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-6000000 0 0 0 0 0 0 0 -5000000 0 0 -5000000 57000000 52000000 0 6000000 69000000 0 0 75000000 57000000 132000000 0 6000000 1885000000 390000000 292000000 2573000000 453000000 3026000000 185000000 -185000000 10920000000 390000000 -1154000000 10156000000 659000000 10815000000 185000000 -191000000 8124000000 0 -1602000000 6516000000 29000000 6545000000 0 0 615000000 0 0 615000000 22000000 637000000 0 0 54000000 0 156000000 210000000 -15000000 195000000 0 0 669000000 0 156000000 825000000 7000000 832000000 0 0 62000000 0 0 62000000 0 62000000 0 0 180000000 0 0 180000000 170000000 350000000 0 0 242000000 0 0 242000000 170000000 412000000 0 0 911000000 0 156000000 1067000000 177000000 1244000000 185000000 -191000000 9035000000 0 -1446000000 7583000000 206000000 7789000000 17000000 52000000 Significant changes and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>vents In 2022, the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s performance and financial position was affected by the significant changes and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> events highlighted belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. A detailed re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s performance is pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in the Management's Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w on pp. 15-19.Macroeconomic envir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>onmentIn 2022, we saw significant macroeconomic uncertainties (among others due to the Russia-Ukraine war) leading to incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased interest and inflation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates. These develop<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ments have impacted certain accounting estimates and judgements, including assumptions made by management, most significantly in relation to:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Impairment tests, note 3.2</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Pensions and similar obligations, </span>note 7.1• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Onerous contr<span class="_ _0"/>acts, note 2.5</span>Russia-Ukraine warIn March 2022, we divested our busi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ness in Russia as part of the strategic divestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme. In addition, ISS has no material activities in Ukraine. Consequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Russia-Ukraine war did<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> not have a material impact on the results of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s operations and financial position in 2022. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the impact of the war led to increased oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating costs due to generally incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased inflation rates which wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in all material respects<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> mitigated through price incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases in our customer contract portfolio.Divestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>amme<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>In 2022, the strategic divestment pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o-gramme was successfully completed as we divested T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan, Russia and Portugal as well as two business units in Hong Kong and the UK. As a result, a net gain of DKK 201 million was recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss in 2022.See 3.4, Divestments, assets held for sale and discontinued operations for further details. Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkeyEffective 1 January 2022, the Group implemented IAS 29, Financial Reporting in Hyperinflationary Economies as the cumulative three-year inflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeded 100%.As a result, the financial statements of ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y for 2022 have been restated based on changes in the general price inde<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x and by applying end-of period e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates. Comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es were not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated.The implementation did not have a materi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>al impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s key financial KPIs. Impact and applied accounting policies are disclosed in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Estimates and judgements The prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation of the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s consolidated<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> financial statements requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed management to make judgements, estimates and assumptions that affected the reported amounts of assets, liabilities, income and expenses, the accom<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>panying disclosures, including contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a material adjustment to the carrying amount of assets or liabilities in future periods. Estimates and assumptions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed on an ongoing basis and have been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed taking macroeconomic de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments into consid<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>eration, but still ensuring that one-off effects which are not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to exist in the long<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> term do not affect estimation and determina<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tion of these key factors, including discount rates and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for the future.The table to the right pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vides an overvie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s significant accounting estimates and judgements and the significance of impact on the consolidated financial statements. Note<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0">Significant estimates and judgements<span class="_ _b5"> </span></span>Estimate/Judgement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>Impact1.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls20 ws27">• <span class="_ _d6"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 ls20">Revenue r<span class="_ _0"/>ecognition – impact from contr<span class="_ _0"/>act modifications and variable consideration<span class="_ _75"> </span><span class="ls0">Estimate/Judgement</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Gross or net pr<span class="_ _0"/>esentation <span class="_ _158"> </span>Judgement</span>2.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Other receivables<span class="_ _74"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Capitalisation of transition and mobilisation costs<span class="_ _8"> </span>Judgement</span></span>2.5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>Provisions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc2">• <span class="_ _b7"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">Onerous contr<span class="_ _0"/>acts – future pr<span class="_ _0"/>ofitability<span class="_ _15a"> </span>Estimate/Judgement</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Assumptions for claims, disputes and legal proceedings<span class="_ _ee"> </span>Judgements</span>2.6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Right-of-use assets<span class="_ _7b"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Lease term, including extension options mainly related to buildings<span class="_ _15b"> </span>Judgements</span></span>3.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Intangible assets<span class="_ _71"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Cloud-based arragements – assessment of control<span class="_ _15c"> </span>Judgements</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Capitalisation of configuration and customisation costs for softwar<span class="_ _0"/>e<span class="_ _c7"> </span>Judgements</span>3.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Impairment tests<span class="_ _45"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Key assumptions in impairment test of goodwill and other intangible assets<span class="_ _14c"> </span>Estimate</span></span>5.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Deferred tax<span class="_ _111"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Recognition of deferred tax assets – futur<span class="_ _0"/>e taxable profit available<span class="_ _120"> </span>Estimate</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Uncertain tax positions – estimate of the amount required to settle the obligation<span class="_ _86"> </span><span class="ls0">Estimate/Judgement</span></span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Pensions and </span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Assumptions for actuarial gains and losses, e.g. inflation and discount rates, <span class="ls0"> </span></span>Estimatesimilar obligationsfuture salary and pension incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases• Low •• Medium •••High1 Oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ofit ISS is a leading, global pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider of integrated facility service (IFS) to key account customers and the absolute leader in cleaning. With operations in 60+ countries of which 30+ ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e core self-delivery countries, we have a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong global footprint.In recent years, we have successfully trimmed our business. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>oday, we have a global platform, and the gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth agenda will be focused on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>viding IFS to key accounts in thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee prioritised segments; office-based, production-based and healthcare. Our cor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e service offering to customers consists of cleaning, food, technical and workplace services. In 2022, <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">re<span class="_ _0"/>venue<span class="ff4 fc3"> was DKK 76,538 million. Reve-</span></span>nue from ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts increased to 71% (2021: 69%) of Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated higher organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth than non-ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts. IFS share of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue has consistently increased o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the last decade and comprised 51% in 2022. The majority of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue comprises portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue which is contractually committed at<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> the inception of the contract and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring. The remaining r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue is demanded on a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> non-recurring basis and agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed as separate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> transactions.Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue gre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w organically b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y 10%, pos<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>itively impacted by price incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases to offset the rising cost inflation. Revenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om projects and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> above-base work was in line with 2021 despite a decline in deep-cleaning and disinfection services.Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> was DKK </span>2,876 million for an operating margin of 3.8% ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluding impact from IAS 29 (2021: 2.5%).Our business model is based on self-delivery of our core services b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our placemakers – our most important resour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ce. As a result, we incur a sig-nificant amount of employee costs to gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. In 2022, employee costs comprised 66% of total operating costs, and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emained at the level of 2021.Our str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategic focus<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Ke</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">y Account </span>– IFS for key accounts<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">shar</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">e</span>29%71%1)71 76.5KKbnDKKbn51%Key accounts IFS Other1) Group re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venueOur r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenu<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>– high level of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue18%1)76.5DKKbn82%Portfolio Projects <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>and above-base1) Group re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venueOur cost base– self-delivery by our placemakers1)73.7DKKbn66%m Employee <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>costs1) T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otal operating costs1.1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Segments 1.1.1 Operating segmentsISS is a leading, global pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider of workplace and facility service solutions operating in 30+ countries. Operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e generally managed based on a geographical structur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in which countries are gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ouped into regions. The regions have been identified based on a ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y principle of grouping countries that shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e market conditions and cultures. Countries wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e we do not have a full country-based support structure, which are managed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our Global Key Account Organisation, are combined in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate segment “Other countries”.An overvie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of the grouping of countries into regions is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in 8.4, Group companies. Central &amp;OtherT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Unal-Northern<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>Southern Asia &amp; Ameri-coun-seg-located/<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal (DKKm)EuropeEuropePacificcastriesmentseliminationGroup1)2022 2)Revenue, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcl. IAS 29 28,694 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 24,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span> 14,012 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 8,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 606 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span> 76,435 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (51)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span> 76,384 Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11b"> </span> 28,694 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 24,692 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,012 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 8,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 606 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 76,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (51)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _cb"> </span> 76,538 Depreciation and amortisation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> (557)<span class="_ _d7"> </span> (575)<span class="_ _15d"> </span> </span>(147)(97)(4)(1,380)(137)(1,517)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ot befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other2) items, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>excl. IAS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>29 1,519 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>1,108<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 882 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>3,981<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> (1,105)2,876Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15f"> </span> 1,519 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 1,079 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 882 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,952 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,105)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 2,847 Operating margin<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>5.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>4.4%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>6.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>4.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff42 fs24 ls0 ws0"> - <span class="_ _163"> </span></span>3.7%Operating margin, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. IAS 29 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ffad fs47 ls56 ws67">5.3%<span class="_ _55"> </span>4.5%<span class="_ _162"> </span>6.3%<span class="_ _162"> </span>5.2%<span class="_ _162"> </span>4.5%<span class="_ _162"> </span>5.2%<span class="_ _1e"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _163"> </span><span class="ffad fs47 ls56 ws67">3.8%</span></span>Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 45 <span class="_ _34"> </span> </span>(13) 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> (124) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 64 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> (7) 57 Amortisation/impairment of brands and customer contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(16)(27)(4)(22) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (69) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> (69)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> 1,548 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 1,039 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 1,034 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 299 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,947 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,112)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 2,835 2021Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11b"> </span> 27,675 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 23,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 12,381 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 7,141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 71,408 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (45) 71,363 Depreciation and amortisation(659)(581)(212)(109)(3)(1,564)(196)(1,760)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>1,290<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 584 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 735 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 393 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 16 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,018 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,242) 1,776 Operating margin4.7%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>2.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>2.6%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>4.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff42 fs24 ls0 ws0"> - <span class="_ _163"> </span></span>2.5%Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> 431 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> (2) 78 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (66) 439 Goodwill impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> (450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> (450)Amortisation/impairment of brands and customer contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(21)(11)(6)(26) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (64) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> (64)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span>1,267<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 554 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 727 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 16 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 3,009 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,308) 1,701 1) Effective 1 January 2022, the Group reor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ganised its European business into the regions Northern Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope and Central &amp; Southern Europe consistent with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s internal management and reporting structure. As a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult, the Netherlands, Belgium &amp; Luxembourg, Poland and Lithuania were moved fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om Central &amp; Southern Europe (pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eviously Continental Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope) to Northern Europe. Asia &amp; Pacific and Americas remained unchanged. Comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es for 2021 were restated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.2) Effective 1 January 2022, ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey was restated for hyperinflation in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with IAS 29, cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Regional </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>Revenue76.5DKKbn38% Northern32% Central &amp; Southern18% Asia &amp; Pacific11% Americas1% Other<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">pr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ofit</span>1)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit 3.9DKKbn39% Northern26% Central &amp; Southern26% Asia &amp; Pacific0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws67">8% </span>Americas1% Other1) Based on total segments1.1.2 Geographical distributionRevenue(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span> 10,396 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 10,634 US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> 6,387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 5,298 Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span> 5,729 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 5,212 Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span>5,556<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 5,429 Australia &amp; Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w Zealand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 4,868 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 4,349 Spain <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7a"> </span>4,122<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,420 Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 4,016 <span class="_ _d0"> </span> 3,181 </span>Denmark (country of domicile)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 3,169 <span class="_ _5e"> </span> 3,661 </span>  1)Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>32,295<span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 29,179 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 1) Including unallocated items and eliminations.Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue per country is disclosed on p. 119. 2)Non-current assets (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> 3,052 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 3,275 US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> 2,492 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 2,362 Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 2,134 <span class="_ _d0"> </span> 1,723 </span>Denmark (country of domicile) 1,737 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,804 Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 1,434 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,501 Australia &amp; Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w Zealand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 1,396 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 1,411 Spain <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 1,196 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,178 Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> 997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 989   1)Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span> 13,314 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 12,329 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 27,752 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 26,572 1) 2) Excluding deferred tax assets.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0"> Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>Revenue76.5DKKbn14%UK &amp; Ireland8%US &amp; Canada7%Switzerland7%Germany6%Australia &amp; NZ5%Spain5%Norway4%Denmark 44%Other countries<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Non-curr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ent assets</span>Non-current assets27.8DKKbn11%UK &amp; Ireland9%US &amp; Canada8%Switzerland6%Denmark5%Norway5%Australia &amp; NZ4%Spain4%Germany48%Other countriesAccounting policyThe segmentation is consistent with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s strategic management and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting structure applied by the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cludes discontinued operations. Segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e managed primarily based on business perfor-mance measured b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit.Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and costs comprise items that are dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the individual seg-ments. Unallocated items mainly consist of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>v-enue and cost relating to the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s corporate functions. Decisions on financing (financial income and expenses) as well as tax planning (income tax) are managed at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e therefore not managed and allocated to segments. Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is presented including internal re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue which due to the nature of the business is insignificant and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not disclosed. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rans-actions between operating segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made on market terms.The geographical distribution of segment r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and non-current assets is based on the geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aph-ical location of the individual subsidiary from which the sales transaction originates. Significant countries are defined as countries r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresenting more than 5% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as well as the do-micile country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Denmark. No customer comprise more than 10% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue.1.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue1.2.1 Performance obligations Revenue is gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated from r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>endering of workplace and facility service solutions. Our services are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided at the customer's site on a daily basis continuously over the term of the contract. The customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Group. Thus, performance obligations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e satisfied over time. Revenue is split between portfolio and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects and above-base work, with the vast majority stemming from portfolio r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue, appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ox. 82%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> (2021: 81%).<span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span> 62,872 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 57,479 Projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 13,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 13,884 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue comprises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue from contracts with customers that is contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actually agreed (committed) at inception and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to services that we are obligated to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ender on a recurring basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the con-tract. Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects and above-base work (e.g. capital projects) is demanded on a non-recurring basis and agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed separately with the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.1.2.2 Disaggregation of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>evenueAligned with our strategy to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts in three prioritised segments, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e we deliver our core services, we disaggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue based on: • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">customer category;</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">customer segment;</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">services; and</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">geographical r<span class="_ _0"/>egion.</span>We belie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve that these best depict how the natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e, amount, timing and uncertainty of our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e affected by economic factors. (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021Customer category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Key accounts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 54,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 49,238 Large and medium<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c9"> </span> 17,387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 17,958 Small and route-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 4,485 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 4,167 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Customer segments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Office-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16f"> </span>30,647<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a Production-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>18,094<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a Healthcare<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span>10,046<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span> n/a Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span>17,751<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> n/a Core services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Cleaning<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11f"> </span> 34,693 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 34,416 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical <span xmlns="http://www.w3.org/1999/xhtml" class="_ _da"> </span> 16,640 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 16,226 Food<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 10,170 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 7,535 Workplace, incl. Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> 15,035 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 13,186 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Disaggregation of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue based on geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region is disclosed in 1.1, Segments. 1.2.3 Costs to fulfill a contract The size and complexity of ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account contracts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mobilisation costs before service delivery commences in order to be able to fulfill the performance obligations under the con-tracts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprise costs, directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to launching certain large long-term contracts such as tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of employ-ees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing service plans. The cost includes internal direct costs and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal costs, e.g. to consultants.At 31 December 2022, capitalised transition and mobilisation costs amounted to DKK 36 million (2021: DKK 62 million). No significant additional costs were capitalised in 2022. Capitalised transition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresented in 2.2, Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Customers</span>Customer category76.5DKKbn71% Key accounts 23% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>Large and medium0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws75">6% </span> Small <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>and <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>route-basedsegmentsCustomer segments76.5DKKbn40% Office-based24% Production-based13%Healthcare23% OtherservicesCore services76.5DKKbn45% Cleaning22% T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical13%Food20% Workplace, <span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>incl. Other1.2.4 Revenue backlog Our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue base consists of a mix of yearly con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tracts, which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e rene<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed tacitly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, and thousands of multi-year contracts, the majority of which have an initial term of three to five years. Depending on the size and complexity of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, the transition and mobilisation period is normally between six and twelve months for our key accounts. Contracts r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly include options for the customer to terminate for convenience within three to nine months. Ho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, we maintain a high retention r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate of 94% (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. the planned exit of the Danish Defence contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act), both for key accounts and o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verall, supporting that these options are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>arely e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised.As described in 1.2.1, Performance obligations, the vast majority of our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and the remaining part is non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring in the form of projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work. Projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work is not committed as part of the main customer contract and is therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluded from the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price to be allocated to the remaining performance obligation (re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue backlog). In addition, the Group has applied the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions of IFRS 15, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluded the following fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the backlog:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">contracts with a term of less than </span>12 months; and• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">contracts wher<span class="_ _0"/>e the Group invoices a fix<span class="_ _0"/>ed </span>amount for each hour of service pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided.As a result, the amounts disclosed in the matu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>rity table are significantly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than reported<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and will likely not reflect the degr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee of certainty in future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue (and cash inflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws) to<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> t<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>he<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> G<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>rou<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>p.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> As a supplement, in the manage-ment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>view<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, p. 20, a maturity overview for our largest key accounts (&gt; DKK 200 million of annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue) is presented.(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>34%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>21,413<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>33%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>20,3101-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span>54%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>34,407<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>50%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>30,586&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>12%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>7,352<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>17%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>10,148T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>63,172<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>61,044Accounting policyRevenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om contracts with customers is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when control of the services is tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to the cus-tomer at an amount that reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sideration for those services. Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed over time as the customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Services are typically invoiced on a monthly basis at an amount corresponding to the value of the com-pleted performance obligation.Revenue e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcludes amounts collected on behalf of third parties, e.g. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T and duties.The input method is used to measure pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogress towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds complete satisfaction of the service due to the direct r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elationship between labour hours and costs incurred, and the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group recognises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue on the basis of the labour hours and costs expensed relative to the total e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected labour hours and costs to complete the service.Significant accounting estimates and judgementsOur customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on three differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent commercial models r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equiring varying levels of man-agement estimates and judgement in determining the transaction price:1) Fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts;2) Cost-plus contracts; and3) Cost-plus variations (typically capped)For fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is recognised based on the transaction price stated in the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, and thus requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e limited judgement from management.For cost-plus contracts, including variations e.g. with a cap, ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price is determined based on costs incurred with the addition of an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed mark-up/management fee. Determining the transaction price requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es management to assess, which costs may be included in the calculation basis and if rele-vant, whether within the capped maximum.For key accounts and other large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the transaction price may also include a variable consideration based on achie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement of certain key performance indicators and gain share. Manage-ment estimates variable consideration based on the most likely amount to which it expects to be entitled on a contract-b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y-contract basis. Management makes a detailed assessment of the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived and the probability of suc-cess in each case. Variable consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is included in re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as services are performed to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that it is highly probable that the amount will not be subject to significant re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal.Price adjustment mechanisms in our customer contracts vary in terms of content and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent. Judgement is requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by management to determine the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived as a result of inflationary pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>essure on costs of delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Contract modifications r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, particularly for key account customers, in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der to ensure that service solutions reflect their curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent needs. Such modifications are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally agreed with the cus-tomer in advance as per the contract in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with a specified change management procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and accounted for going forward with no impact on recognised r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue up to the date of modification. Management assess how quickly ISS would be able to implement the scope changes of the service.Gross or net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentation of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls20 ws27"> Management </span>uses judgement to determine whether the nature of ISS’s pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>omise is to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the specified services (ISS is the principal), or to arrange for another party to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the services (ISS is acting as an agent). This assessment is based on an evaluation of whether ISS controls the specified services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e transfer to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group has concluded that as a main rule it is the principal in its re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue arrangements, because it typically controls the services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e trans<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferring them to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and consequently as a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> main rule recognises r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss basis.1.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs(DKKm)Note<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>2021Wages and salaries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 38,803 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 37,214 Social security costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 5,950 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5,581 Pensions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,448 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,376 Share-based payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span>6.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 80 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _77"> </span> 2,048 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 2,136 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 48,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 46,369 Average number of employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 352,792 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 362,789 Our strategy is based on self-delivery of our core services b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our placemakers. Our business model is asset light and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e employee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> costs is our single largest cost category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.In 2022, employee costs comprised 66% of the total operating costs (2021: 67%) and wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e positively impacted by a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efund of collective insurance pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emiums paid in prior years in Swe<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>den of DKK 23 million (2021: DKK 78 million).Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants In 2022, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised government grants of DKK 159 million (2021: DKK 135 million) in the form of wage subventions, which have been recognised as a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eduction of employee costs. The grants compensate the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup primar<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ily for social security<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, wage increases as well as employing certain categories of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees such as trainees, disabled persons, long-term unem<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ployed and emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees in certain age groups.In addition, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived Covid-19 gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants during the pandemic to compensate costs relat-ed to e.g. employees on furlough, social security contribution and sick pay compensation. With the cessation of the pandemic, the grants have gradually lapsed. In 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup recognised Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated grants of DKK 122 million (2021: DKK 432 million), mainly in the US, Hong Kong and Sweden.1.4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Other income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses, net (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>2021Gain on divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> 206 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 604 IT security incident<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 7 Other income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _da"> </span> 206 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 611 Loss on divestments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span> (124)(34)Integration costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(7) - Acquisition costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> (4)<span class="_ _5e"> </span> </span>(77)Ceased held for sale classification<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (59)Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _eb"> </span> (14)(2)Other expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span> (149)(172)Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 57 <span class="_ _37"> </span> 439 </span>Gain on divestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly related to the </span>Waste Management business in Hong Kong and the damage control business in the UK. In 2021, gain on divestments mainly related to Kanal Services in Switzerland and Specialized Services in the US. Loss on divestments <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">mainly comprised to a </span>withdrawal liability on a multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer plan in the US related to the divestment of the Specialized Services business in December 2021. In 2021, the loss mainly related to adjustments to prior years’ divestments and the divestment of the Fruit Baskets business in Sweden.Acquisition costs<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly related to the acquisi-</span>tion of Livit FM Services AG in Switzerland (2021: Rönesans Facility Management Company). Accounting policyOther income and expenses, net consists of recurring and non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring items that manage-ment does not consider to be part of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities, i.e. gains and losses on divestments, remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of disposal groups classified as held for sale, carrying amount adjustments regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding ceased held for sale classi-fication, the winding-up of operations, disposal of property and acquisition and integr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs.Other income and expenses, net ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separately fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities as management believes that this best reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s financial performance.Integration costs<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> r<span class="_ _0"/>elated to the acquisition of </span>Livit FM Services AG in Switzerland.Ceased held for sale classification<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised </span>depreciation and amortisation for the years 2019 to 2020 due to the ceased held for sale classification of Chile in 2021. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised mainly costs related to wind-</span>ing-up of a minor business in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _178"/>Oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ating assets, liabilities and fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ee cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>w Our ability to manage our working capital and secure the liquidity r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w and impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve our business is paramount, and driving strong cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w remained a ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y priority for ISS in 2022.In 2022, we generated nominal fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee cash flow (non-IFRS) of DKK 1.7 billion (2021: DKK 1.7 billion) driven by solid oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating profit and continued tight management of working capital. Investments in property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment (including right-of-use assets) remained lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w and comprised 1.5% of Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue (2021: 1.7%) reflecting our asset-light business model.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o improve capital efficiency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, we continued to focus<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> on the development in tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables, especially over<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>due receivables and unbilled r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables. As a result, the ageing pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofile of our trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables remained str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong with 89% of receivables in the not past due category (2021: 90%).<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">r</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ade r</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivablesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>eceivables<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">DKKbn</span>DKKbn%129510908856804752022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"/>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"/>2020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"/>2019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _179"/>2018T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivablesNot past due, %<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Fr</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ee cash flo</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee cash flowDKKbn32.421.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>1.710.4(1.8)0-1-22022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17a"/>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17a"/>2020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17a"/>2019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17a"/>2018Free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w (non-IFRS) (DKKbn)Asset-light business model1)47.0DKKbn7%Abuodel Fixed <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>assets, incl. right-of-use1) T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otal assets2.1 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>eceivables and credit risk 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span>2021ExpectedCarrying ExpectedCarrying (DKKm)Grosscredit lossesamount<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>Grosscredit lossesamountCentral &amp; Southern Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,553 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (50) 4,503 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 4,355 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (64) 4,291 Northern Europe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span> 3,218 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (24) 3,194 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 3,303 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (37) 3,266 Asia &amp; Pacific <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 2,072 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (38) 2,034 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,852 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (49) 1,803 Americas<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span> 1,171 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (12) 1,159 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 964 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (12) 952 Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span> 106 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 106 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 94 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 94 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 11,120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (124) 10,996 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 10,568 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (162) 10,406 Not past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span> 9,762 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 9,756 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 9,418 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (4) 9,414 Past due 1 to 60 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 1,073 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (4) 1,069 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 866 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 860 Past due 61 to 180 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 179 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (14) 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (12) 126 Past due 181 to 360 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 22 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (20) 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 37 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (34) 3 More than 360 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4f"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (80) 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 109 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> (106) 3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 11,120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (124) 10,996 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 10,568 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (162) 10,406 Expected credit losses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>2021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> (162)(299)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 0 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span> (59)(45)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 120 Unreco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts written off<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 64 Reclassification to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _8e"> </span> </span>(3)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span> (124)(162)Development in 2022 In 2022, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables increased to DKK 10,996 million (2021: DKK 10,406 million) mainly as a result of organic gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth driven by return-to-office tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ends and food service reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. At 31 December 2022, commercial use of fac-toring with certain large key account customers and participation in certain customers' supply chain finance arrangements was DKK 1.3 billion (31 December 2021: DKK 1.1 billion). At 31 December 2022, expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses were 1.1% (2021: 1.5%) of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables (gross) and tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables not past due was 89% of trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, net (2021: 90%).Credit risk– low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureThe Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit risk is inherently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elatively low due to its business model and strategic choices leading to a diversified customer port <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>folio, both in terms<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> of geography<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, industry sector<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, customer size and services. Also, the completion of our di<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>vestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme has contributed to the low risk assessment as higher-risk countries and business units have been divested.Risk managementExposure to cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit risk and expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses are managed locally in the oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating entities.We have a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong ongoing assessment and monitoring of customers' creditworthiness and the credit limits ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e set as deemed appropriate taking into account the cus-tomer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s financial position and the curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market conditions. In 2022, the increased inflation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates were managed tightly through price incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases. The vast majority of cost increases wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e passed on to customers as per the agreed contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>al terms with no increase in cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. Generally<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the Group does not hold collater-al as security for trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables. Accounting policyT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise invoiced and unbilled </span>re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Unbilled re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue represents service deliv-eries where the performance obligation has been fulfilled, but not yet invoiced.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised initially at the transaction price and subsequently measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at am-ortised cost. Due to its short-term nature, amortised cost will equal the invoiced amount less expected credit losses. An impairment analysis is performed at each reporting date using a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision matrix to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision rates are based on days past due for grouping of customer segments with similar loss patterns, e.g. by geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region, customer type and rating. The calculation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the probability-weighted outcome, the time value of money<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, reasonable and supportable information about past events, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent conditions and forecasts of future economic conditions.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally written off if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e past due more than 180 days or when ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e is no reasonable e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectation of reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rite-offs are presented in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. Subsequent reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very of write-offs or re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal of expected credit losses are cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edited against the same line item.Factoring <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">and participation in customers’ supply chain </span>finance arrangements (factoring) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly used to optimise cash collection and to finance working capital impacts related to gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth with certain ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> account customers, including from gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pressur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> for longer payment terms and necessary investments in transition and mobilisation of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables subject to factoring agreements are der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised once the derecognition criteria have been met and all substantial risks and re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wards have been transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the factor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Once the trade receivables have been der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, the Group does not carry any risk and has no continuing involvement in these trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables.2.2 Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2021Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 424 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 352 Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> 392 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 359 Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 155 Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> 110 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 134 Securities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 104 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span> 103 Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>103<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>27Derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 36 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _136"> </span>362<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>390T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span> 1,695 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 1,582 Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> comprised volume </span>related discounts obtained fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om suppliers and re<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>flects the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s efforts to consolidate the numberof suppliers and drive synergies and cost savings. The increase in 2022 was due to the gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pick-upin activity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, especially driven by the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn-to-office trends and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecovery of food services.Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised various </span>payments mainly related to IT licences, utilities and insurance.Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly r<span class="_ _0"/>elated </span>to the divestment of Specialized Services in the US, where part of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is subject to customer consent. Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised upfront discounts to </span>certain large customers, most significantly in the UK and on certain global key accounts. Significant accounting judgementsCapitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled. Management uses judgement to determine if the costs relate dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly to the contract and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e incurred in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der for ISS to be able to fulfill the contract. In addition, management determines if the costs generate r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources that will be used in satisfying the performance obligations and are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vered, i.e. reflected in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> pricing of the contracts.Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to a savings plan in the US </span>administered b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS on behalf of certain senior employees.Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to various r<span class="_ _0"/>eceiv-</span>ables, including Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated, mainly in the US, Spain and Denmark. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprised directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated costs incurred to fulfill the perfor-mance obligations under certain large contracts, cf. 1.2, Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. The decrease in 2022 was due to ordinary amortisation, mainly in Denmark, Sweden and the UK. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised refunds fr<span class="_ _0"/>om customers, </span>accrued interest, V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, employee-related tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es and other reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts.Accounting policyOther receivables comprise various items of different natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and thus different measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement methods are applied. As these items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered individually immaterial the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented together as Other receivables.Except for the items described belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, other receivables ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised initially at cost and subsequently at amortised cost. Due to the short-term nature of other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, amortised cost will equal the cost. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">(costs to fulfill </span>a contract) comprise costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly related to start-up of operations of certain large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, e.g. transfer of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing ser-vice plans. The costs include internal direct costs and external costs e.g. to consultants.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capitalised and amortised over the initially secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Bid-related costs, in-cluding costs relating to sales work and securing contracts, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expensed as incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Sign-on fees <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise upfront discounts to </span>certain large customers incurred in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of business. Sign-on fees are capitalised and amortised over the initial secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at fair </span>value.2.3 Other liabilities (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2021Accrued wages, pensions and holiday allowances<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> 5,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 5,514 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax withholdings, VA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>T etc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 1,503 Prepayments fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om customers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>805<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 868 Savings plan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>104<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>103Contingent consideration and deferred payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 31 Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _70"> </span>533<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>711T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>8,714<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 8,730 Savings plan<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to a plan in the US which is </span>administered b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS on behalf of certain senior employees.Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprised customer discounts, accrued </span></span>interests, etc. 2.4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Changes in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> working capital(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2021Changes in inventories<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4f"> </span> (61) 4 Changes in receivables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> (882)(110)Changes in payables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>1,387<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span> 1,162 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>444<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 1,056 2.5 Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>visions, contingent assets and liabilities, and guaranteesISS is exposed to various risks and uncertainties, and party to certain disputes, claims, investiga-tions and legal proceedings arising out of the normal conduct of its business. These are mainly within the following ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Commercial/contr<span class="_ _0"/>actual matters</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Labour-related</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Divestments and M&amp;A</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">T<span class="_ _5"/>ax/social regulations</span>Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions have been recognised in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to such obligations for probable losses, that management deems reasonable and appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate at 31 December 2022 as reflected in the table to the right.In addition, ISS is exposed to possible obligations in relation her<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eto as described below under 2.5.2 Contingent assets and liabilities.2.5.1 Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>visions Legal claims and disputesThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision primarily relates to labour-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated claims and disputes regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding wages, overtime,holiday<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance etc. as well as claims and dis-putes in relation to contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual disagreementswith customers and suppliers. In addition, the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision includes claims and disputes associ-ated with our divestment activities. Such claims and disputes arise out of the normal conduct of business. At 31 December 2022, the majority related to the UK, the US, Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Spain.Self-insuranceThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision for self-insurance mainly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to employers’ liability and/or workers compensation in certain countries and covers claims b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees for medical benefits and lost wages associated with injuries/illness incurred in the course of their employment. The r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant countries, including self-insurance limits ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e listed below:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Hong Kong:<span class="ff4"> DKK 26.8m (2021: DKK 25.2m) yearly</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">UK:<span class="ff4 ws0"> DKK 25.2m (2021: DKK 26.6m) yearly aggregated </span></span>limit and DKK 4.2m (2021: DKK 4.4m) per claim• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Australia: <span class="ff4 ws0">DKK 4.7m (2021: DKK 3.6m) per claim</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">US: <span class="ff4">DKK 3.5m (2021: DKK 3.3m) per claim</span></span>The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision also includes obligations not cover<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by the global gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al business liability insurance in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to damage caused in the ordinary course of service delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, e.g. property damage and bodily injury<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The Group is self-in-sured for claims belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w DKK 7.4 million (EUR 1 million per claim).Restructuring projectsThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision mainly covers r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estructuring projects initiated in 2020 in se<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veral countries. The purpose was to adjust our cost base on the back of Covid-19 and involved o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead reductions, including termination of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees and contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits.In 2022, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecution of the projects continued, which led to a decrease of DKK 303 million mainly due to sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance payments in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and Spain.Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actsThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision covers the unavoidable costs for certain loss-making contracts. The incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased in-flation during 2022, and resulting cost incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases, was generally managed thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ough price increases and cost reductions. Consequenly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, inflation did not lead to identification of any significant new onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts or increased pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision for contracts alr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eady recognised as oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Legal claims and Self- Restruc-Onerous (DKKm)disputesinsuranceturingscontracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal2022At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 262 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 374 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 330 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 515 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,716 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> (9) 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 4 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _eb"> </span>109<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>142<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span>99<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>371Used during the year(41)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(149)(263)(191)(90)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(734)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed(28)(15)(46)(80)(8)(177)Reclass (to)/from other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (1) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> - (110)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(109)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>268<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>245<span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 71 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>410<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>1,071Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>47<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 129<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span>- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 23<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>266<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 465Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>221<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>116 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span>71<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>54<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>144<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 6062021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span> 133 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 261 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 787 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 460 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,926 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> (6) 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 26 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 225 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 73 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 45 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 491 Used during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> (62)(232)(373)(21)(11)(699)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span> (55)(2)(52)(16)(10)(135)Reclass (to)/from other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (5) 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 24 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 107 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 262 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 374 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 330 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 515 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 1,716 Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span> 121 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 127 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 142 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 78 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 287 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 755 Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 135 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 232 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 961 In 2022, the decrease of DKK 253 million was mainly related to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xit from the Danish<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Defence contract, including payment of an exit fee, termination of lease obligations and disposal of equipment as well as utilisation of the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision for a key account contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act in Hong Kong. Furthermore, in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and the UK impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives on a few minor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> loss-making contracts led to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eversal of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> amounts pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in prior years.At 31 December 2022, the remaining pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision related to a ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account contract in Hong Kong and a few minor contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts in a few countries.Other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsOther pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions comprise various other risks and obligations incidental to our business, most significantly related to divestments and customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes and decommissioning liabilities.In 2022, the addition was mainly due to recogni-tion of a withdrawal liability on a multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer plan in the US related to the divestment of Specialized Services in 2021.At 31 December 2022, the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision mainly related to Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the US, UK and France.2.5.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Contingent assets andliabilities ISS is party to pending disputes, claims, investi-gations and litigations arising out of the normal conduct of its business and is therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e exposed to possible obligations. Management believes that these will not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabilities recognised in the statement of financial position at 31 December 2022. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the existence of such possible obligations will only be confirmed by the occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future events, not entir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ely within ISS’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s control. Due to the inherent uncertainty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, future events may lead to material adverse effects on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s profit or loss and financial position from one or mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of these possible obligations.Contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eementsContractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements with customers arise on a recurring basis in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of ISS’s business. While most ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esolved as part of the daily contract management pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures, in some cases the contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements will lead to legal proceedings.The Group is curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently party to certain disputes and legal proceedings, including in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to the contract with Deutsche T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>elekom. The contract continues to be structurally challenging. Follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing an agreed dispute r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esolution mechanism, certain contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements are subject to arbitration pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceedings initiated by ISS. Labour-related risksBeing a people company operating acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss differ-ent geographies and service ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas exposes us to varying and changing labour laws, especially across Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope. Although we have policies and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es in place to ensure that we comply with current r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egulations, interpretations and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es applied by ISS could be challenged in certain jurisdictions and result in disputes and possibly liabilities.The Group is curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently party to certain labour-related claims, disputes and legal pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceedings, e.g. around wages, o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vertime, holiday and sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance. Management believes that these would not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabili-ties already r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at 31 December 2022.DivestmentsThe Group makes pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovisions for claims fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om purchasers or other parties in connection with divestments and the repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentations and warranties given in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to such divestments. In addition, the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s divestment activities can give rise to possible obligations, mainly labour-related, including pension plans, and related to disputes in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to sales price.Restructuring projectsRestructuring projects ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e being undertaken on an ongoing basis across differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent geographies and service areas, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently mainly in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and Spain. Labour laws especially in Europe include r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estrictions on dismissals and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al rules to be followed. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures applied by ISS could be challenged in certain jurisdictions resulting in disputes and possibly lia-bilities. Management believes that this would not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabilities alr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eady recognised at 31 December 2022.2.5.3 Guarantees ISS has issued certain guarantees in the normal course of business. Guarantees do not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epre-sent legal or constructive obligations and are not recognised in the statement of financial position at 31 December 2022.(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2021Bank-guaranteed 1,755<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>1,761 performance bondsOther performance bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>1,831<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span>1,819Performance guarantees (service contracts)3,586<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>3,580Indemnity and guarantee commitments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>472<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>479Performance guarantees ISS regularly issues performance guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees to customers to guarantee satisfactory completion of work in accordance with the service contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Such guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued in the ordinary course of business, either in the form of bank guarantees, par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent guarantees or insur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ances. Indemnity and guarantee commitmentsOther guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly issued to insurance companies towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds self-insurance liabilities as well as to owners of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ental property occupied b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS in certain countries. Furthermore, in a fe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w instances guarantees have been issued to public authorities towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds tax withholding liabilities.Significant accounting estimates and judgementsOur strategic choice to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts increasingly leads to a customer case comprising large, more comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x contracts in terms of perfor-mance obligations towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds our customers. Addition-ally<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the size and complexity of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mo-bilisation costs before service delivery commences to enable fulfillment of the performance obligations. Furthermore, comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x restructuring pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects may need to be initiated and recognised as a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management assesses whether </span>contracts may be oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous by estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofitability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. This involves estimating total contract r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and the unavoidable costs of meeting the performance obligations under the con-tract, including any tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs incurred. In estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit-ability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, management makes judgements, including in relation to termination and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtension options.Certain contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e large, complex and longer term facility service partnerships. In estimating unavoid-able costs in relation to such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, management makes assumptions around futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e realisation of costs taking estimated optimisations and efficiency gains from impr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovement initiatives into consider-ation. While ISS has inherent risk in this r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espect, ISS is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e also dependent on aligning interest with the customer within the frame<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>work of the agree-ment for the benefit of both parties. The outcome may vary significantly should the assumptions and judgements applied not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected by management and applied as basis for their assess-ment of whether a contract is oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management </span>makes judgements related to various other matters and obligations, primarily relating to planned/initiated restructurings, and comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes, including ongoing lawsuits. Management’s assessment of the likely outcome of lawsuits, tax disputes, etc., is based on external legal assistance and established precedents.For large, complex contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the outcome may vary significantly should the judgements and assump-tions applied by management in their assessment of the risks and disputes not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected.Accounting policyPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when the Group, as a result of a past e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vent, has a present legal or con-structive obligation, it is probable that an outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of economic benefits will be requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and a reliable estimate can be made of the amount of the obligation. The costs requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation are discounted using the entity’s average borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owing r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, if this significantly impacts the measurement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Legal disputes and claims<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, e.g. lawsuits and other </span>disputes, based on external legal assistance and established precedents.Self-insurance <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">on emplo<span class="_ _0"/>yers’ liability and/or workers </span>compensation based on valuations from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal actuaries. Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> when a detailed, formal restructuring </span>plan is announced to the affected parties on or before the reporting date. The plan must identify the busi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ness concerned, the location and number of employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees affected, and a detailed estimate of the associated costs, as well as the timeline must be in place. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, when the unavoidable costs, </span>including directly allocated o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead costs, of meet-ing the obligations under the contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the economic benefits expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived under it, corresponding to the lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer of the costs to fulfil the obligations under the contract and the costs of exiting the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated disputes<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> based on </span>an assessment of available facts and circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual or constructive obligation exists, and it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obable that this will lead to an outflow of economic r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources from the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Decommissioning liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, if the Group has a </span>legal obligation to dismantle or remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve an asset or restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a site or leased facilities when vacated. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision corresponds to the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected costs to settle the obligation.The present value of the obligation is included in the cost of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tangible or right-of-use asset and depreciated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated future costs of decommissioning are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed annually and adjusted as appropriate. Changes in the estimated future costs, or in the discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate applied, are added to or deducted from the cost of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant asset.Contingent assets and liabilitiesContingent liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f ws78">comprise: </span>1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>possible obligations that arise from a past event and whose existence will only be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents; and2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>obligations that are not recognised as the amount cannot be measured sufficiently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eliable or it is not probable that economic benefits will be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to settle the obligation.Contingent assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f"> are possible assets whose </span>existence will be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurrence of uncertain futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e events that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not wholly within the control of the entity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Contingent assets and liabilities are not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, but disclosed in the notes.2.6 Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>, plant and equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/> ISS is a people business operating based on an asset light business model. Operating assets (leased and owned) comprised only 7% of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s total assets at 31 December 2022. Our model is based on leasing, rather than o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wning, property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, vehicles and equipment. Right-of-use assets At 31 December 2022, ISS was party to around 18,500 lease agreement of which the majority related to vehicles, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas in terms of asset value, the main part related to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Additions amounted to DKK 765 million in 2022, which was impacted by ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w country head office leases in Austria and Singapore and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtensions in a few other countries. This was slightly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than 2021 where additions of DKK 859 million included new head office leases in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Norway and additional new vehicle leases due to contract wins in the UK, Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, Norway, Mexico and Finland.Property plant and equipment Additions of DKK 345 million in 2022 primarily related to equipment for ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w and existing contracts and was br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oadly in line with 2021.20222021Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,plant andplant and(DKKm)Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equipment equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"/>Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Cost at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,455 2,411 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,313 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,397 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,615 Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (117)(203)(94)(414) - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> (9)(35)(40)(39) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (46) 22 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 45 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 20 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 57 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 183 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> 264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 189 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 345 347 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 140 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 859 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 335 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 34 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 7 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 27 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (16) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> (122)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span> (198)(252)(81)(531)(654)(127)(199)(96)(422)(489)Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span>-(6) 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (6)18<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>44Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span> 2,657 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,412 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,776 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 3,275 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3,455 Depreciation at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span> (1,071)(669)(281)(2,021)(2,524)(842)(689)(354)(1,885)(2,581)Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - 117 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 94 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 414 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> (1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>19<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>25<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>30(18)(12) 21 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (9)(57)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (13)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (20)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (107)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (22) (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> (5)Depreciation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> (398)(356)(134)(888)(376)(412)(368)(142)(922)(422)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> 15 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 109 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 198 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>81<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>531<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 626 126 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 199 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 95 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>420<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 456 Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (10)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(2)5(7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span>(24)Depreciation at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span> (1,272)(773)(328)(2,373)(2,358)(1,071)(669)(281)(2,021)(2,524)Carrying amount at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 1,385 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 639 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 379 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 917 1,511 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 638 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 296 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 931 Significant accounting judgementsLease term<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Sever<span class="_ _0"/>al of ISS’s lease contr<span class="_ _0"/>acts (office </span>buildings) have no contractual fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed lease term or contains an extension option. Management ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercises judgement in determining whether these extension options ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e reasonably certain to be ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercised. Management considers all r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant facts and circumstances that cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eate an economic incen<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tive for the Group to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cise the extension option.The lease term for contracts without an end date is set to ten years for head office and accessory buildings, whereas all other leases with no definite end date are set to five years. Lease liabilityThe carrying amount of lease liabilities and the movements in the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings. The maturity profile is disclosed in 4.6, Liquidity risk. Lease-related costs in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>2021Depreciation of right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 888 <span class="_ _173"> </span> 922 </span>Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 82 <span class="_ _4b"> </span> 69 </span>Leases of low-value assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 168 Short-term leases<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span> 88 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> 88 Variable lease payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> 13 Recognised in profit or loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 1,272 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 1,260 Hereof cash outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 338 Accounting policyRight-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at the com-</span>mencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of lease liabilities, including extension options. Cost comprises the amount of lease liabilities recognised, initial dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect costs, dismantling and restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs incurred and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Estimated useful lifeProperties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">5-10 years</span>Cars3-5 yearsOther equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">2-5 years</span>Certain leases have a term of 12 months or less or are leases of lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-value assets, such as minor cleaning and IT equipment and office furniture. The recognition e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e applied for these leases and lease payments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the lease term. Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is measured at </span>cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the acquisition until the date when the asset is ready for use. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of estimated liabilities related to dismantling and remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ving the asset and restoring the site on which the asset is located is added to the cost.Subsequent costs, e.g. for replacing parts of an item, are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the cost of the asset if it is probable that the futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits embod-ied by the item will flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w to the Group. The carrying amount of the item is derecognised when r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eplaced and transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to profit or loss. All other costs for common repairs and maintenance ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in profit or loss when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. Depreciation is based on the cost of an asset less its residual value. When parts of an item of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment have different useful lives, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are accounted for separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated useful life and residual value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e determined at the acquisi-tion date. If the residual value e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds the carrying amount depreciation is discontinued. Depreciation is calculated on a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aight-line basis over the estimated useful lives of the assets.Estimated useful lifePlant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">3-10 years</span>Leasehold impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vements (lease term)3-10 yearsBuildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">20-40 years</span>Land is not depreciated.Depreciation methods, useful lives and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esidual values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eassessed at each reporting date and adjusted prospectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if appropriate. Gains and losses arising on the disposal or retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment are measured as the differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence between the selling price less direct sales costs and the carrying amount, and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses in the year of sale, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept gains and losses arising on disposal of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which are recognised in Other income and expenses, net. 2.7 Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w as defined by management, cf<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 8.5, Definitions, is summarised below<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Free cash flow is not a financial performance measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e defined by IFRS. Accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the measure and its calculation is presented as it is used b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management as an alternative performance measure in managing the business. The free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w measure should not be considered a substitute for those measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by IFRS and may not be calculated by other companies in the same manner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. As such, refer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence is made to the IFRS measures included in the consolidated statement of cash flows of the consolidated financial statements. (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>2021Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 3,333 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 3,221 Acquisition of intangible assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (809)(628)Disposal of intangible assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 30 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 42  1)Acquisition of financial assets, net(51)(30) 2)Addition of right-of-use assets, net(769)(870)Free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>1,734<span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 1,735 1) Excluding investments in equity-accounted investees which in 2022 was DKK (22) million (2021: DKK (24) million). 2) Including DKK 4 million (2021: DKK 13 million) related to discontinued operations, cf. 2.6, Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty, plant and equipment.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> Str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>ategic <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>investments and divestments Acquisition agendaOur asset base is the result of our e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpansion strategy in the 00s, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e acquisitions were used to scale and rapidly e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpand the business across services and geographies.Learning from history – and a decade of divestments of non-strategic businesses – we will over the ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xt years initiate selective acquisition assessments to scale our OneISS platform in a disciplined and controlled manner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. With that in mind, we acquired the facility manage-ment company Livit FM in Switzerland in October 2022. The acquisition supports the OneISS strategy by e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpanding and developing our services to the prioritised real estate industry segment.Divestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme completedIn 2022, we divested our businesses in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan, Russia and Portugal as well as two business units in the UK and Hong Kong. Furthermore, the busi-ness in Brunei was divested in February 2023. Our strategic divestment pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogramme was ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efore completed and the targeted proceeds of DKK 2.0 billion were secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The total impact on profit or loss from divestments in 2022 was a net gain of DKK 201 million (2021: DKK 591 million).Investing in technologyWe have a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategic ambition of becoming technology leader in our industry by focusing on three str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategic pillars: 1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>the right digital applications for our customers and placemakers;2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>scalable and cybersecure “<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>cloud-first<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>” infra-structure; and3) managed by inhouse global technology teams.In recent year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, we have therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e invested more in IT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and will continue to do so in the coming years. Our newly established softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e develop-ment centre in Portugal will play an important role in supporting our str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategy by de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloping and operating apps, platforms and data analytics among others.Intangible assets– our largest asset category<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">1)</span>1)47.0DKKbnInt51%Intangibles1) T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otal assetsDivestment pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogramme completed <span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>5<span xmlns="http://www.w3.org/1999/xhtml" class="fs36"> <span class="_ _19d"/><span class="ff6 fs3 fc2">businesses divested</span></span>201<span xmlns="http://www.w3.org/1999/xhtml" class="fs36"> <span class="_ _19d"/><span class="ff6 fs3 fc2">DKKm net gain r<span class="_ _0"/>ealised</span></span>Acquisition agenda initiatedLivit FM<span xmlns="http://www.w3.org/1999/xhtml" class="ff3 fs36"><span class="ff6 fs3 fc2">acquired in Switzerland</span></span>Investing in technology<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Softwar</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e addit– software additions<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">DKKbn</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">%</span>DKKbn5004003002001002022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19c"/>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19c"/>2020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19c"/>2019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19c"/>2018Software additions3.1 Intangible assets 20222021Customer SoftwareCustomer Software1)2)1)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalGoodwill Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>(DKKm)Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalCost at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7e"> </span> 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 36,531 22,643 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 8,626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 35,437 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> (112) 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (107)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(9)(223) 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 112 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 536 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 644 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 884 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Additions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 454 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 454 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 248 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19f"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 364 97 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 428 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 532 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> (46) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (1)(2)(49)(20) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (106)(1)(127)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (93)(118)(211) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (12)(174)(186)Reclass (to)/from Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - 56 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (15) 91 Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _115"> </span> 23,867 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 9,293 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span>2,925<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 37,756 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 36,531 Amortisation and impairment losses at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (3,425)(74)(8,501)(1,792)(13,792)(2,981)(61)(8,302)(1,575)(12,919)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (4) 38 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>50 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (3)(218)(15)(230)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (2)(3)(5)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-Amortisation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _51"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (4)(65)(207)(276) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (10)(54)(289)(353)Impairment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (24)(24)(450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (92)(542)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _47"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 3 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 102 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 115 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 208 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 181 Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (40) 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (31)Amortisation and impairment losses at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> (3,417)(82)(8,436)(1,901)(13,836)(3,425)(74)(8,501)(1,792)(13,792)Carrying amount at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span> 20,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 857 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,024 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 23,920 19,753 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,592 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 597 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 797 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 22,739 1) Of which DKK 133 million related to software under de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment at Group level (2021: DKK 93 million).2) The impairment loss in 2021 of DKK 450 million related to France.Hyperinflation restatement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Implementation of </span>IAS 29 in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y led to a significant increase of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangible assets, in total DKK 879<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> million, net. The increase r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to goodwill (DKK 644 million), customer contracts (DKK 233 million) and software (DKK 2 million). Further details ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey.Livit FM, Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="fs14 ls0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The acquisition in </span>October 2022 added DKK 347 million to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangibles relating to goodwill (DKK 191 million) and customer contracts (DKK 156 million). Further details are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided in 3.3,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Acquisitions.Software and other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> In line with the Gr<span class="_ _0"/>oup’<span class="_ _0"/>s stra<span class="ls0">-</span></span>tegic ambition of becoming the technology leader in the industry<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, we are investing mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in software, e.g. digital applications for our customers and employees as well as cybersecur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e infrastructur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. In 2022, additions amounted to DKK 454 million (2021: DKK 248 million), the majority related to Group-wide systems and applications. Significant accounting judgementsCloud-based arrangement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At the commencement </span>date, management assesses whether the Group ac-quires an intangible asset, a leased asset or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives a service over the term of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. If the Group receives a right to access the cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider's appli-cation without further rights or control it is neither a lease nor an intangible asset. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group may acquire an intangible asset if the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the contractual right to take possession of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e during the contract period without significant penal-ty and it is feasible for the Group to run the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e on its own har<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dware or with another cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.In SaaS arrangements, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider controls the application software, the assessment of whether configuration or customisation of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e results in an intangible asset for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances or modifies, or creates additional capability to the existing on-pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emise software to enable it to connect with the cloud-based software applications. If activities are performed on the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s infrastruc-ture and applications, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y likely repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent assets that the Group contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ols because they enhance, impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve or customise existing softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e assets.Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets.3.2 Impairment tests3.2.1 Impairment test results 2022 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/> The impairment tests of goodwill, customer con-tracts and br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ands performed at 31 December 2022 did not result in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition of impairment losses (2021: DKK 450 million in France).Except for Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance, it is management’s opinion that ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cess values in the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GUs are fairly resilient to any likely and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easonable deteriora-tions in the key assumptions applied.France is further described on p. 74.3.2.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Goodwill and customer contracts The carrying amounts of intangibles for CGUs repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esenting more than 5% of intangibles, or CGUs consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to be at high risk of impair-ment are disclosed belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6a"> </span>2021Customer Customer (DKKm)Goodwillcontracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>Goodwillcontracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalUK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span> 2,562 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 99 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 2,661 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 2,748 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 121 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 2,869 US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> 2,197 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 155 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 2,352 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 2,068 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 2,229 Finland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 2,098 Switzerland <span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span> 1,598 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 157 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,755 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,334 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 1,334 Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> 1,620 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,620 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,652 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 1,652 Australia &amp; NZ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10c"> </span> 1,327 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 1,336 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,340 Belgium &amp; Lux.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 1,319 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span>848<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 434 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>1,282<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> 260 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 555 Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span> 1,228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,295 France<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 936 Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span>4,717<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>4,727<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 4,707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 16 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 4,723 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> 20,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 857 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>21,307<span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 19,753 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 597 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 20,350 <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>1)Acquisition-related intangibles2)– by risk category 22.9DKKbn96% Low risk0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws67">4% </span>High risk1) Comprise goodwill, customer contracts and brands. 2) Internal assessment of likelihood of incurring a material impairment loss.Cash-generating units (C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GUs)Consistent with the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s management and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> reporting structur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e, the lowest le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel of CGUs is the individual countries, as cash inflows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e generated largely independent of cash inflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws in other ISS countries (the majority of our contract portfolio is locally based with no cross-bor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der ac<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tivities). Accordingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, impairment tests are carried out per country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, and intangibles (i.e. goodwill and customer contracts) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e allocated to these.Management of certain countries has been combined to take advantage of similarities in terms of markets, shared customers and cost synergies. In such ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceptional cases, the coun-tries are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egarded as one C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU when performing the impairment test.Calculating reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts The reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount of each C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU is calculat-ed on the basis of its value-in-use using certain key assumptions per C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU, i.e. r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth, operating margin and discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate as sho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wn in the table to the right.Value-in-use cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w projections for the individual CGUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on financial forecasts for the following year as appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y man-agement. Assumptions applied in the short to medium term (forecasting period of five years) generally r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect management’s e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations considering all rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant factors, including the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s strategic initiatives, local initiatives, past experience and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal sources of information, where possible and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant. This also includes expected de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment in local markets in terms of competition, inflation and gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth.More specifically<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, management has considered the expected impacts fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the OneISS strategic priorities, especially around continued ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account focus, investments in technology and the global operating model. Wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant, initiated restruc-turings and other impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives, have also been taken into consideration when estimating the expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e performance and cash flows.In 2022, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eached its turnaround tar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>get fol<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>lowing impr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved financial performance in the UK, on the Deutsche T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>elekom contract and with the exit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>omthe Danish Defence contract. Management car<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efully considered the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected continued impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement to ensure that it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operly reflected in determining the key assumptions for the specific C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GUs.Management also ensured that financial for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecasts and assumptions applied reflect the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected macroeconomic de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments, which in 2022 primarily related to the impact fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om increased interest and inflation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates. During the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the Group demonstr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated its ability to manage and mitigate price increases in the supply chain, including activating indexation mechanisms in the contract portfolio to pass on price incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases to our customers. Furthermore, the impact fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om Covid-19reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very in 2022 has been considered.Assumptions applied in the terminal period gener<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ally reflect management’s long-term e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for the individual country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Revenue gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects inflation and GDP gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth and is determined based on input from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal sources like IMF’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s “<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>World Economic Outlook”. Operating margin r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the expected normalised earnings le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel in the long term.Corporate costs for the services performed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s head office functions for the benefit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> of the CGUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e allocated to the individual CGUs and taken into account in the calculation of the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount.Key1)assumptions Basis for assumptionRevenue Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ear 1gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Financial forecasts as appr<span class="_ _0"/>oved b<span class="_ _0"/>y management </span>Forecasting period (year 2-5)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Based on expected market de<span class="_ _0"/>velopment, including maturity and inflation</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Impact from local and Gr<span class="_ _0"/>oup initiatives are consider<span class="_ _0"/>ed, including key </span>account focusT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>erminal period• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Long term expectations based on IMF “World Economic Outlook”</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _ce"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Not ex<span class="_ _0"/>ceeding expected long-term aver<span class="_ _0"/>age for the country<span class="_ _0"/>, including inflation</span>Operating Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ear 1margin• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Financial forecasts as appro<span class="_ _0"/>ved by management</span>Forecasting period (year 2-5)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Impact from local and Group initiatives ar<span class="_ _0"/>e considered, including ke<span class="_ _0"/>y ac<span class="ls0">-</span></span>count focus and investments in technology and the global operating model• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Restructurings and other local impro<span class="_ _0"/>vement initiatives are consider<span class="_ _0"/>ed</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>erminal period• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Reflects the expected normalised earnings le<span class="_ _0"/>vel in the long term</span>Discount rates• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Risk-free interest rate based on 10-year go<span class="_ _0"/>vernment bonds (country-specific)</span>(net of tax)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Premium added to adjust for the inconsistency of applying go<span class="_ _0"/>vernment </span>bonds with a short-term maturity when discounting cash flows with infinite maturity• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Country specific estimation risk premium added (to r<span class="_ _0"/>eflect possible </span>variations in amounts/timing of the projected cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Equity risk premium: 6.0% (2021: 6.5%)</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Debt/equity target ratio (market values): 25/75 (2021: 25/75)</span>1) The key assumptions applied are used for accounting purposes and should not be consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed a forward-looking statement within the meaning of the US Private Securities Litigation Act of 1995 and similar laws in other countries regarding e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations to the future development.A sensitivity analysis on the key assumptionsin the impairment testing is presented to the right. The allowed change r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresents the percentage points b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y which the specific key assumption can change, all other things being equal, before the C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount equals its carrying amount.Management's assessment of risk of incurring an impairment loss is based on the estimated ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cess value for the specific CGU<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.France<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fs14 ls0 ws0"> <span class="_ _0"/><span class="ff4 fs3 fc3 ls41">During 2022, the original restructuring and </span></span>cost optimisation progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme was finalised, though with a lower impact than initially anticipated, in part due to exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e to certain industry segments with slow Co<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vid-19 reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very and muted commercial momentum. At the same time, interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates and inflation rates incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased significantly during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Thus, organic growth and oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating margin for the year were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ealised below tar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>get.In the late part of 2022, the country leadership team was strengthened with a ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w country manager and enhanced commercial and oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>a-tional resour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ces to ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecute an updated business impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement plan. In addition, in December 2022 the French parliament announced a gradual abolition of the CV<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>AE (value-added tax of 1.5% of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue) with partial effect in 2023 and full effect from 2024.As a result of these significant internal and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal circumstances and de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments in 2022, manage-ment updated the business plan, which in general reflects a slo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer pace in reaching a sustainable operating margin of 5.0%. Forecasting period<span xmlns="http://www.w3.org/1999/xhtml" class="_ _26"> </span>Terminal periodDiscount rate, 1)Gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span>MarginGro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>Marginnet of taxCarrying Allowed Allowed Allowed Allowed Allowed Pre-2)(DKKm)amount<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>Risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>Avg.decrease<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>Avg.decrease<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Ratedecrease<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Ratedecrease<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Rateincreasetax2022UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 2,661 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _d0"> </span></span>4.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;4.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 5.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;5.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 10.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 12.9 %US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span> 2,352 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _181"> </span></span>6.1 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>&gt;6.1 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 5.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;5.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> &gt;3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 10.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 13.9 %Finland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>1.9 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;1.9 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>5.3 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 8.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 10.5 %Switzerland <span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span> 1,755 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>2.3 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;2.3 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 7.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;7.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>6.9 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 7.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>&gt;7.0 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 8.3 %Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span> 1,620 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _181"> </span></span>1.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>&gt;1.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> &gt;2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 10.8 %Australia &amp; NZ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span> 1,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>2.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;2.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 5.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;5.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 9.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 9.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 14.1 %Belgium &amp; Lux.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>2.5 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>&gt;2.5 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 9.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 11.6 %T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> 1,282 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _d1"> </span></span>36.0 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>17.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 8.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;8.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 10.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span> &gt;10.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 8.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 5.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 21.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 10.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 27.3 %Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span> 1,228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>2.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;2.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 7.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;7.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;7.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 9.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>&gt;9.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 11.8 %France<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1">High<span class="_ _d0"> </span></span>1.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>1.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 0.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>0.7 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 5.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>0.4 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 9.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>0.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 11.4 %2021UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span> 2,869 Low<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs61 fc3 ls0 ws0"> 3.9 % <span class="_ _69"> </span> &gt;3.9 % <span class="_ _52"> </span> 4<span class="fs24">.</span>6 % <span class="_ _37"> </span> &gt;4.6 % <span class="_ _52"> </span> 2.5 % <span class="_ _69"> </span> &gt;2<span class="fs24">.</span>5 % <span class="_ _52"> </span> 6<span class="fs24">.</span>0 % <span class="_ _8e"> </span> 3<span class="fs24">.</span>8 % <span class="_ _52"> </span> 8<span class="fs24">.</span>7 % <span class="_ _8e"> </span> 7.9 % <span class="_ _15d"> </span> 11.3 %</span>US &amp; Canada <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 2,229 Low<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs61 fc3 ls0 ws0"> 13.1 % <span class="_ _93"> </span> &gt;13.1 % <span class="_ _52"> </span> 6<span class="fs24">.</span>8 % <span class="_ _37"> </span> &gt;6.8 % <span class="_ _52"> </span> 3.0 % <span class="_ _69"> </span> &gt;3<span class="fs24">.</span>0 % <span class="_ _52"> </span> 6<span class="fs24">.</span>8 % <span class="_ _8e"> </span> 4<span class="fs24">.</span>6 % <span class="_ _52"> </span> 9<span class="fs24">.</span>0 % <span class="_ _8e"> </span> 8.7 % <span class="_ _d2"> </span><span class="fs24"> 11.6 %</span></span>Finland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">Low<span class="_ _76"> </span></span> 1.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;1.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 5.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 9.1 %</span>Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span> 1,652 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _163"> </span></span> (1.8) % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 1.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 9.8 %</span>Australia &amp; NZ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> 1,340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _76"> </span></span> 2.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;2<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;6.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 4<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 12.3 %Switzerland <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span> 1,334 Low<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs61 fc3 ls0 ws0"> 1.5 % <span class="_ _69"> </span> &gt;1<span class="fs24">.</span>5 % <span class="_ _52"> </span> 7.1 % <span class="_ _37"> </span> &gt;7.1 % <span class="_ _52"> </span> 1.5 % <span class="_ _69"> </span> &gt;1<span class="fs24">.</span>5 % <span class="_ _52"> </span> 7<span class="fs24">.</span>1 % <span class="_ _8e"> </span> 5<span class="fs24">.</span>9 % <span class="_ _52"> </span> 6.3 % <span class="_ _69"> </span> &gt;6.3 % <span class="_ _5e"> </span><span class="fs24"> 7.6 %</span></span>Belgium &amp; Lux.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _76"> </span></span> 3.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;3<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;5.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 1.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 9.8 %</span>Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 1,295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _76"> </span></span> 6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;7.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 7<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 11.0 %</span>Sweden<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ac"> </span> 1,010 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _76"> </span></span> 3.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;3<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;5.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 4<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;8.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 10.0 %</span>France<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ad"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1">High<span class="_ _37"> </span></span> 1.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 0<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 3.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 0.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 0.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 0<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 0.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 13.7 %</span>1) Excluding allocated corporate costs.2) Risk is assessed based on the estimated excess value for the specific C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU.The impairment test at 31 December 2022 based on the updated business plan did not result in recognition of an impairment loss. The e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcess value continues to be limited though slightly impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ved as a result of the gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>adual abolition of the CV<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AE tax.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="ff6"> <span class="ff4 fc3">The implementation of IAS 29 resulted </span></span>in an increase in the carrying amount of goodwill and customer contracts of DKK 0.9 billion. The impairment test at 31 December 2022 based on the updated business plan reflecting the current inflationary envir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>onment, did not result in recognition of an impairment loss.3.2.3 Brands The carrying amount of brands r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates mainly to the ISS brand and amounted to DKK 1,589 million at 31 December 2022 (2021: DKK 1,592 million). Management believes that the value of the ISS brand supports the ISS Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup in its entirety r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ather than any individual CGU<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Accord-ingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the ISS brand is tested for impairment at Group le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel. The impairment test is based on group-wide cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws adjusted for the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s total goodwill and other non-current assets. In 2022, no impairment of the ISS brand has been identified.Sensitivity analysisNo sensitivity is shown for the ISS br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>and, as thegroup-wide cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws adjusted for the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’stotal goodwill and other non-current assetssignificantly ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceed the carrying amount. This is additionally supported by ISS'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s market capitalisation at 31 December 2022 of appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-imately DKK 27 billion ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeding the carrying amount of equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, which amounted to DKK 10,815 million.Significant accountingestimatesIn performing the impairment test, manage-ment assesses whether the CGU to which the intangibles relate will be able to gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate positive net cash flows sufficient to support the value of intangibles and other net assets. The assessment is based on estimates of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows (value-in-use) for the individual GCU<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, which by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are uncertain.Estimates are made using financial for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecasts for the following year as appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management, and estimated discount rates, gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth and market developments. Assumptions applied in the short to medium term (forecasting period of five years) generally r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect management’s expecta-tions considering all rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant factors, including estimated optimisations and efficiency gains from impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives, past experience and external sour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ces of information, where possible and rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>erminal growth r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates and margins applied reflects management’s long-term e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth for the individual CGUs, including inflation, and normalised earnings, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.The outcome of the impairment test may vary significantly should the assumptions, estimates and judgements not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected and applied as basis for management’s conclusion of whether impairment of a CGU has occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Accounting policyIntangible assets with an indefinite useful life, i.e. goodwill and the ISS brand, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e subject to impairment testing annually or when circumstanc-es indicate that the carrying amount may not be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable. Other non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets are tested annually for indications of impairment.If an indication of impairment exists, the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecover-able amount of the asset is determined, i.e. the higher of the fair value of the asset less antici-pated costs of disposal and its value-in-use. The value-in-use is calculated as the present value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the asset or the CGU to which the asset belongs.The carrying amount of goodwill is tested for impairment together with the other non-current assets in the CGU to which goodwill is allocated. Management believes that the value of the ISS brand supports the ISS Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup in its entirety rather than any individual C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly, the ISS brand is tested for impairment at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level. The impairment test is based on group-wide cash flows adjusted for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s total goodwill and other non-current assets.An impairment loss is recognised in the statement of profit or loss in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate line if the carrying amount of an asset or CGU e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds its estimated reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount.Impairment of goodwill is not re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed. Impair-ment of other assets is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed if estimates used to calculate the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount have been changed. An impairment loss is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed to the extent that the carrying amount does not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the carrying amount that would have been deter-mined, net of depreciation and amortisation, if no impairment loss had been recognised.3.3 Acquisitions 3.3.1 Acquisition impactLivit FM, SwitzerlandOn 27 October 2022, ISS acquired 100% of the shares in Livit FM Services A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>G (Livit FM), a Swiss facility management company<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Th<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ac<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>qu<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>i<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>si<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>on will enable us to expand and de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velop our service delivery to the real estate industry segment in the Swiss market, as Livit FM services a large part of Swiss Life'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s properties in Switzerland.The acquisition will add annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 402 million and 670 employees (estimated based on unaudited financial information).During the period 27 October to 31 December 2022, Livit FM contributed re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 66 million to the ISS Group.The purchase consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation amounted to DKK 337 million. Based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values of net assets, goodwill amounted to DKK 191 million. Goodwill is attributable mainly to: 1) expertise and kno<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-how in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eal estate industry segment, 2) synergies, 3) platform for gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth, and 4) assembled work force, and is not deductible for tax purposes.Prior years adjustments The adjustments related to the acquisition of Rönesans Facility Management Company in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y in 2021. The purchase price allocation of the identified assets, liabilities and contingent liabilities was completed within 12 months of the acquisition date. Subsequent acquisitionsThe Group completed no acquisitions fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om 1 January to 15 February 2023.Prior (DKKm)Livit FM year adj. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span>2021Customer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e1"> </span> 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 428 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span> 48 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 48 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 26 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12a"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (13) (3)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 184 Other current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ae"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 105 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span> (76) 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (68)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (112)Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b0"> </span> (42)(6) (48)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (194)Fair value of net assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e7"> </span> 146 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> (6) 140 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 437 Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b1"> </span> 191 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> 97 Consideration tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b2"> </span> 337 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 343 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 534 Cash in acquired business<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e7"> </span> (33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (97)Consideration tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a3"> </span> 304 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 310 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 437 Contingent and deferred consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 89 Acquisition of businesses (cash flow) 304 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 21 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 325 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 526 Accounting policyBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate of the consideration transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee. For each business com-bination, the Group elects whether to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the non- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests in the acquiree at fair value or at the proportionate shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of the acquiree’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s identifiable net assets. Acquisition-related costs are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses, net. Any contingent consideration to be tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the acquirer is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acqui-sition date.If uncertainties exist at the acquisition date r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-garding identification or measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of assets, liabilities and contingent liabilities, initial recognition is based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values. Changes to fair values are adjusted against goodwill up until 12 months after the acquisition date and comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated accordingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Thereafter no adjustments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made to goodwill, and changes in fair values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other income and expenses, net. Goodwill is initially measured at cost (being the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcess of the aggregate of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and the amount recognised for non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interests) and any pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vious interest held o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s cash-generating units (CGUs) that are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected to benefit from the combination, irr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective of whether other assets or liabilities of the acquiree are assigned to those units. 3.3.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Pro forma r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>evenue and operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ofit Assuming acquisitions and divestments in the year were included/e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcluded in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss from 1 January 2022, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o forma basis would have been DKK 76,825 million compared to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eported re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 76,538 million. Likewise, oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items on a pro forma basis would have been DKK 2,858 million compared to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eported operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items of DKK 2,847 million. Pro forma r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items include adjustments relating to acquisitions and divestments estimated by local ISS management at the time of acquisition and divestment or actual results wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available. The estimates are based on unaudited financial information. 3.4 Divestments, assets held for sale and discontinued oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ations 3.4.1 DivestmentsIn 2022, the strategic divestment pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogramme was successfully completed as we divested our activ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ities in three countries in the first half of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, i.e. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan, Russia and Portugal, as well as two non-core business units, i.e. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aste Management in Hong Kong and Damage Control in the UK.In November 2022, we also signed an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee-ment to divest our activities in Brunei – the last country included in the progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme. At 31 December 2022, Brunei was therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the only remaining country classified as held for sale and discontinued operations. The divestment was subsequently completed on 9 February 2023.Going forward, we will assess the str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategic rationale and fit of our business activities on an ongoing basis as part of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s ordinary performance re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>views. As a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult, we may identify new non-cor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e activities to be divested from time to time.Profit or loss impactIn 2022, our divestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme resulted in recognition of a net gain in the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss of DKK 201 million (2021: DKK 591 million) of which DKK 82 million were pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses (see note 1.4) and DKK 119 million were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations.Annual Service <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Excludedre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venueEmployees1)(number)Company/activity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span>Countrytypefrom P/L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Interest(DKKm)Waste Management <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span>Hong Kong<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>echnical<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>February<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 134 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 232 ISS Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Country exit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 2)ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>Country exit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 2)Damage Control<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls61 ws7f">UK<span class="_ _161"> </span></span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>echnical<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>May<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 91 ISS Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span>Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>Country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 2)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b8"> </span> 1,157 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 8,122 1) Unaudited2) Presented as discontinued operationsDivestment impact(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 190 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 377 Customer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 5 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 337 Current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span> 325 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 504 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> (24)(43)Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> (24)(134)Current liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> (251)(239)Net assets disposed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 381 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 807 1)Gain/(loss) on divestment, net 168 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 666 Divestment costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span> 128 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 175 Consideration r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 677 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,648 Cash in divested businesses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (87)(130)Consideration r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 590 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,518 Contingent and deferred consideration<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span> 49 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (130)Divestment costs paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10c"> </span> (52)(197)Divestment of businesses (cash flow) 587 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,191 1) In addition, DKK 33 million was recognised in Other comprehensive income related to recycling of accumulated for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign exchange adjustments on country exitsSubsequent divestments On 9 February 2023, the Group completed the divestment of our activities in Brunei (presented as assets held for sale and discontinued operations) with an annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximately DKK 44 million and 548 employees.Apart from the divestment described abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve, the Group signed or completed no divestments from 1 January to 15 February 2023.3.4.2 Assets held for sale1)2021 (DKKm)2022 Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 148 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 165 Current assets <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a5"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 202 Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 32 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 515 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 36 Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 244 Liabilities held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 280 1) Includes Brunei.2) Includes Brunei, Portugal, Russia and T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan.3.4.3 Discontinued operations Profit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>2021Revenue <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b9"> </span> 385 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,231 Expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> (372)(1,194)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span> 13 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 37 Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 119 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 116 Goodwill impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (36)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span> 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 117 Financial income/ (expenses), net <span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 1 Net profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 118 Income tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (1)(17)Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 131 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 Earnings per share, DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _11c"> </span> </span>Basic earnings per share<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0">0.7<span class="_ _156"> </span>0.6</span>Diluted earnings per share<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>0.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>0.5Cash flows(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>2021Operating activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span> 23 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 86 Investing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> (70)(156)Financing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (16)The total net divestment gain of DKK 119 million was mainly related to T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>aiwan and Portugal. Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>viously recognised in equity had a positive impact on the net gain of DKK 33 million (2021: DKK 7 million). Discontinued <span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span>oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ations <span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0"> </span>– presented in separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate profit or loss line2022<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Brunei</span> Brunei<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Br</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">azil</span> Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Russia</span> Russia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">aiw</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">an</span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hailand</span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Brunei</span> Brunei<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Br</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">azil</span> Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Russia</span> Russia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">aiw</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">an</span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">C</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">z</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ech R</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">epublic</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hailand</span> Czech Republic<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Hungar</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">y</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Chile</span> Hungary<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hilippines</span> Philippines<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">R</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">omania</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span> Romania<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Slo</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">v</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">enia</span> Slovenia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Slo</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">v</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ak</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ia</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">S</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">w</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">eden</span> Slovakia Accounting policyDivestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">Gain or loss on disposal of an opera-</span></span>tion that is part of a CGU includes a portion of the related goodwill allocated to that C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Goodwill related to the disposed oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is measured based on the fair value of the disposed operation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elative to the fair value of the entire C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU.Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5b"> comprise non-current assets </span>and disposal groups held for sale. Liabilities held for sale are those dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly associated with the assets held for sale and disposal groups. Immediately befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e classification as held for sale, they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in accordance with the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policies. Thereafter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, they are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at the lower of their carrying amount and fair value less costs to sell. Any impairment loss is first allocated to goodwill, and then pro r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ata to remaining assets, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept that no loss is allocated to inventories, financial assets, deferred tax assets or employee benefit assets, which continue to be measured in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s account<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing policies. Once classified as held for sale, assets are not amortised or depreciated.Impairment losses on initial classification as held for sale, and subsequent gains and losses on remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss and disclosed in the notes. Assets held for sale are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in separate lines of the statement of financial position and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not restated. A disposal group is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">discontinued<span class="ff5"> </span></span>operations<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> if it is a geogr<span class="_ _0"/>aphical area, i.e. a C<span class="_ _0"/>GU </span>(country), that either has been disposed of, or is classified as held for sale. Discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately as Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restated. Cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating, investing and financing activities together with cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om continuing operations, but separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately specified in this note.4 Capital structur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>eIn 2022, we achieved our financial turnar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ound target, completed our strategic divestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme and secured str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w and cash generation. Our financial foundation was strengthened and financial le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verage ended at 2.6x – well below the target of belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w 3x b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the end of 2022. At our Capital Markets Day in November 2022, updated capital allocation priorities were an-nounced. ISS will stringently allocate capital by fulfilling four clear ambitions in prioritised order:1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>Maintaining investment grade rating and financial lever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>age target of 2.0-2.5x pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o forma EBITDA2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>Annual dividend pay-out ratio of 20-40% of adjusted net profit3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>Value-creating investments in the form of acquisitions 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>Distributing excess cash thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ough share buyback progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammesThe Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors will at the annual general meeting propose a dividend for 2022 of 20% of adjusted net profit corr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponding to a total of DKK 390 million or DKK 2.1 per share. Financial risks We ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e exposed to financial risks, mainly liquidity and currency risk. Risk is a natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al part of our business activities and a condition for being able to create value. Ho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, through effective risk management, risks are monitor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and mitigated to an acceptable level with a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emaining low impact on the consolidated financial statements. Debt maturities We have no unaddr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>essed material debt maturities until 2024 onwards and no financial co<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venants in our capital structure (e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept for certain co<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venants applying to the local T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish loan facility).Financial risk e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureLo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w Debt maturity pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofileDKKbn9.79.74.53.63.72027<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"/>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"/>2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"/>2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"/>2023Revolving Cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit Facility (undrawn)EMTNs1<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Net debt and financial le</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ver</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Net debt and financial le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verageDKKbn153.8122.43.02.6126906(6)(11.7)3(12)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"/>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"/>2020<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"/>2019<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bb"/>2018Net debtFinancial lever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>agePr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oposed dividends 20221)20%<span xmlns="http://www.w3.org/1999/xhtml" class="ff3 fs36"><span class="ff6 fs3 fc2">of adjusted net profit</span></span>1) See 8.5, Definitions, p. 1064.1 Equity 4.1.1 Share capital At 31 December 2022, ISS’s shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capital comprised a total of DKK 185,668,226 shares (2021: 185,668,226) with a nominal value of DKK 1 each. All shares wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e fully paid and freely transfer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>able. ISS has one class of shares, and no shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es carry special rights. Each share gives the holder the right to one vote at our general meetings. Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es('000)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span>185,668<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 185,668 Average number of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares(938)(970)Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (basic)184,730<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 184,698 Average number of PSUs and RSUs expected to vest<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>2,513<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>1,305Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (diluted)187,243<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>186,003Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es is calculated for the purpose of the calculation of EPSs. The calculation of average number of diluted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cludes a total of 1,244,928 (2021: 1,714,684) PSUs and RSUs which are not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to vest.4.1.2 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve(DKKm)At 1 January 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _130"> </span>Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of subsidiaries (ISS's shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eRecycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country exits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span>Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _143"> </span>Fair value adjustments of net investment hedges, net of taAt 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span>4.1.3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>2021Purchaseprice (DKKm)Number<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>NumberAt 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> 191 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>970,082<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>970,082Settlement of vested PSUs(6)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>(31,739) - At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>185<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>938,343<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>970,082ISS holds treasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es for the purpose of covering obligations under e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xisting share-based incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes. At 31 December 2022, treasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es equaled 0.5% of the share capital. Hedging<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal (152)(1,294)(1,446) - (45)(45) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> (33)(33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 403 (33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> (33) (185)(969)(1,154)4.1.4 Proposed dividends In 2022, we reached our financial le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verage<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> target of below 3x, which was the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>er<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equisite for reinstating dividend payments. At our Capital Markets Day in November 2022, we announced our intention to pay stable and increasing dividends to shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders over time.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Our new dividend policy targets a pay-out r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio of appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximately 20-40% of adjusted net profit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> (cf. 8.5, Definitions).At the annual general meeting to be held on 13 April 2023, the Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors will propose a dividend for 2022 of 2.1 per share of DKK 1 (2021: DKK 0.0 per share), equivalent to DKK 390 million (2021: none) and a pay-out ratio of 20%.Accounting policyRetained earnings<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0"> <span class="ff4 fc3">is the Group<span class="_ _0"/>’s fr<span class="_ _0"/>ee reserves, </span></span>which includes share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium. Share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium comprises amounts above the nominal shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capital paid by shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders when shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued by ISS A/S. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0">comprises foreign ex<span class="_ _0"/>change </span>differences arising fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the translation of financial statements of foreign entities with a functional currency other than DKK as well as fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the trans-lation of non-current balances which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered part of the investment in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities and fair value adjustments of net investment hedges. On full realisation of a for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entity where contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is lost the accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjust-ments are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss in the same line item as the gain or loss. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> The cost of acquisition and pro-</span>ceeds from sale of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in reserve for tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares. Dividends r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived in relation to tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in retained earnings. Proposed dividends<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> ar<span class="_ _0"/>e recognised as a liability </span>at the date when they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e adopted at the annual general meeting (declar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation date). Dividends proposed for the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e shown in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate reserve under Equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. 4.1.5 Other comprehensive incomeAttributable to owners of ISS A/SNon-Retained T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation controllingT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (DKKm)Noteearningsreserve<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otalinterestequity2022Defined benefit plansRemeasurement gain/(loss), defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span>253<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>253(45) 208 Asset ceiling<span xmlns="http://www.w3.org/1999/xhtml" class="_ _155"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustmentsForeign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> (45)(45)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span>(57)(102)Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)(33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)Hyperinflation restatement of equity at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bc"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>411<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 814 Hedging Fair value adjustments of net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>4.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)(43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)Ta<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>xT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax related to the items above<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span> (62) 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (52)9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> (43)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bd"> </span>148<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 292<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> 440 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>318<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 758 2021Defined benefit plansRemeasurement gain/(loss), defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 1,145 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,145 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,145 Asset ceiling<span xmlns="http://www.w3.org/1999/xhtml" class="_ _155"> </span>7.1(1,080) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> (1,080) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> (1,080)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustmentsForeign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (15) 297 Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span> (7)(7) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span> (7)Hedging Fair value adjustments of net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>4.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (191)(191) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (191)Ta<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>xT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax related to the items above<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span> (11) 42 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 31 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 31 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span> 54 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 210 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (15) 195 Development in 2022In 2022, other comprehensive income in-creased b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 563 million mainly as a result of hyperinflation restatement in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey and remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement gain/losses on defined benefit plans. This was partly offset by for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments of foreign entities.4.2 Loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span>2021Issued bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c0"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 14,064 Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c1"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 2,539 Bank loans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> 340 Derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span> 108 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span> 39 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c3"> </span> 16,908 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 16,982 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> 15,945 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 16,094 Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _142"> </span> 963 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> 888 Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _137"> </span> 16,908 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 16,982 1)Cash and cash equivalents and other financial items(5,368)(3,531)Net debt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c5"> </span> 11,540 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 13,451 1) Includes securities of DKK 104 million (2021: DKK 103 million) and the net positive fair value of derivatives of DKK 50 million. Changes in loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wingsIssued Lease Bank Deri va-(DKKm)bondsliabilitiesloans tives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otal 2022At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 14,064 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 16,982 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (14)(86) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (100)Cash flows<span xmlns="http://www.w3.org/1999/xhtml" class="_ _70"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (865)(58) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (923)Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 40 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 40 Lease additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 765 Fair value adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> (108) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>43<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 4 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> (1) 124 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 140 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 108 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> 16,908 2021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 15,537 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 2,565 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 535 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>61<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 18,643 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (131) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (110)Cash flows<span xmlns="http://www.w3.org/1999/xhtml" class="_ _131"> </span> (1,577)(947)(472) - (61)(2,996)Lease additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 859 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 859 Fair value adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 33 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 202 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c7"> </span> 110 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 35 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 239 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 384 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 14,064 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> 16,982 Financing fees At 31 December 2022, accumulated financing fees amounted to DKK 57 million (2021: DKK 79 million). The decrease compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to last year was due to ordinary amortisation, which was recognised in financial e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses, amounting to DKK 22 million (2021: DKK 28 million). No new financing fees were capitalised in 2022.Fair value At 31 December 2022, the fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings was DKK 15,751 million (2021: DKK 17,441 million). The fair value of bonds was based on the quoted market price on the Luxembourg Stock Exchange and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 1 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. For the remaining loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings, fair value is in all material respects equal to the nominal value as illustrated in 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk. Accounting policyIssued bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>bank loans <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">are r<span class="_ _0"/>ecognised </span>initially at fair value net of directly attributable transaction costs and subsequently at amortised cost using the effective interest method. Any difference between the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceeds initially received and the nominal value is recognised in Financial expenses o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the loan. At the date of borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing,<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> financing fees</span> are recognised as part of loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings and subsequently amortised over the term of the loan and recognised in Financial e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses. Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> At the commencement date, the </span>Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognises lease liabilities at the present val<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ue of the lease payments to be made over the lease term. Lease payments include fixed payments less any incentive payments, variable lease payments that depend on an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, e.g. when a mini<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>mum indexation is applied, and amounts e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be paid under residual value guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees. Lease payments also include the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercise price of a pur<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>chase option reasonably certain to be e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised by the Group and payment of penalties for terminating a lease, if the lease term reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>er<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>cising the option to terminate. The present value is calculated using the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s incremental borrowing rate if the inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate implicit in the lease is not readily determinable. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the lease liability is measured at amortised cost using the effective interest meth-od. The liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a modifica-tion, a change in lease term or a change in the assessment to purchase the underlying asset. Also, the liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a change in future lease payments (e.g. a change in an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate) or due to a change in the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s estimate of the amount expected to be payable under a residual guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antee. 4.3 Financial income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>2021Interest income on cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _de"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 Monetary gain on hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> - Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (301)(299)1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities (82)(69)Bank fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span> (50)(52)Commitment fee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span> (43)(61)1)Amortisation of financing fees (non-cash)(22)(28)Net interest on defined benefit obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span> (17)(17)Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span> (32)(30)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange losses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span> (49)(51)Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (90)Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> (596)(697)1) Measurement basis amortised cost.Monetary gain on hyperinflation restatement related to the implementation of IAS 29 "Finan-cial Reporting in Hyperinflationary Economies", cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>comprised mainly interest on issued bonds and was in line with 2021. Repurchase of EMTNs in December 2021 and lower inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses due to an interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022, cf. 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk, wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset by increased inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to a local T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish facility follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing the acquisition in 2021.Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> in 2021 r<span class="_ _0"/>elated </span>to the repur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chase of EUR 200 million of the total outstanding EUR 500 million EMTNs maturing 2024. 4.4 Financial risk management The Group is e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposed to a number of financial risks arising from its oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating and financing activi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ties, mainly interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate risk, liquidity risk, currency risk and credit risk. It is management’s assessment that the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to these risks is lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The Group has not identified additional financial risk exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es in 2022 compared to 2021.Financial risks are managed centr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally by Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury based on the Financial Policy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, which is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>viewed and appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved annually b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the Board of Directors. Exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e to credit risk on tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected credit losses is ho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wever managed locally in the operating entities, cf<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 2.1, T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables and cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit risk. It is the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> policy to mitigate risk exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e derived from its business activities. Group policy does not allo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w tak-ing speculative positions in the financial markets.On an ongoing basis the Group considers whether the financial risk management approach appropriately addr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esses the risk exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es.Through our risk management pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures, financial risks are monitor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and reduced to an acceptable level.An overvie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of financial risks and impact assessment at 31 December 2022 is pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided to the right. The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s objectives and policies for measuring and managing risk exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are explained in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective notes. Type<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span>Risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>Basis for assessment at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>NoteCredit risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls14 ws2c">L<span class="_ _1d"/>ow<span class="_ _49"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc2">• <span class="_ _30"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">Not past due on trade r<span class="_ _0"/>eceivables is around 90% </span>2.1(aging analysis)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Expected credit losses on trade r<span class="_ _0"/>eceivables ar<span class="_ _0"/>e less </span>than 2% of gross r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables (credit r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atings)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The Group tr<span class="_ _0"/>ansacts only with financial institutions </span>with a credit r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating of at least A- (cash and cash equivalents)Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls14 ws2c">L<span class="_ _1d"/>ow<span class="_ _49"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc2">• <span class="_ _30"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">82% of the Group<span class="_ _0"/>'s bank loans and bonds carried </span>4.5fixed r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates (2021: 98%)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Duration of gr<span class="_ _0"/>oss debt (fixed-r<span class="_ _0"/>ate period) 2.9 </span>years (2021: 4.3)Liquidity risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls14 ws2c">L<span class="_ _1d"/>ow<span class="_ _49"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc2">• <span class="_ _30"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">No short-term maturities of debt</span>4.6• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Diversified funding portfolio of debt (bonds and<span class="_ _1d"/> </span>bank loans)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _ce"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws29">No financial covenants in our main Group facilities (cer<span class="ls0 ws0">-</span></span>tain covenants apply to the local loan facility in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey)Currency risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls14 ws2c">Low<span class="_ _1d"/></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4"> <span class="_ _18e"> </span><span class="ff5 fc2">• <span class="_ _30"> </span></span>The Group benefits from a natur<span class="_ _0"/>al hedge in </span>4.7having income, costs and investments in the same functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, country-by-country• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">97.6% of the Group'<span class="_ _5"/>s loans and borrowings </span>(external) denominated in EUR (2021: 97.7%)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">78.4% (2021: 78.8%) of the Group’<span class="_ _0"/>s external </span>borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings were denominated in EUR, including net investment hedges4.5 Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ate risk Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ate risk– low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureInterest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate risk arises from the possibility that changes in interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates will affect future cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws or the fair value of finan-cial instruments. Exposure r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to bank loans, bonds or interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swaps with floating interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates. Risk management policy• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At least 50% of the Group’<span class="_ _5"/>s bank loans </span>and issued bonds must carry fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly or through derivatives• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Duration of gr<span class="_ _0"/>oss debt (fixed-r<span class="_ _0"/>ate period) </span>shall be 2-6 years Mitigation• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The fixed/floating r<span class="_ _0"/>atio and gross debt </span>duration (fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed-rate period) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured on a monthly basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Interest r<span class="_ _0"/>ate swaps (fair value hedge) are </span>used to manage the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on gross debtLoans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>2021FiefloNominal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Nominal Carrying Carrying in(DKKm)interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>Currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>MaturityvalueamountamountIssued bonds (fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate)EMTNs (EUR 300 million)2.125%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2,231 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 2,229 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,226 EMTNs (EUR 500 million)1.250%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3,718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 3,594 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 3,695 EMTNs (EUR 500 million)0.875%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3,718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 3,700 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 3,695 EMTNs (EUR 600 million)1.500%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2027<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,462 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 4,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,448 14,129 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 14,064 Bank loans (floating interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate)Loan facility T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cf"> </span> TLFREF <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> TRY <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 192 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 201 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 300 Bank loans and over<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>drafts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> Multi <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 162 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 40 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 340 Fair Recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Negative value, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> profit (DKKm)fair valuenetor lossMaturityFair value hedge<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2025In May 2022, ISS entered into an inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate swap in order to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>educe the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on our gross debt. A principal amount of EUR 300 million has been swapped from a fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate to a floating rate. The fair value adjustments recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss at 31 December is disclosed above. Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate sensitivity An increase in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates of 1%-point, with all other variables held constant, would have decreased net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit by DKK 26 million (2021: decreased b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 4 million). The increase in inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate sensitivity is a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult of the interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022.The estimate was based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s floating<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> rate loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings, i.e. disr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egarding cash and cash equivalents, as the level at 31 December is typically the highest in the year and thus not a repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentative for the purpose of this analysis. Loan portfoliovs. – fixed vs. floating inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates ng <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">est r</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ates</span>202282% (98%) Fixed18%(2%) FloatingAccounting policyThe interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap qualifies as a fair value hedge as the risk being hedged is the possible change in the fair value of a recognised liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The carrying amount of the hedged item is adjusted for fair value changes attributable to the risk being hedged and changes are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss.4.6 Liquidity risk Liquidity risk – low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureLiquidity risk results fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s potential inability or difficulty in meeting the contractual obligations associated with its financial liabilities due to insufficient liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Risk management policy• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain an appropriate le<span class="_ _0"/>vel of short- </span>and long-term liquidity reserves (liquid funds and committed credit facilities)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain a smooth maturity profile in </span>terms of different maturities• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain access to diversified funding </span>sourcesMitigation• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Raising capital is managed centrally </span>in Group T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>reasury to ensure efficient liquidity management• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Group T<span class="_ _5"/>reasury monitors the risk of </span>insufficient liquidity on a daily basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Liquidity is transferr<span class="_ _0"/>ed to/from ISS </span>Global A/S, which operates as the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s internal bank• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">For day-to-day liquidity management </span>cash pools have been established in the majority of the local entities4.6.1 Contractual maturities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d2"> </span>Financial liabilitiesCarrying Contractual&lt; 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 1–2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 2–3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 3–4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 4–5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> &gt; 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (DKKm)amountcash flowsyearyearsyearsyearsyearsyears2022Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. lease <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,444 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>15,332<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>539<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>2,512 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>3,914<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>3,861<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>4,506<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> - Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,600 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 578 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 436 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 271 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 370 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade payables and other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal financial liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 20,654 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>21,678<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>5,050<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>3,090<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>4,350<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>4,132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>4,686<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>3702021Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. lease <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,443 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 15,489 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 326 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 311 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,537 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d0"> </span> 3,930 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 3,879 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 4,506 Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,658 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 786 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 561 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 418 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 289 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 197 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 407 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade payables and other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal financial liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 19,384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 20,549 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 3,514 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 872 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,955 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 4,219 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 4,076 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 4,913 The contractual maturities of financial liabilities, based on undiscounted contractual cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws, are sho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wn in the table. The undiscounted contractual cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws include expected inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est payments, estimated based on market expecta-tions at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.The risk implied from the values r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the one-sided scenario of cash outflows only<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other financial liabilities are mainly used to finance assets such as trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment. Current financingThe maturity profile of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s current financing, i.e. issued bonds and bank loans, based on nominal values including any undrawn amounts and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluding interest payments, is illustrated in the chart to the right. Debt maturity profile(DKKbn)9.7<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">10,0</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">7,5</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">5,0</span>4.53.63.7<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">2,5</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">0,0</span>2027<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2023Revolving Credit Facility (undr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>awn)EMTNs4.6.2 Liquidity reserve (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 5,214 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 3,428 Restricted cash <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span> (35)(31)Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7,276 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 7,312 Liquidity reserves<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span> 12,455 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 10,709 Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 1,078 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 1,061 Readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 11,377 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 9,648 Cash and cash equivalent<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> of DKK 5,214 </span>million reflects the str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong liquidity position of the Group. The le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is typically highest at 31 December and not a repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentative level for the rest of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Restricted cash<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> DKK 35 million of the total cash </span>and cash equivalents at 31 December 2022 was placed on blocked or restricted bank accounts due to legal cases and tax-related cir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cumstances. Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Gr<span class="_ _0"/>oup </span>has a EUR 1 billion re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facility maturing in November 2024. In addition to the unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level, local uncommitted credit facilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available in countries, which are not consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed part of the readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. At 31 December 2022, these amounted to DKK 0.9 billion of which DKK 0.2 billion was drawn (2021: DKK 1.1 billion of which all were unused).Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="_ _0"/><span class="ff4 fc3 ls14">Cash is considered r<span class="_ _0"/>eadily </span></span>available for upstreaming to the par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent company (ISS A/S) within five days. In a number of countries, transfer to ISS A/S is assessed to take mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e than five days due to local administrative pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocesses, and thus is not deemed readily available. 4.7 Curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency riskCurrency risk – low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureCurrency risk is the risk that arises fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates, and affects<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s result, investments or value of financial instruments. <span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>The Group gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally benefits from a natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al hedge in having income, costs and invest<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ments in the same functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> country by country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Currency risk therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e predominantly arises fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om funding and investments in subsidiaries.Risk management policy • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">It is Group policy to pool funding activities </span>centrally and fund investments in subsidiar-ies through a combination of inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company loans and equity• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency risk on inter<span class="_ _0"/>company loans is as </span>a main policy hedged against DKK or EUR when exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeds DKK 5 million. Some currencies cannot be hedged within a reasonable price r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ange in which case cor-relation to a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oxy curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency is considered and, if deemed appropriate, pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oxy hedging is applied• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency risk on net investments ar<span class="_ _0"/>e as a </span>main policy hedged against DKK or EUR when annual EBITDA of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant func-tional currency corr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponds to 5% or more of Group EBITD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A up to an amount of 3-5x EBITDA in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency and adjusted as appropriate to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant market entry and exit risk• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Exposure to EUR is monitor<span class="_ _0"/>ed but not </span>hedged due to the fixed r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change policy between DKK/EURMitigation • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency swaps ar<span class="_ _0"/>e used to hedge currency </span>risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external), intercompany balances and long-term receivables (e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Currency exposur<span class="_ _0"/>e on loans and borr<span class="_ _0"/>owings, </span>intercompany balances and cash and cash equivalents is measured at least on a weekly basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Currency swaps (net investment hedges) </span>or debt are used to hedge the curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e to investments in subsidiaries (other than EUR).4.7.1 Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings SensitivityCurrency Currency <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e swapsExposure, Increase <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> Profit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> (DKKm)(nominal)(contractual)netin <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>FX or loss2022EUR/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span> (17,212) 7,333 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> (9,879)1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> (99)USD/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 1,431 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> (1,575)(144)10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> (14)Other/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span> (1,176) 1,774 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span> 598 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> 60 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> (16,957) 7,532 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> (9,425)2021EUR/DKK(17,375)6,864(10,511)1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> (105)USD/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span>1,505(1,639)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10e"> </span>(134)10%(13)Other/DKK(1,173)1,365<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span>192<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span>19T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal(17,043)6,590(10,453)Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity (loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings) A change in rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant currencies, with all other variables held constant, would have impacted profit or loss with the amounts abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve. The analysis is based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s internal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> monitoring of currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, intercompany loans, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal long-term receivables, cash and cash equivalents as well as accrued ro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yalties (Group internal). 4.7.2 Net investment hedgesNet Hedging of Exposure,Average Change <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Fair (DKKm)investmentinvestmentnetpricein fair valuevalue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>Maturity2022GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,699 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,216 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 483 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4f"> </span> 53 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 24 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span>1,146<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 767 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span>379<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (57) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> 1,673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 755 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 918 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (39) 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span>4,518<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,738 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1,780<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d6"> </span> (43) 70 2021GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,492 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span> (100)(18)March 2022USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,093 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 722 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 371 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (60) 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2022CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> 1,847 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,129 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (31)(4)March 2022T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 4,432 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 2,725 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 1,707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> (191)(19)Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity (net investments) A 10% change in the mentioned currencies, with all other variables held constant, would have changed the fair value recognised in Other comprehensive income b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 48 million for GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/>, by DKK 38 million for USD and by DKK 92 million for CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on equity The effect of translation of net assets in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign subsidiaries before the effect of net investment hedges decreased equity b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 102 million (2021: an increase of DKK 297 million) primarily related to T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Switzerland and the UK.Accounting policyDerivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised. 4.7.3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ranslation risk The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on transaction le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is low since income, costs and investments are in the same functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency country by country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on profit or loss In 2022, changes in weighted average e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rates r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulted in an increase in Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 689 million or 0.9% (2021: decrease of 0.6%) and a decrease of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s operating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items of DKK 16 million or 1.0% (2021: decrease of 1.2%).Change in 2021 to 2020 to avg. FX rates<span xmlns="http://www.w3.org/1999/xhtml" class="fc0">)</span>20222021GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d8"> </span> 0.8% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 3.2% CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 7.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (1.2)%USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"> </span> 12.6% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (3.8)%AUD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 3.9% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 4.8% NOK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 0.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 5.1% SEK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> (4.5)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3.1% TRY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> (40.8)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> (22.9)%EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 0.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (0.2)% ( ) = Weakened against DKK.Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity A 10% change (EUR: 1% change) in rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant currencies, with all other variables held constant, would have impacted re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items with the amounts belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit (DKKm)Revenuebefore other itemsGBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>984<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>40USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>625<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>31CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>573<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>42AUD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span>462<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>33NOK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 31 TRY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>319<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>24SEK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>298<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>16EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>240<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span> 9 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span> 1,264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d7"> </span> 60 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> 5,167 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 286 <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">curr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ency</span>Revenue b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency76.5DKKbn31% EUR13% GBP8% USD8% CHF6% AUD5% DKK4% NOK4% TRY4% SEK17% Other% of Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue5 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>axOur commitmentISS is committed to comply with applicable rules and regulations in the countries wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e we op-erate and to paying applicable tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es accurately and in a timely manner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. We take a compliant and transpar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent approach to tax and tax planning, and we do not tolerate e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vasion of income taxes, payroll tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es, social charges etc. For the benefit of society<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, our placemakers and customers, we support governmental and industry specific initiatives that introduce tighter controls and sanctions to ensur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e that compa-nies in our industry play by the rules.The right balanceWe ackno<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wledge that we have an obligation to protect the inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests of our shareholders. By managing and planning tax payments effec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, we ensure a consolidated competitive effective tax rate and strive to limit double taxation to the extent possible.Our approach to tax risksISS has a very low toler<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance for tax risks. We continuously monitor and mitigate tax risks to the extent possible. No aggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>essive tax models are, or will be, used to optimise our tax position. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ransfer pricingT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansactions between Group companies ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e conducted on market terms (arms’ length principles) and in accordance with curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent OECD guidelines for setting internal transfer prices. Cross-bor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der transactions mainly comprise r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oy-alty payments, management fees and financing.In general, tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer pricing is assessed to be the tax area with highest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to the ISS Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup and transfer pricing may be subject to very complex tax audits.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>ax payments in 2022In 2022, tax paid amounted to DKK 422 million (2021: DKK 528 million) equal to a cash tax rate of 17.2%. Payments were positively impacted b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y timing of prepayments.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax payments included corporate income tax payments due in 2022 including CV<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AE (France), state taxes, and withholding tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es. Withholding taxes ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e reported as paid tax in the country bearing the cost. In addition to payment of corporate income tax-es, ISS contributes with payroll tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (including social charges) and V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>T in the countries where we operate.paymentsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/>ax payments422DK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Km15%Australia12%Switzerland8%US8%Norway8%Belgium7%Mexico6%Chile6%Sweden5%Denmark25%OtherT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/>ax policyDECEMBER 2<span xmlns="http://www.w3.org/1999/xhtml" class="ls6a ws85">022<span class="fc3 ls0 ws0"> </span></span>ISS Group <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Tax <span xmlns="http://www.w3.org/1999/xhtml" class="ls6b ws86">Policy</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> </span>PEOPLE MAKE <span xmlns="http://www.w3.org/1999/xhtml" class="ls6c ws88">PLACES</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3 ws0"> </span>The ISS tax policy can be found <span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1">here</span>5.1 Income taxIncome tax in profit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>2021Current tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> 538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 486 Deferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _131"> </span> (89) 46 Prior year adjustments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span> (8)(23)Income tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span> 441 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>509Development in effective tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ateIn 2022, the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s effective tax rate decreased to 18.0% from 48.7% in 2021. Compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the statutory income tax rate of 22% in Denmark, the effective tax rate was mainly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>educed by the follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing three factors; r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elease of valuation allowance on deferred tax assets, divestment gains (non-tax<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>able) and hyperinflation restatement in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.In 2021, the effective tax rate was negatively impacted by r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised valuation allowances on deferred tax assets, goodwill impairment in France (non-tax deductible) and other non-tax- deductible costs, mainly interest limitation.Effective tax rate (ETR) Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4c"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span>2021Statutory income tax rate, Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d9"> </span> 22.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span> 22.0 % Foreign tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate differential, net(0.3)% (14.4)% T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal 21.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 7.6 % Non-tax-deductible expenses less non-taxable income (2.1)% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>8.5 % Non-tax-deductible impairment(0.0)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 12.1 % Prior year adjustments, net(0.3)% (2.2)% Change in valuation of tax assets, net (2.2)% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span>17.4 % Changes in tax rates<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>0.4 % (0.7)% Hyperinflation(1.6)% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>0.0 % Other taxes <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15"> </span>2.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 6.0 % Effective tax rate18.0 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>48.7 % Statutory <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> income Main countriestax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span>2021Australia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>30.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>30.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>30.2 % 2)Denmark (incl. HQ)22.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>27.0 % (7.1)% Finland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span>20.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>24.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>25.9 % 1) 2)France 25.0% (46.0)%(10.9)% 1) 2)Germany 30.3% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>40.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>0.0 % Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>22.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>20.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>22.6 % Spain<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>25.0% (18.9)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>21.9 % Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>18.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>18.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>7.5 % UK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>19.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>17.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d9"> </span>122.7 % 3)US 21.0% (104.2)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>21.4 % 1) Profit before tax was negative in 2022.2) Profit before tax was negative in 2021.3) Based on low profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e tax in 2022. Foreign tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate differential, net <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">was negligible </span>in 2022, whereas 2021 was impacted b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y tax losses in countries with a higher corporate income tax rate than in Denmark, most significantly Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Non-tax deductible expenses less not-tax-able income<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised various income and </span>expenses acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss the Group. In 2022, non-tax-able divestment gains in Hong Kong and the UK impacted positively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, partly offset by the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring negative impacts from Denmark due to inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est limitation and withholding taxes without cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit relief as well as the tax cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit CICE in France.Non-tax-deductible impairment <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">in 2021 related </span>to goodwill impairment in France.Prior year adjustments, net <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">related to adjust-</span>ment in the final tax returns and wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e insignif-icant in 2022. In 2021, the adjustment mainly related to the UK.Change in valuation of tax assets, net <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">in 2022 </span>related to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elease of valuation allowances on tax losses in Spain, the Netherlands and Germany partly offset by an incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in France. In 2021, the change mainly related to Germany and France.Changes in tax rates <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">in 2022 was driven b<span class="_ _0"/>y </span>changed income tax rates in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey from 23% to 20% (effective from 2023) and in the UK fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om 19% to 25% (effective from April 2023). In 2021, the change was mainly driven by a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eduction of the corporate tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate in France fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om 33% to 25% over the period 2018-2022.Accounting policyIncome tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprises current tax and changes in </span></span>deferred tax, including effects fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in tax rate, and is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss or other comprehensive income.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax receivables and payables<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised in </span>the statement of financial position as tax comput-ed on taxable income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, adjusted for tax on taxable income prior years and tax paid on account.Hyperinflation <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">related to implementation of </span>IAS 29 “Financial Reporting in Hyperinflationary Economies”, cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, including the positive impact from change in local tax rules leading to step-up in tax bases of assets due to hyperinflation.Other taxes <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">mainly comprised withholding tax, </span>e.g. in Denmark, and Cotisation sur la Valeur Ajoutée des Entreprises (CV<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>AE) in France.5.2 Deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed taxDeferred Deferred tax assetstax liabilities(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span>2021T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax losses carried forward<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1da"> </span>482<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 336 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> - Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1db"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 413 Brands<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1dc"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 350 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 350 Customer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1dd"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 150 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 141 Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8"> </span> 220 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 139 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span>425<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 381 Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions and other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1de"> </span> 977 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 1,062 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>685<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 563 Pensions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1df"> </span> 126 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 158 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 62 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 22 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax losses in foreign subsidiaries under Danish joint taxation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _7d"> </span> - <span class="_ _5b"> </span> 23 <span class="_ _5b"> </span> 23 </span>Set-off within legal tax units and jurisdictions(904)(917)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>(904)(917)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e0"> </span>912<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 790 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>1,178<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>976Development in deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed tax (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>2021Liabilities, net at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> 186 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 204 Prior year adjustments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> 32 (96)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (22)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (24)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span> 62 - Acquisitions and divestments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 20 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 72 Other comprehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 53 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 11 Reclassification to Assets/ (Liabilities) held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 24 </span> (27)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax on profit before tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (89)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 46 Liabilities, net at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>266<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 186 Prior year adjustments, net <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0">mainly related </span>to adjustment of tax deductions (temporary differences) in the final tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns.Acquisitions and divestments, net<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> in 2022 </span>related to the acquisition of Livit FM Services A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>G in Switzerland (2021: Rönesans Facility Manage-ment Company in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y).Other comprehensive income <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprised tax on </span>actuarial gains on pensions.Unrecognised deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ed tax assets At 31 December 2022, the Group had unr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ec-ognised deferred tax assets which comprised tax losses carried forward and other deductible temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences of DKK 1,814 million (2021: DKK 1,871 million) primarily relating to Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and the Netherlands. Unrecognised tax losses can be carried forwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d indefinitely in the individual countries, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for China, where tax losses can be carried forwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d for 5 years.Uncertain tax positions Uncertain tax positions include ongoing disputes with tax authorities in certain jurisdic-tions and have been pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided for in accordance with the accounting policies. Management believes that the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovisions made ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e adequate. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the actual obligations may deviate as they depend on the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult of litigations and set-tlements with the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tax authorities. The final outcome of some of the ongoing disputes is expected to be determined in 2023-2024.Accounting policyDeferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is pr<span class="_ _0"/>ovided using the liability </span>method on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences between tax bases of assets and liabilities and their carrying amounts. Deferred tax is not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences relating to goodwill which is not deductible for tax purposes and other items where tempor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ary differences, apart fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om in business combinations, arose at the time of acquisition without affecting either Net profit or taxable income. Where alternative taxation rules can be applied to determine the tax base, deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to manage-ment’s intended use of the asset or settlement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to the taxation rules and tax rates in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective countries applicable at the reporting date when the deferred tax becomes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent tax. Deferred tax assets, including the tax base of tax loss carryforwards, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets at the expected value of their utilisation, 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 and jurisdiction.Deferred tax assets and liabilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset if the Group has a legal right to offset these, intends to settle these on a net basis or to realise the assets and settle the liabilities, simultaneously<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Significant accounting estimates and judgementsDeferred tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">r<span class="_ _0"/>elating to tax losses carried </span></span>forward ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised, when management assesses that these can be offset against positive taxable income in the foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. The assessment is made at the reporting date taking into account the impact from limitation in inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est deductibility and local tax restrictions in utilisation of tax losses. The assessment of future taxable in-come is based on financial forecasts appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management and expectations on the oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ational development, mainly in terms of organic gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth and operating margin.Management made a reassessment of the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obabili<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-</span>ty that future taxable pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit will be available in the foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e against which the Group can uti<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>lise tax losses (i.e for current year and those carried forward fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om prior years (valuation allowances). The assessment is based on the cash flow pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojections made for the purpose of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> tests, see 3.2, Impairment tests, and repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esents management’s best estimate, but is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e asso<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ciated with significant uncertainty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Uncertain tax positions<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">As part of operating a </span></span>global business, disputes with tax authorities around the world may occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Management peri-odically evaluates positions taken in tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns with respect to situations in which applicable tax regulation is subject to interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etation and consid-ers whether it is probable that a tax authority will accept an uncertain tax treatment. The possible outcome of uncertain tax positions are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed based on management’s best estimate of the amount requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and rec-ognised in deferred tax or income tax depending on the tax position. 6 Remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ationExecutive r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation objectiveAt ISS, remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is based on responsibilities, competencies and performance and is designed to be competitive, affordable and in line with market practice of compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>able listed companies.Remuneration elements Remuneration of the members of the EGM consists of a fixed element and certain variable elements.The annual base salary (fixed element) shall bein line with market practice of compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>able listedcompanies and is based on the individual mem-bers experience, qualifications, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponsibilities and performance.In addition to the annual base salary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the mem<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>bers of the EGM receive variable r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emuneration, which is based on performance and accountabili<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ty in relation to established objectives, both short and long-term, as well as the over<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>all performance of ISS in alignment with the shareholders.In addition, the members of the EGM are granted customary non-monetary benefits such as a company car<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, insurances, communication and IT equipment, etc., and certain members participate in pension plans.Share-based payments T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o drive delivery of short- and long-term financial<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> results, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etention of leaders and alignment to share-holder value creation, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has implemented two types of share-based incentive pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogrammes:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">a long-term incentive progr<span class="_ _0"/>amme (LTIP)</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">a special incentive progr<span class="_ _0"/>amme (SIP)</span>Under the <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">LTIP</span>, which has been in place since 2014, performance share units (PSUs) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e granted annually to plan participants consisting of around 120-150 senior leaders. Each PSU entitles the holder to receive one shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e at no cost after three years, subject to achie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement of certain performance criteria (EPS and TSR) and service objectives. Performance criteria of the latest two vested progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes, LTIP 2018 and LTIP 2019, wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not achieved and the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y vested at 0%. In March 2023, the L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP 2020 will vest at 32% following the achie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement of the turnaround targets in 2022.Under the <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1 ws7">SIP</span>, restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (RSUs) are gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anted to the participants consisting of 43 senior leaders. Each RSU entitles the holder to receive one shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e at no cost, subject to achieve<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment of individual service or performance criteria upon vesting in either 2022 or 2023. In 2022, based on achievement of individual performance criteria, the SIP 2020-2022 vested at 83%. In March 2023, the SIP 2020-2023 will vest at 100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. After these vestings, no further RSUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e outstanding, and the progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes will lapse.Remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation elements 2022<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">EGMB</span>EGMB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e1"> </span>21%<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">71 </span>45%<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">DKKbn</span>34%<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">EGMB</span>Base salaryBonusShare-based payments (LTIP and SIP)Corporate<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">EGMB</span>16%<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">71 </span>53%<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">DKKbn</span>31%Incentive pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogrammesVesting of L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP%<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">%</span>100<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">100</span>75<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">75</span>50<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">50</span>25<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">25</span>32%6%0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e2"/>0%0%0<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">0</span>LTIPLTIPLTIPLTIPLTIP201620172018201920201)<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">TSR Danish</span>1) Will vest in March 2023 <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">TSR </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Industry</span>Vesting of SIP%100%<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">100%</span>100<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">83%</span>83%75502501)<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">2020-2022</span>2020-20222020-2023<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">2020-2023</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">TSR Danish</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">TSR Danish</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">TSR </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Industry</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">TSR </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Industry</span>Remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation reportOur <span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1">2022 Remuneration Report</span> is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epared pursuant to the Shareholder Rights Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ective and includes a description of our remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation policy and remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation to the Board and the EGMB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.6.1 Management r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span>The Executive Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management (EGM) com<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>prises the Executive Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management Board (EGMB) and Corporate Senior Officers of the Group. Members of the EGM have authority and responsibility for planning, implementing and controlling the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s activities and are together with the Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors (Board) consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed as the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s key management personnel. 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _132"> </span>2021EGM<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>EGMCorporate Corporate <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> Senior Senior (DKK '000)Board<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>EGMBOfficers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>Board<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>EGMBOfficersBase salary and non-monetary benefits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>8,587<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>15,269<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>49,073<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>8,724<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>21,842<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>39,172Bonus progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>11,572<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>28,885<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span>12,007<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>18,739 1)Share-based payments-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>7,310<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>14,381<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> - (3,794)11,695Sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance pay<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span>14,280<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal remuneration<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span>8,587<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>34,151<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>92,339<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>8,724<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>44,335<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span>69,6061) In 2021, share-based payments to the EGMB included an income of DKK 8 million due to forfeited PSUs and RSUs under the incentive programmes as the CEO Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope left ISS.Remuneration policy is described in the Remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation report which is available <span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ws7">her<span class="_ _0"/>e<span class="ff4 fc3 ls0 ws0">.</span></span>6.2 Shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>e-based paymentsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o drive delivery of short- and long-term financial results, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etention of leaders and alignment to shareholder value cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eation, the Group has implemented two types of equity-settled share-based incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">a long-term incentive progr<span class="_ _0"/>amme (LTIP); and</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">a special incentive progr<span class="_ _0"/>amme (SIP)</span>6.2.1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Long-term incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>amme Members of the EGM and other senior officers of the Group, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e granted a number of perfor-mance share units (PSUs) under the annual L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/>. Upon vesting, each PSU entitles the holder to receive one shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e at no cost. Participants are compensated for any dividend distributed between time of grant and time of vesting. Subject to certain criteria, the PSUs will vest after three years. The vesting criteria ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e total share-holder return (TSR), measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed relative to peer group performance, and earnings per shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e (EPS). For LTIP 2021 and L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP 2022, TSR and EPS weighted 40%, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and the remaining 20% related to service-based objectives. For L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP 2020 and LTIP 2019, TSR and EPS wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e equally weighted. TSR peers are the Nasdaq Copenha-gen OMX C25 and a peer group of compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>able international service companies. Accounting policyThe value of services received in e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange for granted performance-based shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (PSUs) and restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (RSUs) are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the grant date and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in employee costs o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the vesting period with a corresponding incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, as both of the schemes are equity-settled. The fair value of granted PSUs under the long-term incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme is measured using a generally accepted valuation model taking into consideration the terms and conditions upon which the PSUs were gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anted including mar-ket-based vesting conditions (T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Shareholder Return (TSR) condition). On initial recognition, an estimate is made of the number of PSUs and RSUs expected to vest. The estimated number is subsequently re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vised for changes in the number of PSUs and RSUs expected to vest due to non-market based vesting conditions.TSR performance criteriaThreshold<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span>Vesting<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>TSRBelow 0 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 ls3b">Below median <span class="ls0"> </span></span>thresholdof peersThreshold<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff3e">25 %<span class="_ _d0"> </span></span>At median of peersMaximum<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff3e">100 %<span class="_ _d0"> </span></span>At upper quartile of peers or betterFair value and profit or loss impact<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24">L<span class="_ _0"/>TIP 2019<span class="_ _173"> </span>LTIP 2020<span class="_ _76"> </span>LTIP 2021<span class="_ _173"> </span>LTIP 2022</span>PSUs and participants (number)Maximum PSUs at initial grant date<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 928,367 <span class="_ _162"> </span> 1,785,896 <span class="_ _173"> </span>1,349,527<span class="_ _76"> </span> 1,509,951 </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal PSUs granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span>813,090<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,473,659 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 1,316,818<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,353,855 Participants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _109"> </span> 142 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>145<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 161 Fair value <span xmlns="http://www.w3.org/1999/xhtml" class="ff4">(DKKm)</span>PSUs expected to vest at initial gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ant date<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>94<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 98 PSUs expected to vest at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>53<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 75 Profit or loss impact <span xmlns="http://www.w3.org/1999/xhtml" class="ff4">(DKKm)</span>Recognised in the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f5"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>22<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 25 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 24 Not yet recognised (PSUs expected to vest) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 30 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 57 Assumptions at the time of grant 1)Share price, DKK 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>98<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span>111<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 117 2)Expected volatility26.6%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>29.1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>47.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>47.5%Expected life of grant, years <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 3 2)Risk-free inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate(0.3)%-2.7% (0.4)%-1.9% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span>(0.6)%-0.9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>(0.1%)-1.5%1) Based on five-day average. 2) Based on observable market data for peer groups.Vested pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogrammes In March 2022, the <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">L<span class="_ _0"/>TIP 2019<span class="ff4 fc3"> progr<span class="_ _0"/>amme vested. </span></span>Based on the annual EPS and TSR performances for 2019, 2020 and 2021, 0% of the granted PSUs vested. After this vesting, no further PSUs are outstanding under the L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP 2019 and the Furthermore, in Mar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ch 2023, the PSUs granted under <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1 ws0">LTIP 2020 </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0">will vest with 32% based on the </span>annual EPS and TSR performances for 2020, 2021 and 2022. Outstanding PSUsEGMOtherCorporateSenior LTIP 2019 (vested in 2022)EGMBSenior OfficersOfficers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalOutstanding at 1 January 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 42,583 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> 83,015 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 560,451 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> 686,049 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ec"> </span> (35,686)(6,370)(23,034)(65,090)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span> 6,897 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 76,645 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> 537,417 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> 620,959T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span> -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span> 6,643 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> (6,643) - Forfeited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6c"> </span> (6,897)(83,288)(530,774)(620,959)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span>-LTIP 2020 (vesting in 2023)Outstanding at 1 January 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e4"> </span> 132,633 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 177,999 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> 1,129,354 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 1,439,986 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ec"> </span> (72,864) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (104,144)(177,008)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> 59,769 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 177,999 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 1,025,210 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 1,262,978 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (10,382) 10,382 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> -Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _114"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> -(31,586)(31,586)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> 59,769<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 167,617 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 1,004,006 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 1,231,392 LTIP 2021 (vesting in 2024)Granted <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e6"> </span> 201,828 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 176,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 862,373 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 1,240,947 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ec"> </span> (53,531) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (89,652)(143,183)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 148,297 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 176,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 772,721 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,097,764 Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> 11,015 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> 64,856 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 75,871 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span> 9,107 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> (9,107) - Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _114"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> (8,583)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (71,403)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (79,986)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 148,297 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 188,285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 757,067 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,093,649 LTIP 2022 (vesting in 2025)Granted <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e6"> </span> 139,713 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 265,208 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 948,934 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 1,353,855 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span> 8,710 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> (8,710) - Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _114"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> (18,233)(115,516)(133,749)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 139,713 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 255,685 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 824,708 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,220,106 6.2.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Special incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ammes The Group has curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently one Special IncentiveProgr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme (SIP). Corporate Senior Officers (EMG members) and other senior officers of the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e granted a number of Restricted Shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Units (RSUs).Upon vesting, each RSU entitles the holder to receive one shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e at no cost.Subject to individual service criteria, the RSUs will vest after three years.Fair value and profit or loss impactSIP 2020-2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>SIP 2020-2023RSU and participants (number)Maximum RSUs at initial grant date<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e7"> </span> 64,159 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 246,767 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal RSUs granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e8"> </span> 55,263 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 238,489 Participants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e9"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 37 Fair value (DKKm)RSUs expected to vest at initial gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ant date<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ea"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 24 RSUs expected to vest at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1eb"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 23 Profit or loss impact (DKKm)Recognised in the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _149"> </span> 0 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ec"> </span> 8 Not yet recognised (RSUs expected to vest) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ec"> </span> 2 Assumptions at the time of grantShare price, DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ed"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> 101 Expected life of grant, years <span xmlns="http://www.w3.org/1999/xhtml" class="_ _13e"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ee"> </span>3Vested pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogrammes In March 2022, the <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">SIP 2020-2022<span class="ff5"> </span></span>pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogrammevested. Based on individual service criteria, 83% of the granted RSUs vested. After this vesting, no further RSUs are outstanding under the SIP 2020-2022 and the progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme has lapsed.Furthermore, in Mar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ch 2023, the RSUs granted under the <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1 ls1">SIP 2020-2023 </span>progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme will vest 100% subject to achievement of individual service criteria. Outstanding RSUsCorporateOtherSenior SeniorSIP 2020-2022 (vested in 2022)Officers (EGM)Officers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f2"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalOutstanding at 1 January 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span> -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span> 22,296 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 22,296 Granted <span xmlns="http://www.w3.org/1999/xhtml" class="_ _85"> </span> 26,619<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span> 1,783 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> 28,402 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> (6,513)(6,513)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span> 26,619<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span> 17,566<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> 44,185Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 4,565 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 4,565 Forfeited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _84"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> (2,696)(2,696)Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1eb"> </span> (26,619)(19,435)(46,054)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f3"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> - SIP 2020-2023 (vesting in 2023)Outstanding at 1 January 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10e"> </span> 204,223 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 204,223 Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ef"> </span> 26,619 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,888 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 28,507 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span> (12,853)(12,853)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span> 26,619 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span> 193,258 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> 219,877 Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 5,759 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 5,759 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span>10,432<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span> (10,432) - Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> (1,462)(1,462)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span> 37,051 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span> 187,123 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> 224,174 7 Other7.1 Pensions and similar obligations7.1.1 Pension schemesDefined contribution plansThe majority of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s pension schemes are defined contribution plans where contributions are paid to publicly or privately administer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed pension plans. The Group has no further payment obligations once the contributions have been paid. In 2022, contributions amounted to DKK 1,223 million (2021: DKK 1,140 million), corresponding to 84% of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s pension costs (2021: 83%).Defined benefit plans The Group has a number of defined benefit plans where the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponsibility for the obligation towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds the employees r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests with the Group. The largest plans are in Switzerland and the UK accounting for 86% (2021: 86%) of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s obligation (gross) and 97% (2021: 97%) of its plan assets. The plans are primarily based on years of service, and benefits are determined on the basis of salary and position. The Group assumes the risk associated with future de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments in salary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates, inflation, mortality and disability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, etc.The majority of the obligations are funded with assets placed in independent pension funds. In some countries, primarily Sweden, France, T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Hong Kong and Mexico, the obligation is unfunded. For these unfunded plans, obligation amounted to DKK 633 million or 8% of the present value of the gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss obligation (2021: DKK 788 million or 9%).Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> Participants are insur<span class="_ _0"/>ed against the </span>financial consequences of retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement, disabil<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ity and death. The pension plans guarantee a minimum interest cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit and fixed conversion rates at r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etirement and include a risk-sharing element between ISS and the plan participants. Contributions are paid b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y both the employee and the employer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The plans must be fully funded. In case of underfunding, reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very measures must be taken, such as additional financing from the employer or fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the employer and emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees, reduction of benefits or a combination of both. The UK <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Participants are insur<span class="_ _0"/>ed against the </span>financial consequences of retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement and death, and do not pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide any insured disability benefits. The pension plans guarantee a defined benefit pension at retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement on a final salary basis. The majority of the plans does not include a risk-sharing element between ISS and the plan participants.Multiemployer pension plansThe Group participates in multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer pension schemes that by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are defined benefit plans in a few countries. Some funds ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not able to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the necessary information in order for the Group to account for the schemes as defined benefit plans and these schemes are ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efore accounted for as defined contribution plans.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">costs</span>Pension costs1.4DKKbn84%Defined contribution16% Defined benefitSignificant accounting estimatesActuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is determined on the basis of assumptions about the future de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velop<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment in variables such as salary levels, inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates, inflation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>and mortality<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Applied actuarial assumptions vary from country to country due to local conditions. All assumptions are assessed at the reporting date. Changes in these assumptions may significantly affect the liabilities and pension costs under defined benefit plans. The range and weighted average of these assumptions as well as sensitivities on key assumptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in this note.The discount rates used for calculating the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on the market yield of high-quality corporate bonds or government bonds with a maturity appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oximating to the terms of the defined benefit obligations. When the Group participates in multi-emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer pension plans being accounted for as defined con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tribution plans due to unavailability of information, there is a risk that the plans ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not sufficiently funded. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, information on surplus or deficit in the schemes is not available. 7.1.2 Defined benefit obligation2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f5"> </span>2021Present Fair value Present Fair value value of of plan Carrying value of of plan Carrying (DKKm)obligationassetsamountobligationassetsamountAt 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span> 8,625 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 8,997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (372) 8,684 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 7,796 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 888 Current service costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span> 197 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span>197<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>219<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>219Interest on obligation/plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>72<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 55 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 45 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 28 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>17Past service costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>-Recognised in profit or loss <span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> 280 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 55 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 225 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 28 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 236 Actuarial (gain)/loss:<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4"> <span class="_ _19a"> </span> </span> Demographic assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (256) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (256) Financial assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> (1,702) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (1,702)(209) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (209) Experience adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> 490 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 490 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 67 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 67 Return on plan assets <span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (997) 997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 747 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (747)Asset ceiling <span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (43) 43 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (1,080) 1,080 Recognised in other comprehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> (1,205)(1,040)(165)(398)(333)(65)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 214 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (81) 386 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 414 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (28)Acquisitions and divestments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 227 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 219 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 0 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (0)Employee contributions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span> 154 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 154 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - Employer contributions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (207) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 199 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (199)Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> (342)(267)(75)(266)(174)(92)Asset ceiling <span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 43 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span> 1,080 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> (1,080)Reclass. to Liabilities held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (186)(154)(32)Other changes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span> 253 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 651 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (398)75<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>1,506<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> (1,431)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span> 7,953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span> 8,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> (710) 8,625<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 8,997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (372)Recognised in the statement of financial position(DKKm)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5">2022<span class="_ _1a"> </span>2021</span>Carrying amount of defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _130"> </span> (710)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span>(372)1)Accumulated impact from asset ceiling 1,352<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>1,2532)Defined benefit obligation, net 642 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 881 Other long-term employee benefits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>543<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 470 Pensions and similar obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> 1,185 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1,3511) Including a foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustment on the opening balance of DKK 56 million.2) Including an asset of DKK 247 million (2021: DKK 86 million) related to defined benefit plans in the UK. Developments in 2022 Actuarial calculations for 2022 have been ob-tained for all major plans. The actuarial calcula-tions led to recognition of actuarial gains due to increased discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates (financial assumptions) of DKK 1,702 million, mainly in Switzerland and the UK. This was largely offset by actuarial losses of DKK 490 million due to increased salary and inflation expectations (e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xperience adjustments) and loss on plan assets of DKK 997 million, both primarily related to Switzerland and the UK. The net impact on the pension obligation was a gain of DKK 165 million recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-hensive income.In 2021, we saw strong asset r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns and an actuarial gain, which led to a significant increase in the surplus on the major plans in Switzerland. Due to surplus restrictions (ISS does not have access to the overfunding), an incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in the asset ceiling was recognised. In 2022, market conditions for listed shares and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eal estate de-teriorated r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulting in significant losses on plan assets in Switzerland and the UK. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, due to a larger decrease in the pension obligation the asset ceiling has further increased. As such, by the end of 2022, the accumulated impact from the asset ceiling was DKK 1,352 million (2021: DKK 1,253 million).Contributions in 2023The Group e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpects to contribute DKK 322 million in 2023 (2022: DKK 261 million).<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">categories of </span>Plan assetsan assets– major categories8.7DKKbn34% Listed shares19% Property 18% Corporate bonds6% Cash and cash equivalents 2% Government bonds21% Other% of total plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">obligation, </span>Pen<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">r</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">oss</span>– funded vs. unfunded8.0DKKbn92%Funded8%Unfunded<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">obligation, </span>Pen<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">r</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">oss</span>– by country8.0DKKbn75%Switzerland11%UK14%Other7.1.3 Actuarial assumptions2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span>2021Other Other CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span>GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span>EURcurrencies<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">CHF<span class="_ _78"> </span>GBP<span class="_ _35"> </span>EUR</span>currenciesDiscount rates<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>2.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>4.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls20"> 3.70-3.75% <span class="_ _90"> </span></span> 1.0-10.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>0.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 0.35-1.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 0.2-19.3% Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>1.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 0.0-2.65% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 2.56-3.2% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c3"> </span> 0.0-12.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-2.65% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-3.5% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 0.0-15.0% Pension increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>0.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d9"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls5b ws8e"> 2.65-3.15% <span class="_ _19"> </span></span> 0.0-2.15% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-2.2% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>0.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls5b"> 2.65-3.20% <span class="_ _19"> </span></span> 0.0-0.64% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 0.0-2.0% Sensitivity analysis Below the sensitivities r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to significant actuarial assumptions used in the calculation of the defined benefit obligation are illustr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated in terms of estimated increase/(decr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease) in the obligation.The analysis is based on changes in assump-tions, with all other variables held constant, that the Group consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to be reasonably possible at the reporting date.2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span>2021(DKKm)+0.5%(0.5)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls56 ws67">+0.5%</span>(0.5)%Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (334) 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (490) 545 Price inflation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (65) 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (51)Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> (74) 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (4)Pension increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (248) 302 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (85)+1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-1 year<span class="_ _1d9"> </span></span>+1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-1 year</span>Life expectancy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 136 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (133) 212 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (182)Duration The estimated weighted average dur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation of the defined benefit obligation was 9 years (2021: 12 years) and is split into:(Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ears)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>2021Active employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 8 Retired emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 15  1)Deferred vested 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 6 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 12 1) The impact from deferred vested on total estimated weighted average duration is minor due to the fact that deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed vested make up less than 2% of the participants, and do not exist in many of the shorter duration plans.Accounting policyContributions to <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">defined contribution plans</span> are recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs when the related service is pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided. Any contributions outstanding are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other liabilities.Defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Group’<span class="_ _5"/>s net obligation </span>is calculated by a qualified actuary using the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o-jected unit credit method, separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately for each plan by estimating the amount of futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e benefits that employees have earned in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn for their service in the current and prior periods. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value less the fair value of any plan assets is recognised in Pensions and similar obligations. When the calculation results in a potential asset, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ec-ognition is limited to the present value of economic benefits available in the form of future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efunds from or reductions in futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e contributions to the plan. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o calculate the present value, consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is given to applicable minimum funding requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements. Pension costs are calculated based on actuarial es-timates and financial expectations at the beginning of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Service costs are recognised in Employee costs and net interest is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial expenses. Differences between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected development in pension assets and liabilities and the realised amounts at the reporting date ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e designated actuarial gains or losses and recognised in other comprehensive income. When the benefits are changed or a plan is curtailed, the resulting change in benefits that r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to past service or the gain or loss on curtailment is recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs. Gains and losses on settlement is recognised when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The aggregated value of unfunded plans is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-sented as a net liability and the aggregated value of funded plans are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as a net asset. Other long-term employee benefits <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">ar<span class="_ _0"/>e recognised </span>as defined pension plans, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept that actuarial gains and losses are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Employee costs. Other long-term employee benefits comprise jubilee benefits, long-service or sabbatical leave, etc. 7.2 Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yEffective 1 January 2022, the Group has implemented IAS 29 “Financial Reporting in Hyperinflationary Economies” for its subsidiary in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, as the cumulative three-year inflation rate in the country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeded the thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eshold of 100% in February<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.The aim of IAS 29 is to ensure that consolidated financial statements reflect the curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent purchasing power b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">restating reported numbers based on changes </span>in the general price inde<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x; and• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">applying end-of-period ex<span class="_ _0"/>change rates.</span>The translation method as well as r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition and measurement ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e described under accounting policies below<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on the consolidated financial statements The implementation of IAS 29 did not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s profit or loss and cash flow statements and consequently the effect on our three KPIs was immaterial, i.e. organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth (non-IFRS), oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating margin (non-IFRS) and free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w (non-IFRS). How-ever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the restatement for inflation significantly impacted the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s statement of financial position, mainly by incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easing the value of goodwill and customer contracts.Profit or loss The restatement of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue had a net positive impact of DKK 154 million of which DKK 580 million related to the incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in the price index of 21% in 2022. This was partly offset by the impact from r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etranslation to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at 31 December of DKK 426 million.Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items was nega-tively impacted by DKK 29 million, as the inflationrestatement of right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment led to higher depreciation and amortisation of DKK 42 million. This more than offset the net positive impact from inflation restatement and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etranslation.Financial expenses, net was positively impacted by DKK 148 million r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflecting the restatement of non-monetary items for the inflation develop<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment in 2022 and the offset of inflation restate<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment of profit or loss items in the same period.Based on the above, and the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulting negative impact on Income tax of DKK 42 million, Net profit incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased DKK 66 million for 2022.Cash flows The impact on consolidated statement of cash flows was insignificant.Inflation restatementYTDNon-Retrans- T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. monetary Profit<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>lation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> adjust-YTD<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>(DKKm)IAS 29)itemsor loss(YE FX)ments(reported)Profit or loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _7d"> </span> <span class="_ _16f"> </span> <span class="_ _a2"> </span> <span class="_ _11c"> </span> </span>Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f7"> </span> 76,384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 580 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> (426) 154 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 76,538 Depreciation and amortisation(1,475)(48) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 6 (42)(1,517)Other costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f5"> </span> (72,033) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span> (529) 388 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span> (141)(72,174)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2,876<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> (48) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>(29) 2,847 Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span> 58 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> (1) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> (1) 57 Amortisation of customer contracts(59)(12) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 2 (10)(69)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span> 2,875 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (60) 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (30)(40) 2,835 Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fd"> </span> 68 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (40)(1) 139 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 207 Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span> (605) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (18) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (596)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> 2,338 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (8)(4) 108 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,446 Income tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span> (399)(43) 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> (7) (42)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (441)Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om continuing operations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 1,939 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (11) 66 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,005 Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 131 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 131 Net profit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _59"> </span> 2,070 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (11) 66 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,136 Cash flows<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _11c"> </span> <span class="_ _16f"> </span> <span class="_ _a2"> </span> <span class="_ _11c"> </span> </span>Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 2,889 <span class="_ _95"> </span> </span>(48) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (32)(29) 2,860 Depreciation and amortisation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span> 1,475 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 48 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> (6) 42<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> 1,517 Non-cash items related to hyperinflation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (51) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (51)(51)Other cash flow items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span> (1,024) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> 31 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 31 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (993)Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 3,340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> (7)(7) 3,333 Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om investing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> (553) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> (546)Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om financing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (928) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (2)(2)(930)Free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w (non-IFRS) 1,726 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,734 Financial ratios<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _1cf"> </span> <span class="_ _1c7"> </span> </span>Organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth (non-IFRS)7.78%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fs24 ls0 ws0"> - <span class="_ _18a"> </span> - <span class="_ _73"> </span> - <span class="_ _18a"> </span> - <span class="_ _181"> </span></span>7.78%Operating margin<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ffa8 fs47 ls56 ws67">3.77%</span>(0.07)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls56 ws67">0.07%</span>(0.05)%(0.05)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls56 ws67">3.72%</span>Inflation restatementYTDNon-Retrans- T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. monetary Profit<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>lation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> adjust-YTD<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>(DKKm)IAS 29)itemsor loss(YE FX)ments(reported)Financial position<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _11c"> </span> <span class="_ _16f"> </span> <span class="_ _a2"> </span> <span class="_ _11c"> </span> </span>Goodwill <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 19,806 <span class="_ _25"> </span> 644 <span class="_ _18a"> </span> - <span class="_ _73"> </span> - <span class="_ _183"> </span> 644 <span class="_ _69"> </span> 20,450 </span>Other intangible assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 3,246 <span class="_ _25"> </span> 224 <span class="_ _18a"> </span> - <span class="_ _73"> </span> - <span class="_ _183"> </span> 224 <span class="_ _1a9"> </span> 3,470 </span>Right-of-use assets and Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> <span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span> plant and <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f9"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 3,235 <span class="_ _35"> </span> 85 <span class="_ _18a"> </span> - <span class="_ _18a"> </span> - <span class="_ _43"> </span> 85 <span class="_ _1a9"> </span> 3,320 </span>Other assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b3"> </span> 19,765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 19,765 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _65"> </span> 46,052 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span> 47,005 Other comprehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(56) 814 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 814 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 758 Other equity elements<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span> 9,980 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 10,057 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _79"> </span> 9,924 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 891 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 891 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 10,815 Deferred tax liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 1,116 <span class="_ _35"> </span> 62 <span class="_ _73"> </span> - <span class="_ _18a"> </span> - <span class="_ _43"> </span> 62 <span class="_ _1a9"> </span> 1,178 </span>Other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span> 35,012 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 35,012 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equity and liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span> 46,052 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 47,005 Financial position The restatement for inflation incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased goodwill by DKK 644 million and Other intangible assets (cus<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tomer contracts) b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 224 million mainly due to restatement of the fair values carried fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the acquisition of Rönesans in 2021 and the original acquisition when entering T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y in 2005.Right-of-use assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> equipment increased (DKK 85 million) based on assumed average useful lives of 3-5 years. As a result, depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciation and amortisation were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecalcu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-</span>lated, which led to higher costs in profit or loss.Equity increased b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 891 million mainly as a result of the opening r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatement of non-mone<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tary items of DKK 814 million and the restatement effect from changes in the price inde<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x in 2022.Accounting policyInflation restatement Non-monetary items<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, which are carried at historical </span>cost, such as goodwill, customer contracts, right-of-use assets, property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment and de<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferred tax, have been r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated for the effect of inflation based on changes in the price index for the period from initial r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition to 31 December 2022 or to the date of disposal, where r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant. The r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatement was made effective from the time, the items wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e initially recognised, which was no earlier than 2005, when ISS first entered T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey through an acquisition.The restating gain or loss r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to the change in the price index for the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period has been recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss under financial income or expenses, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept for the tax effect, which has been recognised under income tax. The gain or loss r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to the prior periods has been recognised in other comprehensive income.Management has assessed whether the restatement of non-monetary items repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esents an indication of impairment to ensure that the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated amounts do not ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceed the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts of the assets, see 3.2, Impairment tests.Monetary items <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">such as receivables, payables, loans </span>and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings are not subject to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatement for the effects of inflation as these items already r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect the purchasing po<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer at the reporting date.Equity<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0 ws0"> <span class="ff4 fc3 ls5f">includes the opening effect of restating </span></span>non-monetary items. Further<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the restatement effects of inflation based on changes in the price index for the reporting period have been r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income with set-off within financial income or expenses in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss.Profit or loss <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">tr<span class="_ _0"/>ansactions in the period have been </span>restated to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect changes in the price index fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the time of transaction to the end of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period, with the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ception of depreciation and amortisation. The latter have been recalculated based on the inflation-adjusted costs of intangible assets and right-of-use assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment. The<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> recalculation has been based on the useful lives of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant assets based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, cf. 2.6, Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty, plant and equipment.Cash flow statement<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Oper<span class="_ _0"/>ating profit befor<span class="_ _0"/>e other </span>items includes a non-cash effect from the inflation restatement, which has been eliminated in the line Non-cash items related to hyperinflation.Price index Restatement for hyperinflation of the financial state<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ments of the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish subsidiary was based on the development in the consumer price inde<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish Statistical Institute. For 2022, the inflation rate in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey was 64%.Retranslation fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om TRY to DKK The financial statements of the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, including effects of inflation restatement, have been translated into DKK applying the TRY/DKK e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rate at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date as opposed to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s normal practice of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslating the profit or loss using the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date or an average e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate for the month. The TRY/DKK ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate decr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased from 50.53 at the beginning of 2022 to 37.25 at 31 December 2022. The average TRY/DKK e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange for the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period was 43.00.7.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Related partiesParent and ultimate controlling party The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s parent ISS A/S is the ultimate con-trolling party<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. At 31 December 2022, ISS had no related parties with either contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol of the Group or significant influence in the Group. Key management personnel The Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors (Board) and the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management (EGM) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s key management personnel as defined in 6.1, Management remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation. Apart from r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emuneration, including shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-based incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes, there wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e no significant transactions with members of the Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d and the EGM in 2022.7.4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Fees to auditors(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>2021Statutory audit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span>73<span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 71 Other assurance services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 1 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax and VA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>T advisory services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 6 Other services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 9 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fe"> </span>86<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 87 Other assurance services<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprised work </span></span>related to the interim financial statements and other assurance services.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax and V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>T advisory services<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">mainly related to </span></span>tax compliance services.Other services<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprised among other things </span></span>work related to acquisitions and divestments, such as financial and tax due diligence. 7.5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Subsequent e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ventsOn 6 February 2023, two earthquakes caused large scale devastation and loss of thousands of lives in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y and Syria. ISS is one of the largest private employers in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey and appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximately 4,500 of our placemakers service workplaces for around 100 of our customers, including two hospitals, in the impacted areas of T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>agically<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, three of our placemakers wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e fatally injured, se<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veral ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in medical treatment and even mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e suffered loss of immediate family members and housing. Our teams on the ground in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey have since the earthquakes focused on ensuring the safety and welfare of our people and customers who are facing unimaginable challenges and devastation.ISS has not suffered material damage to its assets in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Furthermore, the impacted areas account for less than 1% of ISS’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s global activities and the vast majority of our customers’ operations continue or will continue after repairs. Consequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, it is management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s assessment that the earthquakes will not have a material impact on the results of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s operations and financial position in 2023.Other than set out above or else<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>where in these consolidated financial statements, we are not aware of e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents subsequent to 31 December 2022, which are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position.8 Basis of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _2f"/> pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>epar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ation8.1 Gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al accounting policiesISS A/S is listed on Nasdaq Copenhagen. The consolidated financial statements of ISS A/S for the year ended 31 December 2022 comprise ISS A/S and its subsidiaries (collectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group). Signifi-cant subsidiaries are listed in 8.4, Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies.The 2022 Annual Report for ISS A/S was discussed and appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ved by the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management Board (the EGMB) and the Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d of Directors (the Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d) on 23 February 2023 and issued for appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>val at the subsequent annual general meeting on 13 April 2023. Basis of prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ation The consolidated financial statements of the Group have been pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epared in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with IFRS as adopted by the EU and additional requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements of the Danish Financial Statements Act. In addition, the consolidated financial statements have been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in compliance with the IFRSs issued by the IASB. The consolidated financial statements have beenprepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed on the basis that the Group willcontinue to operate as a going concern.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s significant accounting policies and accounting policies related to IAS 1 minimum presentation items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e described in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes to the consolidated financial statements. A list of the notes is shown on p. 50.All amounts have been rounded to near<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est DKK million (DKKm), unless otherwise stated.Fair value measurement and disclosur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Items are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at historical cost, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for assets and liabilities held for sale, derivative financial instruments and contingent consider<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ation that have been measured at fair value.Assets and liabilities measured at fair value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e categorised within the fair value hierar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chy and disclosed in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes.For the purpose of fair value disclosures, management has assessed that the fair values of cash and cash equivalents, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, contingent consideration, tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other current and non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent financial assets and liabilities appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximates their carrying amount largely due to the short-term matur-ities of these instruments. The fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, including methods and assumptions used to estimate the fair value, are disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings.Climate-related risks Management has considered the impact of cli-mate-related risks which did not have a material impact on the estimates and judgements in these consolidated financial statements, includ-ing impairment. In addition, it is management's assessment that climate change is not expected to have a significant impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s going concern assessment, or in the long-term (next five years).Defining materiality The consolidated financial statements separately present items that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered individually significant, or are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired under the minimum presentation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equirements of IAS 1. In addi-tion, information that is considered material, either individually or in combination with other information, is disclosed.In determining whether an item is individually significant, or information is material, ISS consid-ers both quantitative and qualitative factors. If the presentation or disclosur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e could reasonably be expected to influence economic decisions made by primary users, the information is considered material. Explanatory disclosure notes r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the consolidated financial statements are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented for individually significant items. Where separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate presentation of a line item is made solely due to the minimum presentation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equirements in IAS 1, no further disclosures ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in respect of that line item.Basis of consolidation The consolidated financial statements comprise ISS A/S and entities controlled b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS A/S. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intra-gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup balances, income, expenses and cash flow r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to transactions between members of the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e eliminated. Unre-alised losses are eliminated in the same way as unrealised gains, but only to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that there is no e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vidence of impairment.The non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est’s shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of net profit and equity of subsidiaries, which are not whol-ly-owned, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit and equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, but disclosed separately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. By virtue of agreement certain non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling shareholders ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e only eligible of receiving benefits from their non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interest when ISS as controlling shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholder has received their initial investment and compound interest on such. In such instances the subsidiaries’ result and equity are fully allocated to ISS until the point in time where ISS has r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised amounts ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeding their investment including compound interest on such. A change in ownership inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est of a subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, without loss of control, is accounted for as an equity transaction. If the Group loses contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol over a subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, it derecognises the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated assets (including goodwill), liabilities, non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est and other components of equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, while any resultant gain or loss is recognised in Other income and expenses, net. Any investment r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etained is recognised at fair value on initial r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition. Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ency The consolidated financial statements are presented in Danish kr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oner (DKK), which is ISS A/S’s functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansactions in currencies other than the functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency of the respective Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies are consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed transactions denominated in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign currencies.On initial recognition, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept for companies operating in hyperinflationary envir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>onments, these are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated to the respective functional currencies of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date. Foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments arising between the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date and at the date of payment are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial income or Financial expenses. Receivables, payables and other monetary items denominated in foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>encies are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> translated at the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at the report<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing date. The difference between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date and at the date of transaction or the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate in the latest financial statements is recognised in Financial income or Financial expenses. On recognition in the consolidated financial statements of Group companies with a func-tional currency other than DKK, the statements of profit or loss and statements of cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the transaction date and the statements of financial position are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the reporting date. An aver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>age ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate for the month is used as the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date to the extent that this does not significantly deviate fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date. Foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments arising on translation of the opening balance of equity of foreign entities at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date and on translation of the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss statements from the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at the transaction date to the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date are recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income and presented in equity under a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate translation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if the foreign entity is a non-wholly owned subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the relevant proportion of the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslation difference is allocated to the non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est. Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of balances with foreign entities which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered part of the investment in the entity are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in equity under a separate tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslation reserve. 8.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Change in accounting policiesFrom 1 January 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has adopted the below standar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds and interpretations with no sig<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>nificant impact on recognition and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement: • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Amendments to IAS 37 Pro<span class="_ _0"/>visions, Contingent </span>Liabilities and Contingent Assets: Onerous Contracts – Costs of Fulfilling a Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act.• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Amendments to IFRS 3 Business Combinations </span>– Reference to the Conceptual Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ameworkIAS 29 Financial Reporting in Hyperinflation EconomiesEffective 1 January 2022, the Group implement-ed IAS 29, Financial Reporting in Hyperinfla-tionary Economies, as management considered T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y as a hyperinflationary environment. Management based its assessment on the cumulative three-year inflation, which e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeded the threshold of 100% in February 2022. As a result, the financial statements of ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey for 2022 were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated for hyperinflation before the reported amounts wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e translated to the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, DKK, applying the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date. Since the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, DKK, is a non-hyperinflationary currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, IAS 29 does not requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restatement of compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ative figures in the year of implementation. Consequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es have not been restated.The implementation impact and the applied accounting policies are disclosed in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.8.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w accounting r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egulationsIASB issued amended standards and interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-tations, which are not yet mandatory for the consolidated financial statements of the Group at 31 December 2022.The Group e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpects to adopt the new standar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds and interpretations when the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y become mandatory<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Based on the current business setup and le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel of activities, none of these standards and interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-tations are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to have a material impact on the recognition and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement in the consolidated financial statements. 8.4 Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companiesNorthern Europe Denmark (ISS A/S's country of domicile)ISS Facility Services A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>100%ISS Finance B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fa"> </span>100%ISS World Services A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span>100%ISS Global A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f8"> </span>100%ISS Global Management A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>100%ISS Holding France A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span>100%ISS Lending A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>100%Belgium &amp; LuxembourgISS Catering N.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span>100%ISS Facility Services N.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>100%ISS Facility Services S.A. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a5"> </span>100%FinlandISS Palvelut Holding Oy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>100%ISS Palvelut Oy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ae"> </span>100%Suomen Laatutakuu Palvelut Oy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>100%NetherlandsISS Building Maintenance Services B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>100%ISS Catering Services B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span>100%ISS Holding Nederland B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15f"> </span>100%ISS Integrated Facility Services B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span>100%ISS Nederland B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d8"> </span>100%T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>alentgroep Montaigne Facility Management B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.100%Norway<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>ISS Holding AS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ae"> </span>100%ISS Management AS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fb"> </span>100%ISS Facility Services AS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a"> </span>100%ISS Serveringspartner AS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fc"> </span>100%ISS Service Management AS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span>100%PolandISS Facility Services Sp. Z o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _68"> </span>100%ISS World Services Poland Sp. Z.o.o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span>100%SwedenISS Facility Services Holding AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10c"> </span>100%ISS Facility Services AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0">100%</span>ISS Palvelut Holding AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>100%UK &amp; IrelandISS UK Holding Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11b"> </span>100%ISS UK Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fd"> </span>100%ISS Facility Services Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>100%ISS Mediclean Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span>100%Pegasus Security Holdings Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>100%ISS Ireland Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _fe"> </span>100%Central &amp; Southern Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope Austria ISS Austria Holding GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>100%ISS Facility Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>100%ISS Ground Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f3"> </span>51%France<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>GIE ISS Services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _132"> </span>100%ISS Facility Management SAS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>100%ISS Holding Paris SAS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f9"> </span>100%ISS Logistique et Production SAS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>100%GermanyISS Automotive Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fe"> </span>100%ISS Facility Services Holding GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span>100%ISS Integrated Facility Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span>100%ISS Energy Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span>100%ISS Communication Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span>100%ItalyISS Facility Services S.r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.l. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ad"> </span>100%PortugalISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ech Portugal, Unipessoal Lda.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span>100%SpainIntegrated Service Solutions, S.L. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>100%ISS Facility Services, S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a5"> </span>100%ISS Soluciones De Seguridad, S.L.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span>100%UTE-HOSPIT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ALES S.A.S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20"> </span>65%1)SwitzerlandISS Facility Services AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11f"> </span>100%ISS Schweiz AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>100%Livit FM Services AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"> </span>100%T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkeyISS Hazir Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emek Üretim ve Hizmet A.Ş.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">50.1%</span>4)ISS Proser <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Koruma ve Güvenlik Hizmetleri <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A.Ş.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 ls0 ws0">50.1%</span>4)ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>esis Yönetim Hizmetleri A.Ş.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c9"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">50.1%</span>4)ISS İşletme Hizmetleri A.Ş (Rönesans)50.1%4)ISS Bitki <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Bakim ve <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Hasere Kontr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol Hizmetleeri <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A.Ş.50.1%4)Americas ChileApunto Servicios de Alimentacion S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>100%ISS Chile S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span>100%ISS Facility Services S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>100%ISS Servicios de Limpieza Mecanizada S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>100%ISS Servicios Generales Ltda.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span>100%ISS Servicios Integrales Ltda.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span>100%MexicoISS Centro América, S. de R.L. de C.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>100%ISS Facility Services, S.A. de C.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>100%US &amp; CanadaISS Facility Services Holding, Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span>100%ISS Management and Finance Co, Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>100%ISS Facility Services, Inc (US)100%Guckenheimer Enterprises Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>100%ISS C&amp;S Building Maintenance Corporation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>100%ISS Facility Services California, Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>100%ISS Holding Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>100%ISS TMC Services, Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _202"> </span>100%ISS Facility Services Inc. (CA)100%Asia &amp; PacificAustralia &amp; Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w ZealandISS Facility Management Pty Limited <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span>100%ISS Facility Services Australia Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>100%ISS Facility Services Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>100%ISS Health Services Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span>100%ISS Holdings Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b9"> </span>100%ISS Integrated Services Pty Ltd<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ee"> </span>100%ISS Property Services Pty Ltd<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span>100%ISS Security Pty Ltd<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14"> </span>100%Pacific Invest December 2004 Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>100%Pacific Service Solutions Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ec"> </span>100%ISS Facility Services Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _203"> </span>100%ISS Holdings NZ Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _202"> </span>100%ChinaISS Facility Services (Shanghai) Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span>100%ISS Hongrun (Shanghai) Cleaning Services Limited100%ISS Property Management (Beijing) Co.,Ltd100%Shanghai B&amp;A Property Management Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>100%Shanghai B&amp;A Security Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span>100%Shanghai ISS Catering Management Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span>100%Hong KongHung Fat Cleaning T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransportation Co., Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>100%ISS Adams Secuforce Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ab"> </span>100%ISS China Holdings Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ff"> </span>100%ISS China Holdings I Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span>100%ISS EastPoint Properties Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span>100%ISS EastPoint Property Management Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>100%ISS Facility Services Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>100%ISS Greater China Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span>100%ISS Hygiene Services (HK) Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _200"> </span>100%ISS Mediclean (HK) Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>100%ISS Pan Asia Security Services Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span>100%JSL Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _201"> </span>100%Silvertech E&amp;M Engineering Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>100%India2)Innovative and Payr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oll Advisory 46% Services Pvt. Ltd.ISS Facility Services India Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>100%ISS SDB Security Services Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>46%2)2)Modern Protection &amp; Investigations Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>46%ISS Support Services Pvt. Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _200"> </span>100%IndonesiaPT ISS Facility Services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>99%PT ISS Indonesia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span>100%2)PT ISS Jasa Fasilitas<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span>0%SingaporeISS Asia Pacific Pte. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>100%ISS Catering Services Pte. Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>100%ISS Facility Services Pte. Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span>100%ISS Hydrocultur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Pte. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fc"> </span>100%ISS M&amp;E Pte. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span>100%Discontinued operations Brunei<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>3)ISS Facility Services Sdn. Bhd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span>50%1) Joint venture2) By virtue of the governance structure, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the power to govern the financial and operating policies of the company<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Consequently, the company is consolidated as a subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.3) Divested on 9 February 2023.4) Under certain circumstances or events, ISS may be obliged to<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> choose to purchase other shareholders’ shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholdings or dispose of its own shareholdings.8.5 DefinitionsISS uses various key figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es, financial ratios and non-financial ratios, all of which pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovide our stakeholders with useful and necessary information about the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position, performance, cash flows and de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment in a consistent way<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. In relation to managing the business, achieving our str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategic goals and ultimately creating value for our shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders, these measures ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered essential. In addition, the Group uses alternative perfor-mance measures (APMs) to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovide stakeholders with additional measures to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>valuate and analyse the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s performance. The APMs are non-IFRS financial measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es defined by the Group and thus may not be compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>able with measures pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y peers or other compa-nies' measures.1) Comparable re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue prior year excludes impacts fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in exchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates and acquisitions/divestments, net as well as impact from hyperinflation restatement. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o arrive at comparable re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue, prior year’s revenue is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etranslated by applying curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent year’s exchange rates, divestments and impacts from hyperinflation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatements are excluded and estimated impacts fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om acquisitions are added.2) Management’s expectations at the acquisition date.3) Incl. the effect from ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>clusion of currency effects from the calcula-tion of organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth and acq./div., net.4) Estimated or actual revenue wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available at the divestment date.5) AGM = Annual General MeetingAlternative performance measures Net profit (adjusted)Net profit e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcluding Other income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses, net, Goodwill impairment, Amortisation/impairment of brands and customer contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, impact from hyperinfla<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tion (IAS 29) and Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operationsEBITDAOperating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit + Depreciation and amortisation + Amortisation/impairment of brands and customer contractsEBITDA befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items (adjusted EBITDA)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items + <span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>Depreciation and amortisationPro forma adjusted EBITD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AEBITDA befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items, including EBITDA befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items in discontinued operations, and adjusted as if all acquisitions and divestments had occurred on 1 January of the respective yearFree cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating activities – Acq. of intangible assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment, net – Acq. of financial assets, net (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. equity-accounted investees) – Addition of right-of-use assets, net Organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth, %(Revenue curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent year ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. hyperinflation 1)– Comparable r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue prior year) x 100 1)Comparable r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue prior yearAcquisitions are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eated as having been integrated with ISS at the acquisition date. Consequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth includes changes in re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of such acquisitions compared with e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations at the acquisition date.Operating margin, %Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items x 100 Revenue T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal revenue gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth, % (Revenue curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent year – Revenue prior year) x 100 Revenue prior yearFinancial ratios Acquisitions, %2)Revenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om acquisitions x 100 Revenue prior yearCash conversion, % Free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w x 100 Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other itemsCurrency adjustments T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal revenue gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth – Organic gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth <span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>3)– Acquisition/divestment gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth, netDivestments, % 4)Revenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om divestments × 100 Revenue prior yearEquity ratio, % T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equity × 100 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal assetsNet debt Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings – Securities – Cash and cash equivalents – Positive fair value of derivatives Share r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atios Basic earnings per share (EPS) Net profit attributable to o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wners of ISS A/S Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (basic)Diluted earnings per share (EPS) Net profit attributable to o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wners of ISS A/S Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (diluted)Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (basic) Average number of issued shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluding treasury shares, for the yearAverage number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (diluted) Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (basic) + Average number of outstanding PSUs and RSUs expected to vest ESG ratios<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> CO emissions 2Scope 1, 2 and 3 emissions calculated in accordance with the Greenhouse Gas Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otocol. For further infor<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>mation see the 2022 Sustainability Report pp. 42-43.Employee turno<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, % Number of employees who left in the year × 100 Average number of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees for the yearCustomer retention, % Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue (annual value) retained <span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>at 31 December of the portfolio at 1 January Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue (annual value) at 1 January Lost Time Injury Frequency (L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIF) LTI is a work-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated injury pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venting a person from working, i.e. being unfit for at least a full working day or shift. LTIF is based on 1 million e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure hours including contractors under ISS’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s operational contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol Fatalities Measures the number of work-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated fatalitiesT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>raining hours Hours spent by participants while pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eparing and partic-ipating. All training sponsor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by ISS, paid or unpaid as a result of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yment within ISS Gender diversity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Board, % 5)Female board members (A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GM elected) × 100 5)Board members (A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GM elected)Board meeting attendance, % Accumulated number of attended board meetings for all board members x 100Number of board meetings possible to attend for all board membersSpeak Up, number Number of reports r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived through Speak Up system or alternative channels Estimates and judgements The prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation of the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s consolidated<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> financial statements requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed management to make judgements, estimates and assumptions that affected the reported amounts of assets, liabilities, income and expenses, the accom<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>panying disclosures, including contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a material adjustment to the carrying amount of assets or liabilities in future periods. Estimates and assumptions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed on an ongoing basis and have been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed taking macroeconomic de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments into consid<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>eration, but still ensuring that one-off effects which are not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to exist in the long<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> term do not affect estimation and determina<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tion of these key factors, including discount rates and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for the future.The table to the right pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vides an overvie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s significant accounting estimates and judgements and the significance of impact on the consolidated financial statements. Note<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0">Significant estimates and judgements<span class="_ _b5"> </span></span>Estimate/Judgement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>Impact1.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls20 ws27">• <span class="_ _d6"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 ls20">Revenue r<span class="_ _0"/>ecognition – impact from contr<span class="_ _0"/>act modifications and variable consideration<span class="_ _75"> </span><span class="ls0">Estimate/Judgement</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Gross or net pr<span class="_ _0"/>esentation <span class="_ _158"> </span>Judgement</span>2.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Other receivables<span class="_ _74"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Capitalisation of transition and mobilisation costs<span class="_ _8"> </span>Judgement</span></span>2.5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>Provisions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc2">• <span class="_ _b7"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">Onerous contr<span class="_ _0"/>acts – future pr<span class="_ _0"/>ofitability<span class="_ _15a"> </span>Estimate/Judgement</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Assumptions for claims, disputes and legal proceedings<span class="_ _ee"> </span>Judgements</span>2.6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Right-of-use assets<span class="_ _7b"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Lease term, including extension options mainly related to buildings<span class="_ _15b"> </span>Judgements</span></span>3.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Intangible assets<span class="_ _71"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Cloud-based arragements – assessment of control<span class="_ _15c"> </span>Judgements</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Capitalisation of configuration and customisation costs for softwar<span class="_ _0"/>e<span class="_ _c7"> </span>Judgements</span>3.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Impairment tests<span class="_ _45"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Key assumptions in impairment test of goodwill and other intangible assets<span class="_ _14c"> </span>Estimate</span></span>5.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Deferred tax<span class="_ _111"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Recognition of deferred tax assets – futur<span class="_ _0"/>e taxable profit available<span class="_ _120"> </span>Estimate</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Uncertain tax positions – estimate of the amount required to settle the obligation<span class="_ _86"> </span><span class="ls0">Estimate/Judgement</span></span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Pensions and </span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Assumptions for actuarial gains and losses, e.g. inflation and discount rates, <span class="ls0"> </span></span>Estimatesimilar obligationsfuture salary and pension incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases• Low •• Medium •••HighSignificant accounting estimates and judgementsOur customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on three differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent commercial models r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equiring varying levels of man-agement estimates and judgement in determining the transaction price:1) Fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts;2) Cost-plus contracts; and3) Cost-plus variations (typically capped)For fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is recognised based on the transaction price stated in the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, and thus requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e limited judgement from management.For cost-plus contracts, including variations e.g. with a cap, ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price is determined based on costs incurred with the addition of an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed mark-up/management fee. Determining the transaction price requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es management to assess, which costs may be included in the calculation basis and if rele-vant, whether within the capped maximum.For key accounts and other large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the transaction price may also include a variable consideration based on achie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement of certain key performance indicators and gain share. Manage-ment estimates variable consideration based on the most likely amount to which it expects to be entitled on a contract-b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y-contract basis. Management makes a detailed assessment of the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived and the probability of suc-cess in each case. Variable consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is included in re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as services are performed to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that it is highly probable that the amount will not be subject to significant re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal.Price adjustment mechanisms in our customer contracts vary in terms of content and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent. Judgement is requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by management to determine the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived as a result of inflationary pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>essure on costs of delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Contract modifications r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, particularly for key account customers, in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der to ensure that service solutions reflect their curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent needs. Such modifications are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally agreed with the cus-tomer in advance as per the contract in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with a specified change management procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and accounted for going forward with no impact on recognised r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue up to the date of modification. Management assess how quickly ISS would be able to implement the scope changes of the service.Gross or net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentation of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls20 ws27"> Management </span>uses judgement to determine whether the nature of ISS’s pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>omise is to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the specified services (ISS is the principal), or to arrange for another party to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the services (ISS is acting as an agent). This assessment is based on an evaluation of whether ISS controls the specified services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e transfer to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group has concluded that as a main rule it is the principal in its re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue arrangements, because it typically controls the services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e trans<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferring them to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and consequently as a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> main rule recognises r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss basis.Significant accounting judgementsCapitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled. Management uses judgement to determine if the costs relate dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly to the contract and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e incurred in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der for ISS to be able to fulfill the contract. In addition, management determines if the costs generate r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources that will be used in satisfying the performance obligations and are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vered, i.e. reflected in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> pricing of the contracts.Significant accounting estimates and judgementsOur strategic choice to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts increasingly leads to a customer case comprising large, more comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x contracts in terms of perfor-mance obligations towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds our customers. Addition-ally<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the size and complexity of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mo-bilisation costs before service delivery commences to enable fulfillment of the performance obligations. Furthermore, comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x restructuring pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects may need to be initiated and recognised as a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management assesses whether </span>contracts may be oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous by estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofitability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. This involves estimating total contract r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and the unavoidable costs of meeting the performance obligations under the con-tract, including any tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs incurred. In estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit-ability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, management makes judgements, including in relation to termination and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtension options.Certain contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e large, complex and longer term facility service partnerships. In estimating unavoid-able costs in relation to such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, management makes assumptions around futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e realisation of costs taking estimated optimisations and efficiency gains from impr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovement initiatives into consider-ation. While ISS has inherent risk in this r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espect, ISS is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e also dependent on aligning interest with the customer within the frame<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>work of the agree-ment for the benefit of both parties. The outcome may vary significantly should the assumptions and judgements applied not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected by management and applied as basis for their assess-ment of whether a contract is oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management </span>makes judgements related to various other matters and obligations, primarily relating to planned/initiated restructurings, and comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes, including ongoing lawsuits. Management’s assessment of the likely outcome of lawsuits, tax disputes, etc., is based on external legal assistance and established precedents.For large, complex contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the outcome may vary significantly should the judgements and assump-tions applied by management in their assessment of the risks and disputes not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected.Significant accounting judgementsLease term<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Sever<span class="_ _0"/>al of ISS’s lease contr<span class="_ _0"/>acts (office </span>buildings) have no contractual fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed lease term or contains an extension option. Management ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercises judgement in determining whether these extension options ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e reasonably certain to be ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercised. Management considers all r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant facts and circumstances that cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eate an economic incen<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tive for the Group to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cise the extension option.The lease term for contracts without an end date is set to ten years for head office and accessory buildings, whereas all other leases with no definite end date are set to five years.Significant accounting judgementsCloud-based arrangement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At the commencement </span>date, management assesses whether the Group ac-quires an intangible asset, a leased asset or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives a service over the term of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. If the Group receives a right to access the cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider's appli-cation without further rights or control it is neither a lease nor an intangible asset. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group may acquire an intangible asset if the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the contractual right to take possession of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e during the contract period without significant penal-ty and it is feasible for the Group to run the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e on its own har<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dware or with another cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.In SaaS arrangements, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider controls the application software, the assessment of whether configuration or customisation of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e results in an intangible asset for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances or modifies, or creates additional capability to the existing on-pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emise software to enable it to connect with the cloud-based software applications. If activities are performed on the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s infrastruc-ture and applications, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y likely repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent assets that the Group contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ols because they enhance, impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve or customise existing softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e assets.Significant accountingestimatesIn performing the impairment test, manage-ment assesses whether the CGU to which the intangibles relate will be able to gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate positive net cash flows sufficient to support the value of intangibles and other net assets. The assessment is based on estimates of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows (value-in-use) for the individual GCU<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, which by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are uncertain.Estimates are made using financial for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecasts for the following year as appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management, and estimated discount rates, gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth and market developments. Assumptions applied in the short to medium term (forecasting period of five years) generally r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect management’s expecta-tions considering all rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant factors, including estimated optimisations and efficiency gains from impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives, past experience and external sour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ces of information, where possible and rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>erminal growth r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates and margins applied reflects management’s long-term e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth for the individual CGUs, including inflation, and normalised earnings, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.The outcome of the impairment test may vary significantly should the assumptions, estimates and judgements not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected and applied as basis for management’s conclusion of whether impairment of a CGU has occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Significant accounting estimates and judgementsDeferred tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">r<span class="_ _0"/>elating to tax losses carried </span></span>forward ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised, when management assesses that these can be offset against positive taxable income in the foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. The assessment is made at the reporting date taking into account the impact from limitation in inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est deductibility and local tax restrictions in utilisation of tax losses. The assessment of future taxable in-come is based on financial forecasts appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management and expectations on the oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ational development, mainly in terms of organic gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth and operating margin.Management made a reassessment of the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obabili<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-</span>ty that future taxable pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit will be available in the foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e against which the Group can uti<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>lise tax losses (i.e for current year and those carried forward fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om prior years (valuation allowances). The assessment is based on the cash flow pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojections made for the purpose of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> tests, see 3.2, Impairment tests, and repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esents management’s best estimate, but is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e asso<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ciated with significant uncertainty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Uncertain tax positions<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">As part of operating a </span></span>global business, disputes with tax authorities around the world may occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Management peri-odically evaluates positions taken in tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns with respect to situations in which applicable tax regulation is subject to interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etation and consid-ers whether it is probable that a tax authority will accept an uncertain tax treatment. The possible outcome of uncertain tax positions are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed based on management’s best estimate of the amount requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and rec-ognised in deferred tax or income tax depending on the tax position.Significant accounting estimatesActuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is determined on the basis of assumptions about the future de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velop<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment in variables such as salary levels, inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates, inflation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>and mortality<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Applied actuarial assumptions vary from country to country due to local conditions. All assumptions are assessed at the reporting date. Changes in these assumptions may significantly affect the liabilities and pension costs under defined benefit plans. The range and weighted average of these assumptions as well as sensitivities on key assumptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in this note.The discount rates used for calculating the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on the market yield of high-quality corporate bonds or government bonds with a maturity appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oximating to the terms of the defined benefit obligations. When the Group participates in multi-emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer pension plans being accounted for as defined con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tribution plans due to unavailability of information, there is a risk that the plans ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not sufficiently funded. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, information on surplus or deficit in the schemes is not available. Estimates and judgements The preparation of the Group’s consolidated financial statements required management to make judgements, estimates and assumptions that affected the reported amounts of assets, liabilities, income and expenses, the accom-panying disclosures, including contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities in future periods. Estimates and assumptions are reviewed on an ongoing basis and have been prepared taking macroeconomic developments into consid-eration, but still ensuring that one-off effects which are not expected to exist in the long term do not affect estimation and determina-tion of these key factors, including discount rates and expectations for the future.The table to the right provides an overview of the Group's significant accounting estimates and judgements and the significance of impact on the consolidated financial statements. Note Significant estimates and judgements Estimate/Judgement Impact1.2 Revenue • Revenue recognition – impact from contract modifications and variable consideration Estimate/Judgement• Gross or net presentation Judgement2.2 Other receivables • Capitalisation of transition and mobilisation costs Judgement2.5 Provisions • Onerous contracts – future profitability Estimate/Judgement• Assumptions for claims, disputes and legal proceedings Judgements2.6 Right-of-use assets • Lease term, including extension options mainly related to buildings Judgements3.1 Intangible assets • Cloud-based arragements – assessment of control Judgements• Capitalisation of configuration and customisation costs for software Judgements3.2 Impairment tests • Key assumptions in impairment test of goodwill and other intangible assets Estimate5.2 Deferred tax • Recognition of deferred tax assets – future taxable profit available Estimate• Uncertain tax positions – estimate of the amount required to settle the obligation Estimate/Judgement7.1 Pensions and • Assumptions for actuarial gains and losses, e.g. inflation and discount rates, Estimatesimilar obligationsfuture salary and pension increases• Low •• Medium •••HighSignificant accounting estimates and judgementsOur customer contracts are based on three different commercial models requiring varying levels of man-agement estimates and judgement in determining the transaction price:1) Fixed price contracts;2) Cost-plus contracts; and3) Cost-plus variations (typically capped)For fixed price contracts, revenue is recognised based on the transaction price stated in the contract, and thus require limited judgement from management.For cost-plus contracts, including variations e.g. with a cap, ISS’s transaction price is determined based on costs incurred with the addition of an agreed mark-up/management fee. Determining the transaction price requires management to assess, which costs may be included in the calculation basis and if rele-vant, whether within the capped maximum.For key accounts and other large contracts, the transaction price may also include a variable consideration based on achievement of certain key performance indicators and gain share. Manage-ment estimates variable consideration based on the most likely amount to which it expects to be entitled on a contract-by-contract basis. Management makes a detailed assessment of the amount of revenue expected to be received and the probability of suc-cess in each case. Variable consideration is included in revenue as services are performed to the extent that it is highly probable that the amount will not be subject to significant reversal.Price adjustment mechanisms in our customer contracts vary in terms of content and extent. Judgement is required by management to determine the amount of revenue expected to be received as a result of inflationary pressure on costs of delivery.Contract modifications regularly occur, particularly for key account customers, in order to ensure that service solutions reflect their current needs. Such modifications are generally agreed with the cus-tomer in advance as per the contract in accordance with a specified change management procedure and accounted for going forward with no impact on recognised revenue up to the date of modification. Management assess how quickly ISS would be able to implement the scope changes of the service.Gross or net presentation of revenue Management uses judgement to determine whether the nature of ISS’s promise is to provide the specified services (ISS is the principal), or to arrange for another party to provide the services (ISS is acting as an agent). This assessment is based on an evaluation of whether ISS controls the specified services before transfer to the customer. The Group has concluded that as a main rule it is the principal in its revenue arrangements, because it typically controls the services before trans-ferring them to the customer, and consequently as a main rule recognises revenue on a gross basis.Significant accounting judgementsCapitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled. Management uses judgement to determine if the costs relate directly to the contract and are incurred in order for ISS to be able to fulfill the contract. In addition, management determines if the costs generate resources that will be used in satisfying the performance obligations and are expected to be recovered, i.e. reflected in the pricing of the contracts.Significant accounting estimates and judgementsOur strategic choice to focus on key accounts increasingly leads to a customer case comprising large, more complex contracts in terms of perfor-mance obligations towards our customers. Addition-ally, the size and complexity of such contracts often requires ISS to incur significant transition and mo-bilisation costs before service delivery commences to enable fulfillment of the performance obligations. Furthermore, complex restructuring projects may need to be initiated and recognised as a provision. Onerous contracts Management assesses whether contracts may be onerous by estimating the ex-pected future profitability. This involves estimating total contract revenue and the unavoidable costs of meeting the performance obligations under the con-tract, including any transition and mobilisation costs incurred. In estimating the expected future profit-ability, management makes judgements, including in relation to termination and extension options.Certain contracts are large, complex and longer term facility service partnerships. In estimating unavoid-able costs in relation to such contracts, management makes assumptions around future realisation of costs taking estimated optimisations and efficiency gains from improvement initiatives into consider-ation. While ISS has inherent risk in this respect, ISS is by nature also dependent on aligning interest with the customer within the framework of the agree-ment for the benefit of both parties. The outcome may vary significantly should the assumptions and judgements applied not be realised as expected by management and applied as basis for their assess-ment of whether a contract is onerous.Restructurings and other provisions Management makes judgements related to various other matters and obligations, primarily relating to planned/initiated restructurings, and complex customer and contract-related risks and disputes, including ongoing lawsuits. Management’s assessment of the likely outcome of lawsuits, tax disputes, etc., is based on external legal assistance and established precedents.For large, complex contracts, the outcome may vary significantly should the judgements and assump-tions applied by management in their assessment of the risks and disputes not be realised as expected.Significant accounting judgementsLease term Several of ISS’s lease contracts (office buildings) have no contractual fixed lease term or contains an extension option. Management exercises judgement in determining whether these extension options are reasonably certain to be exercised. Management considers all relevant facts and circumstances that create an economic incen-tive for the Group to exercise the extension option.The lease term for contracts without an end date is set to ten years for head office and accessory buildings, whereas all other leases with no definite end date are set to five years.Significant accounting judgementsCloud-based arrangement At the commencement date, management assesses whether the Group ac-quires an intangible asset, a leased asset or receives a service over the term of the contract. If the Group receives a right to access the cloud provider's appli-cation without further rights or control it is neither a lease nor an intangible asset. However, the Group may acquire an intangible asset if the Group has the contractual right to take possession of the software during the contract period without significant penal-ty and it is feasible for the Group to run the software on its own hardware or with another cloud provider.In SaaS arrangements, where the provider controls the application software, the assessment of whether configuration or customisation of the software results in an intangible asset for the Group depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of software code that enhances or modifies, or creates additional capability to the existing on-premise software to enable it to connect with the cloud-based software applications. If activities are performed on the Group’s infrastruc-ture and applications, they likely represent assets that the Group controls because they enhance, improve or customise existing software assets.Significant accountingestimatesIn performing the impairment test, manage-ment assesses whether the CGU to which the intangibles relate will be able to generate positive net cash flows sufficient to support the value of intangibles and other net assets. The assessment is based on estimates of expected future cash flows (value-in-use) for the individual GCU, which by nature are uncertain.Estimates are made using financial forecasts for the following year as approved by management, and estimated discount rates, growth and market developments. Assumptions applied in the short to medium term (forecasting period of five years) generally reflect management’s expecta-tions considering all relevant factors, including estimated optimisations and efficiency gains from improvement initiatives, past experience and external sources of information, where possible and relevant. Terminal growth rates and margins applied reflects management’s long-term expectations for revenue growth for the individual CGUs, including inflation, and normalised earnings, respectively.The outcome of the impairment test may vary significantly should the assumptions, estimates and judgements not be realised as expected and applied as basis for management’s conclusion of whether impairment of a CGU has occurred.Significant accounting estimates and judgementsDeferred tax assets relating to tax losses carried forward are recognised, when management assesses that these can be offset against positive taxable income in the foreseeable future. The assessment is made at the reporting date taking into account the impact from limitation in interest deductibility and local tax restrictions in utilisation of tax losses. The assessment of future taxable in-come is based on financial forecasts approved by management and expectations on the operational development, mainly in terms of organic growth and operating margin.Management made a reassessment of the probabili-ty that future taxable profit will be available in the foreseeable future against which the Group can uti-lise tax losses (i.e for current year and those carried forward from prior years (valuation allowances). The assessment is based on the cash flow projections made for the purpose of the Group’s impairment tests, see 3.2, Impairment tests, and represents management’s best estimate, but is by nature asso-ciated with significant uncertainty. Uncertain tax positions As part of operating a global business, disputes with tax authorities around the world may occur. Management peri-odically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and consid-ers whether it is probable that a tax authority will accept an uncertain tax treatment. The possible outcome of uncertain tax positions are measured based on management’s best estimate of the amount required to settle the obligation and rec-ognised in deferred tax or income tax depending on the tax position.Significant accounting estimatesActuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is determined on the basis of assumptions about the future develop-ment in variables such as salary levels, interest rates, inflation and mortality. Applied actuarial assumptions vary from country to country due to local conditions. All assumptions are assessed at the reporting date. Changes in these assumptions may significantly affect the liabilities and pension costs under defined benefit plans. The range and weighted average of these assumptions as well as sensitivities on key assumptions are disclosed in this note.The discount rates used for calculating the present value of expected future cash flows are based on the market yield of high-quality corporate bonds or government bonds with a maturity approximating to the terms of the defined benefit obligations. When the Group participates in multi-employer pension plans being accounted for as defined con-tribution plans due to unavailability of information, there is a risk that the plans are not sufficiently funded. However, information on surplus or deficit in the schemes is not available. Estimates and judgements The prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation of the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s consolidated<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> financial statements requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed management to make judgements, estimates and assumptions that affected the reported amounts of assets, liabilities, income and expenses, the accom<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>panying disclosures, including contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a material adjustment to the carrying amount of assets or liabilities in future periods. Estimates and assumptions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed on an ongoing basis and have been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed taking macroeconomic de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments into consid<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>eration, but still ensuring that one-off effects which are not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to exist in the long<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> term do not affect estimation and determina<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tion of these key factors, including discount rates and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for the future.The table to the right pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vides an overvie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s significant accounting estimates and judgements and the significance of impact on the consolidated financial statements. Note<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0">Significant estimates and judgements<span class="_ _b5"> </span></span>Estimate/Judgement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>Impact1.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls20 ws27">• <span class="_ _d6"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 ls20">Revenue r<span class="_ _0"/>ecognition – impact from contr<span class="_ _0"/>act modifications and variable consideration<span class="_ _75"> </span><span class="ls0">Estimate/Judgement</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Gross or net pr<span class="_ _0"/>esentation <span class="_ _158"> </span>Judgement</span>2.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Other receivables<span class="_ _74"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Capitalisation of transition and mobilisation costs<span class="_ _8"> </span>Judgement</span></span>2.5<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>Provisions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc2">• <span class="_ _b7"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">Onerous contr<span class="_ _0"/>acts – future pr<span class="_ _0"/>ofitability<span class="_ _15a"> </span>Estimate/Judgement</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Assumptions for claims, disputes and legal proceedings<span class="_ _ee"> </span>Judgements</span>2.6<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Right-of-use assets<span class="_ _7b"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Lease term, including extension options mainly related to buildings<span class="_ _15b"> </span>Judgements</span></span>3.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Intangible assets<span class="_ _71"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Cloud-based arragements – assessment of control<span class="_ _15c"> </span>Judgements</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Capitalisation of configuration and customisation costs for softwar<span class="_ _0"/>e<span class="_ _c7"> </span>Judgements</span>3.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Impairment tests<span class="_ _45"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Key assumptions in impairment test of goodwill and other intangible assets<span class="_ _14c"> </span>Estimate</span></span>5.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Deferred tax<span class="_ _111"> </span><span class="fc2">• <span class="_ _b7"> </span></span><span class="ff4">Recognition of deferred tax assets – futur<span class="_ _0"/>e taxable profit available<span class="_ _120"> </span>Estimate</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Uncertain tax positions – estimate of the amount required to settle the obligation<span class="_ _86"> </span><span class="ls0">Estimate/Judgement</span></span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Pensions and </span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Assumptions for actuarial gains and losses, e.g. inflation and discount rates, <span class="ls0"> </span></span>Estimatesimilar obligationsfuture salary and pension incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases• Low •• Medium •••HighSignificant accounting estimates and judgementsOur customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on three differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent commercial models r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equiring varying levels of man-agement estimates and judgement in determining the transaction price:1) Fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts;2) Cost-plus contracts; and3) Cost-plus variations (typically capped)For fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is recognised based on the transaction price stated in the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, and thus requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e limited judgement from management.For cost-plus contracts, including variations e.g. with a cap, ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price is determined based on costs incurred with the addition of an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed mark-up/management fee. Determining the transaction price requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es management to assess, which costs may be included in the calculation basis and if rele-vant, whether within the capped maximum.For key accounts and other large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the transaction price may also include a variable consideration based on achie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement of certain key performance indicators and gain share. Manage-ment estimates variable consideration based on the most likely amount to which it expects to be entitled on a contract-b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y-contract basis. Management makes a detailed assessment of the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived and the probability of suc-cess in each case. Variable consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is included in re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as services are performed to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that it is highly probable that the amount will not be subject to significant re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal.Price adjustment mechanisms in our customer contracts vary in terms of content and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent. Judgement is requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by management to determine the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived as a result of inflationary pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>essure on costs of delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Contract modifications r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, particularly for key account customers, in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der to ensure that service solutions reflect their curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent needs. Such modifications are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally agreed with the cus-tomer in advance as per the contract in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with a specified change management procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and accounted for going forward with no impact on recognised r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue up to the date of modification. Management assess how quickly ISS would be able to implement the scope changes of the service.Gross or net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentation of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls20 ws27"> Management </span>uses judgement to determine whether the nature of ISS’s pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>omise is to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the specified services (ISS is the principal), or to arrange for another party to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the services (ISS is acting as an agent). This assessment is based on an evaluation of whether ISS controls the specified services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e transfer to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group has concluded that as a main rule it is the principal in its re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue arrangements, because it typically controls the services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e trans<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferring them to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and consequently as a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> main rule recognises r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss basis.Significant accounting judgementsCapitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled. Management uses judgement to determine if the costs relate dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly to the contract and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e incurred in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der for ISS to be able to fulfill the contract. In addition, management determines if the costs generate r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources that will be used in satisfying the performance obligations and are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vered, i.e. reflected in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> pricing of the contracts.Significant accounting estimates and judgementsOur strategic choice to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts increasingly leads to a customer case comprising large, more comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x contracts in terms of perfor-mance obligations towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds our customers. Addition-ally<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the size and complexity of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mo-bilisation costs before service delivery commences to enable fulfillment of the performance obligations. Furthermore, comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x restructuring pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects may need to be initiated and recognised as a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management assesses whether </span>contracts may be oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous by estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofitability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. This involves estimating total contract r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and the unavoidable costs of meeting the performance obligations under the con-tract, including any tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs incurred. In estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit-ability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, management makes judgements, including in relation to termination and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtension options.Certain contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e large, complex and longer term facility service partnerships. In estimating unavoid-able costs in relation to such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, management makes assumptions around futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e realisation of costs taking estimated optimisations and efficiency gains from impr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovement initiatives into consider-ation. While ISS has inherent risk in this r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espect, ISS is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e also dependent on aligning interest with the customer within the frame<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>work of the agree-ment for the benefit of both parties. The outcome may vary significantly should the assumptions and judgements applied not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected by management and applied as basis for their assess-ment of whether a contract is oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management </span>makes judgements related to various other matters and obligations, primarily relating to planned/initiated restructurings, and comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes, including ongoing lawsuits. Management’s assessment of the likely outcome of lawsuits, tax disputes, etc., is based on external legal assistance and established precedents.For large, complex contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the outcome may vary significantly should the judgements and assump-tions applied by management in their assessment of the risks and disputes not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected.Significant accounting judgementsLease term<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Sever<span class="_ _0"/>al of ISS’s lease contr<span class="_ _0"/>acts (office </span>buildings) have no contractual fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed lease term or contains an extension option. Management ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercises judgement in determining whether these extension options ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e reasonably certain to be ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercised. Management considers all r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant facts and circumstances that cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eate an economic incen<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tive for the Group to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cise the extension option.The lease term for contracts without an end date is set to ten years for head office and accessory buildings, whereas all other leases with no definite end date are set to five years.Significant accounting judgementsCloud-based arrangement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At the commencement </span>date, management assesses whether the Group ac-quires an intangible asset, a leased asset or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives a service over the term of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. If the Group receives a right to access the cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider's appli-cation without further rights or control it is neither a lease nor an intangible asset. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group may acquire an intangible asset if the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the contractual right to take possession of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e during the contract period without significant penal-ty and it is feasible for the Group to run the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e on its own har<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dware or with another cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.In SaaS arrangements, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider controls the application software, the assessment of whether configuration or customisation of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e results in an intangible asset for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances or modifies, or creates additional capability to the existing on-pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emise software to enable it to connect with the cloud-based software applications. If activities are performed on the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s infrastruc-ture and applications, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y likely repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent assets that the Group contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ols because they enhance, impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve or customise existing softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e assets.Significant accountingestimatesIn performing the impairment test, manage-ment assesses whether the CGU to which the intangibles relate will be able to gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate positive net cash flows sufficient to support the value of intangibles and other net assets. The assessment is based on estimates of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows (value-in-use) for the individual GCU<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, which by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are uncertain.Estimates are made using financial for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecasts for the following year as appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management, and estimated discount rates, gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth and market developments. Assumptions applied in the short to medium term (forecasting period of five years) generally r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect management’s expecta-tions considering all rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant factors, including estimated optimisations and efficiency gains from impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives, past experience and external sour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ces of information, where possible and rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>erminal growth r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates and margins applied reflects management’s long-term e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth for the individual CGUs, including inflation, and normalised earnings, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.The outcome of the impairment test may vary significantly should the assumptions, estimates and judgements not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected and applied as basis for management’s conclusion of whether impairment of a CGU has occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Significant accounting estimates and judgementsDeferred tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">r<span class="_ _0"/>elating to tax losses carried </span></span>forward ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised, when management assesses that these can be offset against positive taxable income in the foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. The assessment is made at the reporting date taking into account the impact from limitation in inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est deductibility and local tax restrictions in utilisation of tax losses. The assessment of future taxable in-come is based on financial forecasts appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management and expectations on the oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ational development, mainly in terms of organic gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth and operating margin.Management made a reassessment of the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obabili<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-</span>ty that future taxable pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit will be available in the foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e against which the Group can uti<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>lise tax losses (i.e for current year and those carried forward fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om prior years (valuation allowances). The assessment is based on the cash flow pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojections made for the purpose of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> tests, see 3.2, Impairment tests, and repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esents management’s best estimate, but is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e asso<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ciated with significant uncertainty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Uncertain tax positions<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">As part of operating a </span></span>global business, disputes with tax authorities around the world may occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Management peri-odically evaluates positions taken in tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns with respect to situations in which applicable tax regulation is subject to interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etation and consid-ers whether it is probable that a tax authority will accept an uncertain tax treatment. The possible outcome of uncertain tax positions are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed based on management’s best estimate of the amount requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and rec-ognised in deferred tax or income tax depending on the tax position.Significant accounting estimatesActuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is determined on the basis of assumptions about the future de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velop<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment in variables such as salary levels, inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates, inflation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>and mortality<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Applied actuarial assumptions vary from country to country due to local conditions. All assumptions are assessed at the reporting date. Changes in these assumptions may significantly affect the liabilities and pension costs under defined benefit plans. The range and weighted average of these assumptions as well as sensitivities on key assumptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in this note.The discount rates used for calculating the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on the market yield of high-quality corporate bonds or government bonds with a maturity appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oximating to the terms of the defined benefit obligations. When the Group participates in multi-emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer pension plans being accounted for as defined con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tribution plans due to unavailability of information, there is a risk that the plans ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not sufficiently funded. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, information on surplus or deficit in the schemes is not available. 1 Oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ofit ISS is a leading, global pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider of integrated facility service (IFS) to key account customers and the absolute leader in cleaning. With operations in 60+ countries of which 30+ ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e core self-delivery countries, we have a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong global footprint.In recent years, we have successfully trimmed our business. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>oday, we have a global platform, and the gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth agenda will be focused on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>viding IFS to key accounts in thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee prioritised segments; office-based, production-based and healthcare. Our cor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e service offering to customers consists of cleaning, food, technical and workplace services. In 2022, <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">re<span class="_ _0"/>venue<span class="ff4 fc3"> was DKK 76,538 million. Reve-</span></span>nue from ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts increased to 71% (2021: 69%) of Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated higher organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth than non-ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts. IFS share of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue has consistently increased o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the last decade and comprised 51% in 2022. The majority of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue comprises portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue which is contractually committed at<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> the inception of the contract and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring. The remaining r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue is demanded on a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> non-recurring basis and agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed as separate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> transactions.Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue gre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w organically b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y 10%, pos<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>itively impacted by price incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases to offset the rising cost inflation. Revenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om projects and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> above-base work was in line with 2021 despite a decline in deep-cleaning and disinfection services.Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> was DKK </span>2,876 million for an operating margin of 3.8% ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluding impact from IAS 29 (2021: 2.5%).Our business model is based on self-delivery of our core services b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our placemakers – our most important resour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ce. As a result, we incur a sig-nificant amount of employee costs to gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. In 2022, employee costs comprised 66% of total operating costs, and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emained at the level of 2021.Our str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategic focus<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Ke</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">y Account </span>– IFS for key accounts<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">shar</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">e</span>29%71%1)71 76.5KKbnDKKbn51%Key accounts IFS Other1) Group re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venueOur r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenu<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>– high level of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue18%1)76.5DKKbn82%Portfolio Projects <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>and above-base1) Group re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venueOur cost base– self-delivery by our placemakers1)73.7DKKbn66%m Employee <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>costs1) T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otal operating costs1.1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Segments 1.1.1 Operating segmentsISS is a leading, global pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider of workplace and facility service solutions operating in 30+ countries. Operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e generally managed based on a geographical structur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in which countries are gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ouped into regions. The regions have been identified based on a ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y principle of grouping countries that shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e market conditions and cultures. Countries wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e we do not have a full country-based support structure, which are managed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our Global Key Account Organisation, are combined in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate segment “Other countries”.An overvie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of the grouping of countries into regions is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in 8.4, Group companies. Central &amp;OtherT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Unal-Northern<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>Southern Asia &amp; Ameri-coun-seg-located/<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal (DKKm)EuropeEuropePacificcastriesmentseliminationGroup1)2022 2)Revenue, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcl. IAS 29 28,694 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 24,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span> 14,012 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 8,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 606 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span> 76,435 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (51)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span> 76,384 Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11b"> </span> 28,694 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 24,692 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,012 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 8,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 606 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 76,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (51)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _cb"> </span> 76,538 Depreciation and amortisation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> (557)<span class="_ _d7"> </span> (575)<span class="_ _15d"> </span> </span>(147)(97)(4)(1,380)(137)(1,517)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ot befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other2) items, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>excl. IAS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>29 1,519 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>1,108<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 882 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>3,981<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> (1,105)2,876Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15f"> </span> 1,519 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 1,079 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 882 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,952 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,105)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 2,847 Operating margin<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>5.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>4.4%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>6.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>4.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff42 fs24 ls0 ws0"> - <span class="_ _163"> </span></span>3.7%Operating margin, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. IAS 29 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ffad fs47 ls56 ws67">5.3%<span class="_ _55"> </span>4.5%<span class="_ _162"> </span>6.3%<span class="_ _162"> </span>5.2%<span class="_ _162"> </span>4.5%<span class="_ _162"> </span>5.2%<span class="_ _1e"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _163"> </span><span class="ffad fs47 ls56 ws67">3.8%</span></span>Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 45 <span class="_ _34"> </span> </span>(13) 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> (124) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 64 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> (7) 57 Amortisation/impairment of brands and customer contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(16)(27)(4)(22) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (69) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> (69)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> 1,548 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 1,039 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 1,034 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 299 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,947 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,112)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 2,835 2021Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11b"> </span> 27,675 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 23,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 12,381 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 7,141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 71,408 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (45) 71,363 Depreciation and amortisation(659)(581)(212)(109)(3)(1,564)(196)(1,760)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>1,290<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 584 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 735 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 393 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 16 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,018 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,242) 1,776 Operating margin4.7%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>2.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>2.6%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>4.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff42 fs24 ls0 ws0"> - <span class="_ _163"> </span></span>2.5%Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> 431 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> (2) 78 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (66) 439 Goodwill impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> (450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> (450)Amortisation/impairment of brands and customer contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(21)(11)(6)(26) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (64) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> (64)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span>1,267<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 554 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 727 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 16 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 3,009 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,308) 1,701 1) Effective 1 January 2022, the Group reor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ganised its European business into the regions Northern Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope and Central &amp; Southern Europe consistent with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s internal management and reporting structure. As a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult, the Netherlands, Belgium &amp; Luxembourg, Poland and Lithuania were moved fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om Central &amp; Southern Europe (pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eviously Continental Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope) to Northern Europe. Asia &amp; Pacific and Americas remained unchanged. Comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es for 2021 were restated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.2) Effective 1 January 2022, ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey was restated for hyperinflation in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with IAS 29, cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Regional </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>Revenue76.5DKKbn38% Northern32% Central &amp; Southern18% Asia &amp; Pacific11% Americas1% Other<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">pr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ofit</span>1)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit 3.9DKKbn39% Northern26% Central &amp; Southern26% Asia &amp; Pacific0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws67">8% </span>Americas1% Other1) Based on total segments1.1.2 Geographical distributionRevenue(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span> 10,396 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 10,634 US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> 6,387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 5,298 Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span> 5,729 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 5,212 Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span>5,556<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 5,429 Australia &amp; Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w Zealand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 4,868 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 4,349 Spain <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7a"> </span>4,122<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,420 Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 4,016 <span class="_ _d0"> </span> 3,181 </span>Denmark (country of domicile)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 3,169 <span class="_ _5e"> </span> 3,661 </span>  1)Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>32,295<span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 29,179 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 1) Including unallocated items and eliminations.Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue per country is disclosed on p. 119. 2)Non-current assets (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> 3,052 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 3,275 US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> 2,492 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 2,362 Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 2,134 <span class="_ _d0"> </span> 1,723 </span>Denmark (country of domicile) 1,737 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,804 Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 1,434 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,501 Australia &amp; Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w Zealand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 1,396 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 1,411 Spain <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 1,196 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,178 Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> 997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 989   1)Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span> 13,314 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 12,329 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 27,752 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 26,572 1) 2) Excluding deferred tax assets.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0"> Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>Revenue76.5DKKbn14%UK &amp; Ireland8%US &amp; Canada7%Switzerland7%Germany6%Australia &amp; NZ5%Spain5%Norway4%Denmark 44%Other countries<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Non-curr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ent assets</span>Non-current assets27.8DKKbn11%UK &amp; Ireland9%US &amp; Canada8%Switzerland6%Denmark5%Norway5%Australia &amp; NZ4%Spain4%Germany48%Other countriesAccounting policyThe segmentation is consistent with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s strategic management and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting structure applied by the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cludes discontinued operations. Segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e managed primarily based on business perfor-mance measured b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit.Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and costs comprise items that are dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the individual seg-ments. Unallocated items mainly consist of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>v-enue and cost relating to the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s corporate functions. Decisions on financing (financial income and expenses) as well as tax planning (income tax) are managed at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e therefore not managed and allocated to segments. Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is presented including internal re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue which due to the nature of the business is insignificant and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not disclosed. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rans-actions between operating segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made on market terms.The geographical distribution of segment r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and non-current assets is based on the geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aph-ical location of the individual subsidiary from which the sales transaction originates. Significant countries are defined as countries r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresenting more than 5% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as well as the do-micile country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Denmark. No customer comprise more than 10% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue.1.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue1.2.1 Performance obligations Revenue is gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated from r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>endering of workplace and facility service solutions. Our services are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided at the customer's site on a daily basis continuously over the term of the contract. The customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Group. Thus, performance obligations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e satisfied over time. Revenue is split between portfolio and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects and above-base work, with the vast majority stemming from portfolio r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue, appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ox. 82%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> (2021: 81%).<span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span> 62,872 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 57,479 Projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 13,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 13,884 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue comprises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue from contracts with customers that is contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actually agreed (committed) at inception and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to services that we are obligated to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ender on a recurring basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the con-tract. Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects and above-base work (e.g. capital projects) is demanded on a non-recurring basis and agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed separately with the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.1.2.2 Disaggregation of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>evenueAligned with our strategy to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts in three prioritised segments, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e we deliver our core services, we disaggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue based on: • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">customer category;</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">customer segment;</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">services; and</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">geographical r<span class="_ _0"/>egion.</span>We belie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve that these best depict how the natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e, amount, timing and uncertainty of our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e affected by economic factors. (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021Customer category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Key accounts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 54,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 49,238 Large and medium<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c9"> </span> 17,387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 17,958 Small and route-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 4,485 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 4,167 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Customer segments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Office-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16f"> </span>30,647<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a Production-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>18,094<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a Healthcare<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span>10,046<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span> n/a Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span>17,751<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> n/a Core services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Cleaning<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11f"> </span> 34,693 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 34,416 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical <span xmlns="http://www.w3.org/1999/xhtml" class="_ _da"> </span> 16,640 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 16,226 Food<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 10,170 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 7,535 Workplace, incl. Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> 15,035 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 13,186 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Disaggregation of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue based on geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region is disclosed in 1.1, Segments. 1.2.3 Costs to fulfill a contract The size and complexity of ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account contracts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mobilisation costs before service delivery commences in order to be able to fulfill the performance obligations under the con-tracts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprise costs, directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to launching certain large long-term contracts such as tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of employ-ees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing service plans. The cost includes internal direct costs and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal costs, e.g. to consultants.At 31 December 2022, capitalised transition and mobilisation costs amounted to DKK 36 million (2021: DKK 62 million). No significant additional costs were capitalised in 2022. Capitalised transition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresented in 2.2, Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Customers</span>Customer category76.5DKKbn71% Key accounts 23% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>Large and medium0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws75">6% </span> Small <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>and <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>route-basedsegmentsCustomer segments76.5DKKbn40% Office-based24% Production-based13%Healthcare23% OtherservicesCore services76.5DKKbn45% Cleaning22% T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical13%Food20% Workplace, <span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>incl. Other1.2.4 Revenue backlog Our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue base consists of a mix of yearly con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tracts, which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e rene<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed tacitly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, and thousands of multi-year contracts, the majority of which have an initial term of three to five years. Depending on the size and complexity of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, the transition and mobilisation period is normally between six and twelve months for our key accounts. Contracts r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly include options for the customer to terminate for convenience within three to nine months. Ho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, we maintain a high retention r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate of 94% (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. the planned exit of the Danish Defence contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act), both for key accounts and o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verall, supporting that these options are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>arely e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised.As described in 1.2.1, Performance obligations, the vast majority of our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and the remaining part is non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring in the form of projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work. Projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work is not committed as part of the main customer contract and is therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluded from the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price to be allocated to the remaining performance obligation (re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue backlog). In addition, the Group has applied the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions of IFRS 15, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluded the following fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the backlog:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">contracts with a term of less than </span>12 months; and• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">contracts wher<span class="_ _0"/>e the Group invoices a fix<span class="_ _0"/>ed </span>amount for each hour of service pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided.As a result, the amounts disclosed in the matu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>rity table are significantly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than reported<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and will likely not reflect the degr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee of certainty in future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue (and cash inflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws) to<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> t<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>he<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> G<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>rou<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>p.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> As a supplement, in the manage-ment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>view<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, p. 20, a maturity overview for our largest key accounts (&gt; DKK 200 million of annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue) is presented.(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>34%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>21,413<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>33%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>20,3101-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span>54%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>34,407<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>50%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>30,586&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>12%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>7,352<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>17%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>10,148T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>63,172<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>61,044Accounting policyRevenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om contracts with customers is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when control of the services is tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to the cus-tomer at an amount that reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sideration for those services. Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed over time as the customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Services are typically invoiced on a monthly basis at an amount corresponding to the value of the com-pleted performance obligation.Revenue e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcludes amounts collected on behalf of third parties, e.g. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T and duties.The input method is used to measure pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogress towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds complete satisfaction of the service due to the direct r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elationship between labour hours and costs incurred, and the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group recognises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue on the basis of the labour hours and costs expensed relative to the total e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected labour hours and costs to complete the service.Significant accounting estimates and judgementsOur customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on three differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent commercial models r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equiring varying levels of man-agement estimates and judgement in determining the transaction price:1) Fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts;2) Cost-plus contracts; and3) Cost-plus variations (typically capped)For fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is recognised based on the transaction price stated in the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, and thus requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e limited judgement from management.For cost-plus contracts, including variations e.g. with a cap, ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price is determined based on costs incurred with the addition of an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed mark-up/management fee. Determining the transaction price requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es management to assess, which costs may be included in the calculation basis and if rele-vant, whether within the capped maximum.For key accounts and other large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the transaction price may also include a variable consideration based on achie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement of certain key performance indicators and gain share. Manage-ment estimates variable consideration based on the most likely amount to which it expects to be entitled on a contract-b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y-contract basis. Management makes a detailed assessment of the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived and the probability of suc-cess in each case. Variable consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is included in re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as services are performed to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that it is highly probable that the amount will not be subject to significant re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal.Price adjustment mechanisms in our customer contracts vary in terms of content and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent. Judgement is requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by management to determine the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived as a result of inflationary pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>essure on costs of delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Contract modifications r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, particularly for key account customers, in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der to ensure that service solutions reflect their curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent needs. Such modifications are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally agreed with the cus-tomer in advance as per the contract in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with a specified change management procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and accounted for going forward with no impact on recognised r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue up to the date of modification. Management assess how quickly ISS would be able to implement the scope changes of the service.Gross or net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentation of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls20 ws27"> Management </span>uses judgement to determine whether the nature of ISS’s pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>omise is to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the specified services (ISS is the principal), or to arrange for another party to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the services (ISS is acting as an agent). This assessment is based on an evaluation of whether ISS controls the specified services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e transfer to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group has concluded that as a main rule it is the principal in its re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue arrangements, because it typically controls the services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e trans<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferring them to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and consequently as a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> main rule recognises r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss basis.1.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs(DKKm)Note<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>2021Wages and salaries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 38,803 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 37,214 Social security costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 5,950 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5,581 Pensions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,448 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,376 Share-based payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span>6.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 80 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _77"> </span> 2,048 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 2,136 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 48,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 46,369 Average number of employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 352,792 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 362,789 Our strategy is based on self-delivery of our core services b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our placemakers. Our business model is asset light and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e employee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> costs is our single largest cost category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.In 2022, employee costs comprised 66% of the total operating costs (2021: 67%) and wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e positively impacted by a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efund of collective insurance pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emiums paid in prior years in Swe<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>den of DKK 23 million (2021: DKK 78 million).Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants In 2022, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised government grants of DKK 159 million (2021: DKK 135 million) in the form of wage subventions, which have been recognised as a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eduction of employee costs. The grants compensate the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup primar<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ily for social security<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, wage increases as well as employing certain categories of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees such as trainees, disabled persons, long-term unem<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ployed and emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees in certain age groups.In addition, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived Covid-19 gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants during the pandemic to compensate costs relat-ed to e.g. employees on furlough, social security contribution and sick pay compensation. With the cessation of the pandemic, the grants have gradually lapsed. In 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup recognised Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated grants of DKK 122 million (2021: DKK 432 million), mainly in the US, Hong Kong and Sweden.1.4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Other income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses, net (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>2021Gain on divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> 206 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 604 IT security incident<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 7 Other income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _da"> </span> 206 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 611 Loss on divestments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span> (124)(34)Integration costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(7) - Acquisition costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> (4)<span class="_ _5e"> </span> </span>(77)Ceased held for sale classification<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (59)Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _eb"> </span> (14)(2)Other expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span> (149)(172)Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 57 <span class="_ _37"> </span> 439 </span>Gain on divestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly related to the </span>Waste Management business in Hong Kong and the damage control business in the UK. In 2021, gain on divestments mainly related to Kanal Services in Switzerland and Specialized Services in the US. Loss on divestments <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">mainly comprised to a </span>withdrawal liability on a multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer plan in the US related to the divestment of the Specialized Services business in December 2021. In 2021, the loss mainly related to adjustments to prior years’ divestments and the divestment of the Fruit Baskets business in Sweden.Acquisition costs<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly related to the acquisi-</span>tion of Livit FM Services AG in Switzerland (2021: Rönesans Facility Management Company). Accounting policyOther income and expenses, net consists of recurring and non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring items that manage-ment does not consider to be part of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities, i.e. gains and losses on divestments, remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of disposal groups classified as held for sale, carrying amount adjustments regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding ceased held for sale classi-fication, the winding-up of operations, disposal of property and acquisition and integr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs.Other income and expenses, net ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separately fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities as management believes that this best reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s financial performance.Integration costs<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> r<span class="_ _0"/>elated to the acquisition of </span>Livit FM Services AG in Switzerland.Ceased held for sale classification<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised </span>depreciation and amortisation for the years 2019 to 2020 due to the ceased held for sale classification of Chile in 2021. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised mainly costs related to wind-</span>ing-up of a minor business in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 1.1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Segments 1.1.1 Operating segmentsISS is a leading, global pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider of workplace and facility service solutions operating in 30+ countries. Operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e generally managed based on a geographical structur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in which countries are gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ouped into regions. The regions have been identified based on a ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y principle of grouping countries that shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e market conditions and cultures. Countries wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e we do not have a full country-based support structure, which are managed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our Global Key Account Organisation, are combined in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate segment “Other countries”.An overvie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of the grouping of countries into regions is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in 8.4, Group companies. Central &amp;OtherT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Unal-Northern<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>Southern Asia &amp; Ameri-coun-seg-located/<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal (DKKm)EuropeEuropePacificcastriesmentseliminationGroup1)2022 2)Revenue, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcl. IAS 29 28,694 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 24,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span> 14,012 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 8,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 606 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d6"> </span> 76,435 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (51)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span> 76,384 Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11b"> </span> 28,694 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 24,692 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,012 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 8,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 606 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 76,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (51)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _cb"> </span> 76,538 Depreciation and amortisation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> (557)<span class="_ _d7"> </span> (575)<span class="_ _15d"> </span> </span>(147)(97)(4)(1,380)(137)(1,517)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ot befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other2) items, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>excl. IAS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>29 1,519 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15e"> </span>1,108<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 882 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>3,981<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> (1,105)2,876Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15f"> </span> 1,519 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 1,079 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 882 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,952 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,105)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 2,847 Operating margin<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>5.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>4.4%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>6.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>4.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff42 fs24 ls0 ws0"> - <span class="_ _163"> </span></span>3.7%Operating margin, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. IAS 29 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ffad fs47 ls56 ws67">5.3%<span class="_ _55"> </span>4.5%<span class="_ _162"> </span>6.3%<span class="_ _162"> </span>5.2%<span class="_ _162"> </span>4.5%<span class="_ _162"> </span>5.2%<span class="_ _1e"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _163"> </span><span class="ffad fs47 ls56 ws67">3.8%</span></span>Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 45 <span class="_ _34"> </span> </span>(13) 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> (124) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 64 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> (7) 57 Amortisation/impairment of brands and customer contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(16)(27)(4)(22) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (69) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> (69)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> 1,548 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 1,039 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 1,034 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 299 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,947 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,112)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 2,835 2021Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11b"> </span> 27,675 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 23,585 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 12,381 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 7,141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 71,408 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (45) 71,363 Depreciation and amortisation(659)(581)(212)(109)(3)(1,564)(196)(1,760)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>1,290<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 584 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 735 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 393 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 16 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 3,018 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,242) 1,776 Operating margin4.7%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>2.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>5.5%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>2.6%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>4.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff42 fs24 ls0 ws0"> - <span class="_ _163"> </span></span>2.5%Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> 431 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> (2) 78 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (66) 439 Goodwill impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> (450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> (450)Amortisation/impairment of brands and customer contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(21)(11)(6)(26) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (64) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> (64)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span>1,267<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 554 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 727 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 16 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 3,009 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (1,308) 1,701 1) Effective 1 January 2022, the Group reor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ganised its European business into the regions Northern Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope and Central &amp; Southern Europe consistent with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s internal management and reporting structure. As a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult, the Netherlands, Belgium &amp; Luxembourg, Poland and Lithuania were moved fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om Central &amp; Southern Europe (pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eviously Continental Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope) to Northern Europe. Asia &amp; Pacific and Americas remained unchanged. Comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es for 2021 were restated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.2) Effective 1 January 2022, ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey was restated for hyperinflation in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with IAS 29, cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Regional </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>Revenue76.5DKKbn38% Northern32% Central &amp; Southern18% Asia &amp; Pacific11% Americas1% Other<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">pr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ofit</span>1)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit 3.9DKKbn39% Northern26% Central &amp; Southern26% Asia &amp; Pacific0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws67">8% </span>Americas1% Other1) Based on total segments1.1.2 Geographical distributionRevenue(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span> 10,396 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 10,634 US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> 6,387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 5,298 Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span> 5,729 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 5,212 Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span>5,556<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 5,429 Australia &amp; Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w Zealand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 4,868 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 4,349 Spain <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7a"> </span>4,122<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,420 Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 4,016 <span class="_ _d0"> </span> 3,181 </span>Denmark (country of domicile)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 3,169 <span class="_ _5e"> </span> 3,661 </span>  1)Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>32,295<span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 29,179 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 1) Including unallocated items and eliminations.Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue per country is disclosed on p. 119. 2)Non-current assets (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> 3,052 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 3,275 US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> 2,492 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 2,362 Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 2,134 <span class="_ _d0"> </span> 1,723 </span>Denmark (country of domicile) 1,737 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,804 Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 1,434 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,501 Australia &amp; Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w Zealand<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 1,396 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 1,411 Spain <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 1,196 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 1,178 Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> 997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 989   1)Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span> 13,314 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 12,329 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 27,752 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 26,572 1) 2) Excluding deferred tax assets.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0"> Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>Revenue76.5DKKbn14%UK &amp; Ireland8%US &amp; Canada7%Switzerland7%Germany6%Australia &amp; NZ5%Spain5%Norway4%Denmark 44%Other countries<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Non-curr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ent assets</span>Non-current assets27.8DKKbn11%UK &amp; Ireland9%US &amp; Canada8%Switzerland6%Denmark5%Norway5%Australia &amp; NZ4%Spain4%Germany48%Other countriesAccounting policyThe segmentation is consistent with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s strategic management and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting structure applied by the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cludes discontinued operations. Segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e managed primarily based on business perfor-mance measured b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit.Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and costs comprise items that are dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the individual seg-ments. Unallocated items mainly consist of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>v-enue and cost relating to the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s corporate functions. Decisions on financing (financial income and expenses) as well as tax planning (income tax) are managed at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e therefore not managed and allocated to segments. Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is presented including internal re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue which due to the nature of the business is insignificant and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not disclosed. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rans-actions between operating segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made on market terms.The geographical distribution of segment r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and non-current assets is based on the geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aph-ical location of the individual subsidiary from which the sales transaction originates. Significant countries are defined as countries r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresenting more than 5% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as well as the do-micile country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Denmark. No customer comprise more than 10% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Accounting policyThe segmentation is consistent with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s strategic management and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting structure applied by the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cludes discontinued operations. Segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e managed primarily based on business perfor-mance measured b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit.Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and costs comprise items that are dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the individual seg-ments. Unallocated items mainly consist of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>v-enue and cost relating to the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s corporate functions. Decisions on financing (financial income and expenses) as well as tax planning (income tax) are managed at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e therefore not managed and allocated to segments. Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is presented including internal re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue which due to the nature of the business is insignificant and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not disclosed. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rans-actions between operating segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made on market terms.The geographical distribution of segment r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and non-current assets is based on the geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aph-ical location of the individual subsidiary from which the sales transaction originates. Significant countries are defined as countries r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresenting more than 5% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as well as the do-micile country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Denmark. No customer comprise more than 10% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Accounting policyThe segmentation is consistent with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s strategic management and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting structure applied by the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cludes discontinued operations. Segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e managed primarily based on business perfor-mance measured b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit.Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and costs comprise items that are dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the individual seg-ments. Unallocated items mainly consist of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>v-enue and cost relating to the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s corporate functions. Decisions on financing (financial income and expenses) as well as tax planning (income tax) are managed at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e therefore not managed and allocated to segments. Segment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is presented including internal re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue which due to the nature of the business is insignificant and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not disclosed. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rans-actions between operating segments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made on market terms.The geographical distribution of segment r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and non-current assets is based on the geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aph-ical location of the individual subsidiary from which the sales transaction originates. Significant countries are defined as countries r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresenting more than 5% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as well as the do-micile country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Denmark. No customer comprise more than 10% of Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue.Accounting policyRevenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om contracts with customers is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when control of the services is tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to the cus-tomer at an amount that reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sideration for those services. Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed over time as the customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Services are typically invoiced on a monthly basis at an amount corresponding to the value of the com-pleted performance obligation.Revenue e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcludes amounts collected on behalf of third parties, e.g. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T and duties.The input method is used to measure pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogress towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds complete satisfaction of the service due to the direct r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elationship between labour hours and costs incurred, and the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group recognises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue on the basis of the labour hours and costs expensed relative to the total e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected labour hours and costs to complete the service.Accounting policyOther income and expenses, net consists of recurring and non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring items that manage-ment does not consider to be part of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities, i.e. gains and losses on divestments, remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of disposal groups classified as held for sale, carrying amount adjustments regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding ceased held for sale classi-fication, the winding-up of operations, disposal of property and acquisition and integr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs.Other income and expenses, net ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separately fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities as management believes that this best reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s financial performance.Integration costs<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> r<span class="_ _0"/>elated to the acquisition of </span>Livit FM Services AG in Switzerland.Ceased held for sale classification<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised </span>depreciation and amortisation for the years 2019 to 2020 due to the ceased held for sale classification of Chile in 2021. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised mainly costs related to wind-</span>ing-up of a minor business in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Accounting policyT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise invoiced and unbilled </span>re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Unbilled re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue represents service deliv-eries where the performance obligation has been fulfilled, but not yet invoiced.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised initially at the transaction price and subsequently measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at am-ortised cost. Due to its short-term nature, amortised cost will equal the invoiced amount less expected credit losses. An impairment analysis is performed at each reporting date using a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision matrix to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision rates are based on days past due for grouping of customer segments with similar loss patterns, e.g. by geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region, customer type and rating. The calculation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the probability-weighted outcome, the time value of money<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, reasonable and supportable information about past events, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent conditions and forecasts of future economic conditions.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally written off if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e past due more than 180 days or when ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e is no reasonable e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectation of reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rite-offs are presented in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. Subsequent reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very of write-offs or re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal of expected credit losses are cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edited against the same line item.Factoring <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">and participation in customers’ supply chain </span>finance arrangements (factoring) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly used to optimise cash collection and to finance working capital impacts related to gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth with certain ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> account customers, including from gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pressur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> for longer payment terms and necessary investments in transition and mobilisation of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables subject to factoring agreements are der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised once the derecognition criteria have been met and all substantial risks and re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wards have been transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the factor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Once the trade receivables have been der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, the Group does not carry any risk and has no continuing involvement in these trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables.Accounting policyOther receivables comprise various items of different natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and thus different measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement methods are applied. As these items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered individually immaterial the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented together as Other receivables.Except for the items described belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, other receivables ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised initially at cost and subsequently at amortised cost. Due to the short-term nature of other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, amortised cost will equal the cost. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">(costs to fulfill </span>a contract) comprise costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly related to start-up of operations of certain large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, e.g. transfer of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing ser-vice plans. The costs include internal direct costs and external costs e.g. to consultants.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capitalised and amortised over the initially secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Bid-related costs, in-cluding costs relating to sales work and securing contracts, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expensed as incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Sign-on fees <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise upfront discounts to </span>certain large customers incurred in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of business. Sign-on fees are capitalised and amortised over the initial secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at fair </span>value.Accounting policyPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when the Group, as a result of a past e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vent, has a present legal or con-structive obligation, it is probable that an outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of economic benefits will be requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and a reliable estimate can be made of the amount of the obligation. The costs requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation are discounted using the entity’s average borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owing r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, if this significantly impacts the measurement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Legal disputes and claims<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, e.g. lawsuits and other </span>disputes, based on external legal assistance and established precedents.Self-insurance <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">on emplo<span class="_ _0"/>yers’ liability and/or workers </span>compensation based on valuations from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal actuaries. Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> when a detailed, formal restructuring </span>plan is announced to the affected parties on or before the reporting date. The plan must identify the busi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ness concerned, the location and number of employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees affected, and a detailed estimate of the associated costs, as well as the timeline must be in place. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, when the unavoidable costs, </span>including directly allocated o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead costs, of meet-ing the obligations under the contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the economic benefits expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived under it, corresponding to the lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer of the costs to fulfil the obligations under the contract and the costs of exiting the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated disputes<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> based on </span>an assessment of available facts and circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual or constructive obligation exists, and it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obable that this will lead to an outflow of economic r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources from the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Decommissioning liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, if the Group has a </span>legal obligation to dismantle or remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve an asset or restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a site or leased facilities when vacated. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision corresponds to the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected costs to settle the obligation.The present value of the obligation is included in the cost of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tangible or right-of-use asset and depreciated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated future costs of decommissioning are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed annually and adjusted as appropriate. Changes in the estimated future costs, or in the discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate applied, are added to or deducted from the cost of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant asset.Contingent assets and liabilitiesContingent liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f ws78">comprise: </span>1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>possible obligations that arise from a past event and whose existence will only be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents; and2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>obligations that are not recognised as the amount cannot be measured sufficiently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eliable or it is not probable that economic benefits will be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to settle the obligation.Contingent assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f"> are possible assets whose </span>existence will be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurrence of uncertain futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e events that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not wholly within the control of the entity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Contingent assets and liabilities are not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, but disclosed in the notes.Accounting policyRight-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at the com-</span>mencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of lease liabilities, including extension options. Cost comprises the amount of lease liabilities recognised, initial dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect costs, dismantling and restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs incurred and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Estimated useful lifeProperties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">5-10 years</span>Cars3-5 yearsOther equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">2-5 years</span>Certain leases have a term of 12 months or less or are leases of lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-value assets, such as minor cleaning and IT equipment and office furniture. The recognition e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e applied for these leases and lease payments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the lease term. Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is measured at </span>cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the acquisition until the date when the asset is ready for use. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of estimated liabilities related to dismantling and remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ving the asset and restoring the site on which the asset is located is added to the cost.Subsequent costs, e.g. for replacing parts of an item, are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the cost of the asset if it is probable that the futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits embod-ied by the item will flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w to the Group. The carrying amount of the item is derecognised when r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eplaced and transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to profit or loss. All other costs for common repairs and maintenance ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in profit or loss when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. Depreciation is based on the cost of an asset less its residual value. When parts of an item of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment have different useful lives, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are accounted for separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated useful life and residual value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e determined at the acquisi-tion date. If the residual value e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds the carrying amount depreciation is discontinued. Depreciation is calculated on a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aight-line basis over the estimated useful lives of the assets.Estimated useful lifePlant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">3-10 years</span>Leasehold impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vements (lease term)3-10 yearsBuildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">20-40 years</span>Land is not depreciated.Depreciation methods, useful lives and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esidual values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eassessed at each reporting date and adjusted prospectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if appropriate. Gains and losses arising on the disposal or retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment are measured as the differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence between the selling price less direct sales costs and the carrying amount, and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses in the year of sale, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept gains and losses arising on disposal of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which are recognised in Other income and expenses, net.Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets.Accounting policyIntangible assets with an indefinite useful life, i.e. goodwill and the ISS brand, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e subject to impairment testing annually or when circumstanc-es indicate that the carrying amount may not be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable. Other non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets are tested annually for indications of impairment.If an indication of impairment exists, the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecover-able amount of the asset is determined, i.e. the higher of the fair value of the asset less antici-pated costs of disposal and its value-in-use. The value-in-use is calculated as the present value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the asset or the CGU to which the asset belongs.The carrying amount of goodwill is tested for impairment together with the other non-current assets in the CGU to which goodwill is allocated. Management believes that the value of the ISS brand supports the ISS Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup in its entirety rather than any individual C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly, the ISS brand is tested for impairment at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level. The impairment test is based on group-wide cash flows adjusted for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s total goodwill and other non-current assets.An impairment loss is recognised in the statement of profit or loss in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate line if the carrying amount of an asset or CGU e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds its estimated reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount.Impairment of goodwill is not re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed. Impair-ment of other assets is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed if estimates used to calculate the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount have been changed. An impairment loss is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed to the extent that the carrying amount does not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the carrying amount that would have been deter-mined, net of depreciation and amortisation, if no impairment loss had been recognised.Accounting policyBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate of the consideration transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee. For each business com-bination, the Group elects whether to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the non- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests in the acquiree at fair value or at the proportionate shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of the acquiree’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s identifiable net assets. Acquisition-related costs are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses, net. Any contingent consideration to be tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the acquirer is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acqui-sition date.If uncertainties exist at the acquisition date r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-garding identification or measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of assets, liabilities and contingent liabilities, initial recognition is based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values. Changes to fair values are adjusted against goodwill up until 12 months after the acquisition date and comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated accordingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Thereafter no adjustments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made to goodwill, and changes in fair values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other income and expenses, net. Goodwill is initially measured at cost (being the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcess of the aggregate of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and the amount recognised for non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interests) and any pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vious interest held o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s cash-generating units (CGUs) that are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected to benefit from the combination, irr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective of whether other assets or liabilities of the acquiree are assigned to those units.Accounting policyDivestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">Gain or loss on disposal of an opera-</span></span>tion that is part of a CGU includes a portion of the related goodwill allocated to that C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Goodwill related to the disposed oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is measured based on the fair value of the disposed operation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elative to the fair value of the entire C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU.Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5b"> comprise non-current assets </span>and disposal groups held for sale. Liabilities held for sale are those dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly associated with the assets held for sale and disposal groups. Immediately befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e classification as held for sale, they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in accordance with the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policies. Thereafter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, they are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at the lower of their carrying amount and fair value less costs to sell. Any impairment loss is first allocated to goodwill, and then pro r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ata to remaining assets, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept that no loss is allocated to inventories, financial assets, deferred tax assets or employee benefit assets, which continue to be measured in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s account<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing policies. Once classified as held for sale, assets are not amortised or depreciated.Impairment losses on initial classification as held for sale, and subsequent gains and losses on remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss and disclosed in the notes. Assets held for sale are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in separate lines of the statement of financial position and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not restated. A disposal group is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">discontinued<span class="ff5"> </span></span>operations<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> if it is a geogr<span class="_ _0"/>aphical area, i.e. a C<span class="_ _0"/>GU </span>(country), that either has been disposed of, or is classified as held for sale. Discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately as Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restated. Cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating, investing and financing activities together with cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om continuing operations, but separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately specified in this note.Retained earnings<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0"> <span class="ff4 fc3">is the Group<span class="_ _0"/>’s fr<span class="_ _0"/>ee reserves, </span></span>which includes share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium. Share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium comprises amounts above the nominal shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capital paid by shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders when shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued by ISS A/S. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0">comprises foreign ex<span class="_ _0"/>change </span>differences arising fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the translation of financial statements of foreign entities with a functional currency other than DKK as well as fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the trans-lation of non-current balances which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered part of the investment in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities and fair value adjustments of net investment hedges. On full realisation of a for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entity where contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is lost the accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjust-ments are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss in the same line item as the gain or loss. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> The cost of acquisition and pro-</span>ceeds from sale of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in reserve for tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares. Dividends r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived in relation to tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in retained earnings. Proposed dividends<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> ar<span class="_ _0"/>e recognised as a liability </span>at the date when they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e adopted at the annual general meeting (declar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation date). Dividends proposed for the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e shown in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate reserve under Equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Accounting policyIssued bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>bank loans <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">are r<span class="_ _0"/>ecognised </span>initially at fair value net of directly attributable transaction costs and subsequently at amortised cost using the effective interest method. Any difference between the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceeds initially received and the nominal value is recognised in Financial expenses o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the loan. At the date of borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing,<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> financing fees</span> are recognised as part of loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings and subsequently amortised over the term of the loan and recognised in Financial e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses. Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> At the commencement date, the </span>Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognises lease liabilities at the present val<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ue of the lease payments to be made over the lease term. Lease payments include fixed payments less any incentive payments, variable lease payments that depend on an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, e.g. when a mini<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>mum indexation is applied, and amounts e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be paid under residual value guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees. Lease payments also include the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercise price of a pur<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>chase option reasonably certain to be e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised by the Group and payment of penalties for terminating a lease, if the lease term reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>er<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>cising the option to terminate. The present value is calculated using the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s incremental borrowing rate if the inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate implicit in the lease is not readily determinable. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the lease liability is measured at amortised cost using the effective interest meth-od. The liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a modifica-tion, a change in lease term or a change in the assessment to purchase the underlying asset. Also, the liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a change in future lease payments (e.g. a change in an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate) or due to a change in the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s estimate of the amount expected to be payable under a residual guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antee.Accounting policyThe interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap qualifies as a fair value hedge as the risk being hedged is the possible change in the fair value of a recognised liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The carrying amount of the hedged item is adjusted for fair value changes attributable to the risk being hedged and changes are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss.Derivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised.Income tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprises current tax and changes in </span></span>deferred tax, including effects fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in tax rate, and is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss or other comprehensive income.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax receivables and payables<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised in </span>the statement of financial position as tax comput-ed on taxable income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, adjusted for tax on taxable income prior years and tax paid on account.Accounting policyDeferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is pr<span class="_ _0"/>ovided using the liability </span>method on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences between tax bases of assets and liabilities and their carrying amounts. Deferred tax is not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences relating to goodwill which is not deductible for tax purposes and other items where tempor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ary differences, apart fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om in business combinations, arose at the time of acquisition without affecting either Net profit or taxable income. Where alternative taxation rules can be applied to determine the tax base, deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to manage-ment’s intended use of the asset or settlement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to the taxation rules and tax rates in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective countries applicable at the reporting date when the deferred tax becomes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent tax. Deferred tax assets, including the tax base of tax loss carryforwards, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets at the expected value of their utilisation, 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 and jurisdiction.Deferred tax assets and liabilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset if the Group has a legal right to offset these, intends to settle these on a net basis or to realise the assets and settle the liabilities, simultaneously<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.The value of services received in e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange for granted performance-based shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (PSUs) and restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (RSUs) are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the grant date and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in employee costs o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the vesting period with a corresponding incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, as both of the schemes are equity-settled. The fair value of granted PSUs under the long-term incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme is measured using a generally accepted valuation model taking into consideration the terms and conditions upon which the PSUs were gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anted including mar-ket-based vesting conditions (T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Shareholder Return (TSR) condition). On initial recognition, an estimate is made of the number of PSUs and RSUs expected to vest. The estimated number is subsequently re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vised for changes in the number of PSUs and RSUs expected to vest due to non-market based vesting conditions.Accounting policyContributions to <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">defined contribution plans</span> are recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs when the related service is pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided. Any contributions outstanding are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other liabilities.Defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Group’<span class="_ _5"/>s net obligation </span>is calculated by a qualified actuary using the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o-jected unit credit method, separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately for each plan by estimating the amount of futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e benefits that employees have earned in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn for their service in the current and prior periods. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value less the fair value of any plan assets is recognised in Pensions and similar obligations. When the calculation results in a potential asset, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ec-ognition is limited to the present value of economic benefits available in the form of future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efunds from or reductions in futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e contributions to the plan. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o calculate the present value, consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is given to applicable minimum funding requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements. Pension costs are calculated based on actuarial es-timates and financial expectations at the beginning of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Service costs are recognised in Employee costs and net interest is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial expenses. Differences between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected development in pension assets and liabilities and the realised amounts at the reporting date ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e designated actuarial gains or losses and recognised in other comprehensive income. When the benefits are changed or a plan is curtailed, the resulting change in benefits that r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to past service or the gain or loss on curtailment is recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs. Gains and losses on settlement is recognised when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The aggregated value of unfunded plans is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-sented as a net liability and the aggregated value of funded plans are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as a net asset. Other long-term employee benefits <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">ar<span class="_ _0"/>e recognised </span>as defined pension plans, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept that actuarial gains and losses are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Employee costs. Other long-term employee benefits comprise jubilee benefits, long-service or sabbatical leave, etc.Accounting policyInflation restatement Non-monetary items<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, which are carried at historical </span>cost, such as goodwill, customer contracts, right-of-use assets, property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment and de<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferred tax, have been r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated for the effect of inflation based on changes in the price index for the period from initial r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition to 31 December 2022 or to the date of disposal, where r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant. The r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatement was made effective from the time, the items wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e initially recognised, which was no earlier than 2005, when ISS first entered T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey through an acquisition.The restating gain or loss r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to the change in the price index for the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period has been recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss under financial income or expenses, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept for the tax effect, which has been recognised under income tax. The gain or loss r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to the prior periods has been recognised in other comprehensive income.Management has assessed whether the restatement of non-monetary items repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esents an indication of impairment to ensure that the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated amounts do not ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceed the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts of the assets, see 3.2, Impairment tests.Monetary items <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">such as receivables, payables, loans </span>and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings are not subject to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatement for the effects of inflation as these items already r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect the purchasing po<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer at the reporting date.Equity<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0 ws0"> <span class="ff4 fc3 ls5f">includes the opening effect of restating </span></span>non-monetary items. Further<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the restatement effects of inflation based on changes in the price index for the reporting period have been r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income with set-off within financial income or expenses in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss.Profit or loss <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">tr<span class="_ _0"/>ansactions in the period have been </span>restated to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect changes in the price index fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the time of transaction to the end of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period, with the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ception of depreciation and amortisation. The latter have been recalculated based on the inflation-adjusted costs of intangible assets and right-of-use assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment. The<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> recalculation has been based on the useful lives of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant assets based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, cf. 2.6, Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty, plant and equipment.Cash flow statement<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Oper<span class="_ _0"/>ating profit befor<span class="_ _0"/>e other </span>items includes a non-cash effect from the inflation restatement, which has been eliminated in the line Non-cash items related to hyperinflation.Price index Restatement for hyperinflation of the financial state<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ments of the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish subsidiary was based on the development in the consumer price inde<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish Statistical Institute. For 2022, the inflation rate in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey was 64%.Retranslation fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om TRY to DKK The financial statements of the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, including effects of inflation restatement, have been translated into DKK applying the TRY/DKK e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rate at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date as opposed to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s normal practice of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslating the profit or loss using the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date or an average e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate for the month. The TRY/DKK ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate decr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased from 50.53 at the beginning of 2022 to 37.25 at 31 December 2022. The average TRY/DKK e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange for the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period was 43.00.8.1 Gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al accounting policiesISS A/S is listed on Nasdaq Copenhagen. The consolidated financial statements of ISS A/S for the year ended 31 December 2022 comprise ISS A/S and its subsidiaries (collectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group). Signifi-cant subsidiaries are listed in 8.4, Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies.The 2022 Annual Report for ISS A/S was discussed and appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ved by the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management Board (the EGMB) and the Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d of Directors (the Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d) on 23 February 2023 and issued for appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>val at the subsequent annual general meeting on 13 April 2023. Basis of prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ation The consolidated financial statements of the Group have been pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epared in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with IFRS as adopted by the EU and additional requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements of the Danish Financial Statements Act. In addition, the consolidated financial statements have been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in compliance with the IFRSs issued by the IASB. The consolidated financial statements have beenprepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed on the basis that the Group willcontinue to operate as a going concern.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s significant accounting policies and accounting policies related to IAS 1 minimum presentation items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e described in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes to the consolidated financial statements. A list of the notes is shown on p. 50.All amounts have been rounded to near<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est DKK million (DKKm), unless otherwise stated.Fair value measurement and disclosur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Items are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at historical cost, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for assets and liabilities held for sale, derivative financial instruments and contingent consider<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ation that have been measured at fair value.Assets and liabilities measured at fair value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e categorised within the fair value hierar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chy and disclosed in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes.For the purpose of fair value disclosures, management has assessed that the fair values of cash and cash equivalents, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, contingent consideration, tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other current and non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent financial assets and liabilities appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximates their carrying amount largely due to the short-term matur-ities of these instruments. The fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, including methods and assumptions used to estimate the fair value, are disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings.Climate-related risks Management has considered the impact of cli-mate-related risks which did not have a material impact on the estimates and judgements in these consolidated financial statements, includ-ing impairment. In addition, it is management's assessment that climate change is not expected to have a significant impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s going concern assessment, or in the long-term (next five years).Defining materiality The consolidated financial statements separately present items that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered individually significant, or are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired under the minimum presentation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equirements of IAS 1. In addi-tion, information that is considered material, either individually or in combination with other information, is disclosed.In determining whether an item is individually significant, or information is material, ISS consid-ers both quantitative and qualitative factors. If the presentation or disclosur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e could reasonably be expected to influence economic decisions made by primary users, the information is considered material. Explanatory disclosure notes r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the consolidated financial statements are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented for individually significant items. Where separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate presentation of a line item is made solely due to the minimum presentation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equirements in IAS 1, no further disclosures ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in respect of that line item.Basis of consolidation The consolidated financial statements comprise ISS A/S and entities controlled b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS A/S. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intra-gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup balances, income, expenses and cash flow r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to transactions between members of the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e eliminated. Unre-alised losses are eliminated in the same way as unrealised gains, but only to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that there is no e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vidence of impairment.The non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est’s shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of net profit and equity of subsidiaries, which are not whol-ly-owned, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit and equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, but disclosed separately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. By virtue of agreement certain non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling shareholders ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e only eligible of receiving benefits from their non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interest when ISS as controlling shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholder has received their initial investment and compound interest on such. In such instances the subsidiaries’ result and equity are fully allocated to ISS until the point in time where ISS has r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised amounts ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeding their investment including compound interest on such. A change in ownership inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est of a subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, without loss of control, is accounted for as an equity transaction. If the Group loses contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol over a subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, it derecognises the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated assets (including goodwill), liabilities, non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est and other components of equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, while any resultant gain or loss is recognised in Other income and expenses, net. Any investment r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etained is recognised at fair value on initial r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition. Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ency The consolidated financial statements are presented in Danish kr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oner (DKK), which is ISS A/S’s functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansactions in currencies other than the functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency of the respective Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies are consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed transactions denominated in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign currencies.On initial recognition, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept for companies operating in hyperinflationary envir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>onments, these are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated to the respective functional currencies of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date. Foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments arising between the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date and at the date of payment are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial income or Financial expenses. Receivables, payables and other monetary items denominated in foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>encies are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> translated at the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at the report<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing date. The difference between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date and at the date of transaction or the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate in the latest financial statements is recognised in Financial income or Financial expenses. On recognition in the consolidated financial statements of Group companies with a func-tional currency other than DKK, the statements of profit or loss and statements of cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the transaction date and the statements of financial position are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the reporting date. An aver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>age ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate for the month is used as the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date to the extent that this does not significantly deviate fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date. Foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments arising on translation of the opening balance of equity of foreign entities at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date and on translation of the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss statements from the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at the transaction date to the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date are recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income and presented in equity under a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate translation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if the foreign entity is a non-wholly owned subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the relevant proportion of the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslation difference is allocated to the non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est. Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of balances with foreign entities which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered part of the investment in the entity are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in equity under a separate tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslation reserve.8.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Change in accounting policiesFrom 1 January 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has adopted the below standar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds and interpretations with no sig<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>nificant impact on recognition and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement: • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Amendments to IAS 37 Pro<span class="_ _0"/>visions, Contingent </span>Liabilities and Contingent Assets: Onerous Contracts – Costs of Fulfilling a Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act.• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Amendments to IFRS 3 Business Combinations </span>– Reference to the Conceptual Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ameworkIAS 29 Financial Reporting in Hyperinflation EconomiesEffective 1 January 2022, the Group implement-ed IAS 29, Financial Reporting in Hyperinfla-tionary Economies, as management considered T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y as a hyperinflationary environment. Management based its assessment on the cumulative three-year inflation, which e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeded the threshold of 100% in February 2022. As a result, the financial statements of ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey for 2022 were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated for hyperinflation before the reported amounts wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e translated to the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, DKK, applying the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date. Since the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, DKK, is a non-hyperinflationary currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, IAS 29 does not requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restatement of compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ative figures in the year of implementation. Consequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es have not been restated.The implementation impact and the applied accounting policies are disclosed in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.8.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w accounting r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egulationsIASB issued amended standards and interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-tations, which are not yet mandatory for the consolidated financial statements of the Group at 31 December 2022.The Group e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpects to adopt the new standar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds and interpretations when the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y become mandatory<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Based on the current business setup and le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel of activities, none of these standards and interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-tations are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to have a material impact on the recognition and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement in the consolidated financial statements. 1.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue1.2.1 Performance obligations Revenue is gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated from r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>endering of workplace and facility service solutions. Our services are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided at the customer's site on a daily basis continuously over the term of the contract. The customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Group. Thus, performance obligations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e satisfied over time. Revenue is split between portfolio and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects and above-base work, with the vast majority stemming from portfolio r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue, appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ox. 82%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> (2021: 81%).<span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span> 62,872 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 57,479 Projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 13,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 13,884 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue comprises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue from contracts with customers that is contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actually agreed (committed) at inception and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to services that we are obligated to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ender on a recurring basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the con-tract. Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects and above-base work (e.g. capital projects) is demanded on a non-recurring basis and agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed separately with the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.1.2.2 Disaggregation of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>evenueAligned with our strategy to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts in three prioritised segments, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e we deliver our core services, we disaggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue based on: • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">customer category;</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">customer segment;</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">services; and</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">geographical r<span class="_ _0"/>egion.</span>We belie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve that these best depict how the natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e, amount, timing and uncertainty of our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e affected by economic factors. (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021Customer category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Key accounts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 54,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 49,238 Large and medium<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c9"> </span> 17,387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 17,958 Small and route-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 4,485 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 4,167 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Customer segments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Office-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16f"> </span>30,647<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a Production-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>18,094<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a Healthcare<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span>10,046<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span> n/a Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span>17,751<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> n/a Core services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Cleaning<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11f"> </span> 34,693 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 34,416 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical <span xmlns="http://www.w3.org/1999/xhtml" class="_ _da"> </span> 16,640 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 16,226 Food<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 10,170 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 7,535 Workplace, incl. Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> 15,035 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 13,186 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Disaggregation of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue based on geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region is disclosed in 1.1, Segments. 1.2.3 Costs to fulfill a contract The size and complexity of ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account contracts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mobilisation costs before service delivery commences in order to be able to fulfill the performance obligations under the con-tracts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprise costs, directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to launching certain large long-term contracts such as tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of employ-ees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing service plans. The cost includes internal direct costs and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal costs, e.g. to consultants.At 31 December 2022, capitalised transition and mobilisation costs amounted to DKK 36 million (2021: DKK 62 million). No significant additional costs were capitalised in 2022. Capitalised transition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresented in 2.2, Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Customers</span>Customer category76.5DKKbn71% Key accounts 23% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>Large and medium0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws75">6% </span> Small <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>and <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>route-basedsegmentsCustomer segments76.5DKKbn40% Office-based24% Production-based13%Healthcare23% OtherservicesCore services76.5DKKbn45% Cleaning22% T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical13%Food20% Workplace, <span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>incl. Other1.2.4 Revenue backlog Our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue base consists of a mix of yearly con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tracts, which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e rene<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed tacitly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, and thousands of multi-year contracts, the majority of which have an initial term of three to five years. Depending on the size and complexity of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, the transition and mobilisation period is normally between six and twelve months for our key accounts. Contracts r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly include options for the customer to terminate for convenience within three to nine months. Ho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, we maintain a high retention r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate of 94% (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. the planned exit of the Danish Defence contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act), both for key accounts and o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verall, supporting that these options are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>arely e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised.As described in 1.2.1, Performance obligations, the vast majority of our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and the remaining part is non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring in the form of projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work. Projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work is not committed as part of the main customer contract and is therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluded from the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price to be allocated to the remaining performance obligation (re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue backlog). In addition, the Group has applied the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions of IFRS 15, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluded the following fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the backlog:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">contracts with a term of less than </span>12 months; and• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">contracts wher<span class="_ _0"/>e the Group invoices a fix<span class="_ _0"/>ed </span>amount for each hour of service pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided.As a result, the amounts disclosed in the matu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>rity table are significantly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than reported<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and will likely not reflect the degr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee of certainty in future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue (and cash inflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws) to<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> t<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>he<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> G<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>rou<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>p.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> As a supplement, in the manage-ment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>view<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, p. 20, a maturity overview for our largest key accounts (&gt; DKK 200 million of annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue) is presented.(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>34%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>21,413<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>33%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>20,3101-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span>54%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>34,407<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>50%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>30,586&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>12%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>7,352<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>17%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>10,148T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>63,172<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>61,044Accounting policyRevenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om contracts with customers is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when control of the services is tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to the cus-tomer at an amount that reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sideration for those services. Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed over time as the customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Services are typically invoiced on a monthly basis at an amount corresponding to the value of the com-pleted performance obligation.Revenue e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcludes amounts collected on behalf of third parties, e.g. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T and duties.The input method is used to measure pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogress towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds complete satisfaction of the service due to the direct r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elationship between labour hours and costs incurred, and the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group recognises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue on the basis of the labour hours and costs expensed relative to the total e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected labour hours and costs to complete the service.Significant accounting estimates and judgementsOur customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on three differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent commercial models r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equiring varying levels of man-agement estimates and judgement in determining the transaction price:1) Fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts;2) Cost-plus contracts; and3) Cost-plus variations (typically capped)For fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is recognised based on the transaction price stated in the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, and thus requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e limited judgement from management.For cost-plus contracts, including variations e.g. with a cap, ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price is determined based on costs incurred with the addition of an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed mark-up/management fee. Determining the transaction price requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es management to assess, which costs may be included in the calculation basis and if rele-vant, whether within the capped maximum.For key accounts and other large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the transaction price may also include a variable consideration based on achie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement of certain key performance indicators and gain share. Manage-ment estimates variable consideration based on the most likely amount to which it expects to be entitled on a contract-b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y-contract basis. Management makes a detailed assessment of the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived and the probability of suc-cess in each case. Variable consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is included in re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as services are performed to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that it is highly probable that the amount will not be subject to significant re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal.Price adjustment mechanisms in our customer contracts vary in terms of content and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent. Judgement is requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by management to determine the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived as a result of inflationary pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>essure on costs of delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Contract modifications r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, particularly for key account customers, in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der to ensure that service solutions reflect their curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent needs. Such modifications are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally agreed with the cus-tomer in advance as per the contract in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with a specified change management procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and accounted for going forward with no impact on recognised r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue up to the date of modification. Management assess how quickly ISS would be able to implement the scope changes of the service.Gross or net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentation of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls20 ws27"> Management </span>uses judgement to determine whether the nature of ISS’s pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>omise is to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the specified services (ISS is the principal), or to arrange for another party to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the services (ISS is acting as an agent). This assessment is based on an evaluation of whether ISS controls the specified services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e transfer to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group has concluded that as a main rule it is the principal in its re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue arrangements, because it typically controls the services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e trans<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferring them to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and consequently as a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> main rule recognises r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss basis. 1.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue1.2.1 Performance obligations Revenue is gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated from r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>endering of workplace and facility service solutions. Our services are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided at the customer's site on a daily basis continuously over the term of the contract. The customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Group. Thus, performance obligations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e satisfied over time. Revenue is split between portfolio and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects and above-base work, with the vast majority stemming from portfolio r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue, appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ox. 82%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> (2021: 81%).<span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span> 62,872 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 57,479 Projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> 13,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 13,884 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue comprises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue from contracts with customers that is contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actually agreed (committed) at inception and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to services that we are obligated to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ender on a recurring basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the con-tract. Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects and above-base work (e.g. capital projects) is demanded on a non-recurring basis and agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed separately with the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.1.2.2 Disaggregation of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>evenueAligned with our strategy to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts in three prioritised segments, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e we deliver our core services, we disaggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue based on: • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">customer category;</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">customer segment;</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">services; and</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">geographical r<span class="_ _0"/>egion.</span>We belie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve that these best depict how the natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e, amount, timing and uncertainty of our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e affected by economic factors. (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2021Customer category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Key accounts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 54,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 49,238 Large and medium<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c9"> </span> 17,387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 17,958 Small and route-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 4,485 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 4,167 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Customer segments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Office-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16f"> </span>30,647<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a Production-based<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>18,094<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a Healthcare<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span>10,046<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span> n/a Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span>17,751<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> n/a T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> n/a Core services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Cleaning<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11f"> </span> 34,693 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 34,416 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical <span xmlns="http://www.w3.org/1999/xhtml" class="_ _da"> </span> 16,640 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 16,226 Food<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 10,170 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 7,535 Workplace, incl. Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> 15,035 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 13,186 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9c"> </span> 76,538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 71,363 Disaggregation of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue based on geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region is disclosed in 1.1, Segments. 1.2.3 Costs to fulfill a contract The size and complexity of ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account contracts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mobilisation costs before service delivery commences in order to be able to fulfill the performance obligations under the con-tracts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprise costs, directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to launching certain large long-term contracts such as tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of employ-ees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing service plans. The cost includes internal direct costs and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal costs, e.g. to consultants.At 31 December 2022, capitalised transition and mobilisation costs amounted to DKK 36 million (2021: DKK 62 million). No significant additional costs were capitalised in 2022. Capitalised transition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresented in 2.2, Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Customers</span>Customer category76.5DKKbn71% Key accounts 23% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>Large and medium0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws75">6% </span> Small <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>and <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>route-basedsegmentsCustomer segments76.5DKKbn40% Office-based24% Production-based13%Healthcare23% OtherservicesCore services76.5DKKbn45% Cleaning22% T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical13%Food20% Workplace, <span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>incl. Other1.2.4 Revenue backlog Our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue base consists of a mix of yearly con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tracts, which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e rene<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed tacitly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, and thousands of multi-year contracts, the majority of which have an initial term of three to five years. Depending on the size and complexity of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, the transition and mobilisation period is normally between six and twelve months for our key accounts. Contracts r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly include options for the customer to terminate for convenience within three to nine months. Ho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, we maintain a high retention r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate of 94% (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. the planned exit of the Danish Defence contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act), both for key accounts and o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verall, supporting that these options are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>arely e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised.As described in 1.2.1, Performance obligations, the vast majority of our re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is portfolio re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and the remaining part is non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring in the form of projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work. Projects and abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve-base work is not committed as part of the main customer contract and is therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluded from the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price to be allocated to the remaining performance obligation (re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue backlog). In addition, the Group has applied the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions of IFRS 15, and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluded the following fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the backlog:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">contracts with a term of less than </span>12 months; and• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">contracts wher<span class="_ _0"/>e the Group invoices a fix<span class="_ _0"/>ed </span>amount for each hour of service pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided.As a result, the amounts disclosed in the matu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>rity table are significantly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than reported<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and will likely not reflect the degr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee of certainty in future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue (and cash inflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws) to<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> t<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>he<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> G<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>rou<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>p.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> As a supplement, in the manage-ment re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>view<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, p. 20, a maturity overview for our largest key accounts (&gt; DKK 200 million of annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue) is presented.(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>2021&lt; 1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>34%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>21,413<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>33%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>20,3101-5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span>54%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>34,407<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>50%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>30,586&gt; 5 years<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>12%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>7,352<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>17%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>10,148T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>63,172<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>61,044Accounting policyRevenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om contracts with customers is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when control of the services is tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to the cus-tomer at an amount that reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sideration for those services. Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed over time as the customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Services are typically invoiced on a monthly basis at an amount corresponding to the value of the com-pleted performance obligation.Revenue e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcludes amounts collected on behalf of third parties, e.g. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T and duties.The input method is used to measure pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogress towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds complete satisfaction of the service due to the direct r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elationship between labour hours and costs incurred, and the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group recognises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue on the basis of the labour hours and costs expensed relative to the total e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected labour hours and costs to complete the service.Significant accounting estimates and judgementsOur customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on three differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent commercial models r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equiring varying levels of man-agement estimates and judgement in determining the transaction price:1) Fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts;2) Cost-plus contracts; and3) Cost-plus variations (typically capped)For fixed price contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue is recognised based on the transaction price stated in the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act, and thus requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e limited judgement from management.For cost-plus contracts, including variations e.g. with a cap, ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction price is determined based on costs incurred with the addition of an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eed mark-up/management fee. Determining the transaction price requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es management to assess, which costs may be included in the calculation basis and if rele-vant, whether within the capped maximum.For key accounts and other large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the transaction price may also include a variable consideration based on achie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement of certain key performance indicators and gain share. Manage-ment estimates variable consideration based on the most likely amount to which it expects to be entitled on a contract-b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y-contract basis. Management makes a detailed assessment of the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived and the probability of suc-cess in each case. Variable consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is included in re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue as services are performed to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that it is highly probable that the amount will not be subject to significant re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal.Price adjustment mechanisms in our customer contracts vary in terms of content and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent. Judgement is requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by management to determine the amount of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived as a result of inflationary pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>essure on costs of delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Contract modifications r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egularly occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, particularly for key account customers, in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der to ensure that service solutions reflect their curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent needs. Such modifications are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally agreed with the cus-tomer in advance as per the contract in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with a specified change management procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and accounted for going forward with no impact on recognised r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue up to the date of modification. Management assess how quickly ISS would be able to implement the scope changes of the service.Gross or net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentation of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls20 ws27"> Management </span>uses judgement to determine whether the nature of ISS’s pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>omise is to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the specified services (ISS is the principal), or to arrange for another party to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the services (ISS is acting as an agent). This assessment is based on an evaluation of whether ISS controls the specified services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e transfer to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group has concluded that as a main rule it is the principal in its re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue arrangements, because it typically controls the services befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e trans<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferring them to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and consequently as a<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> main rule recognises r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss basis. Accounting policyRevenue fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om contracts with customers is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when control of the services is tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to the cus-tomer at an amount that reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sideration for those services. Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed over time as the customer simultaneously r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives and consumes the benefits pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Services are typically invoiced on a monthly basis at an amount corresponding to the value of the com-pleted performance obligation.Revenue e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcludes amounts collected on behalf of third parties, e.g. V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T and duties.The input method is used to measure pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogress towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds complete satisfaction of the service due to the direct r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elationship between labour hours and costs incurred, and the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The Group recognises re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue on the basis of the labour hours and costs expensed relative to the total e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected labour hours and costs to complete the service. 1.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs(DKKm)Note<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>2021Wages and salaries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 38,803 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 37,214 Social security costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 5,950 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5,581 Pensions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,448 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,376 Share-based payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span>6.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 80 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _77"> </span> 2,048 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 2,136 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 48,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 46,369 Average number of employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 352,792 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 362,789 Our strategy is based on self-delivery of our core services b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our placemakers. Our business model is asset light and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e employee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> costs is our single largest cost category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.In 2022, employee costs comprised 66% of the total operating costs (2021: 67%) and wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e positively impacted by a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efund of collective insurance pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emiums paid in prior years in Swe<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>den of DKK 23 million (2021: DKK 78 million).Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants In 2022, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised government grants of DKK 159 million (2021: DKK 135 million) in the form of wage subventions, which have been recognised as a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eduction of employee costs. The grants compensate the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup primar<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ily for social security<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, wage increases as well as employing certain categories of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees such as trainees, disabled persons, long-term unem<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ployed and emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees in certain age groups.In addition, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived Covid-19 gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants during the pandemic to compensate costs relat-ed to e.g. employees on furlough, social security contribution and sick pay compensation. With the cessation of the pandemic, the grants have gradually lapsed. In 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup recognised Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated grants of DKK 122 million (2021: DKK 432 million), mainly in the US, Hong Kong and Sweden. 1.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs(DKKm)Note<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>2021Wages and salaries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 38,803 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 37,214 Social security costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 5,950 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5,581 Pensions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,448 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,376 Share-based payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span>6.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 80 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _77"> </span> 2,048 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 2,136 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 48,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 46,369 Average number of employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 352,792 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 362,789 Our strategy is based on self-delivery of our core services b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our placemakers. Our business model is asset light and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e employee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> costs is our single largest cost category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.In 2022, employee costs comprised 66% of the total operating costs (2021: 67%) and wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e positively impacted by a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efund of collective insurance pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emiums paid in prior years in Swe<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>den of DKK 23 million (2021: DKK 78 million).Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants In 2022, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised government grants of DKK 159 million (2021: DKK 135 million) in the form of wage subventions, which have been recognised as a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eduction of employee costs. The grants compensate the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup primar<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ily for social security<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, wage increases as well as employing certain categories of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees such as trainees, disabled persons, long-term unem<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ployed and emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees in certain age groups.In addition, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived Covid-19 gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants during the pandemic to compensate costs relat-ed to e.g. employees on furlough, social security contribution and sick pay compensation. With the cessation of the pandemic, the grants have gradually lapsed. In 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup recognised Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated grants of DKK 122 million (2021: DKK 432 million), mainly in the US, Hong Kong and Sweden. 1.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs(DKKm)Note<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>2021Wages and salaries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 38,803 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 37,214 Social security costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 5,950 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5,581 Pensions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,448 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,376 Share-based payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span>6.2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 80 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _77"> </span> 2,048 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 2,136 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 48,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 46,369 Average number of employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 352,792 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 362,789 Our strategy is based on self-delivery of our core services b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y our placemakers. Our business model is asset light and therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e employee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> costs is our single largest cost category<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.In 2022, employee costs comprised 66% of the total operating costs (2021: 67%) and wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e positively impacted by a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efund of collective insurance pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emiums paid in prior years in Swe<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>den of DKK 23 million (2021: DKK 78 million).Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants In 2022, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised government grants of DKK 159 million (2021: DKK 135 million) in the form of wage subventions, which have been recognised as a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eduction of employee costs. The grants compensate the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup primar<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ily for social security<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, wage increases as well as employing certain categories of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees such as trainees, disabled persons, long-term unem<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ployed and emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees in certain age groups.In addition, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived Covid-19 gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants during the pandemic to compensate costs relat-ed to e.g. employees on furlough, social security contribution and sick pay compensation. With the cessation of the pandemic, the grants have gradually lapsed. In 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup recognised Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated grants of DKK 122 million (2021: DKK 432 million), mainly in the US, Hong Kong and Sweden.7.1 Pensions and similar obligations7.1.1 Pension schemesDefined contribution plansThe majority of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s pension schemes are defined contribution plans where contributions are paid to publicly or privately administer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed pension plans. The Group has no further payment obligations once the contributions have been paid. In 2022, contributions amounted to DKK 1,223 million (2021: DKK 1,140 million), corresponding to 84% of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s pension costs (2021: 83%).Defined benefit plans The Group has a number of defined benefit plans where the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponsibility for the obligation towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds the employees r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests with the Group. The largest plans are in Switzerland and the UK accounting for 86% (2021: 86%) of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s obligation (gross) and 97% (2021: 97%) of its plan assets. The plans are primarily based on years of service, and benefits are determined on the basis of salary and position. The Group assumes the risk associated with future de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments in salary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates, inflation, mortality and disability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, etc.The majority of the obligations are funded with assets placed in independent pension funds. In some countries, primarily Sweden, France, T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Hong Kong and Mexico, the obligation is unfunded. For these unfunded plans, obligation amounted to DKK 633 million or 8% of the present value of the gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss obligation (2021: DKK 788 million or 9%).Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> Participants are insur<span class="_ _0"/>ed against the </span>financial consequences of retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement, disabil<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ity and death. The pension plans guarantee a minimum interest cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit and fixed conversion rates at r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etirement and include a risk-sharing element between ISS and the plan participants. Contributions are paid b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y both the employee and the employer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The plans must be fully funded. In case of underfunding, reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very measures must be taken, such as additional financing from the employer or fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the employer and emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees, reduction of benefits or a combination of both. The UK <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Participants are insur<span class="_ _0"/>ed against the </span>financial consequences of retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement and death, and do not pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide any insured disability benefits. The pension plans guarantee a defined benefit pension at retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement on a final salary basis. The majority of the plans does not include a risk-sharing element between ISS and the plan participants.Multiemployer pension plansThe Group participates in multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer pension schemes that by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are defined benefit plans in a few countries. Some funds ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not able to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the necessary information in order for the Group to account for the schemes as defined benefit plans and these schemes are ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efore accounted for as defined contribution plans.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">costs</span>Pension costs1.4DKKbn84%Defined contribution16% Defined benefitSignificant accounting estimatesActuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is determined on the basis of assumptions about the future de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velop<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment in variables such as salary levels, inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates, inflation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>and mortality<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Applied actuarial assumptions vary from country to country due to local conditions. All assumptions are assessed at the reporting date. Changes in these assumptions may significantly affect the liabilities and pension costs under defined benefit plans. The range and weighted average of these assumptions as well as sensitivities on key assumptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in this note.The discount rates used for calculating the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on the market yield of high-quality corporate bonds or government bonds with a maturity appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oximating to the terms of the defined benefit obligations. When the Group participates in multi-emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer pension plans being accounted for as defined con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tribution plans due to unavailability of information, there is a risk that the plans ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not sufficiently funded. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, information on surplus or deficit in the schemes is not available. 7.1.2 Defined benefit obligation2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f5"> </span>2021Present Fair value Present Fair value value of of plan Carrying value of of plan Carrying (DKKm)obligationassetsamountobligationassetsamountAt 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span> 8,625 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 8,997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (372) 8,684 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 7,796 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 888 Current service costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span> 197 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span>197<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>219<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>219Interest on obligation/plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>72<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 55 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 45 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 28 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>17Past service costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>-Recognised in profit or loss <span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> 280 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 55 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 225 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 28 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 236 Actuarial (gain)/loss:<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4"> <span class="_ _19a"> </span> </span> Demographic assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (256) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (256) Financial assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> (1,702) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (1,702)(209) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (209) Experience adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> 490 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 490 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 67 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 67 Return on plan assets <span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (997) 997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 747 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (747)Asset ceiling <span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (43) 43 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (1,080) 1,080 Recognised in other comprehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> (1,205)(1,040)(165)(398)(333)(65)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 214 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (81) 386 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 414 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (28)Acquisitions and divestments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 227 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 219 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 0 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (0)Employee contributions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span> 154 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 154 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - Employer contributions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (207) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 199 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (199)Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> (342)(267)(75)(266)(174)(92)Asset ceiling <span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 43 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span> 1,080 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> (1,080)Reclass. to Liabilities held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (186)(154)(32)Other changes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span> 253 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 651 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (398)75<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>1,506<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> (1,431)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span> 7,953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span> 8,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> (710) 8,625<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 8,997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (372)Recognised in the statement of financial position(DKKm)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5">2022<span class="_ _1a"> </span>2021</span>Carrying amount of defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _130"> </span> (710)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span>(372)1)Accumulated impact from asset ceiling 1,352<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>1,2532)Defined benefit obligation, net 642 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 881 Other long-term employee benefits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>543<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 470 Pensions and similar obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> 1,185 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1,3511) Including a foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustment on the opening balance of DKK 56 million.2) Including an asset of DKK 247 million (2021: DKK 86 million) related to defined benefit plans in the UK. Developments in 2022 Actuarial calculations for 2022 have been ob-tained for all major plans. The actuarial calcula-tions led to recognition of actuarial gains due to increased discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates (financial assumptions) of DKK 1,702 million, mainly in Switzerland and the UK. This was largely offset by actuarial losses of DKK 490 million due to increased salary and inflation expectations (e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xperience adjustments) and loss on plan assets of DKK 997 million, both primarily related to Switzerland and the UK. The net impact on the pension obligation was a gain of DKK 165 million recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-hensive income.In 2021, we saw strong asset r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns and an actuarial gain, which led to a significant increase in the surplus on the major plans in Switzerland. Due to surplus restrictions (ISS does not have access to the overfunding), an incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in the asset ceiling was recognised. In 2022, market conditions for listed shares and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eal estate de-teriorated r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulting in significant losses on plan assets in Switzerland and the UK. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, due to a larger decrease in the pension obligation the asset ceiling has further increased. As such, by the end of 2022, the accumulated impact from the asset ceiling was DKK 1,352 million (2021: DKK 1,253 million).Contributions in 2023The Group e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpects to contribute DKK 322 million in 2023 (2022: DKK 261 million).<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">categories of </span>Plan assetsan assets– major categories8.7DKKbn34% Listed shares19% Property 18% Corporate bonds6% Cash and cash equivalents 2% Government bonds21% Other% of total plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">obligation, </span>Pen<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">r</span>oss– funded vs. unfunded8.0DKKbn92%Funded8%Unfunded<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">obligation, </span>Pen<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">r</span>oss– by country8.0DKKbn75%Switzerland11%UK14%Other7.1.3 Actuarial assumptions2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span>2021Other Other CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span>GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span>EURcurrencies<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">CHF<span class="_ _78"> </span>GBP<span class="_ _35"> </span>EUR</span>currenciesDiscount rates<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>2.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>4.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls20"> 3.70-3.75% <span class="_ _90"> </span></span> 1.0-10.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>0.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 0.35-1.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 0.2-19.3% Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>1.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 0.0-2.65% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 2.56-3.2% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c3"> </span> 0.0-12.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-2.65% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-3.5% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 0.0-15.0% Pension increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>0.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d9"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls5b ws8e"> 2.65-3.15% <span class="_ _19"> </span></span> 0.0-2.15% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-2.2% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>0.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls5b"> 2.65-3.20% <span class="_ _19"> </span></span> 0.0-0.64% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 0.0-2.0% Sensitivity analysis Below the sensitivities r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to significant actuarial assumptions used in the calculation of the defined benefit obligation are illustr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated in terms of estimated increase/(decr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease) in the obligation.The analysis is based on changes in assump-tions, with all other variables held constant, that the Group consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to be reasonably possible at the reporting date.2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span>2021(DKKm)+0.5%(0.5)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls56 ws67">+0.5%</span>(0.5)%Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (334) 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (490) 545 Price inflation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (65) 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (51)Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> (74) 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (4)Pension increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (248) 302 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (85)+1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-1 year<span class="_ _1d9"> </span></span>+1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-1 year</span>Life expectancy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 136 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (133) 212 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (182)Duration The estimated weighted average dur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation of the defined benefit obligation was 9 years (2021: 12 years) and is split into:(Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ears)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>2021Active employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 8 Retired emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 15  1)Deferred vested 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 6 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 12 1) The impact from deferred vested on total estimated weighted average duration is minor due to the fact that deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed vested make up less than 2% of the participants, and do not exist in many of the shorter duration plans.Accounting policyContributions to <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">defined contribution plans</span> are recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs when the related service is pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided. Any contributions outstanding are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other liabilities.Defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Group’<span class="_ _5"/>s net obligation </span>is calculated by a qualified actuary using the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o-jected unit credit method, separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately for each plan by estimating the amount of futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e benefits that employees have earned in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn for their service in the current and prior periods. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value less the fair value of any plan assets is recognised in Pensions and similar obligations. When the calculation results in a potential asset, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ec-ognition is limited to the present value of economic benefits available in the form of future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efunds from or reductions in futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e contributions to the plan. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o calculate the present value, consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is given to applicable minimum funding requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements. Pension costs are calculated based on actuarial es-timates and financial expectations at the beginning of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Service costs are recognised in Employee costs and net interest is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial expenses. Differences between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected development in pension assets and liabilities and the realised amounts at the reporting date ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e designated actuarial gains or losses and recognised in other comprehensive income. When the benefits are changed or a plan is curtailed, the resulting change in benefits that r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to past service or the gain or loss on curtailment is recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs. Gains and losses on settlement is recognised when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The aggregated value of unfunded plans is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-sented as a net liability and the aggregated value of funded plans are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as a net asset. Other long-term employee benefits <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">ar<span class="_ _0"/>e recognised </span>as defined pension plans, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept that actuarial gains and losses are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Employee costs. Other long-term employee benefits comprise jubilee benefits, long-service or sabbatical leave, etc. Accounting policyOther income and expenses, net consists of recurring and non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring items that manage-ment does not consider to be part of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities, i.e. gains and losses on divestments, remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of disposal groups classified as held for sale, carrying amount adjustments regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding ceased held for sale classi-fication, the winding-up of operations, disposal of property and acquisition and integr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs.Other income and expenses, net ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separately fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities as management believes that this best reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s financial performance.Integration costs<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> r<span class="_ _0"/>elated to the acquisition of </span>Livit FM Services AG in Switzerland.Ceased held for sale classification<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised </span>depreciation and amortisation for the years 2019 to 2020 due to the ceased held for sale classification of Chile in 2021. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised mainly costs related to wind-</span>ing-up of a minor business in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 1.4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Other income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses, net (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>2021Gain on divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> 206 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 604 IT security incident<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 7 Other income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _da"> </span> 206 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 611 Loss on divestments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span> (124)(34)Integration costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(7) - Acquisition costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> (4)<span class="_ _5e"> </span> </span>(77)Ceased held for sale classification<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (59)Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _eb"> </span> (14)(2)Other expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span> (149)(172)Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 57 <span class="_ _37"> </span> 439 </span>Gain on divestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly related to the </span>Waste Management business in Hong Kong and the damage control business in the UK. In 2021, gain on divestments mainly related to Kanal Services in Switzerland and Specialized Services in the US. Loss on divestments <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">mainly comprised to a </span>withdrawal liability on a multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer plan in the US related to the divestment of the Specialized Services business in December 2021. In 2021, the loss mainly related to adjustments to prior years’ divestments and the divestment of the Fruit Baskets business in Sweden.Acquisition costs<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly related to the acquisi-</span>tion of Livit FM Services AG in Switzerland (2021: Rönesans Facility Management Company). Accounting policyOther income and expenses, net consists of recurring and non-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring items that manage-ment does not consider to be part of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities, i.e. gains and losses on divestments, remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of disposal groups classified as held for sale, carrying amount adjustments regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding ceased held for sale classi-fication, the winding-up of operations, disposal of property and acquisition and integr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs.Other income and expenses, net ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separately fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s ordinary oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating activities as management believes that this best reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s financial performance.Integration costs<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> r<span class="_ _0"/>elated to the acquisition of </span>Livit FM Services AG in Switzerland.Ceased held for sale classification<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised </span>depreciation and amortisation for the years 2019 to 2020 due to the ceased held for sale classification of Chile in 2021. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised mainly costs related to wind-</span>ing-up of a minor business in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Expected credit losses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>2021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> (162)(299)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 0 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span> (59)(45)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 120 Unreco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts written off<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 64 Reclassification to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _8e"> </span> </span>(3)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span> (124)(162)At 31 December 2022, expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses were 1.1% (2021: 1.5%) of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables (gross) and tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables not past due was 89% of trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, net (2021: 90%). 2.1 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>eceivables and credit risk 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span>2021ExpectedCarrying ExpectedCarrying (DKKm)Grosscredit lossesamount<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>Grosscredit lossesamountCentral &amp; Southern Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,553 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (50) 4,503 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 4,355 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (64) 4,291 Northern Europe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span> 3,218 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (24) 3,194 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 3,303 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (37) 3,266 Asia &amp; Pacific <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 2,072 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (38) 2,034 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,852 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (49) 1,803 Americas<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span> 1,171 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (12) 1,159 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 964 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (12) 952 Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span> 106 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 106 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 94 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 94 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 11,120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (124) 10,996 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 10,568 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (162) 10,406 Not past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span> 9,762 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 9,756 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 9,418 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (4) 9,414 Past due 1 to 60 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 1,073 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (4) 1,069 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 866 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 860 Past due 61 to 180 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 179 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (14) 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (12) 126 Past due 181 to 360 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 22 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (20) 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 37 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (34) 3 More than 360 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4f"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (80) 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 109 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> (106) 3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 11,120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (124) 10,996 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 10,568 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (162) 10,406 Expected credit losses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>2021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> (162)(299)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 0 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span> (59)(45)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 120 Unreco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts written off<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 64 Reclassification to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _8e"> </span> </span>(3)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span> (124)(162)Development in 2022 In 2022, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables increased to DKK 10,996 million (2021: DKK 10,406 million) mainly as a result of organic gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth driven by return-to-office tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ends and food service reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. At 31 December 2022, commercial use of fac-toring with certain large key account customers and participation in certain customers' supply chain finance arrangements was DKK 1.3 billion (31 December 2021: DKK 1.1 billion). At 31 December 2022, expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses were 1.1% (2021: 1.5%) of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables (gross) and tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables not past due was 89% of trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, net (2021: 90%).Credit risk– low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureThe Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit risk is inherently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elatively low due to its business model and strategic choices leading to a diversified customer port <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>folio, both in terms<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> of geography<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, industry sector<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, customer size and services. Also, the completion of our di<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>vestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme has contributed to the low risk assessment as higher-risk countries and business units have been divested.Risk managementExposure to cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit risk and expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses are managed locally in the oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating entities.We have a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong ongoing assessment and monitoring of customers' creditworthiness and the credit limits ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e set as deemed appropriate taking into account the cus-tomer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s financial position and the curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market conditions. In 2022, the increased inflation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates were managed tightly through price incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases. The vast majority of cost increases wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e passed on to customers as per the agreed contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>al terms with no increase in cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. Generally<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the Group does not hold collater-al as security for trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables. Accounting policyT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise invoiced and unbilled </span>re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Unbilled re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue represents service deliv-eries where the performance obligation has been fulfilled, but not yet invoiced.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised initially at the transaction price and subsequently measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at am-ortised cost. Due to its short-term nature, amortised cost will equal the invoiced amount less expected credit losses. An impairment analysis is performed at each reporting date using a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision matrix to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision rates are based on days past due for grouping of customer segments with similar loss patterns, e.g. by geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region, customer type and rating. The calculation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the probability-weighted outcome, the time value of money<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, reasonable and supportable information about past events, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent conditions and forecasts of future economic conditions.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally written off if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e past due more than 180 days or when ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e is no reasonable e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectation of reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rite-offs are presented in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. Subsequent reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very of write-offs or re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal of expected credit losses are cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edited against the same line item.Factoring <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">and participation in customers’ supply chain </span>finance arrangements (factoring) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly used to optimise cash collection and to finance working capital impacts related to gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth with certain ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> account customers, including from gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pressur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> for longer payment terms and necessary investments in transition and mobilisation of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables subject to factoring agreements are der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised once the derecognition criteria have been met and all substantial risks and re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wards have been transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the factor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Once the trade receivables have been der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, the Group does not carry any risk and has no continuing involvement in these trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables.2.2 Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2021Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 424 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 352 Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> 392 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 359 Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 155 Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> 110 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 134 Securities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 104 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span> 103 Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>103<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>27Derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 36 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _136"> </span>362<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>390T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span> 1,695 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 1,582 Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> comprised volume </span>related discounts obtained fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om suppliers and re<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>flects the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s efforts to consolidate the numberof suppliers and drive synergies and cost savings. The increase in 2022 was due to the gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pick-upin activity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, especially driven by the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn-to-office trends and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecovery of food services.Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised various </span>payments mainly related to IT licences, utilities and insurance.Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly r<span class="_ _0"/>elated </span>to the divestment of Specialized Services in the US, where part of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is subject to customer consent. Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised upfront discounts to </span>certain large customers, most significantly in the UK and on certain global key accounts. Significant accounting judgementsCapitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled. Management uses judgement to determine if the costs relate dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly to the contract and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e incurred in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der for ISS to be able to fulfill the contract. In addition, management determines if the costs generate r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources that will be used in satisfying the performance obligations and are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vered, i.e. reflected in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> pricing of the contracts.Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to a savings plan in the US </span>administered b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS on behalf of certain senior employees.Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to various r<span class="_ _0"/>eceiv-</span>ables, including Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated, mainly in the US, Spain and Denmark. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprised directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated costs incurred to fulfill the perfor-mance obligations under certain large contracts, cf. 1.2, Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. The decrease in 2022 was due to ordinary amortisation, mainly in Denmark, Sweden and the UK. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised refunds fr<span class="_ _0"/>om customers, </span>accrued interest, V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, employee-related tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es and other reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts.Accounting policyOther receivables comprise various items of different natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and thus different measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement methods are applied. As these items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered individually immaterial the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented together as Other receivables.Except for the items described belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, other receivables ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised initially at cost and subsequently at amortised cost. Due to the short-term nature of other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, amortised cost will equal the cost. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">(costs to fulfill </span>a contract) comprise costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly related to start-up of operations of certain large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, e.g. transfer of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing ser-vice plans. The costs include internal direct costs and external costs e.g. to consultants.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capitalised and amortised over the initially secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Bid-related costs, in-cluding costs relating to sales work and securing contracts, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expensed as incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Sign-on fees <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise upfront discounts to </span>certain large customers incurred in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of business. Sign-on fees are capitalised and amortised over the initial secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at fair </span>value. 2.1 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>eceivables and credit risk 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span>2021ExpectedCarrying ExpectedCarrying (DKKm)Grosscredit lossesamount<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>Grosscredit lossesamountCentral &amp; Southern Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,553 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (50) 4,503 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 4,355 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (64) 4,291 Northern Europe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span> 3,218 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (24) 3,194 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 3,303 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (37) 3,266 Asia &amp; Pacific <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 2,072 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (38) 2,034 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,852 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (49) 1,803 Americas<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span> 1,171 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (12) 1,159 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 964 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (12) 952 Other countries <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span> 106 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 106 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 94 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 94 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 11,120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (124) 10,996 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 10,568 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (162) 10,406 Not past due<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span> 9,762 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 9,756 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 9,418 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (4) 9,414 Past due 1 to 60 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 1,073 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (4) 1,069 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 866 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 860 Past due 61 to 180 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 179 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (14) 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (12) 126 Past due 181 to 360 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 22 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> (20) 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 37 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (34) 3 More than 360 days<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4f"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> (80) 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 109 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> (106) 3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 11,120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (124) 10,996 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 10,568 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (162) 10,406 Expected credit losses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>2021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> (162)(299)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 0 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span> (59)(45)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span> 120 Unreco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts written off<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 64 Reclassification to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _8e"> </span> </span>(3)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span> (124)(162)Development in 2022 In 2022, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables increased to DKK 10,996 million (2021: DKK 10,406 million) mainly as a result of organic gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth driven by return-to-office tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ends and food service reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. At 31 December 2022, commercial use of fac-toring with certain large key account customers and participation in certain customers' supply chain finance arrangements was DKK 1.3 billion (31 December 2021: DKK 1.1 billion). At 31 December 2022, expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses were 1.1% (2021: 1.5%) of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables (gross) and tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables not past due was 89% of trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, net (2021: 90%).Credit risk– low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureThe Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit risk is inherently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elatively low due to its business model and strategic choices leading to a diversified customer port <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/>folio, both in terms<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> of geography<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, industry sector<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, customer size and services. Also, the completion of our di<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>vestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme has contributed to the low risk assessment as higher-risk countries and business units have been divested.Risk managementExposure to cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit risk and expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses are managed locally in the oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating entities.We have a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong ongoing assessment and monitoring of customers' creditworthiness and the credit limits ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e set as deemed appropriate taking into account the cus-tomer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s financial position and the curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market conditions. In 2022, the increased inflation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates were managed tightly through price incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases. The vast majority of cost increases wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e passed on to customers as per the agreed contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>al terms with no increase in cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. Generally<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the Group does not hold collater-al as security for trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables. Accounting policyT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise invoiced and unbilled </span>re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Unbilled re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue represents service deliv-eries where the performance obligation has been fulfilled, but not yet invoiced.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised initially at the transaction price and subsequently measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at am-ortised cost. Due to its short-term nature, amortised cost will equal the invoiced amount less expected credit losses. An impairment analysis is performed at each reporting date using a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision matrix to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision rates are based on days past due for grouping of customer segments with similar loss patterns, e.g. by geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region, customer type and rating. The calculation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the probability-weighted outcome, the time value of money<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, reasonable and supportable information about past events, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent conditions and forecasts of future economic conditions.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally written off if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e past due more than 180 days or when ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e is no reasonable e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectation of reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rite-offs are presented in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. Subsequent reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very of write-offs or re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal of expected credit losses are cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edited against the same line item.Factoring <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">and participation in customers’ supply chain </span>finance arrangements (factoring) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly used to optimise cash collection and to finance working capital impacts related to gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth with certain ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> account customers, including from gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pressur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> for longer payment terms and necessary investments in transition and mobilisation of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables subject to factoring agreements are der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised once the derecognition criteria have been met and all substantial risks and re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wards have been transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the factor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Once the trade receivables have been der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, the Group does not carry any risk and has no continuing involvement in these trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables. Accounting policyT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise invoiced and unbilled </span>re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Unbilled re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue represents service deliv-eries where the performance obligation has been fulfilled, but not yet invoiced.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised initially at the transaction price and subsequently measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at am-ortised cost. Due to its short-term nature, amortised cost will equal the invoiced amount less expected credit losses. An impairment analysis is performed at each reporting date using a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision matrix to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision rates are based on days past due for grouping of customer segments with similar loss patterns, e.g. by geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region, customer type and rating. The calculation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the probability-weighted outcome, the time value of money<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, reasonable and supportable information about past events, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent conditions and forecasts of future economic conditions.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally written off if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e past due more than 180 days or when ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e is no reasonable e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectation of reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rite-offs are presented in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. Subsequent reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very of write-offs or re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal of expected credit losses are cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edited against the same line item.Factoring <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">and participation in customers’ supply chain </span>finance arrangements (factoring) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly used to optimise cash collection and to finance working capital impacts related to gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth with certain ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> account customers, including from gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pressur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> for longer payment terms and necessary investments in transition and mobilisation of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables subject to factoring agreements are der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised once the derecognition criteria have been met and all substantial risks and re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wards have been transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the factor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Once the trade receivables have been der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, the Group does not carry any risk and has no continuing involvement in these trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables. Accounting policyT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise invoiced and unbilled </span>re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Unbilled re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue represents service deliv-eries where the performance obligation has been fulfilled, but not yet invoiced.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised initially at the transaction price and subsequently measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at am-ortised cost. Due to its short-term nature, amortised cost will equal the invoiced amount less expected credit losses. An impairment analysis is performed at each reporting date using a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision matrix to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision rates are based on days past due for grouping of customer segments with similar loss patterns, e.g. by geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region, customer type and rating. The calculation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the probability-weighted outcome, the time value of money<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, reasonable and supportable information about past events, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent conditions and forecasts of future economic conditions.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally written off if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e past due more than 180 days or when ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e is no reasonable e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectation of reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rite-offs are presented in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. Subsequent reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very of write-offs or re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal of expected credit losses are cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edited against the same line item.Factoring <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">and participation in customers’ supply chain </span>finance arrangements (factoring) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly used to optimise cash collection and to finance working capital impacts related to gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth with certain ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> account customers, including from gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pressur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> for longer payment terms and necessary investments in transition and mobilisation of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables subject to factoring agreements are der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised once the derecognition criteria have been met and all substantial risks and re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wards have been transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the factor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Once the trade receivables have been der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, the Group does not carry any risk and has no continuing involvement in these trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables. Accounting policyT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise invoiced and unbilled </span>re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. Unbilled re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue represents service deliv-eries where the performance obligation has been fulfilled, but not yet invoiced.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised initially at the transaction price and subsequently measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at am-ortised cost. Due to its short-term nature, amortised cost will equal the invoiced amount less expected credit losses. An impairment analysis is performed at each reporting date using a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision matrix to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expected cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit losses. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision rates are based on days past due for grouping of customer segments with similar loss patterns, e.g. by geogr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aphical region, customer type and rating. The calculation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the probability-weighted outcome, the time value of money<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, reasonable and supportable information about past events, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent conditions and forecasts of future economic conditions.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables are gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally written off if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e past due more than 180 days or when ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e is no reasonable e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectation of reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rite-offs are presented in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. Subsequent reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very of write-offs or re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versal of expected credit losses are cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edited against the same line item.Factoring <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">and participation in customers’ supply chain </span>finance arrangements (factoring) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly used to optimise cash collection and to finance working capital impacts related to gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth with certain ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> account customers, including from gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pressur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> for longer payment terms and necessary investments in transition and mobilisation of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables subject to factoring agreements are der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised once the derecognition criteria have been met and all substantial risks and re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wards have been transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the factor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Once the trade receivables have been der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, the Group does not carry any risk and has no continuing involvement in these trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables. 2.2 Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2021Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 424 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 352 Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> 392 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 359 Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 155 Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> 110 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 134 Securities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 104 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span> 103 Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>103<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>27Derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 36 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _136"> </span>362<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>390T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span> 1,695 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 1,582 Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> comprised volume </span>related discounts obtained fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om suppliers and re<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>flects the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s efforts to consolidate the numberof suppliers and drive synergies and cost savings. The increase in 2022 was due to the gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pick-upin activity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, especially driven by the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn-to-office trends and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecovery of food services.Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised various </span>payments mainly related to IT licences, utilities and insurance.Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly r<span class="_ _0"/>elated </span>to the divestment of Specialized Services in the US, where part of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is subject to customer consent. Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised upfront discounts to </span>certain large customers, most significantly in the UK and on certain global key accounts. Significant accounting judgementsCapitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled. Management uses judgement to determine if the costs relate dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly to the contract and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e incurred in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der for ISS to be able to fulfill the contract. In addition, management determines if the costs generate r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources that will be used in satisfying the performance obligations and are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vered, i.e. reflected in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> pricing of the contracts.Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to a savings plan in the US </span>administered b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS on behalf of certain senior employees.Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to various r<span class="_ _0"/>eceiv-</span>ables, including Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated, mainly in the US, Spain and Denmark. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprised directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated costs incurred to fulfill the perfor-mance obligations under certain large contracts, cf. 1.2, Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. The decrease in 2022 was due to ordinary amortisation, mainly in Denmark, Sweden and the UK. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised refunds fr<span class="_ _0"/>om customers, </span>accrued interest, V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, employee-related tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es and other reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts.Accounting policyOther receivables comprise various items of different natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and thus different measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement methods are applied. As these items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered individually immaterial the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented together as Other receivables.Except for the items described belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, other receivables ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised initially at cost and subsequently at amortised cost. Due to the short-term nature of other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, amortised cost will equal the cost. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">(costs to fulfill </span>a contract) comprise costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly related to start-up of operations of certain large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, e.g. transfer of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing ser-vice plans. The costs include internal direct costs and external costs e.g. to consultants.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capitalised and amortised over the initially secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Bid-related costs, in-cluding costs relating to sales work and securing contracts, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expensed as incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Sign-on fees <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise upfront discounts to </span>certain large customers incurred in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of business. Sign-on fees are capitalised and amortised over the initial secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at fair </span>value. 2.2 Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2021Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 424 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 352 Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> 392 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 359 Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 155 Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> 110 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 134 Securities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 104 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span> 103 Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>103<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>27Derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 36 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _136"> </span>362<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>390T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span> 1,695 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 1,582 Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> comprised volume </span>related discounts obtained fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om suppliers and re<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>flects the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s efforts to consolidate the numberof suppliers and drive synergies and cost savings. The increase in 2022 was due to the gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pick-upin activity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, especially driven by the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn-to-office trends and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecovery of food services.Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised various </span>payments mainly related to IT licences, utilities and insurance.Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly r<span class="_ _0"/>elated </span>to the divestment of Specialized Services in the US, where part of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is subject to customer consent. Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised upfront discounts to </span>certain large customers, most significantly in the UK and on certain global key accounts. Significant accounting judgementsCapitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled. Management uses judgement to determine if the costs relate dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly to the contract and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e incurred in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der for ISS to be able to fulfill the contract. In addition, management determines if the costs generate r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources that will be used in satisfying the performance obligations and are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vered, i.e. reflected in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> pricing of the contracts.Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to a savings plan in the US </span>administered b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS on behalf of certain senior employees.Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to various r<span class="_ _0"/>eceiv-</span>ables, including Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated, mainly in the US, Spain and Denmark. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprised directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated costs incurred to fulfill the perfor-mance obligations under certain large contracts, cf. 1.2, Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. The decrease in 2022 was due to ordinary amortisation, mainly in Denmark, Sweden and the UK. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised refunds fr<span class="_ _0"/>om customers, </span>accrued interest, V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, employee-related tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es and other reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts.Accounting policyOther receivables comprise various items of different natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and thus different measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement methods are applied. As these items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered individually immaterial the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented together as Other receivables.Except for the items described belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, other receivables ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised initially at cost and subsequently at amortised cost. Due to the short-term nature of other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, amortised cost will equal the cost. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">(costs to fulfill </span>a contract) comprise costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly related to start-up of operations of certain large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, e.g. transfer of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing ser-vice plans. The costs include internal direct costs and external costs e.g. to consultants.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capitalised and amortised over the initially secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Bid-related costs, in-cluding costs relating to sales work and securing contracts, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expensed as incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Sign-on fees <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise upfront discounts to </span>certain large customers incurred in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of business. Sign-on fees are capitalised and amortised over the initial secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at fair </span>value. 2.2 Other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2021Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 424 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 352 Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> 392 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 359 Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 155 Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> 110 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span> 134 Securities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 104 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span> 103 Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>103<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>27Derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 36 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 62 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _136"> </span>362<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>390T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span> 1,695 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 1,582 Supplier rebates and bonuses<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> comprised volume </span>related discounts obtained fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om suppliers and re<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>flects the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s efforts to consolidate the numberof suppliers and drive synergies and cost savings. The increase in 2022 was due to the gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al pick-upin activity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, especially driven by the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn-to-office trends and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecovery of food services.Prepayments to suppliers<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised various </span>payments mainly related to IT licences, utilities and insurance.Receivable divestment proceeds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> mainly r<span class="_ _0"/>elated </span>to the divestment of Specialized Services in the US, where part of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is subject to customer consent. Sign-on fees<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised upfront discounts to </span>certain large customers, most significantly in the UK and on certain global key accounts. Significant accounting judgementsCapitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled. Management uses judgement to determine if the costs relate dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly to the contract and ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e incurred in or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der for ISS to be able to fulfill the contract. In addition, management determines if the costs generate r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources that will be used in satisfying the performance obligations and are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vered, i.e. reflected in the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> pricing of the contracts.Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to a savings plan in the US </span>administered b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS on behalf of certain senior employees.Government gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ants<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to various r<span class="_ _0"/>eceiv-</span>ables, including Covid-19 r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated, mainly in the US, Spain and Denmark. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs comprised directly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated costs incurred to fulfill the perfor-mance obligations under certain large contracts, cf. 1.2, Re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue. The decrease in 2022 was due to ordinary amortisation, mainly in Denmark, Sweden and the UK. Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised refunds fr<span class="_ _0"/>om customers, </span>accrued interest, V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, employee-related tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es and other reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts.Accounting policyOther receivables comprise various items of different natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e and thus different measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement methods are applied. As these items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered individually immaterial the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented together as Other receivables.Except for the items described belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, other receivables ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised initially at cost and subsequently at amortised cost. Due to the short-term nature of other r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, amortised cost will equal the cost. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">(costs to fulfill </span>a contract) comprise costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly related to start-up of operations of certain large contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, e.g. transfer of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees from pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evious suppliers, site due diligence, planning and developing ser-vice plans. The costs include internal direct costs and external costs e.g. to consultants.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransition and mobilisation costs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capitalised and amortised over the initially secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Bid-related costs, in-cluding costs relating to sales work and securing contracts, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e expensed as incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Sign-on fees <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprise upfront discounts to </span>certain large customers incurred in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of business. Sign-on fees are capitalised and amortised over the initial secur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed contract term consistent with ISS’s tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansfer of the related services to the customer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Securities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at fair </span>value. 2.3 Other liabilities (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2021Accrued wages, pensions and holiday allowances<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> 5,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 5,514 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax withholdings, VA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>T etc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 1,503 Prepayments fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om customers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>805<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 868 Savings plan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>104<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>103Contingent consideration and deferred payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 31 Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _70"> </span>533<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>711T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>8,714<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 8,730 Savings plan<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to a plan in the US which is </span>administered b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS on behalf of certain senior employees.Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprised customer discounts, accrued </span></span>interests, etc. 2.3 Other liabilities (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>2021Accrued wages, pensions and holiday allowances<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> 5,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 5,514 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax withholdings, VA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>T etc.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span> 1,503 Prepayments fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om customers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>805<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 868 Savings plan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>104<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>103Contingent consideration and deferred payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 31 Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _70"> </span>533<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>711T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>8,714<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 8,730 Savings plan<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> related to a plan in the US which is </span>administered b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS on behalf of certain senior employees.Other<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprised customer discounts, accrued </span></span>interests, etc. 2.5.2 Contingent assets and liabilities.2.5.1 Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>visions Legal claims and disputesThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision primarily relates to labour-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated claims and disputes regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding wages, overtime,holiday<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance etc. as well as claims and dis-putes in relation to contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual disagreementswith customers and suppliers. In addition, the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision includes claims and disputes associ-ated with our divestment activities. Such claims and disputes arise out of the normal conduct of business. At 31 December 2022, the majority related to the UK, the US, Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Spain.Self-insuranceThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision for self-insurance mainly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to employers’ liability and/or workers compensation in certain countries and covers claims b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees for medical benefits and lost wages associated with injuries/illness incurred in the course of their employment. The r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant countries, including self-insurance limits ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e listed below:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Hong Kong:<span class="ff4"> DKK 26.8m (2021: DKK 25.2m) yearly</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">UK:<span class="ff4 ws0"> DKK 25.2m (2021: DKK 26.6m) yearly aggregated </span></span>limit and DKK 4.2m (2021: DKK 4.4m) per claim• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Australia: <span class="ff4 ws0">DKK 4.7m (2021: DKK 3.6m) per claim</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">US: <span class="ff4">DKK 3.5m (2021: DKK 3.3m) per claim</span></span>The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision also includes obligations not cover<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by the global gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al business liability insurance in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to damage caused in the ordinary course of service delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, e.g. property damage and bodily injury<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The Group is self-in-sured for claims belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w DKK 7.4 million (EUR 1 million per claim).Restructuring projectsThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision mainly covers r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estructuring projects initiated in 2020 in se<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veral countries. The purpose was to adjust our cost base on the back of Covid-19 and involved o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead reductions, including termination of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees and contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits.In 2022, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecution of the projects continued, which led to a decrease of DKK 303 million mainly due to sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance payments in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and Spain.Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actsThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision covers the unavoidable costs for certain loss-making contracts. The incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased in-flation during 2022, and resulting cost incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases, was generally managed thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ough price increases and cost reductions. Consequenly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, inflation did not lead to identification of any significant new onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts or increased pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision for contracts alr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eady recognised as oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Legal claims and Self- Restruc-Onerous (DKKm)disputesinsuranceturingscontracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal2022At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 262 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 374 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 330 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 515 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,716 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> (9) 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 4 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _eb"> </span>109<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>142<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span>99<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>371Used during the year(41)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(149)(263)(191)(90)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(734)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed(28)(15)(46)(80)(8)(177)Reclass (to)/from other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (1) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> - (110)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(109)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>268<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>245<span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 71 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>410<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>1,071Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>47<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 129<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span>- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 23<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>266<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 465Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>221<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>116 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span>71<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>54<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>144<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 6062021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span> 133 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 261 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 787 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 460 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,926 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> (6) 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 26 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 225 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 73 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 45 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 491 Used during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> (62)(232)(373)(21)(11)(699)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span> (55)(2)(52)(16)(10)(135)Reclass (to)/from other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (5) 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 24 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 107 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 262 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 374 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 330 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 515 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 1,716 Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span> 121 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 127 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 142 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 78 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 287 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 755 Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 135 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 232 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 961 In 2022, the decrease of DKK 253 million was mainly related to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xit from the Danish<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Defence contract, including payment of an exit fee, termination of lease obligations and disposal of equipment as well as utilisation of the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision for a key account contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act in Hong Kong. Furthermore, in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and the UK impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives on a few minor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> loss-making contracts led to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eversal of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> amounts pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in prior years.At 31 December 2022, the remaining pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision related to a ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account contract in Hong Kong and a few minor contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts in a few countries.Other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsOther pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions comprise various other risks and obligations incidental to our business, most significantly related to divestments and customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes and decommissioning liabilities.In 2022, the addition was mainly due to recogni-tion of a withdrawal liability on a multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer plan in the US related to the divestment of Specialized Services in 2021.At 31 December 2022, the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision mainly related to Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the US, UK and France.2.5.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Contingent assets andliabilities ISS is party to pending disputes, claims, investi-gations and litigations arising out of the normal conduct of its business and is therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e exposed to possible obligations. Management believes that these will not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabilities recognised in the statement of financial position at 31 December 2022. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the existence of such possible obligations will only be confirmed by the occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future events, not entir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ely within ISS’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s control. Due to the inherent uncertainty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, future events may lead to material adverse effects on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s profit or loss and financial position from one or mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of these possible obligations.Contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eementsContractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements with customers arise on a recurring basis in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of ISS’s business. While most ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esolved as part of the daily contract management pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures, in some cases the contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements will lead to legal proceedings.The Group is curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently party to certain disputes and legal proceedings, including in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to the contract with Deutsche T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>elekom. The contract continues to be structurally challenging. Follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing an agreed dispute r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esolution mechanism, certain contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements are subject to arbitration pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceedings initiated by ISS. Labour-related risksBeing a people company operating acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss differ-ent geographies and service ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas exposes us to varying and changing labour laws, especially across Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope. Although we have policies and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es in place to ensure that we comply with current r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egulations, interpretations and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es applied by ISS could be challenged in certain jurisdictions and result in disputes and possibly liabilities.The Group is curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently party to certain labour-related claims, disputes and legal pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceedings, e.g. around wages, o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vertime, holiday and sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance. Management believes that these would not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabili-ties already r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at 31 December 2022.DivestmentsThe Group makes pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovisions for claims fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om purchasers or other parties in connection with divestments and the repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentations and warranties given in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to such divestments. In addition, the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s divestment activities can give rise to possible obligations, mainly labour-related, including pension plans, and related to disputes in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to sales price.Restructuring projectsRestructuring projects ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e being undertaken on an ongoing basis across differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent geographies and service areas, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently mainly in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and Spain. Labour laws especially in Europe include r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estrictions on dismissals and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al rules to be followed. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures applied by ISS could be challenged in certain jurisdictions resulting in disputes and possibly lia-bilities. Management believes that this would not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabilities alr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eady recognised at 31 December 2022.2.5.3 Guarantees ISS has issued certain guarantees in the normal course of business. Guarantees do not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epre-sent legal or constructive obligations and are not recognised in the statement of financial position at 31 December 2022.(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2021Bank-guaranteed 1,755<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>1,761 performance bondsOther performance bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>1,831<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span>1,819Performance guarantees (service contracts)3,586<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>3,580Indemnity and guarantee commitments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>472<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>479Performance guarantees ISS regularly issues performance guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees to customers to guarantee satisfactory completion of work in accordance with the service contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Such guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued in the ordinary course of business, either in the form of bank guarantees, par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent guarantees or insur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ances. Indemnity and guarantee commitmentsOther guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly issued to insurance companies towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds self-insurance liabilities as well as to owners of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ental property occupied b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS in certain countries. Furthermore, in a fe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w instances guarantees have been issued to public authorities towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds tax withholding liabilities. 2.5 Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>visions, contingent assets and liabilities, and guaranteesISS is exposed to various risks and uncertainties, and party to certain disputes, claims, investiga-tions and legal proceedings arising out of the normal conduct of its business. These are mainly within the following ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Commercial/contr<span class="_ _0"/>actual matters</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Labour-related</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Divestments and M&amp;A</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">T<span class="_ _5"/>ax/social regulations</span>Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions have been recognised in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to such obligations for probable losses, that management deems reasonable and appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate at 31 December 2022 as reflected in the table to the right.In addition, ISS is exposed to possible obligations in relation her<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eto as described below under 2.5.2 Contingent assets and liabilities.2.5.1 Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>visions Legal claims and disputesThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision primarily relates to labour-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated claims and disputes regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding wages, overtime,holiday<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance etc. as well as claims and dis-putes in relation to contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual disagreementswith customers and suppliers. In addition, the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision includes claims and disputes associ-ated with our divestment activities. Such claims and disputes arise out of the normal conduct of business. At 31 December 2022, the majority related to the UK, the US, Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Spain.Self-insuranceThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision for self-insurance mainly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to employers’ liability and/or workers compensation in certain countries and covers claims b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees for medical benefits and lost wages associated with injuries/illness incurred in the course of their employment. The r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant countries, including self-insurance limits ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e listed below:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Hong Kong:<span class="ff4"> DKK 26.8m (2021: DKK 25.2m) yearly</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">UK:<span class="ff4 ws0"> DKK 25.2m (2021: DKK 26.6m) yearly aggregated </span></span>limit and DKK 4.2m (2021: DKK 4.4m) per claim• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Australia: <span class="ff4 ws0">DKK 4.7m (2021: DKK 3.6m) per claim</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">US: <span class="ff4">DKK 3.5m (2021: DKK 3.3m) per claim</span></span>The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision also includes obligations not cover<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by the global gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al business liability insurance in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to damage caused in the ordinary course of service delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, e.g. property damage and bodily injury<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The Group is self-in-sured for claims belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w DKK 7.4 million (EUR 1 million per claim).Restructuring projectsThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision mainly covers r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estructuring projects initiated in 2020 in se<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veral countries. The purpose was to adjust our cost base on the back of Covid-19 and involved o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead reductions, including termination of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees and contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits.In 2022, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecution of the projects continued, which led to a decrease of DKK 303 million mainly due to sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance payments in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and Spain.Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actsThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision covers the unavoidable costs for certain loss-making contracts. The incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased in-flation during 2022, and resulting cost incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases, was generally managed thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ough price increases and cost reductions. Consequenly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, inflation did not lead to identification of any significant new onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts or increased pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision for contracts alr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eady recognised as oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Legal claims and Self- Restruc-Onerous (DKKm)disputesinsuranceturingscontracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal2022At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 262 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 374 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 330 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 515 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,716 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> (9) 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 4 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _eb"> </span>109<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>142<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span>99<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>371Used during the year(41)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(149)(263)(191)(90)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(734)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed(28)(15)(46)(80)(8)(177)Reclass (to)/from other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (1) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> - (110)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(109)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>268<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>245<span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 71 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>410<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>1,071Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>47<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 129<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span>- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 23<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>266<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 465Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>221<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>116 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span>71<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>54<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>144<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 6062021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span> 133 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 261 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 787 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 460 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,926 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> (6) 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 26 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 225 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 73 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 45 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 491 Used during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> (62)(232)(373)(21)(11)(699)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span> (55)(2)(52)(16)(10)(135)Reclass (to)/from other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (5) 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 24 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 107 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 262 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 374 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 330 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 515 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 1,716 Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span> 121 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 127 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 142 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 78 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 287 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 755 Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 135 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 232 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 961 In 2022, the decrease of DKK 253 million was mainly related to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xit from the Danish<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Defence contract, including payment of an exit fee, termination of lease obligations and disposal of equipment as well as utilisation of the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision for a key account contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act in Hong Kong. Furthermore, in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and the UK impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives on a few minor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> loss-making contracts led to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eversal of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> amounts pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in prior years.At 31 December 2022, the remaining pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision related to a ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account contract in Hong Kong and a few minor contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts in a few countries.Other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsOther pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions comprise various other risks and obligations incidental to our business, most significantly related to divestments and customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes and decommissioning liabilities.In 2022, the addition was mainly due to recogni-tion of a withdrawal liability on a multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer plan in the US related to the divestment of Specialized Services in 2021.At 31 December 2022, the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision mainly related to Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the US, UK and France.2.5.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Contingent assets andliabilities ISS is party to pending disputes, claims, investi-gations and litigations arising out of the normal conduct of its business and is therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e exposed to possible obligations. Management believes that these will not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabilities recognised in the statement of financial position at 31 December 2022. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the existence of such possible obligations will only be confirmed by the occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future events, not entir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ely within ISS’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s control. Due to the inherent uncertainty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, future events may lead to material adverse effects on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s profit or loss and financial position from one or mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of these possible obligations.Contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eementsContractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements with customers arise on a recurring basis in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of ISS’s business. While most ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esolved as part of the daily contract management pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures, in some cases the contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements will lead to legal proceedings.The Group is curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently party to certain disputes and legal proceedings, including in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to the contract with Deutsche T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>elekom. The contract continues to be structurally challenging. Follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing an agreed dispute r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esolution mechanism, certain contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements are subject to arbitration pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceedings initiated by ISS. Labour-related risksBeing a people company operating acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss differ-ent geographies and service ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas exposes us to varying and changing labour laws, especially across Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope. Although we have policies and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es in place to ensure that we comply with current r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egulations, interpretations and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es applied by ISS could be challenged in certain jurisdictions and result in disputes and possibly liabilities.The Group is curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently party to certain labour-related claims, disputes and legal pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceedings, e.g. around wages, o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vertime, holiday and sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance. Management believes that these would not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabili-ties already r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at 31 December 2022.DivestmentsThe Group makes pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovisions for claims fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om purchasers or other parties in connection with divestments and the repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentations and warranties given in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to such divestments. In addition, the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s divestment activities can give rise to possible obligations, mainly labour-related, including pension plans, and related to disputes in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to sales price.Restructuring projectsRestructuring projects ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e being undertaken on an ongoing basis across differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent geographies and service areas, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently mainly in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and Spain. Labour laws especially in Europe include r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estrictions on dismissals and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al rules to be followed. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures applied by ISS could be challenged in certain jurisdictions resulting in disputes and possibly lia-bilities. Management believes that this would not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabilities alr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eady recognised at 31 December 2022.2.5.3 Guarantees ISS has issued certain guarantees in the normal course of business. Guarantees do not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epre-sent legal or constructive obligations and are not recognised in the statement of financial position at 31 December 2022.(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2021Bank-guaranteed 1,755<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>1,761 performance bondsOther performance bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>1,831<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span>1,819Performance guarantees (service contracts)3,586<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>3,580Indemnity and guarantee commitments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>472<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>479Performance guarantees ISS regularly issues performance guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees to customers to guarantee satisfactory completion of work in accordance with the service contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Such guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued in the ordinary course of business, either in the form of bank guarantees, par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent guarantees or insur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ances. Indemnity and guarantee commitmentsOther guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly issued to insurance companies towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds self-insurance liabilities as well as to owners of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ental property occupied b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS in certain countries. Furthermore, in a fe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w instances guarantees have been issued to public authorities towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds tax withholding liabilities.Significant accounting estimates and judgementsOur strategic choice to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts increasingly leads to a customer case comprising large, more comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x contracts in terms of perfor-mance obligations towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds our customers. Addition-ally<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the size and complexity of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mo-bilisation costs before service delivery commences to enable fulfillment of the performance obligations. Furthermore, comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x restructuring pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects may need to be initiated and recognised as a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management assesses whether </span>contracts may be oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous by estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofitability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. This involves estimating total contract r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and the unavoidable costs of meeting the performance obligations under the con-tract, including any tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs incurred. In estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit-ability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, management makes judgements, including in relation to termination and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtension options.Certain contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e large, complex and longer term facility service partnerships. In estimating unavoid-able costs in relation to such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, management makes assumptions around futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e realisation of costs taking estimated optimisations and efficiency gains from impr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovement initiatives into consider-ation. While ISS has inherent risk in this r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espect, ISS is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e also dependent on aligning interest with the customer within the frame<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>work of the agree-ment for the benefit of both parties. The outcome may vary significantly should the assumptions and judgements applied not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected by management and applied as basis for their assess-ment of whether a contract is oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management </span>makes judgements related to various other matters and obligations, primarily relating to planned/initiated restructurings, and comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes, including ongoing lawsuits. Management’s assessment of the likely outcome of lawsuits, tax disputes, etc., is based on external legal assistance and established precedents.For large, complex contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the outcome may vary significantly should the judgements and assump-tions applied by management in their assessment of the risks and disputes not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected.Accounting policyPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when the Group, as a result of a past e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vent, has a present legal or con-structive obligation, it is probable that an outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of economic benefits will be requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and a reliable estimate can be made of the amount of the obligation. The costs requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation are discounted using the entity’s average borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owing r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, if this significantly impacts the measurement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Legal disputes and claims<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, e.g. lawsuits and other </span>disputes, based on external legal assistance and established precedents.Self-insurance <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">on emplo<span class="_ _0"/>yers’ liability and/or workers </span>compensation based on valuations from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal actuaries. Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> when a detailed, formal restructuring </span>plan is announced to the affected parties on or before the reporting date. The plan must identify the busi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ness concerned, the location and number of employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees affected, and a detailed estimate of the associated costs, as well as the timeline must be in place. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, when the unavoidable costs, </span>including directly allocated o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead costs, of meet-ing the obligations under the contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the economic benefits expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived under it, corresponding to the lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer of the costs to fulfil the obligations under the contract and the costs of exiting the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated disputes<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> based on </span>an assessment of available facts and circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual or constructive obligation exists, and it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obable that this will lead to an outflow of economic r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources from the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Decommissioning liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, if the Group has a </span>legal obligation to dismantle or remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve an asset or restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a site or leased facilities when vacated. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision corresponds to the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected costs to settle the obligation.The present value of the obligation is included in the cost of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tangible or right-of-use asset and depreciated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated future costs of decommissioning are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed annually and adjusted as appropriate. Changes in the estimated future costs, or in the discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate applied, are added to or deducted from the cost of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant asset.Contingent assets and liabilitiesContingent liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f ws78">comprise: </span>1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>possible obligations that arise from a past event and whose existence will only be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents; and2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>obligations that are not recognised as the amount cannot be measured sufficiently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eliable or it is not probable that economic benefits will be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to settle the obligation.Contingent assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f"> are possible assets whose </span>existence will be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurrence of uncertain futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e events that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not wholly within the control of the entity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Contingent assets and liabilities are not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, but disclosed in the notes. 2.5 Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>visions, contingent assets and liabilities, and guaranteesISS is exposed to various risks and uncertainties, and party to certain disputes, claims, investiga-tions and legal proceedings arising out of the normal conduct of its business. These are mainly within the following ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Commercial/contr<span class="_ _0"/>actual matters</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Labour-related</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Divestments and M&amp;A</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">T<span class="_ _5"/>ax/social regulations</span>Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions have been recognised in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to such obligations for probable losses, that management deems reasonable and appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate at 31 December 2022 as reflected in the table to the right.In addition, ISS is exposed to possible obligations in relation her<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eto as described below under 2.5.2 Contingent assets and liabilities.2.5.1 Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>visions Legal claims and disputesThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision primarily relates to labour-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated claims and disputes regar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ding wages, overtime,holiday<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance etc. as well as claims and dis-putes in relation to contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual disagreementswith customers and suppliers. In addition, the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision includes claims and disputes associ-ated with our divestment activities. Such claims and disputes arise out of the normal conduct of business. At 31 December 2022, the majority related to the UK, the US, Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Spain.Self-insuranceThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision for self-insurance mainly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to employers’ liability and/or workers compensation in certain countries and covers claims b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees for medical benefits and lost wages associated with injuries/illness incurred in the course of their employment. The r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant countries, including self-insurance limits ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e listed below:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Hong Kong:<span class="ff4"> DKK 26.8m (2021: DKK 25.2m) yearly</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">UK:<span class="ff4 ws0"> DKK 25.2m (2021: DKK 26.6m) yearly aggregated </span></span>limit and DKK 4.2m (2021: DKK 4.4m) per claim• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">Australia: <span class="ff4 ws0">DKK 4.7m (2021: DKK 3.6m) per claim</span></span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3">US: <span class="ff4">DKK 3.5m (2021: DKK 3.3m) per claim</span></span>The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision also includes obligations not cover<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by the global gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al business liability insurance in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to damage caused in the ordinary course of service delivery<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, e.g. property damage and bodily injury<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The Group is self-in-sured for claims belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w DKK 7.4 million (EUR 1 million per claim).Restructuring projectsThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision mainly covers r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estructuring projects initiated in 2020 in se<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veral countries. The purpose was to adjust our cost base on the back of Covid-19 and involved o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead reductions, including termination of emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees and contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits.In 2022, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecution of the projects continued, which led to a decrease of DKK 303 million mainly due to sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance payments in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and Spain.Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actsThe pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision covers the unavoidable costs for certain loss-making contracts. The incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased in-flation during 2022, and resulting cost incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases, was generally managed thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ough price increases and cost reductions. Consequenly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, inflation did not lead to identification of any significant new onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts or increased pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision for contracts alr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eady recognised as oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Legal claims and Self- Restruc-Onerous (DKKm)disputesinsuranceturingscontracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal2022At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 262 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 374 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 330 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 515 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,716 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> (9) 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 4 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _eb"> </span>109<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>142<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span>99<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>371Used during the year(41)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(149)(263)(191)(90)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(734)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed(28)(15)(46)(80)(8)(177)Reclass (to)/from other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (1) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> - (110)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>(109)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span>268<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>245<span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 71 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>410<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>1,071Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>47<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 129<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span>- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 23<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>266<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 465Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _188"> </span>221<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>116 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span>71<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>54<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>144<span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 6062021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _185"> </span> 133 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 261 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 787 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 460 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,926 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> (6) 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 26 Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 225 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 73 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 45 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 491 Used during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> (62)(232)(373)(21)(11)(699)Unused amounts re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span> (55)(2)(52)(16)(10)(135)Reclass (to)/from other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (5) 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 24 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 107 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 262 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 374 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 330 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 515 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 1,716 Non-current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span> 121 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 127 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 142 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 78 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 287 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 755 Current<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18c"> </span> 114 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 135 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 232 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 961 In 2022, the decrease of DKK 253 million was mainly related to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xit from the Danish<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Defence contract, including payment of an exit fee, termination of lease obligations and disposal of equipment as well as utilisation of the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision for a key account contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act in Hong Kong. Furthermore, in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and the UK impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives on a few minor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> loss-making contracts led to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eversal of<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> amounts pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in prior years.At 31 December 2022, the remaining pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision related to a ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account contract in Hong Kong and a few minor contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts in a few countries.Other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsOther pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions comprise various other risks and obligations incidental to our business, most significantly related to divestments and customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes and decommissioning liabilities.In 2022, the addition was mainly due to recogni-tion of a withdrawal liability on a multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer plan in the US related to the divestment of Specialized Services in 2021.At 31 December 2022, the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision mainly related to Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the US, UK and France.2.5.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Contingent assets andliabilities ISS is party to pending disputes, claims, investi-gations and litigations arising out of the normal conduct of its business and is therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e exposed to possible obligations. Management believes that these will not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabilities recognised in the statement of financial position at 31 December 2022. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the existence of such possible obligations will only be confirmed by the occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future events, not entir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ely within ISS’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s control. Due to the inherent uncertainty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, future events may lead to material adverse effects on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s profit or loss and financial position from one or mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of these possible obligations.Contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eementsContractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements with customers arise on a recurring basis in the or<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dinary course of ISS’s business. While most ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esolved as part of the daily contract management pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures, in some cases the contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements will lead to legal proceedings.The Group is curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently party to certain disputes and legal proceedings, including in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to the contract with Deutsche T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>elekom. The contract continues to be structurally challenging. Follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing an agreed dispute r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esolution mechanism, certain contractual disagr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eements are subject to arbitration pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceedings initiated by ISS. Labour-related risksBeing a people company operating acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss differ-ent geographies and service ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas exposes us to varying and changing labour laws, especially across Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope. Although we have policies and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es in place to ensure that we comply with current r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egulations, interpretations and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es applied by ISS could be challenged in certain jurisdictions and result in disputes and possibly liabilities.The Group is curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently party to certain labour-related claims, disputes and legal pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceedings, e.g. around wages, o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vertime, holiday and sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance. Management believes that these would not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabili-ties already r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at 31 December 2022.DivestmentsThe Group makes pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovisions for claims fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om purchasers or other parties in connection with divestments and the repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentations and warranties given in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to such divestments. In addition, the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s divestment activities can give rise to possible obligations, mainly labour-related, including pension plans, and related to disputes in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elation to sales price.Restructuring projectsRestructuring projects ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e being undertaken on an ongoing basis across differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent geographies and service areas, curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently mainly in Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and Spain. Labour laws especially in Europe include r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estrictions on dismissals and procedur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al rules to be followed. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures applied by ISS could be challenged in certain jurisdictions resulting in disputes and possibly lia-bilities. Management believes that this would not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position beyond the assets and liabilities alr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eady recognised at 31 December 2022.2.5.3 Guarantees ISS has issued certain guarantees in the normal course of business. Guarantees do not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epre-sent legal or constructive obligations and are not recognised in the statement of financial position at 31 December 2022.(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2021Bank-guaranteed 1,755<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>1,761 performance bondsOther performance bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>1,831<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span>1,819Performance guarantees (service contracts)3,586<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>3,580Indemnity and guarantee commitments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>472<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>479Performance guarantees ISS regularly issues performance guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees to customers to guarantee satisfactory completion of work in accordance with the service contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Such guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued in the ordinary course of business, either in the form of bank guarantees, par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent guarantees or insur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ances. Indemnity and guarantee commitmentsOther guarantees ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e mainly issued to insurance companies towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds self-insurance liabilities as well as to owners of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ental property occupied b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS in certain countries. Furthermore, in a fe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w instances guarantees have been issued to public authorities towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds tax withholding liabilities.Significant accounting estimates and judgementsOur strategic choice to focus on ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y accounts increasingly leads to a customer case comprising large, more comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x contracts in terms of perfor-mance obligations towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds our customers. Addition-ally<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the size and complexity of such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts often requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ISS to incur significant transition and mo-bilisation costs before service delivery commences to enable fulfillment of the performance obligations. Furthermore, comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x restructuring pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojects may need to be initiated and recognised as a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovision. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management assesses whether </span>contracts may be oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous by estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofitability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. This involves estimating total contract r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and the unavoidable costs of meeting the performance obligations under the con-tract, including any tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansition and mobilisation costs incurred. In estimating the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected future pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit-ability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, management makes judgements, including in relation to termination and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtension options.Certain contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e large, complex and longer term facility service partnerships. In estimating unavoid-able costs in relation to such contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, management makes assumptions around futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e realisation of costs taking estimated optimisations and efficiency gains from impr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovement initiatives into consider-ation. While ISS has inherent risk in this r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espect, ISS is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e also dependent on aligning interest with the customer within the frame<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>work of the agree-ment for the benefit of both parties. The outcome may vary significantly should the assumptions and judgements applied not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected by management and applied as basis for their assess-ment of whether a contract is oner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ous.Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>other pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Management </span>makes judgements related to various other matters and obligations, primarily relating to planned/initiated restructurings, and comple<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated risks and disputes, including ongoing lawsuits. Management’s assessment of the likely outcome of lawsuits, tax disputes, etc., is based on external legal assistance and established precedents.For large, complex contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts, the outcome may vary significantly should the judgements and assump-tions applied by management in their assessment of the risks and disputes not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected.Accounting policyPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when the Group, as a result of a past e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vent, has a present legal or con-structive obligation, it is probable that an outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of economic benefits will be requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and a reliable estimate can be made of the amount of the obligation. The costs requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation are discounted using the entity’s average borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owing r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, if this significantly impacts the measurement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Legal disputes and claims<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, e.g. lawsuits and other </span>disputes, based on external legal assistance and established precedents.Self-insurance <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">on emplo<span class="_ _0"/>yers’ liability and/or workers </span>compensation based on valuations from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal actuaries. Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> when a detailed, formal restructuring </span>plan is announced to the affected parties on or before the reporting date. The plan must identify the busi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ness concerned, the location and number of employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees affected, and a detailed estimate of the associated costs, as well as the timeline must be in place. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, when the unavoidable costs, </span>including directly allocated o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead costs, of meet-ing the obligations under the contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the economic benefits expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived under it, corresponding to the lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer of the costs to fulfil the obligations under the contract and the costs of exiting the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated disputes<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> based on </span>an assessment of available facts and circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual or constructive obligation exists, and it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obable that this will lead to an outflow of economic r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources from the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Decommissioning liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, if the Group has a </span>legal obligation to dismantle or remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve an asset or restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a site or leased facilities when vacated. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision corresponds to the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected costs to settle the obligation.The present value of the obligation is included in the cost of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tangible or right-of-use asset and depreciated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated future costs of decommissioning are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed annually and adjusted as appropriate. Changes in the estimated future costs, or in the discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate applied, are added to or deducted from the cost of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant asset.Contingent assets and liabilitiesContingent liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f ws78">comprise: </span>1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>possible obligations that arise from a past event and whose existence will only be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents; and2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>obligations that are not recognised as the amount cannot be measured sufficiently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eliable or it is not probable that economic benefits will be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to settle the obligation.Contingent assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f"> are possible assets whose </span>existence will be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurrence of uncertain futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e events that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not wholly within the control of the entity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Contingent assets and liabilities are not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, but disclosed in the notes. Accounting policyPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when the Group, as a result of a past e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vent, has a present legal or con-structive obligation, it is probable that an outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of economic benefits will be requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and a reliable estimate can be made of the amount of the obligation. The costs requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation are discounted using the entity’s average borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owing r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, if this significantly impacts the measurement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Legal disputes and claims<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, e.g. lawsuits and other </span>disputes, based on external legal assistance and established precedents.Self-insurance <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">on emplo<span class="_ _0"/>yers’ liability and/or workers </span>compensation based on valuations from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal actuaries. Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> when a detailed, formal restructuring </span>plan is announced to the affected parties on or before the reporting date. The plan must identify the busi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ness concerned, the location and number of employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees affected, and a detailed estimate of the associated costs, as well as the timeline must be in place. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, when the unavoidable costs, </span>including directly allocated o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead costs, of meet-ing the obligations under the contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the economic benefits expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived under it, corresponding to the lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer of the costs to fulfil the obligations under the contract and the costs of exiting the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated disputes<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> based on </span>an assessment of available facts and circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual or constructive obligation exists, and it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obable that this will lead to an outflow of economic r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources from the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Decommissioning liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, if the Group has a </span>legal obligation to dismantle or remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve an asset or restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a site or leased facilities when vacated. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision corresponds to the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected costs to settle the obligation.The present value of the obligation is included in the cost of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tangible or right-of-use asset and depreciated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated future costs of decommissioning are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed annually and adjusted as appropriate. Changes in the estimated future costs, or in the discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate applied, are added to or deducted from the cost of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant asset.Contingent assets and liabilitiesContingent liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f ws78">comprise: </span>1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>possible obligations that arise from a past event and whose existence will only be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents; and2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>obligations that are not recognised as the amount cannot be measured sufficiently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eliable or it is not probable that economic benefits will be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to settle the obligation.Contingent assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f"> are possible assets whose </span>existence will be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurrence of uncertain futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e events that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not wholly within the control of the entity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Contingent assets and liabilities are not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, but disclosed in the notes. Accounting policyPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when the Group, as a result of a past e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vent, has a present legal or con-structive obligation, it is probable that an outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of economic benefits will be requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and a reliable estimate can be made of the amount of the obligation. The costs requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation are discounted using the entity’s average borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owing r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, if this significantly impacts the measurement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Legal disputes and claims<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, e.g. lawsuits and other </span>disputes, based on external legal assistance and established precedents.Self-insurance <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">on emplo<span class="_ _0"/>yers’ liability and/or workers </span>compensation based on valuations from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal actuaries. Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> when a detailed, formal restructuring </span>plan is announced to the affected parties on or before the reporting date. The plan must identify the busi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ness concerned, the location and number of employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees affected, and a detailed estimate of the associated costs, as well as the timeline must be in place. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, when the unavoidable costs, </span>including directly allocated o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead costs, of meet-ing the obligations under the contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the economic benefits expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived under it, corresponding to the lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer of the costs to fulfil the obligations under the contract and the costs of exiting the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated disputes<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> based on </span>an assessment of available facts and circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual or constructive obligation exists, and it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obable that this will lead to an outflow of economic r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources from the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Decommissioning liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, if the Group has a </span>legal obligation to dismantle or remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve an asset or restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a site or leased facilities when vacated. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision corresponds to the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected costs to settle the obligation.The present value of the obligation is included in the cost of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tangible or right-of-use asset and depreciated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated future costs of decommissioning are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed annually and adjusted as appropriate. Changes in the estimated future costs, or in the discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate applied, are added to or deducted from the cost of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant asset.Contingent assets and liabilitiesContingent liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f ws78">comprise: </span>1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>possible obligations that arise from a past event and whose existence will only be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents; and2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>obligations that are not recognised as the amount cannot be measured sufficiently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eliable or it is not probable that economic benefits will be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to settle the obligation.Contingent assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f"> are possible assets whose </span>existence will be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurrence of uncertain futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e events that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not wholly within the control of the entity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Contingent assets and liabilities are not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, but disclosed in the notes. Accounting policyPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionsPro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised when the Group, as a result of a past e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vent, has a present legal or con-structive obligation, it is probable that an outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of economic benefits will be requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and a reliable estimate can be made of the amount of the obligation. The costs requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation are discounted using the entity’s average borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owing r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, if this significantly impacts the measurement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Legal disputes and claims<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, e.g. lawsuits and other </span>disputes, based on external legal assistance and established precedents.Self-insurance <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">on emplo<span class="_ _0"/>yers’ liability and/or workers </span>compensation based on valuations from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal actuaries. Restructurings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> when a detailed, formal restructuring </span>plan is announced to the affected parties on or before the reporting date. The plan must identify the busi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ness concerned, the location and number of employ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ees affected, and a detailed estimate of the associated costs, as well as the timeline must be in place. Onerous contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>acts<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, when the unavoidable costs, </span>including directly allocated o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verhead costs, of meet-ing the obligations under the contract e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the economic benefits expected to be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived under it, corresponding to the lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer of the costs to fulfil the obligations under the contract and the costs of exiting the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. Customer and contract-r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated disputes<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> based on </span>an assessment of available facts and circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>actual or constructive obligation exists, and it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obable that this will lead to an outflow of economic r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esources from the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup. Decommissioning liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, if the Group has a </span>legal obligation to dismantle or remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve an asset or restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e a site or leased facilities when vacated. The pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vision corresponds to the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected costs to settle the obligation.The present value of the obligation is included in the cost of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tangible or right-of-use asset and depreciated accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated future costs of decommissioning are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wed annually and adjusted as appropriate. Changes in the estimated future costs, or in the discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate applied, are added to or deducted from the cost of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant asset.Contingent assets and liabilitiesContingent liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f ws78">comprise: </span>1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>possible obligations that arise from a past event and whose existence will only be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence of future e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents; and2) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>obligations that are not recognised as the amount cannot be measured sufficiently r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eliable or it is not probable that economic benefits will be r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to settle the obligation.Contingent assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5f"> are possible assets whose </span>existence will be confirmed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the occurrence or non-occurrence of uncertain futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e events that ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not wholly within the control of the entity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Contingent assets and liabilities are not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised, but disclosed in the notes. 2.6 Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>, plant and equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/> ISS is a people business operating based on an asset light business model. Operating assets (leased and owned) comprised only 7% of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s total assets at 31 December 2022. Our model is based on leasing, rather than o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wning, property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, vehicles and equipment. Right-of-use assets At 31 December 2022, ISS was party to around 18,500 lease agreement of which the majority related to vehicles, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas in terms of asset value, the main part related to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Additions amounted to DKK 765 million in 2022, which was impacted by ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w country head office leases in Austria and Singapore and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtensions in a few other countries. This was slightly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than 2021 where additions of DKK 859 million included new head office leases in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Norway and additional new vehicle leases due to contract wins in the UK, Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, Norway, Mexico and Finland.Property plant and equipment Additions of DKK 345 million in 2022 primarily related to equipment for ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w and existing contracts and was br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oadly in line with 2021.20222021Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,plant andplant and(DKKm)Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equipment equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"/>Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Cost at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,455 2,411 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,313 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,397 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,615 Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (117)(203)(94)(414) - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> (9)(35)(40)(39) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (46) 22 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 45 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 20 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 57 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 183 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> 264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 189 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 345 347 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 140 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 859 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 335 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 34 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 7 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 27 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (16) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> (122)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span> (198)(252)(81)(531)(654)(127)(199)(96)(422)(489)Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span>-(6) 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (6)18<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>44Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span> 2,657 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,412 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,776 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 3,275 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3,455 Depreciation at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span> (1,071)(669)(281)(2,021)(2,524)(842)(689)(354)(1,885)(2,581)Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - 117 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 94 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 414 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> (1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>19<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>25<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>30(18)(12) 21 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (9)(57)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (13)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (20)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (107)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (22) (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> (5)Depreciation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> (398)(356)(134)(888)(376)(412)(368)(142)(922)(422)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> 15 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 109 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 198 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>81<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>531<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 626 126 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 199 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 95 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>420<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 456 Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (10)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(2)5(7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span>(24)Depreciation at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span> (1,272)(773)(328)(2,373)(2,358)(1,071)(669)(281)(2,021)(2,524)Carrying amount at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 1,385 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 639 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 379 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 917 1,511 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 638 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 296 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 931 Significant accounting judgementsLease term<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Sever<span class="_ _0"/>al of ISS’s lease contr<span class="_ _0"/>acts (office </span>buildings) have no contractual fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed lease term or contains an extension option. Management ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercises judgement in determining whether these extension options ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e reasonably certain to be ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercised. Management considers all r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant facts and circumstances that cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eate an economic incen<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tive for the Group to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cise the extension option.The lease term for contracts without an end date is set to ten years for head office and accessory buildings, whereas all other leases with no definite end date are set to five years. Lease liabilityThe carrying amount of lease liabilities and the movements in the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings. The maturity profile is disclosed in 4.6, Liquidity risk. Lease-related costs in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>2021Depreciation of right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 888 <span class="_ _173"> </span> 922 </span>Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 82 <span class="_ _4b"> </span> 69 </span>Leases of low-value assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 168 Short-term leases<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span> 88 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> 88 Variable lease payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> 13 Recognised in profit or loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 1,272 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 1,260 Hereof cash outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 338 Accounting policyRight-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at the com-</span>mencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of lease liabilities, including extension options. Cost comprises the amount of lease liabilities recognised, initial dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect costs, dismantling and restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs incurred and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Estimated useful lifeProperties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">5-10 years</span>Cars3-5 yearsOther equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">2-5 years</span>Certain leases have a term of 12 months or less or are leases of lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-value assets, such as minor cleaning and IT equipment and office furniture. The recognition e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e applied for these leases and lease payments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the lease term. Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is measured at </span>cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the acquisition until the date when the asset is ready for use. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of estimated liabilities related to dismantling and remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ving the asset and restoring the site on which the asset is located is added to the cost.Subsequent costs, e.g. for replacing parts of an item, are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the cost of the asset if it is probable that the futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits embod-ied by the item will flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w to the Group. The carrying amount of the item is derecognised when r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eplaced and transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to profit or loss. All other costs for common repairs and maintenance ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in profit or loss when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. Depreciation is based on the cost of an asset less its residual value. When parts of an item of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment have different useful lives, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are accounted for separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated useful life and residual value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e determined at the acquisi-tion date. If the residual value e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds the carrying amount depreciation is discontinued. Depreciation is calculated on a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aight-line basis over the estimated useful lives of the assets.Estimated useful lifePlant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">3-10 years</span>Leasehold impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vements (lease term)3-10 yearsBuildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">20-40 years</span>Land is not depreciated.Depreciation methods, useful lives and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esidual values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eassessed at each reporting date and adjusted prospectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if appropriate. Gains and losses arising on the disposal or retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment are measured as the differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence between the selling price less direct sales costs and the carrying amount, and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses in the year of sale, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept gains and losses arising on disposal of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which are recognised in Other income and expenses, net. 2.6 Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>, plant and equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/> ISS is a people business operating based on an asset light business model. Operating assets (leased and owned) comprised only 7% of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s total assets at 31 December 2022. Our model is based on leasing, rather than o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wning, property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, vehicles and equipment. Right-of-use assets At 31 December 2022, ISS was party to around 18,500 lease agreement of which the majority related to vehicles, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas in terms of asset value, the main part related to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Additions amounted to DKK 765 million in 2022, which was impacted by ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w country head office leases in Austria and Singapore and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtensions in a few other countries. This was slightly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than 2021 where additions of DKK 859 million included new head office leases in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Norway and additional new vehicle leases due to contract wins in the UK, Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, Norway, Mexico and Finland.Property plant and equipment Additions of DKK 345 million in 2022 primarily related to equipment for ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w and existing contracts and was br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oadly in line with 2021.20222021Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,plant andplant and(DKKm)Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equipment equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"/>Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Cost at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,455 2,411 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,313 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,397 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,615 Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (117)(203)(94)(414) - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> (9)(35)(40)(39) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (46) 22 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 45 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 20 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 57 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 183 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> 264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 189 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 345 347 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 140 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 859 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 335 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 34 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 7 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 27 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (16) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> (122)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span> (198)(252)(81)(531)(654)(127)(199)(96)(422)(489)Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span>-(6) 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (6)18<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>44Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span> 2,657 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,412 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,776 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 3,275 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3,455 Depreciation at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span> (1,071)(669)(281)(2,021)(2,524)(842)(689)(354)(1,885)(2,581)Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - 117 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 94 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 414 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> (1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>19<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>25<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>30(18)(12) 21 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (9)(57)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (13)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (20)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (107)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (22) (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> (5)Depreciation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> (398)(356)(134)(888)(376)(412)(368)(142)(922)(422)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> 15 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 109 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 198 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>81<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>531<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 626 126 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 199 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 95 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>420<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 456 Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (10)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(2)5(7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span>(24)Depreciation at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span> (1,272)(773)(328)(2,373)(2,358)(1,071)(669)(281)(2,021)(2,524)Carrying amount at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 1,385 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 639 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 379 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 917 1,511 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 638 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 296 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 931 Significant accounting judgementsLease term<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Sever<span class="_ _0"/>al of ISS’s lease contr<span class="_ _0"/>acts (office </span>buildings) have no contractual fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed lease term or contains an extension option. Management ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercises judgement in determining whether these extension options ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e reasonably certain to be ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercised. Management considers all r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant facts and circumstances that cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eate an economic incen<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tive for the Group to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cise the extension option.The lease term for contracts without an end date is set to ten years for head office and accessory buildings, whereas all other leases with no definite end date are set to five years. Lease liabilityThe carrying amount of lease liabilities and the movements in the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings. The maturity profile is disclosed in 4.6, Liquidity risk. Lease-related costs in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>2021Depreciation of right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 888 <span class="_ _173"> </span> 922 </span>Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 82 <span class="_ _4b"> </span> 69 </span>Leases of low-value assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 168 Short-term leases<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span> 88 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> 88 Variable lease payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> 13 Recognised in profit or loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 1,272 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 1,260 Hereof cash outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 338 Accounting policyRight-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at the com-</span>mencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of lease liabilities, including extension options. Cost comprises the amount of lease liabilities recognised, initial dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect costs, dismantling and restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs incurred and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Estimated useful lifeProperties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">5-10 years</span>Cars3-5 yearsOther equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">2-5 years</span>Certain leases have a term of 12 months or less or are leases of lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-value assets, such as minor cleaning and IT equipment and office furniture. The recognition e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e applied for these leases and lease payments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the lease term. Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is measured at </span>cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the acquisition until the date when the asset is ready for use. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of estimated liabilities related to dismantling and remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ving the asset and restoring the site on which the asset is located is added to the cost.Subsequent costs, e.g. for replacing parts of an item, are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the cost of the asset if it is probable that the futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits embod-ied by the item will flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w to the Group. The carrying amount of the item is derecognised when r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eplaced and transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to profit or loss. All other costs for common repairs and maintenance ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in profit or loss when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. Depreciation is based on the cost of an asset less its residual value. When parts of an item of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment have different useful lives, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are accounted for separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated useful life and residual value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e determined at the acquisi-tion date. If the residual value e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds the carrying amount depreciation is discontinued. Depreciation is calculated on a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aight-line basis over the estimated useful lives of the assets.Estimated useful lifePlant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">3-10 years</span>Leasehold impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vements (lease term)3-10 yearsBuildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">20-40 years</span>Land is not depreciated.Depreciation methods, useful lives and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esidual values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eassessed at each reporting date and adjusted prospectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if appropriate. Gains and losses arising on the disposal or retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment are measured as the differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence between the selling price less direct sales costs and the carrying amount, and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses in the year of sale, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept gains and losses arising on disposal of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which are recognised in Other income and expenses, net.3.1 Intangible assets 20222021Customer SoftwareCustomer Software1)2)1)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalGoodwill Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>(DKKm)Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalCost at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7e"> </span> 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 36,531 22,643 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 8,626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 35,437 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> (112) 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (107)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(9)(223) 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 112 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 536 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 644 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 884 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Additions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 454 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 454 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 248 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19f"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 364 97 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 428 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 532 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> (46) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (1)(2)(49)(20) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (106)(1)(127)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (93)(118)(211) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (12)(174)(186)Reclass (to)/from Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - 56 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (15) 91 Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _115"> </span> 23,867 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 9,293 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span>2,925<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 37,756 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 36,531 Amortisation and impairment losses at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (3,425)(74)(8,501)(1,792)(13,792)(2,981)(61)(8,302)(1,575)(12,919)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (4) 38 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>50 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (3)(218)(15)(230)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (2)(3)(5)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-Amortisation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _51"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (4)(65)(207)(276) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (10)(54)(289)(353)Impairment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (24)(24)(450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (92)(542)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _47"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 3 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 102 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 115 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 208 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 181 Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (40) 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (31)Amortisation and impairment losses at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> (3,417)(82)(8,436)(1,901)(13,836)(3,425)(74)(8,501)(1,792)(13,792)Carrying amount at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span> 20,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 857 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,024 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 23,920 19,753 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,592 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 597 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 797 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 22,739 1) Of which DKK 133 million related to software under de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment at Group level (2021: DKK 93 million).2) The impairment loss in 2021 of DKK 450 million related to France.Hyperinflation restatement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Implementation of </span>IAS 29 in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y led to a significant increase of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangible assets, in total DKK 879<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> million, net. The increase r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to goodwill (DKK 644 million), customer contracts (DKK 233 million) and software (DKK 2 million). Further details ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey.Livit FM, Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="fs14 ls0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The acquisition in </span>October 2022 added DKK 347 million to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangibles relating to goodwill (DKK 191 million) and customer contracts (DKK 156 million). Further details are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided in 3.3,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Acquisitions.Software and other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> In line with the Gr<span class="_ _0"/>oup’<span class="_ _0"/>s stra<span class="ls0">-</span></span>tegic ambition of becoming the technology leader in the industry<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, we are investing mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in software, e.g. digital applications for our customers and employees as well as cybersecur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e infrastructur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. In 2022, additions amounted to DKK 454 million (2021: DKK 248 million), the majority related to Group-wide systems and applications. Significant accounting judgementsCloud-based arrangement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At the commencement </span>date, management assesses whether the Group ac-quires an intangible asset, a leased asset or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives a service over the term of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. If the Group receives a right to access the cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider's appli-cation without further rights or control it is neither a lease nor an intangible asset. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group may acquire an intangible asset if the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the contractual right to take possession of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e during the contract period without significant penal-ty and it is feasible for the Group to run the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e on its own har<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dware or with another cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.In SaaS arrangements, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider controls the application software, the assessment of whether configuration or customisation of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e results in an intangible asset for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances or modifies, or creates additional capability to the existing on-pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emise software to enable it to connect with the cloud-based software applications. If activities are performed on the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s infrastruc-ture and applications, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y likely repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent assets that the Group contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ols because they enhance, impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve or customise existing softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e assets.Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets. 2.6 Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>, plant and equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/> ISS is a people business operating based on an asset light business model. Operating assets (leased and owned) comprised only 7% of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s total assets at 31 December 2022. Our model is based on leasing, rather than o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wning, property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, vehicles and equipment. Right-of-use assets At 31 December 2022, ISS was party to around 18,500 lease agreement of which the majority related to vehicles, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas in terms of asset value, the main part related to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Additions amounted to DKK 765 million in 2022, which was impacted by ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w country head office leases in Austria and Singapore and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtensions in a few other countries. This was slightly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than 2021 where additions of DKK 859 million included new head office leases in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Norway and additional new vehicle leases due to contract wins in the UK, Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, Norway, Mexico and Finland.Property plant and equipment Additions of DKK 345 million in 2022 primarily related to equipment for ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w and existing contracts and was br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oadly in line with 2021.20222021Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,plant andplant and(DKKm)Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equipment equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"/>Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Cost at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,455 2,411 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,313 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,397 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,615 Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (117)(203)(94)(414) - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> (9)(35)(40)(39) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (46) 22 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 45 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 20 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 57 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 183 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> 264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 189 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 345 347 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 140 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 859 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 335 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 34 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 7 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 27 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (16) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> (122)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span> (198)(252)(81)(531)(654)(127)(199)(96)(422)(489)Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span>-(6) 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (6)18<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>44Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span> 2,657 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,412 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,776 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 3,275 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3,455 Depreciation at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span> (1,071)(669)(281)(2,021)(2,524)(842)(689)(354)(1,885)(2,581)Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - 117 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 94 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 414 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> (1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>19<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>25<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>30(18)(12) 21 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (9)(57)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (13)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (20)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (107)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (22) (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> (5)Depreciation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> (398)(356)(134)(888)(376)(412)(368)(142)(922)(422)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> 15 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 109 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 198 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>81<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>531<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 626 126 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 199 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 95 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>420<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 456 Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (10)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(2)5(7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span>(24)Depreciation at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span> (1,272)(773)(328)(2,373)(2,358)(1,071)(669)(281)(2,021)(2,524)Carrying amount at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 1,385 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 639 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 379 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 917 1,511 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 638 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 296 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 931 Significant accounting judgementsLease term<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Sever<span class="_ _0"/>al of ISS’s lease contr<span class="_ _0"/>acts (office </span>buildings) have no contractual fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed lease term or contains an extension option. Management ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercises judgement in determining whether these extension options ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e reasonably certain to be ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercised. Management considers all r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant facts and circumstances that cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eate an economic incen<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tive for the Group to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cise the extension option.The lease term for contracts without an end date is set to ten years for head office and accessory buildings, whereas all other leases with no definite end date are set to five years. Lease liabilityThe carrying amount of lease liabilities and the movements in the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings. The maturity profile is disclosed in 4.6, Liquidity risk. Lease-related costs in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>2021Depreciation of right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 888 <span class="_ _173"> </span> 922 </span>Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 82 <span class="_ _4b"> </span> 69 </span>Leases of low-value assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 168 Short-term leases<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span> 88 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> 88 Variable lease payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> 13 Recognised in profit or loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 1,272 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 1,260 Hereof cash outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 338 Accounting policyRight-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at the com-</span>mencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of lease liabilities, including extension options. Cost comprises the amount of lease liabilities recognised, initial dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect costs, dismantling and restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs incurred and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Estimated useful lifeProperties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">5-10 years</span>Cars3-5 yearsOther equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">2-5 years</span>Certain leases have a term of 12 months or less or are leases of lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-value assets, such as minor cleaning and IT equipment and office furniture. The recognition e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e applied for these leases and lease payments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the lease term. Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is measured at </span>cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the acquisition until the date when the asset is ready for use. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of estimated liabilities related to dismantling and remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ving the asset and restoring the site on which the asset is located is added to the cost.Subsequent costs, e.g. for replacing parts of an item, are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the cost of the asset if it is probable that the futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits embod-ied by the item will flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w to the Group. The carrying amount of the item is derecognised when r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eplaced and transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to profit or loss. All other costs for common repairs and maintenance ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in profit or loss when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. Depreciation is based on the cost of an asset less its residual value. When parts of an item of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment have different useful lives, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are accounted for separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated useful life and residual value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e determined at the acquisi-tion date. If the residual value e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds the carrying amount depreciation is discontinued. Depreciation is calculated on a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aight-line basis over the estimated useful lives of the assets.Estimated useful lifePlant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">3-10 years</span>Leasehold impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vements (lease term)3-10 yearsBuildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">20-40 years</span>Land is not depreciated.Depreciation methods, useful lives and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esidual values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eassessed at each reporting date and adjusted prospectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if appropriate. Gains and losses arising on the disposal or retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment are measured as the differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence between the selling price less direct sales costs and the carrying amount, and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses in the year of sale, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept gains and losses arising on disposal of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which are recognised in Other income and expenses, net.3.1 Intangible assets 20222021Customer SoftwareCustomer Software1)2)1)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalGoodwill Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>(DKKm)Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalCost at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7e"> </span> 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 36,531 22,643 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 8,626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 35,437 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> (112) 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (107)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(9)(223) 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 112 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 536 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 644 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 884 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Additions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 454 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 454 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 248 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19f"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 364 97 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 428 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 532 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> (46) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (1)(2)(49)(20) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (106)(1)(127)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (93)(118)(211) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (12)(174)(186)Reclass (to)/from Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - 56 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (15) 91 Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _115"> </span> 23,867 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 9,293 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span>2,925<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 37,756 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 36,531 Amortisation and impairment losses at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (3,425)(74)(8,501)(1,792)(13,792)(2,981)(61)(8,302)(1,575)(12,919)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (4) 38 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>50 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (3)(218)(15)(230)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (2)(3)(5)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-Amortisation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _51"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (4)(65)(207)(276) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (10)(54)(289)(353)Impairment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (24)(24)(450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (92)(542)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _47"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 3 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 102 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 115 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 208 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 181 Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (40) 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (31)Amortisation and impairment losses at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> (3,417)(82)(8,436)(1,901)(13,836)(3,425)(74)(8,501)(1,792)(13,792)Carrying amount at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span> 20,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 857 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,024 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 23,920 19,753 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,592 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 597 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 797 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 22,739 1) Of which DKK 133 million related to software under de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment at Group level (2021: DKK 93 million).2) The impairment loss in 2021 of DKK 450 million related to France.Hyperinflation restatement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Implementation of </span>IAS 29 in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y led to a significant increase of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangible assets, in total DKK 879<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> million, net. The increase r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to goodwill (DKK 644 million), customer contracts (DKK 233 million) and software (DKK 2 million). Further details ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey.Livit FM, Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="fs14 ls0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The acquisition in </span>October 2022 added DKK 347 million to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangibles relating to goodwill (DKK 191 million) and customer contracts (DKK 156 million). Further details are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided in 3.3,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Acquisitions.Software and other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> In line with the Gr<span class="_ _0"/>oup’<span class="_ _0"/>s stra<span class="ls0">-</span></span>tegic ambition of becoming the technology leader in the industry<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, we are investing mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in software, e.g. digital applications for our customers and employees as well as cybersecur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e infrastructur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. In 2022, additions amounted to DKK 454 million (2021: DKK 248 million), the majority related to Group-wide systems and applications. Significant accounting judgementsCloud-based arrangement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At the commencement </span>date, management assesses whether the Group ac-quires an intangible asset, a leased asset or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives a service over the term of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. If the Group receives a right to access the cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider's appli-cation without further rights or control it is neither a lease nor an intangible asset. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group may acquire an intangible asset if the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the contractual right to take possession of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e during the contract period without significant penal-ty and it is feasible for the Group to run the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e on its own har<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dware or with another cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.In SaaS arrangements, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider controls the application software, the assessment of whether configuration or customisation of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e results in an intangible asset for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances or modifies, or creates additional capability to the existing on-pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emise software to enable it to connect with the cloud-based software applications. If activities are performed on the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s infrastruc-ture and applications, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y likely repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent assets that the Group contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ols because they enhance, impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve or customise existing softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e assets.Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets. 2.6 Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>, plant and equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/> ISS is a people business operating based on an asset light business model. Operating assets (leased and owned) comprised only 7% of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s total assets at 31 December 2022. Our model is based on leasing, rather than o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wning, property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, vehicles and equipment. Right-of-use assets At 31 December 2022, ISS was party to around 18,500 lease agreement of which the majority related to vehicles, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas in terms of asset value, the main part related to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Additions amounted to DKK 765 million in 2022, which was impacted by ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w country head office leases in Austria and Singapore and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtensions in a few other countries. This was slightly lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer than 2021 where additions of DKK 859 million included new head office leases in Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Norway and additional new vehicle leases due to contract wins in the UK, Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, Norway, Mexico and Finland.Property plant and equipment Additions of DKK 345 million in 2022 primarily related to equipment for ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w and existing contracts and was br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oadly in line with 2021.20222021Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,Right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,plant andplant and(DKKm)Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equipment equipment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _197"/>Properties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Vehicles<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Cost at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,455 2,411 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,313 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,397 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 3,615 Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (117)(203)(94)(414) - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> (9)(35)(40)(39) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (46) 22 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 45 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 20 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 57 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 183 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> 264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 189 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 345 347 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 140 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 859 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 335 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 34 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 7 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 27 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (16) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> (122)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span> (198)(252)(81)(531)(654)(127)(199)(96)(422)(489)Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _193"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span>-(6) 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (6)18<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>44Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span> 2,657 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,412 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,776 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 3,275 2,582 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,307 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 577 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 4,466 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3,455 Depreciation at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span> (1,071)(669)(281)(2,021)(2,524)(842)(689)(354)(1,885)(2,581)Prior year adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - 117 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 94 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 414 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> - Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> (1) <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>19<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>25<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span>30(18)(12) 21 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (9)(57)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (13)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (20)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> (107)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>-Impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> (22) (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> (5)Depreciation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> (398)(356)(134)(888)(376)(412)(368)(142)(922)(422)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> 15 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 109 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span> 198 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 252 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>81<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>531<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 626 126 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 199 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 95 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>420<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 456 Reclass<span xmlns="http://www.w3.org/1999/xhtml" class="_ _196"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> - (10)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(2)5(7)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span>(24)Depreciation at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span> (1,272)(773)(328)(2,373)(2,358)(1,071)(669)(281)(2,021)(2,524)Carrying amount at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 1,385 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 639 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 379 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 917 1,511 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 638 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 296 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,445 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 931 Significant accounting judgementsLease term<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Sever<span class="_ _0"/>al of ISS’s lease contr<span class="_ _0"/>acts (office </span>buildings) have no contractual fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed lease term or contains an extension option. Management ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercises judgement in determining whether these extension options ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e reasonably certain to be ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercised. Management considers all r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant facts and circumstances that cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eate an economic incen<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tive for the Group to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cise the extension option.The lease term for contracts without an end date is set to ten years for head office and accessory buildings, whereas all other leases with no definite end date are set to five years. Lease liabilityThe carrying amount of lease liabilities and the movements in the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings. The maturity profile is disclosed in 4.6, Liquidity risk. Lease-related costs in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>2021Depreciation of right-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 888 <span class="_ _173"> </span> 922 </span>Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 82 <span class="_ _4b"> </span> 69 </span>Leases of low-value assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 168 Short-term leases<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span> 88 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> 88 Variable lease payments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> 13 Recognised in profit or loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 1,272 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 1,260 Hereof cash outflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 338 Accounting policyRight-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at the com-</span>mencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of lease liabilities, including extension options. Cost comprises the amount of lease liabilities recognised, initial dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect costs, dismantling and restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs incurred and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Estimated useful lifeProperties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">5-10 years</span>Cars3-5 yearsOther equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">2-5 years</span>Certain leases have a term of 12 months or less or are leases of lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-value assets, such as minor cleaning and IT equipment and office furniture. The recognition e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e applied for these leases and lease payments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the lease term. Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is measured at </span>cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the acquisition until the date when the asset is ready for use. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of estimated liabilities related to dismantling and remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ving the asset and restoring the site on which the asset is located is added to the cost.Subsequent costs, e.g. for replacing parts of an item, are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the cost of the asset if it is probable that the futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits embod-ied by the item will flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w to the Group. The carrying amount of the item is derecognised when r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eplaced and transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to profit or loss. All other costs for common repairs and maintenance ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in profit or loss when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. Depreciation is based on the cost of an asset less its residual value. When parts of an item of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment have different useful lives, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are accounted for separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated useful life and residual value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e determined at the acquisi-tion date. If the residual value e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds the carrying amount depreciation is discontinued. Depreciation is calculated on a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aight-line basis over the estimated useful lives of the assets.Estimated useful lifePlant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">3-10 years</span>Leasehold impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vements (lease term)3-10 yearsBuildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">20-40 years</span>Land is not depreciated.Depreciation methods, useful lives and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esidual values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eassessed at each reporting date and adjusted prospectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if appropriate. Gains and losses arising on the disposal or retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment are measured as the differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence between the selling price less direct sales costs and the carrying amount, and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses in the year of sale, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept gains and losses arising on disposal of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which are recognised in Other income and expenses, net.3.1 Intangible assets 20222021Customer SoftwareCustomer Software1)2)1)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalGoodwill Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>(DKKm)Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalCost at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7e"> </span> 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 36,531 22,643 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 8,626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 35,437 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> (112) 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (107)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(9)(223) 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 112 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 536 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 644 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 884 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Additions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 454 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 454 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 248 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19f"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 364 97 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 428 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 532 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> (46) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (1)(2)(49)(20) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (106)(1)(127)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (93)(118)(211) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (12)(174)(186)Reclass (to)/from Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - 56 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (15) 91 Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _115"> </span> 23,867 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 9,293 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span>2,925<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 37,756 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 36,531 Amortisation and impairment losses at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (3,425)(74)(8,501)(1,792)(13,792)(2,981)(61)(8,302)(1,575)(12,919)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (4) 38 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>50 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (3)(218)(15)(230)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (2)(3)(5)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-Amortisation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _51"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (4)(65)(207)(276) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (10)(54)(289)(353)Impairment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (24)(24)(450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (92)(542)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _47"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 3 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 102 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 115 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 208 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 181 Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (40) 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (31)Amortisation and impairment losses at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> (3,417)(82)(8,436)(1,901)(13,836)(3,425)(74)(8,501)(1,792)(13,792)Carrying amount at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span> 20,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 857 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,024 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 23,920 19,753 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,592 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 597 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 797 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 22,739 1) Of which DKK 133 million related to software under de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment at Group level (2021: DKK 93 million).2) The impairment loss in 2021 of DKK 450 million related to France.Hyperinflation restatement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Implementation of </span>IAS 29 in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y led to a significant increase of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangible assets, in total DKK 879<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> million, net. The increase r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to goodwill (DKK 644 million), customer contracts (DKK 233 million) and software (DKK 2 million). Further details ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey.Livit FM, Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="fs14 ls0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The acquisition in </span>October 2022 added DKK 347 million to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangibles relating to goodwill (DKK 191 million) and customer contracts (DKK 156 million). Further details are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided in 3.3,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Acquisitions.Software and other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> In line with the Gr<span class="_ _0"/>oup’<span class="_ _0"/>s stra<span class="ls0">-</span></span>tegic ambition of becoming the technology leader in the industry<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, we are investing mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in software, e.g. digital applications for our customers and employees as well as cybersecur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e infrastructur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. In 2022, additions amounted to DKK 454 million (2021: DKK 248 million), the majority related to Group-wide systems and applications. Significant accounting judgementsCloud-based arrangement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At the commencement </span>date, management assesses whether the Group ac-quires an intangible asset, a leased asset or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives a service over the term of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. If the Group receives a right to access the cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider's appli-cation without further rights or control it is neither a lease nor an intangible asset. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group may acquire an intangible asset if the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the contractual right to take possession of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e during the contract period without significant penal-ty and it is feasible for the Group to run the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e on its own har<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dware or with another cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.In SaaS arrangements, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider controls the application software, the assessment of whether configuration or customisation of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e results in an intangible asset for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances or modifies, or creates additional capability to the existing on-pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emise software to enable it to connect with the cloud-based software applications. If activities are performed on the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s infrastruc-ture and applications, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y likely repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent assets that the Group contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ols because they enhance, impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve or customise existing softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e assets.Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets. Accounting policyRight-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at the com-</span>mencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of lease liabilities, including extension options. Cost comprises the amount of lease liabilities recognised, initial dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect costs, dismantling and restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs incurred and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Estimated useful lifeProperties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">5-10 years</span>Cars3-5 yearsOther equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">2-5 years</span>Certain leases have a term of 12 months or less or are leases of lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-value assets, such as minor cleaning and IT equipment and office furniture. The recognition e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e applied for these leases and lease payments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the lease term. Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is measured at </span>cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the acquisition until the date when the asset is ready for use. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of estimated liabilities related to dismantling and remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ving the asset and restoring the site on which the asset is located is added to the cost.Subsequent costs, e.g. for replacing parts of an item, are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the cost of the asset if it is probable that the futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits embod-ied by the item will flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w to the Group. The carrying amount of the item is derecognised when r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eplaced and transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to profit or loss. All other costs for common repairs and maintenance ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in profit or loss when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. Depreciation is based on the cost of an asset less its residual value. When parts of an item of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment have different useful lives, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are accounted for separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated useful life and residual value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e determined at the acquisi-tion date. If the residual value e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds the carrying amount depreciation is discontinued. Depreciation is calculated on a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aight-line basis over the estimated useful lives of the assets.Estimated useful lifePlant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">3-10 years</span>Leasehold impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vements (lease term)3-10 yearsBuildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">20-40 years</span>Land is not depreciated.Depreciation methods, useful lives and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esidual values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eassessed at each reporting date and adjusted prospectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if appropriate. Gains and losses arising on the disposal or retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment are measured as the differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence between the selling price less direct sales costs and the carrying amount, and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses in the year of sale, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept gains and losses arising on disposal of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which are recognised in Other income and expenses, net. Accounting policyRight-of-use assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised at the com-</span>mencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of lease liabilities, including extension options. Cost comprises the amount of lease liabilities recognised, initial dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect costs, dismantling and restor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation costs incurred and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Estimated useful lifeProperties<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">5-10 years</span>Cars3-5 yearsOther equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">2-5 years</span>Certain leases have a term of 12 months or less or are leases of lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-value assets, such as minor cleaning and IT equipment and office furniture. The recognition e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xemptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e applied for these leases and lease payments are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the lease term. Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is measured at </span>cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and costs dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly attributable to the acquisition until the date when the asset is ready for use. The net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of estimated liabilities related to dismantling and remo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ving the asset and restoring the site on which the asset is located is added to the cost.Subsequent costs, e.g. for replacing parts of an item, are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the cost of the asset if it is probable that the futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits embod-ied by the item will flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w to the Group. The carrying amount of the item is derecognised when r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eplaced and transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to profit or loss. All other costs for common repairs and maintenance ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in profit or loss when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. Depreciation is based on the cost of an asset less its residual value. When parts of an item of pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment have different useful lives, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y are accounted for separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The estimated useful life and residual value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e determined at the acquisi-tion date. If the residual value e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds the carrying amount depreciation is discontinued. Depreciation is calculated on a str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aight-line basis over the estimated useful lives of the assets.Estimated useful lifePlant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">3-10 years</span>Leasehold impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vements (lease term)3-10 yearsBuildings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls29">20-40 years</span>Land is not depreciated.Depreciation methods, useful lives and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esidual values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eassessed at each reporting date and adjusted prospectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if appropriate. Gains and losses arising on the disposal or retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment are measured as the differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence between the selling price less direct sales costs and the carrying amount, and are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses in the year of sale, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept gains and losses arising on disposal of property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which are recognised in Other income and expenses, net. 2.7 Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w as defined by management, cf<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 8.5, Definitions, is summarised below<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Free cash flow is not a financial performance measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e defined by IFRS. Accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the measure and its calculation is presented as it is used b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management as an alternative performance measure in managing the business. The free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w measure should not be considered a substitute for those measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed by IFRS and may not be calculated by other companies in the same manner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. As such, refer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ence is made to the IFRS measures included in the consolidated statement of cash flows of the consolidated financial statements. (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>2021Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 3,333 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 3,221 Acquisition of intangible assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (809)(628)Disposal of intangible assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 30 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 42  1)Acquisition of financial assets, net(51)(30) 2)Addition of right-of-use assets, net(769)(870)Free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span>1,734<span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 1,735 1) Excluding investments in equity-accounted investees which in 2022 was DKK (22) million (2021: DKK (24) million). 2) Including DKK 4 million (2021: DKK 13 million) related to discontinued operations, cf. 2.6, Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty, plant and equipment. 3.1 Intangible assets 20222021Customer SoftwareCustomer Software1)2)1)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalGoodwill Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>(DKKm)Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalCost at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7e"> </span> 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 36,531 22,643 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 8,626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 35,437 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> (112) 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (107)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(9)(223) 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 112 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 536 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 644 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 884 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Additions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 454 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 454 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 248 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19f"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 364 97 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 428 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 532 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> (46) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (1)(2)(49)(20) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (106)(1)(127)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (93)(118)(211) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (12)(174)(186)Reclass (to)/from Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - 56 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (15) 91 Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _115"> </span> 23,867 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 9,293 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span>2,925<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 37,756 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 36,531 Amortisation and impairment losses at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (3,425)(74)(8,501)(1,792)(13,792)(2,981)(61)(8,302)(1,575)(12,919)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (4) 38 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>50 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (3)(218)(15)(230)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (2)(3)(5)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-Amortisation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _51"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (4)(65)(207)(276) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (10)(54)(289)(353)Impairment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (24)(24)(450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (92)(542)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _47"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 3 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 102 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 115 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 208 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 181 Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (40) 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (31)Amortisation and impairment losses at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> (3,417)(82)(8,436)(1,901)(13,836)(3,425)(74)(8,501)(1,792)(13,792)Carrying amount at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span> 20,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 857 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,024 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 23,920 19,753 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,592 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 597 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 797 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 22,739 1) Of which DKK 133 million related to software under de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment at Group level (2021: DKK 93 million).2) The impairment loss in 2021 of DKK 450 million related to France.Hyperinflation restatement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Implementation of </span>IAS 29 in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y led to a significant increase of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangible assets, in total DKK 879<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> million, net. The increase r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to goodwill (DKK 644 million), customer contracts (DKK 233 million) and software (DKK 2 million). Further details ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey.Livit FM, Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="fs14 ls0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The acquisition in </span>October 2022 added DKK 347 million to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangibles relating to goodwill (DKK 191 million) and customer contracts (DKK 156 million). Further details are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided in 3.3,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Acquisitions.Software and other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> In line with the Gr<span class="_ _0"/>oup’<span class="_ _0"/>s stra<span class="ls0">-</span></span>tegic ambition of becoming the technology leader in the industry<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, we are investing mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in software, e.g. digital applications for our customers and employees as well as cybersecur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e infrastructur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. In 2022, additions amounted to DKK 454 million (2021: DKK 248 million), the majority related to Group-wide systems and applications. Significant accounting judgementsCloud-based arrangement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At the commencement </span>date, management assesses whether the Group ac-quires an intangible asset, a leased asset or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives a service over the term of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. If the Group receives a right to access the cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider's appli-cation without further rights or control it is neither a lease nor an intangible asset. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group may acquire an intangible asset if the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the contractual right to take possession of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e during the contract period without significant penal-ty and it is feasible for the Group to run the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e on its own har<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dware or with another cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.In SaaS arrangements, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider controls the application software, the assessment of whether configuration or customisation of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e results in an intangible asset for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances or modifies, or creates additional capability to the existing on-pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emise software to enable it to connect with the cloud-based software applications. If activities are performed on the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s infrastruc-ture and applications, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y likely repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent assets that the Group contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ols because they enhance, impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve or customise existing softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e assets.Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets.3.3 Acquisitions 3.3.1 Acquisition impactLivit FM, SwitzerlandOn 27 October 2022, ISS acquired 100% of the shares in Livit FM Services A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>G (Livit FM), a Swiss facility management company<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Th<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ac<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>qu<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>i<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>si<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>on will enable us to expand and de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velop our service delivery to the real estate industry segment in the Swiss market, as Livit FM services a large part of Swiss Life'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s properties in Switzerland.The acquisition will add annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 402 million and 670 employees (estimated based on unaudited financial information).During the period 27 October to 31 December 2022, Livit FM contributed re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 66 million to the ISS Group.The purchase consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation amounted to DKK 337 million. Based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values of net assets, goodwill amounted to DKK 191 million. Goodwill is attributable mainly to: 1) expertise and kno<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-how in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eal estate industry segment, 2) synergies, 3) platform for gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth, and 4) assembled work force, and is not deductible for tax purposes.Prior years adjustments The adjustments related to the acquisition of Rönesans Facility Management Company in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y in 2021. The purchase price allocation of the identified assets, liabilities and contingent liabilities was completed within 12 months of the acquisition date. Subsequent acquisitionsThe Group completed no acquisitions fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om 1 January to 15 February 2023.Prior (DKKm)Livit FM year adj. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span>2021Customer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e1"> </span> 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 428 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span> 48 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 48 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 26 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12a"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (13) (3)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 184 Other current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ae"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 105 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span> (76) 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (68)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (112)Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b0"> </span> (42)(6) (48)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (194)Fair value of net assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e7"> </span> 146 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> (6) 140 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 437 Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b1"> </span> 191 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> 97 Consideration tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b2"> </span> 337 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 343 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 534 Cash in acquired business<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e7"> </span> (33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (97)Consideration tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a3"> </span> 304 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 310 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 437 Contingent and deferred consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 89 Acquisition of businesses (cash flow) 304 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 21 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 325 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 526 Accounting policyBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate of the consideration transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee. For each business com-bination, the Group elects whether to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the non- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests in the acquiree at fair value or at the proportionate shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of the acquiree’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s identifiable net assets. Acquisition-related costs are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses, net. Any contingent consideration to be tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the acquirer is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acqui-sition date.If uncertainties exist at the acquisition date r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-garding identification or measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of assets, liabilities and contingent liabilities, initial recognition is based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values. Changes to fair values are adjusted against goodwill up until 12 months after the acquisition date and comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated accordingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Thereafter no adjustments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made to goodwill, and changes in fair values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other income and expenses, net. Goodwill is initially measured at cost (being the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcess of the aggregate of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and the amount recognised for non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interests) and any pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vious interest held o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s cash-generating units (CGUs) that are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected to benefit from the combination, irr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective of whether other assets or liabilities of the acquiree are assigned to those units. 3.3.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Pro forma r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>evenue and operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ofit Assuming acquisitions and divestments in the year were included/e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcluded in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss from 1 January 2022, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o forma basis would have been DKK 76,825 million compared to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eported re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 76,538 million. Likewise, oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items on a pro forma basis would have been DKK 2,858 million compared to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eported operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items of DKK 2,847 million. Pro forma r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items include adjustments relating to acquisitions and divestments estimated by local ISS management at the time of acquisition and divestment or actual results wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available. The estimates are based on unaudited financial information. 3.1 Intangible assets 20222021Customer SoftwareCustomer Software1)2)1)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalGoodwill Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>(DKKm)Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span>Brands contractsand other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalCost at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7e"> </span> 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 36,531 22,643 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 8,626 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,505 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 35,437 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> (112) 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (107)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span>(9)(223) 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 112 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 536 Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 644 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 235 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 884 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Additions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 454 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 454 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 248 Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19f"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 364 97 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 428 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 532 Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> (46) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (1)(2)(49)(20) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (106)(1)(127)Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (93)(118)(211) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (12)(174)(186)Reclass (to)/from Pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 6 -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - 56 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (15) 91 Cost at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _115"> </span> 23,867 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,671 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 9,293 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span>2,925<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 37,756 23,178 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,666 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 9,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 36,531 Amortisation and impairment losses at 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (3,425)(74)(8,501)(1,792)(13,792)(2,981)(61)(8,302)(1,575)(12,919)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> (4) 38 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span>8<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>50 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (3)(218)(15)(230)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (2)(3)(5)-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>-Amortisation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _51"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (4)(65)(207)(276) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (10)(54)(289)(353)Impairment <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (24)(24)(450) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (92)(542)Divestments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _47"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 3 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 102 Disposals<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 115 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 208 - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 181 Reclass to Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (40) 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (31)Amortisation and impairment losses at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b4"> </span> (3,417)(82)(8,436)(1,901)(13,836)(3,425)(74)(8,501)(1,792)(13,792)Carrying amount at 31 December <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span> 20,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,589 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 857 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,024 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 23,920 19,753 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,592 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 597 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 797 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 22,739 1) Of which DKK 133 million related to software under de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment at Group level (2021: DKK 93 million).2) The impairment loss in 2021 of DKK 450 million related to France.Hyperinflation restatement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Implementation of </span>IAS 29 in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y led to a significant increase of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangible assets, in total DKK 879<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> million, net. The increase r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to goodwill (DKK 644 million), customer contracts (DKK 233 million) and software (DKK 2 million). Further details ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey.Livit FM, Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="fs14 ls0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The acquisition in </span>October 2022 added DKK 347 million to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s intangibles relating to goodwill (DKK 191 million) and customer contracts (DKK 156 million). Further details are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovided in 3.3,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Acquisitions.Software and other<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> In line with the Gr<span class="_ _0"/>oup’<span class="_ _0"/>s stra<span class="ls0">-</span></span>tegic ambition of becoming the technology leader in the industry<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, we are investing mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in software, e.g. digital applications for our customers and employees as well as cybersecur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e infrastructur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. In 2022, additions amounted to DKK 454 million (2021: DKK 248 million), the majority related to Group-wide systems and applications. Significant accounting judgementsCloud-based arrangement <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At the commencement </span>date, management assesses whether the Group ac-quires an intangible asset, a leased asset or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceives a service over the term of the contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act. If the Group receives a right to access the cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider's appli-cation without further rights or control it is neither a lease nor an intangible asset. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the Group may acquire an intangible asset if the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the contractual right to take possession of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e during the contract period without significant penal-ty and it is feasible for the Group to run the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e on its own har<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dware or with another cloud pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.In SaaS arrangements, wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider controls the application software, the assessment of whether configuration or customisation of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e results in an intangible asset for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup depends on the output of the configuration or customisation activities performed. Part of the activities undertaken may entail the development of softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances or modifies, or creates additional capability to the existing on-pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emise software to enable it to connect with the cloud-based software applications. If activities are performed on the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s infrastruc-ture and applications, the<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y likely repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent assets that the Group contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ols because they enhance, impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve or customise existing softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e assets.Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets. Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets. Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets. Accounting policyGoodwill<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is initially recognised at cost and subse-</span>quently at cost less accumulated impairment losses. Goodwill is not amortised. Goodwill relates mainly to assembled workforce, technical e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpertise and technological knowho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Acquisition-related<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> br<span class="_ _0"/>ands<span class="ff4 fc3"> and </span>customer contracts<span class="ff4 fc3"> </span></span>are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acquisition date. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, brands with indefinite useful lives are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. Brands with finite useful lives and customer contracts ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured at cost less accumulated amortisation and impairment losses. Acquired <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">softwar<span class="_ _0"/>e<span class="ff5"> <span class="ff4 fc3">and</span> </span>other intangible assets<span class="ff4 fc3"> are </span></span>measured at cost less accumulated amortisation and impairment losses. The cost of software de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veloped for internal use includes external costs to consul-tants and software as well as internal dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ect and indirect costs r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to the development. Other development costs for which it cannot be demon-strated that futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e economic benefits will flow to the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss as and when incurred. Amortisation of intangible assets with finite useful lives is calculated on a straight-line basis o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the estimated useful lives ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for certain customer contracts wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the unit of production method bet-ter reflects the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected pattern of consumption.Estimated useful lifeBrands (finite useful life)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span>2-5 yearsCustomer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>10-24 yearsSoftware and other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>5-10 yearsAmortisation methods and useful lives are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eas-sessed at the reporting date and adjusted pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ospec-tively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, if appropriate.Cloud-based arrangements<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Softwar<span class="_ _0"/>e within a </span>cloud-based arrangement is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as either an intangible asset, a leased asset or as a service received (Softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e as a Service) based on the contact and facts and circumstances of the softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e.Software as a Service (SaaS) arr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>angements are ser-vice contracts pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oviding the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup with the right to access a cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>'s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e over the contract period. Costs incurred to configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e or customise, and the ongoing fees to obtain access to the cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vi-der<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s application softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised as Other operating e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses when the services are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived. Also, internal costs such as costs related to selection of cloud pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, data conversion, training and testing are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred in Other oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating expenses. In some arrangements, certain configur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation and customisation activities undertaken in implement-ing SaaS arrangements may give rise to a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate asset, i.e. the development of a softwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e code that enhances, modifies or creates additional capability to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s existing on-premise systems. Costs incurred for these activities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised as intangible assets if they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e identifiable and meet the recognition criteria and amortised o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the useful life of the software similar to other intangible assets. 3.2 Impairment tests3.2.1 Impairment test results 2022 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/> The impairment tests of goodwill, customer con-tracts and br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ands performed at 31 December 2022 did not result in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition of impairment losses (2021: DKK 450 million in France).Except for Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance, it is management’s opinion that ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cess values in the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GUs are fairly resilient to any likely and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easonable deteriora-tions in the key assumptions applied.France is further described on p. 74.3.2.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Goodwill and customer contracts The carrying amounts of intangibles for CGUs repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esenting more than 5% of intangibles, or CGUs consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to be at high risk of impair-ment are disclosed belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6a"> </span>2021Customer Customer (DKKm)Goodwillcontracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>Goodwillcontracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalUK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span> 2,562 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 99 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 2,661 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 2,748 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 121 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 2,869 US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> 2,197 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 155 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 2,352 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 2,068 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 2,229 Finland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 2,098 Switzerland <span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span> 1,598 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 157 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,755 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,334 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 1,334 Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> 1,620 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,620 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,652 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 1,652 Australia &amp; NZ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10c"> </span> 1,327 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> 2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 1,336 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,340 Belgium &amp; Lux.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 1,319 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span>848<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 434 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>1,282<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> 260 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 555 Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span> 1,228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,295 France<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 936 Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span>4,717<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span>4,727<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span> 4,707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 16 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 4,723 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span> 20,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 857 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span>21,307<span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 19,753 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 597 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 20,350 <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Re</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">venue</span>1)Acquisition-related intangibles2)– by risk category 22.9DKKbn96% Low risk0<span xmlns="http://www.w3.org/1999/xhtml" class="fc2 ls56 ws67">4% </span>High risk1) Comprise goodwill, customer contracts and brands. 2) Internal assessment of likelihood of incurring a material impairment loss.Cash-generating units (C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GUs)Consistent with the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s management and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> reporting structur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e, the lowest le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel of CGUs is the individual countries, as cash inflows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e generated largely independent of cash inflo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws in other ISS countries (the majority of our contract portfolio is locally based with no cross-bor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>der ac<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tivities). Accordingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, impairment tests are carried out per country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, and intangibles (i.e. goodwill and customer contracts) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e allocated to these.Management of certain countries has been combined to take advantage of similarities in terms of markets, shared customers and cost synergies. In such ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceptional cases, the coun-tries are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egarded as one C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU when performing the impairment test.Calculating reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts The reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount of each C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU is calculat-ed on the basis of its value-in-use using certain key assumptions per C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU, i.e. r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth, operating margin and discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate as sho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wn in the table to the right.Value-in-use cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w projections for the individual CGUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on financial forecasts for the following year as appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y man-agement. Assumptions applied in the short to medium term (forecasting period of five years) generally r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect management’s e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations considering all rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant factors, including the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s strategic initiatives, local initiatives, past experience and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal sources of information, where possible and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant. This also includes expected de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopment in local markets in terms of competition, inflation and gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth.More specifically<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, management has considered the expected impacts fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the OneISS strategic priorities, especially around continued ke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y account focus, investments in technology and the global operating model. Wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant, initiated restruc-turings and other impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives, have also been taken into consideration when estimating the expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e performance and cash flows.In 2022, the Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eached its turnaround tar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>get fol<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>lowing impr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved financial performance in the UK, on the Deutsche T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>elekom contract and with the exit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>omthe Danish Defence contract. Management car<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efully considered the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected continued impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement to ensure that it is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operly reflected in determining the key assumptions for the specific C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GUs.Management also ensured that financial for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecasts and assumptions applied reflect the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected macroeconomic de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments, which in 2022 primarily related to the impact fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om increased interest and inflation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates. During the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the Group demonstr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated its ability to manage and mitigate price increases in the supply chain, including activating indexation mechanisms in the contract portfolio to pass on price incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eases to our customers. Furthermore, the impact fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om Covid-19reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very in 2022 has been considered.Assumptions applied in the terminal period gener<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ally reflect management’s long-term e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for the individual country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Revenue gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects inflation and GDP gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth and is determined based on input from e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal sources like IMF’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s “<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>World Economic Outlook”. Operating margin r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the expected normalised earnings le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel in the long term.Corporate costs for the services performed b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s head office functions for the benefit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> of the CGUs ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e allocated to the individual CGUs and taken into account in the calculation of the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount.Key1)assumptions Basis for assumptionRevenue Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ear 1gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Financial forecasts as appr<span class="_ _0"/>oved b<span class="_ _0"/>y management </span>Forecasting period (year 2-5)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Based on expected market de<span class="_ _0"/>velopment, including maturity and inflation</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Impact from local and Gr<span class="_ _0"/>oup initiatives are consider<span class="_ _0"/>ed, including key </span>account focusT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>erminal period• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Long term expectations based on IMF “World Economic Outlook”</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _ce"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Not ex<span class="_ _0"/>ceeding expected long-term aver<span class="_ _0"/>age for the country<span class="_ _0"/>, including inflation</span>Operating Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ear 1margin• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Financial forecasts as appro<span class="_ _0"/>ved by management</span>Forecasting period (year 2-5)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Impact from local and Group initiatives ar<span class="_ _0"/>e considered, including ke<span class="_ _0"/>y ac<span class="ls0">-</span></span>count focus and investments in technology and the global operating model• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Restructurings and other local impro<span class="_ _0"/>vement initiatives are consider<span class="_ _0"/>ed</span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>erminal period• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Reflects the expected normalised earnings le<span class="_ _0"/>vel in the long term</span>Discount rates• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Risk-free interest rate based on 10-year go<span class="_ _0"/>vernment bonds (country-specific)</span>(net of tax)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Premium added to adjust for the inconsistency of applying go<span class="_ _0"/>vernment </span>bonds with a short-term maturity when discounting cash flows with infinite maturity• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Country specific estimation risk premium added (to r<span class="_ _0"/>eflect possible </span>variations in amounts/timing of the projected cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Equity risk premium: 6.0% (2021: 6.5%)</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Debt/equity target ratio (market values): 25/75 (2021: 25/75)</span>1) The key assumptions applied are used for accounting purposes and should not be consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed a forward-looking statement within the meaning of the US Private Securities Litigation Act of 1995 and similar laws in other countries regarding e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations to the future development.A sensitivity analysis on the key assumptionsin the impairment testing is presented to the right. The allowed change r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epresents the percentage points b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y which the specific key assumption can change, all other things being equal, before the C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount equals its carrying amount.Management's assessment of risk of incurring an impairment loss is based on the estimated ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cess value for the specific CGU<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.France<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fs14 ls0 ws0"> <span class="_ _0"/><span class="ff4 fs3 fc3 ls41">During 2022, the original restructuring and </span></span>cost optimisation progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme was finalised, though with a lower impact than initially anticipated, in part due to exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e to certain industry segments with slow Co<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vid-19 reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very and muted commercial momentum. At the same time, interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates and inflation rates incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased significantly during the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Thus, organic growth and oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating margin for the year were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ealised below tar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>get.In the late part of 2022, the country leadership team was strengthened with a ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w country manager and enhanced commercial and oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>a-tional resour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ces to ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecute an updated business impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement plan. In addition, in December 2022 the French parliament announced a gradual abolition of the CV<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>AE (value-added tax of 1.5% of re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue) with partial effect in 2023 and full effect from 2024.As a result of these significant internal and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal circumstances and de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments in 2022, manage-ment updated the business plan, which in general reflects a slo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer pace in reaching a sustainable operating margin of 5.0%. Forecasting period<span xmlns="http://www.w3.org/1999/xhtml" class="_ _26"> </span>Terminal periodDiscount rate, 1)Gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span>MarginGro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span>Marginnet of taxCarrying Allowed Allowed Allowed Allowed Allowed Pre-2)(DKKm)amount<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>Risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>Avg.decrease<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>Avg.decrease<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Ratedecrease<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Ratedecrease<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Rateincreasetax2022UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 2,661 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _d0"> </span></span>4.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;4.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 5.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;5.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 10.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 12.9 %US &amp; Canada<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span> 2,352 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _181"> </span></span>6.1 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>&gt;6.1 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 5.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;5.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> &gt;3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 10.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 13.9 %Finland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>1.9 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;1.9 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>5.3 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 8.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 10.5 %Switzerland <span xmlns="http://www.w3.org/1999/xhtml" class="_ _159"> </span> 1,755 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>2.3 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;2.3 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 7.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;7.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>6.9 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 7.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>&gt;7.0 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 8.3 %Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span> 1,620 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _181"> </span></span>1.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>&gt;1.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span> &gt;2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 10.8 %Australia &amp; NZ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span> 1,329 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>2.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;2.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 5.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;5.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 9.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 9.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 14.1 %Belgium &amp; Lux.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>2.5 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>&gt;2.5 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 9.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 11.6 %T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> 1,282 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _d1"> </span></span>36.0 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>17.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 8.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;8.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 10.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span> &gt;10.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 8.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 5.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 21.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 10.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 27.3 %Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span> 1,228 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ls20 ws27">Low<span class="_ _181"> </span></span>2.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span>&gt;2.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 7.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;7.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;7.8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 9.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>&gt;9.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 11.8 %France<span xmlns="http://www.w3.org/1999/xhtml" class="_ _175"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1">High<span class="_ _d0"> </span></span>1.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span>1.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 0.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>0.7 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 5.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span>0.4 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 9.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>0.6 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 11.4 %2021UK &amp; Ireland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span> 2,869 Low<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs61 fc3 ls0 ws0"> 3.9 % <span class="_ _69"> </span> &gt;3.9 % <span class="_ _52"> </span> 4<span class="fs24">.</span>6 % <span class="_ _37"> </span> &gt;4.6 % <span class="_ _52"> </span> 2.5 % <span class="_ _69"> </span> &gt;2<span class="fs24">.</span>5 % <span class="_ _52"> </span> 6<span class="fs24">.</span>0 % <span class="_ _8e"> </span> 3<span class="fs24">.</span>8 % <span class="_ _52"> </span> 8<span class="fs24">.</span>7 % <span class="_ _8e"> </span> 7.9 % <span class="_ _15d"> </span> 11.3 %</span>US &amp; Canada <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 2,229 Low<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs61 fc3 ls0 ws0"> 13.1 % <span class="_ _93"> </span> &gt;13.1 % <span class="_ _52"> </span> 6<span class="fs24">.</span>8 % <span class="_ _37"> </span> &gt;6.8 % <span class="_ _52"> </span> 3.0 % <span class="_ _69"> </span> &gt;3<span class="fs24">.</span>0 % <span class="_ _52"> </span> 6<span class="fs24">.</span>8 % <span class="_ _8e"> </span> 4<span class="fs24">.</span>6 % <span class="_ _52"> </span> 9<span class="fs24">.</span>0 % <span class="_ _8e"> </span> 8.7 % <span class="_ _d2"> </span><span class="fs24"> 11.6 %</span></span>Finland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16"> </span> 2,098 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">Low<span class="_ _76"> </span></span> 1.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;1.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 5.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 9.1 %</span>Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span> 1,652 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _163"> </span></span> (1.8) % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 6.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 1.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 9.8 %</span>Australia &amp; NZ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> 1,340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _76"> </span></span> 2.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;2<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;6.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 4<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 12.3 %Switzerland <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span> 1,334 Low<span xmlns="http://www.w3.org/1999/xhtml" class="_ _76"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs61 fc3 ls0 ws0"> 1.5 % <span class="_ _69"> </span> &gt;1<span class="fs24">.</span>5 % <span class="_ _52"> </span> 7.1 % <span class="_ _37"> </span> &gt;7.1 % <span class="_ _52"> </span> 1.5 % <span class="_ _69"> </span> &gt;1<span class="fs24">.</span>5 % <span class="_ _52"> </span> 7<span class="fs24">.</span>1 % <span class="_ _8e"> </span> 5<span class="fs24">.</span>9 % <span class="_ _52"> </span> 6.3 % <span class="_ _69"> </span> &gt;6.3 % <span class="_ _5e"> </span><span class="fs24"> 7.6 %</span></span>Belgium &amp; Lux.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span> 1,319 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _76"> </span></span> 3.6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;3<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>6 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;5.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 1<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 1.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 9.8 %</span>Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 1,295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _76"> </span></span> 6.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;7.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 7<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;8.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 11.0 %</span>Sweden<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ac"> </span> 1,010 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1 ls20 ws27">L<span class="_ _1d"/>ow<span class="_ _76"> </span></span> 3.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;3<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> &gt;5.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 6<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 4<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>8 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> &gt;8.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 10.0 %</span>France<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ad"> </span> 936 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24 fc1">High<span class="_ _37"> </span></span> 1.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 0<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 3.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 0.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 2.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 0.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 5<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 0<span xmlns="http://www.w3.org/1999/xhtml" class="fs24">.</span>1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 8.9 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 0.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24"> 13.7 %</span>1) Excluding allocated corporate costs.2) Risk is assessed based on the estimated excess value for the specific C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU.The impairment test at 31 December 2022 based on the updated business plan did not result in recognition of an impairment loss. The e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcess value continues to be limited though slightly impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ved as a result of the gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>adual abolition of the CV<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>AE tax.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="ff6"> <span class="ff4 fc3">The implementation of IAS 29 resulted </span></span>in an increase in the carrying amount of goodwill and customer contracts of DKK 0.9 billion. The impairment test at 31 December 2022 based on the updated business plan reflecting the current inflationary envir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>onment, did not result in recognition of an impairment loss.3.2.3 Brands The carrying amount of brands r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates mainly to the ISS brand and amounted to DKK 1,589 million at 31 December 2022 (2021: DKK 1,592 million). Management believes that the value of the ISS brand supports the ISS Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup in its entirety r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ather than any individual CGU<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Accord-ingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the ISS brand is tested for impairment at Group le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel. The impairment test is based on group-wide cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws adjusted for the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s total goodwill and other non-current assets. In 2022, no impairment of the ISS brand has been identified.Sensitivity analysisNo sensitivity is shown for the ISS br<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>and, as thegroup-wide cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws adjusted for the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’stotal goodwill and other non-current assetssignificantly ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceed the carrying amount. This is additionally supported by ISS'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s market capitalisation at 31 December 2022 of appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-imately DKK 27 billion ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeding the carrying amount of equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, which amounted to DKK 10,815 million.Significant accountingestimatesIn performing the impairment test, manage-ment assesses whether the CGU to which the intangibles relate will be able to gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate positive net cash flows sufficient to support the value of intangibles and other net assets. The assessment is based on estimates of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows (value-in-use) for the individual GCU<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, which by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are uncertain.Estimates are made using financial for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecasts for the following year as appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management, and estimated discount rates, gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth and market developments. Assumptions applied in the short to medium term (forecasting period of five years) generally r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect management’s expecta-tions considering all rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant factors, including estimated optimisations and efficiency gains from impro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vement initiatives, past experience and external sour<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ces of information, where possible and rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>erminal growth r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates and margins applied reflects management’s long-term e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpectations for re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth for the individual CGUs, including inflation, and normalised earnings, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.The outcome of the impairment test may vary significantly should the assumptions, estimates and judgements not be realised as e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected and applied as basis for management’s conclusion of whether impairment of a CGU has occurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed.Accounting policyIntangible assets with an indefinite useful life, i.e. goodwill and the ISS brand, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e subject to impairment testing annually or when circumstanc-es indicate that the carrying amount may not be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable. Other non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets are tested annually for indications of impairment.If an indication of impairment exists, the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecover-able amount of the asset is determined, i.e. the higher of the fair value of the asset less antici-pated costs of disposal and its value-in-use. The value-in-use is calculated as the present value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the asset or the CGU to which the asset belongs.The carrying amount of goodwill is tested for impairment together with the other non-current assets in the CGU to which goodwill is allocated. Management believes that the value of the ISS brand supports the ISS Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup in its entirety rather than any individual C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly, the ISS brand is tested for impairment at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level. The impairment test is based on group-wide cash flows adjusted for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s total goodwill and other non-current assets.An impairment loss is recognised in the statement of profit or loss in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate line if the carrying amount of an asset or CGU e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds its estimated reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount.Impairment of goodwill is not re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed. Impair-ment of other assets is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed if estimates used to calculate the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount have been changed. An impairment loss is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed to the extent that the carrying amount does not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the carrying amount that would have been deter-mined, net of depreciation and amortisation, if no impairment loss had been recognised. Accounting policyIntangible assets with an indefinite useful life, i.e. goodwill and the ISS brand, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e subject to impairment testing annually or when circumstanc-es indicate that the carrying amount may not be reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable. Other non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets are tested annually for indications of impairment.If an indication of impairment exists, the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecover-able amount of the asset is determined, i.e. the higher of the fair value of the asset less antici-pated costs of disposal and its value-in-use. The value-in-use is calculated as the present value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the asset or the CGU to which the asset belongs.The carrying amount of goodwill is tested for impairment together with the other non-current assets in the CGU to which goodwill is allocated. Management believes that the value of the ISS brand supports the ISS Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup in its entirety rather than any individual C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dingly, the ISS brand is tested for impairment at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level. The impairment test is based on group-wide cash flows adjusted for the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s total goodwill and other non-current assets.An impairment loss is recognised in the statement of profit or loss in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate line if the carrying amount of an asset or CGU e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeds its estimated reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount.Impairment of goodwill is not re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed. Impair-ment of other assets is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed if estimates used to calculate the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amount have been changed. An impairment loss is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>versed to the extent that the carrying amount does not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceed the carrying amount that would have been deter-mined, net of depreciation and amortisation, if no impairment loss had been recognised. 3.3 Acquisitions 3.3.1 Acquisition impactLivit FM, SwitzerlandOn 27 October 2022, ISS acquired 100% of the shares in Livit FM Services A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>G (Livit FM), a Swiss facility management company<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Th<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ac<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>qu<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>i<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>si<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ti<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>on will enable us to expand and de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velop our service delivery to the real estate industry segment in the Swiss market, as Livit FM services a large part of Swiss Life'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s properties in Switzerland.The acquisition will add annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 402 million and 670 employees (estimated based on unaudited financial information).During the period 27 October to 31 December 2022, Livit FM contributed re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 66 million to the ISS Group.The purchase consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation amounted to DKK 337 million. Based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values of net assets, goodwill amounted to DKK 191 million. Goodwill is attributable mainly to: 1) expertise and kno<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w-how in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eal estate industry segment, 2) synergies, 3) platform for gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth, and 4) assembled work force, and is not deductible for tax purposes.Prior years adjustments The adjustments related to the acquisition of Rönesans Facility Management Company in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y in 2021. The purchase price allocation of the identified assets, liabilities and contingent liabilities was completed within 12 months of the acquisition date. Subsequent acquisitionsThe Group completed no acquisitions fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om 1 January to 15 February 2023.Prior (DKKm)Livit FM year adj. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span>2021Customer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e1"> </span> 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 161 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 428 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _171"> </span> 48 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 48 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 26 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12a"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (13) (3)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 184 Other current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ae"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 105 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1af"> </span> (76) 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (68)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (112)Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b0"> </span> (42)(6) (48)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (194)Fair value of net assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e7"> </span> 146 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> (6) 140 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 437 Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b1"> </span> 191 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 203 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> 97 Consideration tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b2"> </span> 337 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 343 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 534 Cash in acquired business<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e7"> </span> (33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (97)Consideration tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a3"> </span> 304 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 310 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 437 Contingent and deferred consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 15 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 89 Acquisition of businesses (cash flow) 304 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 21 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 325 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 526 Accounting policyBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate of the consideration transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee. For each business com-bination, the Group elects whether to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the non- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests in the acquiree at fair value or at the proportionate shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of the acquiree’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s identifiable net assets. Acquisition-related costs are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses, net. Any contingent consideration to be tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the acquirer is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acqui-sition date.If uncertainties exist at the acquisition date r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-garding identification or measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of assets, liabilities and contingent liabilities, initial recognition is based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values. Changes to fair values are adjusted against goodwill up until 12 months after the acquisition date and comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated accordingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Thereafter no adjustments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made to goodwill, and changes in fair values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other income and expenses, net. Goodwill is initially measured at cost (being the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcess of the aggregate of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and the amount recognised for non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interests) and any pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vious interest held o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s cash-generating units (CGUs) that are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected to benefit from the combination, irr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective of whether other assets or liabilities of the acquiree are assigned to those units. 3.3.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Pro forma r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>evenue and operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ofit Assuming acquisitions and divestments in the year were included/e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcluded in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss from 1 January 2022, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue on a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o forma basis would have been DKK 76,825 million compared to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eported re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 76,538 million. Likewise, oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items on a pro forma basis would have been DKK 2,858 million compared to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eported operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items of DKK 2,847 million. Pro forma r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue and oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items include adjustments relating to acquisitions and divestments estimated by local ISS management at the time of acquisition and divestment or actual results wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available. The estimates are based on unaudited financial information. Accounting policyBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate of the consideration transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee. For each business com-bination, the Group elects whether to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the non- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests in the acquiree at fair value or at the proportionate shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of the acquiree’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s identifiable net assets. Acquisition-related costs are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses, net. Any contingent consideration to be tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the acquirer is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acqui-sition date.If uncertainties exist at the acquisition date r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-garding identification or measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of assets, liabilities and contingent liabilities, initial recognition is based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values. Changes to fair values are adjusted against goodwill up until 12 months after the acquisition date and comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated accordingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Thereafter no adjustments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made to goodwill, and changes in fair values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other income and expenses, net. Goodwill is initially measured at cost (being the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcess of the aggregate of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and the amount recognised for non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interests) and any pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vious interest held o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s cash-generating units (CGUs) that are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected to benefit from the combination, irr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective of whether other assets or liabilities of the acquiree are assigned to those units. Accounting policyBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egate of the consideration transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee. For each business com-bination, the Group elects whether to measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the non- <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/>controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests in the acquiree at fair value or at the proportionate shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of the acquiree’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s identifiable net assets. Acquisition-related costs are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpensed as incurred and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses, net. Any contingent consideration to be tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the acquirer is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised at fair value at the acqui-sition date.If uncertainties exist at the acquisition date r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-garding identification or measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement of assets, liabilities and contingent liabilities, initial recognition is based on pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visionally determined fair values. Changes to fair values are adjusted against goodwill up until 12 months after the acquisition date and comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated accordingly<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Thereafter no adjustments ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e made to goodwill, and changes in fair values are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other income and expenses, net. Goodwill is initially measured at cost (being the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcess of the aggregate of the consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation transferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and the amount recognised for non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interests) and any pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vious interest held o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s cash-generating units (CGUs) that are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x-pected to benefit from the combination, irr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective of whether other assets or liabilities of the acquiree are assigned to those units. 3.4.2 Assets held for sale1)2021 (DKKm)2022 Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 148 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 165 Current assets <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a5"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 202 Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 32 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 515 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 36 Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 244 Liabilities held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 280 1) Includes Brunei.2) Includes Brunei, Portugal, Russia and T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan. 3.4 Divestments, assets held for sale and discontinued oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ations 3.4.1 DivestmentsIn 2022, the strategic divestment pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogramme was successfully completed as we divested our activ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ities in three countries in the first half of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, i.e. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan, Russia and Portugal, as well as two non-core business units, i.e. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aste Management in Hong Kong and Damage Control in the UK.In November 2022, we also signed an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee-ment to divest our activities in Brunei – the last country included in the progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme. At 31 December 2022, Brunei was therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the only remaining country classified as held for sale and discontinued operations. The divestment was subsequently completed on 9 February 2023.Going forward, we will assess the str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategic rationale and fit of our business activities on an ongoing basis as part of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s ordinary performance re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>views. As a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult, we may identify new non-cor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e activities to be divested from time to time.Profit or loss impactIn 2022, our divestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme resulted in recognition of a net gain in the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss of DKK 201 million (2021: DKK 591 million) of which DKK 82 million were pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses (see note 1.4) and DKK 119 million were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations.Annual Service <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Excludedre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venueEmployees1)(number)Company/activity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span>Countrytypefrom P/L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Interest(DKKm)Waste Management <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span>Hong Kong<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>echnical<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>February<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 134 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 232 ISS Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Country exit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 2)ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>Country exit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 2)Damage Control<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls61 ws7f">UK<span class="_ _161"> </span></span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>echnical<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>May<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 91 ISS Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span>Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>Country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 2)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b8"> </span> 1,157 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 8,122 1) Unaudited2) Presented as discontinued operationsDivestment impact(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 190 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 377 Customer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 5 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 337 Current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span> 325 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 504 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> (24)(43)Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> (24)(134)Current liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> (251)(239)Net assets disposed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 381 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 807 1)Gain/(loss) on divestment, net 168 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 666 Divestment costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span> 128 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 175 Consideration r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 677 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,648 Cash in divested businesses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (87)(130)Consideration r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 590 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,518 Contingent and deferred consideration<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span> 49 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (130)Divestment costs paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10c"> </span> (52)(197)Divestment of businesses (cash flow) 587 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,191 1) In addition, DKK 33 million was recognised in Other comprehensive income related to recycling of accumulated for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign exchange adjustments on country exitsSubsequent divestments On 9 February 2023, the Group completed the divestment of our activities in Brunei (presented as assets held for sale and discontinued operations) with an annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximately DKK 44 million and 548 employees.Apart from the divestment described abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve, the Group signed or completed no divestments from 1 January to 15 February 2023.3.4.2 Assets held for sale1)2021 (DKKm)2022 Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 148 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 165 Current assets <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a5"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 202 Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 32 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 515 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 36 Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 244 Liabilities held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 280 1) Includes Brunei.2) Includes Brunei, Portugal, Russia and T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan.3.4.3 Discontinued operations Profit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>2021Revenue <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b9"> </span> 385 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,231 Expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> (372)(1,194)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span> 13 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 37 Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 119 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 116 Goodwill impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (36)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span> 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 117 Financial income/ (expenses), net <span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 1 Net profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 118 Income tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (1)(17)Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 131 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 Earnings per share, DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _11c"> </span> </span>Basic earnings per share<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0">0.7<span class="_ _156"> </span>0.6</span>Diluted earnings per share<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>0.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>0.5Cash flows(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>2021Operating activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span> 23 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 86 Investing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> (70)(156)Financing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (16)The total net divestment gain of DKK 119 million was mainly related to T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>aiwan and Portugal. Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>viously recognised in equity had a positive impact on the net gain of DKK 33 million (2021: DKK 7 million). Discontinued <span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span>oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ations <span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0"> </span>– presented in separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate profit or loss line2022<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Brunei</span> Brunei<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Br</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">azil</span> Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Russia</span> Russia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">aiw</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">an</span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hailand</span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Brunei</span> Brunei<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Br</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">azil</span> Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Russia</span> Russia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">aiw</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">an</span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">C</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">z</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ech R</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">epublic</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hailand</span> Czech Republic<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Hungar</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">y</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Chile</span> Hungary<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hilippines</span> Philippines<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">R</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">omania</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span> Romania<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Slo</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">v</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">enia</span> Slovenia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Slo</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">v</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ak</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ia</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">S</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">w</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">eden</span> Slovakia Accounting policyDivestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">Gain or loss on disposal of an opera-</span></span>tion that is part of a CGU includes a portion of the related goodwill allocated to that C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Goodwill related to the disposed oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is measured based on the fair value of the disposed operation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elative to the fair value of the entire C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU.Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5b"> comprise non-current assets </span>and disposal groups held for sale. Liabilities held for sale are those dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly associated with the assets held for sale and disposal groups. Immediately befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e classification as held for sale, they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in accordance with the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policies. Thereafter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, they are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at the lower of their carrying amount and fair value less costs to sell. Any impairment loss is first allocated to goodwill, and then pro r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ata to remaining assets, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept that no loss is allocated to inventories, financial assets, deferred tax assets or employee benefit assets, which continue to be measured in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s account<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing policies. Once classified as held for sale, assets are not amortised or depreciated.Impairment losses on initial classification as held for sale, and subsequent gains and losses on remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss and disclosed in the notes. Assets held for sale are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in separate lines of the statement of financial position and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not restated. A disposal group is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">discontinued<span class="ff5"> </span></span>operations<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> if it is a geogr<span class="_ _0"/>aphical area, i.e. a C<span class="_ _0"/>GU </span>(country), that either has been disposed of, or is classified as held for sale. Discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately as Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restated. Cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating, investing and financing activities together with cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om continuing operations, but separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately specified in this note. 3.4 Divestments, assets held for sale and discontinued oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ations 3.4.1 DivestmentsIn 2022, the strategic divestment pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogramme was successfully completed as we divested our activ<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ities in three countries in the first half of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, i.e. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan, Russia and Portugal, as well as two non-core business units, i.e. W<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>aste Management in Hong Kong and Damage Control in the UK.In November 2022, we also signed an agr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ee-ment to divest our activities in Brunei – the last country included in the progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme. At 31 December 2022, Brunei was therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e the only remaining country classified as held for sale and discontinued operations. The divestment was subsequently completed on 9 February 2023.Going forward, we will assess the str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ategic rationale and fit of our business activities on an ongoing basis as part of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s ordinary performance re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>views. As a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult, we may identify new non-cor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e activities to be divested from time to time.Profit or loss impactIn 2022, our divestment progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme resulted in recognition of a net gain in the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss of DKK 201 million (2021: DKK 591 million) of which DKK 82 million were pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in Other income and expenses (see note 1.4) and DKK 119 million were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations.Annual Service <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Excludedre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venueEmployees1)(number)Company/activity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span>Countrytypefrom P/L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>Interest(DKKm)Waste Management <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span>Hong Kong<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>echnical<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>February<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 134 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 232 ISS Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span>Russia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>Country exit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 2)ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>Country exit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 2)Damage Control<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls61 ws7f">UK<span class="_ _161"> </span></span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>echnical<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>May<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>100%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 84 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 91 ISS Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span>Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>Country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 2)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b8"> </span> 1,157 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 8,122 1) Unaudited2) Presented as discontinued operationsDivestment impact(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 190 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 377 Customer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 5 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 337 Current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _168"> </span> 325 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 504 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> (24)(43)Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> (24)(134)Current liabilities <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> (251)(239)Net assets disposed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 381 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 807 1)Gain/(loss) on divestment, net 168 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 666 Divestment costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span> 128 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 175 Consideration r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 677 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,648 Cash in divested businesses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (87)(130)Consideration r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 590 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,518 Contingent and deferred consideration<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span> 49 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (130)Divestment costs paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10c"> </span> (52)(197)Divestment of businesses (cash flow) 587 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,191 1) In addition, DKK 33 million was recognised in Other comprehensive income related to recycling of accumulated for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign exchange adjustments on country exitsSubsequent divestments On 9 February 2023, the Group completed the divestment of our activities in Brunei (presented as assets held for sale and discontinued operations) with an annual re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximately DKK 44 million and 548 employees.Apart from the divestment described abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve, the Group signed or completed no divestments from 1 January to 15 February 2023.3.4.2 Assets held for sale1)2021 (DKKm)2022 Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 148 Other non-current assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 12 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 165 Current assets <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a5"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 202 Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 32 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 515 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 36 Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 244 Liabilities held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 280 1) Includes Brunei.2) Includes Brunei, Portugal, Russia and T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan.3.4.3 Discontinued operations Profit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>2021Revenue <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b9"> </span> 385 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 1,231 Expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _180"> </span> (372)(1,194)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span> 13 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 37 Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 119 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 116 Goodwill impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> (36)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span> 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 117 Financial income/ (expenses), net <span xmlns="http://www.w3.org/1999/xhtml" class="_ _167"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 1 Net profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 118 Income tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (1)(17)Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 131 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 101 Earnings per share, DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _11c"> </span> </span>Basic earnings per share<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0">0.7<span class="_ _156"> </span>0.6</span>Diluted earnings per share<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span>0.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>0.5Cash flows(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>2021Operating activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span> 23 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 86 Investing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6f"> </span> (70)(156)Financing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (16)The total net divestment gain of DKK 119 million was mainly related to T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>aiwan and Portugal. Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments pre<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>viously recognised in equity had a positive impact on the net gain of DKK 33 million (2021: DKK 7 million). Discontinued <span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span>oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ations <span xmlns="http://www.w3.org/1999/xhtml" class="_ _cd"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0"> </span>– presented in separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate profit or loss line2022<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Brunei</span> Brunei<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Br</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">azil</span> Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Russia</span> Russia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">aiw</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">an</span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hailand</span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Brunei</span> Brunei<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Br</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">azil</span> Portugal<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Russia</span> Russia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">aiw</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">an</span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>aiwan<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">C</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">z</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ech R</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">epublic</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">T</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hailand</span> Czech Republic<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Hungar</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">y</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Chile</span> Hungary<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">hilippines</span> Philippines<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">R</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">omania</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">P</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">or</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">tugal</span> Romania<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Slo</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">v</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">enia</span> Slovenia<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">Slo</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">v</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ak</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ia</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">S</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">w</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">eden</span> Slovakia Accounting policyDivestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">Gain or loss on disposal of an opera-</span></span>tion that is part of a CGU includes a portion of the related goodwill allocated to that C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Goodwill related to the disposed oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is measured based on the fair value of the disposed operation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elative to the fair value of the entire C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU.Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5b"> comprise non-current assets </span>and disposal groups held for sale. Liabilities held for sale are those dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly associated with the assets held for sale and disposal groups. Immediately befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e classification as held for sale, they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in accordance with the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policies. Thereafter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, they are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at the lower of their carrying amount and fair value less costs to sell. Any impairment loss is first allocated to goodwill, and then pro r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ata to remaining assets, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept that no loss is allocated to inventories, financial assets, deferred tax assets or employee benefit assets, which continue to be measured in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s account<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing policies. Once classified as held for sale, assets are not amortised or depreciated.Impairment losses on initial classification as held for sale, and subsequent gains and losses on remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss and disclosed in the notes. Assets held for sale are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in separate lines of the statement of financial position and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not restated. A disposal group is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">discontinued<span class="ff5"> </span></span>operations<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> if it is a geogr<span class="_ _0"/>aphical area, i.e. a C<span class="_ _0"/>GU </span>(country), that either has been disposed of, or is classified as held for sale. Discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately as Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restated. Cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating, investing and financing activities together with cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om continuing operations, but separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately specified in this note. Accounting policyDivestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">Gain or loss on disposal of an opera-</span></span>tion that is part of a CGU includes a portion of the related goodwill allocated to that C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Goodwill related to the disposed oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is measured based on the fair value of the disposed operation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elative to the fair value of the entire C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU.Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5b"> comprise non-current assets </span>and disposal groups held for sale. Liabilities held for sale are those dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly associated with the assets held for sale and disposal groups. Immediately befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e classification as held for sale, they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in accordance with the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policies. Thereafter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, they are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at the lower of their carrying amount and fair value less costs to sell. Any impairment loss is first allocated to goodwill, and then pro r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ata to remaining assets, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept that no loss is allocated to inventories, financial assets, deferred tax assets or employee benefit assets, which continue to be measured in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s account<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing policies. Once classified as held for sale, assets are not amortised or depreciated.Impairment losses on initial classification as held for sale, and subsequent gains and losses on remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss and disclosed in the notes. Assets held for sale are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in separate lines of the statement of financial position and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not restated. A disposal group is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">discontinued<span class="ff5"> </span></span>operations<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> if it is a geogr<span class="_ _0"/>aphical area, i.e. a C<span class="_ _0"/>GU </span>(country), that either has been disposed of, or is classified as held for sale. Discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately as Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restated. Cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating, investing and financing activities together with cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om continuing operations, but separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately specified in this note. Accounting policyDivestments<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">Gain or loss on disposal of an opera-</span></span>tion that is part of a CGU includes a portion of the related goodwill allocated to that C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU. Goodwill related to the disposed oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is measured based on the fair value of the disposed operation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elative to the fair value of the entire C<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>GU.Assets held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls5b"> comprise non-current assets </span>and disposal groups held for sale. Liabilities held for sale are those dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly associated with the assets held for sale and disposal groups. Immediately befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e classification as held for sale, they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in accordance with the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policies. Thereafter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, they are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at the lower of their carrying amount and fair value less costs to sell. Any impairment loss is first allocated to goodwill, and then pro r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ata to remaining assets, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept that no loss is allocated to inventories, financial assets, deferred tax assets or employee benefit assets, which continue to be measured in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s account<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing policies. Once classified as held for sale, assets are not amortised or depreciated.Impairment losses on initial classification as held for sale, and subsequent gains and losses on remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss and disclosed in the notes. Assets held for sale are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in separate lines of the statement of financial position and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not restated. A disposal group is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">discontinued<span class="ff5"> </span></span>operations<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> if it is a geogr<span class="_ _0"/>aphical area, i.e. a C<span class="_ _0"/>GU </span>(country), that either has been disposed of, or is classified as held for sale. Discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e presented separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately as Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations and specified in the notes. Comparatives ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restated. Cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating, investing and financing activities together with cash flows fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om continuing operations, but separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately specified in this note. 4.1 Equity 4.1.1 Share capital At 31 December 2022, ISS’s shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capital comprised a total of DKK 185,668,226 shares (2021: 185,668,226) with a nominal value of DKK 1 each. All shares wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e fully paid and freely transfer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>able. ISS has one class of shares, and no shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es carry special rights. Each share gives the holder the right to one vote at our general meetings. Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es('000)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span>185,668<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 185,668 Average number of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares(938)(970)Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (basic)184,730<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 184,698 Average number of PSUs and RSUs expected to vest<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>2,513<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>1,305Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (diluted)187,243<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>186,003Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es is calculated for the purpose of the calculation of EPSs. The calculation of average number of diluted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cludes a total of 1,244,928 (2021: 1,714,684) PSUs and RSUs which are not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to vest.4.1.2 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve(DKKm)At 1 January 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _130"> </span>Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of subsidiaries (ISS's shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eRecycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country exits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span>Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _143"> </span>Fair value adjustments of net investment hedges, net of taAt 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19e"> </span>4.1.3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>2021Purchaseprice (DKKm)Number<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>NumberAt 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> 191 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>970,082<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>970,082Settlement of vested PSUs(6)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>(31,739) - At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>185<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>938,343<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>970,082ISS holds treasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es for the purpose of covering obligations under e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xisting share-based incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes. At 31 December 2022, treasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es equaled 0.5% of the share capital. Hedging<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal (152)(1,294)(1,446) - (45)(45) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> (33)(33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 403 (33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> (33) (185)(969)(1,154)4.1.4 Proposed dividends In 2022, we reached our financial le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verage<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> target of below 3x, which was the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>er<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equisite for reinstating dividend payments. At our Capital Markets Day in November 2022, we announced our intention to pay stable and increasing dividends to shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders over time.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Our new dividend policy targets a pay-out r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio of appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximately 20-40% of adjusted net profit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> (cf. 8.5, Definitions).At the annual general meeting to be held on 13 April 2023, the Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors will propose a dividend for 2022 of 2.1 per share of DKK 1 (2021: DKK 0.0 per share), equivalent to DKK 390 million (2021: none) and a pay-out ratio of 20%.Accounting policyRetained earnings<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0"> <span class="ff4 fc3">is the Group<span class="_ _0"/>’s fr<span class="_ _0"/>ee reserves, </span></span>which includes share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium. Share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium comprises amounts above the nominal shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capital paid by shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders when shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued by ISS A/S. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0">comprises foreign ex<span class="_ _0"/>change </span>differences arising fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the translation of financial statements of foreign entities with a functional currency other than DKK as well as fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the trans-lation of non-current balances which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered part of the investment in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities and fair value adjustments of net investment hedges. On full realisation of a for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entity where contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is lost the accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjust-ments are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss in the same line item as the gain or loss. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> The cost of acquisition and pro-</span>ceeds from sale of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in reserve for tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares. Dividends r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived in relation to tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in retained earnings. Proposed dividends<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> ar<span class="_ _0"/>e recognised as a liability </span>at the date when they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e adopted at the annual general meeting (declar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation date). Dividends proposed for the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e shown in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate reserve under Equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. 4.1.5 Other comprehensive incomeAttributable to owners of ISS A/SNon-Retained T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation controllingT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (DKKm)Noteearningsreserve<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otalinterestequity2022Defined benefit plansRemeasurement gain/(loss), defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span>253<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>253(45) 208 Asset ceiling<span xmlns="http://www.w3.org/1999/xhtml" class="_ _155"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustmentsForeign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> (45)(45)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span>(57)(102)Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)(33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)Hyperinflation restatement of equity at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bc"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>411<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 814 Hedging Fair value adjustments of net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>4.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)(43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)Ta<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>xT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax related to the items above<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span> (62) 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (52)9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> (43)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bd"> </span>148<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 292<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> 440 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>318<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 758 2021Defined benefit plansRemeasurement gain/(loss), defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 1,145 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,145 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,145 Asset ceiling<span xmlns="http://www.w3.org/1999/xhtml" class="_ _155"> </span>7.1(1,080) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> (1,080) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> (1,080)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustmentsForeign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (15) 297 Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span> (7)(7) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span> (7)Hedging Fair value adjustments of net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>4.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (191)(191) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (191)Ta<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>xT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax related to the items above<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span> (11) 42 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 31 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 31 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span> 54 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 210 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (15) 195 Development in 2022In 2022, other comprehensive income in-creased b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 563 million mainly as a result of hyperinflation restatement in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey and remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement gain/losses on defined benefit plans. This was partly offset by for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments of foreign entities. 4.1.2 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve(DKKm)At 1 January 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _130"> </span>Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of subsidiaries (ISS's shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eRecycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country exits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span>Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _143"> </span>Fair value adjustments of net investment hedges, net of taAt 31 December 2022 Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es('000)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span>185,668<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 185,668 Average number of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares(938)(970)Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (basic)184,730<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 184,698 Average number of PSUs and RSUs expected to vest<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>2,513<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>1,305Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es (diluted)187,243<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>186,003Average number of shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es is calculated for the purpose of the calculation of EPSs. The calculation of average number of diluted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cludes a total of 1,244,928 (2021: 1,714,684) PSUs and RSUs which are not e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to vest. Retained earnings<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0"> <span class="ff4 fc3">is the Group<span class="_ _0"/>’s fr<span class="_ _0"/>ee reserves, </span></span>which includes share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium. Share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium comprises amounts above the nominal shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capital paid by shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders when shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued by ISS A/S. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0">comprises foreign ex<span class="_ _0"/>change </span>differences arising fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the translation of financial statements of foreign entities with a functional currency other than DKK as well as fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the trans-lation of non-current balances which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered part of the investment in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities and fair value adjustments of net investment hedges. On full realisation of a for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entity where contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is lost the accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjust-ments are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss in the same line item as the gain or loss. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> The cost of acquisition and pro-</span>ceeds from sale of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in reserve for tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares. Dividends r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived in relation to tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in retained earnings. Proposed dividends<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> ar<span class="_ _0"/>e recognised as a liability </span>at the date when they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e adopted at the annual general meeting (declar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation date). Dividends proposed for the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e shown in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate reserve under Equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Retained earnings<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0"> <span class="ff4 fc3">is the Group<span class="_ _0"/>’s fr<span class="_ _0"/>ee reserves, </span></span>which includes share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium. Share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium comprises amounts above the nominal shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capital paid by shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders when shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued by ISS A/S. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0">comprises foreign ex<span class="_ _0"/>change </span>differences arising fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the translation of financial statements of foreign entities with a functional currency other than DKK as well as fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the trans-lation of non-current balances which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered part of the investment in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities and fair value adjustments of net investment hedges. On full realisation of a for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entity where contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is lost the accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjust-ments are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss in the same line item as the gain or loss. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> The cost of acquisition and pro-</span>ceeds from sale of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in reserve for tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares. Dividends r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived in relation to tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in retained earnings. Proposed dividends<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> ar<span class="_ _0"/>e recognised as a liability </span>at the date when they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e adopted at the annual general meeting (declar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation date). Dividends proposed for the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e shown in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate reserve under Equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Retained earnings<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0"> <span class="ff4 fc3">is the Group<span class="_ _0"/>’s fr<span class="_ _0"/>ee reserves, </span></span>which includes share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium. Share pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emium comprises amounts above the nominal shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e capital paid by shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders when shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e issued by ISS A/S. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0">comprises foreign ex<span class="_ _0"/>change </span>differences arising fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the translation of financial statements of foreign entities with a functional currency other than DKK as well as fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the trans-lation of non-current balances which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e consid-ered part of the investment in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities and fair value adjustments of net investment hedges. On full realisation of a for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entity where contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol is lost the accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjust-ments are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansferred to pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss in the same line item as the gain or loss. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> The cost of acquisition and pro-</span>ceeds from sale of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in reserve for tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares. Dividends r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceived in relation to tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury shares ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in retained earnings. Proposed dividends<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> ar<span class="_ _0"/>e recognised as a liability </span>at the date when they ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e adopted at the annual general meeting (declar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation date). Dividends proposed for the year ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e shown in a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate reserve under Equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. 4.1.4 Proposed dividends In 2022, we reached our financial le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verage<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> target of below 3x, which was the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>er<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equisite for reinstating dividend payments. At our Capital Markets Day in November 2022, we announced our intention to pay stable and increasing dividends to shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholders over time.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> Our new dividend policy targets a pay-out r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio of appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximately 20-40% of adjusted net profit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> (cf. 8.5, Definitions).At the annual general meeting to be held on 13 April 2023, the Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors will propose a dividend for 2022 of 2.1 per share of DKK 1 (2021: DKK 0.0 per share), equivalent to DKK 390 million (2021: none) and a pay-out ratio of 20%. 2.1 0 390000000 4.1.3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>reasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>2021Purchaseprice (DKKm)Number<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>NumberAt 1 January <span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> 191 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>970,082<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>970,082Settlement of vested PSUs(6)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>(31,739) - At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>185<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>938,343<span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>970,082ISS holds treasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es for the purpose of covering obligations under e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xisting share-based incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes. At 31 December 2022, treasury shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es equaled 0.5% of the share capital. Hedging<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>Subsidiaries<span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal (152)(1,294)(1,446) - (45)(45) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> (33)(33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _91"> </span> 403 (33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> (33) (185)(969)(1,154) 4.1.5 Other comprehensive incomeAttributable to owners of ISS A/SNon-Retained T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ranslation controllingT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (DKKm)Noteearningsreserve<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otalinterestequity2022Defined benefit plansRemeasurement gain/(loss), defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span>253<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>253(45) 208 Asset ceiling<span xmlns="http://www.w3.org/1999/xhtml" class="_ _155"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustmentsForeign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> (45)(45)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span>(57)(102)Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)(33) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (33)Hyperinflation restatement of equity at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bc"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 403 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>411<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 814 Hedging Fair value adjustments of net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>4.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)(43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (43)Ta<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>xT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax related to the items above<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span> (62) 10 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (52)9<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> (43)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bd"> </span>148<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 292<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> 440 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>318<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 758 2021Defined benefit plansRemeasurement gain/(loss), defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span>7.1<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 1,145 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,145 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span> 1,145 Asset ceiling<span xmlns="http://www.w3.org/1999/xhtml" class="_ _155"> </span>7.1(1,080) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> (1,080) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> (1,080)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustmentsForeign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign entities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 312 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (15) 297 Recycling of accumulated foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adj. on country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span> (7)(7) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span> (7)Hedging Fair value adjustments of net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>4.7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (191)(191) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (191)Ta<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>xT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax related to the items above<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span> (11) 42 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 31 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> 31 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1bf"> </span> 54 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 156 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 210 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (15) 195 Development in 2022In 2022, other comprehensive income in-creased b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 563 million mainly as a result of hyperinflation restatement in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey and remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement gain/losses on defined benefit plans. This was partly offset by for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments of foreign entities. 4.2 Loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span>2021Issued bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c0"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 14,064 Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c1"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 2,539 Bank loans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> 340 Derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span> 108 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span> 39 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c3"> </span> 16,908 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 16,982 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> 15,945 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 16,094 Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _142"> </span> 963 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> 888 Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _137"> </span> 16,908 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 16,982 1)Cash and cash equivalents and other financial items(5,368)(3,531)Net debt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c5"> </span> 11,540 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 13,451 1) Includes securities of DKK 104 million (2021: DKK 103 million) and the net positive fair value of derivatives of DKK 50 million. Changes in loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wingsIssued Lease Bank Deri va-(DKKm)bondsliabilitiesloans tives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otal 2022At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 14,064 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 16,982 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (14)(86) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (100)Cash flows<span xmlns="http://www.w3.org/1999/xhtml" class="_ _70"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (865)(58) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (923)Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 40 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 40 Lease additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 765 Fair value adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> (108) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>43<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 4 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> (1) 124 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 140 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 108 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> 16,908 2021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 15,537 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 2,565 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 535 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>61<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 18,643 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (131) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (110)Cash flows<span xmlns="http://www.w3.org/1999/xhtml" class="_ _131"> </span> (1,577)(947)(472) - (61)(2,996)Lease additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 859 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 859 Fair value adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 33 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 202 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c7"> </span> 110 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 35 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 239 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 384 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 14,064 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> 16,982 Financing fees At 31 December 2022, accumulated financing fees amounted to DKK 57 million (2021: DKK 79 million). The decrease compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to last year was due to ordinary amortisation, which was recognised in financial e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses, amounting to DKK 22 million (2021: DKK 28 million). No new financing fees were capitalised in 2022.Fair value At 31 December 2022, the fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings was DKK 15,751 million (2021: DKK 17,441 million). The fair value of bonds was based on the quoted market price on the Luxembourg Stock Exchange and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 1 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. For the remaining loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings, fair value is in all material respects equal to the nominal value as illustrated in 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk. Accounting policyIssued bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>bank loans <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">are r<span class="_ _0"/>ecognised </span>initially at fair value net of directly attributable transaction costs and subsequently at amortised cost using the effective interest method. Any difference between the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceeds initially received and the nominal value is recognised in Financial expenses o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the loan. At the date of borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing,<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> financing fees</span> are recognised as part of loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings and subsequently amortised over the term of the loan and recognised in Financial e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses. Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> At the commencement date, the </span>Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognises lease liabilities at the present val<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ue of the lease payments to be made over the lease term. Lease payments include fixed payments less any incentive payments, variable lease payments that depend on an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, e.g. when a mini<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>mum indexation is applied, and amounts e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be paid under residual value guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees. Lease payments also include the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercise price of a pur<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>chase option reasonably certain to be e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised by the Group and payment of penalties for terminating a lease, if the lease term reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>er<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>cising the option to terminate. The present value is calculated using the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s incremental borrowing rate if the inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate implicit in the lease is not readily determinable. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the lease liability is measured at amortised cost using the effective interest meth-od. The liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a modifica-tion, a change in lease term or a change in the assessment to purchase the underlying asset. Also, the liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a change in future lease payments (e.g. a change in an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate) or due to a change in the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s estimate of the amount expected to be payable under a residual guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antee. 4.2 Loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span>2021Issued bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c0"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 14,064 Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c1"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 2,539 Bank loans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> 340 Derivatives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c2"> </span> 108 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span> 39 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c3"> </span> 16,908 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 16,982 Non-current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> 15,945 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 16,094 Current liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _142"> </span> 963 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> 888 Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="_ _137"> </span> 16,908 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 16,982 1)Cash and cash equivalents and other financial items(5,368)(3,531)Net debt<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c5"> </span> 11,540 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 13,451 1) Includes securities of DKK 104 million (2021: DKK 103 million) and the net positive fair value of derivatives of DKK 50 million. Changes in loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wingsIssued Lease Bank Deri va-(DKKm)bondsliabilitiesloans tives<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span>Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>otal 2022At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 14,064 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 16,982 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> (14)(86) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (100)Cash flows<span xmlns="http://www.w3.org/1999/xhtml" class="_ _70"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (865)(58) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (923)Acquisitions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 40 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 40 Lease additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 765 Fair value adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> (108) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>43<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 4 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 17 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> (1) 124 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 140 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 108 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> 16,908 2021At 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span> 15,537 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 2,565 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 535 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span>61<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 18,643 Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> (6) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (131) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> (110)Cash flows<span xmlns="http://www.w3.org/1999/xhtml" class="_ _131"> </span> (1,577)(947)(472) - (61)(2,996)Lease additions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16c"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 859 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 859 Fair value adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 169 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 33 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 202 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c7"> </span> 110 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 35 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 239 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 384 At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 14,064 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 39 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> 16,982 Financing fees At 31 December 2022, accumulated financing fees amounted to DKK 57 million (2021: DKK 79 million). The decrease compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to last year was due to ordinary amortisation, which was recognised in financial e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses, amounting to DKK 22 million (2021: DKK 28 million). No new financing fees were capitalised in 2022.Fair value At 31 December 2022, the fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings was DKK 15,751 million (2021: DKK 17,441 million). The fair value of bonds was based on the quoted market price on the Luxembourg Stock Exchange and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 1 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. For the remaining loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings, fair value is in all material respects equal to the nominal value as illustrated in 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk. Accounting policyIssued bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>bank loans <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">are r<span class="_ _0"/>ecognised </span>initially at fair value net of directly attributable transaction costs and subsequently at amortised cost using the effective interest method. Any difference between the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceeds initially received and the nominal value is recognised in Financial expenses o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the loan. At the date of borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing,<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> financing fees</span> are recognised as part of loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings and subsequently amortised over the term of the loan and recognised in Financial e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses. Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> At the commencement date, the </span>Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognises lease liabilities at the present val<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ue of the lease payments to be made over the lease term. Lease payments include fixed payments less any incentive payments, variable lease payments that depend on an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, e.g. when a mini<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>mum indexation is applied, and amounts e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be paid under residual value guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees. Lease payments also include the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercise price of a pur<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>chase option reasonably certain to be e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised by the Group and payment of penalties for terminating a lease, if the lease term reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>er<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>cising the option to terminate. The present value is calculated using the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s incremental borrowing rate if the inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate implicit in the lease is not readily determinable. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the lease liability is measured at amortised cost using the effective interest meth-od. The liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a modifica-tion, a change in lease term or a change in the assessment to purchase the underlying asset. Also, the liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a change in future lease payments (e.g. a change in an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate) or due to a change in the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s estimate of the amount expected to be payable under a residual guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antee. Accounting policyIssued bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> and </span>bank loans <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">are r<span class="_ _0"/>ecognised </span>initially at fair value net of directly attributable transaction costs and subsequently at amortised cost using the effective interest method. Any difference between the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oceeds initially received and the nominal value is recognised in Financial expenses o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the term of the loan. At the date of borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing,<span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1"> financing fees</span> are recognised as part of loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings and subsequently amortised over the term of the loan and recognised in Financial e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses. Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> At the commencement date, the </span>Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognises lease liabilities at the present val<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ue of the lease payments to be made over the lease term. Lease payments include fixed payments less any incentive payments, variable lease payments that depend on an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate, e.g. when a mini<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>mum indexation is applied, and amounts e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to be paid under residual value guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antees. Lease payments also include the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ercise price of a pur<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>chase option reasonably certain to be e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cised by the Group and payment of penalties for terminating a lease, if the lease term reflects the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>er<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>cising the option to terminate. The present value is calculated using the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s incremental borrowing rate if the inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate implicit in the lease is not readily determinable. Subsequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, the lease liability is measured at amortised cost using the effective interest meth-od. The liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a modifica-tion, a change in lease term or a change in the assessment to purchase the underlying asset. Also, the liability is remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed due to a change in future lease payments (e.g. a change in an index or r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate) or due to a change in the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s estimate of the amount expected to be payable under a residual guar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>antee. 4.3 Financial income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>2021Interest income on cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _de"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 Monetary gain on hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> - Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (301)(299)1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities (82)(69)Bank fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span> (50)(52)Commitment fee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span> (43)(61)1)Amortisation of financing fees (non-cash)(22)(28)Net interest on defined benefit obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span> (17)(17)Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span> (32)(30)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange losses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span> (49)(51)Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (90)Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> (596)(697)1) Measurement basis amortised cost.Monetary gain on hyperinflation restatement related to the implementation of IAS 29 "Finan-cial Reporting in Hyperinflationary Economies", cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>comprised mainly interest on issued bonds and was in line with 2021. Repurchase of EMTNs in December 2021 and lower inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses due to an interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022, cf. 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk, wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset by increased inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to a local T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish facility follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing the acquisition in 2021.Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> in 2021 r<span class="_ _0"/>elated </span>to the repur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chase of EUR 200 million of the total outstanding EUR 500 million EMTNs maturing 2024. 4.3 Financial income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>2021Interest income on cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _de"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 Monetary gain on hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> - Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (301)(299)1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities (82)(69)Bank fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span> (50)(52)Commitment fee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span> (43)(61)1)Amortisation of financing fees (non-cash)(22)(28)Net interest on defined benefit obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span> (17)(17)Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span> (32)(30)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange losses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span> (49)(51)Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (90)Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> (596)(697)1) Measurement basis amortised cost.Monetary gain on hyperinflation restatement related to the implementation of IAS 29 "Finan-cial Reporting in Hyperinflationary Economies", cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>comprised mainly interest on issued bonds and was in line with 2021. Repurchase of EMTNs in December 2021 and lower inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses due to an interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022, cf. 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk, wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset by increased inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to a local T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish facility follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing the acquisition in 2021.Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> in 2021 r<span class="_ _0"/>elated </span>to the repur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chase of EUR 200 million of the total outstanding EUR 500 million EMTNs maturing 2024. 4.3 Financial income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>2021Interest income on cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _de"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 Monetary gain on hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> - Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (301)(299)1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities (82)(69)Bank fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span> (50)(52)Commitment fee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span> (43)(61)1)Amortisation of financing fees (non-cash)(22)(28)Net interest on defined benefit obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span> (17)(17)Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span> (32)(30)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange losses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span> (49)(51)Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (90)Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> (596)(697)1) Measurement basis amortised cost.Monetary gain on hyperinflation restatement related to the implementation of IAS 29 "Finan-cial Reporting in Hyperinflationary Economies", cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>comprised mainly interest on issued bonds and was in line with 2021. Repurchase of EMTNs in December 2021 and lower inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses due to an interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022, cf. 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk, wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset by increased inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to a local T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish facility follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing the acquisition in 2021.Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> in 2021 r<span class="_ _0"/>elated </span>to the repur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chase of EUR 200 million of the total outstanding EUR 500 million EMTNs maturing 2024. 4.3 Financial income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>2021Interest income on cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _de"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 Monetary gain on hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> - Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (301)(299)1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities (82)(69)Bank fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span> (50)(52)Commitment fee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span> (43)(61)1)Amortisation of financing fees (non-cash)(22)(28)Net interest on defined benefit obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span> (17)(17)Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span> (32)(30)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange losses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span> (49)(51)Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (90)Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> (596)(697)1) Measurement basis amortised cost.Monetary gain on hyperinflation restatement related to the implementation of IAS 29 "Finan-cial Reporting in Hyperinflationary Economies", cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>comprised mainly interest on issued bonds and was in line with 2021. Repurchase of EMTNs in December 2021 and lower inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses due to an interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022, cf. 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk, wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset by increased inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to a local T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish facility follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing the acquisition in 2021.Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> in 2021 r<span class="_ _0"/>elated </span>to the repur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chase of EUR 200 million of the total outstanding EUR 500 million EMTNs maturing 2024. 4.3 Financial income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>2021Interest income on cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _de"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 Monetary gain on hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> - Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (301)(299)1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities (82)(69)Bank fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span> (50)(52)Commitment fee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span> (43)(61)1)Amortisation of financing fees (non-cash)(22)(28)Net interest on defined benefit obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span> (17)(17)Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span> (32)(30)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange losses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span> (49)(51)Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (90)Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> (596)(697)1) Measurement basis amortised cost.Monetary gain on hyperinflation restatement related to the implementation of IAS 29 "Finan-cial Reporting in Hyperinflationary Economies", cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>comprised mainly interest on issued bonds and was in line with 2021. Repurchase of EMTNs in December 2021 and lower inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses due to an interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022, cf. 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk, wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset by increased inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to a local T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish facility follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing the acquisition in 2021.Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> in 2021 r<span class="_ _0"/>elated </span>to the repur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chase of EUR 200 million of the total outstanding EUR 500 million EMTNs maturing 2024. 4.3 Financial income and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>2021Interest income on cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _de"> </span> 69 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 Monetary gain on hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a1"> </span> 138 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> - Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c8"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 41 1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (301)(299)1)Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on lease liabilities (82)(69)Bank fees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c9"> </span> (50)(52)Commitment fee<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ca"> </span> (43)(61)1)Amortisation of financing fees (non-cash)(22)(28)Net interest on defined benefit obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cb"> </span> (17)(17)Other <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cc"> </span> (32)(30)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange losses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cd"> </span> (49)(51)Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ce"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (90)Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14e"> </span> (596)(697)1) Measurement basis amortised cost.Monetary gain on hyperinflation restatement related to the implementation of IAS 29 "Finan-cial Reporting in Hyperinflationary Economies", cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Interest e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpenses on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>comprised mainly interest on issued bonds and was in line with 2021. Repurchase of EMTNs in December 2021 and lower inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses due to an interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022, cf. 4.5, Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate risk, wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset by increased inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est expenses r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to a local T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish facility follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wing the acquisition in 2021.Redemption premium, bonds<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> in 2021 r<span class="_ _0"/>elated </span>to the repur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chase of EUR 200 million of the total outstanding EUR 500 million EMTNs maturing 2024. 4.4 Financial risk management The Group is e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposed to a number of financial risks arising from its oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating and financing activi<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ties, mainly interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate risk, liquidity risk, currency risk and credit risk. It is management’s assessment that the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to these risks is lo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The Group has not identified additional financial risk exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es in 2022 compared to 2021.Financial risks are managed centr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally by Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easury based on the Financial Policy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, which is re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>viewed and appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved annually b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the Board of Directors. Exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e to credit risk on tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables and e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected credit losses is ho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wever managed locally in the operating entities, cf<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 2.1, T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade receivables and cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit risk. It is the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> policy to mitigate risk exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e derived from its business activities. Group policy does not allo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w tak-ing speculative positions in the financial markets.On an ongoing basis the Group considers whether the financial risk management approach appropriately addr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esses the risk exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es.Through our risk management pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocedures, financial risks are monitor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed and reduced to an acceptable level.An overvie<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w of financial risks and impact assessment at 31 December 2022 is pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided to the right. The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s objectives and policies for measuring and managing risk exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are explained in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective notes. Type<span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span>Risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>Basis for assessment at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>NoteCredit risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls14 ws2c">L<span class="_ _1d"/>ow<span class="_ _49"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc2">• <span class="_ _30"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">Not past due on trade r<span class="_ _0"/>eceivables is around 90% </span>2.1(aging analysis)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Expected credit losses on trade r<span class="_ _0"/>eceivables ar<span class="_ _0"/>e less </span>than 2% of gross r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables (credit r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atings)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The Group tr<span class="_ _0"/>ansacts only with financial institutions </span>with a credit r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating of at least A- (cash and cash equivalents)Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls14 ws2c">L<span class="_ _1d"/>ow<span class="_ _49"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc2">• <span class="_ _30"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">82% of the Group<span class="_ _0"/>'s bank loans and bonds carried </span>4.5fixed r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates (2021: 98%)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Duration of gr<span class="_ _0"/>oss debt (fixed-r<span class="_ _0"/>ate period) 2.9 </span>years (2021: 4.3)Liquidity risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls14 ws2c">L<span class="_ _1d"/>ow<span class="_ _49"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc2">• <span class="_ _30"> </span></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">No short-term maturities of debt</span>4.6• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Diversified funding portfolio of debt (bonds and<span class="_ _1d"/> </span>bank loans)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _ce"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws29">No financial covenants in our main Group facilities (cer<span class="ls0 ws0">-</span></span>tain covenants apply to the local loan facility in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey)Currency risk<span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc1 ls14 ws2c">Low<span class="_ _1d"/></span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4"> <span class="_ _18e"> </span><span class="ff5 fc2">• <span class="_ _30"> </span></span>The Group benefits from a natur<span class="_ _0"/>al hedge in </span>4.7having income, costs and investments in the same functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, country-by-country• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">97.6% of the Group'<span class="_ _5"/>s loans and borrowings </span>(external) denominated in EUR (2021: 97.7%)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">78.4% (2021: 78.8%) of the Group’<span class="_ _0"/>s external </span>borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings were denominated in EUR, including net investment hedges4.5 Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ate risk Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ate risk– low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureInterest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate risk arises from the possibility that changes in interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates will affect future cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws or the fair value of finan-cial instruments. Exposure r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to bank loans, bonds or interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swaps with floating interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates. Risk management policy• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At least 50% of the Group’<span class="_ _5"/>s bank loans </span>and issued bonds must carry fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly or through derivatives• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Duration of gr<span class="_ _0"/>oss debt (fixed-r<span class="_ _0"/>ate period) </span>shall be 2-6 years Mitigation• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The fixed/floating r<span class="_ _0"/>atio and gross debt </span>duration (fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed-rate period) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured on a monthly basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Interest r<span class="_ _0"/>ate swaps (fair value hedge) are </span>used to manage the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on gross debtLoans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>2021FiefloNominal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Nominal Carrying Carrying in(DKKm)interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>Currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>MaturityvalueamountamountIssued bonds (fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate)EMTNs (EUR 300 million)2.125%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2,231 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 2,229 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,226 EMTNs (EUR 500 million)1.250%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3,718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 3,594 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 3,695 EMTNs (EUR 500 million)0.875%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3,718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 3,700 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 3,695 EMTNs (EUR 600 million)1.500%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2027<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,462 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 4,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,448 14,129 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 14,064 Bank loans (floating interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate)Loan facility T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cf"> </span> TLFREF <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> TRY <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 192 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 201 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 300 Bank loans and over<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>drafts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> Multi <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 162 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 40 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 340 Fair Recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Negative value, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> profit (DKKm)fair valuenetor lossMaturityFair value hedge<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2025In May 2022, ISS entered into an inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate swap in order to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>educe the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on our gross debt. A principal amount of EUR 300 million has been swapped from a fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate to a floating rate. The fair value adjustments recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss at 31 December is disclosed above. Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate sensitivity An increase in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates of 1%-point, with all other variables held constant, would have decreased net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit by DKK 26 million (2021: decreased b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 4 million). The increase in inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate sensitivity is a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult of the interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022.The estimate was based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s floating<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> rate loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings, i.e. disr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egarding cash and cash equivalents, as the level at 31 December is typically the highest in the year and thus not a repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentative for the purpose of this analysis. Loan portfoliovs. – fixed vs. floating inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates ng <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">est r</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ates</span>202282% (98%) Fixed18%(2%) FloatingAccounting policyThe interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap qualifies as a fair value hedge as the risk being hedged is the possible change in the fair value of a recognised liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The carrying amount of the hedged item is adjusted for fair value changes attributable to the risk being hedged and changes are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss.4.6 Liquidity risk Liquidity risk – low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureLiquidity risk results fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s potential inability or difficulty in meeting the contractual obligations associated with its financial liabilities due to insufficient liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Risk management policy• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain an appropriate le<span class="_ _0"/>vel of short- </span>and long-term liquidity reserves (liquid funds and committed credit facilities)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain a smooth maturity profile in </span>terms of different maturities• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain access to diversified funding </span>sourcesMitigation• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Raising capital is managed centrally </span>in Group T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>reasury to ensure efficient liquidity management• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Group T<span class="_ _5"/>reasury monitors the risk of </span>insufficient liquidity on a daily basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Liquidity is transferr<span class="_ _0"/>ed to/from ISS </span>Global A/S, which operates as the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s internal bank• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">For day-to-day liquidity management </span>cash pools have been established in the majority of the local entities4.6.1 Contractual maturities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d2"> </span>Financial liabilitiesCarrying Contractual&lt; 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 1–2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 2–3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 3–4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 4–5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> &gt; 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (DKKm)amountcash flowsyearyearsyearsyearsyearsyears2022Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. lease <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,444 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>15,332<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>539<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>2,512 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>3,914<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>3,861<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>4,506<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> - Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,600 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 578 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 436 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 271 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 370 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade payables and other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal financial liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 20,654 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>21,678<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>5,050<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>3,090<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>4,350<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>4,132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>4,686<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>3702021Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. lease <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,443 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 15,489 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 326 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 311 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,537 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d0"> </span> 3,930 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 3,879 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 4,506 Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,658 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 786 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 561 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 418 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 289 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 197 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 407 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade payables and other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal financial liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 19,384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 20,549 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 3,514 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 872 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,955 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 4,219 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 4,076 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 4,913 The contractual maturities of financial liabilities, based on undiscounted contractual cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws, are sho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wn in the table. The undiscounted contractual cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws include expected inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est payments, estimated based on market expecta-tions at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.The risk implied from the values r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the one-sided scenario of cash outflows only<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other financial liabilities are mainly used to finance assets such as trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment. Current financingThe maturity profile of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s current financing, i.e. issued bonds and bank loans, based on nominal values including any undrawn amounts and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluding interest payments, is illustrated in the chart to the right. Debt maturity profile(DKKbn)9.7<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">10,0</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">7,5</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">5,0</span>4.53.63.7<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">2,5</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">0,0</span>2027<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2023Revolving Credit Facility (undr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>awn)EMTNs4.6.2 Liquidity reserve (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 5,214 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 3,428 Restricted cash <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span> (35)(31)Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7,276 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 7,312 Liquidity reserves<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span> 12,455 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 10,709 Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 1,078 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 1,061 Readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 11,377 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 9,648 Cash and cash equivalent<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> of DKK 5,214 </span>million reflects the str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong liquidity position of the Group. The le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is typically highest at 31 December and not a repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentative level for the rest of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Restricted cash<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> DKK 35 million of the total cash </span>and cash equivalents at 31 December 2022 was placed on blocked or restricted bank accounts due to legal cases and tax-related cir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cumstances. Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Gr<span class="_ _0"/>oup </span>has a EUR 1 billion re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facility maturing in November 2024. In addition to the unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level, local uncommitted credit facilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available in countries, which are not consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed part of the readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. At 31 December 2022, these amounted to DKK 0.9 billion of which DKK 0.2 billion was drawn (2021: DKK 1.1 billion of which all were unused).Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="_ _0"/><span class="ff4 fc3 ls14">Cash is considered r<span class="_ _0"/>eadily </span></span>available for upstreaming to the par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent company (ISS A/S) within five days. In a number of countries, transfer to ISS A/S is assessed to take mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e than five days due to local administrative pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocesses, and thus is not deemed readily available.4.7 Curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency riskCurrency risk – low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureCurrency risk is the risk that arises fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates, and affects<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s result, investments or value of financial instruments. <span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>The Group gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally benefits from a natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al hedge in having income, costs and invest<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ments in the same functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> country by country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Currency risk therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e predominantly arises fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om funding and investments in subsidiaries.Risk management policy • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">It is Group policy to pool funding activities </span>centrally and fund investments in subsidiar-ies through a combination of inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company loans and equity• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency risk on inter<span class="_ _0"/>company loans is as </span>a main policy hedged against DKK or EUR when exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeds DKK 5 million. Some currencies cannot be hedged within a reasonable price r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ange in which case cor-relation to a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oxy curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency is considered and, if deemed appropriate, pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oxy hedging is applied• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency risk on net investments ar<span class="_ _0"/>e as a </span>main policy hedged against DKK or EUR when annual EBITDA of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant func-tional currency corr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponds to 5% or more of Group EBITD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A up to an amount of 3-5x EBITDA in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency and adjusted as appropriate to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant market entry and exit risk• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Exposure to EUR is monitor<span class="_ _0"/>ed but not </span>hedged due to the fixed r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change policy between DKK/EURMitigation • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency swaps ar<span class="_ _0"/>e used to hedge currency </span>risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external), intercompany balances and long-term receivables (e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Currency exposur<span class="_ _0"/>e on loans and borr<span class="_ _0"/>owings, </span>intercompany balances and cash and cash equivalents is measured at least on a weekly basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Currency swaps (net investment hedges) </span>or debt are used to hedge the curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e to investments in subsidiaries (other than EUR).4.7.1 Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings SensitivityCurrency Currency <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e swapsExposure, Increase <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> Profit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> (DKKm)(nominal)(contractual)netin <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>FX or loss2022EUR/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span> (17,212) 7,333 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> (9,879)1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> (99)USD/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 1,431 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> (1,575)(144)10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> (14)Other/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span> (1,176) 1,774 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span> 598 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> 60 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> (16,957) 7,532 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> (9,425)2021EUR/DKK(17,375)6,864(10,511)1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> (105)USD/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span>1,505(1,639)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10e"> </span>(134)10%(13)Other/DKK(1,173)1,365<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span>192<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span>19T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal(17,043)6,590(10,453)Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity (loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings) A change in rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant currencies, with all other variables held constant, would have impacted profit or loss with the amounts abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve. The analysis is based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s internal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> monitoring of currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, intercompany loans, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal long-term receivables, cash and cash equivalents as well as accrued ro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yalties (Group internal). 4.7.2 Net investment hedgesNet Hedging of Exposure,Average Change <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Fair (DKKm)investmentinvestmentnetpricein fair valuevalue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>Maturity2022GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,699 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,216 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 483 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4f"> </span> 53 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 24 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span>1,146<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 767 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span>379<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (57) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> 1,673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 755 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 918 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (39) 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span>4,518<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,738 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1,780<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d6"> </span> (43) 70 2021GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,492 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span> (100)(18)March 2022USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,093 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 722 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 371 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (60) 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2022CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> 1,847 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,129 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (31)(4)March 2022T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 4,432 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 2,725 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 1,707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> (191)(19)Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity (net investments) A 10% change in the mentioned currencies, with all other variables held constant, would have changed the fair value recognised in Other comprehensive income b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 48 million for GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/>, by DKK 38 million for USD and by DKK 92 million for CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on equity The effect of translation of net assets in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign subsidiaries before the effect of net investment hedges decreased equity b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 102 million (2021: an increase of DKK 297 million) primarily related to T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Switzerland and the UK.Accounting policyDerivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised. 4.7.3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ranslation risk The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on transaction le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is low since income, costs and investments are in the same functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency country by country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on profit or loss In 2022, changes in weighted average e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rates r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulted in an increase in Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 689 million or 0.9% (2021: decrease of 0.6%) and a decrease of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s operating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items of DKK 16 million or 1.0% (2021: decrease of 1.2%).Change in 2021 to 2020 to avg. FX rates<span xmlns="http://www.w3.org/1999/xhtml" class="fc0">)</span>20222021GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d8"> </span> 0.8% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 3.2% CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 7.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (1.2)%USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"> </span> 12.6% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (3.8)%AUD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 3.9% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 4.8% NOK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 0.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 5.1% SEK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> (4.5)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3.1% TRY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> (40.8)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> (22.9)%EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 0.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (0.2)% ( ) = Weakened against DKK.Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity A 10% change (EUR: 1% change) in rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant currencies, with all other variables held constant, would have impacted re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items with the amounts belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit (DKKm)Revenuebefore other itemsGBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>984<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>40USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>625<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>31CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>573<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>42AUD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span>462<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>33NOK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 31 TRY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>319<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>24SEK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>298<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>16EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>240<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span> 9 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span> 1,264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d7"> </span> 60 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> 5,167 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 286 <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">curr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ency</span>Revenue b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency76.5DKKbn31% EUR13% GBP8% USD8% CHF6% AUD5% DKK4% NOK4% TRY4% SEK17% Other% of Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue 4.5 Inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ate risk Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ate risk– low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureInterest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate risk arises from the possibility that changes in interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates will affect future cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws or the fair value of finan-cial instruments. Exposure r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to bank loans, bonds or interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swaps with floating interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates. Risk management policy• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">At least 50% of the Group’<span class="_ _5"/>s bank loans </span>and issued bonds must carry fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly or through derivatives• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Duration of gr<span class="_ _0"/>oss debt (fixed-r<span class="_ _0"/>ate period) </span>shall be 2-6 years Mitigation• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">The fixed/floating r<span class="_ _0"/>atio and gross debt </span>duration (fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed-rate period) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e measured on a monthly basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Interest r<span class="_ _0"/>ate swaps (fair value hedge) are </span>used to manage the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on gross debtLoans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>2021FiefloNominal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Nominal Carrying Carrying in(DKKm)interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>Currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>MaturityvalueamountamountIssued bonds (fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate)EMTNs (EUR 300 million)2.125%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2,231 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 2,229 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,226 EMTNs (EUR 500 million)1.250%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3,718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 3,594 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 3,695 EMTNs (EUR 500 million)0.875%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3,718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 3,700 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 3,695 EMTNs (EUR 600 million)1.500%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2027<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,462 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 4,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,448 14,129 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 14,064 Bank loans (floating interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate)Loan facility T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cf"> </span> TLFREF <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> TRY <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 192 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 201 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 300 Bank loans and over<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>drafts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> Multi <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 162 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 40 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 340 Fair Recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Negative value, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> profit (DKKm)fair valuenetor lossMaturityFair value hedge<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2025In May 2022, ISS entered into an inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate swap in order to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>educe the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on our gross debt. A principal amount of EUR 300 million has been swapped from a fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate to a floating rate. The fair value adjustments recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss at 31 December is disclosed above. Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate sensitivity An increase in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates of 1%-point, with all other variables held constant, would have decreased net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit by DKK 26 million (2021: decreased b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 4 million). The increase in inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate sensitivity is a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult of the interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap entered into in May 2022.The estimate was based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s floating<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> rate loans and borr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owings, i.e. disr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>egarding cash and cash equivalents, as the level at 31 December is typically the highest in the year and thus not a repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentative for the purpose of this analysis. Loan portfoliovs. – fixed vs. floating inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates ng <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">est r</span><span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ates</span>202282% (98%) Fixed18%(2%) FloatingAccounting policyThe interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap qualifies as a fair value hedge as the risk being hedged is the possible change in the fair value of a recognised liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The carrying amount of the hedged item is adjusted for fair value changes attributable to the risk being hedged and changes are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss.4.7 Curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency riskCurrency risk – low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureCurrency risk is the risk that arises fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates, and affects<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s result, investments or value of financial instruments. <span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>The Group gener<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ally benefits from a natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>al hedge in having income, costs and invest<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ments in the same functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> country by country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Currency risk therefor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e predominantly arises fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om funding and investments in subsidiaries.Risk management policy • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">It is Group policy to pool funding activities </span>centrally and fund investments in subsidiar-ies through a combination of inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company loans and equity• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency risk on inter<span class="_ _0"/>company loans is as </span>a main policy hedged against DKK or EUR when exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeds DKK 5 million. Some currencies cannot be hedged within a reasonable price r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ange in which case cor-relation to a pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oxy curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency is considered and, if deemed appropriate, pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oxy hedging is applied• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency risk on net investments ar<span class="_ _0"/>e as a </span>main policy hedged against DKK or EUR when annual EBITDA of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant func-tional currency corr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponds to 5% or more of Group EBITD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A up to an amount of 3-5x EBITDA in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency and adjusted as appropriate to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant market entry and exit risk• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Exposure to EUR is monitor<span class="_ _0"/>ed but not </span>hedged due to the fixed r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change policy between DKK/EURMitigation • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Currency swaps ar<span class="_ _0"/>e used to hedge currency </span>risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external), intercompany balances and long-term receivables (e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Currency exposur<span class="_ _0"/>e on loans and borr<span class="_ _0"/>owings, </span>intercompany balances and cash and cash equivalents is measured at least on a weekly basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Currency swaps (net investment hedges) </span>or debt are used to hedge the curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e to investments in subsidiaries (other than EUR).4.7.1 Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings SensitivityCurrency Currency <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e swapsExposure, Increase <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> Profit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> (DKKm)(nominal)(contractual)netin <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>FX or loss2022EUR/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span> (17,212) 7,333 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> (9,879)1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> (99)USD/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 1,431 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> (1,575)(144)10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> (14)Other/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span> (1,176) 1,774 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span> 598 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> 60 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> (16,957) 7,532 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> (9,425)2021EUR/DKK(17,375)6,864(10,511)1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> (105)USD/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span>1,505(1,639)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10e"> </span>(134)10%(13)Other/DKK(1,173)1,365<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span>192<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span>19T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal(17,043)6,590(10,453)Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity (loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings) A change in rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant currencies, with all other variables held constant, would have impacted profit or loss with the amounts abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve. The analysis is based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s internal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> monitoring of currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, intercompany loans, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal long-term receivables, cash and cash equivalents as well as accrued ro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yalties (Group internal). 4.7.2 Net investment hedgesNet Hedging of Exposure,Average Change <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Fair (DKKm)investmentinvestmentnetpricein fair valuevalue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>Maturity2022GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,699 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,216 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 483 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4f"> </span> 53 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 24 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span>1,146<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 767 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span>379<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (57) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> 1,673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 755 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 918 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (39) 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span>4,518<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,738 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1,780<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d6"> </span> (43) 70 2021GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,492 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span> (100)(18)March 2022USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,093 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 722 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 371 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (60) 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2022CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> 1,847 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,129 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (31)(4)March 2022T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 4,432 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 2,725 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 1,707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> (191)(19)Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity (net investments) A 10% change in the mentioned currencies, with all other variables held constant, would have changed the fair value recognised in Other comprehensive income b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 48 million for GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/>, by DKK 38 million for USD and by DKK 92 million for CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on equity The effect of translation of net assets in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign subsidiaries before the effect of net investment hedges decreased equity b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 102 million (2021: an increase of DKK 297 million) primarily related to T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Switzerland and the UK.4.7.3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ranslation risk The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on transaction le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is low since income, costs and investments are in the same functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency country by country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on profit or loss In 2022, changes in weighted average e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rates r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulted in an increase in Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 689 million or 0.9% (2021: decrease of 0.6%) and a decrease of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s operating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items of DKK 16 million or 1.0% (2021: decrease of 1.2%).Change in 2021 to 2020 to avg. FX rates<span xmlns="http://www.w3.org/1999/xhtml" class="fc0">)</span>20222021GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d8"> </span> 0.8% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 3.2% CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 7.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (1.2)%USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"> </span> 12.6% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (3.8)%AUD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 3.9% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 4.8% NOK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 0.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 5.1% SEK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> (4.5)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3.1% TRY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> (40.8)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> (22.9)%EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 0.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (0.2)% ( ) = Weakened against DKK.Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity A 10% change (EUR: 1% change) in rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant currencies, with all other variables held constant, would have impacted re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items with the amounts belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit (DKKm)Revenuebefore other itemsGBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>984<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>40USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>625<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>31CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>573<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>42AUD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span>462<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>33NOK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 31 TRY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>319<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>24SEK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>298<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>16EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>240<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span> 9 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span> 1,264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d7"> </span> 60 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> 5,167 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 286 <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">curr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ency</span>Revenue b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency76.5DKKbn31% EUR13% GBP8% USD8% CHF6% AUD5% DKK4% NOK4% TRY4% SEK17% Other% of Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>2021FiefloNominal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Nominal Carrying Carrying in(DKKm)interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span>Currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>MaturityvalueamountamountIssued bonds (fixed inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate)EMTNs (EUR 300 million)2.125%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 2,231 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 2,229 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,226 EMTNs (EUR 500 million)1.250%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3,718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 3,594 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 3,695 EMTNs (EUR 500 million)0.875%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 3,718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 3,700 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 3,695 EMTNs (EUR 600 million)1.500%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2027<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 4,462 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 4,450 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 4,448 14,129 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 13,973 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 14,064 Bank loans (floating interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate)Loan facility T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1cf"> </span> TLFREF <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> TRY <span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 192 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 201 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> 300 Bank loans and over<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>drafts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> Multi <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 162 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 40 372 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 340 Fair Recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Negative value, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> profit (DKKm)fair valuenetor lossMaturityFair value hedge<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2025In May 2022, ISS entered into an inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate swap in order to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>educe the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on our gross debt. A principal amount of EUR 300 million has been swapped from a fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate to a floating rate. The fair value adjustments recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss at 31 December is disclosed above. Fair Recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Negative value, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> profit (DKKm)fair valuenetor lossMaturityFair value hedge<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2025In May 2022, ISS entered into an inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate swap in order to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>educe the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on our gross debt. A principal amount of EUR 300 million has been swapped from a fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate to a floating rate. The fair value adjustments recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss at 31 December is disclosed above. Fair Recognised<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> Negative value, <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> in<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> profit (DKKm)fair valuenetor lossMaturityFair value hedge<span xmlns="http://www.w3.org/1999/xhtml" class="_ _104"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> </span>Interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate swap<span xmlns="http://www.w3.org/1999/xhtml" class="_ _169"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> (108)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>2025In May 2022, ISS entered into an inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate swap in order to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>educe the fixed/floating r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>atio on our gross debt. A principal amount of EUR 300 million has been swapped from a fix<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate to a floating rate. The fair value adjustments recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss at 31 December is disclosed above.4.7.2 Net investment hedgesNet Hedging of Exposure,Average Change <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> Fair (DKKm)investmentinvestmentnetpricein fair valuevalue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>Maturity2022GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,699 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,216 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 483 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4f"> </span> 53 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 24 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span>1,146<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 767 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span>379<span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (57) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> 1,673 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 755 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 918 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (39) 19 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2023T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span>4,518<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,738 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1,780<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d6"> </span> (43) 70 2021GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,492 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 1,285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span> (100)(18)March 2022USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,093 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 722 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 371 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (60) 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>March 2022CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> 1,847 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 718 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 1,129 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> (31)(4)March 2022T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> 4,432 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 2,725 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _161"> </span> 1,707 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span> (191)(19)Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity (net investments) A 10% change in the mentioned currencies, with all other variables held constant, would have changed the fair value recognised in Other comprehensive income b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 48 million for GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/>, by DKK 38 million for USD and by DKK 92 million for CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on equity The effect of translation of net assets in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign subsidiaries before the effect of net investment hedges decreased equity b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 102 million (2021: an increase of DKK 297 million) primarily related to T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Switzerland and the UK. 4.6 Liquidity risk Liquidity risk – low e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposureLiquidity risk results fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s potential inability or difficulty in meeting the contractual obligations associated with its financial liabilities due to insufficient liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Risk management policy• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain an appropriate le<span class="_ _0"/>vel of short- </span>and long-term liquidity reserves (liquid funds and committed credit facilities)• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain a smooth maturity profile in </span>terms of different maturities• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Maintain access to diversified funding </span>sourcesMitigation• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Raising capital is managed centrally </span>in Group T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>reasury to ensure efficient liquidity management• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Group T<span class="_ _5"/>reasury monitors the risk of </span>insufficient liquidity on a daily basis• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Liquidity is transferr<span class="_ _0"/>ed to/from ISS </span>Global A/S, which operates as the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s internal bank• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">For day-to-day liquidity management </span>cash pools have been established in the majority of the local entities4.6.1 Contractual maturities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d2"> </span>Financial liabilitiesCarrying Contractual&lt; 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 1–2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 2–3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 3–4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> 4–5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> &gt; 5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (DKKm)amountcash flowsyearyearsyearsyearsyearsyears2022Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. lease <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,444 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>15,332<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>539<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>2,512 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _163"> </span>3,914<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>3,861<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>4,506<span xmlns="http://www.w3.org/1999/xhtml" class="_ _40"> </span> - Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 2,464 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,600 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 578 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 436 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 271 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 370 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade payables and other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 3,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal financial liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 20,654 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>21,678<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>5,050<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>3,090<span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span>4,350<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span>4,132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>4,686<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>3702021Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. lease <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b7"> </span> 14,443 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> 15,489 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 326 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 311 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,537 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d0"> </span> 3,930 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 3,879 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 4,506 Lease liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span> 2,539 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,658 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 786 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 561 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 418 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 289 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 197 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 407 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>rade payables and other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> - T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal financial liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 19,384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 20,549 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 3,514 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 872 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 2,955 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 4,219 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 4,076 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span> 4,913 The contractual maturities of financial liabilities, based on undiscounted contractual cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws, are sho<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wn in the table. The undiscounted contractual cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws include expected inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est payments, estimated based on market expecta-tions at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.The risk implied from the values r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflects the one-sided scenario of cash outflows only<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other financial liabilities are mainly used to finance assets such as trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment. Current financingThe maturity profile of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s current financing, i.e. issued bonds and bank loans, based on nominal values including any undrawn amounts and ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cluding interest payments, is illustrated in the chart to the right. Debt maturity profile(DKKbn)9.7<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">10,0</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">7,5</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">5,0</span>4.53.63.7<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">2,5</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">0,0</span>2027<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2026<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2025<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2024<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d3"/>2023Revolving Credit Facility (undr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>awn)EMTNs4.6.2 Liquidity reserve (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 5,214 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 3,428 Restricted cash <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span> (35)(31)Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7,276 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 7,312 Liquidity reserves<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span> 12,455 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 10,709 Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 1,078 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 1,061 Readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 11,377 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 9,648 Cash and cash equivalent<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> of DKK 5,214 </span>million reflects the str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong liquidity position of the Group. The le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is typically highest at 31 December and not a repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentative level for the rest of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Restricted cash<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> DKK 35 million of the total cash </span>and cash equivalents at 31 December 2022 was placed on blocked or restricted bank accounts due to legal cases and tax-related cir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cumstances. Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Gr<span class="_ _0"/>oup </span>has a EUR 1 billion re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facility maturing in November 2024. In addition to the unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level, local uncommitted credit facilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available in countries, which are not consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed part of the readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. At 31 December 2022, these amounted to DKK 0.9 billion of which DKK 0.2 billion was drawn (2021: DKK 1.1 billion of which all were unused).Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="_ _0"/><span class="ff4 fc3 ls14">Cash is considered r<span class="_ _0"/>eadily </span></span>available for upstreaming to the par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent company (ISS A/S) within five days. In a number of countries, transfer to ISS A/S is assessed to take mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e than five days due to local administrative pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocesses, and thus is not deemed readily available. 4.6.2 Liquidity reserve (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 5,214 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 3,428 Restricted cash <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span> (35)(31)Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7,276 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 7,312 Liquidity reserves<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span> 12,455 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 10,709 Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 1,078 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 1,061 Readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 11,377 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 9,648 Cash and cash equivalent<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> of DKK 5,214 </span>million reflects the str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong liquidity position of the Group. The le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is typically highest at 31 December and not a repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentative level for the rest of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Restricted cash<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> DKK 35 million of the total cash </span>and cash equivalents at 31 December 2022 was placed on blocked or restricted bank accounts due to legal cases and tax-related cir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cumstances. Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Gr<span class="_ _0"/>oup </span>has a EUR 1 billion re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facility maturing in November 2024. In addition to the unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level, local uncommitted credit facilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available in countries, which are not consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed part of the readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. At 31 December 2022, these amounted to DKK 0.9 billion of which DKK 0.2 billion was drawn (2021: DKK 1.1 billion of which all were unused).Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="_ _0"/><span class="ff4 fc3 ls14">Cash is considered r<span class="_ _0"/>eadily </span></span>available for upstreaming to the par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent company (ISS A/S) within five days. In a number of countries, transfer to ISS A/S is assessed to take mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e than five days due to local administrative pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocesses, and thus is not deemed readily available. 4.6.2 Liquidity reserve (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>2021Cash and cash equivalents<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 5,214 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 3,428 Restricted cash <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span> (35)(31)Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 7,276 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 7,312 Liquidity reserves<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c8"> </span> 12,455 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 10,709 Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> 1,078 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 1,061 Readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 11,377 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d2"> </span> 9,648 Cash and cash equivalent<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> of DKK 5,214 </span>million reflects the str<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ong liquidity position of the Group. The le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is typically highest at 31 December and not a repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esentative level for the rest of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Restricted cash<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls1"> DKK 35 million of the total cash </span>and cash equivalents at 31 December 2022 was placed on blocked or restricted bank accounts due to legal cases and tax-related cir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cumstances. Unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Gr<span class="_ _0"/>oup </span>has a EUR 1 billion re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facility maturing in November 2024. In addition to the unused re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>volving credit facilities at Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup level, local uncommitted credit facilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e available in countries, which are not consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed part of the readily available liquidity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. At 31 December 2022, these amounted to DKK 0.9 billion of which DKK 0.2 billion was drawn (2021: DKK 1.1 billion of which all were unused).Not readily available<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="_ _0"/><span class="ff4 fc3 ls14">Cash is considered r<span class="_ _0"/>eadily </span></span>available for upstreaming to the par<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent company (ISS A/S) within five days. In a number of countries, transfer to ISS A/S is assessed to take mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e than five days due to local administrative pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ocesses, and thus is not deemed readily available. 4.7.1 Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>wings SensitivityCurrency Currency <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> exposur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e swapsExposure, Increase <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> Profit <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> (DKKm)(nominal)(contractual)netin <span xmlns="http://www.w3.org/1999/xhtml" class="_ _bf"> </span>FX or loss2022EUR/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span> (17,212) 7,333 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10d"> </span> (9,879)1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> (99)USD/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 1,431 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> (1,575)(144)10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> (14)Other/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span> (1,176) 1,774 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span> 598 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> 60 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7c"> </span> (16,957) 7,532 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _129"> </span> (9,425)2021EUR/DKK(17,375)6,864(10,511)1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> (105)USD/DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span>1,505(1,639)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10e"> </span>(134)10%(13)Other/DKK(1,173)1,365<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a3"> </span>192<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>10%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span>19T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal(17,043)6,590(10,453)Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity (loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings) A change in rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant currencies, with all other variables held constant, would have impacted profit or loss with the amounts abo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ve. The analysis is based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s internal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> monitoring of currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, intercompany loans, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xternal long-term receivables, cash and cash equivalents as well as accrued ro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yalties (Group internal). Derivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised. Derivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised. Derivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised. Derivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised. Derivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised. Derivative financial intruments are initially recognised at fair value at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade date and sub<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>sequently remeasur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the reporting date. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. Fair value measurement takes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent market data into account. The Group uses valuation tech-niques that are appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>opriate in the circumstances and for which sufficient data are available to measure fair value. Measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement is categorised as Level 2 in the fair value hier<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>archy as it is not based on observable market data.Currency swaps ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e used to hedge the expo-sure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings (external) and inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>company balances. As changes in the fair value of both the hedged item and the currency swap ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss, hedge accounting is not applied. Currency swaps (net investment hedges) or debt is used to hedge the currency e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xposure to invest-ments in subsidiaries (other than for EUR). Net investment hedges<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Changes in the fair value </span>of the hedging instrument relating to the effective portion of the hedge are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income while fair value changes relating to the ineffective portion ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in financial income or financial expenses. On disposal of the foreign oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation, the cumulative fair value recognised in equity is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in the statement of profit or loss when the gain or loss on disposal is recognised.Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ency The consolidated financial statements are presented in Danish kr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oner (DKK), which is ISS A/S’s functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansactions in currencies other than the functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency of the respective Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies are consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed transactions denominated in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign currencies.On initial recognition, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept for companies operating in hyperinflationary envir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>onments, these are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated to the respective functional currencies of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date. Foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments arising between the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date and at the date of payment are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial income or Financial expenses. Receivables, payables and other monetary items denominated in foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>encies are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> translated at the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at the report<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing date. The difference between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date and at the date of transaction or the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate in the latest financial statements is recognised in Financial income or Financial expenses. On recognition in the consolidated financial statements of Group companies with a func-tional currency other than DKK, the statements of profit or loss and statements of cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the transaction date and the statements of financial position are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the reporting date. An aver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>age ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate for the month is used as the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date to the extent that this does not significantly deviate fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date. Foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments arising on translation of the opening balance of equity of foreign entities at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date and on translation of the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss statements from the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at the transaction date to the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date are recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income and presented in equity under a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate translation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if the foreign entity is a non-wholly owned subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the relevant proportion of the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslation difference is allocated to the non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est. Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of balances with foreign entities which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered part of the investment in the entity are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in equity under a separate tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslation reserve. 4.7.3 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ranslation risk The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s exposure to curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency risk on transaction le<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vel is low since income, costs and investments are in the same functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency country by country<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on profit or loss In 2022, changes in weighted average e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rates r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulted in an increase in Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue of DKK 689 million or 0.9% (2021: decrease of 0.6%) and a decrease of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s operating profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e other items of DKK 16 million or 1.0% (2021: decrease of 1.2%).Change in 2021 to 2020 to avg. FX rates<span xmlns="http://www.w3.org/1999/xhtml" class="fc0">)</span>20222021GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d8"> </span> 0.8% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 3.2% CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 7.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (1.2)%USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"> </span> 12.6% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (3.8)%AUD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16b"> </span> 3.9% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 4.8% NOK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span> 0.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 5.1% SEK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> (4.5)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 3.1% TRY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> (40.8)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> (22.9)%EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9"> </span> 0.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (0.2)% ( ) = Weakened against DKK.Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency sensitivity A 10% change (EUR: 1% change) in rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant currencies, with all other variables held constant, would have impacted re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>venue and operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items with the amounts belo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit (DKKm)Revenuebefore other itemsGBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>984<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>40USD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span>625<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>31CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>573<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>42AUD<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span>462<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>33NOK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 402 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span> 31 TRY<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>319<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a7"> </span>24SEK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>298<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7"> </span>16EUR<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b7"> </span>240<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span> 9 Other<span xmlns="http://www.w3.org/1999/xhtml" class="_ _189"> </span> 1,264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d7"> </span> 60 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> 5,167 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span> 286 <span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">curr</span><span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">ency</span>Revenue b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency76.5DKKbn31% EUR13% GBP8% USD8% CHF6% AUD5% DKK4% NOK4% TRY4% SEK17% Other% of Group r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue 5.1 Income taxIncome tax in profit or loss(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>2021Current tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11"> </span> 538 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 486 Deferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _131"> </span> (89) 46 Prior year adjustments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _118"> </span> (8)(23)Income tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span> 441 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>509Development in effective tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ateIn 2022, the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s effective tax rate decreased to 18.0% from 48.7% in 2021. Compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to the statutory income tax rate of 22% in Denmark, the effective tax rate was mainly r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>educed by the follo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing three factors; r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elease of valuation allowance on deferred tax assets, divestment gains (non-tax<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>able) and hyperinflation restatement in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.In 2021, the effective tax rate was negatively impacted by r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised valuation allowances on deferred tax assets, goodwill impairment in France (non-tax deductible) and other non-tax- deductible costs, mainly interest limitation.Effective tax rate (ETR) Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4c"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span>2021Statutory income tax rate, Denmark<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d9"> </span> 22.0 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span> 22.0 % Foreign tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate differential, net(0.3)% (14.4)% T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal 21.7 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 7.6 % Non-tax-deductible expenses less non-taxable income (2.1)% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>8.5 % Non-tax-deductible impairment(0.0)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span> 12.1 % Prior year adjustments, net(0.3)% (2.2)% Change in valuation of tax assets, net (2.2)% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _160"> </span>17.4 % Changes in tax rates<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span>0.4 % (0.7)% Hyperinflation(1.6)% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _94"> </span>0.0 % Other taxes <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15"> </span>2.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span> 6.0 % Effective tax rate18.0 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span>48.7 % Statutory <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> income Main countriestax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span>2021Australia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6"> </span>30.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>30.3 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>30.2 % 2)Denmark (incl. HQ)22.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>27.0 % (7.1)% Finland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _97"> </span>20.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>24.5 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>25.9 % 1) 2)France 25.0% (46.0)%(10.9)% 1) 2)Germany 30.3% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>40.4 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>0.0 % Norway<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>22.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>20.2 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>22.6 % Spain<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17f"> </span>25.0% (18.9)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>21.9 % Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span>18.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>18.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span>7.5 % UK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>19.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _66"> </span>17.1 % <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d9"> </span>122.7 % 3)US 21.0% (104.2)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span>21.4 % 1) Profit before tax was negative in 2022.2) Profit before tax was negative in 2021.3) Based on low profit befor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e tax in 2022. Foreign tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate differential, net <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">was negligible </span>in 2022, whereas 2021 was impacted b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y tax losses in countries with a higher corporate income tax rate than in Denmark, most significantly Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance and Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.Non-tax deductible expenses less not-tax-able income<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> comprised various income and </span>expenses acr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss the Group. In 2022, non-tax-able divestment gains in Hong Kong and the UK impacted positively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, partly offset by the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecurring negative impacts from Denmark due to inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est limitation and withholding taxes without cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit relief as well as the tax cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit CICE in France.Non-tax-deductible impairment <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">in 2021 related </span>to goodwill impairment in France.Prior year adjustments, net <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">related to adjust-</span>ment in the final tax returns and wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e insignif-icant in 2022. In 2021, the adjustment mainly related to the UK.Change in valuation of tax assets, net <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">in 2022 </span>related to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elease of valuation allowances on tax losses in Spain, the Netherlands and Germany partly offset by an incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in France. In 2021, the change mainly related to Germany and France.Changes in tax rates <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">in 2022 was driven b<span class="_ _0"/>y </span>changed income tax rates in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey from 23% to 20% (effective from 2023) and in the UK fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om 19% to 25% (effective from April 2023). In 2021, the change was mainly driven by a r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eduction of the corporate tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate in France fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om 33% to 25% over the period 2018-2022.Accounting policyIncome tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprises current tax and changes in </span></span>deferred tax, including effects fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in tax rate, and is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss or other comprehensive income.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax receivables and payables<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised in </span>the statement of financial position as tax comput-ed on taxable income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, adjusted for tax on taxable income prior years and tax paid on account.Hyperinflation <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">related to implementation of </span>IAS 29 “Financial Reporting in Hyperinflationary Economies”, cf. 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, including the positive impact from change in local tax rules leading to step-up in tax bases of assets due to hyperinflation.Other taxes <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">mainly comprised withholding tax, </span>e.g. in Denmark, and Cotisation sur la Valeur Ajoutée des Entreprises (CV<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>AE) in France. Income tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprises current tax and changes in </span></span>deferred tax, including effects fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in tax rate, and is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss or other comprehensive income.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax receivables and payables<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised in </span>the statement of financial position as tax comput-ed on taxable income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, adjusted for tax on taxable income prior years and tax paid on account.Accounting policyDeferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is pr<span class="_ _0"/>ovided using the liability </span>method on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences between tax bases of assets and liabilities and their carrying amounts. Deferred tax is not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences relating to goodwill which is not deductible for tax purposes and other items where tempor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ary differences, apart fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om in business combinations, arose at the time of acquisition without affecting either Net profit or taxable income. Where alternative taxation rules can be applied to determine the tax base, deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to manage-ment’s intended use of the asset or settlement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to the taxation rules and tax rates in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective countries applicable at the reporting date when the deferred tax becomes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent tax. Deferred tax assets, including the tax base of tax loss carryforwards, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets at the expected value of their utilisation, 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 and jurisdiction.Deferred tax assets and liabilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset if the Group has a legal right to offset these, intends to settle these on a net basis or to realise the assets and settle the liabilities, simultaneously<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Income tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprises current tax and changes in </span></span>deferred tax, including effects fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om changes in tax rate, and is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in profit or loss or other comprehensive income.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax receivables and payables<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> are r<span class="_ _0"/>ecognised in </span>the statement of financial position as tax comput-ed on taxable income for the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, adjusted for tax on taxable income prior years and tax paid on account. 5.2 Deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed taxDeferred Deferred tax assetstax liabilities(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span>2021T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax losses carried forward<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1da"> </span>482<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 336 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> - Goodwill<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1db"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 387 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 413 Brands<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1dc"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 350 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 350 Customer contracts<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1dd"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 150 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 141 Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _8"> </span> 220 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _195"> </span> 139 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span>425<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 381 Pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>visions and other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1de"> </span> 977 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 1,062 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _156"> </span>685<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 563 Pensions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1df"> </span> 126 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 158 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 62 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 22 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax losses in foreign subsidiaries under Danish joint taxation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> - <span class="_ _7d"> </span> - <span class="_ _5b"> </span> 23 <span class="_ _5b"> </span> 23 </span>Set-off within legal tax units and jurisdictions(904)(917)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>(904)(917)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e0"> </span>912<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> 790 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>1,178<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>976Development in deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed tax (DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span>2021Liabilities, net at 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _36"> </span> 186 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span> 204 Prior year adjustments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span> 32 (96)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6b"> </span> (22)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> (24)Hyperinflation restatement<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span> 62 - Acquisitions and divestments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 20 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a9"> </span> 72 Other comprehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 53 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _8e"> </span> 11 Reclassification to Assets/ (Liabilities) held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 24 </span> (27)T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax on profit before tax <span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span> (89)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span> 46 Liabilities, net at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>266<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span> 186 Prior year adjustments, net <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0">mainly related </span>to adjustment of tax deductions (temporary differences) in the final tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns.Acquisitions and divestments, net<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ls0"> in 2022 </span>related to the acquisition of Livit FM Services A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>G in Switzerland (2021: Rönesans Facility Manage-ment Company in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y).Other comprehensive income <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">comprised tax on </span>actuarial gains on pensions.Unrecognised deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ed tax assets At 31 December 2022, the Group had unr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ec-ognised deferred tax assets which comprised tax losses carried forward and other deductible temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences of DKK 1,814 million (2021: DKK 1,871 million) primarily relating to Germany<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, France and the Netherlands. Unrecognised tax losses can be carried forwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d indefinitely in the individual countries, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for China, where tax losses can be carried forwar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d for 5 years.Uncertain tax positions Uncertain tax positions include ongoing disputes with tax authorities in certain jurisdic-tions and have been pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided for in accordance with the accounting policies. Management believes that the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ovisions made ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e adequate. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the actual obligations may deviate as they depend on the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esult of litigations and set-tlements with the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant tax authorities. The final outcome of some of the ongoing disputes is expected to be determined in 2023-2024.Accounting policyDeferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is pr<span class="_ _0"/>ovided using the liability </span>method on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences between tax bases of assets and liabilities and their carrying amounts. Deferred tax is not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences relating to goodwill which is not deductible for tax purposes and other items where tempor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ary differences, apart fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om in business combinations, arose at the time of acquisition without affecting either Net profit or taxable income. Where alternative taxation rules can be applied to determine the tax base, deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to manage-ment’s intended use of the asset or settlement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to the taxation rules and tax rates in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective countries applicable at the reporting date when the deferred tax becomes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent tax. Deferred tax assets, including the tax base of tax loss carryforwards, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets at the expected value of their utilisation, 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 and jurisdiction.Deferred tax assets and liabilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset if the Group has a legal right to offset these, intends to settle these on a net basis or to realise the assets and settle the liabilities, simultaneously<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Significant accounting estimates and judgementsDeferred tax assets<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">r<span class="_ _0"/>elating to tax losses carried </span></span>forward ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised, when management assesses that these can be offset against positive taxable income in the foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e. The assessment is made at the reporting date taking into account the impact from limitation in inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est deductibility and local tax restrictions in utilisation of tax losses. The assessment of future taxable in-come is based on financial forecasts appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oved b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y management and expectations on the oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ational development, mainly in terms of organic gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>owth and operating margin.Management made a reassessment of the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>obabili<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-</span>ty that future taxable pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit will be available in the foreseeable futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e against which the Group can uti<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>lise tax losses (i.e for current year and those carried forward fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om prior years (valuation allowances). The assessment is based on the cash flow pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ojections made for the purpose of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s impairment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> tests, see 3.2, Impairment tests, and repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esents management’s best estimate, but is by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e asso<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ciated with significant uncertainty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Uncertain tax positions<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">As part of operating a </span></span>global business, disputes with tax authorities around the world may occur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Management peri-odically evaluates positions taken in tax r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns with respect to situations in which applicable tax regulation is subject to interpr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etation and consid-ers whether it is probable that a tax authority will accept an uncertain tax treatment. The possible outcome of uncertain tax positions are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed based on management’s best estimate of the amount requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to settle the obligation and rec-ognised in deferred tax or income tax depending on the tax position. Accounting policyDeferred tax<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> is pr<span class="_ _0"/>ovided using the liability </span>method on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences between tax bases of assets and liabilities and their carrying amounts. Deferred tax is not r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised on temporary differ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ences relating to goodwill which is not deductible for tax purposes and other items where tempor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ary differences, apart fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om in business combinations, arose at the time of acquisition without affecting either Net profit or taxable income. Where alternative taxation rules can be applied to determine the tax base, deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to manage-ment’s intended use of the asset or settlement of the liability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Deferred tax is measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed according to the taxation rules and tax rates in the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>espective countries applicable at the reporting date when the deferred tax becomes curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent tax. Deferred tax assets, including the tax base of tax loss carryforwards, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e recognised in non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent assets at the expected value of their utilisation, 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 and jurisdiction.Deferred tax assets and liabilities ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e offset if the Group has a legal right to offset these, intends to settle these on a net basis or to realise the assets and settle the liabilities, simultaneously<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. The value of services received in e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange for granted performance-based shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (PSUs) and restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (RSUs) are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the grant date and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in employee costs o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the vesting period with a corresponding incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, as both of the schemes are equity-settled. The fair value of granted PSUs under the long-term incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme is measured using a generally accepted valuation model taking into consideration the terms and conditions upon which the PSUs were gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anted including mar-ket-based vesting conditions (T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Shareholder Return (TSR) condition). On initial recognition, an estimate is made of the number of PSUs and RSUs expected to vest. The estimated number is subsequently re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vised for changes in the number of PSUs and RSUs expected to vest due to non-market based vesting conditions. 6.1 Management r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span>The Executive Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management (EGM) com<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>prises the Executive Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup Management Board (EGMB) and Corporate Senior Officers of the Group. Members of the EGM have authority and responsibility for planning, implementing and controlling the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s activities and are together with the Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors (Board) consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed as the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s key management personnel. 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _132"> </span>2021EGM<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>EGMCorporate Corporate <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1"/> Senior Senior (DKK '000)Board<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>EGMBOfficers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3b"> </span>Board<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>EGMBOfficersBase salary and non-monetary benefits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>8,587<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>15,269<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>49,073<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>8,724<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>21,842<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>39,172Bonus progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _19b"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>11,572<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>28,885<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span>12,007<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>18,739 1)Share-based payments-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>7,310<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span>14,381<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> - (3,794)11,695Sever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ance pay<span xmlns="http://www.w3.org/1999/xhtml" class="_ _7e"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _37"> </span>14,280<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span>-T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal remuneration<span xmlns="http://www.w3.org/1999/xhtml" class="_ _176"> </span>8,587<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>34,151<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span>92,339<span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span>8,724<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5e"> </span>44,335<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span>69,6061) In 2021, share-based payments to the EGMB included an income of DKK 8 million due to forfeited PSUs and RSUs under the incentive programmes as the CEO Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope left ISS.Remuneration policy is described in the Remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation report which is available <span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fc1 ws7">her<span class="_ _0"/>e<span class="ff4 fc3 ls0 ws0">.</span></span> 6.2 Shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>e-based paymentsT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o drive delivery of short- and long-term financial results, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etention of leaders and alignment to shareholder value cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eation, the Group has implemented two types of equity-settled share-based incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">a long-term incentive progr<span class="_ _0"/>amme (LTIP); and</span>• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">a special incentive progr<span class="_ _0"/>amme (SIP)</span>6.2.1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Long-term incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>amme Members of the EGM and other senior officers of the Group, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e granted a number of perfor-mance share units (PSUs) under the annual L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _31"/>. Upon vesting, each PSU entitles the holder to receive one shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e at no cost. Participants are compensated for any dividend distributed between time of grant and time of vesting. Subject to certain criteria, the PSUs will vest after three years. The vesting criteria ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e total share-holder return (TSR), measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed relative to peer group performance, and earnings per shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e (EPS). For LTIP 2021 and L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP 2022, TSR and EPS weighted 40%, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, and the remaining 20% related to service-based objectives. For L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP 2020 and LTIP 2019, TSR and EPS wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e equally weighted. TSR peers are the Nasdaq Copenha-gen OMX C25 and a peer group of compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>able international service companies. Accounting policyThe value of services received in e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange for granted performance-based shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (PSUs) and restricted shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e units (RSUs) are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at fair value at the grant date and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in employee costs o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver the vesting period with a corresponding incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, as both of the schemes are equity-settled. The fair value of granted PSUs under the long-term incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme is measured using a generally accepted valuation model taking into consideration the terms and conditions upon which the PSUs were gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anted including mar-ket-based vesting conditions (T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal Shareholder Return (TSR) condition). On initial recognition, an estimate is made of the number of PSUs and RSUs expected to vest. The estimated number is subsequently re<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vised for changes in the number of PSUs and RSUs expected to vest due to non-market based vesting conditions.TSR performance criteriaThreshold<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span>Vesting<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span>TSRBelow 0 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 ls3b">Below median <span class="ls0"> </span></span>thresholdof peersThreshold<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff3e">25 %<span class="_ _d0"> </span></span>At median of peersMaximum<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff3e">100 %<span class="_ _d0"> </span></span>At upper quartile of peers or betterFair value and profit or loss impact<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fs24">L<span class="_ _0"/>TIP 2019<span class="_ _173"> </span>LTIP 2020<span class="_ _76"> </span>LTIP 2021<span class="_ _173"> </span>LTIP 2022</span>PSUs and participants (number)Maximum PSUs at initial grant date<span xmlns="http://www.w3.org/1999/xhtml" class="_ _92"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 928,367 <span class="_ _162"> </span> 1,785,896 <span class="_ _173"> </span>1,349,527<span class="_ _76"> </span> 1,509,951 </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal PSUs granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _191"> </span>813,090<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,473,659 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 1,316,818<span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> 1,353,855 Participants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _109"> </span> 142 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>145<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 161 Fair value <span xmlns="http://www.w3.org/1999/xhtml" class="ff4">(DKKm)</span>PSUs expected to vest at initial gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ant date<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15b"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>94<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 98 PSUs expected to vest at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>53<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 75 Profit or loss impact <span xmlns="http://www.w3.org/1999/xhtml" class="ff4">(DKKm)</span>Recognised in the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f5"> </span> 1 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>22<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 25 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 24 Not yet recognised (PSUs expected to vest) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> 30 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 57 Assumptions at the time of grant 1)Share price, DKK 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>98<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span>111<span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 117 2)Expected volatility26.6%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>29.1%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>47.2%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>47.5%Expected life of grant, years <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1c6"> </span> 3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span>3<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 3 2)Risk-free inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rate(0.3)%-2.7% (0.4)%-1.9% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f"> </span>(0.6)%-0.9%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span>(0.1%)-1.5%1) Based on five-day average. 2) Based on observable market data for peer groups.Vested pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogrammes In March 2022, the <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">L<span class="_ _0"/>TIP 2019<span class="ff4 fc3"> progr<span class="_ _0"/>amme vested. </span></span>Based on the annual EPS and TSR performances for 2019, 2020 and 2021, 0% of the granted PSUs vested. After this vesting, no further PSUs are outstanding under the L<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>TIP 2019 and the Furthermore, in Mar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ch 2023, the PSUs granted under <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1 ws0">LTIP 2020 </span><span xmlns="http://www.w3.org/1999/xhtml" class="ws0">will vest with 32% based on the </span>annual EPS and TSR performances for 2020, 2021 and 2022. Outstanding PSUsEGMOtherCorporateSenior LTIP 2019 (vested in 2022)EGMBSenior OfficersOfficers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _58"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalOutstanding at 1 January 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 42,583 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> 83,015 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 560,451 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> 686,049 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ec"> </span> (35,686)(6,370)(23,034)(65,090)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span> 6,897 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 76,645 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> 537,417 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> 620,959T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span> -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span> 6,643 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> (6,643) - Forfeited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6c"> </span> (6,897)(83,288)(530,774)(620,959)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>-<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span>-LTIP 2020 (vesting in 2023)Outstanding at 1 January 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e4"> </span> 132,633 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 177,999 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> 1,129,354 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 1,439,986 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ec"> </span> (72,864) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> (104,144)(177,008)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> 59,769 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> 177,999 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 1,025,210 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b"> </span> 1,262,978 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (10,382) 10,382 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> -Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _114"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span> -(31,586)(31,586)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _111"> </span> 59,769<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6d"> </span> 167,617 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _74"> </span> 1,004,006 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _16d"> </span> 1,231,392 LTIP 2021 (vesting in 2024)Granted <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e6"> </span> 201,828 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 176,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 862,373 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 1,240,947 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ec"> </span> (53,531) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (89,652)(143,183)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 148,297 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 176,746 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 772,721 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,097,764 Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f9"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> 11,015 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3c"> </span> 64,856 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 75,871 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span> 9,107 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> (9,107) - Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _114"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9a"> </span> (8,583)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> (71,403)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> (79,986)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 148,297 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 188,285 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 757,067 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,093,649 LTIP 2022 (vesting in 2025)Granted <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e6"> </span> 139,713 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 265,208 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 948,934 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span> 1,353,855 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e5"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span> 8,710 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> (8,710) - Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _114"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> (18,233)(115,516)(133,749)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span> 139,713 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 255,685 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 824,708 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _164"> </span> 1,220,106 6.2.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18d"/>Special incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ammes The Group has curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ently one Special IncentiveProgr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme (SIP). Corporate Senior Officers (EMG members) and other senior officers of the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e granted a number of Restricted Shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Units (RSUs).Upon vesting, each RSU entitles the holder to receive one shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e at no cost.Subject to individual service criteria, the RSUs will vest after three years.Fair value and profit or loss impactSIP 2020-2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _162"> </span>SIP 2020-2023RSU and participants (number)Maximum RSUs at initial grant date<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e7"> </span> 64,159 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 246,767 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal RSUs granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e8"> </span> 55,263 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 238,489 Participants<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e9"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 37 Fair value (DKKm)RSUs expected to vest at initial gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ant date<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ea"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 24 RSUs expected to vest at 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1eb"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span> 23 Profit or loss impact (DKKm)Recognised in the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _149"> </span> 0 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ec"> </span> 8 Not yet recognised (RSUs expected to vest) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ec"> </span> 2 Assumptions at the time of grantShare price, DKK<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ed"> </span> 101 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span> 101 Expected life of grant, years <span xmlns="http://www.w3.org/1999/xhtml" class="_ _13e"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ee"> </span>3Vested pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogrammes In March 2022, the <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">SIP 2020-2022<span class="ff5"> </span></span>pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ogrammevested. Based on individual service criteria, 83% of the granted RSUs vested. After this vesting, no further RSUs are outstanding under the SIP 2020-2022 and the progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme has lapsed.Furthermore, in Mar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ch 2023, the RSUs granted under the <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1 ls1">SIP 2020-2023 </span>progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>amme will vest 100% subject to achievement of individual service criteria. Outstanding RSUsCorporateOtherSenior SeniorSIP 2020-2022 (vested in 2022)Officers (EGM)Officers<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f2"> </span>T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otalOutstanding at 1 January 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span> -<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span> 22,296 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 22,296 Granted <span xmlns="http://www.w3.org/1999/xhtml" class="_ _85"> </span> 26,619<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10"> </span> 1,783 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> 28,402 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> (6,513)(6,513)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span> 26,619<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span> 17,566<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9b"> </span> 44,185Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 4,565 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 4,565 Forfeited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _84"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> (2,696)(2,696)Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1eb"> </span> (26,619)(19,435)(46,054)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f3"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17"> </span> - SIP 2020-2023 (vesting in 2023)Outstanding at 1 January 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _10e"> </span> 204,223 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _33"> </span> 204,223 Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ef"> </span> 26,619 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 1,888 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7d"> </span> 28,507 Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span> (12,853)(12,853)Outstanding at 31 December 2021<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span> 26,619 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span> 193,258 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> 219,877 Granted<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f1"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c2"> </span> 5,759 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a8"> </span> 5,759 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed<span xmlns="http://www.w3.org/1999/xhtml" class="_ _133"> </span>10,432<span xmlns="http://www.w3.org/1999/xhtml" class="_ _172"> </span> (10,432) - Cancelled<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b6"> </span> (1,462)(1,462)Outstanding at 31 December 2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span> 37,051 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a6"> </span> 187,123 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> 224,174 7.1 Pensions and similar obligations7.1.1 Pension schemesDefined contribution plansThe majority of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s pension schemes are defined contribution plans where contributions are paid to publicly or privately administer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed pension plans. The Group has no further payment obligations once the contributions have been paid. In 2022, contributions amounted to DKK 1,223 million (2021: DKK 1,140 million), corresponding to 84% of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s pension costs (2021: 83%).Defined benefit plans The Group has a number of defined benefit plans where the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponsibility for the obligation towar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds the employees r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ests with the Group. The largest plans are in Switzerland and the UK accounting for 86% (2021: 86%) of the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s obligation (gross) and 97% (2021: 97%) of its plan assets. The plans are primarily based on years of service, and benefits are determined on the basis of salary and position. The Group assumes the risk associated with future de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velopments in salary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, interest r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates, inflation, mortality and disability<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, etc.The majority of the obligations are funded with assets placed in independent pension funds. In some countries, primarily Sweden, France, T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, Hong Kong and Mexico, the obligation is unfunded. For these unfunded plans, obligation amounted to DKK 633 million or 8% of the present value of the gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oss obligation (2021: DKK 788 million or 9%).Switzerland<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0"> Participants are insur<span class="_ _0"/>ed against the </span>financial consequences of retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement, disabil<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ity and death. The pension plans guarantee a minimum interest cr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>edit and fixed conversion rates at r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etirement and include a risk-sharing element between ISS and the plan participants. Contributions are paid b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y both the employee and the employer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. The plans must be fully funded. In case of underfunding, reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>very measures must be taken, such as additional financing from the employer or fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the employer and emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees, reduction of benefits or a combination of both. The UK <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Participants are insur<span class="_ _0"/>ed against the </span>financial consequences of retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement and death, and do not pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide any insured disability benefits. The pension plans guarantee a defined benefit pension at retir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement on a final salary basis. The majority of the plans does not include a risk-sharing element between ISS and the plan participants.Multiemployer pension plansThe Group participates in multiemplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer pension schemes that by natur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e are defined benefit plans in a few countries. Some funds ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not able to pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vide the necessary information in order for the Group to account for the schemes as defined benefit plans and these schemes are ther<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efore accounted for as defined contribution plans.<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">costs</span>Pension costs1.4DKKbn84%Defined contribution16% Defined benefitSignificant accounting estimatesActuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is determined on the basis of assumptions about the future de<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>velop<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment in variables such as salary levels, inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est rates, inflation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>and mortality<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Applied actuarial assumptions vary from country to country due to local conditions. All assumptions are assessed at the reporting date. Changes in these assumptions may significantly affect the liabilities and pension costs under defined benefit plans. The range and weighted average of these assumptions as well as sensitivities on key assumptions ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e disclosed in this note.The discount rates used for calculating the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value of expected futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e cash flows ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e based on the market yield of high-quality corporate bonds or government bonds with a maturity appr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oximating to the terms of the defined benefit obligations. When the Group participates in multi-emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yer pension plans being accounted for as defined con<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tribution plans due to unavailability of information, there is a risk that the plans ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e not sufficiently funded. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, information on surplus or deficit in the schemes is not available. 7.1.2 Defined benefit obligation2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f5"> </span>2021Present Fair value Present Fair value value of of plan Carrying value of of plan Carrying (DKKm)obligationassetsamountobligationassetsamountAt 1 January<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a4"> </span> 8,625 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 8,997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (372) 8,684 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 7,796 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 888 Current service costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span> 197 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span>197<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span>219<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span>219Interest on obligation/plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>72<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 55 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>17<span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span> 45 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 28 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _128"> </span>17Past service costs <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span>11<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _182"> </span>-Recognised in profit or loss <span xmlns="http://www.w3.org/1999/xhtml" class="_ _14c"> </span> 280 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 55 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 225 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 264 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 28 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 236 Actuarial (gain)/loss:<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4"> <span class="_ _19a"> </span> </span> Demographic assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (256) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (256) Financial assumptions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _198"> </span> (1,702) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (1,702)(209) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (209) Experience adjustments<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b5"> </span> 490 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 490 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 67 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _46"> </span> 67 Return on plan assets <span xmlns="http://www.w3.org/1999/xhtml" class="_ _96"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (997) 997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 747 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (747)Asset ceiling <span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (43) 43 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (1,080) 1,080 Recognised in other comprehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> (1,205)(1,040)(165)(398)(333)(65)Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> 214 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 295 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (81) 386 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 414 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (28)Acquisitions and divestments, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 227 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 219 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a2"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span> 0 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _67"> </span> (0)Employee contributions <span xmlns="http://www.w3.org/1999/xhtml" class="_ _165"> </span> 154 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 154 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 141 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - Employer contributions<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> 207 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (207) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 199 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> (199)Benefits paid<span xmlns="http://www.w3.org/1999/xhtml" class="_ _170"> </span> (342)(267)(75)(266)(174)(92)Asset ceiling <span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> 43 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> (43) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span> 1,080 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3a"> </span> (1,080)Reclass. to Liabilities held for sale<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _62"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (186)(154)(32)Other changes<span xmlns="http://www.w3.org/1999/xhtml" class="_ _186"> </span> 253 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 651 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (398)75<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span>1,506<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> (1,431)At 31 December<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17b"> </span> 7,953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span> 8,663 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _7b"> </span> (710) 8,625<span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span> 8,997 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _3d"> </span> (372)Recognised in the statement of financial position(DKKm)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f4"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5">2022<span class="_ _1a"> </span>2021</span>Carrying amount of defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="_ _130"> </span> (710)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span>(372)1)Accumulated impact from asset ceiling 1,352<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>1,2532)Defined benefit obligation, net 642 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> 881 Other long-term employee benefits<span xmlns="http://www.w3.org/1999/xhtml" class="_ _107"> </span>543<span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 470 Pensions and similar obligations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _121"> </span> 1,185 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _88"> </span>1,3511) Including a foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustment on the opening balance of DKK 56 million.2) Including an asset of DKK 247 million (2021: DKK 86 million) related to defined benefit plans in the UK. Developments in 2022 Actuarial calculations for 2022 have been ob-tained for all major plans. The actuarial calcula-tions led to recognition of actuarial gains due to increased discount r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates (financial assumptions) of DKK 1,702 million, mainly in Switzerland and the UK. This was largely offset by actuarial losses of DKK 490 million due to increased salary and inflation expectations (e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xperience adjustments) and loss on plan assets of DKK 997 million, both primarily related to Switzerland and the UK. The net impact on the pension obligation was a gain of DKK 165 million recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-hensive income.In 2021, we saw strong asset r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturns and an actuarial gain, which led to a significant increase in the surplus on the major plans in Switzerland. Due to surplus restrictions (ISS does not have access to the overfunding), an incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in the asset ceiling was recognised. In 2022, market conditions for listed shares and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eal estate de-teriorated r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulting in significant losses on plan assets in Switzerland and the UK. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, due to a larger decrease in the pension obligation the asset ceiling has further increased. As such, by the end of 2022, the accumulated impact from the asset ceiling was DKK 1,352 million (2021: DKK 1,253 million).Contributions in 2023The Group e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpects to contribute DKK 322 million in 2023 (2022: DKK 261 million).<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">categories of </span>Plan assetsan assets– major categories8.7DKKbn34% Listed shares19% Property 18% Corporate bonds6% Cash and cash equivalents 2% Government bonds21% Other% of total plan assets<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">obligation, </span>Pen<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">r</span>oss– funded vs. unfunded8.0DKKbn92%Funded8%Unfunded<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">obligation, </span>Pen<span xmlns="http://www.w3.org/1999/xhtml" class="fc5 sc0">r</span>oss– by country8.0DKKbn75%Switzerland11%UK14%Other7.1.3 Actuarial assumptions2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f6"> </span>2021Other Other CHF<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span>GBP<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span>EURcurrencies<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d1"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">CHF<span class="_ _78"> </span>GBP<span class="_ _35"> </span>EUR</span>currenciesDiscount rates<span xmlns="http://www.w3.org/1999/xhtml" class="_ _54"> </span>2.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>4.8 %<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls20"> 3.70-3.75% <span class="_ _90"> </span></span> 1.0-10.7% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>0.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span>2.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 0.35-1.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 0.2-19.3% Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>1.3%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span> 0.0-2.65% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span> 2.56-3.2% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c3"> </span> 0.0-12.0% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>1.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-2.65% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-3.5% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span> 0.0-15.0% Pension increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>0.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d9"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls5b ws8e"> 2.65-3.15% <span class="_ _19"> </span></span> 0.0-2.15% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span> 0.0-2.2% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d4"> </span>0.0%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _90"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls5b"> 2.65-3.20% <span class="_ _19"> </span></span> 0.0-0.64% <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> 0.0-2.0% Sensitivity analysis Below the sensitivities r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated to significant actuarial assumptions used in the calculation of the defined benefit obligation are illustr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ated in terms of estimated increase/(decr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease) in the obligation.The analysis is based on changes in assump-tions, with all other variables held constant, that the Group consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed to be reasonably possible at the reporting date.2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span>2021(DKKm)+0.5%(0.5)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d3"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls56 ws67">+0.5%</span>(0.5)%Discount rate<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (334) 363 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (490) 545 Price inflation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _71"> </span> 74 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (65) 165 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (51)Salary increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> 93 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _173"> </span> (74) 132 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _4b"> </span> (4)Pension increase<span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> 248 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (248) 302 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _52"> </span> (85)+1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-1 year<span class="_ _1d9"> </span></span>+1 year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9d"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-1 year</span>Life expectancy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 136 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (133) 212 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15d"> </span> (182)Duration The estimated weighted average dur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation of the defined benefit obligation was 9 years (2021: 12 years) and is split into:(Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ears)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>2021Active employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _199"> </span> 6 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 8 Retired emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span> 11 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 15  1)Deferred vested 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span> 6 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal employees<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> 12 1) The impact from deferred vested on total estimated weighted average duration is minor due to the fact that deferr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed vested make up less than 2% of the participants, and do not exist in many of the shorter duration plans.Accounting policyContributions to <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">defined contribution plans</span> are recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs when the related service is pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided. Any contributions outstanding are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other liabilities.Defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Group’<span class="_ _5"/>s net obligation </span>is calculated by a qualified actuary using the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o-jected unit credit method, separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately for each plan by estimating the amount of futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e benefits that employees have earned in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn for their service in the current and prior periods. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value less the fair value of any plan assets is recognised in Pensions and similar obligations. When the calculation results in a potential asset, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ec-ognition is limited to the present value of economic benefits available in the form of future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efunds from or reductions in futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e contributions to the plan. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o calculate the present value, consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is given to applicable minimum funding requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements. Pension costs are calculated based on actuarial es-timates and financial expectations at the beginning of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Service costs are recognised in Employee costs and net interest is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial expenses. Differences between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected development in pension assets and liabilities and the realised amounts at the reporting date ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e designated actuarial gains or losses and recognised in other comprehensive income. When the benefits are changed or a plan is curtailed, the resulting change in benefits that r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to past service or the gain or loss on curtailment is recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs. Gains and losses on settlement is recognised when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The aggregated value of unfunded plans is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-sented as a net liability and the aggregated value of funded plans are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as a net asset. Other long-term employee benefits <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">ar<span class="_ _0"/>e recognised </span>as defined pension plans, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept that actuarial gains and losses are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Employee costs. Other long-term employee benefits comprise jubilee benefits, long-service or sabbatical leave, etc. Accounting policyContributions to <span xmlns="http://www.w3.org/1999/xhtml" class="ff6 fc1">defined contribution plans</span> are recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs when the related service is pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided. Any contributions outstanding are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Other liabilities.Defined benefit plans<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> The Group’<span class="_ _5"/>s net obligation </span>is calculated by a qualified actuary using the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>o-jected unit credit method, separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ately for each plan by estimating the amount of futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e benefits that employees have earned in r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eturn for their service in the current and prior periods. The pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esent value less the fair value of any plan assets is recognised in Pensions and similar obligations. When the calculation results in a potential asset, r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ec-ognition is limited to the present value of economic benefits available in the form of future r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>efunds from or reductions in futur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e contributions to the plan. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>o calculate the present value, consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation is given to applicable minimum funding requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements. Pension costs are calculated based on actuarial es-timates and financial expectations at the beginning of the year<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Service costs are recognised in Employee costs and net interest is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial expenses. Differences between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected development in pension assets and liabilities and the realised amounts at the reporting date ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e designated actuarial gains or losses and recognised in other comprehensive income. When the benefits are changed or a plan is curtailed, the resulting change in benefits that r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elates to past service or the gain or loss on curtailment is recognised in Emplo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yee costs. Gains and losses on settlement is recognised when incurr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed. The aggregated value of unfunded plans is pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-sented as a net liability and the aggregated value of funded plans are pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented as a net asset. Other long-term employee benefits <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">ar<span class="_ _0"/>e recognised </span>as defined pension plans, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept that actuarial gains and losses are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Employee costs. Other long-term employee benefits comprise jubilee benefits, long-service or sabbatical leave, etc. 7.2 Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _db"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>yEffective 1 January 2022, the Group has implemented IAS 29 “Financial Reporting in Hyperinflationary Economies” for its subsidiary in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, as the cumulative three-year inflation rate in the country e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeded the thr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eshold of 100% in February<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.The aim of IAS 29 is to ensure that consolidated financial statements reflect the curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent purchasing power b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y:• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">restating reported numbers based on changes </span>in the general price inde<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x; and• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">applying end-of-period ex<span class="_ _0"/>change rates.</span>The translation method as well as r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition and measurement ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e described under accounting policies below<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.Impact on the consolidated financial statements The implementation of IAS 29 did not have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s profit or loss and cash flow statements and consequently the effect on our three KPIs was immaterial, i.e. organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth (non-IFRS), oper<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ating margin (non-IFRS) and free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w (non-IFRS). How-ever<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the restatement for inflation significantly impacted the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s statement of financial position, mainly by incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>easing the value of goodwill and customer contracts.Profit or loss The restatement of r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>evenue had a net positive impact of DKK 154 million of which DKK 580 million related to the incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ease in the price index of 21% in 2022. This was partly offset by the impact from r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etranslation to e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at 31 December of DKK 426 million.Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items was nega-tively impacted by DKK 29 million, as the inflationrestatement of right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, plant and equipment led to higher depreciation and amortisation of DKK 42 million. This more than offset the net positive impact from inflation restatement and r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etranslation.Financial expenses, net was positively impacted by DKK 148 million r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflecting the restatement of non-monetary items for the inflation develop<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment in 2022 and the offset of inflation restate<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ment of profit or loss items in the same period.Based on the above, and the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esulting negative impact on Income tax of DKK 42 million, Net profit incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased DKK 66 million for 2022.Cash flows The impact on consolidated statement of cash flows was insignificant.Inflation restatementYTDNon-Retrans- T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. monetary Profit<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>lation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> adjust-YTD<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>(DKKm)IAS 29)itemsor loss(YE FX)ments(reported)Profit or loss<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _7d"> </span> <span class="_ _16f"> </span> <span class="_ _a2"> </span> <span class="_ _11c"> </span> </span>Revenue<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f7"> </span> 76,384 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 580 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _d7"> </span> (426) 154 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 76,538 Depreciation and amortisation(1,475)(48) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 6 (42)(1,517)Other costs<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f5"> </span> (72,033) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span> (529) 388 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18e"> </span> (141)(72,174)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>2,876<span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> (48) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (32)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span>(29) 2,847 Other income and expenses, net<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d4"> </span> 58 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> (1) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> (1) 57 Amortisation of customer contracts(59)(12) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 2 (10)(69)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _3f"> </span> 2,875 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> (60) 50 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (30)(40) 2,835 Financial income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fd"> </span> 68 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 180 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (40)(1) 139 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 207 Financial expenses<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span> (605) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (18) 27 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 9 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (596)Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _aa"> </span> 2,338 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _e"> </span> 120 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (8)(4) 108 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,446 Income tax<span xmlns="http://www.w3.org/1999/xhtml" class="_ _192"> </span> (399)(43) 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _83"> </span> (7) (42)<span xmlns="http://www.w3.org/1999/xhtml" class="_ _4a"> </span> (441)Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om continuing operations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> 1,939 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (11) 66 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,005 Net profit fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om discontinued operations<span xmlns="http://www.w3.org/1999/xhtml" class="_ _75"> </span> 131 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 131 Net profit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _59"> </span> 2,070 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (11) 66 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 2,136 Cash flows<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5c"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _11c"> </span> <span class="_ _16f"> </span> <span class="_ _a2"> </span> <span class="_ _11c"> </span> </span>Operating pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit before other items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10e"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 2,889 <span class="_ _95"> </span> </span>(48) 51 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (32)(29) 2,860 Depreciation and amortisation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ac"> </span> 1,475 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _35"> </span> 48 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _32"> </span> (6) 42<span xmlns="http://www.w3.org/1999/xhtml" class="_ _55"> </span> 1,517 Non-cash items related to hyperinflation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _102"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (51) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _34"> </span> (51)(51)Other cash flow items<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span> (1,024) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span> 31 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 31 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _50"> </span> (993)Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om operating activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 3,340 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a"> </span> (7)(7) 3,333 Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om investing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span> (553) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 7 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> (546)Cash flow fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om financing activities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _6e"> </span> (928) - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span> (2)(2)(930)Free cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w (non-IFRS) 1,726 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _78"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _45"> </span> 8 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span> 1,734 Financial ratios<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e7"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _1cf"> </span> <span class="_ _1c7"> </span> </span>Organic gro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wth (non-IFRS)7.78%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff5 fs24 ls0 ws0"> - <span class="_ _18a"> </span> - <span class="_ _73"> </span> - <span class="_ _18a"> </span> - <span class="_ _181"> </span></span>7.78%Operating margin<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ffa8 fs47 ls56 ws67">3.77%</span>(0.07)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls56 ws67">0.07%</span>(0.05)%(0.05)%<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d0"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls56 ws67">3.72%</span>Inflation restatementYTDNon-Retrans- T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> (ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cl. monetary Profit<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>lation <span xmlns="http://www.w3.org/1999/xhtml" class="_ _c0"/> adjust-YTD<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> </span>(DKKm)IAS 29)itemsor loss(YE FX)ments(reported)Financial position<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f8"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="fc3"> <span class="_ _11c"> </span> <span class="_ _16f"> </span> <span class="_ _a2"> </span> <span class="_ _11c"> </span> </span>Goodwill <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 19,806 <span class="_ _25"> </span> 644 <span class="_ _18a"> </span> - <span class="_ _73"> </span> - <span class="_ _183"> </span> 644 <span class="_ _69"> </span> 20,450 </span>Other intangible assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a6"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 3,246 <span class="_ _25"> </span> 224 <span class="_ _18a"> </span> - <span class="_ _73"> </span> - <span class="_ _183"> </span> 224 <span class="_ _1a9"> </span> 3,470 </span>Right-of-use assets and Property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>,<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> <span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span> plant and <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equipment<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f9"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0"> 3,235 <span class="_ _35"> </span> 85 <span class="_ _18a"> </span> - <span class="_ _18a"> </span> - <span class="_ _43"> </span> 85 <span class="_ _1a9"> </span> 3,320 </span>Other assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b3"> </span> 19,765 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5f"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 19,765 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal assets<span xmlns="http://www.w3.org/1999/xhtml" class="_ _65"> </span> 46,052 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a8"> </span> 47,005 Other comprehensive income<span xmlns="http://www.w3.org/1999/xhtml" class="_ _80"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> </span>(56) 814 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 814 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 758 Other equity elements<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span> 9,980 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _5d"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span> 77 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 10,057 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _79"> </span> 9,924 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 891 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 891 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 10,815 Deferred tax liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16a"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0"> 1,116 <span class="_ _35"> </span> 62 <span class="_ _73"> </span> - <span class="_ _18a"> </span> - <span class="_ _43"> </span> 62 <span class="_ _1a9"> </span> 1,178 </span>Other liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span> 35,012 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a0"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _69"> </span> 35,012 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal equity and liabilities<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ba"> </span> 46,052 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _25"> </span> 953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _18a"> </span> - <span xmlns="http://www.w3.org/1999/xhtml" class="_ _183"> </span> 953 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _56"> </span> 47,005 Financial position The restatement for inflation incr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased goodwill by DKK 644 million and Other intangible assets (cus<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tomer contracts) b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 224 million mainly due to restatement of the fair values carried fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the acquisition of Rönesans in 2021 and the original acquisition when entering T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y in 2005.Right-of-use assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> equipment increased (DKK 85 million) based on assumed average useful lives of 3-5 years. As a result, depr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eciation and amortisation were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecalcu<span xmlns="http://www.w3.org/1999/xhtml" class="ls0 ws0">-</span>lated, which led to higher costs in profit or loss.Equity increased b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y DKK 891 million mainly as a result of the opening r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatement of non-mone<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>tary items of DKK 814 million and the restatement effect from changes in the price inde<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x in 2022.Accounting policyInflation restatement Non-monetary items<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">, which are carried at historical </span>cost, such as goodwill, customer contracts, right-of-use assets, property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment and de<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ferred tax, have been r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated for the effect of inflation based on changes in the price index for the period from initial r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition to 31 December 2022 or to the date of disposal, where r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elevant. The r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatement was made effective from the time, the items wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e initially recognised, which was no earlier than 2005, when ISS first entered T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey through an acquisition.The restating gain or loss r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to the change in the price index for the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period has been recognised in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss under financial income or expenses, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept for the tax effect, which has been recognised under income tax. The gain or loss r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to the prior periods has been recognised in other comprehensive income.Management has assessed whether the restatement of non-monetary items repr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esents an indication of impairment to ensure that the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated amounts do not ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceed the reco<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>verable amounts of the assets, see 3.2, Impairment tests.Monetary items <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">such as receivables, payables, loans </span>and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings are not subject to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estatement for the effects of inflation as these items already r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect the purchasing po<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wer at the reporting date.Equity<span xmlns="http://www.w3.org/1999/xhtml" class="ff5 ls0 ws0"> <span class="ff4 fc3 ls5f">includes the opening effect of restating </span></span>non-monetary items. Further<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the restatement effects of inflation based on changes in the price index for the reporting period have been r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income with set-off within financial income or expenses in pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss.Profit or loss <span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">tr<span class="_ _0"/>ansactions in the period have been </span>restated to r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eflect changes in the price index fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the time of transaction to the end of the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period, with the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ception of depreciation and amortisation. The latter have been recalculated based on the inflation-adjusted costs of intangible assets and right-of-use assets and property<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, plant and equipment. The<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/> recalculation has been based on the useful lives of the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant assets based on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s accounting policy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, cf. 2.6, Right-of-use assets and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>operty, plant and equipment.Cash flow statement<span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3"> Oper<span class="_ _0"/>ating profit befor<span class="_ _0"/>e other </span>items includes a non-cash effect from the inflation restatement, which has been eliminated in the line Non-cash items related to hyperinflation.Price index Restatement for hyperinflation of the financial state<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ments of the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish subsidiary was based on the development in the consumer price inde<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>x pro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vided by the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish Statistical Institute. For 2022, the inflation rate in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey was 64%.Retranslation fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om TRY to DKK The financial statements of the T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkish subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, including effects of inflation restatement, have been translated into DKK applying the TRY/DKK e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rate at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date as opposed to the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s normal practice of tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslating the profit or loss using the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date or an average e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate for the month. The TRY/DKK ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate decr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eased from 50.53 at the beginning of 2022 to 37.25 at 31 December 2022. The average TRY/DKK e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange for the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting period was 43.00. 7.3 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Related partiesParent and ultimate controlling party The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s parent ISS A/S is the ultimate con-trolling party<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. At 31 December 2022, ISS had no related parties with either contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol of the Group or significant influence in the Group. Key management personnel The Board of Dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectors (Board) and the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management (EGM) ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s key management personnel as defined in 6.1, Management remuner<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ation. Apart from r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emuneration, including shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e-based incentive progr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ammes, there wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e no significant transactions with members of the Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d and the EGM in 2022. 7.4 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Fees to auditors(DKKm)2022<span xmlns="http://www.w3.org/1999/xhtml" class="_ _95"> </span>2021Statutory audit<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span>73<span xmlns="http://www.w3.org/1999/xhtml" class="_ _86"> </span> 71 Other assurance services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _153"> </span>2<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 1 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax and VA<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>T advisory services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _42"> </span>7<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 6 Other services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>4<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17c"> </span> 9 T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>otal<span xmlns="http://www.w3.org/1999/xhtml" class="_ _fe"> </span>86<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span> 87 Other assurance services<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprised work </span></span>related to the interim financial statements and other assurance services.T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ax and V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>T advisory services<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">mainly related to </span></span>tax compliance services.Other services<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> <span class="ff4 fc3">comprised among other things </span></span>work related to acquisitions and divestments, such as financial and tax due diligence. 7.5 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Subsequent e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ventsOn 6 February 2023, two earthquakes caused large scale devastation and loss of thousands of lives in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y and Syria. ISS is one of the largest private employers in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey and appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximately 4,500 of our placemakers service workplaces for around 100 of our customers, including two hospitals, in the impacted areas of T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>agically<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, three of our placemakers wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e fatally injured, se<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>veral ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e in medical treatment and even mor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e suffered loss of immediate family members and housing. Our teams on the ground in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey have since the earthquakes focused on ensuring the safety and welfare of our people and customers who are facing unimaginable challenges and devastation.ISS has not suffered material damage to its assets in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. Furthermore, the impacted areas account for less than 1% of ISS’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s global activities and the vast majority of our customers’ operations continue or will continue after repairs. Consequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, it is management<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d"/>’s assessment that the earthquakes will not have a material impact on the results of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>s operations and financial position in 2023.Other than set out above or else<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>where in these consolidated financial statements, we are not aware of e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vents subsequent to 31 December 2022, which are e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xpected to have a material impact on the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s financial position. The 2022 Annual Report for ISS A/S was discussed and appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ved by the Ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecutive Group Management Board (the EGMB) and the Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d of Directors (the Boar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>d) on 23 February 2023 and issued for appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>val at the subsequent annual general meeting on 13 April 2023. Basis of prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ation The consolidated financial statements of the Group have been pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epared in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with IFRS as adopted by the EU and additional requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements of the Danish Financial Statements Act. In addition, the consolidated financial statements have been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in compliance with the IFRSs issued by the IASB. The consolidated financial statements have beenprepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed on the basis that the Group willcontinue to operate as a going concern.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s significant accounting policies and accounting policies related to IAS 1 minimum presentation items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e described in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes to the consolidated financial statements. A list of the notes is shown on p. 50.All amounts have been rounded to near<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est DKK million (DKKm), unless otherwise stated.Fair value measurement and disclosur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Items are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at historical cost, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for assets and liabilities held for sale, derivative financial instruments and contingent consider<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ation that have been measured at fair value.Assets and liabilities measured at fair value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e categorised within the fair value hierar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chy and disclosed in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes.For the purpose of fair value disclosures, management has assessed that the fair values of cash and cash equivalents, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, contingent consideration, tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other current and non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent financial assets and liabilities appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximates their carrying amount largely due to the short-term matur-ities of these instruments. The fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, including methods and assumptions used to estimate the fair value, are disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings.Reporting under the ESEF RegulationThe Group is r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>equired to file the Annual Re-port in the European Single Electr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>onic Format (ESEF) using a combination of the XHTML format and to tag the primary consolidated financial statements using iXBRL (Inline eXtensible Business Language).The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s iXBRL tags comply with the ESEF taxonomy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, which has been developed on the basis of IFRS taxonomy published b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y the IFRS Foundation. The line items in the consoli-dated financial statements are tagged to elements in the ESEF taxonomy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. For financial line items that are not dir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ectly defined in the ESEF taxonomy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, an extension to the taxono-my has been created.ISS has considered the accounting meaning of a taxonomy element when selecting the appropriate block tag for marking up such disclosure, particularly wher<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e multiple block tags match a disclosure. As a minimum, ISS has marked-up disclosures included in the consolidated financial statements (including headers) with the elements requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed (Annex II of the Regulatory T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>echnical Standard on ESEF). If disclosures or information corre-sponds to more than one element of differ-ent levels of details, ISS has used each of them and multi-tagged the disclosure to the extent that corr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esponds with the underlying accounting meaning of the disclosures. The Annual Report submitted to the Danish Financial Supervisory Authority (the Officially Appointed Mechanism) is included in the zip file ISS-2022-12-31-en.zip. Basis of prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ation The consolidated financial statements of the Group have been pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>epared in accor<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>dance with IFRS as adopted by the EU and additional requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ements of the Danish Financial Statements Act. In addition, the consolidated financial statements have been prepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed in compliance with the IFRSs issued by the IASB. The consolidated financial statements have beenprepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed on the basis that the Group willcontinue to operate as a going concern.The Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s significant accounting policies and accounting policies related to IAS 1 minimum presentation items ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e described in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes to the consolidated financial statements. A list of the notes is shown on p. 50.All amounts have been rounded to near<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est DKK million (DKKm), unless otherwise stated.Fair value measurement and disclosur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Items are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at historical cost, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for assets and liabilities held for sale, derivative financial instruments and contingent consider<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ation that have been measured at fair value.Assets and liabilities measured at fair value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e categorised within the fair value hierar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chy and disclosed in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes.For the purpose of fair value disclosures, management has assessed that the fair values of cash and cash equivalents, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, contingent consideration, tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other current and non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent financial assets and liabilities appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximates their carrying amount largely due to the short-term matur-ities of these instruments. The fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, including methods and assumptions used to estimate the fair value, are disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings. The consolidated financial statements have beenprepar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed on the basis that the Group willcontinue to operate as a going concern. Fair value measurement and disclosur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Items are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at historical cost, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for assets and liabilities held for sale, derivative financial instruments and contingent consider<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ation that have been measured at fair value.Assets and liabilities measured at fair value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e categorised within the fair value hierar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chy and disclosed in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes.For the purpose of fair value disclosures, management has assessed that the fair values of cash and cash equivalents, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, contingent consideration, tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other current and non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent financial assets and liabilities appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximates their carrying amount largely due to the short-term matur-ities of these instruments. The fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, including methods and assumptions used to estimate the fair value, are disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings. Fair value measurement and disclosur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Items are measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed at historical cost, ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>cept for assets and liabilities held for sale, derivative financial instruments and contingent consider<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ation that have been measured at fair value.Assets and liabilities measured at fair value ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e categorised within the fair value hierar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>chy and disclosed in the rele<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vant notes.For the purpose of fair value disclosures, management has assessed that the fair values of cash and cash equivalents, trade r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eceivables, contingent consideration, tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ade payables and other current and non-curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ent financial assets and liabilities appro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ximates their carrying amount largely due to the short-term matur-ities of these instruments. The fair value of loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings, including methods and assumptions used to estimate the fair value, are disclosed in 4.2, Loans and borro<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>wings. Basis of consolidation The consolidated financial statements comprise ISS A/S and entities controlled b<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y ISS A/S. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intra-gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup balances, income, expenses and cash flow r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elating to transactions between members of the Group ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e eliminated. Unre-alised losses are eliminated in the same way as unrealised gains, but only to the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xtent that there is no e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>vidence of impairment.The non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est’s shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e of net profit and equity of subsidiaries, which are not whol-ly-owned, ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e included in the Group<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>’s net pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit and equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, respectively<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, but disclosed separately<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. By virtue of agreement certain non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling shareholders ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e only eligible of receiving benefits from their non-contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>olling interest when ISS as controlling shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholder has received their initial investment and compound interest on such. In such instances the subsidiaries’ result and equity are fully allocated to ISS until the point in time where ISS has r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised amounts ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ceeding their investment including compound interest on such. A change in ownership inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est of a subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, without loss of control, is accounted for as an equity transaction. If the Group loses contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol over a subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, it derecognises the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>elated assets (including goodwill), liabilities, non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est and other components of equity<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, while any resultant gain or loss is recognised in Other income and expenses, net. Any investment r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>etained is recognised at fair value on initial r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognition. Foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ency The consolidated financial statements are presented in Danish kr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oner (DKK), which is ISS A/S’s functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansactions in currencies other than the functional curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ency of the respective Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies are consider<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ed transactions denominated in for<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eign currencies.On initial recognition, e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xcept for companies operating in hyperinflationary envir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>onments, these are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated to the respective functional currencies of the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companies at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date. Foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments arising between the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date and at the date of payment are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in Financial income or Financial expenses. Receivables, payables and other monetary items denominated in foreign curr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>encies are<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> translated at the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at the report<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>ing date. The difference between the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date and at the date of transaction or the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate in the latest financial statements is recognised in Financial income or Financial expenses. On recognition in the consolidated financial statements of Group companies with a func-tional currency other than DKK, the statements of profit or loss and statements of cash flo<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ws are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the transaction date and the statements of financial position are tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslated at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the reporting date. An aver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>age ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate for the month is used as the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date to the extent that this does not significantly deviate fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>om the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ansaction date. Foreign ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change adjustments arising on translation of the opening balance of equity of foreign entities at the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date and on translation of the pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ofit or loss statements from the e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ates at the transaction date to the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rates at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date are recognised in other compr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ehensive income and presented in equity under a separ<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ate translation r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eserve. Howe<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ver<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, if the foreign entity is a non-wholly owned subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, the relevant proportion of the tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslation difference is allocated to the non-controlling inter<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>est. Foreign e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xchange adjustments of balances with foreign entities which ar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e considered part of the investment in the entity are r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ecognised in other comprehensive income and pr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>esented in equity under a separate tr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>anslation reserve. 8.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Change in accounting policiesFrom 1 January 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has adopted the below standar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds and interpretations with no sig<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>nificant impact on recognition and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement: • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Amendments to IAS 37 Pro<span class="_ _0"/>visions, Contingent </span>Liabilities and Contingent Assets: Onerous Contracts – Costs of Fulfilling a Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act.• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Amendments to IFRS 3 Business Combinations </span>– Reference to the Conceptual Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ameworkIAS 29 Financial Reporting in Hyperinflation EconomiesEffective 1 January 2022, the Group implement-ed IAS 29, Financial Reporting in Hyperinfla-tionary Economies, as management considered T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y as a hyperinflationary environment. Management based its assessment on the cumulative three-year inflation, which e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeded the threshold of 100% in February 2022. As a result, the financial statements of ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey for 2022 were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated for hyperinflation before the reported amounts wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e translated to the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, DKK, applying the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date. Since the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, DKK, is a non-hyperinflationary currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, IAS 29 does not requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restatement of compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ative figures in the year of implementation. Consequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es have not been restated.The implementation impact and the applied accounting policies are disclosed in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 8.2 <span xmlns="http://www.w3.org/1999/xhtml" class="_ _166"/>Change in accounting policiesFrom 1 January 2022, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has adopted the below standar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ds and interpretations with no sig<span xmlns="http://www.w3.org/1999/xhtml" class="ls0">-</span>nificant impact on recognition and measur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ement: • <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3">Amendments to IAS 37 Pro<span class="_ _0"/>visions, Contingent </span>Liabilities and Contingent Assets: Onerous Contracts – Costs of Fulfilling a Contr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>act.• <span xmlns="http://www.w3.org/1999/xhtml" class="_ _30"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 fc3 ws0">Amendments to IFRS 3 Business Combinations </span>– Reference to the Conceptual Fr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ameworkIAS 29 Financial Reporting in Hyperinflation EconomiesEffective 1 January 2022, the Group implement-ed IAS 29, Financial Reporting in Hyperinfla-tionary Economies, as management considered T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y as a hyperinflationary environment. Management based its assessment on the cumulative three-year inflation, which e<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>xceeded the threshold of 100% in February 2022. As a result, the financial statements of ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>urkey for 2022 were r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>estated for hyperinflation before the reported amounts wer<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e translated to the Group'<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, DKK, applying the ex<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>change rate at the r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eporting date. Since the Group’<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>s functional currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, DKK, is a non-hyperinflationary currency<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>, IAS 29 does not requir<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e restatement of compar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ative figures in the year of implementation. Consequently<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>, comparative figur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>es have not been restated.The implementation impact and the applied accounting policies are disclosed in 7.2, Hyperinflation in T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urke<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>. 8.4 Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup companiesNorthern Europe Denmark (ISS A/S's country of domicile)ISS Facility Services A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>100%ISS Finance B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fa"> </span>100%ISS World Services A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c"> </span>100%ISS Global A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f8"> </span>100%ISS Global Management A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c7"> </span>100%ISS Holding France A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f0"> </span>100%ISS Lending A/S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _13"> </span>100%Belgium &amp; LuxembourgISS Catering N.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span>100%ISS Facility Services N.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>100%ISS Facility Services S.A. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _a5"> </span>100%FinlandISS Palvelut Holding Oy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>100%ISS Palvelut Oy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ae"> </span>100%Suomen Laatutakuu Palvelut Oy<span xmlns="http://www.w3.org/1999/xhtml" class="_ _99"> </span>100%NetherlandsISS Building Maintenance Services B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5b"> </span>100%ISS Catering Services B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _e0"> </span>100%ISS Holding Nederland B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _15f"> </span>100%ISS Integrated Facility Services B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _150"> </span>100%ISS Nederland B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d8"> </span>100%T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>alentgroep Montaigne Facility Management B.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.100%Norway<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>ISS Holding AS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ae"> </span>100%ISS Management AS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fb"> </span>100%ISS Facility Services AS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a"> </span>100%ISS Serveringspartner AS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fc"> </span>100%ISS Service Management AS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span>100%PolandISS Facility Services Sp. Z o.o.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _68"> </span>100%ISS World Services Poland Sp. Z.o.o<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a9"> </span>100%SwedenISS Facility Services Holding AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _10c"> </span>100%ISS Facility Services AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1e3"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ls0">100%</span>ISS Palvelut Holding AB<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>100%UK &amp; IrelandISS UK Holding Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11b"> </span>100%ISS UK Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fd"> </span>100%ISS Facility Services Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>100%ISS Mediclean Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span>100%Pegasus Security Holdings Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ab"> </span>100%ISS Ireland Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _fe"> </span>100%Central &amp; Southern Eur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ope Austria ISS Austria Holding GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>100%ISS Facility Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b4"> </span>100%ISS Ground Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f3"> </span>51%France<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>GIE ISS Services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _132"> </span>100%ISS Facility Management SAS <span xmlns="http://www.w3.org/1999/xhtml" class="_ _174"> </span>100%ISS Holding Paris SAS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1f9"> </span>100%ISS Logistique et Production SAS<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18"> </span>100%GermanyISS Automotive Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fe"> </span>100%ISS Facility Services Holding GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18f"> </span>100%ISS Integrated Facility Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _61"> </span>100%ISS Energy Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1a5"> </span>100%ISS Communication Services GmbH<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1be"> </span>100%ItalyISS Facility Services S.r<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.l. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ad"> </span>100%PortugalISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ech Portugal, Unipessoal Lda.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _af"> </span>100%SpainIntegrated Service Solutions, S.L. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>100%ISS Facility Services, S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a5"> </span>100%ISS Soluciones De Seguridad, S.L.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _98"> </span>100%UTE-HOSPIT<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>ALES S.A.S<span xmlns="http://www.w3.org/1999/xhtml" class="_ _20"> </span>65%1)SwitzerlandISS Facility Services AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _11f"> </span>100%ISS Schweiz AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _184"> </span>100%Livit FM Services AG<span xmlns="http://www.w3.org/1999/xhtml" class="_ _f"> </span>100%T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>urkeyISS Hazir Y<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>emek Üretim ve Hizmet A.Ş.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _73"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">50.1%</span>4)ISS Proser <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Koruma ve Güvenlik Hizmetleri <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A.Ş.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _93"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4 ls0 ws0">50.1%</span>4)ISS T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>esis Yönetim Hizmetleri A.Ş.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _c9"> </span><span xmlns="http://www.w3.org/1999/xhtml" class="ff4">50.1%</span>4)ISS İşletme Hizmetleri A.Ş (Rönesans)50.1%4)ISS Bitki <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Bakim ve <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>Hasere Kontr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ol Hizmetleeri <span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>A.Ş.50.1%4)Americas ChileApunto Servicios de Alimentacion S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>100%ISS Chile S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b1"> </span>100%ISS Facility Services S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>100%ISS Servicios de Limpieza Mecanizada S.A.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _49"> </span>100%ISS Servicios Generales Ltda.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span>100%ISS Servicios Integrales Ltda.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _44"> </span>100%MexicoISS Centro América, S. de R.L. de C.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>100%ISS Facility Services, S.A. de C.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>V.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a0"> </span>100%US &amp; CanadaISS Facility Services Holding, Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _12"> </span>100%ISS Management and Finance Co, Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d8"> </span>100%ISS Facility Services, Inc (US)100%Guckenheimer Enterprises Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>100%ISS C&amp;S Building Maintenance Corporation<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>100%ISS Facility Services California, Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>100%ISS Holding Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _187"> </span>100%ISS TMC Services, Inc<span xmlns="http://www.w3.org/1999/xhtml" class="_ _202"> </span>100%ISS Facility Services Inc. (CA)100%Asia &amp; PacificAustralia &amp; Ne<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>w ZealandISS Facility Management Pty Limited <span xmlns="http://www.w3.org/1999/xhtml" class="_ _11c"> </span>100%ISS Facility Services Australia Limited<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>100%ISS Facility Services Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d9"> </span>100%ISS Health Services Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _152"> </span>100%ISS Holdings Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b9"> </span>100%ISS Integrated Services Pty Ltd<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ee"> </span>100%ISS Property Services Pty Ltd<span xmlns="http://www.w3.org/1999/xhtml" class="_ _17d"> </span>100%ISS Security Pty Ltd<span xmlns="http://www.w3.org/1999/xhtml" class="_ _14"> </span>100%Pacific Invest December 2004 Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _105"> </span>100%Pacific Service Solutions Pty Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ec"> </span>100%ISS Facility Services Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _203"> </span>100%ISS Holdings NZ Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _202"> </span>100%ChinaISS Facility Services (Shanghai) Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _101"> </span>100%ISS Hongrun (Shanghai) Cleaning Services Limited100%ISS Property Management (Beijing) Co.,Ltd100%Shanghai B&amp;A Property Management Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _d5"> </span>100%Shanghai B&amp;A Security Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1aa"> </span>100%Shanghai ISS Catering Management Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _39"> </span>100%Hong KongHung Fat Cleaning T<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>ransportation Co., Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _181"> </span>100%ISS Adams Secuforce Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _ab"> </span>100%ISS China Holdings Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1ff"> </span>100%ISS China Holdings I Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d1"> </span>100%ISS EastPoint Properties Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span>100%ISS EastPoint Property Management Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _43"> </span>100%ISS Facility Services Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a4"> </span>100%ISS Greater China Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1b3"> </span>100%ISS Hygiene Services (HK) Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _200"> </span>100%ISS Mediclean (HK) Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _177"> </span>100%ISS Pan Asia Security Services Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _a1"> </span>100%JSL Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _201"> </span>100%Silvertech E&amp;M Engineering Co., Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _108"> </span>100%India2)Innovative and Payr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oll Advisory 46% Services Pvt. Ltd.ISS Facility Services India Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1d5"> </span>100%ISS SDB Security Services Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _124"> </span>46%2)2)Modern Protection &amp; Investigations Pvt. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _194"> </span>46%ISS Support Services Pvt. Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _200"> </span>100%IndonesiaPT ISS Facility Services<span xmlns="http://www.w3.org/1999/xhtml" class="_ _157"> </span>99%PT ISS Indonesia<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span>100%2)PT ISS Jasa Fasilitas<span xmlns="http://www.w3.org/1999/xhtml" class="_ _16e"> </span>0%SingaporeISS Asia Pacific Pte. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _190"> </span>100%ISS Catering Services Pte. Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _9f"> </span>100%ISS Facility Services Pte. Ltd. <span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span>100%ISS Hydrocultur<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>e Pte. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _1fc"> </span>100%ISS M&amp;E Pte. Ltd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _18b"> </span>100%Discontinued operations Brunei<span xmlns="http://www.w3.org/1999/xhtml" class="ff5"> </span>3)ISS Facility Services Sdn. Bhd.<span xmlns="http://www.w3.org/1999/xhtml" class="_ _b"> </span>50%1) Joint venture2) By virtue of the governance structure, the Gr<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>oup has the power to govern the financial and operating policies of the company<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>. Consequently, the company is consolidated as a subsidiary<span xmlns="http://www.w3.org/1999/xhtml" class="_ _5"/>.3) Divested on 9 February 2023.4) Under certain circumstances or events, ISS may be obliged to<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/> choose to purchase other shareholders’ shar<span xmlns="http://www.w3.org/1999/xhtml" class="_ _0"/>eholdings or dispose of its own shareholdings. ISS A/S Denmark A/S Denmark Buddingevej 197, DK-2860 Søborg Global Workplace and facility service solutions ISS A/S ISS A/S