023 and the credit facilities made available by Spar Nord, the cash resources are expect-ed to be sufcient in 2024. DATA ETHICSIn PWT’s continued efforts to adhere to data ethics standards, PWT has focused on safeguarding custom-er personal information and ensuring compliance with applicable laws and regulations. While PWT previously noted the absence of a formal data ethics policy, it is crucial to clarify that PWT operates under a compre-hensive set of internal guidelines that effectively serve as PWT’s data ethics policy.These guidelines encompass strengthened security measures to prevent data loss and unauthorized ac-cess, alongside providing thorough data ethics and security training for all employees. This ensures under-standing and commitment across the organization to protect personal information.PWT’s data processing procedures respect the bound-aries of customer consent, ensuring data use is appro-priate and proportionate. PWT maintains transparency with PWT’s customers about data usage and provide avenues for them to control their personal information.PWT recognizes the importance of these internal guide-lines in guiding our ethical data practices, demonstrat-ing PWT’s dedication to responsible data management. ESG REPORT 2023SSOCIALOWN WORKFORCEPWT wants to be an attractive workplace and the Group focuses on recruiting, training, and retaining employ-ees. Through ongoing dialog regarding continuing edu-cation, the Group ensures that it has the right qualica-tions it requires. The need for education and personal development is claried annually. Upskilling of employ-ees benets both the employee and PWT.Through a working environment committee, the Group works to ensure good and safe working conditions for all employees. In 2023, the Group installed a debril-lator in the warehouse. In October, all employees were invited to participate in at rst aid training with CPR.The warehouse is regularly visited by the Working En-vironment Authority where safety procedures are re-viewed, and any improvements are recommended. The latest visit was carried out without comments, which means that PWT complies with the Working Environ-ment Legislation.The Group will continue working on employee health and well-being and be an attractive workplace with fo-cus on employee development.SUPPLY CHAINProduction takes place in several countries across the globe. PWT does not own any factories but cooperates with a range of suppliers, both directly at production facilities and via sourcing houses. The top-30 factories represent approx. 93% of all orders, and focus is pri-marily given to these. It is of utmost importance that textiles are produced at factories with decent working conditions. Many re-sources are spent on following up with suppliers on their work on adhering to the Code of Conduct. The Group’s Code of Conduct is based on Danish Fash-ion & Textile’s Code of Conduct and describes the sus-tainability minimum standards set for business part-ners. It is a fact that some production countries represent considerable risks of unsafe working conditions and challenged labour rights. At the same time, the textile 9%6%8%35%SOURCING COUNTRIES9%33%BANGLADESHCHINAPAKISTANVIETNAMPORTUGALOTHERindustry creates millions of jobs, and the Group does not The Group does not expect suppliers to overcome chal-see it as an option to cut out countries from the sourc-lenges overnight but focuses on their ability and will-ing loop. Instead the group will focus on contributing to ingness to demonstrate continuous improvements. improvement through the supply chain management, Considerable resources are spent on following up with and through participation in national and international suppliers on their improvement work. initiatives. As a part of the collaboration with suppliers and gar-However due to the situation in Myanmar, the Group ment factories, facilities are visited regularly.has decided to stop its activities there until the situa-tion changes.In 2023, travel activities reached the same level as in 2022 as employees from Purchase have visited 18 fac-AMFORI BSCItories. Visits have been to both existing and possible PWT has been a member of the amfori since 2013 and new factories.has used the amfori BSCI as the main social certica-tion system for suppliers. Suppliers are expected to Through dialog and improvement activities, factories work with amfori BSCI (SA8000 or similar system), and have achieved better BSCI scores and the number of in cases where a factory has not yet initiated the BSCI factories with A and B-rating have increased from 44% process, they are expected to join within a reasonable in 2022 to 48% in 2023.amount of time. Suppliers are audited annually by third party auditors, and audit reports are used to promote The international Accord for Health and Safety in dialogue on necessary improvements. the Textile and Garment IndustryPWT has been a signatory member of the Accord since As a minimum, the Group expects the factories to 2013. The latest Accord expired on 31 October 2023, achieve a C-rating. and the Group followed the negotiations for a new agreement closely and has in 2024 signed the new agreement for The International Accord for Health and 4%Safety in the Textile and Garment Industry and the 2%CSSP for the Bangladesh Agreement.The Group continues to require all active Bangladeshi suppliers to work actively with the RMG Sustainability Council (RSC). This means 1) engaging with the Inspec-SOCIAL AUDIT 46%PERFORMANCE48%tion Programme, 2) improving re, building, and electri-cal safety based on inspection ndings, 3) participating in the extensive training, and 4) engaging in remediation dialogues based on the RSC grievance mechanism. The Group continuously receives and acts upon inspec-tion reports on the factories’ building safety, as well as re and electrical safety, through the Accord. In 2023, the Group has 15 active Bangladeshi factories in the initiative with an average progress rate of 80%. GOOD (A+B+SA8000)This is 5 factories more than 2022. By increasing the ACCEPTABLE (C + SEDEX)number of factories covered by th Accord together with other members, the Group ensure the occupational NON-ACCEPTABLE (D+E)safety of more factory workers in Bangladesh as these AUDIT EXPIRED/ AUDIT IN PROGRESSfactories are participating in the Accord’s safety com-mittee training.ETHICS & ANTI-CORRUPTIONAnti-Corruption PolicyPWT wishes to combat corruption and bribery and seeks to promote openness and transparency. PWT has established an Anti-corruption Policy, which is based on the UN Convention against Corruption and signed by the top management. It is included in the Employ-ee Handbook and Supplier Manual. The policy covers risks like corruption, bribery, facilitation payment and Hospitality. Together with the policy, a “Facilitation and Hospitality Register” has been set up in which employ-ees register gifts. The policy is communicated inter-nally, and the facilitation and hospitality register are monitored on an annual basis as well. During 2023, one item was registered on the Facilitation and Hospitality Register. The Group will continue to keep awareness on this subject.Animal Welfare PolicyAll relevant suppliers are required to sign and com-ply with the Group’s Animal Welfare Policy. It states, among other things, that PWT only accepts leather from animals bred for the food industry, that mulesing is not accepted and that live plucking of birds is unacceptable. The policy is based on The Five Animal Freedoms.REPORTING & TRANSPARENCYPWT has set up a grievance mechanism on the Group’s website, which ensures that stakeholders can report any concern relating to PWT anonymously. Until now, no grievances have been received.The Group’s Internal whistleblower mechanism aims to provide a condential channel through which employ-ees can report concerns related to unethical behavior, violations of company policies, or any activities that may pose risks to the environment or society. To ensure that no conflict of interest arises, all reports will be ini-tially received by an external partner who is responsible for an initial assessment of the report.Since the establishment of the internal whistleblower mechanism, no issues have been reported. RISK-MANAGEMENTOn an annual basis, the Group conducts a risk assessment, including action plans. Below is the latest version:HUMAN AND LABOUR RIGHTSRelevant policies: CSR Policy Commitment, Code of Conduct, Restricted Chemicals List (RSL)Risks in our own Risks in our Action planbusinesssupply chainRisk of occupational A working environment committee continuously assesses the working hazards and injuriesenvironment and makes recommendations for improvements. Risk of overtime Regular overtime is a common challenge for the industry, but the Group is work on a regular continuously working to prevent excessive overtime. The team managers basisare constantly improving working processes in order to ensure a more efcient flow and hence avoid excessive overtime.Health of employeesAll employees are covered by a health insurance which includes e.g. minor operations or psychological treatments, and is a supplement to the public health service. A health insurance ensures quick investigation, treatment and helps our employees to get well and return to work.The Group conducts rst aid trainings with CPR in collaboration with Falck. Once a year all employees will be offered trainings. First aid trainings will be mandatory for all our store assistant trainees.In addition, a debrillator has been installed at the Main Ofce and Warehouse.Unsafe PWT’s suppliers must provide safe working conditions for their employ-working ees.conditionsAs a member of the amfori BSCI, the Group expects its suppliers to en-sure safe working conditions by complying with amfori requirements and being part of the audit program. As a signatory member of the International Accord for Health and Safe-ty in the Textile and Garment Industry, the Group is supporting safer production buildings for suppliers in Bangladesh. It is a requirement to all suppliers that they can provide valid permits of building safety.Excessive PWT works to ensure that its own buying practices do not contribute working hoursto excessive working hours. Orders are placed well in advance, and the Group ensures that changes are not made shortly before deadlines. The Group assesses suppliers’ practices; overtime should be voluntary and limited, management should develop a contingency plan and is encour-aged to set up electronic time systems, etc.Lack of Suppliers’ ability to ensure the health of their employees is assessed ensuring the on an ongoing basis. Indicators include proper sanitary facilities, clean health of drinking water, medical staff, regular health check-ups, access to medi-workerscine, proper conditions for pregnant employees, etc. Whenever possible, the Group promotes and invites suppliers to relevant trainings, such as the OSH course in Dhaka where participating factories were instructed by Danish OSH experts.HUMAN AND LABOUR RIGHTSRelevant policies: CSR Policy Commitment, Code of Conduct, Restricted Chemicals List (RSL)Risks in our own Risks in our Action planbusinesssupply chainUnfair PWT does not own factories and cannot manage salaries paid to suppli-remunerationers’ workers. However, the Group does negotiate realistic prices in order not to contribute to unfair remuneration. PWT requires that all suppliers comply with national regulation, and the Group assesses suppliers’ ability to support workers nancially in other ways, e.g. by providing free transportation, low-cost canteens, and kiosks with low-cost provisions.Discrimination Suppliers’ ability to provide equal rights and payment for everyone is assessed on an ongoing basis. Indicators include recruitment and salary procedures, respectful behavior from managers towards workers, etc.Precarious Production facilities should keep proper records of contracts and em-employment ployee ID, and have proper notice and leave procedures in place in order and bonded to avoid precarious employment. PWT focuses on questioning the use of labourpiece-rated employees and probation workers, which can be a method to keep wages down.Freedom of PWT assesses suppliers’ respect for worker associations and trade association unions as well as their ability to include workers in decision-making. and collective The Group stresses to suppliers that safety or WP committees can be bargainingvery valuable and support suppliers in establishing good committee practices. Through the Accord, all Bangladeshi suppliers are required to establish Health and Safety committees, and they receive training on their rights and responsibilities in regard to committee practices.Child labour In general, this issue has improved among suppliers. However, the and the lack of Group still considers child labour as a substantial risk within the supply protection of chain. The Group became a member of amfori BSCI in 2013, an initiative young workersthat works to improve working conditions on factories. Factories are au-dited on a yearly basis and preventing child labour is an essential issue. ENVIRONMENT AND CLIMATERelevant policies: CSR Policy Commitment, Code of Conduct, Restricted Chemicals List (RSL), Animal Welfare PolicyRisks in our own Risks in our Action planbusinesssupply chainCO2-emissionsSince 2020, PWT is working with the CEMAsys system to calculate CO2 emissions in a structured way, based on the GHG Protocol. Please read more in the section “Climate & Environment”Use of textile PWT prioritizes longevity in the design and production of each product. materialsFocus is on quality over quantity, leading us to reduce the number of styles every year. The Group is committed to sourcing quality materials that range from organic to recycled. In 2019, PWT joined Better Cotton, one of the world’s largest sustainable textile initiatives. The Group is also a member of the Forest Steward Council (FSC). The plan for the coming years involves the introduction of additional materials that are better for the environment.Plastic use, and PWT has replaced all packaging materials in the stores with ones made of packaging in recycled materials. Bags are not provided for free.generalIn the coming years, the Group will look into how to reduce the amount of packaging material, such as poly bags, tissue paper, carbon boxes, etc., and how to replace virgin materials with recycled ones.TransportPWT species to suppliers that the Group prefers sea freight, and that train freight is preferred over air freight, reducing air freight to an absolute mini-mum. Furthermore, all shipments from central inventories are continuously optimized.Textile wasteIn collaboration with an extern partner we collect our textile waste, sort it, and make sure most of our textile waste is recycled.Animal All relevant suppliers are required to sign and comply with the Animal WelfareWelfare Policy. It states, among other things, that PWT only accepts leather from animals bred for the food industry, that mulesing is not accepted, and that live plucking of birds is an unacceptable practice.Risk of use All suppliers are obliged to comply with the Group’s RSL, which is aligned of harmful with the EU regulation, REACH. Styles from each collection are selected for chemicals, testing at Bureau Veritas, based on a risk assessment. and of insuf-In 2021, PWT accomplished to get an OEKO-TEX certication for a range of cient chemical products.management at production sites.ENVIRONMENT AND CLIMATERelevant policies: CSR Policy Commitment, Code of Conduct, Restricted Chemicals List (RSL), Animal Welfare PolicyRisks in our own Risks in our Action planbusinesssupply chainIn general, In the coming years, the Group will engage with strategic suppliers about poor envi-the amfori BEPI programme, in order to support them in setting up suf-ronmental cient policies and processes in regard to environmental management. management This includes looking at chemical handling, waste management, water and at production energy use, etc.facilitiesANTI-CORRUPTIONRelevant Policy: CSR Policy Commitment, Code of Conduct, Anti-Corruption PolicyRisks in our own Risks in our Action planbusinesssupply chainSourcing from Together with the policy, a ‘Facilitation and Hospitality Register’ has been countries with set up where employees register gifts. This register is monitored on an high corruption annual basis as well. The aim of this is to increase the awareness level risksinternally. Currently, the Board of Directors consists of 40% fe-males and the Group has thus achieved the goal of an equal gender distribution of 40% female and 60% male. The Board continues to strive to nd suitable fe-male candidates when recruiting board members. Currently, the Board of Directors consists of 40% fe-males and the Group has thus achieved the goal of an equal gender distribution of 40% female and 60% male. The Board continues to strive to nd suitable fe-male candidates when recruiting board members. 0.40 PWT is committed to build a workforce through the entire company that is represented equally by both genders across both the management team and other managerial positions. As a menswear company, PWT has an average of 80% male and 20% female employ-ees throughout the Group. At management level, the average is 88% male man-agers and 12% female managers in 2023 which is the same as in 2022. Since there have been no replace-ments at management level in 2023, the Group has not used its internal procedures in 2023. The staff policies and HR processes are directed at re-taining qualied female employees by addressing the work/life balance to create a desirable working envi-ronment as well as supporting personal development through performance reviews, feedback, and leader-ship training.The Group has a special focus on the gender distribu-tion in the individual departments when recruiting, just as it has focused on this in our student recruitment.Furthermore, the policy for the Management Team em-phasizes diversity in the broadest sense and lays down the principle to always hire the most qualied person, regardless of gender, age, nationality, sexual orienta-tion, or religious beliefs. PWT will continue to work to-ward increasing diversity throughout the organization as well as in management levels and aim to achieve more balanced gender representation across the man-agement level with a minimum of 25% women by the end of 2026. PWT is committed to build a workforce through the entire company that is represented equally by both genders across both the management team and other managerial positions. As a menswear company, PWT has an average of 80% male and 20% female employ-ees throughout the Group. At management level, the average is 88% male man-agers and 12% female managers in 2023 which is the same as in 2022. Since there have been no replace-ments at management level in 2023, the Group has not used its internal procedures in 2023. The staff policies and HR processes are directed at re-taining qualied female employees by addressing the work/life balance to create a desirable working envi-ronment as well as supporting personal development through performance reviews, feedback, and leader-ship training.The Group has a special focus on the gender distribu-tion in the individual departments when recruiting, just as it has focused on this in our student recruitment.Furthermore, the policy for the Management Team em-phasizes diversity in the broadest sense and lays down the principle to always hire the most qualied person, regardless of gender, age, nationality, sexual orienta-tion, or religious beliefs. PWT will continue to work to-ward increasing diversity throughout the organization as well as in management levels and aim to achieve more balanced gender representation across the man-agement level with a minimum of 25% women by the end of 2026. The staff policies and HR processes are directed at re-taining qualied female employees by addressing the work/life balance to create a desirable working envi-ronment as well as supporting personal development through performance reviews, feedback, and leader-ship training.The Group has a special focus on the gender distribu-tion in the individual departments when recruiting, just as it has focused on this in our student recruitment.Furthermore, the policy for the Management Team em-phasizes diversity in the broadest sense and lays down the principle to always hire the most qualied person, regardless of gender, age, nationality, sexual orienta-tion, or religious beliefs. PWT will continue to work to-ward increasing diversity throughout the organization as well as in management levels and aim to achieve more balanced gender representation across the man-agement level with a minimum of 25% women by the end of 2026. The staff policies and HR processes are directed at re-taining qualied female employees by addressing the work/life balance to create a desirable working envi-ronment as well as supporting personal development through performance reviews, feedback, and leader-ship training.The Group has a special focus on the gender distribu-tion in the individual departments when recruiting, just as it has focused on this in our student recruitment.Furthermore, the policy for the Management Team em-phasizes diversity in the broadest sense and lays down the principle to always hire the most qualied person, regardless of gender, age, nationality, sexual orienta-tion, or religious beliefs. PWT will continue to work to-ward increasing diversity throughout the organization as well as in management levels and aim to achieve more balanced gender representation across the man-agement level with a minimum of 25% women by the end of 2026. 2026 5 5 0.12 0.12 0.25 8 8 Aalborg Ole Koch Hansen CEO Claus Back Nielsen CFO Lars Johansson Chairman) Dorte Eg Signe Trock Hilstrøm Michael Kjær Ole Koch Hansen TO THE SHAREHOLDER OF PWT GROUP A/S OPINIONIn our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the nancial position of the Group and the Parent Company at 31 December 2023, and of the results of the Group’s and the Parent Company’s o- perations and cash flows for the nancial year 1 Janu-ary - 31 December 2023 in accordance with the Danish Financial Statements Act.We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of PWT Group A/S for the nancial year 1 January - 31 Decem-ber 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, inclu- ding a summary of signicant accounting policies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (“nancial state-ments”). BASIS FOR OPINIONWe conducted our audit in accordance with Interna-tional Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsi- bilities under those standards and requirements are furt-her described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accoun- tants (IESBA Code) and the additional ethical require-ments applicable in Denmark, and we have fullled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufcient and appro-priate to provide a basis for our opinion. STATEMENT ON MANAGEMENT’S REVIEWManagement is responsible for Management’s Review.Our opinion on the nancial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the nancial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the nancial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether Management’s Review provides the information re-quired under the Danish Financial Statements Act.Based on the work we have performed, in our view, Man-agement’s Review is in accordance with the Consolida- ted Financial Statements and the Parent Company Fi-nancial Statements and has been prepared in accor- dance with the requirements of the Danish Financial Statements Act. We did not identify any material mis-statement in Management’s Review.Management’s Responsibilities for the Financial StatementsManagement is responsible for the preparation of Con-solidated Financial Statements and Parent Company Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management deter-mines is necessary to enable the preparation of nan-cial statements that are free from material misstate-ment, whether due to fraud or error.In preparing the nancial statements, Management is responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, dis-closing, as applicable, matters related to going con-cern and using the going concern basis of accounting in preparing the nancial statements unless Manage-ment either intends to liquidate the Group or the Pa-rent Company or to cease operations, or has no realis-tic alternative but to do so. Auditor’s Responsibilities for the Audit of the Fi-nancial StatementsOur objectives are to obtain reasonable assurance about whether the nancial 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 applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered ma-terial if, individually or in the aggregate, they could reasonably be expected to influence the economic de-cisions of users taken on the basis of these nancial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Den-mark, we exercise professional judgement and main-tain professional scepticism throughout the audit. We also:• Identify and assess the risks of material mis-statement of the nancial statements, whetherdue to fraud or error, design and perform auditprocedures responsive to those risks, and obtainaudit evidence that is sufcient and appropriateto provide a basis for our opinion. The risk of notdetecting a material misstatement resulting fromfraud is higher than for one resulting from error asfraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.• Obtain an understanding of internal control re- levant to the audit in order to design audit proce-dures that are appropriate in the circumstances,but not for the purpose of expressing an opinionon the effectiveness of the Group’s and the ParentCompany’s internal control.• Evaluate the appropriateness of accounting po- licies used and the reasonableness of accountingestimates and related disclosures made by Ma- nagement.• Conclude on the appropriateness of Management’s use of the going concern basis of accounting inpreparing the nancial statements and, based onthe audit evidence obtained, whether a materialuncertainty exists related to events or conditions that may cast signi cant doubt on the Group’s and the Parent 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 audi-tor’s report to the related disclosures in the  nancial 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 au-ditor’s report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern.• Evaluate the overall presentation, structure and con-tents of the  nancial statements, including the dis-closures, and whether the  nancial statements re-present the underlying transactions and events in amanner that gives a true and fair view.• Obtain suf cient appropriate audit evidence regar-ding the  nancial information of the entities or busi-ness activities within the Group to express an opi-nion on the Consolidated Financial Statements. Weare responsible for the direction, supervision andperformance of the group audit. We remain solelyresponsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signi cant audit  ndings, includ-ing any signi cant de ciencies in internal control that we identify during our audit. Aalborg PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab RASMUS MELLERGAARD STENSKROG State Authorised Public Accountant mne34161 803493000 794180000 781096000 782573000 341834000 331766000 338906000 332581000 0 119000 0 30000 153228000 138280000 141853000 131229000 308431000 324253000 300337000 318793000 184308000 170392000 178044000 167047000 30000 97000 30000 97000 124093000 153764000 122263000 151649000 20059000 19084000 18805000 18780000 104034000 134680000 103458000 132869000 0 0 -2335000 8119000 7558000 7707000 8273000 1004000 12600000 4740000 11186000 4603000 98992000 137647000 98210000 137389000 26012000 22395000 25230000 22137000 72980000 115252000 72980000 115252000 21837000 20771000 21837000 20771000 126000 391000 126000 391000 9749000 1850000 7961000 1850000 752000 956000 752000 956000 32464000 23968000 30676000 23968000 24735000 17096000 20969000 15555000 18797000 14726000 17193000 13033000 43532000 31822000 38162000 28588000 0 0 14372000 8706000 0 0 0 0 0 0 20147000 24824000 20968000 18470000 20172000 18245000 20968000 18470000 54691000 51775000 96964000 74260000 123529000 104331000 229709000 256356000 223637000 254831000 43459000 48473000 40047000 44818000 1200000 3000000 1200000 3000000 52000 0 0 0 111000 2703000 10747000 8687000 3712000 8295000 3707000 4663000 6164000 6120000 5536000 5817000 54698000 68591000 61237000 66985000 96196000 52027000 89572000 49088000 380603000 376974000 374446000 370904000 477567000 451234000 497975000 475235000 16698000 16698000 16698000 16698000 -906000 -2915000 -906000 -2915000 335000 -888000 335000 -888000 0 0 431000 511000 2285000 2287000 2285000 2287000 200876000 212917000 200445000 212406000 55000000 45000000 55000000 45000000 274288000 273099000 274288000 273099000 7489000 7533000 7436000 7533000 0 0 19360000 20297000 7489000 7533000 26796000 27830000 7334000 7007000 7334000 7007000 15727000 15319000 15727000 15319000 23061000 22326000 23061000 22326000 58314000 55556000 56635000 55340000 0 0 6302000 4769000 549000 31000 25000 12000 24933000 12360000 24933000 12360000 79496000 71106000 76866000 70282000 9437000 9223000 9069000 9217000 172729000 148276000 173830000 151980000 195790000 170602000 196891000 174306000 477567000 451234000 497975000 475235000 10394000 1985000 2079000 -2111000 9646000 145954000 45000000 212947000 0 -1985000 0 0 0 1985000 0 0 0 0 0 0 0 0 45000000 45000000 0 0 0 0 0 115252000 0 0 0 0 -1223000 0 0 0 -1223000 0 0 -2079000 0 0 0 0 -2079000 0 0 -2915000 0 0 0 0 -2915000 6304000 0 0 0 -7359000 -5274000 0 -6329000 0 0 0 0 0 45000000 -45000000 0 16698000 0 -2915000 -888000 2287000 212917000 45000000 -888000 0 0 0 0 0 -30000000 0 -30000000 0 0 0 0 0 0 45000000 45000000 0 0 0 0 0 72980000 0 0 0 0 -1223000 0 0 0 -1223000 0 0 2915000 0 0 0 0 2915000 0 0 -906000 0 0 0 0 -906000 0 0 0 0 -2000 -21000 0 -23000 0 0 0 0 0 55000000 -55000000 0 16698000 0 -906000 335000 2285000 200876000 55000000 10394000 1985000 2079000 -2111000 0 9646000 145954000 45000000 0 -1985000 0 0 0 0 1985000 0 0 0 0 0 0 0 0 45000000 0 0 0 0 0 0 115252000 0 0 0 0 -1223000 0 0 0 0 0 0 -2079000 0 0 0 0 0 0 0 -2915000 0 0 0 0 0 6304000 0 0 0 0 -7359000 -5274000 0 0 0 0 0 0 0 45000000 -45000000 16698000 0 -2915000 -888000 511000 2287000 212406000 45000000 0 0 0 0 0 0 -30000000 0 0 0 0 0 0 0 0 45000000 0 0 0 0 0 0 72980000 0 0 0 0 -1223000 0 0 0 0 0 0 2915000 0 0 0 0 0 0 0 -906000 0 0 0 0 0 0 0 0 0 0 -2000 -21000 0 0 0 0 0 0 0 55000000 -55000000 16698000 0 -906000 335000 431000 2285000 200445000 55000000 20059000 19084000 18805000 18780000 Income from Group enterprises Income from Group enterprises Income from Group enterprises Income from Group enterprises 0 0 2335000 -8119000 28000 315000 16000 303000 Financial income Financial income Financial income Financial income -7558000 -7707000 -8273000 -1004000 Financial expenses Financial expenses Financial expenses Financial expenses 12600000 4740000 11186000 4603000 Cash generated from operations Cash generated from operations Cash generated from operations Cash generated from operations 124121000 154079000 122279000 151952000 12145000 -13116000 8625000 -2376000 26647000 -117284000 31194000 -115759000 -13852000 4404000 -10217000 1045000 176765000 19275000 172314000 32772000 245000 288000 241000 524000 2673000 3390000 2659000 12600000 10399000 10655000 9873000 10088000 163938000 5518000 160023000 10608000 23419000 23658000 20755000 20474000 16953000 13590000 14867000 13590000 0 0 7714000 735000 1036000 4994000 1927000 4995000 30000 30000 30000 51000 2552000 0 0 0 -43930000 -42212000 -45233000 -39743000 Change in bank loans Change in bank loans Change in bank loans Change in bank loans 0 -34343000 0 -34343000 Repayment lease debt Repayment lease debt Repayment lease debt Repayment lease debt 0 -26000 0 -26000 Paid debt composition Paid debt composition Paid debt composition Paid debt composition -816000 -2080000 -816000 -2080000 0 6304000 0 6304000 Convertible bonds Convertible bonds Convertible bonds Convertible bonds -23000 -6304000 -23000 -6304000 Change in intercompany loans Change in intercompany loans Change in intercompany loans Change in intercompany loans 0 0 1533000 1989000 75000000 45000000 75000000 45000000 -75839000 -81449000 -74306000 -79460000 44169000 -118143000 40484000 -108595000 170170000 157683000 ACCOUNTING POLICIES Financial reporting basisPWT Group A/S is a limited liability company domiciled in Denmark. The nancial information of the annual report for 2023 comprises both the consolidated nancial statements of PWT Group A/S and its subsidiaries (group) as well as the parent company nancial statements.The annual report of PWT Group A/S for 2023 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The Board of Directors and the Executive Board have discussed and adopted the annual report of PWT Group A/S. The annual report will be presented for adoption by the shareholders of PWT Group A/S at the annual general meeting on 29 April 2024.Basis of preparationThe consolidated nancial statements and the parent company nancial statements are presented in Danish kroner thousands (DKK ’000), which is the reporting currency of the Group’s activities and the Parent Company’s functional currency. Revenue is recognised in the income statement as earned. Furthermore, value adjustments of nancial assets and liabilities 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 changes to accounting estimates related to amounts previously recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benets attributable to the asset will flow to the 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 benets will flow out of the 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.Certain nancial assets and liabilities are measured at amortised cost, which involves the recognition of a constant effective interest rate over the maturity period. Amortised cost is calculated as original cost less any repayments and with addition/deduction of the cumulative amortisation of any difference between cost and the nominal amount. Recognition and measurement take into account predictable losses and risks occurring before the presentation of the annual report which conrm or invalidate affairs and conditions existing at the balance sheet date. CONSOLIDATIONConsolidated nancial statementsThe annual report comprises the Parent Company, PWT Group A/S, and enterprises under the control of the Parent Company. The Parent Company is deemed to exercise control when the Group controls an entity and the Group is exposed to, or has the right 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.Associates are entities over which the Group has signi cant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.Newly acquired or established enterprises are recognised in the consolidated  nancial statements from the time of acquisition. Enterprises that have been sold or wound up are recognised in the consolidated income statement up to the time of disposal. Comparative  gures are not adjusted for newly acquired, sold or wound-up enterprises. Investments in subsidiary enterprises are set off by the proportional share of the subsidiary enterprises’ market value of net assets and liabilities at the acquisition date. Positive differences between the acquisition value and market value of acquired and identi ed assets and liabilities, including a provision for liabilities for restructuring, are recognised as goodwill and amortised in the income statement according to an individual assessment of their useful lives.Consolidation principlesThe consolidated  nancial statements are prepared on the basis of the  nancial statements of PWT Group A/S and its subsidiaries in which similar  nancial statement items are integrated. On consolidation, intra-group income and expenses, share Groups, dividends, intra-group balances as well as realised and unrealised internal gains and losses on intra-group transactions are eliminated. The annual reports used for preparing the consolidated  nancial statements have been recognised in accordance with the accounting policies of the Group.Foreign currency translationOn initial recognition, transactions denominated in currencies different from the individual enterprise’s functional currency 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  nancial income or  nancial 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 is recognised in the income statement as  nancial income or  nancial expenses.Upon recognition in the consolidated  nancial statements of enterprises with a functional currency different from DKK, the income statements are translated into Danish kroner at an average exchange rates for the year, and balance sheet items are translated at the exchange rates at the balance sheet date. Exchange rate adjustments are recognised in the equity.Derivative  nancial instrumentsDerivative  nancial instruments are initially recognised at fair value at the settlement date and subsequently measured at fair value at the balance sheet date. Positive and negative fair values of derivative  nancial instruments are recognised as a separate balance sheet item.Changes in the fair value of derivative  nancial instruments designated as or qualifying for recognition as an effective hedge of future transactions are recognised in equity under retained earnings with respect to the effective portion of the hedges. The ineffective portion is recognised in the income statement. If the hedged transaction results in an asset or a liability, the amount deferred in equity is transferred from equity and recognised in the cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense, the amount deferred in equity is transferred from equity to the income statement in the period in which the hedged transaction is recognised. The amount is recognised in the same item as the hedged transaction.For derivative  nancial instruments not qualifying for treatment as hedging instruments, changes are regularly recognised in the income statement as  nancial income and  nancial expenses.Segment disclosuresThe segment information has been prepared in accordance with the Group’s accounting policies and is consistent with the Group’s internal procedures for reporting to the Group management and board.Special itemsSpecial items comprise signi cant income and expenses of a special nature in relation to the Group’s operating activities, such as costs for extensive structuring of processes and fundamental structural adjustments as well as any disposable gains and losses in connection therewith, which are signi cant over time. Special items also include other signi cant amounts of a non-recurring nature, which in the management’s assessment are not part of the Group’s primary operations.Special items for the year are speci ed in note 5, including a description of recognition in the income statement for each item.INCOME STATEMENTRevenueRevenue from the sale of goods for resale and  nished goods is recognised in the income statement where delivery and transfer of risk have been made to the buyer by year end, and the income may be measured reliably and is expected to be received. Revenue is measured excluding VAT and duties, less discounts in relation to the sale and less discounts and bonus points relating to loyalty programmes (customer club).B2B:The Group manufactures and sells a range of clothes in the B2B market. Sales are recognised when control of the products has transferred, being when the products are delivered to the B2B. The wholesaler has full discretion over the channel and price at which to sell the products, and there is no unful lled obligation that could affect the wholesaler’s acceptance of the products. Delivery occurs when the products have been shipped to the speci c location, the risks of obsolescence and loss have been transferred to the B2B, and either the B2B has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satis ed. A receivable is recognised when the goods are delivered.A  nancing element is not included in net revenue, as payment is made upon delivery or within a short credit period of, typically, 30-60 days.RETAIL:The Group operates a chain of retail stores selling clothes. Revenue from the sale of goods is recognised when a Group entity sells a product to the customer. Payment of the transaction price is due immediately when the customer purchases the clothes and takes delivery in store. It is the Group’s policy to sell its products to the end customer with a right of return. Therefore, a right to the returned goods is recognised for products expected to be returned. Accumulated experience is used to estimate such returns at the time of sale.Bonus points relating to loyalty programmes are recognised in the income statement as a reduction in revenue and liabilities (contract liabilities). The collected bonus points are measured based on the projected utilisation of such points, which is based on historical  gures.Cost of salesTogether with changes in inventories of goods for resale, this item comprises costs incurred to generate revenue. Changes in inventories of goods for resale are recognised as cost of goods for resale.Other external costsOther external costs comprise cost of premises, selling and distribution costs as well as administrative expenses. Supplements to cover marketing costs are recognised as other external costs.Staff costsStaff costs comprise payroll, pensions and other social security costs relating to staff.Other operating income and costsOther operating income and costs comprise items secondary to the primary activities of the enterprises, including gains on disposal of intangible assets and plant and equipment.Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise amortisation, depreciaition and impairment of intangible assets and property, plant and equipment.Income from Group enterprises and associatesThe proportional share of pro t for the year is recognized under the item “Share of net pro t of subsidiaries” and“Share of net pro t of associate” in the income statement.Financial income and expensesFinancial income and expenses comprise interest income and expense, realised and unrealised exchange gains and losses on transactions in foreign currencies, amortisation of  nancial assets and liabilities as well as surcharges and refunds under the on-account tax scheme. Financial income and expenses are recognised at the amounts relating to the  nancial year.Tax on pro t for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the income statement by the amount that can be attributed to the pro t for the year and directly in equity by the amount attributable to entries made directly to equity.The parent and all Danish group enterprises are jointly taxed. The Danish income tax charge is divided among the pro t-making and loss-making Danish enterprises by their taxable income (full allocation method). BALANCE SHEETIntangible assetsGOODWILLAcquired goodwill is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over the expected useful life which is estimated at 20 years. Useful life has been determined taking into account the long-term strategy of establishing a national fashion business. The carrying amount of goodwill is assessed continuously and written down via the income statement in cases where the carrying amount exceeds expected future net income from the enterprise or activity to which the goodwill is related. SOFTWARESoftware is measured at cost less accumulated amortisation and impairment losses. The basis of amortisation is cost.TRADEMARKSTrademarks are measured at cost less accumulated amortisation. The basis of amortisation is cost. The expected useful life is based on the trademark’s marked position.OTHER INTANGIBLE ASSETSOther intangible assets are measured at cost less accumulated amortisation. The basis of amortisation is cost.Any value of lease rights (bracket money) acquired in connection with the purchase of clothing stores is included in other intangible assets. Remuneration for other leasehold rights is amortised on a straight-line basis over the useful life, which is estimated at ten years.Useful lifeGoodwill .......................................................................................................................................................... 20 yearsSoftware ......................................................................................................................................................... 3-5 yearsTrademarks ..................................................................................................................................................5-10 yearsOther intangible assets ...................................................................................................................................10 yearsDevelopment projectsCosts on development projects include wages, depreciation and other costs that can be directly and indirectly attributed to the company’s development activities.Development projects that are clearly de ned and identi able, where the degree of technical utilization, suf cient resources and a potential future market or development opportunity in the Group can be demonstrated, and where the intention is to manufacture, market or use the project, are recognized as intangible  xed assets if there is suf cient assurance that the capital value of the future earnings can cover production, sales and administration costs as well as the development costs themselves.Development projects that do not meet the criteria for inclusion in the balance sheet are recognised as costs in the income statement as the costs are incurred.Capitalized development costs are measured at cost less accumulated depreciation and write-downs or recoverable amount, if this is lower. An amount corresponding to the recognized development costs is reserved in the item Reserve for development expenses under equity. The reserve is continuously reduced with depreciation and write-downs on the development projects.Capitalized development costs are depreciated from the time of completion on a straight-line basis over the period in which the development work is expected to generate economic bene ts.Plant and equipmentFixtures and  ttings, tools and equipment as well as leasehold improvements (stores) are measured at cost less accumulated depreciation and impairment losses.The basis of depreciation is cost less projected residual value after the end of the useful life.Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use.The capitalised value of the lease obligation is recognised as a liability on the balance sheet, and the interest element of the lease payment is recognised as an expense in the income statement. Depreciation is provided on a straight-line basis relying on the following assessment of the assets’ projected useful lives:Useful lifeFixtures and  ttings, tools and equipment ................................................................................................... 3-5 yearsLease obligation ............................................................................................................................................ 3-5 yearsLeasehold improvements .............................................................................................................................. 5-7 yearsThe basis of depreciation is stated taking into account the scrap value of the asset and is reduced by impairment losses. The period of depreciation and the scrap value are determined at the date of acquisition and re-assessed annually.Impairment of plant and equipment and intangible assetsThe carrying amounts of intangible assets and plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If impairment is needed, the assets are written down to their lower recoverable amount and the amount written off is recognised in the income statement. Lease agreementLease contracts relating to tangible  xed assets for which the company bears all material risks and reaps all bene ts arising from such ownership ( nancial leases) are recognised as assets in the balance sheet. At initial recognition, the assets are measured at the calculated cost equal to the lower of fair value and present value of the future lease payments. The interest rate implicit in the lease is used as a discounting factor or an approximate value when calculating the present value. Finance lease assets are depreciated similarly to the company’s other tangible  xed assets. Operating lease payments are recognised in the income statement on a straight-line basis over the lease term. Investment in subsidiaries and associates Investment in subsidiaries and associates are recognised and measured according to the equity method. The equity method is used as a consolidation method. In the balance sheet, under the item Investments in Group enterprises and Investments in associates, the proportional ownership share of the companies’ accounting net asset value calculated on the basis of the fair value of the identi able net assets at the time of acquisition with deductions or additions of unrealised intra-group pro ts or losses and with the addition of residual value of any surplus values and goodwill calculated at the time of the acquisition of the companies.The total net revaluation of capital shares in subsidiaries and associated companies is allocated via the allocation of pro ts to Reserve for net revaluation according to the equity method under equity. The reserve is reduced by dividend distributions to the parent company and regulated by other equity movements in the subsidiaries and associated companies.Subsidiaries and associated companies with a negative net asset value are recognized at DKK 0. If the parent company has a legal or actual obligation to cover the company’s negative balance, a provision for this is recognized.DepositsDeposits comprise rent deposits attributable to the Group’s leaseholds. Deposits are measured at amortised cost.InventoriesInventories are measured at cost on the basis of weighted average prices. In the cases where cost is higher than net realisable value, write-down is made to this lower value. The cost of goods for resale is stated as cost with the addition of delivery costs.The net realisable value of inventories is calculated as the selling price less costs necessary to make the sale and is determined taking into account marketability, obsolescence and development of expected selling price.ReceivablesReceivables are measured at amortised cost, which usually corresponds to nominal value. Write down is made to net realisable value to provide for estimated bad debts. PrepaymentsPrepayments comprise prepaid expenses concerning subsequent  nancial years. Prepayments are measured at cost.Tax payable and deferred taxCurrent tax liabilities and current tax receivable are recognised in the balance sheet as the calculated tax on the taxable income for the year, adjusted for tax on the taxable income for previous years and taxes paid on account. Deferred tax is measured on the temporary differences between the carrying amount and the tax value of assets and liabilities.Deferred tax is measured on the basis of tax rules and tax rates that under applicable law will be applicable on the balance sheet date when the deferred tax is expected to be triggered as current tax. ProvisionsProvisions are recognised when, as a result of past events, the Company has a legal or a constructive obligation, and it is probable that there may be outflow of resources embodying economic bene ts to settle the obligation.Provisions comprise refund liabilities forecast costs arising from leasehold improvements upon relocation and are based on projected costs determined on the basis of the leasehold’s current interior and condition. Provisions with an expected maturity exceeding one year from the balance sheet date are discounted back to net present value.Refund liabilities are measured at net present value of Management’s best estimate of the expenditure required to settle the obligation.Financial liabilities, bank overdrafts, etc.Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. In subsequent periods, the  nancial liabilities are measured at amortised cost, corresponding to the capitalised value using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan.Derivative  nancial instruments are measured at fair value, corresponding to market price at the balance sheet date. Other liabilities, which usually comprise trade payables, amounts owed to Group enterprises and other payables, are measured at amortised cost, which usually corresponds to nominal value. Staff obligationsStaff obligations comprise the employees’ rights to paid holidays after the balance sheet date.The Group has only entered into pension arrangements for de ned-contribution pension plans under which regular pension contributions are paid to independent pension providers as the contributions are earned. The Group has not taken out any de ned-bene t pension plans.Staff obligations are recognised as other payables in the balance sheet.Deferred incomeDeferred income comprises payments received regarding income in subsequent years, including mainly gift cards (contract liabilities). Gift cards payable are recognised at estimated value. See note 24.Cash flow statementThe cash flow statement shows the Company’s cash flows from operating, investing and  nancing activities for the year, the year’s changes in cash and cash equivalents as well as the Company’s cash and cash equivalents at the beginning and end of the year.Cash flows from operating activities are computed as the result for the year adjusted for non-cash operating items, changes in working capital and corporation tax paid. Working capital comprises current assets less current liabilities other than provisions, excluding items included in cash and cash equivalents. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of enterprises and activities, intangible assets, plant and equipment and investments.Cash flows from  nancing activities comprise changes in the size or composition of the share capital and costs relating to the raising of loans, repayment of interest-bearing debt and payment of dividends to shareholders.Cash and cash equivalents comprise cash at bank and in hand.NOTE 1ACCOUNTING POLICIES De nition of  nancial ratios: EBITDA Earnings before restructuring costs, depreciation, amortisation, interest and taxGross pro t/loss x 100Gross marginRevenueOperating pro t/loss x 100Operating margin (EBIT margin)RevenueOperating pro t/loss x 100Return on invested capitalAverage operating assetsClosing equity x 100Solvency ratioTotal equity and liabilities at year endPro t/loss after tax x 100Return on equityAverage equity 400 374 388 368 NOTE 2NOTE 3STAFF COSTSCONSOLIDATED PARENT COMPANY DKK'000 2023 2022 2023 2022Payroll159,281 148,865 154,082 146,024Pensions12,931 10,799 12,831 10,779Other social security costs12,096 10,728 11,131 10,244184,308 170,392 178,044 167,047Thereof:Payroll Executive Board4,892 4,230 4,892 4,230Payroll Board of Directors900 900 900 9005,792 5,130 5,792 5,130 NOTE 2SEGMENT DISCLOSURESCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Geographical marketsDenmark 496,009 489,562 453,590 445,020Other markets 307,484 304,618 288,672 293,011Total revenue 803,493 794,180 781,096 782,573DKK’000Segment revenue465,730 446,703 453,590 445,020RetailWholesale Worldwide337,763 347,477 327,506 337,553803,493 794,180 781,096 782,573The Group sells menswear and accessories mainly its own brands but also external brands for the retail business including online sales and its own brands for wholesalers.PWT has two reportable segments selling menswear one through wholesalers worldwide and one through retailers. The Group primarily operates in Denmark and has, to a minor extent, activities in Norway, Sweden and Germany. NOTE 4DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSESCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Owned assets:Software 6,949 5,948 6,949 5,948Trademarks 265 270 265 270Goodwill 687 80 389 80Other intangible assets 204 190 204 190Fixtures and  ttings, tools and equipment 6,601 6,814 6,038 6,614Leasehold improvements 5,353 5,782 4,960 5,67820,059 19,084 18,805 18,780 NOTE 5NOTE 2 SPECIAL ITEMSSpecial items comprise cost, which is special due to their size or nature.CONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Financial incomeDividend and write off of intercompany balance with WagNo AS 0 7,129 0 1900 7,129 0 190NOTE 7NOTE 7 FINANCIAL INCOMECONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Interest income, banks 110 0 105 0Interest income, Group enterprises 0 0 749 297Other  nancial income 7,448 7,707 7,419 7077,558 7,707 8,273 1,004 NOTE 6OTHER EXTERNAL COSTSCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Fees for auditors appointed at the general meetingStatutory audit services827 522 520 348Other assurance engagements62 81 45 81Tax advisory services895 1,499 878 1,423Other services367 541 187 265Total fee2,151 2,643 1,630 2,117Distributed as follows:PwC1,865 2,371 1,604 2,100Other  rms 286 272 26 172,151 2,643 1,630 2,117Fee for other services than statutory audit services rendered by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, to the Group of TDKK 1.038 thousand consist mainly of tax advisory services and other services. NOTE 8 FINANCIAL EXPENSESCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Interest expense, banks 334 721 333 721Foreign exchange adjustment 10,076 2,459 9,731 3,135Other  nancial expenses 2,190 1,560 1,122 74712,600 4,740 11,186 4,603 NOTE 2NOTE 9TAXCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Tax on pro t/loss for the year from continuing opera-tions is speci ed as follows:Estimated 22% tax on results before tax-21,778 -30,282 -21,606 -30,226Adjustment of tax in foreign entities in propor--1,420 -264 -803 464tion to 22%Tax effect of:Adjustment deferred tax of prior years-1,233 0 -1,233 0Non-deductible cost/income2,306 6,086 2,306 6,086Adjustment of unrecognised tax loss carry 0 0 0 0forwardAdjustment of tax in respect of prior years -3,887 2,065 -3,893 1,539-26,012 -22,395 -25,230 -22,137Effective tax rate 26.3 % 16.3% 25.7% 16.1%NOTE 24DEFERRED INCOME TAXCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Deferred tax arises from: Intangible assets-329 -236 -329 -236Plant and equipment-2,339 -60 -2,339 -60Current assets1,972 1,225 1,972 1,225Provisions1,374 1,385 1,374 1,385Other liabilities475 868 475 868Adjustmentof deferred tax to carryingvalue47 -182 47 -1821,200 3,000 1,200 3,000 Included in above, is deferred tax of DKK 256 thousand on equity transaction. The recognised tax asset including unused tax deductions arising from temporary differences are expected to be exploited within the next few years. NOTE 10SOFTWARE CONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Opening cost 64,337 57,860 64,240 57,763Additions for the year8,015 10,148 8,015 10,148Disposals for the year 0 -3,671 0 -3,671Closing cost 72,352 64,337 72,255 64,240Opening amortisation 43,566 41,289 43,469 41,192Amortisation for the year 6,949 5,948 6,949 5,948Reversed amortisation for the year of disposals 0 -3,671 0 -3,671Closing amortisation 50,515 43,566 50,418 43,469Carrying amount 21,837 20,771 21,837 20,771NOTE 11NOTE 2TRADEMARKSCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Opening cost 7,366 7,366 7,366 7,366Closing cost 7,366 7,366 7,366 7,366Opening amortisation 6,975 6,705 6,975 6,705Amortisation for the year 265 270 265 270Closing amortisation 7,240 6,975 7,240 6,975 Carrying amount 126 391 126 391NOTE 12GOODWILLCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Opening costs907,644 905,714 907,644 905,714Additions for the year 8,586 1,930 6,500 1,930Disposals for the year-9,212 0 -9,212 0Closing costs 907,018 907,644 904,932 907,644Opening amortisation 905,794 905,714 905,794 905,714Amortisation for the year687 80 389 80Reversed amortisation for the year of disposals-9,212 0 -9,212 0897,269 905,794 896,971 905,794Closing amortisationCarrying amount 9,749 1,850 7,961 1,850NOTE 13NOTE 2OTHER INTANGIBLE ASSETSCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Opening costs2,040 1,490 2,040 1,490Additions for the year0 550 0 550Closing cost 2,040 2,040 2,040 2,040Opening amortisation 1,084 894 1,084 894Amortisation for the year204 190 204 1901,288 1,084 1,288 1,084Closing amortisationCarrying amount 752 956 752 956NOTE 15NOTE 2LEASEHOLD IMPROVEMENTSCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Opening cost 65,323 84,790 63,504 84,316Net effect from merger and acquisition1,697 0 0 0Additions for the year 9,403 10,847 9,147 9,055Disposals for the year-42 -30,314 -42 -29,867Closing cost76,381 65,323 72,609 63,504Opening depreciation 50,597 74,974 50,471 74,500Currency translation19 103 13 89Net effect from merger and acquisition1,643 0 0 0Depreciation for the year5,353 5,782 4,960 5,678Reversed depreciation for year on disposals-28 -30,262 -28 -29,796Closing depreciation57,584 50,597 55,416 50,471Closing carrying amount 18,797 14,726 17,193 13,033 NOTE 14FIXTURES AND FITTINGS, TOOLS AND EQUIPMENTCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Opening cost 72,738 95,361 70,451 94,011Net effect from merger and acquisition850 0 0 0Additions for the year 14,109 12,111 11,481 10,719Disposals for the year-153 -34,734 -153 -34,279Closing cost87,544 72,738 81,779 70,451Opening depreciation 55,642 83,471 54,896 82,466Currency translation 19 113 13 115Net effect from merger and acquisition684 0 0 0Depreciation for the year6,601 6,814 6,038 6,614Reversed depreciation for year on disposals-137 -34,756 -137 -34,29962,809 55,642 60,810 54,896Closing depreciationClosing carrying amount 24,735 17,096 20,969 15,555 NOTE 16INVESTMENTS IN GROUP ENTERPRISESPARENT COMPANYInvestments in Group enterprisesDKK'000 2023 2022Cost at 1 January18,446 17,711Additions7,714 735Cost at 31 December26,160 18,446Value adjustments 1 January -30,037 -39,379Foreign currency adjustment1,223 1,223Pro t for the year-2,036 8,119Depreciation, goodwill-298 0Value adjustments 31 December-31,148 -30,037Provisions relating to capital shares in Group enterprises 19,360 20,297Carrying amount at 31 December 14,372 8,706Positive differences arising on initial measurement of subsidiaries at net asset value 3,114 0Remaining positive difference included in the above carrying amount at 31 December 2,816 0VOTING PROFIT FOR COMPANY RIGHTS AND EQUITYTHE YEARCAPITALSTAKETDKK TDKKPWT Norway AS, Oslo, Norge-19,360 -330 TNOK 400 100%PWT Germany GmbH, Maasbüll, Germany10,185 1,586 TEUR 25 100%Wagner China ApS, Aalborg, Denmark-9,451 0 TDKK 300 100%Cogs ApS, Aalborg, Denmark2,533 28 TDKK 50 100%PWT Sweden AB, Bjärred, Sweden-1,322 -3,408 TSEK 100 100% - Wagner Birsta AB, Sundsvall, Sweden-259 -894 TSEK 100 100% - Wagner Karlstad AB, Karlstad, Sweden-301 -1,616 TSEK 100 100% - Wagner Växjö AB, Växjö, Sweden-809 -861 TSEK 100 100%NOTE 17INVESTMENTS IN ASSOCIATESCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Cost at 1 January 0 0 0 0Transfer 0 0 0 0Cost at 31 December 0 0 0 0Value adjustments 1 January 0 0 0 0Transfer 0 0 0 0Value adjustments 31 December 0 0 0 0Carrying amount at 31 December 0 0 0 0VOTING PROFIT FOR COMPANY RIGHTS AND EQUITYTHE YEARCAPITALSTAKETDKK TDKK Wagner (Yantai), Ltd., Yantai, China 5,205 -940 CNY 58.199 49% NOTE 18NOTE 2 DEPOSITSCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Carrying amount at 1 January 18,470 13,476 18,245 13,250Net effect from merger and acquisition 731 0 0 0Additions 2,228 6,074 2,227 6,075Disposals -461 -1,080 -300 -1,080Carrying amount at 31 December 20,968 18,470 20,172 18,245 NOTE 21NOTE 2SHARE CAPITAL DKK'000 SHARE CAPITAL 31-12-2023Share capital upon establishment 2007/08 1,985Capital contributions 20208,055Convertible bonds converted to shares 2021354Convertible bonds converted to shares 2022 6,304Closing share capital16,698The share capital is fully paid in and broken down on shares of DKK 1 or multiples thereof. No shares carry special rights.The capital contribution of DKK 8 million was paid with a premium of 124.14, corresponding to a cash payment of DKK 10 million.In addition, the company has issued convertible bonds for DKK 10 million. Any owner of a convertible bonds may at any time demand their bonds be converted into new shares in the company pursuant to the terms set in the investment agreement. By the end of 2023, the Company has convertible bonds for DKK 2.3 million.Bonds will be converted to DKK 1 per shares, and there is no expire date of the bonds. NOTE 19NOTE 2INVENTORIES CONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Goods for resale 199,459 213,644 193,387 212,119Prepayments for goods 30,250 42,712 30,250 42,712Goods for resale, net 229,709 256,356 223,637 254,831 NOTE 20NOTE 2PREPAYMENTSPrepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions and interest. NOTE 22PROVISIONSCONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022The Group’s total provision obligation broken down on residual terms:Within 1 year 1,593 1,639 1,540 1,639Between 1 and 5 years 4,466 4,464 4,466 4,464After 5 years 1,430 1,430 1,430 1,4307,489 7,533 7,436 7,533Provision obligation at 1 January 7,533 7,372 7,533 7,372Additions during the year 97 44 44 44Reversals during the year -99 185 -99 185Effect of change in interest rates -42 -68 -42 -68Provision obligation at 31 December 7,489 7,533 7,436 7,533Provisions obligations contains obligation to re-establish leaseholds (DKK 5.896 thousand) and refund liability on sold clothes (DKK 1.593 thousand).Obligation to re-establish leaseholds relates to projected future costs attributable to relocation of leaseholds and is based on projected costs relying on the current interior and condition of the leaseholds. The obligation is discounted back to net present value using a discount rate of 3.5% (2022: 9.1%), equivalent to a risk-free interest rate. Refund liabilities on sold clothes relates to projected future returns. NOTE 26NOTE 2DEFERRED INCOMEDeferred income compromises mainly obligations in relation to gift cards. Gift cards at DKK 8.974 thousand (2022: DKK 9.135 thousand) are recognised as income as they are used or when they become obsolete after 3 years according to regulations. NOTE 25NOTE 2DERIVATIVE FINANCIAL INSTRUMENTSThe Group has entered into forward contracts of a total of DKK 91.794 thousand for USD purchases until July 2024 for the purpose of hedging future purchases in USD. The average exchange rate is 680. Consolidated 2023:ContractFair value Residual lifevalue Fair valueon the equityDKK’000Forward contract, USD 0-7 months 91,794 -1,162 -906Recognised on equity -1,162 -906Consolidated 2022:Forward contract, USD 0-6 months 90,176 -3,737 -2,915Recognised on equity -3,737 -2,915 NOTE 27NOTE 2CHARGES AND SECURITYAs security for debt payable to Spar Nord Bank A/S, a company charge at a nominal DKK 145 million has been provided in non-current assets and current assets.CONSOLIDATED PARENT COMPANYDKK'000 2023 2022 2023 2022Non-current assets with a carrying amount43,532 31,822 38,163 28,588Inventories with a carrying amount229,709 256,356 223,637 254,831Trade receivables with a carrying amount43,459 48,473 40,047 44,818As security for debt payable to Spar Nord Bank A/S, equity investments have been pledged at a nominal NOK 400.000 in PWT Norway AS and a nominal EUR 25.000 in PWT Germany GmbH.Equity investment with a carrying amount0 0 10,185 8,579At 31 December 2023, we have con rmed letters of credit in the amount of DKK 0.842 thousand regarding non-settled purchases of supplies abroad (31 December 2022: DKK 5.797 thousand) and bank guarantees concerning rent and customs at an amount of DKK 6.815 thousand (31 December 2022: DKK 5.711 thousand). NOTE 28NOTE 2CONTRACTUAL OBLIGATIONS AND CONTINGENCIESRent obligations and operating lease liabilitiesOther Consolidated Rentoperating DKK’000obligationleases TotalWithin 1 year66,010 930 66,940Between 1 and 5 years89,635 64 89,699Above 5 years0 0 0155,645 994 156,639Other Parent company Rentoperating DKK’000obligationleases TotalWithin 1 year68,829 1,027 69,856Between 1 and 5 years94,339 96 94,435Above 5 years0 0 0163,168 1,123 164,291The Group’s Danish enterprises are jointly and severally liable for the jointly taxed enterprises’ tax liabilities.In the ordinary course of its business, the Group is subject to various litigation such as product liability claims, employee disputes, rental disputes and other kinds of lawsuits, and faces different types of legal issues. Any claim brought against the Group (with or without merit), could be costly to defend. These matters are inherently dif cult to quantify. Management is of the opinion that the result of these disputes will not have a signi cant effect on the Group’s  nancial position. NOTE 29RELATED PARTIES AND DISCLOSURE OF CONSOLIDATED FINANCIAL STATEMENTSControl BasisOKH 63 Holding ApS, Teglværkssvinget 17, 9500 Hobro Ultimate parent companyOKH Holding ApS, Teglværkssvinget 17, 9500 Hobro Parent company’s ownerPWT Management ApS, Teglværkssvinget 17, 9500 Hobro Owner of PWT Group A/SSignifi cant infl uenceThe CEO of PWT Group A/S, Ole Koch Hansen is deemed to exert signi cant influence and also exercises control over OKH 63 Holding ApS.Transactions with related partiesAmounts owned by group enterprises are disclosed on the balance sheet of the parent company  nancial statements, and interest thereon is disclosed in note 7, Financial income and note 8, Financial expenses. In addition during the  nancial year, the Group has conducted the following transactions with the Executive Board and Board members of the company, which performs signi cantly influence.CONSOLIDATEDDKK'000 2023 2022Rent, etc. 5,481 4,930Rent obligations regarding related parties represent 24,414 29,590Consolidated  nancial statementsThe company is included in the Group Annual Report of the Parent Company of the largest and smallest group:Name Place of registered of ceOKH 63 Holding ApS Hobro, Denmark 30000000 0 30000000 0 -12020000 70252000 -12020000 70252000 72980000 115252000 72980000 115252000 GØTEBORGVEJ 15-17 9200 AALBORG SV Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-04-29 Claus Berner Nielsen Regnskabsklasse C, stor virksomhed true 2007-11-30 2024-04-29 31081610 Opinion Basis for Opinion 2024-04-29 MADS MELDGAARD State Authorised Public Accountant mne24826 33771231 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Skelagervej 1A 9000 Aalborg Denmark 2026