Teglholmsgade 1
24502450 København SV
CVR-nr.: 14773908
Generalforsamling: 21. marts 2024
Dirigent ved generalforsamlingen: Signe Johanne Helbo
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 2
Financial statements
Contents
Management statement 3
Independent auditor’s report 4
Management’s review 6
Financial statements 8
Income statement 8
Statement of comprehensive income 8
Balance sheet 9
Statement of cash flows 10
Statement of changes in equity 11
Notes 12
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 3
Executive Committee
Board of Directors
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 4
s responsibilities
for the financial statements
Independent auditor’s report
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 5
financial statements
• Identify and assess the risks of material mis-
• Obtain an understanding of internal control
• Evaluate the appropriateness of accounting
• Conclude on the appropriateness of Manage-
CVR No. 339635 56
Identification No (MNE) mne32208
Identification No (MNE) mne2334 7
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 6
About TDC Holding
two stand-alone companies, Nuuday and TDC
NET
The Company’s ultimate parent company DKT
comprising:
• DKTUK Limited (50%), managed by
Macquarie Infrastructure and Real Assets
Europe Limited
• Arbejdsmarkedets Tillægspension (ATP)
(16.7%)
• PFA Ophelia InvestCo I 2018 K/S (16.7%),
managed by PFA Asset Management A/S
• PKA Ophelia Holding K/S (16.7%), managed
by AIP Management.
The business
Activities comprise certain facility management
activities and the TDC Pension fund.
TDC Holding is subleasing properties and cars
to Nuuday and TDC NET and properties to exter-
nal parties. TDC Holding have assumed the pen-
sion obligations for the defined benefit plan of
TDC Pension fund, TDC Pensionskasse. Nuuday,
TDC NET and external parties are employing a
number of employees who are members of the
pension fund and are liable to pay wages as well
as certain costs in case of early retirement for
other reasons than age or illness.
Nuuday’s business model produces reliable
high-quality solutions for almost six million cus-
tomers across consumer and business seg-
ments through a strong brand portfolio com-
prising of Denmark’s leading telecommunica-
tions brands. Our brands provide Danish con-
sumers and businesses with high-speed broad-
band and best-in-class mobile connectivity, flex-
ible TV & streaming propositions, and a broad
suite of advanced business solutions, including
cyber-security, unified communications and dig-
ital collaboration.
TDC NET’s business model takes responsibility
for ensuring the continued development and
building of fast mobile and fixed connections
that support Denmark’s continued progress,
because societies with strong infrastructure do
better – both socially and economically. As an
end-to-end infrastructure provider, TDC NET
owns and operates all critical assets necessary
for operating the mobile and land-line networks
in order to service retail service providers.
ments can be downloaded from tdcgroup.com.
Financial review
Profit for the year decreased from DKK 5,268m
in 2022 to DKK 128m in 2023, due primarily to
lower dividends from subsidiaries, partly offset
by lower write-downs of subsidiaries. In 2023
the write-down of subsidiaries was DKK 1,061m
compared to DKK 3,484m in 2022. In 2023 a
reversal of impairment losses on lease assets
DKK 258m has been recognised due to higher
subleasing of properties. No specific uncertain-
ties relating to recognition and measurement
have been identified.
2024 Guidance
2024 guidance assumes no write-downs or divi-
dends from subsidiaries and therefore a profit
for 2024 in line with 2023.
Management’s review
Key figures (DKKm)
2023
2022
2021
2020
2019
Revenue
729
874
1,203
1,354
1,392
Operating profit (EBIT)
449
395
(157)
56
92
Financial income
1,257
9,474
2,399
1,566
-
1)
Financial expenses
(1,353)
(4,222)
(1,387)
(3,381)
-
1
Profit/(loss) for the year
128
5,268
893
(1,716)
-
1)
Total assets
44,122
52,144
64,668
61,127
64,255
Total equity
36,589
40,073
34,409
31,939
33,832
1)
Due to change in accounting policy
in 2021, there are no comparative figures regarding 2019.
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 7
Consolidated Financial Statements
The Company is included in the Group Annual
Report of the ultimate parent company DKT
Holdings ApS.
The Group Annual Report of DKT Holdings ApS
may be obtained at the following address:
DKT Holdings ApS
c/o TDC Holding A/S
Management level
Status 2023
Target
Year for reaching target
Board of Directors
Total number of shareholder elected board members: 6
(2022: 6 members)
4 men / 2 women
(2022: 4 men / 2 women)
67% men / 33 % women
(2022: 67% men / 33% women)
33/67 composition
No target year as gender distribution is
balanced
Other management level
Total number of management: 1
(2022: 1 member)
1 woman / 100 % woman
(2022: 1 woman / 100% woman)
Gender diversity
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 8
Income statement
Statement of comprehensive income
(DKKm)
Note
2023
2022
Profit for the year
Items that may subsequently be reclassified to the
income statement:
Change in fair value adjustments of cash flow hedges
transferred to financial expenses
Items that cannot subsequently be
reclassified to the income statement:
Remeasurement of the defined benefit plan
11
Income tax relating to remeasurement of defined
benefit plan
8
(59 )
(346 )
Other comprehensive income
Total comprehensive income
TDC Holding A/S financial statements
(DKKm)
Note
2023
2022
Revenue
2
External expenses
(306 )
(480 )
Personnel expenses
3
(8 )
Other income
Operating profit before depreciation, amortisation
and special items (EBITDA)
Depreciation, amortisation and impairment losses
4
(93 )
(359 )
Special items
5
(44 )
(51 )
Operating profit (EBIT)
(15 )
Financial income
6
Financial expenses
7
(1,353 )
(4,222 )
Profit/loss before income taxes
Income taxes
8
(88 )
Profit for the year
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 9
Balance sheet
Assets (DKKm)
Note
2023
2022
Non-current assets
Property, plant and equipment
Lease assets
9
Investments in subsidiaries
10
Other investments
Pension assets
11
Other receivables
Total non-current assets
Current assets
Trade and other receivables
Receivables from group companies
Income tax receivables
8
Prepaid expenses
Short-term bonds
Cash
Total current assets
Total assets
Equity and liabilities (DKKm)
Note
2023
2022
Equity
Share capital
13
Other reserves
(6 )
Retained earnings
Total equity
Non-current liabilities
Deferred tax liabilities
8
Provisions
Lease liabilities
Amounts owed to group companies
12
Other payables
Total non-current liabilities
Current liabilities
Current maturity of long-term debt
Lease liabilities
Trade payables
Contract liabilities
Payables to group companies
Other payables
Income tax payables
Provisions
Total current liabilities
Total liabilities
Total equity and liabilities
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 10
Statement of cash flows
(DKKm)
Note
2023
2022
Financing activities
Proceeds from long-term loans from group companies
Repayment of long-term loans
(3,583 )
(17,858 )
Lease payments
(267 )
(253 )
Cost related to long-term loans
Settlement of derivatives related to long-term loans
Change in short-term loans
(565 )
Change in interest bearing receivables and payables
(925 )
Dividends paid
(3,827 )
(876 )
Total cash flow from financing activities
(7,677 )
(18,367 )
Total cash flow
(1,106 )
Cash and cash equivalents at 1 January
Effect of exchange-rate changes on cash and cash equiva-
lents
(1 )
Cash and cash equivalents at 31 December
(DKKm)
Not
e
2023
2022
Operating activities
Operating profit before depreciation, amortisation and special
items (EBITDA)
Adjustment for non-cash items
Pension contributions
Payments related to provisions
(8 )
Special items
(11 )
(15 )
Change in working capital
(15 )
Interest received
Interest paid
(425 )
(943 )
Income tax received/(paid)
(85 )
(204 )
Total cash flow from operating activities
Investing activities
Investment in property, plant and equipment
(52 )
(80 )
Investment in intangible assets
Investment in subsidiaries
(17 )
Investment in short-term bonds
(1,140 )
Divestment of activities
Sale of other non-current assets
Divestment of short-term-bonds
Change in loans to subsidiaries
Dividends received from subsidiaries, joint ventures and asso-
ciates
Total cash flow from investing activities
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 11
Statement of changes in equity
(DKKm)
Share capital
Reserve for
cash flow hedges
Reserve for
capitalised
development
projects
Retained
earnings
Total
Equity at 1 January 2022
(51 )
Profit for the year
(114 )
Change in fair value adjustments of cash flow hedges transferred to financial expenses
Remeasurement effects of defined benefit pension plans
Income tax relating to remeasurement effects of defined benefit pension plans
(346 )
(346 )
Total comprehensive income
(114 )
Distributed dividends
(876 )
(876 )
Total transactions with shareholders
(876 )
(876 )
Equity at 31 December 2022
(6 )
Profit for the year
Change in fair value adjustments of cash flow hedges transferred to financial expenses
Remeasurement effects related to defined benefit pension plans
Income tax relating to remeasurement effects from defined benefit pension plans
(59 )
(59 )
Total comprehensive income
Distributed dividends
(3,827 )
(3,827 )
Total transactions with shareholders
(3,827 )
(3,827 )
Equity at 31 December 2023
1
See also note 12 for an explanation of distributable reserves and dividend.
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 12
Note 1 Accounting policies
The Annual Report for 2023 for TDC Holding
A/S has been prepared in accordance with IFRS
Accounting Standards as issued by the Interna-
tional Accounting Standards Board (IASB) as
adopted by the European Union (EU) and fur-
ther disclosure requirements in the Danish Fi-
nancial Statements Act (reporting class “C
stor”).
The accounting policies are unchanged com-
pared with the policies applied in the Annual Re-
port for 2022.
Recognition and measurement
Assets are recognised in the balance sheet
when it is probable that future economic bene-
fits attributable to the asset will flow to the
company, and the value of the asset can be
measured reliably.
Liabilities are recognised in the balance sheet
when it is probable that future economic bene-
fits will flow out of the company, and the value
of the liability can be measured reliably.
Assets and liabilities are initially measured at
cost. Subsequently, assets and liabilities are
measured as described for each item below.
Foreign currency translation
The functional currency is Danish kroner. The
functional currency is the currency applied in
the primary economic environment where the
company operates. Transactions in currencies
other than the functional currency are transac-
tions in foreign currencies. The financial state-
ments are presented in Danish kroner (DKK).
Transactions in foreign currencies are trans-
lated at the transaction-date exchange rates.
Foreign exchange gains and losses arising from
differences between the transaction-date rates
and the rates at the date of settlement are
recognised as financial income and expenses
in the income statement.
Cash, loans and other amounts receivable or
payable in foreign currencies are translated into
the functional currency at the official exchange
rates quoted at year-end. Currency translation
adjustments are recognised as financial income
and expenses in the income statement.
Investments in subsidiaries
Investments in subsidiaries are measured at
cost. Where cost exceeds the recoverable
amount, the carrying amount is written down to
the recoverable amount.
Dividends received from investments in subsidi-
aries are recognised as income in the financial
year when the dividends are distributed.
Revenue
Revenue comprise rental income from subleas-
ing of properties and cars.
External expenses
External expenses comprise administration
expenses etc.
Special items
Special items are significant amounts that Man-
agement considers are not attributable to nor-
mal operations such as restructuring costs.
Special items also include gains and losses re-
lated to divestment of enterprises, as well as
transaction costs and adjustments of purchase
prices relating to the acquisition of enterprises.
Special items consist of both recurring and non-
recurring items.
Special items are disclosed on the face of the
income statement.
Income taxes
Tax for the year comprises current income tax,
changes in deferred tax and adjustments from
prior years and is recognised in the income state-
ment, except to the extent that it relates to items
recognised in other comprehensive income.
Current income tax liabilities and current income
tax receivables are recognised in the balance
sheet as income tax payable or income tax
receivable.
Deferred tax is measured under the balance -
sheet liability method on the basis of all tempo-
rary differences between the carrying amounts
and the tax bases of assets and liabilities at the
balance sheet date. However, deferred tax is not
recognised if the temporary difference arises
from the initial recognition of goodwill or if it
arises from initial recognition of an asset or liabil-
ity in a transaction other than a business combi-
nation that affects neither accounting nor taxable
profit/loss.
Deferred income tax is provided on temporary
differences arising on investments in subsidiar-
ies, joint ventures and associates, except where
the timing of the reversal of the temporary differ-
ence is controlled by the company and it is prob-
able that the temporary difference will not
reverse in the foreseeable future.
Deferred tax is measured on the basis of the tax
rules and tax rates effective under the legislation
in Denmark at the balance sheet date when the
deferred tax is expected to be realised as current
income tax. Changes in deferred tax as a result of
changes in tax rates are recognised in the income
statement except for the effect of items recog-
nised directly in other comprehensive income.
Notes
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 13
Lease assets and liabilities
Assets and liabilities arising from a lease are in-
itially measured on a present value basis. Lease
liabilities include the net present value of the
following lease payments:
• fixed payments (including in-substance fixed
payments), less any lease incentives receiva-
ble
• variable lease payments that are based on an
index or a rate, initially measured using the
index or rate as at the commencement date
• amounts expected to be payable by TDC
Holding A/S under residual value guarantees
• the exercise price of a purchase option if TDC
Holding is reasonably certain to exercise that
option
• payments of penalties for terminating the
lease, if the lease term reflects TDC Holding
exercising that option.
The lease payments to be made under reasona-
bly certain extension options are also included
in the measurement of liability.
Lease payments are discounted using the inter-
est rate implicit in the lease. If that rate cannot
be readily determined, which is generally the
case for leases in TDC Holding, the lessee’s in-
cremental borrowing rate is used, which is the
rate that the lessee would have to pay to bor-
row the funds necessary to obtain an asset of
similar value to the lease asset in a similar eco-
nomic environment with similar terms, security
and conditions.
The incremental borrowing rates are based on
our existing credit facilities and observable mar-
ket data.
TDC Holding is exposed to potential future in-
creases in variable lease payments based on an
index or rate, which are not included in the lease
liability until they take effect. When adjustments
to lease payments based on an index or rate
take effect, the lease liability is reassessed and
adjusted against the lease asset.
Lease payments are allocated between instal-
ments and financing costs. The financing costs
are charged to the income statement over the
lease period to produce a constant periodic rate
of interest on the remaining balance of the lia-
bility for each period.
Lease assets are measured at cost less accu-
mulated depreciation and write-downs for im-
pairment. Cost comprises the following:
• the amount of the initial measurement of
lease liability
• any lease payments made at or before
the commencement date less any lease
incentives received
• any initial direct costs
• decommissioning costs.
Lease assets are generally depreciated over the
shorter of the asset’s useful life and the lease
term on a straight-line basis. If TDC Holding is
reasonably certain to exercise a purchase op-
tion, the lease asset is depreciated over the un-
derlying asset’s useful life.
Impairment tests on lease assets are per-
formed annually and, if necessary, when circum-
stances indicate their carrying amounts may
not be recoverable. Write-downs of lease assets
related to vacant tenancies are based on expec-
tations concerning timing and scope, future
cost level, etc. The calculation of the write-
downs comprises rent and operating costs for
the contract period minus the expected rental
income from subleases.
Payments associated with short-term leases of
equipment and vehicles and all leases of low-
value assets are expensed as incurred. Short-
term leases are leases with a lease term of
12 months or less. Low-value assets comprise
IT equipment and small items of office furniture
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 14
Pension assets and pension obligations
In a defined benefit plan, TDC Holding is obliged
to pay a specific benefit at the time of retire-
ment. A pension asset or pension obligation
corresponding to the present value of the obli-
gations less the defined pension plans’ assets
at fair value is recognised for these benefit
plans.
The obligations are determined annually by in-
dependent actuaries using the projected unit
credit method assuming that each year of ser-
vice gives rise to an additional unit of benefit
entitlement, and each unit is measured sepa-
rately to build up the final obligations. Estima-
tion of future obligations is based on the com-
pany’s projected future developments in mor-
tality, early retirement, future wages, salaries
and benefit levels, interest rate, etc. The obliga-
tion does not take into account potential distri-
butions of "excess capital" which is under TDC
Holding's control. The defined pension plan as-
sets are estimated at fair value at the balance
sheet date.
Differences between the projected and realised
developments in pension assets and pension
obligations are referred to as remeasurement
effects and are recognised in other comprehen-
sive income when gains and losses occur.
Pension assets are recognised to the extent
that they represent future repayments from the
pension plan.
Pension income/costs from defined benefit
plans comprise the items: service cost, adminis-
trative expenses and interest on pension as-
sets. Service cost and administrative expenses
are recognised in personnel expenses, whereas
interest on pension assets is presented as an
item in financial income and expenses.
Past service costs are recognised as an expense
when a plan amendment or curtailment occurs.
For the defined contribution plans, the TDC
Holding will pay in a fixed periodic contribution
to separate legal entities and will have no fur-
ther obligations after the payment has been
made.
Short-term bonds
Short-term bonds classified as held for trading
are recognised under current assets and meas-
ured at fair value at the balance date. Fair value
adjustments are recognised in the income state-
ment.
Loans
Loans are recognised initially at the proceeds
received net of transaction expenses incurred.
In subsequent periods, loans are measured at
amortised cost so that the difference between
the proceeds and the nominal value is recog-
nised in the income statement over the term of
the loan.
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 15
Note 2 Revenue
In 2023, TDC Holding A/S delivered shared ser-
vices to its subsidiaries of DKK 576m (2022
DKK 769m).
Average number of full-time employee is 0.
The member of the Executive Committee in
TDCH does not receive remuneration.
Note 3 Personnel expenses
(DKKm)
2023
2022
Wages and salaries (including short-term and long-term bonuses)
2
(4)
Pensions:
• defined benefit plans
(50)
(83)
• pensions allocated to subsidiaries
72
79
Total
24
(8)
Note 4 Depreciation, amortisation and impairment losses
(DKKm)
2023
2022
Depreciation of property, plant and equipment
(67)
(62)
Depreciation of lease assets, cf. note 8
(284)
(293)
Impairment losses
-
(4)
Reversal of impairment losses lease assets, cf. note 8
258
-
Total
(93)
(359)
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 16
Note 5 Special items
Profit on sale of enterprises in 2022 relate to
divestment of IT- and other activities to the sub-
sidiaries TDC NET A/S and Nuuday A/S.
Critical accounting judgement
In the company’s income statement, special
items are presented as a separate item. Special
items include income or costs that in Manage-
ment’s judgement shall be disclosed separately
by virtue of their size, nature or incidence. In de-
termining whether an event or transaction is
special, Management considers quantitative as
well as qualitative factors such as the frequency
or predictability of occurrence of the transac-
tion or event,
including whether the event or transaction is
recurring. This is consistent with the way that
financial performance is measured by Manage-
ment and reported to the Board of Directors,
and facilitates meaningful analysis of the com-
pany’s operating results.
(DKKm)
2023
2022
Profit on sale of enterprises
-
38
Costs related to redundancy programmes
7
6
Other restructuring costs, etc.
(3)
-
Distribution of excess capital from TDC Pension Fund to its mem-
bers
(38)
(94)
Cost related to acquisition of enterprises
(10)
-
Loss from rulings
-
(1)
Special items before income taxes
(44)
(51)
Income taxes related to special items
(7)
(24)
Total special items
(51)
(75)
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 17
Note 6 Financial income
(DKKm)
2023
2022
Interest income
12
5
Interest income from group companies
65
624
Interest income
77
629
Currency translation adjustments
1
-
Fair value adjustments
4
-
Interest, currency translation adjustments and fair value ad-
justments
82
629
Interest on pension assets
425
95
Dividends from subsidiaries
750
8,750
Total
1,257
9,474
Note 7 Financial expenses
(DKKm)
2023
2022
Interest expenses
(223)
(538)
Interest expense from group companies
(69)
(70)
Interest expenses
(292)
(608)
Currency translation adjustments
-
(49)
Fair value adjustments
-
(81)
Interest, currency translation adjustments and fair value ad-
justments
(292)
(738)
Write-downs for impairment of subsidiaries
(1,061)
(3,484)
Total
(1,353)
(4,222)
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 18
Note 8 Income taxes
TDC Holding A/S participates in joint taxation
with all its Danish subsidiaries and with DK Tele-
kommunikation ApS, DKT Finance ApS and
DKT Holdings ApS, which is the management
company in the joint taxation.
The jointly taxed companies are jointly and sev-
erally liable for the total income taxes, taxes
paid on account and outstanding residual tax
(with additional payments and interest) relating
to the joint taxation.
2023
2022
Income taxes (DKKm)
Income taxes
cf. the
income
statement
Income tax
payable/
(receivable)
Deferred tax
liabilities/
(assets)
Income taxes
cf. the
income
statement
Income tax
payable/
(receivable)
Deferred tax
liabilities/
(assets)
At 1 January
-
(8)
2,172
(46)
2,099
Income taxes
(134)
110
24
29
242
(271)
Adjustment of tax for previous years
46
(4)
(42)
2
-
(2)
Tax relating to remeasurement effects from the defined benefit plan
-
-
59
-
-
346
Income tax paid
(85)
(204)
Total
(88)
13
2,213
31
(8)
2,172
Income taxes are specified as follows:
Income excluding special items
(81)
55
Special items
(7)
(24)
Total
(88)
31
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 19
Effective tax rate (%)
2023
2022
Danish corporate income tax rate
22.0
22.0
Tax-free dividends from subsidiaries
(63.4)
(58.4)
Write-downs and reversal of write-downs of investments in sub-
sidiaries
89.9
36.5
Other non-taxable income and non-tax-deductible expenses
(0.2)
(0.1)
Adjustment of tax for previous years
(17.8)
0.1
Limitation on the tax deductibility of interest expenses
0.6
(1.8)
Effective tax rate excluding special items
31.1
(1.7)
Special items
9.6
0.7
Effective tax rate including special items
40.7
(1.0)
Deferred tax (DKKm)
2023
2022
Assets held for sale
-
-
Other
(2)
(28)
Current
(2)
(28)
Property, plant and equipment
(90)
(82)
Lease assets and liabilities
(153)
(207)
Pension assets
2,429
2,396
Other
29
93
Non-current
2,215
2,200
Deferred tax at 31 December
2,213
2,172
Note 8 Income taxes (continued)
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 20
Note 9 Lease assets and liabilities
2023
2022
Lease assets (DKKm)
Land and
buildings
Vehicles
and
equipment
Total
Land and
buildings
Vehicles and
equipment
Total
Carrying amount at 1 January
2,416
216
2,632
2,621
172
2,793
Additions
-
67
67
-
140
140
Reversal of impairment losses
258
-
258
-
-
-
Disposals
-
(16)
(16)
-
(8)
(8)
Depreciation
(202)
(82)
(284)
(205)
(88)
(293)
Carrying amount at 31 December
2,472
185
2,657
2,416
216
2,632
Lease liabilities (DKKm)
2023
2022
Recognised in the balance sheet at present value:
Current
403
402
Non-current
2,950
3,170
Total
3,353
3,572
Maturing within 1 year
403
402
Maturing between 1 and 3 years
705
711
Maturing between 3 and 5 years
608
623
Maturing after 5 years
1,637
1,836
Total
3,353
3,572
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 21
The total cash outflow for leases in 2023
was DKK 435m (2022: DKK 428m), of which,
DKK 168m (2022: DKK 175m) related to
interest payments on lease liabilities.
Critical accounting estimates and judgement
Impairment tests of lease assets require man-
agement to make significant estimates related
to vacant tenancies. Management has esti-
mated the expected sublease income net of op-
erating cost. For each category of lease assets
(offices, exchanges, etc.) and in consideration
of the geographical location, the probability of
obtaining income from sublease and expected
sublet rent rates is estimated. The most critical
assumptions used in determining the write-
down relate to the probability of sublease and
expected sublet rent rates that will be impacted
by e.g. changed market conditions for sublet-
ting.
TDC Holding has 193,544 square metres of
leased tenancies no longer used by the Group
(2022: 172,737). Of this, 120,422 square me-
tres were sublet (2022: 124,305). The leases
terminate in 2041 at the latest.
The Group is expected to vacate and sublet ad-
ditional tenancies in the future, following fur-
ther reductions in the number of employees
and upgrading to technical equipment that re-
quires fewer square metres.
Significant judgements are involved when as-
sessing the future capacity needs for leases
and, as such, the use of extension options.
Note 9 Lease assets and liabilities (continued)
Amounts recognised in the statement of profit and
loss (DKKm)
2023
2022
Expense relating to short term leases
(11)
(9)
Income from subleases
466
459
Reversal of impairment losses
258
-
Depreciation charge of lease assets, cf. above
(284)
(293)
Interest expense (included in finance cost)
(168)
(175)
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 22
On 3 February 2022, all shares in TDC NET A/S
were acquired by TDC NET Holding A/S through
a contribution of shares.
The value adjustments of the investments in
subsidiaries are based on impairment tests
performed during 2022 and 2023, respectively.
A sensitivity analysis indicates that a 0.3% in-
crease in weighted average cost of capital
(WACC) during the forecast period as well as
the terminal period will cause an impairment on
TDC NET Holding.
Nuuday is already impaired, so any negative
changes will give a write down for impairment.
In Nuuday A/S, loss for the year amounted to
DKK 421m (2022: loss DKK 190m) and equity
amounted to DKK 6,122m (2022: DKK 6,543m)
In TDC NET Holding A/S, loss for the year
amounted to DKK 364m (2022: profit DKK
1,918m) and equity amounted to DKK 1,867m
(2022: DKK 2,964m)
Note 10 Investments in subsidiaries
(DKKm)
2023
2022
Cost at 1 January
37,168
30,821
Capital injection
18
6,347
Cost at 31 December
37,186
37,168
Value adjustments at 1 January
(7,087)
(3,603)
Write-downs for impairment
(1,061)
(3,484)
Value adjustments at 31 December
(8,148)
(7,087)
Carrying amount at 31 December
29,038
30,081
Overview of subsidiaries at 31 December 2023
Company name
1
Domicile
Currency
Ownership
share (%)
Subsidiaries:
Nuuday A/S
Copenhagen, Denmark
DKK
100
TDC NET Holding A/S
Copenhagen, Denmark
DKK
100
¹ Some minor subsidiaries without activities are not listed separately in the overview.
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 23
Defined benefit plan
Under conditions similar to those provided by
the Danish Civil Servants’ Pension Plan, 524 of
DKTH Group’s employees (2022: 623) were en-
titled to pensions from the pension fund related
to the Group. Of these, 19 (2022: 12) employ-
ees were seconded to external parties in con-
nection with outsourcing tasks or divesting op-
erations. In addition, 7,257 (2022: 7,398)
members of the pension fund receive or are en-
titled to receive pension benefits. The pension
benefits comprise lifelong old-age and disability
pensions as well as certain benefits for spouses
and children. Future pension benefits are based
primarily on years of credited service and on
participants’ compensation at the time of retire-
ment. Since 1990, no new members have
joined the pension fund plans, and the pension
fund is prevented from admitting new members
in the future due to the articles of association.
The pension fund operates defined benefit
plans via a separate legal entity supervised by
the
Danish Financial Supervisory Authority (FSA). In
accordance with existing legislation, articles of
association and the pension regulations, the
Group is required to make contributions to
meet the capital adequacy requirements. When
all pension obligations have been met, the re-
maining funds will be distributed from the pen-
sion fund to DKTH Group.
With effect from 2019, TDC Pension Fund can
under certain circumstances distribute excess
capital to DKTH Group triggering a payment to
members of the pension fund as well. The mem-
bers of the pension fund receive 7.5% of a po-
tential future distribution from TDC Pension
Fund. Pensioners receive the distribution as
part of the current pension payments, while em-
ployees in service receive a supplement to their
future pension benefits. The pension members’
shares of distribution are expensed when in-
curred and recognised in special items. In
2023, TDC’s Pensions Fund distributed DKK
500m (2022: DKK 1,250m), of which DKTH
Group received DKK 437m (2022: DKK
1,156m).
Ordinary monthly contributions to the pension
fund are made corresponding to a percentage
of wages. The ordinary contributions have been
reduced from 1 January 2018. This decision
was made due to the positive funding situation
of the pension fund. Extraordinary contributions
are made in connection with redundancy pro-
grammes and other retirements. Overall, the
risk of additional capital contributions to the
pension fund can be categorised as investment,
longevity and regulatory risks.
Investment risk is managed within risk toler-
ance limits to mitigate excessive risk that could
lead to contributions. The fund invests in a wide
variety of marketable securities (predominantly
fixed-income securities) and the return on the
investments has implications for DKTH Group’s
financial results. Uncompensated risk related to
nominal interest rates and inflation has been
hedged.
In 2011, the Danish FSA introduced the longev-
ity benchmark for statutory purposes, and the
fund’s actuary has since on a yearly basis con-
ducted a detailed longevity statistical analyses
that have generally underpinned the fund’s as-
sumptions regarding observed current longev-
ity. In line with the sector, however, the fund has
increased its provisions for future expected im-
provements to longevity corresponding to the
updated Danish FSA benchmark.
Other risks relating to capital contributions in
excess of the planned ordinary contributions
and extraordinary contributions in connection
with redundancies going forward, relate primar-
ily to future changes to pension regulation and
benefits over which the Group does not have
full control.
The surplus under the Danish FSA pension reg-
ulation amounted to approximately DKK 4.7bn
(2022: DKK 3.6bn). The equity of the pension
fund amounted to approx. DKK 5.6bn (2022:
DKK 4.5bn). The equity differs from the pension
assets recognised in accordance with IFRS due
to specific FSA pension regulation requirements
resulting in a higher pension obligation for reg-
ulatory purposes. The method for determining
the fair value of plan assets is identical under
the two requirements. The pension assets rec-
ognised in accordance with IFRS amounted to ap-
proximately
DKK 11.0bn (2022: 10.9bn).
Note 11 Pension assets and pension obligations
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 24
Note 11 Pension assets and pension obligations (continued)
Assets and obligations (DKKm)
2023
2022
Specification of pension assets
Fair value of plan assets
27,459
27,561
Defined benefit obligation
(16,416)
(16,668)
Pension assets recognised in the balance sheet
11,043
10,893
Change in defined benefit obligation
Defined benefit obligation at 1 January
(16,668)
(23,817)
Service cost
(38)
(73)
Administrative expenses
(12)
(10)
Interest cost on the defined benefit obligation
(645)
(224)
Termination benefits
(5)
(11)
Past service cost – distribution of excess capital
(7)
(19)
Remeasurement effect:
Demographic experience
264
382
Financial assumptions
(410)
6,047
Benefit paid
1,105
1,057
Projected benefit obligations at 31 December
(16,416)
(16,668)
Change in fair value of plan assets
Fair value of plan assets at 1 January
27,561
34,379
Interest income on plan assets
1,071
319
Actual return on plan assets greater/(less) than discount rate
(remeasurement effect)
414
(4,856)
Distribution of excess capital
(493)
(1,231)
TDC’s contribution
11
7
Benefit paid
(1,105)
(1,057)
Fair value of plan assets at 31 December
27,459
27,561
Change in pension assets
Pension assets at 1 January
10,893
10,562
Pension (costs)/income
371
1
Remeasurement effects
268
1,573
Distribution of excess capital
(500)
(1,250)
TDC’s contribution (see also table below)
11
7
Pension assets recognised in the balance sheet at 31 De-
cember
11,043
10,893
Asset allocation by asset categories at 31 December (DKKm)
2023
2022
Assets with quoted prices:
Government and mortgage bonds (incl. hedges and repos)
9,840
8,359
High-yield bonds
4,178
5,142
Investment grade bonds
3,365
2,884
Emerging markets debt
1,927
1,808
Property
2,224
2,437
Equities
1,379
1,166
Cash
153
745
Other
627
629
Assets without quoted prices:
High-yield bonds
804
785
Investment grade bonds
888
1,422
Property
2,074
2,184
Fair value of plan assets
27,459
27,561
Assumptions used to determine defined benefit obligations
(balance sheet) (%)
2023
2022
Discount rate
3.33
3.99
General price/wage inflation
2.19
2.58
Assumptions used to determine
pension (costs)/income (%)
2024
2023
2022
Discount rate
3.33
3.99
0.96
General price/wage inflation
2.19
2.58
2.13
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 25
The basis for determining the discount rate is
the yield of AA-rated euro-denominated corpo-
rate bonds with an average maturity of 11
years, taking into account that the pension lia-
bility is in Danish kroner. For purposes of deter-
mining DKTH Group’s pension costs, the as-
sumed discount rate was 3.99% (0.96% in
2022) and inflation was 2.58% (2.13% in
2022). The assumptions for 2024 reflect a dis-
count rate decrease to 3.33% and a decrease in
the assumed inflation rate to 2.19%.
In 2024, with these changed assumptions, pen-
sion costs from the domestic defined benefit
plan is expected to amount to DKK 323m
(2023: cost of DKK 386m), assuming all other
factors remain unchanged. The Group’s contri-
bution is expected to amount to DKK 11m
(2023: DKK 7m).
The remeasurement effects of DKK 268m in
2023 covered primarily a gain related to the
plan assets (DKK 414m) as the actual return
was higher than the expected return
1
, which
was partly offset by a loss related to the benefit
obligation (DKK 146m) resulting from the de-
creasing discount rate (from 3.99% to 3.33%)
and decreasing inflation rate (from 2.58% to
2.19%).
The remeasurement effects in 2022 of DKK
1,573m in 2022 covered primarily a gain re-
lated to the benefit obligation (DKK 6,429m) re-
sulting from the increasing discount rate (from
0.96% to 3.99%), which was partly offset by the
plan assets (DKK 4,856m) as the actual return
was lower than the expected return
1
and a loss
related to the increasing inflation rate (from
2.13% to 2.58%).
The mortality assumptions are based on yearly
mortality studies. If TDC Pension Funds own ob-
served mortality deviates significantly from the
Danish FSAs benchmark mortality, TDC Pension
Funds own observed mortality is used. Other-
wise, the Danish FSAs benchmark mortality is
used. The studies in 2023 and 2022 showed
that the benchmark mortality should be used
for men and own observed mortality for
women. In addition, the allowance for future im-
provement is in accordance with the Danish
FSAs guidelines. The mortality assumptions
provide the best estimate for the Group’s re-
cent experience plus an allowance for future im-
provement.
The table on the right side shows the estimated
impact of some of the risks to which DKTH
Group is exposed. The Group is also exposed to
fluctuations in the market value of assets. For
some of these risks, if the defined benefit obli-
gation rises or falls, the market value of assets
may move in the opposite direction, thereby
eliminating some part of the risk.
Note 11 Pension assets and pension obligations (continued)
1 In accordance with International Financial Reporting Standards,
the expected return should be assumed to equal the discount
rate as of the end of the previous year.
Pension (costs)/income (DKKm)
Expected
2024
2023
2022
Service costs
(32)
(38)
(73)
Administrative expenses
(14)
(12)
(10)
Personnel expenses (included in EBITDA)
(46)
(50)
(83)
Interest on pension assets
369
426
95
Pension (costs)/income
323
376
12
Domestic redundancy programmes recognised
in special items
(5)
(11)
Members’ part of distribution of excess capital
(38)
(94)
Total pension (costs)/income recognised
in the income statement
333
(93)
Sensitivity analysis (DKKm)
2023
2022
Reported defined benefit obligation
16,416
16,668
Discount rate sensitivity
3.33%
3.99%
Assumption -0.5%
17,334
17,618
Assumption +0.5%
15,576
15,800
General price/wage inflation sensitivity
2.19%
2.58%
Assumption +0.25%
16,892
17,161
Assumption -0.25%
15,959
16,195
Mortality sensitivity
Assumption +1 year longevity
17,089
17,318
Assumption -1 year longevity
15,747
16,019
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 26
Note 12 Receivables from group companies
(DKKm)
2023
2022
Loans to subsidiaries
-
6,456
Receivables
122
336
Total
122
6,792
Recognised as follows:
Non-current assets
-
-
Current assets
122
6,792
Total
122
6,792
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 27
The total authorised number of shares is
812,000,000 with a par value of DKK 1 per
share (unchanged in 2023 and 2022). All is-
sued shares have been fully paid up.
The distributable reserves amounted to DKK
35,777m at 31 December 2023 (2022: DKK
39,267m before proposed dividend).
Dividend payments to DK Telekommunikation
ApS during 2023 amounted to DKK 3,827m
(2022: DKK 876m).
At the Annual General Meeting, the Board of
Directors will not propose any dividend for the
financial year 2023.
Treasury shares
The number of treasury shares amounts to
5,986,790 with a nominal value of DKKm 6 and
representing 0.74% of share capital. (un-
changed in 2023 and 2022)
Intercompany loan
2027
Maturity
Feb 2027
Fixed/floating rate
Fixed
Coupon
4.000%
Currency
EUR
TDC NET
Holding A/S
Nominal value (Currency)
193
Nominal value (DKKm)
1,438
Note 13 Equity
Note 14 Loans
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 28
In 2023 no transactions concerning divestment
of activities has occurred.
In 2022, TDC Holding A/S divested IT- and other
activities to the subsidiaries: TDC NET A/S and
Nuuday A/S, respectively. At the time of divest-
ment, the carrying amount of assets totaled
DKK 139m. The gain on the disposal was DKK
38m, resulting in a net cash inflow of DKK
177m.
TDC Holding has annual contributions paid to
the pension fund, TDC Pensionskasse, see note
9.
TDC Holding has property lease contracts with
Arbejdsmarkedets Tillægspension (ATP) and
PFA, who are shareholders of the company. The
lease payments amounted to DKK 243m (2022:
DKK 235m). The property lease contracts are a
significant part of the lease liabilities.
Transactions and outstanding balances with
subsidiaries (see the overview of subsidiaries in
note 8) are disclosed below.
In addition to income from subsidiaries, the par-
ent company received dividends, as shown in
note 5 to the income statement.
All transactions were made on an arm’s length
basis.
The members of for the Board of Directors and
the Executive Committee do not receive remu-
neration.
DK Telekommunikation ApS, Copenhagen,
owns 100% of the outstanding shares in
TDC Holding A/S.
TDC Holding A/S is included in the Group
Annual Report of the ultimate parent company
DKT Holdings ApS.
The Group Annual Report of DKT Holdings ApS
may be obtained at the following address:
DKT Holdings ApS
c/o TDC Holding A/S
Teglholmsgade 1
DK-2450 Copenhagen SV
Note 15 Divestment of activities
Note 16 Related parties
Name of related party
Nature of
relationship
Domicile
DKTUK Limited, managed by Macquarie Infrastructure and
Real Assets Europe Limited
Ownership
London,
United Kingdom
Arbejdsmarkedets Tillægspension (ATP)
Ownership
Hillerød, Denmark
PFA Ophelia InvestCo I 2018 K/S, managed by PFA Asset
Management A/S
Ownership
Copenhagen, Den-
mark
PKA Ophelia Holding K/S, managed by AIP Management
P/S
Ownership
Hellerup, Denmark
TDC Pensionskasse
Pension fund
Copenhagen, Den-
mark
TDC NET Holding A/S
Subsidiary
Copenhagen, Den-
mark
Nuuday A/S
Subsidiary
Copenhagen, Den-
mark
Subsidiaries (DKKm)
2023
2022
Income
646
1,495
Expenses
(98)
(285)
Receivables
122
6,792
Debt
(1,443)
(2,119)
Guarantees
(42)
(42)
TDC Holding A/S Annual Report 2023 CVR.nr. 14773908 29
TDC Holding A/S has committed to purchase
commitments for the amount of DKK 98m
(2022: DKK 109m) of which DKK 12m falls due
within 1 year, DKK 47m falls due within 2025–
2028 and DKK 39m
after 2028
Note 19 Pledges and
contingencies
Shares in subsidiaries with a carrying amount of
DKK 8,518m (2022: DKK 9,579m) and receiva-
bles from group companies with a carrying
amount of DKK 0m (2022: DKK 2,873m) are
pledged as security for loans in Nuuday A/S.
TDC Holding A/S has provided guarantees for
the amount of DKK 42m (2022: DKK 42m) con-
cerning subsidiaries.
Note 20 Events after the
balance sheet date
There have been no events that materially af-
fect the assessment of this Annual Report 2023
after the balance sheet date and up to today.
Note 17 Fees to auditors elected by
the Annual General Meeting
(DKKm)
2023
2022
Statutory audit
-
1
Other services
2
-
Total non-statutory audit services
2
-
Total
2
1
Note 18 Other financial commitments