43268309 2023-01-01 2023-12-31 43268309 2023-01-01 2023-12-31 1 43268309 2023-01-01 2023-12-31 1 43268309 2023-01-01 2023-12-31 2 43268309 2023-01-01 2023-12-31 3 43268309 2023-01-01 2023-12-31 1 43268309 2022-05-13 2022-12-31 43268309 2023-12-31 43268309 2022-12-31 iso4217:DKK xbrli:pure 2024-04-26 Peter Gottfredsen_ Annalect DenmarkA/S Midtermolen 3 København Ø 43268309 Statement by the Board of Directors and the Executive Board The Board of Directors and the Executive Board have today discussed and approved the annual report of Annalect Denmark A/S for the financial year 1 January – 31 December 2023. The annual report has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2023 and of the results of the Company's operations for the financial year 1 January – 31 December 2023. Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters, of the results for the year and of the Company's financial position. We recommend that the annual report be approved at the annual general meeting. Copenhagen Søren Fromberg Managing Director Peter Gottfredsen Chairman Michael Holmer Frank Boe Aagaard Andersen To the shareholders of Annalect Denmark A/S We have audited the financial statements of Annalect Denmark A/S for the financial year 1 January – 31 December 2023 comprising income statement, balance sheet and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2023 and of the results of the Company's operations for the financial year 1 January – 31 December 2023 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management 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 financial statement users made on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We 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 Statement Act. We did not identify any material misstatement of the Management's review. Copenhagen 2024-04-26 KPMG Statsautoriseret Revisionspartnerselskab 25578198 David Olafsson State Authorised Public Accountant mne19737 Denmark 2022-05-13 Copenhagen KPMG Statsautoriseret Revisionspartnerselskab Dampfærgevej 28 2100 København Ø Operating review Principal activities Annalect Denmark A/S provides a wide range of specialist services, which are offered to advertisers in the areas of: Advanced marketing decision support systems. The Company offers these services globally. In 2023, global partnerships accounted for 39% of the Company’s activity. Business development and finances The financial year 2023 was the first year with activities in Annalect Denmark A/S. We generated DKK 21 million in revenue and the profit for the year was DKK 2.7 million. Both revenue and profit exceeded our expectations. The growth reflects a significant inflow of new client relationships and a successful expansion of our service range within advanced marketing decision support systems. The total consolidated revenue in Omnicom Media Group A/S relating to Annalect’s services grew by DKK 5.3 million in 2023 to DKK 38.2 million. Subsequent events No events materially affecting the assessment of the annual report have occurred after the balance sheet date. Outlook We expect growth and improved profitability as a consequence of new client relationships and increased sales of a wide range of services. 20959000 0 8664000 0 328000 19000 29295000 -19000 25734000 0 3561000 -19000 34000 0 28000 1000 3567000 -20000 785000 -4000 2782000 -16000 0 0 2782000 -16000 2782000 -16000 8891000 0 25000 0 14252000 499000 3000 0 66000 0 0 4000 30000 0 23267000 503000 23267000 503000 23267000 503000 400000 400000 2766000 0 3166000 384000 9000 0 13828000 100000 851000 0 4042000 19000 1371000 0 20101000 119000 20101000 119000 23267000 503000 0 -16000 true The annual report of Annalect Denmark is included in the consolidated financial statements of Omnicom Media Group A/S. Basis of recognition and measurement 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. 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 statement Revenue Revenue consists of media revenue and revenue regarding consultancy services. Media invoicing to customers is recognised in the income statement provided that delivery and transfer of risk to the buyer has taken place before year end and that the income can be reliably measured and is expected to be received. Media revenue is measured ex. VAT, tax charged and rebates in connection with the sale. We act as an agent and revenue is recognised as invoicing to customers less media expenses. In our business we incur third‐party costs on behalf of clients. Third‐party direct costs include, among others: purchased media, studio production services, including artists and other freelance labour, market research and third‐party data and other related expenditures. The inclusion of billings related to third‐party direct costs in revenue depends on whether we act as a principal or as an agent in the client arrangement. In our businesses, including advertising, which also includes studio production efforts and media planning and buying services, we act as an agent and arrange, at the client’s direction, for third parties to perform certain services. In these cases, we do not control the goods or services prior to the transfer to the client. As a result, revenue is recorded net of these costs, equal to the amount retained for our fee or commission. Contract work in progress is recognised as revenue as the production is carried out. Accordingly, revenue corresponds to the selling price of work performed during the year (the percentage of completion method). Revenue is recognised when total income and expenses and the stage of completion of the contract at the balance sheet date can be reliably calculated and when it is probable that the economic benefits, including payment, will flow to the Group. Other external costs Other external costs comprise expenses for sale, advertising, administration, premises, etc. Staff costs Staff costs comprise salaries and wages, including holiday allowance, pension and other social security costs, etc., to the Company’s employees excluding refunds from public authorities. Financial income and expenses Financial income and expenses are recognised in the income statement at the amounts regarding the financial year. Financial income and expenses comprise interest income and expense, realised and unrealised 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 on profit for the year Tax for the year comprises current tax and changes in deferred tax for the year. The tax expense relating to the profit/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. The Company is jointly taxed with the other Omnicom companies in Denmark. The tax effect of the joint taxation is allocated in proportion to the taxable income (full absorption). Balance sheet Receivables Receivables are measured at amortised cost. Write-down is made for bad debt losses. Contract work in progress Contract work in progress is measured at the selling price of the work performed calculated on the basis of the stage of completion. The stage of completion is measured by the proportion that the contract expenses incurred to date bear to the estimated total contract expenses. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is recognised as an expense in the income statement. When the selling price of a construction contract cannot be measured reliably, the selling price is measured at the lower of costs incurred and net realisable value. Contract work in progress is recognised in the balance sheet under receivables or payables, depending on the net amount of the selling price less progress billings and prepayments. Selling costs and costs incurred in securing contracts are recognised in the income statement when incurred Prepayments, assets Prepayments comprise costs incurred concerning subsequent financial years. Equity Dividend Proposed dividends are recognised as a liability at the date on which they are adopted at the annual general meeting (declaration date). The expected dividend payment for the year (declaration date) is disclosed as a separate item under equity. Corporation tax and deferred tax Current tax payable and receivable is recognised on 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 base of assets and liabilities. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on the planned use of the asset or settlement of the liability, respectively. Liabilities Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan together interest expenses. Trade payables and amounts owed to group entities are recognised at cost. Other liabilities are measured at net realisable value. Deferred income recognised as liabilities include incoming payments regarding income in following years. Foreign currency translation On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and at the date of payment are recognised in the income statement as financial income or financial expenses. 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 at 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. Revenue Invoicing to customers20,4120Media expenses, etc.547020,9590 Staff costs Wages and salaries24,0320Pensions1,4530Other social security costs249025,7340 45 0 Financial income Interest income received from associates340340 Financial expenses Other financial expenses281281 Tax on profit from ordinary activities Current tax for the year/joint taxation contribution851-4Adjustment of deferred tax-660 785-4 Contract work in progress Contract work in progress250Work in progress, payments received on account 00250Recognised in the balance sheet as follows: Contract work in progress (assets)250Contract work in progress (liabilities)00250Deferred tax asset Deferred tax 1January 00Deferred tax adjustment660Deferred tax at 31December 660 Equity Share Retained Proposed DKK'000capitalearningsdividendTotalEquity at1January2023400-160 384Distributed dividend000 0Poposed dividend000 00 Net profitfor the year02,782282Equity at 31December 20234002,76603,166The share capital consists of 400,000 shares of a nominal value of DKK 1. No shares carry any special rights. Contingent liabilities and security Joint taxation The Company is jointly taxed with the group of Danish subsidiaries. The administrative company, together with the group of Danish subsidiaries included in the joint taxation, has joint and several unlimited liability for Danish corporation taxes and withholding taxes on dividends and interest. The jointly taxed companies' net liabilities to SKAT appears in the administrative company's annual report, Omnicom Media Group A/S, CVR no. 15 10 68 75. Any subsequent corrections of the taxable income subject to joint taxation or withholding taxes on dividends, interest and royalties may entail that the Company's liability will increase. Related parties and ownership Annalect Denmark A/S' related parties include Omnicom Media Group A/S and group enterprises as well as the companies' Boards of Directors, Executive Boards, executive employees and family members. Related parties also include companies in which the above persons have substantial interests. Controlling interest Omnicom Media Group A/S, Midtermolen 3, 2100 Copenhagen Ø, Denmark, which is the major shareholder. Ownership The following shareholders are recorded in the Company's register of shareholders as holding at least 5% of the votes or at least 5% of the share capital: Omnicom Media Group A/S Midtermolen 3 2100 København Ø Denmark Consolidated annual report Consolidated annual report can be required at owner (see above). The supreme parent is Omnicom Group Inc., and their consolidated annual report can be required at: Omnicom Group Inc. 437 Madison Avenue New York, New York 10022 Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-05-13 2022-12-31 Reporting class B 2100 2023-06-28 25578198 Dampfærgevej 28 2100 København Ø Opinion Basis for Opinion Denmark