truefalseTobias ViethÅrsrapport25578198KPMGDampfærgevej 28DK-2100 København Ø2022-01-012022-12-312021-01-012021-12-312023-03-312023-03-3127355943ILLUM A/SØstergade 521100København KDKDenmark2003-09-24Copenhagen33144002www.illum.dkKPMG25578198Carsten Nielsenmne30212statsaut. revisorDampfærgevej282100CopenhagenDKDenmark45707077602023-03-31Regnskabsklasse C, mellemstor virksomhedfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of ILLUM A/S for the financial year 1 January – 31 December 2022.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Copenhagen,Jeanette AaenSean Christopher HillChairmanVittorio RadiceTo the shareholder of ILLUM A/SWe 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.Copenhagen,882000-13902000-36702000-14127000-25746000-101206000-114265000-140423000-113134000-113275000-88339000-99973000-120838000-94399000-98067000406917000450344000450594000492969000453534000132422000-217979000-118006000283200097231000157280007846000148400003175200022276000Retail turnover822931000619975000584527000782504000706537000Current ratio52.926.72838.643.332.5-48.4-26.20.617.5Ownership 99% of the shares of ILLUM A/S is owned by CRC Luxembourg S.á.r.l., which is owned by Harng Central Department Stores Limited in Thailand.882000-1390200073416000699530002867200030410000-101206000-11426500013000054000072950008165000-108371000-121890000-20032000-21917000-88339000-9997300034650001924000518000607000249511000266969000823100025550002582600002701310002617250002720550008142200079254000874600067330006808000551200020013000213240002909000405300038476000376220002529400061413000145192000178289000406917000450344000922896000484156000-790474000-702135000132422000-2179790005825000546500053333000694400001443000005090360001486500024179000967900090170004649300051186000268670000662858000274495000668323000406917000450344000484156000-70213500043874000000-88339000922896000-790474000-36000055000-28672000-30410000Change in working capital-2617300043491000-85480000-26127000-85480000-2612700026140001571000157280007846000-18342000-94170004387400000Intercompany, related parties371037000648610006770300064861000-361190002931700061413000320960002529400061413000Revenue from concession agreements Costs of sales The accounting policies used in the preparation of the financial statements are consistent with those of last year.Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities The cash flow statement shows the Company's cash flows from operating, investing and financing 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 calculated as the Company's share of profit/loss for the year adjusted for non-cash operating items, changes in working capital and corporation tax paid. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of intangible assets, property, plant and equipment and investments. Cash flows from financing activities comprise changes in size or composition of the Company's contributed capital and costs in this respect as well as raising of loans, installments on interest-bearing debt and distribution of dividends to owners.177167-88339000-99973000Control Related party transactions ILLUM A/S' related parties comprise the following: CRC Luxembourg S.á.r.l. 43, Avenue J. F. Kennedy 1855 Luxembourg CRC Luxembourg S.á.r.l. holds the majority of the contributed capital in the Company. ILLUM A/S is part of the consolidated financial statements of CRC Luxembourg S.á.r.l., Luxembourg,, which is the smallest and largest group, in which the Company is included as a subsidiary. The consolidated financial statements of CRC Luxembourg S.á.r.l. can be obtained by contacting the company at the address above. In accordance with section 98 c(7) of the Danish Financial Statements Act, the Company has not disclosed any related party transactions as they were conducted on an arm's length basis.Adjustments Change in working capitalIn our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2022 and of the results of the Company's operations and cash flows for the financial year 1 January – 31 December 2022. 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 have audited the financial statements of ILLUM A/S for the financial year 1 January – 31 December 2022 comprising income statement, balance sheet, statement of changes in equity, cash flow statement 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 2022 and of the results of the Company's operations and cash flows for the financial year 1 January – 31 December 2022 in accordance with the Danish Financial Statements Act.Management 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.Our 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 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 also identify 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.Management 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 Statements Act. We did not identify any material misstatement of the Management's review. The financial ratios have been calculated as follows: Current ratio Current assets x 100 Current liabilities Solvency ratio Equity ex. non-controlling interests at year-end x 100 Total equity and liabilities at year-endILLUM A/S operates the department store ILLUM from the address Østergade 52, Copenhagen.The Company's income statement for 2022 shows a loss of DKK 88,339 thousand as against DKK 99,973 thousand in 2021. Equity in the Company's balance sheet at 31 December 2022 stood at DKK 132,422 thousand as against DKK -217,979 thousand at 31 December 2021.ILLUM expects to continue the development of the department store, in accordance with the defined strategy and continue our focus on service and experiences for customers.No events have occurred after the balance sheet date of material importance to the annual report for 2022. The annual report of ILLUM A/S for 2022 has been prepared in accordance with the provisions applying to reporting class C medium-sized entities under the Danish Financial Statements Act.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.Government grants are recognised when it is fairly certain that the grant conditions will be complied with, and the grant will be received. Grants compensating for costs incurred are recognised directly as operating income in the income statement as costs eligible for grants are incurred. If the conditions for receiving the grant are not complied until after related costs have been recognised, the grant is to be recognised in the income statement when the conditions have been complied with and it is farily certain that the grant will be awarded. Grants to acquire assets are recognised in the balance sheet as deferred income/prepayments and transferred to other operating income in the income statement line with depreciation/amortisation of the assets covered by the grant.Pursuant to section 32 of the Danish Financial Statements Act, the Company has decided only to disclose gross profit.ILLUM A/S' revenue consists of revenue from sales in ILLUM A/S' own stores, sale of services to concessions and commission from concession sales. Income from the sale of goods for resale, comprising direct sale of goods from ILLUM A/S' own stores, is recognised in revenue when transfer of the most significant rewards and risks to the buyer has taken place.When selling goods and services delivered by concessionaries, the Company does not assume significant rewards and risks related to the sale, and revenue is thus presented on a net basis and measured at the fair value of the distribution fee agreed upon. Income is recognised in revenue when rewards and risks are transferred from the concessionary to a third party whereby the Company qualifies for the right to commission. Revenue from the sale of services to concessions is recognised as the services are provided.Costs of goods for resale comprise costs incurred in generating the revenue for the year from ILLUM A/S' own stores.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 external costs comprise costs of distribution, sales and advertising, administrative expenses, costs of premises, bad debts, operating leases, etc.Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs. Refunds from public authorities are deducted from staff costs.Financial income and expenses comprise interest income and expense, gains and losses on securities, payables and transactions denominated in foreign currencies as well as surcharges and refunds under the on-account tax scheme, etc.Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the loss for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity.Licences (software) are measured at cost less accumulated amortisation and impairment losses. Licences (software) are amortised on a straight-line basis over the period of contract, however, not exceeding 5 years.Fixtures and fittings, tools and equipment as well as leasehold improvements 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. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. 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: The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Fixed assets under construction are recognised and measured at cost at the balance sheet date. Upon entry into service, the cost is transferred to the relevant group of property, plant and equipment. Depreciation is recognised in the income statement under depreciation, amortisation and impairment losses. 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.Fixtures and fittings, tools and equipment 1-15 years Leasehold improvements 1-30 yearsThe carrying amount of intangible assets and property, plant and equipment 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.The Company has no leases that transfer substantially all risks and rewards incident to ownership to the Company (finance leases). All the Company's leases are 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 contingent liabilities, etc.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. 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 are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis. Write-downs are calculated as the difference between the carrying amount of receivables and the present value of forecast cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate.Prepayments recognised under current assets comprise prepayments of costs incurred relating to subsequent financial years.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 based on the planned use of the asset or settlement of the liability. However, deferred tax is not recognised on temporary differences relating to goodwill non-deductible for tax purposes and on office premises and other items where the 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.Financial liabilities are recognised at cost at the date of borrowing, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method. 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 amortised cost.Deferred income recognised under liabilities comprises advance invoicing regarding income in subsequent years.Cash at bank and in hand comprise cash and bank deposits.Wages and salaries 67,134 64,066 Pensions 5,194 4,884 Other social security costs 1,088 1,003 73,416 69,953 Average number of full-time employees 177 167According to section 98 B(3) of the Danish Financial Statements Act, remuneration to the Executive Board has not been disclosed. No remuneration has been paid to the Board of Directors.Intangible assets 1,073 2,741 Property, plant and equipment 27,599 27,669 28,672 30,410Interest expense to group entities 6,907 7,481 Other financial costs 388 684 7,295 8,165 Current tax for the year -20,032 -21,331 Adjustment of tax concerning previous years 0 -586 -20,032 -21,917 DKK'000 Software Cost at 1 January 2022 14,429 Additions for the year 2,614 Cost at 31 December 2022 17,043 Amortisation and impairment losses at 1 January 2022 -12,505 Amortisation for the year -1,073 Amortisation and impairment losses at 31 December 2022 -13,578 Carrying amount at 31 December 2022 3,465DKK'000 Fixtures and fittings, tools and equipment Leasehold improve-ments Property, plant and equipment in progress Total Cost at 1 January 2022 3,771 448,694 2,555 455,020 Additions for the year 414 9,638 5,676 15,728 Cost at 31 December 2022 4,185 458,332 8,231 470,748 Depreciation and impairment losses at 1 January 2022 -3,164 -181,725 0 -184,889 Depreciation for the year -503 -27,096 0 -27,599 Depreciation and impairment losses at 31 December 2022 -3,667 -208,821 0 -212,488 Carrying amount at 31 December 2022 518 249,511 8,231 258,260 DKK'000 31/12 2022 31/12 2021 Prepayments 61 3,049 Concessions 2,848 1,004 2,909 4,053 The contributed capital consists of 922,896,211 shares of a nominal value of DKK 1 each. All shares rank equally.Deposits from concessionaries are repaid upon termination of the contract. Deferred income of DKK 9.679 thousand (2021: DKK 9,017 thousand) comprise payments received (gift cards/ Illum Key Point) from customers that cannot be recognised until the subsequent financial year.The Group's Danish entities are jointly and severally liable for tax on the Group's jointly taxed income and for certain withholding taxes such as dividend tax and royalty tax as well as for the joint registration for VAT. Any subsequent corrections of the taxable income subject to joint taxation or withholding taxes on dividends, etc., may entail an increase in the entities' liability. The Group as a whole is not liable to any other parties. Total future lease payments: The above is based on the nominal remaining payments. The calculation of the lease obligation has been made from the balance sheet date until the date when the lease can be contractually terminated. In the event of vacation before expiry of the lease, costs for reestablishment, etc., may occur. No provision has been made in this respect.DKK'000 31/12 2022 31/12 2021 Within 1 year 151,415 149,889 Between 1 and 5 years 774,875 768,100 After 5 years 2,711,771 2,606,335 Total per obligation type Minimum rental obligation 3,637,898 3,489,089 Other lease obligations, primarily cars 163 278 Provisions 360 55 360 55 Change in inventories -2,168 9,342 Change in receivables 754 -768 Change in trade and other payables -24,759 34,917 -26,173 43,491273559432022-01-012022-12-31273559432022-01-012022-12-311273559432022-01-012022-12-311273559432022-01-012022-12-311273559432022-01-012022-12-312273559432022-01-012022-12-31g:PreviousYearMember273559432022-01-012022-12-31g:TwoYearsAgoMember273559432022-01-012022-12-31g:ThreeYearsAgoMember273559432022-01-012022-12-31g:FourYearsAgoMember273559432022-12-31273559432022-12-31g:PreviousYearMember273559432022-12-31g:TwoYearsAgoMember273559432022-12-31g:ThreeYearsAgoMember273559432022-12-31g:FourYearsAgoMember273559432022-01-012022-12-3113273559432022-01-012022-12-3113g:PreviousYearMember273559432022-01-012022-12-3113g:TwoYearsAgoMember273559432022-01-012022-12-3113g:ThreeYearsAgoMember273559432022-01-012022-12-3113g:FourYearsAgoMember273559432022-01-012022-12-31101273559432022-01-012022-12-31101g:PreviousYearMember273559432022-01-012022-12-31101g:TwoYearsAgoMember273559432022-01-012022-12-31101g:ThreeYearsAgoMember273559432022-01-012022-12-31101g:FourYearsAgoMember273559432021-01-012021-12-31273559432021-12-31273559432022-01-012022-12-31c:RetainedEarningsMember273559432021-01-012021-12-31c:RetainedEarningsMember273559432022-01-01273559432021-01-01273559432022-01-012022-12-31101273559432021-01-012021-12-31101273559432022-01-012022-12-31c:ContributedCapitalMember273559432022-01-01c:ContributedCapitalMember273559432022-12-31c:ContributedCapitalMember273559432022-01-012022-12-31c:RetainedEarningsMember273559432022-01-01c:RetainedEarningsMember273559432022-12-31c:RetainedEarningsMemberxbrli:pureiso4217:DKKiso4217:DKK