Annual report

FY22
 Annual report FY22

Building better futures

2 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

How to create sustainable lives, growth,

and transformation 
At the end of the rainbow is… a sustainable
culture based on diversity in all its dimensions
and a focus on well-being. Strong values, purpose,
diversity, and social responsibility are what I believe
a firm like Deloitte should help foster - within our
firm, but also at our clients and in society. So, when
we say we want more diversity in senior roles, we
should try to affect the structural barriers that exist
in society – not just in our firm. When our surveys
show increasing pressure on the young generation,
we need to work with societal institutions as well
as our own leadership to bring mental health top
of mind and help create healthier study and work
environments for the next generation. And when I Anders Dons, CEO & Partner
look back at the year that has passed, we have taken
a great leap towards becoming just that.  whole new level of uncertainty that we had never
imagined on European soil. On top of that, we are
Are we there yet? Definitely not, but I am immensely facing significantly higher inflation and economic
proud of the courage shown within our firm to insist uncertainty, and we must fight to reverse the
on doing what is right even though it is not easy to urgent climate crisis - we cannot continue playing in
drive changes.  overtime. For the sake of the next generations and
their future, Deloitte is committed to addressing
This year has been another year of uncertainty. the climate crisis through our WorldClimate strategy
We made it through the pandemic and returned and making a difference for 100 million futures by
to work in a more flexible way. Then came the providing better learning opportunities through our
conflict between Russia and Ukraine, creating a WorldClass programme.  

It was also a year of celebration! We celebra-

ted Deloitte Denmark’s 110th anniversary and
held a huge party in the Royal Arena for all
our employees from Denmark and Greenland.
Celebrating our people and culture has never
been more important than now. 

Deloitte’s purpose is still to create an impact for

our clients, our people, and the society that we
are part of. We aspire to be #1 in every business
area we choose to play, and our Connect for
Impact strategy outlines how we will achieve
this goal. Our values are the guiding principles
that show us how to create results, be inclusive
and take care of each other - so we can foster
sustainable lives, growth, and transformation.
Our values should always serve as our moral
compass and guide us in making the right
decisions in difficult times.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 3
STATEMENTS FINANCING
 Annual report FY22 

Sustainable lives managers. So, we are moving in the right direction.

Our most valuable asset is our people. Without But we are not there yet. To create an equal playing
our people, there simply is no Deloitte. Therefore, it field, Deloitte introduced a new and improved parental
is worrying that the Danish society has seen alarming leave policy this year. By giving mothers, fathers,
- and rising - stress levels, especially among the and co-parents 24 weeks of paid leave, we want to
youth. Two years of on-and-off lockdown and isolation help promote the structural change needed for a
followed by the senseless war in Ukraine and the more equal distribution of parental leave – not just at
financial instability derived from it have meant that Deloitte – but also in society in general.  
some of our people have been under mental pressure
and some have experienced increased workloads. Diversity is not only about gender. Diversity also
Our internal well-being survey also shows increasing means coming from different backgrounds, and
stress levels, which we are very concerned about. we are proud to have 50 different nationalities at
Deloitte Denmark – meaning that 10 per cent of our
Our response to proactively mitigate the above has 3,200 people are foreign nationals. In the coming
been to focus on creating more flexible working years, we will increase our focus on other kinds of
conditions and improving well-being, thereby helping diversity – including age and neurodiversity. 
our people to live sustainable lives. That is why we
have increased the possibilities for flexible ways of
working through hybrid working models; we have
initiated a long-term well-being initiative around
healthy living and workplace well-being, focusing
on nutrition, sleep, exercise, walk-and-talks, virtual
meditation, and much more.  

The diversity agenda is still a must-win battle for us.

We have seen a 40 per cent and 30 per cent uptake
of women amongst our past two partner promotions,
and we are now at a total of 16 per cent female
partners and 35 per cent female directors and senior

Sustainable growth proud to have won a prize for the most innovative
We have experienced a year with a record- digital audit solution. And we continue to invest so
breaking 19 per cent growth at Deloitte Denmark we can continue to drive innovation for our clients
– resulting in a turnover of DKK 4.4 billion and the and industries as a whole. This year, we completed
hiring of more than 1,000 new colleagues. The growth the acquisition of an SAP practice – and announced
is evident across all of our five business units – Audit the acquisition of another one, which will be finalised
& Assurance, Consulting, Tax & Legal, Risk Advisory, in the beginning of FY23 – to strengthen our SAP
and Financial Advisory. From high-profile audits to capabilities and cement our position in the Danish
significant M&A deals, cyber risk management with and Nordic SAP market. We have also expanded our
large corporates, and an acceleration in climate Climate & Sustainability practice to double size to
services and digital transformation, our clients have cater for the enormous demand within this service
been pushing the megatrend agendas faced by area.  
our society. We are proud to see that many of our
offerings are market-leading - globally and locally
- according to various external sources, including
Gartner and IDC MarketSpace. This is exactly what we
are aiming for; to be the market leader by delivering
impactful solutions to our clients.

We continue to serve the public trust and build

integrity in the Danish business community with our
experienced and innovative audit business. We are

4 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Sustainable transformation and we have been on a roadshow across Denmark

Globally, Deloitte now has more than 415,000 to explore some of our small great cities and their
employees, a revenue of USD 59 billion, and is by far local strongholds. Through this, we have continued
the largest firm among the Big Four. We believe in to shape the public agenda and facilitate a debate
our business model and will continue our journey with PR stories and podcasts addressing our recent
towards a more integrated Nordic and global firm. findings. 
As we become more global, we are able to work
more borderless and seamless to better serve our
clients by utilising centres of excellence and our
global talent pool.

Society is transforming and adjusting to the new

realities of climate change, inflation, and post-
pandemic. With this agenda, we have been running
our Small Great Nation initiative with think tank
Kraka for five years now. Thus, in the past year, we
have launched our ninth report about the labour
market and the tenth report about the climate,

Looking into the future

We are living in times of uncertainty and concern In this year’s Impact Report - our annual report
- and in times of opportunity. I have always believed - we have gathered some of the great stories of impact
the glass is half full and that every crisis is an from the past year. I hope you will enjoy the read. 
opportunity for growth. What I am really excited
about in the coming months is how we will continue
to focus on how we can foster a sustainable
business with our people at the heart of what we Anders Dons
do. So, to best serve our clients, we must put our CEO & Partner
people first. Their well-being is a prerequisite for
our ability to deliver innovation, top-of-industry This report constitutes the statutory CSR report, cf. Sections
solutions to our clients, and transform society.   99a and 99b of the Danish Financial Statements Act.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 5
STATEMENTS FINANCING
 Annual report FY22

Our strategy

Connecting for impact in

unprecedented times

At Deloitte, our strategic ambition is to be the

market leader by being the most responsible,
trustworthy, and influential firm of our industry. To
achieve this, our Connect for Impact strategy has
guided us for the past couple of years and enabled
us to build the underlying culture that will empower
us to fulfil our ambition.  

This financial year - FY22 - has been a year beyond

comparison. Global events have had a significant
impact on the business environment and beyond.
With the scale, frequency, and volatile nature of these
events, it seems that unprecedented times have
become the new normal and uncertainty has come
to characterise the environment in which we operate.  Our strategy is based
on three pillars:
At Deloitte, we responded to the best of our ability,
guided by our strategy and core values. Our people
have demonstrated that trust, agility, teamwork,
1 Sustainable lives

and empathy are the best response in times of 2 Sustainable growth

crisis. This behaviour reflects our Shared Values,
which bind us together across Deloitte.   3 Sustainable transformation

The final chapter of an extraordinary Each pillar is essential to our success, and both
strategy period  prioritisation and execution will be key. The
During the coming year, we will accelerate what common denominator between all three pillars
we set out to do in our FY23 ambition and go all-in is sustainability. We will put greater emphasis
to Connect for Impact and pursue Undisputed on our people’s work-life balance, development,
Leadership. At Deloitte Denmark, we will continue and long-term career perspectives. We will also
to move our businesses and borders closer within continue to value and protect our long-term
our global Deloitte network. This move will allow us client relationships and commitments and take a
to serve our clients in an even more seamless and long-term view of our strategic choices.  
borderless way and bring our global expertise to
our local markets. 

6 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

1
Sustainable lives are fundamental to our strategy and core values. We learned
a lot during the pandemic, and it has further sharpened our strategic priorities
and focus on our greatest asset: our people. With new ways of working, well-being
initiatives, and personal and professional development, we will accelerate our
endeavours to become the best workplace for our current and future employees.
Many initiatives have already been implemented, such as equal terms for parental
leave and services to help improve physical and mental health and decrease
stress.  

Going forward, we will increase our focus on this important agenda. The end
of the lockdown and the reopening of society also meant that we could resume
internal training and courses. We will focus even more on creating development
opportunities for our people during the next financial year, including cooperation
with the Deloitte University EMEA, which will open in Paris in spring 2023 and
provide our talents with international training facilities. Learn more about our
leadership training programme and see the new Deloitte University here.

2
Sustainable growth addresses our approach to our clients. We strive to be
the preferred transformation partner of our clients by helping global and local
clients address the most important challenges they are facing – whether it is
within audit, digital transformation, sustainability, mergers and acquisitions,
cyber, or tax. By serving our clients as a comprehensive one-stop service
provider, we demonstrate the breadth and depth of Deloitte through our
portfolio of leading capabilities and industry expertise.  

Through our two integrated market programmes, Industries and Private, and five
business units, we have tailored our client approach to give our clients the best
experience possible. Going forward, we will continue to focus on developing our
clients’ businesses as well as our own to live our purpose: to create an impact
that matters. 

3
Sustainable transformation addresses our ability to integrate across our
businesses and borders and advance our digital backbone, both equally
important to ensure global connectivity between our Deloitte member firms.
Across the global Deloitte network, we will create digital platforms that will
help us serve our clients in a more seamless and agile way, ensuring the
best service experience for our clients. At the same time, we will continue
our journey to invest in state-of-the-art technology to strengthen our digital
infrastructure. Our internal transformation will be crucial in the time to come
in order to be the best transformation partner to our clients. 

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 7
STATEMENTS FINANCING
 Annual report FY22

Looking ahead
– continuing our path towards Undisputed Leadership

FY23 marks the final chapter of this strategy period. Our commitment and determination to
progress and create an impact that matters for our people, clients, and society will remain.
By investing in our future in line with our above-mentioned priorities, we will lay the path for
a more sustainable future for our firm. For many years, we have nurtured our cross-border
relationships, strengthened our trust in the market, and established a solid business on a
strong cultural foundation. We are proud of what we have achieved so far, and we have a clear
strategic path forward. A key strategic focus has been to combine our strong competencies
across our five business units to deliver holistic solutions to our clients within prioritised areas.
We will accelerate this further in the years ahead. During the next financial year, we will craft a
new strategy for the coming years, in which we will keep bringing our global Deloitte network
closer together to serve our clients seamlessly, deliver unique talent experiences, and make
joint investments to stay at the forefront of our industry. Through this, we aim to raise the
bar on our path towards being the most responsible, trustworthy, and influential firm. Towards
becoming undisputed leaders. 

Our business model and network Today, Deloitte NSE has over 65,000 people
The main activity of Deloitte Denmark is to working across 28 countries in Europe and the
deliver audit and advisory services in Denmark Middle East. These integrations are part of the
and Greenland. Our firm is organised into five global strategy to transition into fewer globally
business units that deliver services within audit aligned and integrated regions.
and assurance, consulting, financial advisory, risk
advisory, and tax and legal. Our business units Within Deloitte NSE, the 28 countries still operate
provide audit and advisory services to private as separate independent legal entities and provide
and public clients across industries and sectors. services in their respective jurisdictions following
Our main assets are our talented people and professional standards and our promise of creating
tried-and-tested business models and systems, an impact that matters. By joining forces, we can
and we deliver insights and transform our clients’ draw from an incredible diversity of skills, expertise
businesses while serving the public trust. A core and perspectives and provide global, consistent
element in how we serve our clients is our deep and seamless services to our clients. Our collective
sector and industry specialisation, allowing strength allows us to build centres of excellence,
us to serve our clients with indepth specialist share deep specialist knowledge and service our
competencies from across our global network. clients with local experts on a global scale. Our
Read more about our market programme here. ability to deliver the best competencies across
borders and disciplines are catalysed by our
The Deloitte network is a globally connected market programmes focusing on collaborating
network of member firms and their affiliates with clients and through partnerships with other
operating in 150 countries and territories. leading players.
These separate and independent member firms
operate under the same brand. Deloitte Stats- By cooperating closely within our global Deloitte
autoriseret Revisionspartnerselskab is part of network, we have been able to deliver international
the Deloitte network through Deloitte North projects at an unprecedented scale, which would
and South Europe (NSE). never have been possible without the strength of
our Deloitte NSE network.

8 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Our market programme

Making an impact with our

clients
Two client programmes
At Deloitte, our people are core to our suc-
cess; without them, we would not be able to deliver
– one goal
the highest quality to our clients. Over the past
years, we have worked dedicatedly to constantly The unique client experience we strive to
increase the value we bring to our clients through deliver at Deloitte is orchestrated through
deep industry expertise and committed teams – two client programmes with distinct
because we believe that the best way to help our responsibilities but shared goals: Industries
clients navigate the turmoil that has characterised and Private. 
the world over the past years is to build even closer
relationships.  In our Industry programme, we service
large corporates within the consumer
Our clients are transforming at a rapid pace rarely industry, public sector, energy, resources
seen before. Emerging challenges like cyber and industrials, financial services, life
security, supply-chain resilience and sustainable sciences and health care, and technology,
transformation set new demands for companies, media and telecommunications. 
organisations, and Deloitte as advisors and auditors. 
In our Private programme, we service the
Throughout the past year, we have focused on SME segment in Denmark, including fast-
enhancing our industry expertise across all sectors growing companies, private companies in
to ensure that our clients always receive the best the midmarket, family-owned businesses,
professional service competencies wrapped in deep and private financial investors. 
industry knowledge. In doing so, we have moved
even closer to our clients and built tighter long-term Through our two client programmes, we
relations – initiatives that are necessary in a rapidly work as one firm towards one goal: to be the
changing world. Having the right industry knowledge preferred and trusted advisor of our clients. 
allows us to tailor-make responses to emerging
challenges in collaboration with our clients. Nurturing
close relationships enhances our understanding of
their specific challenges and opportunities and fosters
collaborative partnerships. In combination, deep
Dive into our client stories of impact
industry knowledge and trusted partnerships enable
us to make an impact that truly matters to our clients.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 9
STATEMENTS FINANCING
 Annual report FY22

Business

10 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Audit & Assurance

We are leading the transformation of
our industry with people and business
sustainability at the core.
Henrik Wellejus, Head of Audit & Assurance

Last year we stated: “The world is changing, and Youthful insight and building trust in society
so are we,” and this year is no different. Our In January, we launched a Young Advisory Board
mission to create a workplace where ambitions to work with our leadership team on strategy and
and life balance naturally co-exist is still our business development. Their perspectives on how
number one priority. We have lengths to cross, to succeed with building a sustainable people model
but we are proud to be leading the industry in are insightful, necessary, and inspiring. The future
both heart and mind.   of Audit & Assurance belongs to our talents, and we
grow as we listen and learn from them. 
While making a revenue growth of 6 per cent
in Audit & Assurance in FY22, we continued our Looking back at FY22 and the aftermath of the
relentless focus on creating value for our clients, pandemic, we are proud of how we revitalised our
digitising our business, and sustaining market-leading role as guardians of trust in society. We helped
quality.  keep the wheels of society turning with free
counselling for businesses to manage bookkeeping
We have continued executing on our vision to in a challenging situation with little income, support
reimagine audit – and building a sustainable model from the Government and loans. We should never
for our people is essential to our success. At the underestimate the importance of audits to inform
beginning of the year, we discontinued engagements trust and transparency in society – even though we
with a significant number of clients in the scale of live in a country where the level of corruption and
100,000 working hours.   fraud is very low. 

We reduced working hours and freed up time across Our Assurance business is growing. Given that new
the entire business, and although we still have trends emerge, and society demands more and
more to do, we believe this initiative has created different services from audits, we have continued to
the foundation to create even more impact for develop our services to deliver on future demands
our clients. And although we have not reached a and create more value for our clients. Especially
sustainable balance yet, it was an important signal to within ESG, we expect our offerings to scale
change the work culture dominating our industry. significantly in the future as we will help companies
prepare for and report on sustainability measures. 

As for our brilliant team in Audit & Assurance, we

have grown in FY22 and expect to grow even further
Deloitte is Ranked #1 in FY23 to meet the demand. We continue to put our
talents first because we need the best and brightest
· Danish Digital Awards 2022 minds to deliver a client experience beyond the
expected. Luckily for us, the future talents in Audit
· Best place to work in the industry
& Assurance acknowledge that and once again have
(Universum)
placed us as the #1 place to work in the industry,
according to Universum. 

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 11
STATEMENTS FINANCING
 Annual report FY22

Consulting
Client impact is when our talents
connect the dots between strategy and
transformation
Martin Søegaard, Head of Deloitte Consulting

In FY22, Consulting was on a growth train offsite events after a tiresome period of lockdown
to impressive results. Not only did we and social distancing.  
onboard more than 350 new employees and
strengthened our capabilities as a team. We I see our recruitment success as a testament to our
also saw a remarkable growth in revenue, world-class employee value proposition. We take
largely fuelled by our strategically prioritised pride in developing the consultants and leaders of
clients.  tomorrow with all the skills demanded in the future.
Developing our talents is our number one priority,
Embedding strategy and sustainability in and we focus on developing each of our talents
digital transformation are becoming more individually within the strong and inclusive culture of
important than ever. A digital transformation that Deloitte. 
narrowly concerns the technology is no longer
enough, and our clients ask for transformational Our talents in Deloitte Consulting make a huge
growth.   difference thanks to their combined technological

It has been a dynamic year marked by two

acquisitions. Last summer, we onboarded and
integrated the team from Syncronic, strengthening
Deloitte’s skills in supply chain demand which – since Awards

the acquisition – has been top of the agenda with
most of our commercial clients. We recently added
further to our technological and transformational · Deloitte Consulting named #1 service
skills by acquiring Framework Digital in May.   provider worldwide by revenue according to
Gartner® Market Share report
The alliance with our vendors grew closer in FY22
and we now offer a wide and deep range of tech- · Deloitte named a leader in the 2022 Gartner®
enabled consulting services in close cooperation with Magic Quadrant for SAP S/4HANA Application
SAP, Salesforce, Service Now, AWS, Google, Kinaxis, Services worldwide
Workday, and others. Alliances are increasingly
important for us to deliver transformational impact · Deloitte named a leader in the 2022
to our clients.  Gartner® Magic Quadrant for Public Cloud IT
Transformation Services
Exceptional team on a growth sprint
As to the Consulting team, it is second to none. We · Deloitte named a leader in the 2022
have onboarded 353 employees on the team this Gartner® Magic Quadrant for Public Cloud IT
year, and we have made an effort to make all the new Transformation Services
talents feel welcome and socially integrated, e.g. with

12 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

and strategic capabilities. In this financial year, we have helped clients through massive transactions,
cemented our position as the preferred business but also tech-enabled and front-end integration-
transformation partner of our clients.   enabled consulting services have driven significant
growth. These areas are essential to our clients,
After the pandemic, hybrid working has become and we expect our services within these areas to
permanent when working with our clients as well grow even more in FY23.  
as internally on the team. The new way of working
The sustainability agenda has come to stay but is
has increased team flexibility and allows for a more
not separated from our core business or strategy.
efficient and seamless service for clients.  
Our clients expect us to embed sustainability in
everything we do, and our focus is to enable our
Results and expectations
clients to transform sustainably throughout their
In terms of financial performance, FY22 has been
business, whether it is within Strategy, Data &
nothing but outstanding, with a revenue growth
Analytics, Supply Chain, Finance or IT.  
of 29 per cent, which generally outperforms the
market. This positive development results from Consequently, we have a relentless focus on
prioritising strategically important clients more in sustainability enabling all our offerings to bring
terms of time and resources in alignment with our tangible value to our clients on this agenda. We
strategy.  will continue to invest in sustainable, techno-
logical, and transformational capabilities to stay
The largest growth driver this year has been the ahead of the demand and provide exceptional
M&A-enabled transformation services, in which we consultancy services to our clients. 

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 13
STATEMENTS FINANCING
 Annual report FY22

Financial Advisory
Experienced market leaders with a
dedicated industry focus

Sigurd Ersted Jensen, Head of Financial Advisory

A powerful and loyal team spirit is uniting and in this hot and fast-paced environment, we
our efforts in Financial Advisory, and there managed to win several important landmark deals
is no doubt that this – our caring high-five and projects.
culture – in conjunction with a strong
focus on industry expertise are the main It was a bold strategic choice when we decided
reasons behind our best financial results to specialise our capabilities and focus deeply on
ever. We are market leaders in mergers and specific industries. With a revenue growth of 31
acquisitions (M&A) and Forensic and continue per cent, we are proud to see that our efforts have
to specialise further in key industries and paid off. Industry specialisation combined with a
sectors.  broad offering of services and seamless continuity
towards the client place our services in a category
What a year to look back and reflect on! After of their own.  
the pandemic, we have grown even closer on the
team. On Deloitte’s Financial Advisory team, we Transactions at an all-time high 
take pride in taking care of each other and valuing In a boiling M&A market, we have succeeded in
our differences. The year has been one of high bringing our capabilities into play with a broad
market activity, and equally so in our business unit, variety of listed, privately owned, and private

14 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

equity companies. We are on top of the M&A league Team players

tables when it comes to both number and value of Our way of working has always been characterised
the transactions we advise on.  by an equal playing field and a flat organisational
hierarchy. We give our people the opportunity to
Forensic growth  influence their career pace, and we are dedicated to
In FY22, we successfully scaled up our financial making sure that the M&A business is attractive to
crime advisory business, resulting in us signing talents independent of gender, origin, educational
contracts with the largest clients in the Nordic background, etc. That is why our team is amongst
financial sector while at the same time maintaining the most diverse in the business, and this diversity of
our market-leading position within investigations, thought is of great value to our team and clients. On
fraud prevention, and disputes. our team, we are known to give high-fives and help
make each other stronger rather than competing
against each other - which is also part of the reason
why our employee churn is quite low. Moreover, when
recruiting a new team member, it is the current team
The pandemic strengthened members who make the decision rather than the
hiring manager.  
our flexibility and ability to work
remotely and succeed together Opportunities and challenges on the horizon 
We are fired up and ready for new challenges as the
despite physical separation. new financial year begins. The effects of the war in
Ukraine impact economies massively, and the rising
Succeeding with transactions in a energy prices, food shortage, and inflation will likely
virtual environment is a demanding affect the market we operate in.  

task for project leads as well as Our focus, however, will stay on further industry
specialisation, building of ESG (Environmental,
employees in relation to staying Social, and Governance) advisory targeted at
on target, communicating clearly, transaction services, and expansion of our Nordic
M&A cooperation. Over the next years, we will
and being able to handle sudden further develop our Preventive Financial Crime
advisory and strengthen our end-to-end M&A
changes.  advisory so that clients can get the full consultancy
package in the area. 

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 15
STATEMENTS FINANCING
 Annual report FY22

Risk Advisory
In an uncertain world, navigating
risks has moved into the core of
organisations
Mette Kaagaard, Head of Risk Advisory

A revenue growth of 22 per cent in Risk towards green investments. We therefore expect to see
Advisory is testimony to a market with a spill over effect on the pricing of investment activities
increasing demand. Society and businesses in the financial sector. 
are now facing more uncertainty due to the
war in Ukraine as well as financial and political The cyber agenda saw a massive growth during the
instability. The need for resilience is high, as pandemic with employees working from home in less
is the ambition to integrate sustainability cyber secure environments – a situation that escalated
practices in all levels and business processes.  further as the war in Ukraine broke out. Along with
physical warfare, the number of cyber attacks increased
FY22 was one of high complexity and posed a lot drastically and can be of a highly destructive nature.
of challenges to businesses. War in Europe, supply Navigating this type of risk has naturally become a
chain issues, financial insecurity, cyber attacks, lack of top management focus, as is creating resilience in the
talents, and rising demands to deliver sustainable trans- business structure to cope with such risk.  
formations are just some of the headlines in the last year.  
Results and talents in Risk Advisory
In Risk Advisory, we saw a surge in demand for Closing our books for FY22, it becomes clear that
services that help build business resilience. Business Risk Advisory has managed a smooth and gradual
leaders have come to realise that it is impossible to turnaround. Digital transformation continues to be at
fence off all risks. When leaders force themselves the core of our offerings, and all of our service lines
to embrace risk and work with scenarios to stay in have shown good results this year. We have improved
business in a situation where “all lights are out”, it has a our performance with a 22 per cent revenue growth.
transformational effect on the entire organisation. 
The growth means that we are welcoming more talents
Sustainability and cyber on our team, and leaving FY22, we have added 30 skilled
The remarkable development in FY22 was a general talents to accommodate the rising market demand. In a
tendency away from simply complying with regulation market with scarce resources, we welcome talents from
to a more proactive and strategic approach to sus- all parts of the world, giving us rich cultural diversity.
tainability. Organisations increasingly incorporate This is something we are particularly proud of, and
sustainability technology in their operations to obtain we are happy to see that our talents are recognised
a data-driven view on, for example, their carbon emis- internally as well as externally.
sions and to be able to navigate throughout the year
to reach the results communicated while helping our Team and talent well-being has grown significantly
clients with taking their customers’ risk profiles into throughout the year, and we see talents who have
account in a more consistent and transparent way previously left us returning to our team. A work culture
than ever before.  characterised by more flexibility and balance was
established during the pandemic, and I am sure this
EU legislation has put a massive focus on sustainability new foundation will help us attract and retain strong
in the financial sector that now needs to steer funds profiles in the future.

16 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Tax & Legal

Experienced market leaders
with a dedicated industry focus

Niels Josephsen, Head of Tax & Legal

After the pandemic, Tax & Legal has managed consumers, we expect to continue growing in
to overperform in an incredibly busy and the long run. We are currently shaping our global
dynamic financial year. In FY22, we delivered integration towards an even more integrated Nordic
our best results ever. Increased activity in business for closer cooperation on large deals,
mergers and acquisitions and new transfer especially within the transfer pricing area but also
pricing legislation are some of the main within technology.  
factors driving this growth. 
Technology also continues to play a more important
It has been quite a remarkable year for Tax & role in the tax field with increasing demand for
Legal. Our footprint among big corporates has applications, digital projects driven by SAP S/4HANA
become larger, and our consultants continue to implementations, and other technology-enabled
make an incredible impact locally and globally tax solutions. Adding to this, we anticipate new
for those clients with employees around the EU regulations within the area, forcing businesses
world. We see a heated market within areas like and authorities to get up to speed with the new
mergers and acquisitions, digital transformations – developments. In the time ahead, the challenge
including SAP S/4HANA – and sustainable business will be to attract the right expertise and talents
transformations. Consequently, we are proud to in a time when the competition for skilled,
report a 14 per cent revenue growth this year. specialised employees is intense all over the market.
Nevertheless, we believe that our business is
Internally, it has also been a year to remember. equipped to take on this recruitment challenge.
We have expanded our competencies across the
country and built a strong tax office in Aarhus,
and quadrupled the headcount in our tax office
in Odense in just five years. Our team has built
competencies in new, more specialised areas,
and we have succeeded in recruiting even senior
employees and partners at a time when many
experience recruitment difficulties. Moreover, the
Tax & Legal team has benefited greatly from the
lessons learned during the lockdown, leading to
a hybrid work culture with increased flexibility, in
which leaders and colleagues frequently check in
with each other – both online and offline. 

So, what does the future look like for Tax & Legal?
While there is likely to be an impact from the war
in Ukraine, rising inflation, and uncertainty among

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 17
STATEMENTS FINANCING
 Annual report FY22

Environmental

18 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Collective action is essential to combat climate

Our journey towards net-zero change. Therefore, our strategy focuses on three
pillars: the actions we take, the actions we inspire
our people to take, and the actions we take with
Mitigating the impacts of the climate crisis is others in our ecosystem. These efforts combined
a monumental task. But together, we can drive will enable us to accelerate the transition into a
positive change. And it is vital that we all do sustainable future.
so by taking urgent and immediate action. If
we fail to do so, these complex challenges will To get there, we are embedding sustainability
evolve into an even broader range of risks for into policies and practices throughout the
the environment, society, and businesses, organisation. And we are empowering our people
including our own. But progress is possible if to make climate-friendly decisions and influence
businesses and society act collectively. others to do the same. In doing so, we want to
reduce the risks of further harm to our planet and
Our environmental impact matters people and to reduce the risks to our business.
Being the biggest professional services firm in We want to continue working with clients and
the world, we know that the collective actions of talents who share our vision of a sustainable
Deloitte’s 415,000 people can have an impact. And future and who will also not accept inaction.
we must do our part to help the world achieve the
goals of the Paris Agreement. Therefore, Deloitte Deloitte’s near-term (2030) greenhouse gas
launched WorldClimate - our strategy to drive re- (GHG) reduction goals have been validated by
sponsible climate choices within our organisation the Science-Based Targets initiative (SBTi) as 1.5
and beyond - in FY20 to address the world’s urgent degrees Celsius-aligned, science-based targets.
climate crisis with achievable, measurable, and Deloitte has also committed itself to setting long-
science-based actions. This strategy is a develop- term emissions reduction targets using the SBTi’s
ment of our commitment to contributing to the Net-Zero Standard (2021).
achievement of the United Nations’ Sustainable
Development Goals.

WorldClimate
Our near-term goals are to: Carbon neutrality

Net-zero is our long-term objective. This

1 Reduce absolute Scope 1 and 2 GHG emis- objective will require us to reduce our emissions
sions 70% by 2030 from a 2019 base year as fast as we can, in line with the SBTI Corporate
Net-Zero Standard. While we decarbonise our
2 Reduce Scope 3 GHG emissions from business, we will maintain carbon neutrality by
business travel 50% per FTE by 2030 from sourcing 100 per cent renewable electricity
a 2019 base year where available and financing ICROA-approved
(The International Carbon Reduction and
3 Reduce waste production 50% per FTE by Offset Alliance) carbon-offsetting projects to
2030 from a 2019 base year compensate for our residual emissions.

4 Make our car fleet 100% electric by 2030 Our 2021 carbon-financing portfolio focused on
projects with strong social impacts that aligned
5 Engage with our major suppliers with the with our Purpose agenda. With net-zero in mind,
goal of having 67% (by emissions) set 20 per cent of these credits came from carbon
science-based targets by 2025 removal projects. Over time this proportion will
increase.
6 Invest in meaningful market solutions for
emissions we cannot eliminate.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 19
STATEMENTS FINANCING
ur market programme

Annual report FY22

“Taking action on climate change and

sustainability is not a choice. It’s an
imperative. And everyone has a role
to play. And the business community
is well-positioned to lead the way
- we have the resources, skills, and
influence to help build stronger and

Helping clients transition into a sustainable future

more sustainable communities.
While we fully acknowledge the importance And it’s our collective environmental
of our actions, the sustainable impact we can
generate through our client work exceeds that of and societal footprint that has the
our operations. That is why we continue to invest
significantly in our sustainability and climate offerings
potential to make or break this
across our business areas. At the end of this financial decade of action.”
year, Deloitte announced a significant expansion of
our global Sustainability & Climate practice, including Anders Dons, CEO & Partner
a USD 1 billion investment to improve our capabilities,
services and assets. clients in addressing their environmental impacts,
managing climate and human rights risks, integrating
One of our investments is in our global Deloitte sustainability goals into their business, measuring
Centre for Sustainable Progress (DCSP). In performance and impact, meeting new disclosure
collaboration with leading academic, policy, business, requirements, financing sustainable transformations
and governmental organisations, the DCSP network across their value chains, and much more. Learn more
will focus on holistic, results-oriented thought about our sustainability and climate services here.
leadership, data-driven analysis, and accountability
reporting to guide organisations through their Driving sustainable change from within
sustainability journeys. Deloitte’s global Responsible Business Practices out-
line our specific goals and commitments to reduce
In Denmark alone, we have doubled the number of emissions, preserve biodiversity, conserve resour-
sustainability and climate experts in our practice ces, and reduce waste within our operations. At
in the past year to cater for the enormous demand Deloitte Denmark, we promote and implement these
for assistance and solutions. We support our commitments through our local policies and initiatives.

20 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Business travel
As business travel accounts for a significant
part of our CO2 emissions, we have committed
ourselves to reducing our travel emissions by 50
per cent per full-time employee by 2030 compared
to FY19 levels, as described in our WorldClimate​
strategy. This means we cannot return to the same
travel habits as before the pandemic. However,
in many cases, travelling is a key enabler for our
work with clients and collaboration across member
firms. We have, therefore, been tracking our travel
habits closely in the past year to comply with our
newly implemented travel policy, encouraging
more sustainable behaviours such as travelling by
train instead of plane when possible and choosing
economy instead of business class, as well opting
for video and phone conferencing whenever
possible.

During FY22, we observed an increase in travel

activities compared to the previous year, which
was heavily affected by travel restrictions and
lockdowns. As countries and offices have reopened,
an increase in travel was expected, as both clients
and employees had an instinctive need to meet
physically after the pandemic. Despite the increase,
our travel emissions for the year are still below the
2030 target objective. However, we see an upward
trend in terms of the number of flight bookings and
CO2 emissions accordingly, which we will monitor
closely.

As such, we will continue to help our people make

smarter, more carbon-conscious travel choices
and leverage hybrid ways of working to maintain
the same high levels of service and quality. To
support this, we are planning an internal campaign
on how to deliver our services to clients in a more
sustainable way in FY23. Additionally, we are
transitioning towards the target of having a car fleet
that is 100 per cent electric by 2030.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 21
STATEMENTS FINANCING
 Annual report FY22

Educating our people

sustainability terms, environmental sustainability, the
An important pillar in our WorldClimate
EU Green Deal, the EU Taxonomy, circular economy,
strategy is to empower individuals. By engaging
and sustainable strategies, among many other
and educating our employees on climate change
themes
impacts – decisions about what they consume, use,
and buy – we want to enable our people to make
positive climate choices at home and at work. To do
so, we have rolled out the WorldClimate e-learning
programme ‘Rewrite our Future’ to all Deloitte
employees worldwide. The 45-minute course aims to
inform, challenge and inspire our people to create a
more sustainable world.

In FY22, we also held the first Sustainability Learning

Week across Deloitte North and South Europe (NSE).
The programme was designed to boost knowledge
and empower our people to use their existing
expertise to address sustainability challenges.
Throughout the week, employees could interact with
our experts and client executives to learn about basic

Educating our society

As part of our Small Great Nation social impact
initiative, we launched our second climate report
this year. The report – ‘Green cows, Russian gas
and CO2 - myths and realities’ – takes stock of the
current Danish climate strategy and investigates
how Denmark can reach its ambitious CO2 reduction
goals with a particular focus on the current energy
crisis and agriculture. By facilitating a fact-based
discussion through reports, events, podcasts, and
press activities, we educate and engage the public in
the debate about their future - read more about the
initiative here.

22 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Greening our operations

While we have taken some significant steps in
previous years, we continue to search for ways
to make our operations more environmentally
sustainable – from reducing food waste to
increasing biodiversity. Below we have gathered
some of the highlights from the past year.

Internal sustainability
initiatives FY22

• A s described, we have implemented a new consumption per kilo of food by 22 per cent from
travel policy that aims to reduce our travel last year by focusing on low-carbon food items.
emissions by 50 per cent per full-time employee
by 2030 compared to FY19 levels. • W
 e have expanded our company bike fleet to
reduce emissions from short-distance business
• G
 reen outdoor areas have been established at travel.
our office in Copenhagen to increase biodiversity
for the benefit of bees, insects, • In our quest to eliminate the last remains
and employees. of single-use plastics in our offices, we have
replaced items such as bags and dry-cleaning
• T
 o limit food waste from our canteen buffets, bags with recycled and reusable ones.
we have partnered up with Too Good To Go – an
app that enables employees to buy surplus food Going forward, we will continue to impose greater
directly from our canteen. In the first six months sustainability requirements on our suppliers to
since launching the app in January 2022, we have reduce the negative environmental, social, and
saved 668 meals from becoming waste and 1.67 economic impacts of our supply chain.
tons of CO2e.
We believe we are progressing towards our targets,
• In collaboration with our national canteen but we also know we can and must do more to
supplier Meyers, we have decreased our CO2 accelerate our efforts. And we will!

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 23
STATEMENTS FINANCING
 Annual report FY22

Our carbon footprint

We continuously work to include additional
data and improve the data quality to get a more
complete greenhouse gas inventory. As a result,
we have expanded the scope of reporting to include
purchased goods and services this year, which,
understandably, have increased our total emissions.

Our carbon measurements for FY22

• At Deloitte Denmark, we emitted a total of 10,561

tons of CO2 equivalent in FY22, equalling 3.91
tons of CO2 per employee.

• A significant part of our emissions derive from

purchased goods and services, which include
real estate-related services, contingent labour, IT
hardware, events, etc. As a result of the growing
number of employees and the reintroduction of
physical meetings and events among other things,
our emissions from have increased. However, we
are still below our pre-pandemic FY19 levels.

• While business travel traditionally accounted

for a larger part of our emissions, most of FY22
was affected by travel restrictions caused by the
pandemic. However, as restrictions lifted at the
end of the year, our business travel emissions
have increased significantly. Although we are
below our 2030-travel emission target, we are
seeing an upward trend, which we will monitor
closely to ensure that we live up to our travel
policy and, thereby, our WorldClimate goals.

• Deloitte North and South Europe (NSE), which

Deloitte Denmark is part of, has purchased
Energy Attribute Certificates for all electricity,
thereby making it our third year to source 100
per cent renewable electricity.

• Deloitte has purchased Certified Emission

Reductions at NSE level, thus offsetting our
carbon footprint and making our operations
and value chain carbon neutral.

24 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Carbon emissions

In our carbon emissions account, you can find an overview of Deloitte

Denmark’s carbon emissions divided into Scope 1, 2, and 3.

This greenhouse gas (GHG) emissions statement has been calculated using an operational
control consolidation approach as described in the GHG Protocol. The full methodology is
outlined in the Basis of Reporting. In summary:

• Scope 1 refers to direct emissions from gas usage and our owned vehicles powered by
internal combustion engines.

• Scope 2 refers to indirect emissions from the generation of our purchased electricity, district
heating, and owned electric vehicles.

• Scope 3 includes our emissions from business travel, and our purchased goods and services.

This disclosure relates to Deloitte Denmark. For a review of our North & South Europe
member firm, see the Deloitte NSE GHG Statement.

CARBON EMISSIONS FY20 FY21 FY22

Scope 1 tCO2 0 0 0

Scope 2 tCO2 723 754 824

Electricity Generation, Market-based tCO2 0 0 0

Electricity Generation, Location-based tCO2 711 683 458

District Heating tCO2 723 754 824

GROSS OPERATIONAL EMISSIONS tCO2 723 754 824

Scope 3 tCO2 9,217 6,055 8,347

Business Travel - Air (without RF forcing) tCO2 1,559 68 597

Business Travel - Air (with radiative forcing) tCO2 2,948 128 1,129

Business Travel - Other tCO2 825 451 658

Business Travel - Hotels tCO2 591 135 425

Purchased Goods and Services tCO2 6,242 5,402 6,667

GROSS TOTAL EMISSIONS tCO2 9,940 6,809 9,171

Certified Emission Reductions (Offsets) tCO2 3,697 6,809 9,171

NET TOTAL EMISSIONS tCO2 6,242 0 0

Emissions per FTE tCO2/FTE 3.90 2.74 3.39

Limited assurance was provided by BDO LLP at a consolidated Deloitte NSE level over all reported carbon metrics. This included
consideration of the underlying country data in Belgium, Denmark, Finland, Greece, Iceland, Ireland, Italy, Malta, Middle East,
Netherlands, Norway, Sweden, Switzerland and the UK plus Jersey, Guernsey, Isle of Man and Gibraltar.

Gross Total Emissions is a sum of market-based electricity data, district heating, business travel data without radiative forcing,
and purchased goods and services. Location-based electricity data and business travel data with radiative forcing are included
in the table to increase transparency of our reporting.

*Includes retrospective emissions from homeworking and commuting, which was added in FY22.

For the details of our methodology, please refer to these footnotes and Deloitte North & South Europe’s GHG Emissions Basis of
Reporting.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 25
STATEMENTS FINANCING
 Annual report FY22

Social

26 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

a positive aspect of life while minimising the

Helping our people live risk of stress and burnout as much as possible.
sustainable lives Our internal survey shows that, on average,
three out of four feel they have a good work-life
balance, while approximately one out of four
Globalisation, technology, the 24/7 feels stressed more than half of all workdays
marketplace, and COVID-19 have changed and some almost every day. We want to change
how we work. After two years of lockdown this and support our people in achieving a good
and isolation followed by the senseless work-life balance and reducing risks to their
war in Ukraine and an uncertain economic health and our business through the untimely
outlook, we find ourselves facing a new loss of talented people. Therefore, we have
reality. increased our focus on cultivating a sustainable
workplace where each and every one of us can
We strive to create a sustainable working thrive. Our talented people remain our most
environment for everyone and give our people important asset. Without our people, there is
the best conditions to make work and ambitions no Deloitte. 

Introducing a new, family-friendly parental

leave policy 
Becoming a parent changes your life. However, in
general, parenthood affects men and women in the
workforce differently. In Denmark, women take 90 per
cent of the parental leave. This uneven distribution
of parental leave is a key reason for the continued
inequality between women and men in the Danish
labour market.

To contribute towards attaining a more equal playing

field, we have introduced a new and improved Better parental leave conditions and policies are
parental leave policy this year. By giving mothers, part of Deloitte’s Happy Parents programme,
fathers, and co-parents 24 weeks of paid leave, we which has been running for four years. The Happy
want to help promote the structural change needed Parents programme also ensures that our talents
for a more equal distribution of parental leave – not are prepared for their parental leave and, after
just at Deloitte – but also in society in general. And we becoming parents, continue to thrive in their jobs
are happy to see that many other organisations have upon returning to Deloitte. For instance, we have
also decided to introduce equal parental leave terms. introduced flexible return days to ease the transition.

In the top five

Our people are core to Deloitte, and we want to
continue attracting and retaining top talents. Thus,
we are proud that students persistently perceive
Deloitte as one of Denmark’s best places to work.
Once again, in 2022, we were in the top five of the
most attractive workplaces for business students
according to the annual Universum ranking.

The ranking places us at the very top of the audit

industry, and is testimony to the fact that we
continue to offer a workplace with a worthwhile for life. However, although we are proud of our
purpose, excellent career opportunities, lifelong results, we know the journey is ongoing, pledging to
learning, caring colleagues, and a strong community continue to do more every day.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 27
STATEMENTS FINANCING
 Annual report FY22

Increasing focus on well-being health guide that focuses on breathing, hydration,

Every day, we live our purpose of ‘making an sleep, exercise, mindfulness, and nutrition. We
impact that matters’. The well-being of all emplo- have also held online meditation sessions three
yees is indeed a cornerstone of our purpose. It is times a week, encouraged walk-and-talk meetings
especially relevant as we have grown from a total - which were kicked off with free beverages to
of 2,802 employees last year to 3,186 at the end of bring along on your walk, and we have hosted
this financial year. This entails a lot of onboarding physical training sessions including running, circuit
and changes for our employees. training, and brisk walks. And we continued to raise
awareness about identifying and addressing the
The past year, we have increased our focus on early signs of stress and burnout.
employee well-being and taken initiatives to improve
work-life balance. These include the well-being We have also launched Deloitte's Code of
project and its recurring emphasis on healthy living, Distributed Work to support our people in
including guidance about exercise, a healthy diet, maintaining a flexible working life wherever and
and getting enough rest. We have been inspired by whenever possible. The Code includes having the
health experts, served energy-boosting and anti- flexibility to work from home or more formalised
inflammatory foods, and offered the well-being app, flexibility such as working part-time hours.
AIO, for free to all employees. AIO is a science-based

28 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Striving for gender diversity in leadership procedure that helps leaders determine if they have
positions the right talents on the right development tracks
Representation matters. And we have a long- and programmes or if they have overlooked skilled
standing focus on gender balance in leadership candidates. In addition, we have updated our Happy
positions. Although we have progressed and Parents programme with several initiatives, including
increasingly do so, gender representation in middle five flexible days off to ease the return from parental
and top-level management has been and continues leave, updated the content and form of training
to be unsatisfactory. We have devoted significant offered to leaders with talents going on leave, and
resources to a wide range of efforts as we are working reduced targets for our parents returning from leave.
relentlessly on increasing the share of women in all As mentioned above, our newly introduced parental
positions, while focusing particularly on levels from leave gives all parents equal leave terms and includes
managers to partners. These measures include firm initiatives to ease the transition from parental leave
criteria for our talent pipeline to ensure that the back to work to create a workplace that embraces
gender distribution continues to reflect the talent work-life balance, even for parents.
pool as talents move up the ladder - in general as
well as in our talent programmes for high-performing Amongst the elected board members, our target is
talents. Furthermore, we have instituted clear to have at least 25 per cent female or male board
gender diversity targets for commercial roles in our members. With only 20 per cent women, there is still
market programmes and, based on learning from room for significant improvement. However, our two
our pilot year, we have expanded our female sponsor employee-elected board members are also women.
programme to ensure the continued development of The Board is also diverse in terms of professional
our female talents. backgrounds, geography, and international
experience to ensure we reflect a global view. As
Besides training our leaders in how to become aware determined by the Danish Act on Approved Auditors
of their unconscious biases, e.g. in leading, hiring, and Audit Firms, most board members are state-
and promoting employees, we have introduced a authorised public accountants.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 29
STATEMENTS FINANCING
 Annual report FY22

Delivering through diversity and by fostering

inclusion
At Deloitte, we encourage and value diversity in
all its shapes and sizes. Today, we have 50 different
nationalities working at Deloitte Denmark. We deeply
value this diversity and recruit accordingly. We believe
that a welcoming and inclusive culture is integral
to people doing their best. Inclusion and diversity
empower business innovation, and we believe
diverse groups deliver stronger and more innovative
solutions to our clients. Furthermore, we need
diverse perspectives, backgrounds, and experiences
to reflect the society we are part of.

Therefore, we strive for an inclusive and diverse We take pride in a workplace where everybody can
organisation and aim to achieve this by nurturing, feel safe, thrive, and grow. Our recently updated
appreciating, and strengthening the diversity of anti-harassment policy reflects this and is sent to all
gender, background, education, culture, age, and new employees as part of our employee handbook.
thought. We want all talents to feel welcome, valued, Our approach reflects our commitment to create
respected, and included in our professional and a workplace free of harassment, sexism, and
social communities across Deloitte. We are working discrimination, where each person is treated with
to achieve a more balanced composition of people courtesy, dignity, and respect, and where there is an
with different ethnic and educational backgrounds, equal opportunity for all to succeed. The message is
as well as cultural, LGBTQ+, and religious unambiguous. Any form of sexual, gender-based, or
backgrounds. psychological harassment is unacceptable.

Aiming for more diversity than a third of all employees have an international
As mentioned above, we have more than 50 background, representing 30 different nationalities.
different nationalities at Deloitte Denmark today.
This number means that one out of ten employees During the year, we celebrated Deloitte’s first Diversity
are international. In Risk Advisory alone, more & Inclusion week. Over that week, we participated
in various national events and debates and spon-
sored KVINFO’s yearly International Women’s Day
celebration. We also had two internal events - one
focusing on gender identities in the workplace hosted
by GLOBE, our internal LGBT+ community, and
another on the benefits and challenges of working
in diverse teams. On a more practical level, we have
made it possible for employees to include pronouns
in their e-mail signatures. Also, we have converted all
our toilets into gender-neutral toilets to create a more
inclusive environment for our colleagues who identify
as non-binary or transgender.

In addition, we teamed up with the Danish NGO

Professional Women of Colour (ProWoc) that works to
increase the visibility and impact of women of colour
in Denmark. As part of this collaboration, ProWoc has
helped Deloitte build an internal diversity network
Meet three of our ambitious colleagues who are fighting for and supported us with other initiatives to advance our
gender diversity and inclusion in “I’ll be your damn quota”. respect and inclusion agenda.

30 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

When the annual Copenhagen Pride Festival took to improve the experience of working in Denmark
place, we took part in the celebration by hosting an for international talents - including an international
open-air party with debates and music for all our network. We also continue our Embracing Diversity
LGBT+ colleagues and allies. We also communicated project, a buddy programme for international new
through our senior leaders the importance of diversity hires who team up with an experienced international
and inclusion to emphasise to our people that we live buddy to help them settle in. In the coming year,
our values - they are not just empty words. we plan a cultural awareness campaign to help our
people be considerate towards colleagues from
Apart from offering Danish language and culture different cultures.
courses, we are also conducting a range of projects
In addition, when it was time to observe Ramadan,
we promoted Deloitte Denmark's Muslim Network
and raised awareness around the purpose and
different sacred aspects of Ramadan. Furthermore,
we promoted how to be inclusive and considerate
towards our Muslim colleagues observing the fast
and upholding their worship.

With all these initiatives, we aim to create a culture of

belonging amongst our employees. Belonging in the
sense of feeling secure, accepted, and included. It has
a positive effect on your performance and personal
life, and it is critical to improving engagement and
overall business goals in a people business like ours.

Developing and training our leaders a vital component to building the foundation for a
When it comes to leadership, our ambition is healthy, grounded approach to life and work. 
to cultivate inclusive leaders who are empowered
to develop and grow our talents. To continue our Our Leadership Academy also includes international
progress, our Leadership Academy has been programmes that allow leaders to build networks
redesigned with a strong focus on personal while sharing best practices and common experien-
development, as well as working with strengths ces with peers and leading specialists. While colla-
and development points individually and in teams. borating with established universities globally, we
Our training provides our leaders with concrete also have our own learning facilities - the Deloitte
leadership tools that can be used in day-to-day University. The new location of the Deloitte
situations and furthermore enable a focus on University EMEA (Europe, Middle East and Africa) is
both physical and mental well-being. During the currently under construction outside of Paris. The
past year, we have expanded our courses and Deloitte University allows us to gather our people
targeted the individual programmes to different across member firms and give them an exceptional
talents to support the development of top senior development experience while strengthening the
talents, upcoming partners, and newly appointed Deloitte culture.
partners.
Digital learning also took off in the past year, in
Based on research and own experience, we know which we began to leverage our digital learning
that leaders who are physically and mentally well platform CURA even more. Digital courses proved to
are much better and more engaging leaders. be valuable during COVID-19, and with the flexibility
That is why we have integrated scientific evidence and opportunity to tailor learning to different needs
on sleep, diet, physical exercise, and mindfulness and interests across our international Deloitte
with individual treatments and coaching in our network, this is the kind of learning that continues
leadership training. And in so doing, we have added to be relevant and attractive within specific areas.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 31
STATEMENTS FINANCING
 Annual report FY22

Governance

32 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

These values help us live our purpose. Our

Sustainable growth, lives, Global Principles of Business Conduct describe
and transformation our ethical commitments, and our Commitment
to Responsible Business Practices covers the
responsible business principles we believe in and
Guided by our shared values the commitments we have made. Together they
Deloitte is a people business. Our people are shape our policies and guide our decision-making.
our greatest asset. That is why our Shared Values
are core to our culture and our success. Without With our reach and capabilities come respon-
them, we would never have been able to gather sibilities, and we are committed to continuing to
more than 415,000 people worldwide and build use ours to foster a more sustainable future for
the biggest professional services firm in the world. our people, clients, and society. 

These values bind us together across Deloitte,

guiding our collective behaviours and uniting us Our Shared Values  
around one shared purpose: to make an impact
• Lead the way
that matters for our people, clients, and the
communities we are part of, so we can build better • Serve with integrity
futures. • Take care of each other
• Foster inclusion
• Collaborate for measurable impact

A business built on ethics, trust, and and if we fail to live up to these standards, we
transparency  risk that people and businesses will lose faith in
Deloitte’s reputation is one of our greatest assets. systems, authorities, and capital markets.  
It is built on trust and by our people. It distinguishes
Deloitte in the marketplace, differentiating us from Therefore, we work every day to uphold our
the competition and enabling us to attract the position as the leading professional services firm
world-class talent that is our hallmark.   in the world by acting ethically and with integrity
and serving as role models in our communities
A responsibility we take very seriously at Deloitte - while complying with external as well as regu-
is upholding the public trust while ensuring latory requirements and expectations. Learn
objectivity and providing transparency across the more about our ethics and information security
organisations we serve. It is our licence to operate, policies here

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 33
STATEMENTS FINANCING
 Annual report FY22

Coping with COVID-19 and the after-effects 

As we started our financial year in June 2021,
COVID-19 had finally begun to lose its grip, and the
Government launched a plan for a full reopening
of society. As restrictions were lifted, we were
happy to return to a more normal everyday life
with physical meetings and social gatherings.
Fortunately, this also meant that we could again
serve our clients face to face, and as travel
restrictions were slowly lifted, business travel also
became possible.

Travelling is, in many cases, a key enabler for our

work with clients and collaboration across member
firms. Therefore, as restrictions were lifted, we saw
a rise in travelling due to a natural need to meet
physically with clients and teams post COVID-19. But
as business travel accounts for a significant part of
our CO2 emissions, we have launched a new travel
policy to ensure that we do not return to the same
travel habits as before the pandemic - read more
about our climate initiatives under Environmental. 

The pandemic changed the way we work, making

flexible and hybrid ways of working the new normal.
Based on the learnings from COVID-19 and focus
group interviews with employees, we developed
Deloitte's Code of Distributed Work to support
our people in maintaining a flexible working life.
In addition, to ensure a good physical working
environment, we continue to offer all employees
home office equipment - an initiative that was
introduced last year but will remain, as many of our
people appreciate more flexible ways of working.
Unfortunately, COVID-19 restrictions have taken
their toll on our people’s well-being with increasing
stress levels. Therefore, we have initiated several
well-being initiatives, which you can read more
about under Social.

We will continue in FY23 to monitor the pandemic’s

impact on our people closely and be ready to
respond and support as needed. 

On a more social level, we celebrated that we could

finally gather all our colleagues across our offices
and boosted social cohesiveness by throwing
an epic ‘Green Dot Party’ in the Royal Arena in
Copenhagen with concerts by leading Danish
artists, a festival vibe, food and drinks - the first
social gathering for the whole of Deloitte Denmark
in years, but hopefully not the last.  

34 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Contributing to a more
sustainable society Throughout FY22, we reached
13.6 million lives globally and
As a professional services business comprised of
knowledge workers, we believe we make the greatest invested a total of USD 284
societal impact when our people use their skills and million in helping communities
expertise to help others succeed. Our commitment
to make an impact that matters to society is outlined build better futures.
in Deloitte’s global WorldClass ambition, in which we
focus on developing job skills, improving educational
outcomes, and expanding opportunities. We do so aim to provide quality education and opportunities
by enabling our professionals to help those from for 100 million people worldwide by 2030. Since we
underrepresented segments of society. In colla- started measuring our global impact in 2018, we
boration with leading educational organisations, we have reached 33.6 million individuals worldwide.

WorldClass - our societal impact and participation in selected World Economic Forum
In May 2021, Deloitte launched the WorldClass and Deloitte events, projects, and communities.  
Education Challenge in collaboration with the World
Economic Forum to advance education solutions. The UpLink is a free and open digital platform which
joint initiative invites educators, entrepreneurs and Deloitte designed and developed in collaboration
innovators to work alongside Deloitte professionals to with the Forum and Salesforce. It seeks to address
advance solutions that will support access to quality the world’s most pressing issues, as outlined by
education for more students worldwide the Sustainable Development Goals, by connecting
the most promising submissions to the expertise,
In FY22, we selected 12 winners from Africa, India, resources, and networks which can scale the venture
Southeast Asia, and Australia. All winners had and accelerate their impact. 
submitted novel educational approaches to advancing
learning during the pandemic through the UpLink WorldClass in Denmark - our local impact
platform. Over the next year, they will receive up to USD In addition to our global initiatives, we have several
1 million in professional services on a pro bono basis, local WorldClass initiatives that support our ambition -
financial grants, a dedicated relationship manager to including those described below. Through our various
support the organisations’ collaboration with Deloitte, WorldClass initiatives in Denmark, we have reached
2,450 people this year.

business leaders, politicians, organisations, the public

sector, and the broader society in discussions about
Denmark’s future. During the past year, we launched
our ninth report ‘The labour market of tomorrow - a
party for everyone?’, which investigates the structural
challenges faced by the labour market and how they
can be addressed without leaving anyone behind.
And we launched our tenth report ‘Green cows,
Russian gas and CO2 - myths and realities’, which
explores how Denmark can achieve its ambitious
climate targets. We also went on a Small Great Nation
roadshow across Denmark where we discussed local
Small Great Nation is our main social impact strengths and challenges, focusing particularly on
initiative. Small Great Nation is a collaboration with climate, education, and building sustainable cities. By
think tank Kraka to create a fact-based discussion sharing these research-based findings, we engage
about Denmark’s strengths, opportunities, and communities and educate people across Denmark
challenges as a country. Through analyses, events, to participate in the public debate. Read more about
podcasts, and press activities, we have engaged Small Great Nation here.  

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 35
STATEMENTS FINANCING
 Annual report FY22

Human Practice Foundation

During FY22, we initiated a collaboration across
the Nordics to inspire each other and work together
to expand the number of Nordic futures on which
we have a positive impact. Each of the Nordic
countries has partnered with organisations that
work to enhance education and job opportunities in
society. For example, in Denmark, we have formed
a close partnership with the Danish NGO Human
Practice Foundation, which creates schools, quality
education, and entrepreneurial projects for children
and communities in Nepal, Kenya, and Denmark.

Deloitte supports the Human Practice Foundation in

their operations with advisory and auditing services
– including organising their fundraisings. All our
work is pro bono, and today the Human Practice
Foundation is a successful and fast-growing NGO
that brings about positive change for children by
building and restructuring schools in developing
countries and helping vulnerable school children in
Denmark.

36 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Additionally, we collaborate with the organisation

VELKOMMEN HJEM (Welcome Home), which helps
Danish veterans transition from military service to
the civilian labour market through a well-planned
course that uncovers the veterans' competencies
and matches them with a mentor from a private
company. This collaboration is to ensure that
we, as a society, leverage the veterans’ military
competencies and experiences while transitioning
back to civilian life as smoothly as possible. Deloitte
supports VELKOMMEN HJEM by making a number of
mentors available to the participating veterans.   

To contribute to the education of high school

students and expand opportunities, members of
our Audit & Assurance practice have held ‘Audit
Masterclasses’ in high schools around Denmark.
By teaching final-year students about auditing and on future career possibilities, as many of these
working at Deloitte, they have provided fun learning students come from areas where they might not be
experiences and expanded the students’ views exposed to a diverse range of career opportunities.  

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 37
STATEMENTS FINANCING
 Annual report FY22

Ethics and information security

Deloitte is committed to conducting business these rights through our culture and our daily
with transparency, honesty, and the utmost activities. Deloitte strives to be an ethical company
professionalism. To ensure this, we have set that meets or exceeds the demands and expectations
clear standards for professional practice and of society and clients. 
behaviour, which we will unfold below. 
Our culture must be open and honest, we must
We measure and report on our progress in treat each other equally and respectfully, and we
these areas, not only to hold ourselves account- must never bring our professional and individual
able but also to transparently demonstrate the integrity into question through corrupt and unethical
connection between responsible governance and behaviour. That is why we take any incident seriously. It
operational success.   is important for us that our people know that no one is
above the rules - no matter their rank or professional
Our ethical commitments - living our values value to the organisation. Therefore, we have had to
Deloitte’s Global Principles of Business Conduct let go of skilled people who have failed to live up to our
outline our ethical commitments and expectations values and exhibited inappropriate behaviour.  
for all Deloitte people across the globe. These
principles reflect our core belief that ethics and We have different channels for consultation and
integrity are fundamental and non-negotiable. reporting of ethics concerns that emphasise
The principles articulate our firm stand against confidentiality and non-retaliation. Either directly to
bribery, corruption and fraud, our support for team leaders or partners or by using the third-party
efforts to eradicate corruption and financial crime, ‘Speak Up’ whistle-blower system, which allows our
as well as our commitment to respecting human people to safely share concerns and report any
rights. Furthermore, we communicate clearly unethical behaviour - including potential breaches of
about our employees’ rights, their human rights, human rights or examples of corrupt behaviour. In
their ethical obligations as employees, and how these and other ways, we strive to minimise human
Deloitte manages human rights risks and protects rights risks.  

"We promote a culture and working environment where our employees treat
each other with respect and consideration, and where everyone has equal
opportunities. We have a zero-tolerance for sexism, racism or any other form of
discrimination in our working environments." Anders Dons, CEO & Partner

38 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Acting in times of war and uncertainty

After the pandemic, it was clear that the world had relocation where needed, including immigration
entered a new era where uncertainty was the new assistance, transport and accommodation, as well
normal, but few of us had imagined that a war on as financial and psychological support. On a global
European soil would be probable. Nevertheless, we scale, Deloitte has committed nearly USD 7 million in
are witnessing a meaningless and heartbreaking war in financial donations to support the humanitarian needs
Ukraine. In times like these, our values have helped us of those impacted by the war in Ukraine.
take the tough but necessary decisions about Deloitte’s
operations in Ukraine, Russia, and Belarus. And Deloitte Exiting Russia
stands unequivocally with the people of Ukraine. After the Russian invasion, we decided to separate our
We have been very clear on this position and the practice in Russia and Belarus from the global network
dilemmas embedded in the war in both external and of Deloitte member firms. As a result, Deloitte no longer
internal communication, with our CEO as our primary operates in Russia and Belarus. While we know this is the
spokesperson.   right decision, it impacts the 3,000 now-former Deloitte
professionals in Russia and Belarus who have no voice in
Russia’s invasion of this sovereign nation is an the actions of their government.
indefensible act of aggression that echoes the darkest
days in European history. Our overriding concern is the From a client perspective, Deloitte Denmark has many
well-being of our colleagues in Ukraine and their families. clients with business operations in Ukraine, Russia, or
For the time being, Deloitte has suspended business Belarus. Since the invasion, we have worked very closely
operations and client service in Ukraine to allow them to with them to support and help them navigate the risks to
focus on their loved ones. We support our people with and impacts on their respective businesses. 

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 39
STATEMENTS FINANCING
 Annual report FY22

Human rights and the supply chain

The professional services industry has a lower risk
of child, forced, or compulsory labour in their direct
operations relative to other industries, given the
type of work performed and its delivery methods.
Deloitte’s commitment to protect these human
rights is expressed in Deloitte’s Global Principles
of Business Conduct. Deloitte is not aware of any
instances of child, forced, or compulsory labour in
our operations. 

Deloitte’s supply chain crosses multiple industries

and all regions of the world. The Deloitte Supplier
Code of Conduct includes prohibitions on forced
or involuntary labour. It also requires that work
be conducted based on freely agreed terms;
that documents relating to workers’ identities
or immigration status may not be withheld or
destroyed, concealed, confiscated, or otherwise
made inaccessible by the supplier; and that there
be no exploitation of child labour. Suppliers are
expected to apply standards comparable to
those outlined in the Supplier Code of Conduct
throughout their own supply chains.  

Last year, Deloitte conducted a human rights

assessment regarding the risk of child, forced,
and compulsory labour in our supply chains. We
established that our highest risks exist in the
areas of office construction, IT hardware, facility
management, and hospitality services. Risks are
more likely to occur deeper in our supply chains,
beyond those suppliers from whom we procure
directly. Increased transparency from direct sup-
pliers will be helpful in continuing to understand
and address human rights issues, and we plan to
look further into improving this in the coming year. 

40 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Ethics training - sustaining a culture of integrity  Information and cyber security 

We work closely with our senior leadership to build Information security controls are a core element
and enhance Deloitte’s ethics programme through of our workplace culture. We continually reinforce
ongoing ethics training and campaigns that confront and communicate our information security policy
employees with ethical dilemmas through role playing to ensure that all our people maintain a clear
and storytelling. By exemplifying ethical scenarios, understanding of what is expected of them and how
we guide our employees to recognise unethical we protect their rights to privacy and confidentiality.
behaviour and take the right action. Ethics training is During the past year, we have maintained a very high
required for all Deloitte professionals every two years focus on cyber security. This focus has become only
and for all new hires.  more pertinent as we have seen a significant increase
in cyber attacks against Western targets since the war
During the past year, we have launched a new policy broke out in Ukraine.  
on familial and personal relationships to ensure
that no working relationship can create or appear
to create conflicts of interest that impact objectivity,
independence, confidentiality, morale, or our inclusive
culture. In our annual Ethics Survey, we asked our
people to share how they experience our culture, For the second year, we have run our extensive cyber
including our focus on human rights, professional culture programme. Within the programme, we have
conduct, and conflicts of interest. According to the had campaigns and mandatory e-learning that covered
FY22 survey, 99 per cent of respondents agreed or a broad array of security areas, including data security
strongly agreed that Deloitte is an ethical place to and how to spot phishing e-mails, phone calls and texts.
work, and 97 per cent believed that action would be We also held Cyber Security Awareness weeks where
taken if unethical conduct was reported.   we focused on different ways of staying cyber secure,
focusing particularly on the risks involved in working
We are happy to see that the survey results show remotely.  
that our continuous training and communication
have proven effective in fostering an ethical culture In FY22, we ran several phishing drills followed by
in Deloitte. However, we acknowledge that this articles on how to spot phishing to ensure that all
is an ongoing effort and an area with room for employees are aware of cyber risks. Each year, all
improvement. Therefore, we continue to focus on the employees complete mandatory e-learning courses
value of diversity in many forms and how to foster on cyber security. The courses raise awareness
a truly diverse and inclusive work culture - read of the risks relating to confidentiality, privacy, and
more about these initiatives under Social. Our CEO security, of reducing the risk of security breaches, and
also communicates strongly and frequently about ensuring compliance with the General Data Protection
our zero-tolerance policy on these issues through Regulation (GDPR) and other requirements.
internal communications channels, such as intranet,
newsletters, and webinars.  In FY22, we updated and reinforced our risk control
systems and – after passing both internal and exter-
nal audits – we had our Nordic ISO27001
certification renewed. The certification
demonstrates our com-mitment to running a
responsible business while keeping our data and
clients’ data safe. Being ISO 27001-certified allows
us to guarantee our clients and people that we will
In addition to this year’s Ethics Survey, our employees always treat their data in a secure, responsible, and
completed a mandatory ethics refresher e-learning appropriate manner. This certification allows us to
that was designed to make our people pause and protect our brand, image, and business. 
reflect on the behaviours that are expected of them,
practise how to handle different ethical dilemmas, and The above-mentioned activities are all part of our
gain insight into what happens after a concern has extensive risk control system at Deloitte, which we
been raised. We will continue these and other efforts continue to advance. If and when breaches come to
in FY23 to ensure that our culture and conduct always light, we take swift action ranging from warnings to
reflect our purpose and Shared Values.  termination of employment.  

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 41
STATEMENTS FINANCING
 Annual report FY22

CASE Cookie Information

“The demand was increasing at a level where we

A fast-growing journey to did not have the corresponding organisational
safeguard personal data capacity. Denmark and the rest of the Nordics
were first movers on data security, and now the
rest of the world is following suit. By continuing
As technology evolves and the analogue world without a strong financial partner, we would
turns digital, our personal data becomes increasingly risk ending up as an insignificant local player in
exposed on the internet. Every day, consumers are an increasingly global market - not realising the
tracked by online cookies without their consent and potential of our firm.”
with no guarantee that their data is in safe hands. Karsten Rendemann,CEO and Founder of
Cookie Information – a Danish fast-growing privacy- Cookie Information 
tech SaaS (Software as a Service) company – is set out
to solve this problem and offers a software solution
to help companies protect their customers from the A true top-tier investor 
harness of personal data.  At Deloitte, we have a Fast-Growing Companies
team, consisting of experts who support
Karsten Rendemann and Jonas Andersen founded companies with exponential growth throughout
Cookie Information with a clear mission to help their transition and growth period – companies
organisations comply with privacy laws and safeguard like Cookie Information with ambitions and a
personal data by providing a best-of-breed Consent business model to go that extra mile. As a result
Management Platform (CMP). Today, Cookie of our Fast-Growing Companies networking
Information’s CMP is implemented on more than activities, Cookie Information established
250,000 websites globally and collects more than relations with Deloitte and thus invited us to pitch
40 billion consents from consumers every year.  on the engagement of assisting the company
in identifying possibilities and finding the right
With a rapidly growing client portfolio and a huge investor. 
potential, Cookie Information has the vision to
become the preferred choice of CMP for privacy- Deloitte’s Corporate Finance team dedicated
conscious organisations globally. To help fulfil the to projects within the technology, media and
vision, the owners set out to find a strong financial telecommunications (TMT) industry was formally
partner. engaged in the summer of 2021. The team worked
closely with Karsten and Jonas over the next six
months to prepare the process by defining the
strategic direction, building the business plan,
and preparing the required documentation.
In early 2022, Deloitte identified multiple
potential partners and facilitated meetings with
management teams. Ultimately, 15 investors
submitted offers, which left Cookie Information
with many attractive partnership opportunities. 

42 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

One of the suiters was the LEGO family’s

investment company Kirk Kapital, endorsing the
societal purpose of facilitating trust on digital
platforms. Kirk Kapital’s strong culture, team
spirit, and long-term focus on value creation
made up a perfect match for Cookie Information.
The transaction was signed and completed in
a highly efficient period leading up to Easter of
2022 – on the exact date set out in the original
timetable dating back to the summer of 2021. 

“Deloitte has been invaluable in organising

a structured process that enabled us to
find the right partner for our journey going
forward. The Deloitte team was the best
advisors one could ever have asked for –
highly competent, motivated, and serving
with integrity. I feel in my gut that we are
in the best possible position to scale our
business. In fact, we are now the second
largest third-party internet service provider
to the 100 biggest Danish websites – only
surpassed by Google.”
Karsten Rendemann,CEO and Founder of
Cookie Information 

Assisting Cookie Information in reaching such

a milestone has been an exciting challenge.
We are pleased to continue supporting the
company in its growth journey towards
becoming the preferred CMP provider globally. 

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 43
STATEMENTS FINANCING
 Annual report FY22

CASE Codan/Trygg-Hansa

To support them through the process, Codan and

Driving complex transformation Trygg-Hansa chose Deloitte as their transformation
partner. Together, the team established a trans-
in historic insurance demerger  formation programme and governance set-up to
ensure a smooth handover of activities between the
parties. 
In 2022, a historic transaction was completed in
the insurance industry as Tryg and the Canadian Nordic collaboration ensured cross-border
insurance company Intact took over the RSA success 
Insurance Group – a transaction that entailed a A cross-border project requires cross-border
complex transformation for all parties involved.  solutions. Consequently, in addition to the Danish
team leading the programme, Deloitte drew on
While Intact acquired RSA's business in the UK, competencies from Norway and Sweden, and they all
Tryg acquired its business in Norway (Codan) worked together on various aspects of the demerger,
and Sweden (Trygg-Hansa). The acquisition led leveraging expertise across the Nordic firm and
to a necessary carve-out of Codan Forsikring in providing a one-stop service. 
Denmark, which was then acquired by Alm. Brand
following the transition. 
“Deloitte brought the right competencies into
Given the scope of the demerger, numerous play at the right times. The result was a united
stakeholders and interests were involved. One team that did not feel divided between advisors
task was to ensure that business continued to run and clients. A team that could execute and
smoothly in the respective companies, providing transform in a transparent and trustworthy
an unaffected customer experience. Another manner that ultimately resulted in a very
was to guide hundreds of employees through the successful demerger.”
uncertainties of belonging to one large organisation
Vivian Lund, former CEO of Codan/Trygg-
which had been sold to different owners. 
Hansa

“The level of complexity was unlike anything

Throughout the entire process, detailed planning,
we had experienced before. We had no best
proactivity, communication, and strong governance
practices to guide us, which meant we needed
were key to ensuring a smooth integration that
to design our own solutions to deliver and allowed each party to uphold its value in terms of
meet the hard deadline.” customers, employees, processes, and systems. 
Vivian Lund, former CEO of Codan/Trygg-
Hansa Deloitte is proud to have steered the complex
demerger in close collaboration with all parties
involved. 

44 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

CASE DSV

plan. At the same time, Deloitte established a team

Like performing open heart of 35 dedicated SAP and IT consultants in Denmark,
Norway, Sweden, and Iceland, as well as a group of
surgery on an awake patient
migration experts in Portugal who worked alongside
the DSV IT team throughout the project.  

With freight moving 24/7 all over the world, the "Upgrading might sound simple. But it is not
message from DSV, one of the world's largest transport like upgrading an app on your iPhone. It is like
and logistics companies, was clear: The upgrade of upgrading the operating system of your iPhone. For
its vital and global SAP platform had to be completely DSV, it is the main financial system used globally,"
smooth and hassle-free.  elaborates Palle Juhl Andersen, Partner in Deloitte. 

Whether you need to fly lions from Korea to the USA, The first step was to draw a road map of who should
transport 385,000 tons of concrete parts through the do what – and when. Then the consultants began
streets of Copenhagen, or ship sensitive equipment digging into the technical parts, touching DSV's most
to Alaska, DSV is ready to help you. Since 1976, DSV fundamental data. And on 12 February 2022, the
has grown from a group of small hauliers to one of the new SAP S/4HANA solution was ready to go live. 
world's largest transport and logistics companies. 

"It is like performing open heart surgery on

Like any large and global company, DSV manages
a patient who is awake. You are shutting the
its day-to-day business finances from an enterprise
resource platform. Such platform ensures that all data whole system down, so being on time is crucial.
and financial management rest in one place.  We promised DSV that everything would
be ready on 12 February at midnight. The
Digitalisation is key to DSV, entailing always to ensure system was up and running two minutes past
that the finance platform is prepared for the future. midnight."
Thus, last year, DSV reached out to Deloitte for Palle Juhl Andersen, Partner in Deloitte
assistance with a technical upgrade of the platform to
SAP S/4HANA. 
After the platform was live, the consultants stayed
“We chose to work with Deloitte on this project on for a couple of months to ensure that the system
as we found they had a good balance between worked during the monthly and quarterly reporting. 
technical competencies and understanding of
our business and the way we work. Deloitte’s
"One of the keys to this success was the DSV
project team and management have an excel-
top management, who was actively involved in
lent approach to problem-solving when issues
the project to ensure that the right decisions
occur, which is unavoidable in projects like this.”
were made at the right time. This involvement
Michael Ebbe, Group CFO, DSV 
enabled us to pursue an ambitious timeline
Timely delivery  and follow it."
DSV allocated approximately 200 people to the Palle Juhl Andersen, Partner in Deloitte
project to test that everything worked according to

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 45
STATEMENTS FINANCING
 Annual report FY22

CASE Novo Nordisk

“As Novo Nordisk is listed on the New York Stock

Raising the bar for audits Exchange, the audit is performed under Public
in Denmark’s most valuable Company Accounting Oversight Board (PCAOB)
company standards. Thus, as external auditors, we are
required to provide an opinion on both the
financial statements and the internal control
For almost 100 years, Novo Nordisk has helped environment, making Novo Nordisk one of the
millions of people who have diabetes or other serious most complex audits in Denmark. Onboarding a
chronic illnesses. By developing and expanding global audit like this also provides a key learning
pharmaceuticals and subsequently making them experience for our people in how to scale fast
accessible, Novo Nordisk meets the medical needs on the financial, IT, and ESG audits.”
of patients all around the world who live with chronic Anders Dons, CEO of Deloitte
illnesses posing some of the most pressing health
challenges in today’s society. 
By establishing a diverse and strategically developed
In a dynamic and evolving life science industry, audit team with a global outlook, the ambition from
innovation, digitalisation, and technology are some of day one has been to create value and bring fresh
the key concepts that enable Novo Nordisk to live its perspectives to the table during the transition.
purpose: to drive change to defeat chronic illnesses. The audit approach is reimagined by leveraging
These concepts must imbue the entire organisation capabilities, including a global network and expertise
– and Novo Nordisk invited Deloitte to be part of this through collaboration with life science experts in the
journey as its external auditor.  United States.

“We are focused on the power of digitalisation “Our transition to Deloitte and our first-year audit
and connected healthcare. We are evolving have been professional and insightful. Deloitte’s
from a molecule-focused pharmaceutical insights have provided us with a fresh pair of eyes
company to a patient solutions-oriented enter- that assists us in driving continuous improvement
prise where drug, device, digital, diagnostics and helps us raise the bar.”
and data are fully integrated to deliver leading Karsten Knudsen, CFO of Novo Nordisk  
treatment solutions to patients.”
Novo Nordisk 2021 Annual Report Since the beginning of the collaboration, the goal
has been to strive for excellence and raise the
Global expertise and diversity bring transition bar for audits. With deep pharma experience and
that creates value  an audit tailored to Novo Nordisk and enabled
Since the collaboration began, Deloitte has worked to by people and technology, Deloitte is delivering
perform an audit that is reimagined, digitally enabled, the quality and consistency that stakeholders
and brings the right business insights through insight increasingly demand – a reimagined audit that
reporting and benchmarks that ensure continuous ensures compliance, quality, and efficiency in
improvements.  Denmark’s most valuable company.  

46 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

CASE Pandora

Taking responsible business to the next level 

The world’s largest jewellery In recent years, Pandora has taken significant steps
to strengthen its performance on sustainability
company putting sustainability
throughout the business – with the ultimate goal of
front and centre becoming an industry leader in sustainability. 

The company has announced its commitment to

From a small jeweller’s shop in modest sur- source only recycled gold and silver for all products
roundings in Copenhagen to the world’s largest by 2025. Moreover, it has presented a new industry-
jewellery company, Pandora has manifested itself as leading climate change strategy that aims to reach
a global brand, offering hand-finished jewellery made net-zero by 2040 – including a science-based target
from high-quality materials at affordable prices.  to reduce its greenhouse gas emissions by 50 per
cent by 2030 from a 2019 baseline. 
As a major player in the industry, Pandora is highly
committed to leading the way as a responsible To support translating the commitment into action,
business – by crafting jewellery with respect for both Pandora invited Deloitte to join its sustainability
people and the planet.  journey last year. 

Sustainability and responsible practices have been Since then, Deloitte’s sustainability team in Risk
part of Pandora’s way of doing business since the very Advisory has assisted Pandora on various projects,
beginning. Today, the company has set out priorities from seizing low-carbon opportunities to preparing
to become a low-carbon, circular business which is for the company’s Science-Based Target approval. 
inclusive, diverse, and fair. 

“Deloitte has been a trusted partner that

Sustainability has been integrated into the company’s
we have been able to work with side-by-side
overarching business strategy, “Phoenix”, serving as
a foundational element supporting Pandora’s growth on the execution against our sustainability
ambitions and aligned with the company’s activities strategy.”
and values.  Marissa Saretsky, Director of Global
Corporate Sustainability at Pandora
“Placing sustainability at the core of our
business strategy is a natural path for Pandora Deloitte is honoured to assist a global and influential
as a responsible and leading global brand brand like Pandora on its sustainability journey –
– and a crucial step to future-proofing our together making an impact that matters.
company.”
Marissa Saretsky, Director of Global
Corporate Sustainability at Pandora

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 47
STATEMENTS FINANCING
 Annual report FY22

SPOTLIGHT 110 years of making an impact 

1 April 2022 was a special day. It marked

Deloitte Denmark’s 110th anniversary.
One hundred and ten years ago a young
banker from Jutland by the name of Jens
Hassing-Jørgensen founded Revisions- og
Forvaltnings-Institutet (RFI) – a small
accounting firm located in the heart of
Copenhagen. This firm was the beginning.
Then followed the merger with Schøbel &
Marholt, Arthur Andersen, and many other
proud firms that joined and established
what we know today as the largest audit
and advisory firm in the country: Deloitte.   Library’s – and created a brand new exhibition
that tells the history of our firm through textual
Deloitte has prevailed through two world and visual elements. Learn more in the video
wars, financial crises and most recently a below or explore the full story in Danish or
global pandemic. Over the years, more than English here.
35,000 people have entered the doors to join
Deloitte and become part of a community for
life. Today, we are almost 3,200 people across
Denmark and Greenland working for the same
purpose: to make an impact that matters for
our people, clients, and society. We insist on
being the most responsible, trustworthy, and
influential firm.

We celebrated Deloitte’s anniversary across the

country in all our offices. To mark the day and
Deloitte’s history properly, we went into the
archives – our own and the Royal Danish

48 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

SPOTLIGHT Green Dot Party  

An unforgettable celebration in the wake of On top of this festive set-up, we also had
the pandemic  fantastic concerts by Lukas Graham, Lord
Siva, Drew Sycamore, and other artists, who
In 2020, during the first wave of the contributed to creating an incredible night for
COVID-19 pandemic, we launched a series of us all. Another highlight of the evening was the
‘Green Dot Live Shows’ - consisting of virtual launch of the Deloitte People Awards. Before
entertainment broadcasted every second the event, our people had been asked to look
Friday to employees across the country. While back on the past year and nominate colleagues
the concept boosted social cohesion amongst that had:
our colleagues in times of social distancing,
we naturally longed to gather in person. · Delivered an impact beyond the expected,
Therefore, we decided to celebrate the lifting · been a fantastic colleague,
of the last restrictions with a grand ‘Green · been an inspirational leader, or
Dot Party’, gathering all our colleagues across · delivered a remarkable team effort.
Denmark and Greenland for the first time in
many years. At the Green Dot Party, the winners within each
category were announced by Anders Breinholt
After six months of planning, 2,300 of our and celebrated on stage.
colleagues flocked to the Royal Arena in
Copenhagen on 30 October 2021 for a
night they would never forget. The theme
was ‘everything you missed out on during
COVID-19’ - all in one night. The arena had
been transformed into a wedding party with
champagne and canapes, a festival with
street food and ‘beer bowling’, an after-skiing
area with goulash, a Jägerbomb bar, and a DJ
in lederhosen. Not to mention the game room
with Packman, shuffleboards, and foosball
tables.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 49
STATEMENTS FINANCING
 Annual report FY22

SPOTLIGHT Small Great Nation   

Deloitte Denmark and think tank Kraka In the spring of 2022, we launched the tenth
collaborate on engaging Danish businesses, report about climate, focusing particularly
organisations, and the public sector to on how to reach Denmark’s CO2 goals, make
discuss and co-create solutions for a better agriculture green, and break free from Russian
Denmark based on our research-based gas supplies. Both reports have been launched
findings about our society – including at events and have created great media debate. 
the climate, labour market, and social
cohesion. We call this Small Great Nation
and have been running the initiative for
five years.  

If last year was the year in which the Youth

Panel launched its 2040-vision for Denmark,
then one of the biggest highlights this year was
our Small Great City Tour. We visited Odense,
Esbjerg, Aalborg, and Aarhus and engaged Another highlight is the Small Great Nation
mayors, business leaders, academia, the youth, podcast. With ten new episodes, we have
and the local community around a discussion engaged leaders, such as national soccer coach
on local strongholds. The ambitions in all cities Kasper Hjulmand, Vestas CEO Henrik Andersen,
are high, and topics such as climate solutions, and Danish Industry Association CEO Lars
education, and how to attract businesses and Sandahl, in meaningful discussions about our
students were on the agenda.   country’s future. We have also continued to
engage our three advisory boards consisting
A cornerstone of Small Great Nation is to bring of leading CEOs and chairs in Denmark to
new and relevant data to the public discussion. help shape the future of the project and be
So, in the autumn of 2021, we launched the ambassadors for the findings.  
ninth report about the labour market, including
a focus on how to close the gender gap in Last but not least, we have continued to shape
leadership positions and how to transition the the public agenda with PR stories and social
labour market to ensure that it develops the media campaigns addressing our recent
competencies that the future calls for.   findings.

50 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

SPOTLIGHT Roskilde Festival   

Deloitte partners with Roskilde Festival

The partnership holds the five pillars:
- The sound of impact  
· Digital strategy
Three years ago, Deloitte and Roskilde
· Developing bottom lines for social,
Festival decided to partner around a
environmental, and artistic sustainability
common purpose of bringing people toget-
her through strong communities and giving · Volunteering at work
back to society. · The Small Great Nation Youth Panel

Roskilde Festival is the biggest festival in the · Client impact day

Nordics and the second biggest festival in
Europe. Roskilde Festival is part of a 100 per
cent non-profit organisation, the Roskilde
The Roskilde Festival Group is a
Festival Group, with the strategic ambition
to be a sustainable community that moves
non-profit organisation. Our purpose
people, inspires the outside world, and leads is to make an impact and pave the
the way to make a difference. This year, way for change. However, we cannot
Roskilde Festival celebrated festival number achieve that alone, and that is why
50. With 100,000 participants and 290 per- partnerships with other companies,
forming artists, it was a year to remember.
organisations, and institutions make
A partnership with the Roskilde Festival Group
up an important part of how we
starts with a match in culture and values. And work. It is about working towards
it means putting the partners' competencies a joint cause and with common
into play so they contribute to the positive values – and it is also about bringing
development of society, which the Roskilde different competencies into play so
Festival Group supports. Deloitte’s purpose
that partners can learn from each
is to make an impact that matters for people,
clients, and society. The partnership with
other. I believe our partnership with
Roskilde Festival is an excellent example of how Deloitte is an excellent example of
we engage our people and clients around a such a partnership.
common societal goal - read more here. Signe Lopdrup, CEO, Roskilde Festival

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 51
STATEMENTS FINANCING
 Annual report FY22

Contents

Financial review

Financial highlights

Statement by Management on the annual report

Independent auditor's report

Statement of comprehensive income for 2021/22

Balance sheet at 31.05.2022

Consolidated statement of changes in equity for 2021/22

Parent statement of changes in equity for 2021/22

Cash flow statement for 2021/22

Summary of notes to the financial statements

Capital structure and financing

Notes to the financial statements

52 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Financial review
Main activity Profit for the year amounts to DKK 64m, which is
Deloitte Statsautoriseret Revisionspartnerselskab DKK 9m higher than last year’s profit and expecta-
carries out audit and advisory services in Denmark tions expressed in the annual report for FY21,
within the framework that follows from the Danish and revenue for the year exceeds the expressed
auditing legislation. The activities have consisted of expectations of an increase in revenue of 5%. We
audit and advisory services within Audit & Assurance, refer to the information above for further details.
Consulting, Tax & Legal and Financial Advisory. In assessing the results, it should be considered
that the remuneration to equity partners has been
Statement of comprehensive income recognised in staff costs.
We have continued our strong growth and
consolidation of our position as a market leading Audit & Assurance
audit and advisory firm in Denmark with 19% growth In FY22, Audit & Assurance has continued the
in revenue compared to last year. Revenue totals transformational journey of Reimagine Audit by
DKK 4,442m compared to DKK 3,748m in FY21. accelerating the use of technology, sustaining
All business units have experienced an increased market-leading quality, and continuing to change
level of activity as described below.. our delivery models. Revenue went up by 6%
compared to last year based on significant wins
Staff costs, including remuneration to the partners, of new audit clients, high demand for our services
total DKK 2,973m, which is an increase of 15% in general, and especially post-COVID-19-related
compared to last year. The increase is mainly due to services, and continued growth in Assurance
the increased level of activity and an accompanying Offerings.
increase in headcount. Of the total staff at 31 May
2022, 260 were partners (31 May 2021: 251). Consulting
Consulting has increased revenue by 29% in
External expenses have increased by 31% to DKK FY22. The strong performance is the outcome of
1,245m. The increase is mainly due to employees a deliberate and continued focus on helping our
returning to the office after COVID-19. We experience clients with larger-scale business transformations,
increases in travel expenses, electricity, training, and either M&A or technology-enabled or driven by the
office supply etc. need for interacting differently with their customers.

Revenue by business unit

Audit & Assurance

Consulting
Tax & Legal
35% 33%
Risk Advisory
32%
22/21 35%
21/20 Financial Advisory

14% 11% 14% 10%

8% 8%

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 53
STATEMENTS FINANCING
 Annual report FY22

This high growth is enabled by a remarkable culture Investments in intangible assets and property,
and hard work carried by Consulting’s talents, and plant and equipment amount to DKK 83m, which
also supported by the successful acquisition and primarily relates to goodwill and intellectual
integration of Syncronic within the supply chain area. property rights from business combinations
(i.e., acquisition of Syncronic) and further
Tax & Legal developments of our ERP platform, which was
Tax & Legal has continued its strong revenue growth implemented in the beginning of 2021.
from previous years and in FY22 realised a growth
rate of 14%. The growth has been driven particularly Distributed dividend amounts to DKK 60m, which is
by M&A, Global Employer Services, Business Tax, and the same as in FY21. For FY22 the dividend is also
Transfer Pricing. proposed to be DKK 60m.
The activities in the M&A market have been very
high in FY22 and with our increased footprint with Lease liabilities have decreased by DKK 77m to
the largest Danish multinationals and Private Equity DKK 308m. The significant decrease is due to lease
we have had significant growth in M&A. Increased payments made during the year.
advisory services have been the growth driver in
Global Employer Services. Focus on hiring senior Trade payables have decreased by DKK 81m due to
people with key competencies in the last couple of timing differences compared to last year.
years has contributed to the growth in Business
Tax. The growth in Transfer Pricing has been driven Short-term employee liabilities have gone up
by client demand due to primarily new reporting by DKK 98m, primarily arising from increases
requirements. in bonuses and remuneration to partners and
In FY22, we have had focus on developing our Legal employees compared to previous year.
practice and services within Managed Services and
S/4 Hana further to meet growing market demand. Operating cash flow before working capital
changes amounts to DKK 234m in FY22 compared
Risk Advisory to DKK 261m in FY21. The decrease is mainly due to
During FY22, revenue has increased by 22%, as the changes in employee liabilities. Furthermore, other
demand for risk, cyber and compliances-related financial liabilities have decreased by DKK 39m.
services is increasing significantly. Risk Advisory has
continued the transformational journey of investing in These factors have led to an increase in cash by
existing and new fast-growing business areas to meet DKK 62m, improving the cash position to stand at
future market opportunities, while at the same time DKK 404m by the end of 2021/22.
divesting a legacy business area.  
Parent
Financial Advisory The Parent generally accounts for 99% to 100%
Financial Advisory has significantly increased revenue of the Firm’s activities. The Firm’s development,
in FY22 with a growth rate of 31%. All service lines therefore, in all material respects corresponds to
within Financial Advisory have increased compared that of the Parent.
to last year. However, Corporate Finance activities
represent the by far highest increase due to the Uncertainty relating to recognition and
closing of a significant number of transactions. measurement
No special uncertainty has been identified relating
Balance sheet and cash flow statement to recognition and measurement. For significant
The balance sheet total is DKK 2,716m compared to accounting judgements and estimates, refer to
DKK 2,801m last year, of which equity amounts to DKK Note 0.5 to the consolidated financial statements.
578m, equalling an equity ratio of 21% (FY21: 21%).
Research and development activities
Net contract assets and trade receivables have In addition to continued improvements to our ERP
decreased by DKK 76m to DKK 999m. This platform mentioned above, ongoing improvements
significant decrease is due to an increase in and development of business-supporting tools are
advance billings compared to last year. carried out but are not assessed to meet the

54 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

criteria for recognition as separate assets in the Besides the above events, no events have occurred
balance sheet. from the balance sheet date and until the date of
issue that would influence the evaluation of this
As focus will remain on digitalisation and innovation, annual report.
we expect to make further investments in these
areas during FY23. Outlook FY23
Performance in the form of revenue and earnings
Financial risks for the coming year are expected to be on a par with
The Firm’s financial management is directed at this year.
managing and reducing financial risks which are
a direct consequence of the Firm’s operations,
investments, and financing. Because of its
operations, investments, and financing, the Firm is
primarily exposed to changes in exchange rates and
interest rates. Furthermore, the Firm is exposed to
credit risks related to trade receivables, contract
assets, bank deposits, and liquidity risks.

The exposures to the identified risks are monitored

on an ongoing basis by the Firm’s finance
department. The objective is that the Firm’s financial
management will contribute to increasing the
predictability of the financial performance, which
includes reducing the financial risks identified. The
Firm does not use derivatives etc.

The Firm’s finance department manages the Group’s

financial risks and coordinates the Group’s cash
management, including financing and investment of
surplus liquidity.

For a specification of the exposures etc., refer to

Note 3.5 in the financial statements.

Events after the balance sheet date

After the balance sheet date Deloitte acquired the
business Framework Digital for a total purchase
price of DKK 99m. Framework Digital’s main activity
is to provide consulting service with focus on SAP
solutions primarily for digital transformations and
business development. The effect of the acquisition
is an expected increase in revenue by approximately
DKK 100m for FY23.

Furthermore, it has been agreed to increase the

share capital by a nominal share amount of DKK
3.6m by way of a cash contribution.

The acquisition and the capital increase have not

influenced the evaluation of this annual report.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 55
STATEMENTS FINANCING
 Annual report FY22

Financial highlights

2021/22 2020/21 2019/20 2018/19 2017/18

DKK’m DKK’m DKK’m DKK’m DKK’m
Key figures
Revenue 4,442 3,748 3,588 3,732 3,429
Operating profit* 84 72 80 102 92
Net financials (20) (16) (20) (9) (4)

Profit for the year* 64 55 60 93 87

Trade receivables and net contract assets 999 1,075 973 1,244 1,026
Equity 578 575 580 580 547

Balance sheet total 2,716 2,801 2,542 2,137 1,799

Investment in intangible assets 63 22 67 114 11

Investment in property, plant and equipment 20 38 25 34 11
Net interest-bearing debt excl. lease liabilities 23 115 229 524 329

Net interest-bearing debt incl. lease liabilities 330 500 693 - -

Cash flows from operating activities 301 301 542 (37) (21)
Average no. of full-time employees 2,680 2,581 2,642 2,575 2,513

Ratios
Operating margin (%) 1.9 1.9 2.2 2.7 2.7
Equity ratio (%) 21.3 20.5 22.8 27.1 30.4
Revenue per average full-time employee (DKK’m) 1.7 1.5 1.4 1.4 1.4
Financial gearing excl. lease liabilities (%) 0.0 0.2 0.4 0.9 0.6

Financial gearing incl. lease liabilities (%)** 0.6 0.9 1.2 - -

*In evaluating the profit, it should Definitions

Operating profit * 100
be considered that the shareholders Operating margin
of the Firm are also its partners and Revenue
that their remuneration is profit-
Equity * 100
related. The remuneration has been Equity ratio
recognised in staff costs. Balance sheet total

** In 2019/20, IFRS 16 Leases was Revenue per average Revenue (DKK’m)

implemented. Comparative figures full-time employee Average no. of full-time employees
for 2018/19 and previous years have
not been restated.
Financial gearing Net interest-bearing debt incl. lease liabilities *

Key figures and ratios are defined excl. lease liabilities Equity
and calculated in accordance with
the CFA Society Denmark’s current Financial gearing Net interest-bearing debt incl. lease liabilities *
version of “Recommendations & incl. lease liabilities Equity
Ratios” as stated below:
*Net interest-bearing debt consist of cash, other investments, and financial liabilities.

56 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Statement by Management
on the annual report
The Board of Directors and the Executive Board have today considered and approved the annual report of
Deloitte Statsautoriseret Revisionspartnerselskab for the financial year 1 June 2021 to 31 May 2022.

The annual report is prepared in accordance with International Financial Reporting Standards as adopted by
the EU and additional Danish disclosure requirements for annual reports of reporting class C (large) enterprises
as governed by the Danish Financial Statements Act.

In our opinion, the consolidated financial statements and the parent financial statements give a true and fair
view of the Group's and the Parent's financial position at 31 May 2022 and of the results of their operations and
cash flows for the financial year 1 June 2021 to 31 May 2022.

We believe that the management commentary contains a fair review of the affairs and conditions referred to
therein.

We recommend the annual report for adoption at the Annual General Meeting.

Copenhagen, 1 September 2022

Executive Board

Anders Vad Dons

Board of Directors

Gustav Jeppesen Therese Kjellberg Michel Denayer

Chairman

Jesper Smedegaard Larsen Lars Kronow Nidha Rizwan

Mette-Katrine Hviid

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 57
STATEMENTS FINANCING
 Annual report FY22

Independent
auditor's report

58 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Independent auditor’s report

To the shareholders of Deloitte Statsautoriseret
Revisionspartnerselskab

Opinion Our opinion on the consolidated financial statements

We have audited the consolidated financial and the parent financial statements does not cover
statements and the parent financial statements of the management commentary, and we do not
Deloitte Statsautoriseret Revisionspartnerselskab express any form of assurance conclusion thereon.
for the financial year 01.06.2021 to 31.05.2022, which
comprise the statement of comprehensive income, In connection with our audit of the consolidated
balance sheet, statement of changes in equity, cash financial statements and the parent financial
flow statement and notes, including a summary of statements, our responsibility is to read the
significant accounting policies, for the Group as well management commentary and, in doing so,
as the Parent. The consolidated financial statements consider whether the management commentary is
and the parent financial statements are prepared in materially inconsistent with the consolidated financial
accordance with International Financial Reporting statements and the parent financial statements or
Standards as adopted by the EU and additional our knowledge obtained in the audit or otherwise
requirements of the Danish Financial Statements Act. appears to be materially misstated.

In our opinion, the consolidated financial statements Moreover, it is our responsibility to consider
and the parent financial statements give a true whether the management commentary provides
and fair view of the Group’s and the Parent’s the information required under the Danish Financial
financial position at 31.05.2022 and of the results Statements Act.
of their operations and cash flows for the financial
year 01.06.2021 to 31.05.2022 in accordance with Based on the work we have performed, we conclude
International Financial Reporting Standards as that the management commentary is in accordance
adopted by the EU and additional requirements of the with the consolidated financial statements and the
Danish Financial Statements Act. parent financial statements and has been prepared
in accordance with the requirements of the Danish
Basis for opinion Financial Statements Act. We did not identify
We conducted our audit in accordance with any material misstatement of the management
International Standards on Auditing (ISAs) and commentary.
additional requirements applicable in Denmark.
Our responsibilities under those standards and Management's responsibilities for the
requirements are further described in the "Auditor’s consolidated financial statements and the
responsibilities for the audit of the financial parent financial statements
statements" section of this auditor’s report. We are Management is responsible for the preparation of
independent of the Entity in accordance with the consolidated financial statements and parent financial
International Ethics Standards Board for Accountants’ statements that give a true and fair view in accordance
International Code of Ethics for Professional with International Financial Reporting Standards as
Accountants (IESBA Code) and the additional adopted by the EU and additional requirements of the
ethical requirements applicable in Denmark, and Danish Financial Statements Act, and for such internal
we have fulfilled our other ethical responsibilities in control as Management determines is necessary
accordance with these requirements and the IESBA to enable the preparation of consolidated financial
Code. We believe that the audit evidence we have statements and parent financial statements that are
obtained is sufficient and appropriate to provide a free from material misstatement, whether due to
basis for our opinion. fraud or error.

Statement on the management commentary In preparing the consolidated financial statements

Management is responsible for the management and the parent financial statements, Management is
commentary. responsible for assessing the Group’s and the Parent’s
ability to continue as a going concern, for disclosing,

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 59
STATEMENTS FINANCING
 Annual report FY22

as applicable, matters related to going concern, and Conclude on the appropriateness of Management’s
• 
for using the going concern basis of accounting in use of the going concern basis of accounting in
preparing the consolidated financial statements and the preparing the consolidated financial statements
parent financial statements unless Management either and the parent financial statements, and, based on
intends to liquidate the Group or the Entity or to cease the audit evidence obtained, whether a material
operations, or has no realistic alternative but to do so. uncertainty exists related to events or conditions
that may cast significant doubt on the Group's
Auditor's responsibilities for the audit of the and the Parent’s ability to continue as a going
consolidated financial statements and the concern. If we conclude that a material uncertainty
parent financial statements exists, we are required to draw attention in our
Our objectives are to obtain reasonable assurance auditor’s report to the related disclosures in the
about whether the consolidated financial statements consolidated financial statements and the parent
and the parent financial statements as a whole are financial statements or, if such disclosures are
free from material misstatement, whether due to inadequate, to modify our opinion. Our conclusions
fraud or error, and to issue an auditor’s report that are based on the audit evidence obtained up to the
includes our opinion. Reasonable assurance is a date of our auditor’s report. However, future events
high level of assurance but is not a guarantee that or conditions may cause the Group and the Entity
an audit conducted in accordance with ISAs and the to cease to continue as a going concern.
additional requirements applicable in Denmark will
always detect a material misstatement when it exists. Evaluate the overall presentation, structure and
• 
Misstatements can arise from fraud or error and are content of the consolidated financial statements
considered material if, individually or in the aggregate, and the parent financial statements, including
they could reasonably be expected to influence the the disclosures in the notes, and whether the
economic decisions of users taken on the basis of these consolidated financial statements and the parent
consolidated financial statements and these parent financial statements represent the underlying
financial statements. transactions and events in a manner that gives a
true and fair view.
As part of an audit conducted in accordance with
ISAs and the additional requirements applicable in Obtain sufficient appropriate audit evidence
• 
Denmark, we exercise professional judgement and regarding the financial information of the entities or
maintain professional scepticism throughout the audit. business activities within the Group to express an
We also: opinion on the consolidated financial statements.
We are responsible for the direction, supervision
• Identify and assess the risks of material misstatement and performance of the group audit. We remain
of the consolidated financial statements and the solely responsible for our audit opinion.
parent financial statements, whether due to fraud
or error, design and perform audit procedures We communicate with those charged with
responsive to those risks, and obtain audit evidence governance regarding, among other matters, the
that is sufficient and appropriate to provide a planned scope and timing of the audit and significant
basis for our opinion. The risk of not detecting a audit findings, including any significant deficiencies in
material misstatement resulting from fraud is higher internal control that we identify during our audit.
than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, Copenhagen, 1 September 2022
misrepresentations, or the override of internal control.
BDO
• Obtain an understanding of internal control relevant Statsautoriseret Revisionspartnerselskab
to the audit in order to design audit procedures Business Registration No. 20 22 26 70
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the Group’s and the Parent’s internal
control.

• Evaluate the appropriateness of accounting policies Ole C. K. Nielsen

used and the reasonableness of accounting estimates State-Authorised Public Accountant
and related disclosures made by Management. MNE no. 23299

60 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Statement of comprehensive
income for 2021/22

Consolidated Parent

2021/22 2020/21 2021/22 2020/21

DKK'm DKK'm DKK'm DKK'm

Revenue (1.1) 4,442.0 3,748.3 4,426.6 3,734.6

Staff costs (1.2) (2,972.7) (2,589.6) (2,958.6) (2,572.2)

External expenses (1.3) (1,244.7) (950.3) (1,244.1) (955.0)
Depreciation and amortisation (1.4) (146.7) (147.3) (146.1) (146.5)
Other operating income (1.5) 5.8 10.6 5.8 10.6
Operating profit 83.7 71.7 83.6 71.5

Income from investments in subsidiaries - - 0.0 0.0

Financial income (3.7) 1.0 0.1 1.0 0.0
Financial expenses (3.8) (20.8) (16.5) (20.7) (16.2)
Profit for the year 63.9 55.3 63.9 55.3

Comprehensive income for the year 63.9 55.3 63.9 55.3

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 61
STATEMENTS FINANCING
 Annual report FY22

Balance sheet at 31.05.2022

Consolidated Parent

2022 DKK'm 2021 DKK'm 2022 DKK'm 2021 DKK'm

Goodwill (2.1) 630.7 586.7 576.8 532.8

Intellectual property rights (2.2) 8.2 23.4 8.2 22.7
Completed development projects (2.2) 52.9 65.2 52.9 65.2
Development projects in progress (2.2) 4.1 1.7 4.1 1.7
Intangible assets 695.9 677.0 642.0 622.4

Right-of-use assets (2.3) 290.3 367.1 290.3 367.1

Leasehold improvements (2.3) 12.5 17.0 12.5 17.0
Operating equipment and fixtures (2.3) 31.0 38.3 31.0 38.3
Property, plant and equipment 333.8 422.4 333.8 422.4

Investments in subsidiaries (2.4) - - 61.8 61.8

Investments in associates (2.4) 12.6 11.7 12.6 11.4
Deposits and other financial assets (2.4) 42.1 43.3 42.1 43.8
Receivables from associates 14.2 10.8 14.2 10.8
Prepayments 21.1 21.1 21.1 21.1
Other non-current assets 90.0 86.9 151.8 148.9

Non-current assets 1,119.7 1,186.3 1,127.6 1,193.7

Trade receivables (2.5) 908.7 894.0 908.7 893.9

Contract assets (2.6) 185.1 248.9 184.7 248.4
Receivables from subsidiaries - - 1.0 0.4
Receivables from associates 16.9 20.9 16.9 20.9
Other receivables 3.4 25.0 1.0 22.7
Prepayments 77.8 83.6 77.7 83.6
Receivables 1,191.9 1,272.4 1,190.0 1,269.9
Cash and bank balances 403.9 341.8 393.2 337.2

Current assets 1,595.8 1,614.2 1,583.2 1,607.1

Assets 2,715.5 2,800.5 2,710.8 2,800.8

62 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Balance sheet at 31.05.2022 (continued)

Consolidated Parent

2022 DKK'm 2021 DKK'm 2022 DKK'm 2021 DKK'm

Share capital (3.1) 42.0 42.0 42.0 42.0

Reserve for equity method - - 0.0 0.0
Reserve for development projects - - 56.8 66.6
Retained earnings 536.3 532.8 479.5 466.2
Equity 578.3 574.8 578.3 574.8

Lease liabilities (3.4) 213.2 296.7 213.2 296.7

Contingent consideration for business
9.6 0.0 9.6 0.0
acquisitions (3.5)
Other financial liabilities (3.5) 290.5 292.9 290.5 292.9
Employee liabilities (2.7) 194.6 191.3 192.4 188.9
Provisions (2.8) 0.3 0.0 0.3 0.0
Non-current liabilities 708.2 780.9 706.0 778.5

Lease liabilities (3.4) 94.3 88.2 94.3 88.2

Contingent consideration for business
4.9 5.6 4.9 5.6
acquisitions (3.5)
Other financial liabilities (3.5) 122.3 159.0 122.3 159.0
Employee liabilities (2.7) 836.3 738.3 834.5 737.2
Contract liabilities (2.6) 94.8 68.2 94.8 68.2
Trade payables (3.5) 148.0 228.6 147.9 228.4
Payables to subsidiaries - - 0.4 3.6
Other liabilities (3.3) 128.4 156.9 127.4 157.3
Current liabilities 1,429.0 1,444.8 1,426.5 1,447.5

Liabilities 2,137.2 2,225.7 2,132.5 2,226.0

Equity and liabilities 2,715.5 2,800.5 2,710.8 2,800.8

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 63
STATEMENTS FINANCING
 Annual report FY22

Consolidated statement of
changes in equity for 2021/22

Share capital Retained earnings Total

DKK'm DKK'm DKK'm

Equity at 31.05.2020 42.0 537.9 579.9

Profit for the year - 55.3 55.3

Comprehensive income for the year - 55.3 55.3

Dividend paid - (60.4) (60.4)

Equity at 31.05.2021 42.0 532.8 574.8

Profit for the year - 63.9 63.9

Comprehensive income for the year - 63.9 63.9

Dividend paid - (60.4) (60.4)

Equity at 31.05.2022 42.0 536.3 578.3

64 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Parent statement of changes

in equity for 2021/22

Share Reserve for Reserve for Retained Total

capital development equity earnings DKK'm
DKK'm projects method DKK'm
DKK'm DKK'm

Equity at 31.05.2020 42.0 68.7 - 469.2 579.9

Profit for the year (restated 0.2) - (2.1) - 57.4 55.3

Comprehensive income for
- (2.1) - 57.4 55.3
the year
Dividend paid - - - (60.4) (60.4)

Restated equity at 31.05.2021 42.0 66.6 - 466.2 574.8

Profit for the year - (9.8) - 73.7 63.9

Comprehensive income for
- (9.8) - 73.7 63.9
the year
Dividend paid - - - (60.4) (60.4)

Equity at 31.05.2022 42.0 56.8 - 479.5 578.3

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 65
STATEMENTS FINANCING
 Annual report FY22

Cash flow statement for 2021/22

Consolidated Parent

2021/22 2020/21 2021/22 2020/21

DKK'm DKK'm DKK'm DKK'm

Operating profit 83.7 71.7 83.6 71.5

Adjustments for non-cash items:

Depreciation and amortisation (1.4) 146.7 147.3 146.1 146.5

Increase/decrease in provisions (2.8) 0.3 (3.0) 0.3 (3.0)

Increase/decrease in long-term employee liabilities (2.7) 3.3 44.9 3.5 43.6
Operating cash flow before working capital changes 234.0 260.9 233.5 258.6

Increase/decrease in short-term employee liabilities 91.5 230.5 90.8 230.3

Increase/decrease in trade payables and other liabilities (109.1) (4.4) (113.6) (3.9)

Increase/decrease in trade receivables and contract assets 75.7 (101.9) 75.5 (102.0)

Increase/decrease in other receivables etc. 28.0 (68.2) 27.6 (67.0

Operating cash flow before financial income and expenses 320.1 316.9 313.8 316.0

Interest income etc. received (3.7) 1.0 0.1 1.0 0.0

Interest expenses etc. paid (3.8) (20.5) (16.4) (20.5) (16.2)

Cash flows from operating activities 300.6 300.6 294.3 299.8

Purchase of intangible assets (2.2) (15.7) (18.4) (15.7) (18.3)

Sale of intangible assets 1.5 0.0 1.5 0.0

Purchase of property, plant and equipment (2.3) (9.6) (24.9) (9.6) (24.2)
Sale of property, plant and equipment 4.8 0.9 4.8 0.0
Acquisition of businesses (4.1) (26.4) 0.0 (26.4) 0.0

Acquisition of subsidiaries and capital increase (4.1) 0.0 0.0 0.0 0.0

Investment in associates (0.9) 0.0 (1.2) 0.0

Investment in other financial assets, net 1.2 1.2 1.7 0.8

Cash flows from investing activities (45.1) (41.2) (44.9) (41.7)

(continues on next page)

66 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Cash flow statement for 2021/22 (continued)

Consolidated Parent

2021/22 2020/21 2021/22 2020/21

DKK'm DKK'm DKK'm DKK'm

Repayment of lease liabilities (88.3) (85.7) (88.3) (85.7)

Draw downs and repayments of financial liabilities (3.3) (44.7) 52.4 (44.7) 52.4

Dividend paid (60.4) (60.4) (60.4) (60.4)

Cash flows from financing activities (193.4) (93.7) (193.4) (93.7)

Increase/decrease in cash and cash equivalents 62.1 165.7 56.0 164.4

Cash and cash equivalents at 01.06.2021 341.8 176.1 337.2 172.8

Cash and cash equivalents at 31.05.2022 (3.6) 403.9 341.8 393.2 337.2

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 67
STATEMENTS FINANCING
 Annual report FY22

Summary of notes
to the financial
statements

68 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

0. Accounting policies in general 3. Capital structure and financing

0.1 § Framework 3.1 Share capital
0.2 § Changes in accounting policies 3.2 § Dividend
0.3 § Basis of accounting 3.3 § Financial liabilities
0.4 § Consolidated financial statements 3.4 § Lease liabilities
0.5 # Significant accounting judgements and estimates 3.5 ! Financial instruments and risks etc.
0.6 § Foreign currency translation 3.6 § Cash and cash equivalents
0.7 § Taxation 3.7 Financial income
0.8 § Standards and Interpretations not yet in force 3.8 Financial expenses
0.9 # Materiality in financial reporting
0.10 Parent financial statements 4. Other notes
4.1 § Acquisition and divestment of businesses
1. Operating profit or loss 4.2 Contingent liabilities etc.
1.1 § # Revenue from contracts with customers 4.3 Fees to the auditor elected at the Annual
1.2 Staff costs General Meeting
1.3 External expenses 4.4 Related parties
1.4 § Depreciation and amortisation 4.5 Authorisation of the annual report for issue
1.5 § # Other operating income 4.6 Events after the balance sheet date

2. Operating assets and liabilities

2.1 § # Goodwill
2.2 § Other intangible assets
2.3 § Property, plant and equipment
2.4 § Other non-current assets
2.5 § Receivables
2.6 § # Contract assets
2.7 § Employee liabilities
2.8 § Provisions

Note disclosures, description of accounting policies and description of significant accounting judgements
and estimates made in preparing the consolidated financial statements are divided into four sections which
outline the various elements of the financial statements, including the individual line items. This division means
that accounting policies, significant accounting judgements and estimates and monetary specifications are
presented together for the individual financial statement items and notes.

For reasons of clarity, descriptions are marked as follows:

Accounting policies

Significant accounting judgements and estimates

RIsks

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 69
STATEMENTS FINANCING
 Annual report FY22

0. Accounting policies in general

0.1 Framework
Deloitte Statsautoriseret Revisionspartnerselskab (“the Company" or “the Parent” and together with its
subsidiaries “the Group or “the Firm”) is a limited partnership company domiciled in Copenhagen, Denmark.

The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)
as adopted by the EU and Danish disclosure requirements for annual reports for reporting class C (large)
enterprises, as required by the Danish Executive Order on IFRS adoption issued in accordance with the Danish
Financial Statements Act.

0.2 Changes in accounting policies

In accordance with recent IFRIC Interpretations, the Company has changed the accounting policy regarding
recognition and measurement of expenses related to configuration and customisation in connection with
software-as-a-service arrangements. So far, all expenses related to configuration and customisation of software
have been capitalised as intangible assets if the criteria in IAS 38, Intangible Assets, were met. In compliance
with the recent IFRIC Interpretations, only expenses related to configuration and customisation of software
where the underlying software is controlled by the Company are capitalised as intangible assets. If expenses
are related to configuration and customisation of software controlled and provided by a third party and the
expenses are related to functionality etc. that cannot be separated from the software offered by the third party,
such expenses are regarded as part of the payments to the software provider and recognised as prepayments
to be expensed over the contract period. All other expenses related to configuration and customisation of
software not controlled by the Company are expensed as incurred.

The change in accounting policy has been applied retrospectively which means that the implementation
is based on the new accounting policy already applied before this financial year, resulting in the following
restatements of comparative figures for FY21:

Before DKK'm Change DKK'm Restated

Depreciation Expenses (148.2) 0.9 (147.3)

External Expenses (949.4) (0.9) (950.3)

Profit for the year 55.3 0.0 55.3

Completed developments projects 98.0 (32.8) 65.2

Prepayments 71.9 32.8 104.7

Assets 2,803.5 0.0 2,803.5

As a consequence of the change, cash outflows of DKK 32.8m have been reclassified from cash flows from
investing activities to cash flows from operating activities in the cash flow statements.

In addition to the above, minor reclassifications have been made in the balance sheet regarding presentation of
receivables and debt to associates and contingent considerations for business acquisitions.

A number of other new and amended Standards and Interpretations have come into force for financial years
beginning on or after 1 June 2021. None of these have had any effect on the consolidated or parent financial
statements.

The accounting policies applied for the consolidated financial statements are unchanged compared to last year

70 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

0.3 Basis of accounting

The consolidated financial statements are presented in Danish kroner, which is the Company’s and its
subsidiaries’ functional currency.

The financial statements are presented using the historical cost convention, except where IFRS specifically
requires the use of fair value, according to the accounting policies described under the individual line items.

0.4 Consolidated financial statements

The consolidated financial statements comprise Deloitte Statsautoriseret Revisionspartnerselskab (Parent) and
the group enterprises (subsidiaries) that are controlled by the Parent.

The Parent controls a subsidiary when the Parent is exposed, or has rights, to variable returns from its
involvement with the subsidiary and has the ability to affect those returns through its control over the
subsidiary. Control is normally obtained if the Parent holds more than 50% of the voting rights in the subsidiary.

Enterprises in which the Firm, directly or indirectly, holds between 20% and 50% of the voting rights and
exercises significant, but not controlling, influence are regarded as associates.

0.5 Significant accounting judgements and estimates

In the process of applying the Firm’s accounting policies, certain judgements have been made by Management.

Furthermore, when recognising and measuring items in the financial statements, it is necessary in certain
circumstances to make estimates, and to make assumptions, about future events. These estimates and
assumptions are based on historical experience and other relevant factors which are considered prudent by
Management in the circumstances, but which are inherently uncertain or unpredictable. Actual results may,
therefore, vary from these estimates and assumptions.

The estimates made and their underlying assumptions are reviewed on an ongoing basis. Changes to
accounting estimates are recognised in the accounting period in which such changes occur and in future
accounting periods if they affect those periods.

In preparing the financial statements, significant judgements have been made for the following:

• Evaluation of principal/agency relationships in terms of revenue recognition and presentation (Note 1.1).

Significant accounting estimates have been made for the following elements:

• Determination of the selling price of contract assets (Notes 1.1 and 2.6)

• Calculation of value-in-use when testing goodwill for impairment (Note 2.1)

• Allowance for expected losses on receivables (Note 2.5)

• Measurement of provisions (Note 2.8)

0.6 Foreign currency translation

On initial recognition, foreign currency transactions are translated at the exchange rate on the transaction
date. Receivables, payables, and other monetary items denominated in foreign currency that have not been
settled at the balance sheet date, are translated using the exchange rate on the balance sheet date. Exchange
differences arising between the transaction date and the payment date, or the balance sheet date, are
recognised in the statement of comprehensive income as financial income or financial expenses.

0.7 Taxation
As limited partnership companies, the Company and its major subsidiaries are not independent taxpayers, as
the liability to pay tax falls on the Firm's equity partners. Therefore, no current tax or deferred tax is recognised
in the consolidated financial statements.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 71
STATEMENTS FINANCING
 Annual report FY22

0.8 Standards and Interpretations not yet in force

At the time when the annual report FY22 was authorised for issue, the IASB and the IFRS Interpretations
Committee have issued a number of new Standards and Interpretations and related amendments, which
will only enter into force for the Firm’s financial years beginning after 31 May 2022. These Standards and
Interpretations have, therefore, not been applied in the preparation of the consolidated financial statements
for the current year.
The new and amended Standards and Interpretations, including IAS 37 regarding onerous contracts, are not
expected to have any significant impact on future consolidated financial statements.

0.9 Materiality in financial reporting

In connection with the preparation of the annual report, Management assesses how the annual report is to
be presented. In this connection, much importance is attached to the content being relevant to the users.

Thus, when presenting the statement of comprehensive income, balance sheet, statement of changes in
equity, and cash flow statement of the consolidated financial statements, it is assessed whether a need exists
to disaggregate financial statement items further or whether it is more appropriate to aggregate amounts
etc. and, in doing so, enhance transparency. When preparing the accompanying notes to the consolidated
financial statements, the focus is on the content being relevant to the users and on the notes being
presented in a clear and informative manner. The assessment, which takes into account the requirements
of Danish law, International Financial Reporting Standards and Interpretations, and with the overarching
objective that the consolidated financial statements as a whole must give a true and fair view, has entailed
that information deemed immaterial by Management has been omitted from the consolidated and parent
financial statements.

0.10 Parent financial statements

The accounting principles applied to the parent financial statements are similar to those applied to the
consolidated financial statements, with the addition of accounting principles for investments in subsidiaries,
refer to Note 2.4.

The Parent’s activities generally account for 99% to 100% of the Group’s activities. Therefore, note
dis-closures are generally identical for the Parent and the Group or with only immaterial deviations between
the Parent’s and the Group’s disclosures.

As a consequence of this, Management has decided to provide note disclosures for the Parent only to
the extent this is deemed to provide additional, relevant information compared to what is provided in
the consolidated financial statements.

72 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

1. Operating profit or loss

1.1 Revenue from contracts with customers
The Firm generates revenue primarily by delivering to customers the types of professional services offered by
the business units of Audit & Assurance, Consulting, Tax & Legal, Risk Advisory, and Financial Advisory. The bulk
of the Firm’s revenue arises from services provided in Denmark.

Each business unit offers a wide range of services and, when delivered to individual customers, these are
almost always distinct in nature. However, the performance obligations tend to be consistent from customer
to customer, and the ones the Firm most commonly satisfies are:

• External audit services

• Technology solution design and implementation

• Strategy and consulting services

• Direct and indirect tax compliance and advisory services

• Legal services

• Business and compliance services

• Corporate finance advisory

• M&A transactions and related services

• Cyber risk services.

The amount of revenue the Firm receives varies both from service to service and from customer to customer,
reflecting the distinct nature of the services the Firm provides, and typically reflecting the skills and experience
of the individuals who provide the services.

The consideration the Firm receives is typically based on one or more of these principal pricing mechanisms:

• Time and materials

• Fixed fee

• Contingent fee.

Most of the Firm’s contractual arrangements with customers comprise a single performance obligation. For
those contractual arrangements that comprise multiple performance obligations, the transaction price is
allocated based on the relative estimated stand-alone selling price of each performance obligation.

The Firm has determined that no significant financing component exists in respect of its professional services
as the period between when the Firm transfers a promised good or service to a customer and when the
customer pays for that good or service will be one year or less.

As a provider of professional services, the Firm is exposed to professional liability claims.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 73
STATEMENTS FINANCING
 Annual report FY22

Accounting policies
Other than for contingent fees which are constrained in accordance with the requirements of IFRS 15, the
Firm has an enforceable right to payment for services rendered and, given the distinct nature of the services
provided, recognises revenue over time as such services are rendered.

The Firm measures progress in satisfying the performance obligations as follows:

• For time and materials arrangements, the Firm recognises revenue based on time charged to date. This
output method approach uses the practical expedient in IFRS 15 with the amount recognised as revenue
reflecting the amount that the Firm has the right to invoice its customers for.

• For fixed fee arrangements, the Firm uses an input method based upon the value of the hours charged to the
engagement to date compared to the total expected inputs. Chargeable time for employees tends to be the
most significant input and this is charged to individual contracts (and performance obligations) via timesheet
reporting. Revenues are recognised as employee time used to provide the services.

• Contingent fees are typically recognised when the contingency is resolved.

Significant accounting judgements and estimates

Evaluation of principal/agency relationships (accounting judgement)
When a revenue transaction involves a third party in providing goods or services to a customer, the Firm must
determine whether the nature of its promise to the customer is to provide the underlying goods or services
itself (i.e., the Firm is the principal in the transaction) or to arrange for the third party, e.g., other Deloitte
member firms to provide the underlying goods or services directly to the customer (i.e., the Firm is the agent
in the transaction). Due to the complexities of some of these arrangements, this determination may require
significant judgement, including an assessment as to whether the Firm controls a specified good or service
before it is transferred to a customer. If this is deemed to be the case, the Firm recognises revenue on a gross
basis – if not, revenue is recognised on a net basis.

Selling price of contract assets (accounting estimate)

Contract assets in the form of contract work in progress are recognised at the amount equal to the
consideration that Management expects the Firm to be entitled to receive for the work carried out at the
balance sheet date.

Estimates are made in measuring progress satisfying the performance obligations and establishing when
contingencies are satisfactorily resolved.

74 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

1.1 Revenue from contracts with customers (continued)

At 31 May 2022, the amount of contract assets recognised at selling price totalled DKK 2,434.9m before
offsetting of amounts invoiced on account (31 May 2021: DKK 2,301.4m).

Consolidated Parent

2021/22 2020/21 2021/22 2020/21

DKK'm DKK'm DKK'm DKK'm

Revenue
Revenue from contracts with customers is broken
down by business unit as follows:

Audit & Assurance 1,407.6 1,326.9 1,407.6 1,319.1

Consulting 1,581.3 1,221.9 1,565.9 1,216.0
Tax & Legal 626.0 548.1 626.0 548.1
Risk Advisory 346.6 283.6 346.6 283.6
Financial Advisory 480.5 367.8 480.5 367.8
4,442.0 3,748.3 4,426.6 3,734.6

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 75
STATEMENTS FINANCING
 Annual report FY22

1.2 Staff costs

Staff costs comprise salaries, bonuses, remuneration and social security expenses etc. for the financial
year for the Firm’s employees and partners, including stay-on fees offered when acquiring businesses.
Staff costs also include the costs in the financial year for jubilee benefits.

Key Management includes the Firm's management team (Executive), incl. the Executive Board.

Consolidated Parent

2021/22 2020/21 2021/22 2020/21

DKK'm DKK'm DKK'm DKK'm

Salaries to employees and remuneration to partners 2,826.7 2,502.0 2,813.3 2,489.9

Long-term employee liabilities, refer to Note 2.7 0.4 0.5 0.4 0.5
Defined contribution plans 29.0 19.1 28.8 18.9
Other social security expenses 22.7 19.9 22.6 19.8
Other staff costs 93.9 48.1 93.5 43.1
2,972.7 2,589.6 2,958.6 2,572.2

No. of average full-time employees 2,680 2,581 2,666 2,566

No. of full-time employees at year-end 3,007 2,636 2,991 2,621

Total remuneration to Key Management incl.

152.8 117.4 152.8 117.4
remuneration to the Executive Board

Remuneration to Key Management consists of remuneration to equity partners on the management team,
including the Executive Board. No specific directors’ fees were paid to members of the Firm’s Board of
Directors. Remuneration to the Executive Board for FY22 and FY21 is not disclosed as remuneration
has been paid to one person only.

1.3 External expenses

External expenses for the financial year comprise costs of administration, premises, training and education,
marketing, loss allowances regarding bad debts, etc. and work carried out by subcontractors where the Firm
is acting as principal in the transaction.

2021/22 2020/21
DKK'm DKK'm

Work carried out by subcontractors, including other Deloitte member firms 674.6 504.2

76 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

1.4 Depreciation, amortisation and write-downs

Accounting policies
Intangible assets are amortised, and items of property, plant and equipment are depreciated, on a straight-line
basis from when the assets are ready for their intended use over their expected useful lives, which are as
follows:

Intellectual property rights 1-10 years

Completed development projects 1-12 years
Right-of-use assets 1-11 years
Leasehold improvements 1-10 years
Operating equipment and fixtures 3-8 years

Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a
straight-line basis. The depreciation starts at the commencement date of the lease.

The maximum depreciation period for leasehold improvements is the agreed lease term.

2021/22 2020/21
DKK'm DKK'm

Depreciation, amortisation and write-downs

Intellectual property rights 7.9 10.6

Completed development projects 21.1 25.0
Right-of-use assets 87.5 89.2
Leasehold improvements 3.2 3.3
Operating equipment and fixtures 13.7 17.8
Profit or loss on sale of non-current assets 6.4 (2.5)
Loss from write-downs of non-current assets 6.9 3.9
146.7 147.3

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 77
STATEMENTS FINANCING
 Annual report FY22

1.5 Other operating income

Accounting policies
Other operating income is used to present income and profit that are secondary to the Firm’s primary activities,
including gains resulting from strategic restructuring decisions in the form of disposal of activities, fair value
adjustments of earn-out obligations, etc.

2021/22 2020/21
DKK'm DKK'm

Profit on disposal of client relationships and activities 5.0 4.2

Fair value adjustments of earn-out obligations 0.8 6.4
5.8 10.6

Fair value adjustments of earn-out obligations relate to adjustments made to deferred contingent consideration
that was recognised in previous years regarding acquisitions of businesses. The adjustments are made due to
changed expectations for future revenue from the acquired businesses.

78 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

2. Operating assets and liabilities

2.1 Goodwill
Accounting policies
On initial recognition, goodwill is recognised and measured as described in Note 4.1, Acquisition and divestment
of businesses.

Goodwill is not amortised but tested annually at financial year-end for impairment, based on a determination of
the recoverable amount for goodwill, see below. The recoverable amount is determined irrespective of whether
any indication of impairment has been identified. If the carrying amount is higher than the recoverable amount
determined, the carrying amount is written down to the recoverable amount.

The recoverable amount is determined as the value-in-use of the cash-generating units to which the amounts
of goodwill are allocated. When determining the value-in-use, estimated future cash flows are discounted to
present value.

Significant accounting estimates

Indication of impairment
The determination of the value-in-use is based on Management's estimates of the expected future cash flows
in each cash-generating unit and the determination of a discount rate. These estimates are subject to some
uncertainty, and changes therein may have a significant effect on the consolidated financial statements in terms
of whether an impairment loss should be recognised and, if applicable, by what amount.

The carrying amount of goodwill is DKK 630.7m at 31 May 2022 (31 May 2021: DKK 586.7m). Neither this
financial year nor last financial year identified any indication of impairment of goodwill.

For more details about the assumptions, discount rates etc. used in determining the value-in-use of the defined
cash-generating units, see the description below.

Consolidated Parent

Cost at 01.06.2020 586.7 532.8

Cost at 31.05.2021 586.7 532.8

Carrying amount at 31.05.2021 586.7 532.8

Cost at 01.06.2021 586.7 532.8

Additions from business combinations 44.0 44.0

Cost at 31.05.2022 630.7 576.8

Carrying amount at 31.05.2022 630.7 576.8

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 79
STATEMENTS FINANCING
 Annual report FY22

2.1 Goodwill (continued)

The carrying amount of goodwill is allocated to the following cash-generating units, corresponding to the Firm's
business units:

Consolidated Parent

2022 DKK'm 2021 DKK'm 2022 DKK'm 2021 DKK'm

Goodwill
Audit & Assurance 383.5 383.5 383.5 383.5
Consulting 180.3 136.3 126.4 82.4
Tax & Legal 18.6 18.6 18.6 18.6
Risk Advisory 47.8 47.8 47.8 47.8
Financial Advisory 0.5 0.5 0.5 0.5
630.7 586.7 576.8 532.8

Determination of recoverable amount

When determining value-in-use for cash-generating units to which goodwill is allocated, the expected future
cash flows have been used that can be derived from management-approved budgets for the coming financial
years, aiming for a normalised growth rate and working capital at the end of the budget period leading into
the terminal period. For accounting periods after the forecast period (terminal period), estimated normalised
cash flows in the last forecast period have been subjected to extrapolation. When calculating the cash flows,
remuneration to equity partners is deducted at an estimated amount based on the average remuneration to
non-equity partners including a percentage add-on based on the difference in average cost rates.

The main uncertainties in determining the value-in-use are related to the determination of discount rates,
growth rates and earnings margins in the budget and forecast periods and in the terminal period.

The discount rates determined reflect the risk-free interest rate at the balance sheet date and the estimated
specific risks associated with the assets and cash flows of each cash-generating unit. The discount rate is
determined on the basis of the assessed Weighted Average Cost of Capital (WACC) for each cash-generating
unit. The pre-tax discount rate applied to Audit & Assurance and Tax & Legal is 11.6% (FY21: 9.2%). For
Consulting, Risk Advisory and Financial Advisory, the discount rates used are 12.5%, 12.4% and 13.0% (FY21:
9.2%, 9.7% and 9.9%), respectively.

The growth rates and earnings margins used are based on Management's expectations for the development
of the respective business units during the budget and forecast periods and the terminal period. These
expectations are based on previous experience, budgets, defined strategic goals, etc.

The terminal period growth rate used is not estimated to exceed the average long-term growth rates for the
markets as a whole. The terminal period growth rate is 1.5% (FY21: 1.5%).

80 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

2.2 Other intangible assets

Accounting policies
Other intangible assets comprise completed and development projects in progress and acquired
intellectual property rights in the form of software rights, client contracts and brands.

Development projects on clearly defined and identifiable systems and processes etc., for which the
technical utilisation rate, sufficient resources and future economic benefits can be established and where
the intention is to complete the project and use the intangible asset, are recognised as intangible assets,
which are amortised over their expected useful lives. Other development costs are recognised as costs in
profit or loss when incurred.

The cost of development projects comprises costs, including salaries and depreciation or amortisation of
assets that are directly attributable to the development projects. Amortisation of completed development
projects commences when the asset is available for its intended use.

Other intangible assets are measured at cost less accumulated amortisation and impairment losses.

Other intangible assets are reviewed annually for any indication of impairment. Development projects in
progress are tested once a year for impairment. If it is not possible to estimate the recoverable amount
of the individual project, the recoverable amount is determined for the cash-generating unit to which
the project belongs. Impairment tests are carried out applying the same policies and assumptions as
described above for goodwill.
(continues on next page)

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 81
STATEMENTS FINANCING
 Annual report FY22

2.2 Other intangible assets (continued)

Intellectual Completed Development

property rights development projects
DKK'm projects in progress
DKK'm DKK'm

Cost at 01.06.2020 89.2 158.0 38.0

Other additions 0.0 0.6 20.9

Transfer 0.0 56.4 (56.4)

Disposals (1.7) (5.9) (0.8)

Cost at 31.05.2021 87.5 209.1 1.7

Amortisation and impairment losses at 01.06.2020 (55.2) (122.6) 0.0

Amortisation for the year (10.6) (25.0) 0.0

Reversal regarding disposals 1.7 3.7 0.0

Amortisation and impairment losses at 31.05.2021 (64.1) (143.9) 0.0

Carrying amount at 31.05.2021 23.4 65.2 1.7

Cost at 01.06.2021 87.5 209.1 1.7

Additions from business combinations 3.4 0.0 0.0

Other additions 0.2 0.0 15.5
Transfer 0.0 11.4 (11.4)
Disposal (19.4) (13.9) (1.7)

Cost at 31.05.2022 71.7 206.6 4.1

Amortisation and impairment losses at 01.06.2021 (64.1) (143.9) 0.0
Amortisation for the year (7.9) (21.1) 0.0

Write-downs (2.5) (2.5) (1.7)

Reversal regarding disposals 11.0 13.8 1.7

Amortisation and impairment losses at 31.05.2022 (63.5) (153.7) 0.0

Carrying amount at 31.05.2022 8.2 52.9 4.1

All other intangible assets are considered to have definite useful lives over which the assets are amortised, refer
to Note 1.4. No indication of impairment is deemed to exist for these assets.

82 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

2.3 Property, plant and equipment

Accounting policies
Right-of-use assets, leasehold improvements, operating equipment and fixtures are measured at cost less
accumulated depreciation and impairment losses.

Cost of leasehold improvements, operating equipment and fixtures comprises the acquisition price, costs
directly related to the acquisition, and costs for preparing the asset up to the date when the asset is ready to be
put into operation.

Cost of right-of-use assets comprises the following:

• The amount of the initial measurement of lease liabilities

• Any lease payments made at or before the commencement date less any lease incentives received

• Any initial direct costs.

The depreciation base is the asset's cost net of its expected residual value after the end of its useful life. Assets
are depreciated on a straight-line basis over their expected useful lives, refer to Note 1.4. It is assessed annually
whether any changes to residual values and depreciation periods should be made.

Items of property, plant and equipment are reviewed annually for any indication of impairment. Impairment
tests are carried out applying the same policies and assumptions as described above for goodwill. Neither this
financial year nor last financial identified any indication of impairment.

Right-of- Leasehold Operating

use assets improvements equipment
DKK’m DKK'm and fixtures
DKK'm
Cost at 01.06.2020 548.4 25.3 131.3

Other additions 6.5 4.6 27.1

Disposals 0.0 (0.5) (27.5)

Cost at 31.05.2021 554.9 29.4 130.9

Depreciation and impairment losses at 01.06.2020 (94.7) (9.6) (97.1)

Depreciation for the year (89.2) (3.3) (17.8)

Write-downs (3.9) 0.0 0.0

Reversal regarding disposals 0.0 0.5 22.3

Depreciation and impairment losses at 31.05.2021 (187.8) (12.4) (92.6)

Carrying amount at 31.05.2021 367.1 17.0 38.3

Cost at 01.06.2021 554.9 29.4 130.9

Additions 10.7 0.9 8.7

Disposals (3.3) (3.3) (4.6)

Cost at 31.05.2022 562.3 27.0 135.0

(continues on next page)

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 83
STATEMENTS FINANCING
 Annual report FY22

2.3 Property, plant and equipment (continued)

Right-of- Leasehold Operating

use assets improvements equipment
DKK’m DKK'm and fixtures
DKK'm
Depreciation and impairment losses at 01.06.2021 (187.8) (12.4) (92.6)

Depreciation for the year (87.5) (3.2) (13.7)

Write-downs 0.0 (0.2) 0.0

Reversal regarding disposals 3.3 1.3 2.3

Depreciation and impairment losses at 31.05.2022 (272.0) (14.5) (104.0)

Carrying amount at 31.05.2022 290.3 12.5 31.0

2.4 Other non-current assets

Accounting policies
Accounting policies §
Other non-current assets include investments in associates, deposits in connection with the inception of lease
contracts, which are repaid when such contracts expire, other non-current receivables and for the parent
financial statements also investments in subsidiaries. As a rule, the deposits are indexed on an annual basis.
The amounts are recognised as collateral given and are measured at cost.

Investments in associates are recognised according to the equity method and in the parent financial
statements, investments in subsidiaries are recognised according to the equity method as well.
This means that investments are measured at the pro rata share of the associates and subsidiaries’ equity value
less unrealised intra-group profits.

The share of the associates and subsidiaries' profits or losses after elimination of unrealised intra-group profits
is recognised in the statement of comprehensive income.

Investments with a negative equity value are measured at zero value, and any receivables from these
enterprises are written down by the Firm’s share of such negative equity value to the extent the receiva-ble is
deemed irrecoverable. If the negative equity value exceeds the amount receivable, the remaining amount is
recognised in provisions if the Firm has a legal or constructive obligation to cover the liabili-ties of the relevant
enterprise and expects to incur a loss due to such obligation.

For the Parent, positive net revaluation of investments in subsidiaries and associates is transferred to reserve
for net revaluation according to the equity method in equity.

The purchase method is applied in the acquisition of investments in associates and subsidiaries; refer to the
description in Note 4.1 to the consolidated financial statements.

84 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

2.4 Other non-current assets (continued)

Parent

Investments in Investments
associates in subsidiaries
DKK’m DKK'm

Cost at 01.06.2020 11.5 70.6

Additions 0.2 0.0
Cost at 31.05.2021 11.7 70.6

Adjustment at 01.06.2020 0.0 (8.8)

Share of profit for the year 0.0 0.0

Adjustment at 31.05.2021 0.0 (8.8)

Carrying amount at 31.05.2021 11.7 61.8

Cost at 01.06.2021 11.7 70.6

Additions 0.9 0.0

Cost at 31.05.2022 12.6 70.6

Adjustment at 01.06.2021 0.0 (8.8)

Share of profit for the year 0.0 0.0

Adjustment at 31.05.2022 0.0 (8.8)

Carrying amount at 31.05.2022 12.6 61.8

Investments in associates
Deloitte Statsautoriseret Revisionspartnerselskab holds 20% of the shares in the associate Deloitte Nordic
A/S and 40% of the shares in the associate Deloitte Nordic Holding ApS, both registered in Copenhagen.
The purpose of these companies is for the Nordic Deloitte member firms to share investments and costs
related to joint investments in activities, business development, and development of market activities. These
companies are therefore not expected to make either profits or losses. The companies are recognised
according to the equity method, and Deloitte Statsautoriseret Revisionspartnerselskab's share of net profit in
these companies amounts to DKK 0.0m for FY22 (FY21: DKK 0.0m). The share of the companies' total equity is
DKK 0.1m (31 May 2021: DKK 0.1m), which has been recognised as investments in associates.

Deloitte Statsautoriseret Revisionspartnerselskab has granted a long-term interestbearing loan to Deloitte

Nordic Holding ApS in the amount of DKK 26.7m which will be repaid at par value when Deloitte Nordic
Holding ApS recovers the underlying investment financed by this loan. The loan is classified as “Fair Value
Through Profit and Loss”. The fair value of the loan is estimated at DKK 14.2m based on the estimated time of
repayment and an associated required return on the investment. The difference between the par value and
the fair value of the loan, DKK 12.5m, is considered a deemed capital contribution to Deloitte Nordic Holding
ApS which is presented as part of the investment in this associate.

Investments in subsidiaries comprise:
• Struensee & Co. Komplementar ApS, Weidekampsgade 6, 2300 Copenhagen, Denmark, 100%
• Struensee & Co. Management Consulting P/S, Weidekampsgade 6, 2300 Copenhagen, Denmark, 100%
• Deloitte PensionManagement Brokers P/S, Weidekampsgade 6, 2300 Copenhagen, Denmark, 100%

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 85
STATEMENTS FINANCING
 Annual report FY22

2.5 Receivables
Accounting policies
Receivables comprise trade receivables and other receivables.

On initial recognition, trade receivables are measured at the transaction price and other receivables at fair
value and subsequently at amortised cost, which usually equals the nominal value less any loss allowance for
bad debts. Loss allowance for trade receivables is recognised at an amount equal to expected lifetime credit
losses (ECL).

Significant accounting estimates

The expected credit losses are estimated using a provision matrix by reference to past default experience of
the debtor, general economic conditions, and an assessment of both the current and the forecast direction of
conditions at the reporting date. Refer also to Note 3.5 for a description of credit risks.

2022 2021
DKK'm DKK'm

Trade receivables 937.7 921.0

Allowance for lifetime expected credit losses (29.0) (27.0)

Net trade receivables 908.7 894.0

Not due for payment 756.1 700.4

Overdue less than 30 days 102.8 112.3

Overdue 31-60 days 19.2 31.2

Overdue 61-90 days 11.5 14.8

Overdue 91-120 days 8.7 27.0

Overdue more than 121 days 39.4 35.3

Trade receivables 937.7 921.0

Loss allowance for trade receivables

Loss allowance at 01.06. 27.0 29.6

Additions 9.5 8.7

Reversals (4.5) (1.5)

Realised (3.0) (9.8)

Loss allowance at 31.05. 29.0 27.0

86 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

2.5 Receivables (continued)

Expected Expected Balance Balance Loss Loss

default rate default rate 2022 2021 allowance allowance
2022 2021 DKK'm DKK'm 2022 2021
% % DKK'm DKK'm

Not due for payment 0.3 0.2 756.1 700.4 2.0 1.5
Overdue less than 30 days 2.2 2.0 102.8 112.3 2.3 2.3
Overdue 31-60 days 4.2 3.9 19.2 31.2 0.8 1.2

Overdue 61-90 days 7.0 7.8 11.5 14.8 0.8 1.1

Overdue 91-120 days 12.6 11.3 8.7 27.0 1.1 3.0

Overdue more than 121 days 55.8 50.7 39.4 35.3 22.0 17.9
Trade receivables 937.7 921.0 29.0 27.0

2.6 Contract assets

Accounting policies
Contract assets are measured at the selling price of the work performed at the balance sheet date, net of
amounts invoiced on account.

For time and materials arrangements, the Firm recognises revenue on the basis of time charged to date. This
output method approach uses the practical expedient in IFRS 15, with the amount recognised as revenue
reflecting the amount that the Firm has the right to invoice its customers for.

For fixed fee arrangements, the Firm uses an input method based upon the value of the hours charged to the
engagement to date compared to the total expected inputs. Chargeable time for employees tends to be the
most significant input, and this is charged to individual contracts (and performance obligations) via timesheet
reporting. Revenues are recognised as employee time is used to provide the services.

Contingent fees are recognised when the contingency is resolved.

Each contract asset is recognised in the balance sheet in receivables or liabilities, depending on whether the
net asset value, calculated as the selling price less amounts invoiced on account, is positive or negative.

Significant accounting judgements and estimates

The selling price of the work carried out at the balance sheet date is determined based on time spent and
Management's assessment of the fee value thereof.
(continues on next page)

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 87
STATEMENTS FINANCING
 Annual report FY22

2.6 Contract assets (continued)

2022 2021
DKK'm DKK'm

Contract assets at selling price 2,434.9 2,301.4

Invoiced on account (2,344.6) (2,120.7)

90.3 180.7

Net value is recognised in the balance sheet as follows:

Contract assets 185.1 248.9
Contract liabilities (94.8) (68.2)

90.3 180.7

Impairment losses and loss allowances on contract assets are considered immaterial.

The table below summarises the key changes in the contract assets and liabilities of the Firm during the year:

Contract Contract Contract Contract

assets liabilities assets liabilities
DKK’m DKK’m DKK’m DKK’m
At 01.06.2020 247.2 45.7 246.5 45.7

Increase/decrease 1.7 22.5 1.9 22.5

At 31.05.2021 248.9 68.2 248.4 68.2

At 01.06.2021 248.9 68.2 248.4 68.2

Increase/decrease (63.8) 26.6 (63.7) 26.6

At 31.05.2022 185.1 94.8 184.7 94.8

The net decrease in contract assets in FY2 reflects our increased focus during the year on timely and regular
invoicing.

Outstanding performance obligations

In all business units apart from Audit & Assurance, both the customer and Deloitte generally have the right
to terminate the contract applying a notice period of up to a maximum of six months. Therefore, as per IFRS
15, contracts in these business units are exempt from the requirement to disclose outstanding performance
obligations, as the expected duration of the current contracts is less than one year.

An analysis of the recognised revenue for previous years shows that only insignificant revenue only an
insignificant portion of a given year’s total revenue relates to contracts which were set up more than one
year before the financial year in question. For this reason, no further disclosure of outstanding performance
obligations is considered necessary.

88 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

2.7 Employee liabilities

Accounting policies
Employee liabilities comprise amounts payable under bonus plans etc., incl. residual payments to partners,
holiday pay obligations, and provisions for jubilee benefits etc.

Provisions for jubilee benefits etc.

It is the Firm’s policy to grant a jubilee benefit on 25-year and 40-year anniversaries of employment with
Deloitte corresponding to 1 and 1½ month’s salary, respectively. Expected future jubilee benefits for the Firm's
partners and employees are recognised based on an actuarial calculation of the present value of expected
jubilee benefits based on the current salary levels, expected future salary increases and time of termination of
service.

Long-term vacation allowance

In 2019, the Danish Holiday Act was amended. As a result, holiday pay earned by the employees from 1
September 2019 to 31 August 2020 is deferred and settled only when the employees retire. The long-term
vacation allowance is measured at the present value of the amount being payable when the employee is
expected to retire. The vacation allowance is presented as a current or a non-current employee liability
depending on the estimated retirement date.

Short-term vacation allowance and other employee liabilities

Short-term vacation allowance represents the amount the Firm expects to pay to the employee when absent
due to vacation. Other short-term employee liabilities consist of payable bonusses, residual payments to
partners, termination benefits, etc.

2022 2021
DKK'm DKK'm

Provisions for jubilee benefits at 01.06. 7.7 7.6

Adjustment for the financial year (recognised as ‘Other staff costs’) 0.6 0.5

Interest expenses (recognised as ‘Other staff costs’) 0.0 0.1

Actuarial (gains)/losses (recognised as ‘Other staff costs’) (0.2) (0.1)

Jubilee benefits paid (0.5) (0.4)

Transfer to short-term jubilee benefits (0.2) 0.0

Provisions for jubilee benefits at 31.05. 7.4 7.7

Long-term vacation allowance 187.2 183.6

Long-term employee liabilities at 31.05. 194.6 191.3

Short-term jubilee benefits 0.2 0.0

Short-term vacation allowance 158.7 155.6

Other short-term employee liabilities 677.4 582.7

Short-term employee liabilities at 31.05. 836.3 738.3

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 89
STATEMENTS FINANCING
 Annual report FY22

2.8 Provisions
Accounting policies
Provisions comprise expected costs in connection with known professional liability claims.

Provisions for professional liability claims are measured as the best estimate of the costs required to settle the
claims on the balance sheet date, based on Management's assessment of the specific circumstances in each case
and after offsetting any insurance cover.

Estimated net costs expected to be incurred more than one year after the balance sheet date are discounted to
present value if this has a material effect on the measurement of the liability.

2022 2021
DKK'm DKK'm

Professional liability claims at 01.06. 0.0 3.0

Used in the financial year 0.0 (2.9)

Reversed in the financial year 0.0 (0.1)

Provisions in the financial year 0.3 0.0

Professional liability claims at 31.05. 0.3 0.0

Provisions at 31.05. 0.3 0.0

The Firm is party to various lawsuits and disputes. The outcome and timing of settlement of professional
liability claims is inherently uncertain but most of the claims are assessed as being closed in full within the next
few years. Fees for legal assistance etc. in handling the claims are recognised when the services are received
and not included in the provision. The liabilities are presented net of any insurance cover, as information about
expected claims etc. is considered to seriously prejudice the position of the Firm.

90 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Capital structure
and financing

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 91
STATEMENTS FINANCING
 Annual report FY22

3. Capital structure and financing

3.1 Share capital

2022 2021
DKK'm DKK'm

The share capital is made up of:

A shares, 105 shares at a nominal value of DKK 0.4m 42.0 42.0

B shares, 20 shares at a nominal value of DKK 0.0m 0.0 0.0

Nominal value at 31.05. 42.0 42.0

No shares carry special rights, except that at the Annual General Meeting, each A share (nominal value of
DKK 0.4m) carries one vote, as does each B share (nominal value of DKK 0.0m). Shareholders of B shares are
not entitled to dividend.

3.2 Dividend
Accounting policies
Dividend is recognised as a liability at the time of declaration at the Annual General Meeting.

For the financial year FY22, the Board of Directors has proposed a dividend of DKK 60.4m (FY21: DKK 60.4m),
equivalent to DKK 0.6m per share (FY21: DKK 0.6m per share), which will be paid to the equity partners after
the Firm's Annual General Meeting on 24 October 2022, provided that the Annual General Meeting adopts the
Board of Directors' proposal. As the dividend is conditional upon adoption by the Annual General Meeting, it
has not been recognised as a liability in the balance sheet at 31 May 2022.

3.3 Financial liabilities

Accounting policies
Financial liabilities comprise debt instruments, payables to credit institutions and other lenders, deferred
consideration for business acquisitions, accounts payable, and other payables.

On initial recognition, financial liabilities are measured at fair value, which usually corresponds to the proceeds
received, less any transaction costs. Subsequently, contingent consideration for business acquisitions is
measured at fair value through profit or loss, while other financial liabilities are measured at amortised cost.

2022 2021
DKK'm DKK'm

VAT, A tax and social security expenses 107.6 88.2

Other expenses payable 20.8 68.7
Other liabilities at 31.05. 128.4 156.9

Other financial liabilities at 01.06., refer to Note 3.5 451.9 383.8

Net borrowings in long-term other financial liabilities (2.4) 70.0
Net borrowings in short-term other financial liabilities (36.7) (1.9)

Other financial liabilities at 31.05., refer to Note 3.5 412.8 451.9

Independent
92 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE
auditor's CASES
report
 Annual report FY22

3.3 Financial liabilities (continued)

2022 2021
DKK'm DKK'm

Contingent consideration for business acquisitions at 01.06., refer to Note 3.5 5.6 21.3
Deferred consideration in long-term 9.6 0.0
Deferred consideration in short-term (0.7) (15.7)

Contingent consideration for business acquisitions at 31.05., refer to Note 3.5 14.5 5.6

3.4 Lease liabilities

Accounting policies
As from 1 June 2019, the Firm has recognised right-of-use assets and corresponding lease liabilities with respect
to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease
term of 12 months or less) and leases of low-value assets. For these leases, the Group recognises the lease
payments as an operating cost on a straight-line basis over the term of the lease.

Lease liabilities are measured at amortised cost and include the net present value of the following lease
payments:

• Fixed payments (including in-substance fixed payments), less any lease incentives receivable

• Variable lease payments that are based on an index or a rate, initially measured using the index or rate at the
commencement date.

Lease payments to be made under reasonably certain extension options are included in the measurement of
the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for the Firm’s leases, the Firm’s incremental borrowing rate (‘IBR’) is
used, being the rate that the Firm would have to pay to borrow the funds necessary to obtain an asset of similar
value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

The Firm is exposed to potential future increases in variable lease payments based on an index or rate that are
not included in the lease liability until they take effect. When such adjustments to lease payments take effect,
the lease liability is reassessed and adjusted against the right-of-use asset.

Lease payments are allocated between principal and finance cost. The finance cost is charged to the statement
of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.

The Firm remeasures the lease liability and makes a corresponding adjustment to the related right-of-use asset,
when (a) the lease term changes; (b) the lease payments change; or (c) a lease contract is modified, and the
lease modification is not accounted for as a separate lease.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 93
STATEMENTS FINANCING
 Annual report FY22

Amounts recognised in the income statement relating to lease contracts:

2022 2021
DKK'm DKK'm

Depreciation and write-downs on right-of-use assets (included in ‘Depreciation and

87.5 93.1
amortisation’)
Interest expenses on lease liabilities (included in ‘Financial expenses’) 4.3 5.3
Costs relating to low-value assets (included in ‘External expenses’) 24.1 17.9

Income from sub-leasing right-of-use assets (included in ‘External expenses’) (3.0) (3.5)

112.9 112.8

The total cash outflow for leases in the year ended 31 May 2022 was DKK 92.5m (FY21: DKK 91.0m).

3.5 Financial instruments and risks etc.

Categories of financial instruments

2022 2021
DKK'm DKK'm

Trade receivables 908.7 894.0

Receivables from associates 31.1 31.7
Other receivables 3.4 25.0

Cash and bank balances 403.9 341.8

Financial assets measured at amortised cost 1,347.1 1,292.5

Lease liabilities 307.5 384.9

Other financial liabilities 412.8 451.9

Trade payables 148.0 228.6

Other liabilities 128.4 156.9

Financial liabilities measured at amortised cost 996.7 1,222.3

Receivables from associates 0.0 0.0

Financial assets measured at fair value through profit or loss 0.0 0.0

Contingent consideration for business acquisitions 14.5 5.6

Financial liabilities measured at fair value through profit or loss 14.5 5.6

The fair value of financial instruments measured at amortised cost is estimated to be equivalent to the carrying
amount.

94 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

3.5 Financial instruments and risks etc. (continued)

Policy for managing financial risks
Management continuously monitors the Firm's financial risks and coordinates its cash management, including
funding. The Firm is not exposed to significant financial risks, see below.

Currency risks
The Firm's sales transactions are mainly conducted in Danish kroner. 7% of total revenue is denominated in
foreign currencies (FY21: 16%), primarily in USD, EUR and GBP.
Services purchased abroad, such as insurance, and services purchased from other Deloitte member firms
primarily take place in USD, EUR and GBP. In the financial year, services purchased in USD totalled DKK 260.0m,
in EUR they totalled DKK 410.0m, and in GBP they totalled DKK 66.6m (FY21: DKK 284.4m in USD, DKK 292.8m
in EUR, and DKK 78.8m in GBP). At the balance sheet date, the Firm has net receivables of DKK 135.3m in USD
FY21: net payable of DKK 5.1m), net receivables of DKK 95.0m in EUR (FY21: net receivables of DKK 76.9m) and
net receivables of DKK 5.7m in GBP (FY21: net payable of DKK 1.8m). All things being equal, earnings and equity
would be affected by DKK 1.6m (FY21: DKK 1.4m), if the USD exchange rate had increased by 10% at the balance
sheet date. If the GBP exchange rate had increased by 10%, it would have an impact on earnings and equity
by DKK 0.1m (FY21: DKK 0.8m). Reasonably possible changes in the EUR exchange rate would only have an
insignificant impact on the Firm’s earnings and equity.

Interest rate risks

As a result of its financing activities, the Firm is exposed to fluctuations in interest rate levels in Denmark. The
interest rate risk has not been hedged. The Firm's net interest-bearing debt at the balance sheet date (excluding
lease liabilities) consists of floating-rate liquid assets (bank deposits) of DKK 403.9m (FY21: DKK 341.8m) and
financial liabilities of DKK 427.3m (FY21: DKK 457.5m). All things being equal, earnings and equity would be
affected by DKK 1.9m (FY21: DKK 1.9m), if the interest rate would increase by 0.5 percentage points.

Credit risks
As a result of its operations, the Firm is exposed to credit risks, which mainly relate to trade receivables, contract
Assets, and bank deposits. The maximum credit risk is consistent with the carrying amount of these items.

The bank deposits, which are placed with well-established credit institutions, are not considered to be subject
to particular credit risk.

Trade receivables and contract assets are monitored on an ongoing basis, including an individual assessment of
the risk of bad debts.

Before write-down, trade receivables amount to DKK 937.7m at 31 May 2022 (31 May 2021: DKK 921.0m). These
receivables have been written down by a total of DKK 29.0m (31 May 2021: DKK 27.0m) to match the expected
lifetime credit loss, refer to Note 2.5. Impairment losses amount to an average of 3.1% of the total receivables
(31 May 2021: 2.9%).

Liquidity risks
The Firm has primarily financed its activities through overdraft facilities with credit institutions with related
undrawn credit facilities and other short-term and long-term financial liabilities.

The Firm's activities are not deemed to involve any particular liquidity risk, and its borrowing and credit facilities
are not subject to special terms or conditions.

The Firm's financial liabilities fall due as specified below, where the amounts reflect the non-discounted nominal
amounts that fall due in accordance with the contracts entered into, including future interest payments
calculated based on current market conditions.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 95
STATEMENTS FINANCING
 Annual report FY22

3.5 Financial instruments and risks etc. (continued)

Because of, for example, seasonal fluctuations in the Firm's activities, its liquidity requirements vary over the
financial year. Allowance is made for these seasonal fluctuations by securing sufficient credit facilities etc. In
addition, the equity partners’ remuneration is profit-related, and the Firm's liquidity requirements to settle this
remuneration is, therefore, dependent on the results realised by the Firm.

Based on the forecast for FY23 and the sensitivity analysis of the impact of COVID-19, the assessment is that
the Firm has sufficient credit facilities available.

Carrying
0-1 years 1-5 years > 5 years Total 31.05 amount 31.05
DKK'm DKK'm DKK'm DKK'm DKK'm
2021

Lease liabilities 92.4 273.5 34.4 400.3 384.9

Contingent consideration for
5.6 0.0 0.0 5.6 5.6
business acquisitions
Other financial liabilities 161.0 279.9 19.1 460.0 451.9

Trade payables 228.6 0.0 0.0 228.6 228.6

Other liabilities 156.9 0.0 0.0 156.9 156.9

Employee liabilities 738.3 11.7 179.6 929.6 929.6

Financial liabilities etc. 1,382.8 565.1 233.1 2,181.0 2,157.5

2022

Lease liabilities 94.3 197.9 22.8 315.0 307.5

Contingent consideration for
4.9 9.6 0.0 14.5 14.5
business acquisitions
Other financial liabilities 123.8 280.6 15.3 419.7 412.8

Trade payables 148.0 0.0 0.0 148.0 148.0

Other liabilities 128.4 0.0 0.0 128.4 128.4

Employee liabilities 836.3 7.3 187.3 1,030.9 1,030.9

Financial liabilities etc. 1,335.7 495.4 225.4 2,056.5 2,042.1

Optimal capital structure

It is the Firm’s policy to distribute earnings on a regular basis, if possible, with due consideration of the need
for consolidation, to its equity partners as profit-related remuneration which is recognised in staff costs in the
financial statements. Management regularly monitors the Firm’s capital structure.

96 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

3.6 Cash and cash equivalents

Accounting policies
The cash flow statement shows cash flows from operating, investing, and financing activities, and cash and cash
equivalents at the beginning and end of the year. Cash flows from operating activities are presented using the
indirect method.

Cash and cash equivalents comprise cash and bank balances.

3.7 Financial expenses

2021/22 2020/21
DKK'm DKK'm

Interest income 1.0 0.1

Financial income 1.0 0.1

3.8 Financial expenses

2021/22 2020/21
DKK'm DKK'm

Interest expenses on lease liabilities 4.3 5.3

Other interest expenses 15.0 10.6
Interest from financial liabilities measured at amortised cost 19.3 15.9
Net foreign currency translation adjustments 1.5 0.6
Financial expenses 20.8 16.5

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 97
STATEMENTS FINANCING
 Annual report FY22

4. Other notes
4.1 Acquisition and divestment of businesses
Accounting policies

Acquisition of businesses
Businesses acquired from third parties are recognised in the financial statements from the time of acquisition,
which is the date when control of the business is actually obtained, and by using the purchase method under
which the newly acquired businesses' identifiable assets, liabilities, and contingent liabilities are measured at
fair value at the acquisition date.

Cost of businesses acquired before 1 June 2010 has been calculated at fair value of the agreed consideration
plus the costs directly attributable to the acquisition of the business.

For businesses acquired on or after 1 June 2010, cost is calculated as the fair value of the agreed consideration,
including any contingent consideration. Costs directly attributable to the acquisition of the business are
recognised in profit or loss as and when incurred.

If the final amount of the consideration agreed is conditional on one or more future events, the consideration
payable is recognised at fair value at the acquisition date. Subsequent changes therein are recognised as
financial income or expenses in profit or loss.

Positive differences between cost of the acquired business and fair value of the acquired assets, liabilities and
contingent liabilities are recognised as goodwill which is allocated to the relevant cash-generating units, which
are consistent with the Firm's business units. This allocation serves as a basis for the subsequent impairment
test, refer to Note 2.1.

Divestment of businesses
Businesses and activities that are divested are recognised in the financial statements until the time of
divestment, which is the date of actual transfer of control of the business.

Profits on the divestment of businesses and activities are calculated as the difference between fair value of
the sales proceeds and carrying amount of net assets in the business at the date of divestment, including
a proportionate share of goodwill associated with the relevant cash-generating unit. Profits or losses are
recognised in profit or loss at the date of divestment.

FY22
With effect from 1 July 2021, Deloitte strengthened its consulting business with the acquisition of assets,
activities, rights, and liabilities in Syncronic ApS, and took a decisive step towards becoming the leading supply
chain consulting firm in the Nordics. The amounts recognised in respect of the identifiable assets acquired and
liabilities assumed are set out in the table below:

98 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

Total DKK'm

Intangible assets 3.4

Employee assurance engagements (6.5)
Total identifiable net assets (3.1)

Goodwill 44.0

Total consideration 40.9

Satisfied by:
Cash 26.4
Deferred and contingent consideration 14.5
Total consideration 40.9

The deferred contingent consideration could be a nominal maximum amount of DKK 15m and a minimum
amount of DKK 0 depending on retention of employees and the achievement of the uplifted gross profit from
the acquired businesses.

Goodwill relates primarily to employee capabilities etc. that could not be recognised as separate assets.

FY21
No acquisition or divestment of businesses has taken place in FY21.

4.2 Contingent liabilities etc.

The Firm is party to various lawsuits and disputes. Provisions have been made for estimated costs related to
settlement of known claims for damages incurred, refer to Note 2.8.

4.3 Fees to the auditor elected at the Annual General Meeting

Consolidated Parent

2021/22 2020/21 2021/22 2020/21

DKK'm DKK'm DKK'm DKK'm

Other external expenses include fees to the Group's

auditor elected at the Annual General Meeting in
the amount of:
Statutory audit 0.5 0.5 0.4 0.4
Other assurance engagements 0.2 0.1 0.2 0.0
0.7 0.6 0.6 0.4

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 99
STATEMENTS FINANCING
 Annual report FY22

4.4 Related parties

Related parties
No party has control of the Firm.

Related party transactions

Remuneration to Key Management is disclosed in Note 1.2.

Key Management has, as equity partners, directly or indirectly received dividend, refer to Note 3.2.

Interest-bearing debt to Key Management at 31 May 2022 amounts to DKK 5.3m (31 May 2021: DKK 5.7m).
The related interest expenses amount to DKK 0.1m for FY22 (FY21: DKK 0.1m).

Receivables from associates at 31 May 2022 total DKK 31.1m (31 May 2021: DKK 31.7m).
The related interest income amounts to DKK 0.9m for FY22 (FY21: DKK 0.4m).

Deloitte General Partner ApS is a general partner of the Firm and has received a payment of DKK 10k for its
general partner liability for the financial year FY22 (FY21: DKK 3k).

4.5 Authorisation of the annual report for issue

The Board of Directors has authorised this annual report for issue at the Board meeting on 1 September 2022.
The annual report will be submitted to the Firm's equity partners for adoption at the Annual General Meeting
on 24 October 2022.

4.6 Events after the balance sheet date

On 1 June 2022, it has been agreed to increase the share capital by a nominal share amount of DKK 3.6m by
way of a cash contribution. 

With effect from 1 July 2022, the Firm acquired the Danish SAP company Framework Digital.
Framework Digital had a revenue of DKK 84.4m in their last calendar year. With the strategic acquisition of the
consultancy company, Deloitte strengthens its position in the Danish SAP market, within project management,
and solutions to support digital transformation.

Total DKK'm

Goodwill 81.6
Order backlog 0.7
Intangible assets 82.3
Operating equipment and fixtures 0.4
Property, plant and equipment 0.4
Investments in group enterprises 9.6
Deposit 0.6
Other non-current assets 10.2
Non-current assets 92.9
Trade receivables 17.9
Other receivables and prepaid expenses 0.2
Receivables 18.1

100 INTRO BUSINESS ENVIRONMENTAL SOCIAL GOVERNANCE CASES

 Annual report FY22

4.6 Events after the balance sheet date (continued)

Total DKK'm

Cash and bank balances 4.7

Current assets 22.8
Assets 115.7
Equity 99.0
Corporate tax payable 0.5
Intercompany balances 0.0
Non-current liabilities 0.5
Trade payables 4.1
Employee liabilities 9.5
Other liabilities 2.4
Current liabilities 16.0
Deferred tax liabilities 0.2
Equity and liabilities 115.7

The initial accounting for the business combination is not complete at the date of the approval of the annual
report.

The deferred contingent consideration could be a nominal maximum amount of DKK 4m and a minimum
amount of DKK 0 depending on retention of employees.

Goodwill relates primarily to employee capabilities etc. that could not be recognised as separate assets.

Apart from this, no events have occurred from the balance sheet date and until the date of issue that would
influence the evaluation of this annual report.

SUMMARY OF CAPITAL
FINANCIAL INDEPENDENT
SPOTLIGHTS
REVIEW 2021/22 AUDITOR'S REPORT NOTES TO THE FINANCIAL STRUCTURE AND 101
STATEMENTS FINANCING
Deloitte offices in Denmark
Esbjerg Odense Aarhus
Dokken 8 Tværkajen 5 City Tower
6700 Esbjerg 5100 Odense C Værkmestergade 2
Phone +45 79 12 84 44 Phone +45 63 14 66 00 8000 Aarhus C
[email protected] [email protected] Phone +45 89 41 41 41
[email protected]
Kolding Silkeborg
Egtved Allé 4 Papirfabrikken 26 Nuuk
6000 Kolding 8600 Silkeborg Imaneq 33, 6th-7th floor
Phone +45 75 53 00 00 Phone +45 89 20 70 00 3900 Nuuk
[email protected] [email protected] Phone +299 32 15 11
[email protected]
Copenhagen Aalborg
Weidekampsgade 6 Østre Havnepromenade 26, 4th floor
2300 Copenhagen S 9000 Aalborg
Phone +45 36 10 20 30 Phone +45 98 79 60 00
[email protected] [email protected]

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global
network of member firms, and their related entities. DTTL (also referred to as “Deloitte
Global”) and each of its member firms are legally separate and independent entities. DTTL
does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte is a leading global provider of audit and assurance, consulting, financial advisory,
risk advisory, tax and related services. Our network of member firms in more than 150
countries and territories serves four out of five Fortune Global 500® companies. Learn how
Deloitte’s approximately 415,000 people make an impact that matters at www.deloitte.com.

This communication contains general information only, and none of Deloitte Touche
Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte
network”) is, by means of this communication, rendering professional advice or services.
Before making any decision or taking any action that may affect your finances or your
business, you should consult a qualified professional adviser. No entity in the Deloitte
network shall be responsible for any loss whatsoever sustained by any person who relies
on this communication.

© 2022. For information, contact Deloitte Touche Tohmatsu Limited