The supervisory board and executive board have today discussed and approved the annual report of Xerox A/S for the financial year 1 January - 31 December 2023.The annual report is 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 financial position at 31 December 2023 and of the results of the company's operations for the financial year 1 January - 31 December 2023.In our opinion, management's review includes a fair review of the matters dealt with in the management's review.Management recommends that the annual report should be approved by the company in general meeting.Steen Graugaard LarsenCEOPeter Christian DollerupdirectorMichael Heinrich AlmindChairmanPeter Christian DollerupSteen Graugaard LarsenAnders LumholdtMichael LundTo the shareholder of Xerox A/SOpinionWe have audited the financial statements of Xerox A/S for the financial year 1 January - 31 December 2023, which comprise a summary of significant accounting policies, income statement, balance sheet, statement of changes in equity and notes. The financial statements are prepared under the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the company's financial position at 31 December 2023 and of the results of the company's operations for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act.Basis for OpinionWe 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' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.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 as management determines is necessary to enable the preparation of the 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 about 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 applicable in Denmark will always detect a material misstatement when it exists. Misstatements can 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 taken 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 financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Statement on management's review Management is responsible for management's review. Our opinion on the financial 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 financial statements, our responsibility is to read management's review and, in doing so, consider whether 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 management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that 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 management's review.Copenhagen2024-07-01Søren Søndergaard JensenState Authorized Public Accountantmne32069Seen over a 5-year period, the development of the Company may be described by means of the following financial highlights: The financial ratios are calculated in accordance with the Danish Finance Society's recommendations and guidelines. For definitions, see the summary of significant accounting policies. 1290000001280000001760000004000000040000000560000001000000-40000002000000-10000000-5000000100000092000000950000001280000000100000060000000200000073000000620000008200000032.629.83131.331.8-1.1-0.80.8-3.11.1-1.3-1.21.1-3.61.57581.179.365.364.1-8.5-1.5-14.8-6.91Business review The company's activities include the sale of a complete solution and product portfolio within copy, print and document handling and delivery of services for the same. The product portfolio includes everything from standalone small office products, over digital multifunction machines, to actual production equipment within both black and white and colour, and includes both copying, printing, scanning and others document handling solutions and combinations thereof. In addition, the company provides facilities management service, including both smaller installations and large, complicated production installations. The company is also involved in BPO, where we help our customers within communication and marketing services.Financial review The company's income statement for the year ended 31 December 2023 shows a loss of TDKK 4.679, and the balance sheet at 31 December 2023 shows equity of TDKK 57.168.Significant events occurring after the end of the financial year No events have occurred after the balance sheet date which could significantly affect the company's financial position.Expectations for the future Throughout 2024, Xerox A/S will continue to develop its distribution strategy with additional products and services and further expansion of its sales channels. The largest companies and organizations, both in the private, public and printing industries, will continue to be covered primarily through the direct sales organization, while all other companies will be served by a highly developed dealer network. Xerox is expected to increase its share of activities through close cooperation with resellers and alliance partners. As in previous years, Xerox has a wide range of products and solutions for launch in 2024, which allows Xerox A/S to continue to offer a complete and highly competitive product range. Xerox A/S is among the leaders in both sales of black and white and color products and solutions thereto, and the company expects to strengthen this position in the market in 2024. The total market for sales of document management machines is not expected to increase significantly, but there is a clear upward trend in sales of document management software and workflow. Furthermore, there is a growing trend towards companies' use of outsourcing, and the company continues to believe in increased revenue from this particular market, where Xerox offers facility management services, including both smaller installations and large complex production installations. Management expects to maintain market share through 2024.Environmental aspects Xerox A/S offers all customers a comprehensive environmental return program where used packaging for toners and other operating equipment can be returned to Xerox A/S, which then handles environmentally sound recycling and degradation of these materials. Discarded machines are returned to Xerox's certified recycling center in the Netherlands, where all usable parts are recycled and the rest destroyed in an environmentally sound manner. Xerox A/S has been ISO 14001 certified since 1997 and has been re-certified according to the new 15014001:2015 with DNV – Business Assurance in early 2024 for the period 2024-2027 with subsequent annual follow-up audits. Xerox A/S is involved in the Elretur electronics industry's joint scheme for electronic scrap (WEEE).The annual report of Xerox A/S for 2023 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to mediumsized class C entities. The accounting policies applied are consistent with those of last year. The annual report for 2023 is presented in TDKK.Pursuant to sections §112, of the Danish Financial Statements Act, the company has not prepared consolidated financial statements.Income is recognised in the income statement as earned, including value adjustments of financial assets and liabilities. All expenses, including amortisation, depreciation and impairment losses, are also recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits 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 benefits will flow from the company and the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. On subsequent recognition, assets and liabilities are measured as described below for each individual accounting item. Certain financial assets and liabilities are measured at amortised cost using the effective interest method. Amortised cost is calculated as the historic cost less any installments and plus/less the accumulated amortisation of the difference between the cost and the nominal amount. On recognition and measurement, allowance is made for predictable losses and risks which occur before the annual report is presented and which confirm or invalidate matters existing at the balance sheet date.Income from the sale of goods for resale and finished goods is recognised in the income statement, provided that the transfer of risk, usually on delivery to the buyer, has taken place and that the income can be measured reliably and is expected to be received. Revenue is measured at the fair value of the agreed consideration, excluding VAT and other indirect taxes. Revenue is net of all types of discounts granted. Income from services, comprising service contracts and extended warranties relating to products and contracts sold is recognised on a straight-line basis as the services are provided. The method is used when income and costs on the service and the degree of completion can be measured reliably and it is likely that the payments will be received. Degree of completion is measured as costs incurred as a part of expected costs on the service.Costs of sales include the costs used in generating the year’s revenue.Other external costs include expenses related to distribution, sale, administration, premises, bad debts, payments under operating leases, etc.Staff costs include wages and salaries, including compensated absence and pensions, as well as other social security contributions, etc. made to the entity's employees.Amortisation, depreciation and impairment losses comprise the year's amortisation, depreciation and impairment of property, plant and equipment.Financial income and expenses are recognised in the income statement at the amounts that relate to the financial year. Net financials include interest income and expenses, realised and unrealised capital/exchange gains and losses on liabilities and foreign currency transactions, gain/loss from sale of tangible assets and surcharges and allowances under the Danish Tax Prepayment Scheme, etc.The company is jointly taxed with Danish group company. The tax effect of the joint taxation with the sister company is distributed to both profit-making and loss-making companies in relation to these taxable incomes (full distribution with refund regarding tax losses). The jointly taxed companies are included in the advance tax scheme. Tax for the year, which comprises the current tax charge for the year and changes in the deferred tax charge, is recognised in the income statement as regards the portion that relates to the profit/loss for the year and directly in equity as regards the portion that relates to entries directly in equity.Items of plant and machinery and fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. The depreciable amount is cost less the expected residual value at the end of the useful life. Cost comprises the purchase price and any costs directly attributable to the acquisition until the date when the asset is available for use. The useful life and scrap value are re-assessed annually. A change is accounted for as an accounting estimate, and the impact on amortisation/depreciation is recognised going forward. Straight-line depreciation is provided on the basis of the following estimated useful lives of the assets: Useful life Technical facilities 12 years Rental machines 3-5 years Other fixtures and fittings, tools and equipment 10-15 years Copy machines and computer equipment 2-5 years Assets costing less than DKK 32.000 are expensed in the year of acquisition. Gains and losses on the sale of items of property, plant and equipment are calculated as the difference between the selling price, less costs to sell, and the carrying amount at the time of sale. Gains or losses on the sale of items of property, plant and equipment are recognised in the income statement under financial income or financial costs, respectively.Pension costs for members of the Xerox Pensionskasse, which includes a performance-based commitment scheme, are calculated on the basis of the development in the calculated pension obligations by an actuary as well as on the basis of returns on the Pension Fund's assets. Xerox A/S ordinary annual payments to the Pension Fund are expensed and included in personnel costs. The year's actuarial gains and losses are recognized under a separate reserve in equity. The difference between the fair value of the Pension Fund's assets and the actuarially calculated liabilities is recognized in the balance sheet under financial fixed assets, under the item other receivables, or as provisions for pension etc.The carrying amount of items of property, plant and equipment interests is tested annually for impairment, other than what is reflected through normal amortization and depreciation.Stocks are measured at cost using the FIFO method. Where the net realisable value is lower than the cost, inventories are recognised at this lower value. The cost of goods for resale, raw materials and consumables comprises the purchase price plus delivery costs. Cost of manufactured finished goods includes cost of raw materials, consumables, wages and direct and indirect production costs. Indirect manufacturing costs include indirect materials and wages as well as maintenance of and depreciation on the machines, factory buildings and equipment as well as costs for factory administration and management. The net realisable value of stocks is calculated as the expected selling price less direct costs of completion and expenses incurred to effect the sale. The net realisable value is determined taking into account marketability, obsolescence and expected selling price movements.Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable is impaired, an impairment loss for that individual asset is recognised.Prepayments recognised under 'Current assets' comprises expenses incurred concerning subsequent financial years.Dividends Proposed dividends are disclosed as a separate item under equity. Dividends are recognised as a liability when declared by the annual general meeting of shareholders.Current tax liabilities and current tax receivables are recognised in the balance sheet as the estimated tax on the taxable income for the year, adjusted for tax on the taxable income for previous years and tax paid on account. Deferred tax is measured according to the liability method in respect of temporary differences between the carrying amount of assets and liabilities and their tax base, calculated on the basis of the planned use of the asset and settlement of the liability, respectively. Deferred tax is measured at net realisable value. Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax adjustments resulting from changes in tax rates are recognised in the income statement, with the exception of items taken directly to equity. Deferred tax assets, including the tax base of tax losses allowed for carry forward, are measured at the value to which the asset is expected to be realised, either as a set-off against tax on future income or as a set-off against deferred tax liabilities within the same legal tax entity. Any deferred net tax assets are measured at net realisable value.Liabilities are measured at amortised cost, which is usually equivalent to nominal value.On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and at the date of payment are recognised in the income statement as financial income or financial expenses. If foreign currency instruments are considered cash flow hedges, any unrealised value adjustments are taken directly to a fair value reserve under ‘Equity’. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses. Fixed assets acquired in foreign currencies are translated at the exchange rate at the transaction date.No cash flow statement has been prepared for the parent company, as the parent company's cash flows are included in the consolidated cash flow statement, see section 86(4) of the Danish Financial Statements Act.No cash flow statement has been prepared for the parent company, as the parent company's cash flows are included in the consolidated cash flow statement, see section 86(4) of the Danish Financial Statements Act.915390001312610004242800074955000192480001699600029863000393100003049100040202000477000603000-1105000-1495000346000878000597000784000-1356000-14010003323000-184000-4679000-121700099500012840001420002310000011370001515000344050003157400034405000315740003554200033089000691000080060006910000800600091890008641000478000021610007861000859200021490002149000200002170002399900021760000999600010834000409050004060000076447000736890001500000015000000-25137000-27346000673050007198400057168000596380007368000342000073680003420000195100018500009960000878100011911000106310001191100010631000764470007368900015000000-27346000719840000283200000-4679000015000000-2513700067305000The share capital has remained unchanged the last 5 years.220020002890300078210001058400066800071500030491000402020003335000328800042574300001830001670006010005970007840003323000-184000-4679000-12170004620000151400018600073000280000-1482000-398000032110001144000186000333600012830001860003600001170000-1480000-39800002216000-10020001860009950001420000378396000-7339000371057000-34682200010170000-33665200034405000By the end of 2023, 26 employees and 152 retired employees were entitled to pension from Xerox Pensionskasse. There have not been admitted new members into the pension fund since 2002 and the fund cannot admit new members according to its articles of association. The pension fund is a so called performance-based commitment scheme. The pension commitments are primarily based on the seniority of the members in the pension fund and salary on the retirement date. Under fixed asset investments the net amount of underlying pension assets of TDKK 371,057 and underlying pension liabilities of TDKK 336,652 are recognized. The asset is recognized based on a actuarial statement based on the discounted value at year end 2023 and the estimated future return and payouts from the pension fund. When calculating the assets, the annual report for 2023 for Xerox Pensionskasse has been used.Prepayments comprise prepaid expenses regarding rent, insurance premiums, subscriptions and interest as well as fair value adjustments of derivative financial instruments with a positive fair value.Provision for deferred tax at 1 January 2023 3.420 4.913 Deferred tax recognised in income statement 3.948 -1.493 Provision for deferred tax at 31 December 2023 7.368 3.420 Provisions for deferred tax on: Fixed assets -20 -812 Current assets 7.569 6.946 Provisions -41 -41 Tax loss carry-forward -140 -2.673 7.368 3.420 The company's total deferred tax is recognized in the balance sheet as of 31 December 2023. In previous years thare has been uncertainty about the future taxable results, which is why the full value has not bee recognized. From 2020 the taxable results have been used in joint taxation with group enterprises in Denmark. The tax asset mainly consists of the tax loss accumulated in 2019 arising as a result of an extra payment in 2019 to the Xerox Pensionskasse. -20000-81200075690006946000-41000-41000-140000-2673000The company has entered into operational leasing contracts for cars. The leasing contracts total obligations amount to a total of TDKK 6,697 (2022 TDKK 938). The company is jointly taxed with its sister company and is jointly and severally liable for the related taxes in the joint taxation.None.The company is included in the group report for the parent company Xerox Capital (Europe) Limited, England, ifultimate parent company is Xerox Holding Corporation, 201 Merritt 7, Norwalk, CT 06851-1056, USA. The group report for Xerox Capital (Europe) Limited, England, whose ultimate parent company is Xerox Holding Corporation, USA can be requested at the following address: Investor Relations 201 Merritt Seven Norwalk Connecticut 06851-1056, USAÅrsrapport33256876CroweRygårds Allé 1042900 Hellerup2023-01-012023-12-312022-01-012022-12-3155498016Xerox A/SLautruphøj12750BallerupDKDanmark1955-07-11BallerupBDO20222670Søren Søndergaard JensenState Authorized Public AccountantHavneholmen291561København VDKDanmark2024-07-01Michael Heinrich AlmindRegnskabsklasse C, mellemstor virksomhedRevisionspåtegningCaseWare-FSRfalsefalsefalsefalseGross margin ratio Gross Profit x 100Revenue EBIT margin Profit/loss before financials x 100Revenue Return on assets Profit/loss before financials x 100Average assets Solvency ratio Equity at year end x 100Total assets Return on equity Net profit for the year x 100Average equity554980162023-01-012023-12-31554980162023-01-012023-12-311554980162022-01-012022-12-31554980162021-01-012021-12-31554980162021-12-31554980162020-01-012020-12-31554980162020-12-31554980162019-01-012019-12-31554980162019-12-31554980162022-12-31554980162023-12-31554980162023-01-012023-12-311554980162023-01-012023-12-312554980162023-01-012023-12-313554980162023-01-012023-12-314554980162023-01-012023-12-315554980162023-01-012023-12-311554980162023-01-012023-12-312554980162023-01-01g:ContributedCapitalMember554980162023-01-012023-12-31g:ContributedCapitalMember554980162023-12-31g:ContributedCapitalMember554980162023-01-01g:RetainedEarningsMember554980162023-01-012023-12-31g:RetainedEarningsMember554980162023-12-31g:RetainedEarningsMember554980162023-01-01g:RestOfOtherReservesMember554980162023-01-012023-12-31g:RestOfOtherReservesMember554980162023-12-31g:RestOfOtherReservesMember554980162023-01-01g:PlantAndMachineryMember554980162023-01-012023-12-31g:PlantAndMachineryMember554980162023-12-31g:PlantAndMachineryMember554980162023-01-01g:FixturesFittingsToolsAndEquipmentMember554980162023-01-012023-12-31g:FixturesFittingsToolsAndEquipmentMember554980162023-12-31g:FixturesFittingsToolsAndEquipmentMember554980162023-01-01g:LeaseholdImprovementsMember554980162023-01-012023-12-31g:LeaseholdImprovementsMember554980162023-12-31g:LeaseholdImprovementsMember554980162023-01-01g:OtherReceivablesMember554980162023-01-012023-12-31g:OtherReceivablesMember554980162023-12-31g:OtherReceivablesMember554980162023-12-31g:PropertyPlantAndEquipmentMember554980162022-12-31g:PropertyPlantAndEquipmentMember554980162023-12-31g:ReceivablesMember554980162022-12-31g:ReceivablesMember554980162023-12-31g:TaxLossesMember554980162022-12-31g:TaxLossesMember554980162023-12-31g:LiabilitiesOtherThanProvisionsMember554980162022-12-31g:LiabilitiesOtherThanProvisionsMemberxbrli:pureiso4217:DKK