Annual Report
17/18

Annual Report 2017/18 | Content

Annual Report 2017/18
Publisher
Deloitte

Content

Photographers
Jakob Carlsen, Esben Zøllner Olesen
Editors
Marketing - Clients & Markets
Stefanie Malika Brandt and Mette Schønneman
Graphic design
Rasmus Christensen
Edition400 copies

Page XX

Page XX

Page XX

04

30

Management commentary.
Living our purpose and our
direction of travel

People impact.
Big leaps towards a morediverse and inclusive workplace

16

38

Client impact.
All hands on deckwith Maersk

Social impact.
UNLEASH-ing an impactthat matters

18

40

Audit & Assurance.
A year of transformation

Social impact.
Small Great Nation

20

50

Consulting.
Digital transformationand global expertise

Client impact.
Using data to strengthenbusiness opportunities at VELUX

28

56

Client impact.
FLSmidth on top of tax compliance

Financial Review.
Another year of growth

Digital Agenda. Page 10

Female Academy. Page 34

Small Great Nation. Page 40

TripleNine. Page 48

2

3

Annual Report 2017/18 | Management commentary

Annual Report 2017/18 | Management commentaryManagement commentary

Living our purpose
By Anders Vad Dons, CEO and partnerIn two years from now, Deloitte willcelebrate its 175th anniversary as a
global brand. Not many companies in thisfast-changing era can say that. The world
outside is becoming more unpredictable
than ever, and new megatrends arise.
Digitalisation and Industry 4.0 are
disrupting our businesses, while opening
new opportunities, business models andpartnerships. With increased regulation,
it is increasingly mportant to run a
responsible business.
Millennials will soon account for the vast
majority of the workplace. They expect
business leaders to take more responsibility
for the world around us and its mostchallenging issues. Millennials also expect
to work for purpose-led companies, thatoffer flexible working conditions and adiverse and inclusive workplace.

“We don’t fail. We learn.
Creating a learning
culture is essential to
our performance andmotivation going forward.”

4

I believe the reason we still exist andcontinue to be market leading is because
we manage to embrace and embark on
paradigm shifts, adapt our business to
new market conditions – and it is because
we continue to drive change, innovateand grow stronger. Our global presence
enables us to build competence centresof excellence; our local presence andexpertise means we can provide targetedvalue to each of our clients. I also believethat our ambition to be the undisputed
leader in professional services is our driving
force, while our 2020 strategy helps us
maintain and strengthen this position.

Looking back at the past year at Deloitte, I
am amazed by what we have achieved. We
have a strong team of passionate people,
committed to making an impact for ourclients, the people we work with and thesociety we live in. We talk about impact
because it is central to our purpose. It
is why we do what we do and how wemeasure ourselves. It is a way to show our
stakeholders the difference we make.
Global range, local impact
The global integration of our firm continues
within our three regions. On 1 June 2016,
the Nordics came together as one Deloitte
member firm. On 1 June 2017, we created
our North West Europe (NWE) firm,combining the Nordic countries with UK,
Switzerland, Belgium and the Netherlands– and in June this year, Ireland joined thefold. Bringing together more than 35,000
people in 10 countries has made us a larger,
stronger firm, and we all benefit from thediversity of our people, their outlooks,
experience and entrepreneurship. By
pooling our ideas and investments, we canoffer our clients more innovative services
that continue to evolve. And we can deliver
more quickly and with impact acrossmarkets. An example is how we brought
together NWE forensic experts and risk
advisory teams to help Maersk recover froma cyber attack that brought the shipping
giant to a halt.
Impact for our clients
Deloitte is the no. 1 audit and advisory firmin Denmark, and we are first and foremost

More than 2700 people go to work every day to make an impact that matters for our clients, each other and the society around us.
We promote a culture of courage with diverse perspectives, which will enable us to innovate and co-create in the future.

here to serve the publictrust. We are constantly
moving from executing ontransactions to building
stronger relationships,
Deloitte is theno. 1 audit andbecoming trusted advisors
advisory firmand offering our clients thein Denmark
best of Deloitte. Globally andlocally. We increasingly go to market as One
Deloitte. The industry focus and strategicclient programmes enable us to win bigger
and more impactful projects and become
better auditors and advisors for ourclients. Our client base today spans large
corporations that operate internationallyto small and medium-sized companies
with enormous growth potential. They
span sectors from energy and resources,

shipping and pharma to industrial andconsumer products. Our strongholds also
include financial services, public sector,
private equity and family businesses. The
diversity of our client portfolio combinedwith our level of expertise is unique.
People impact
In Denmark, more than 230 partners and2,500 people go to work and make a huge
impact for our clients and each other every
day, while developing the market and eachother, challenging the status quo. Deloitte
moved up the ladder to become the No.
3 best place to work in Denmark among
business students in Universum’s ranking.
I am proud to be part of this team, which

continues to place diversity and inclusion
first; which is committed to succeed withthe gender agenda by getting more womenin leadership positions; which provides alearning culture through coaching, where
it is acceptable to fail and where individual
progress comes first. This year, we launched‘Happy Parents’ and ‘Work Agility’ initiatives
to provide greater flexibility for people toaccommodate a better work-life balance.
Social impact
We continue to have social impact asa cornerstone of our existence – bothglobally and locally. In Denmark, a highlight
this year is Small Great Nation – ourambition to analyze and create a discussion
around Denmark’s brand from a long-term
5

Annual Report 2017/18 | Management commentary

Annual Report 2017/18 | Management commentaryperspective. Small Great Nation is basedon a strong collaboration with think tankKraka to enable a fact-based discussion
on Denmark’s strengths, opportunities
and challenges. The first year in, we haveengaged business leaders, political leaders
and ambassadors across the country, andthe interest has been overwhelming.

Nordic financial services hub and a forensic
crime unit.
Risk Advisory continues to grow by leadingwith cyber innovation and services, aswell as helping companies comply withregulatory demands. With the increasing
number of cyber attacks among large
corporations and the public sector, cyberis an area where we continuously workto outsmart the hackers. In general, Risk
Advisory is a part of the business that
continues to build multiple new services athigh pace and with high growth potential.

The Sustainable Development Goals(SDGs) have also become an importantpriority for Deloitte Denmark, as ourclients increasingly look to incorporate
SDGs into their strategies. We launched
the SDG Accelerator with United Nation’s
Development Programme (UNDP) to help
companies incorporate SDGs into new
innovation and partnerships, and wehelped 20 municipalities build SDGs into
policies and new initiatives.
A global initiative,
UNLEASH, took placein Denmark in August
2017, and was the world’s
3rd best place first and most ambitious
to work
innovation workshop thatin Denmark
brought together 1,000
global talents to co-create on solutions
for the Sustainable Development Goals.
As lead innovation partner of UNLEASH,
Deloitte led the innovation process throughour highly skilled professionals and talents,
and in June 2018, we repeated the success –this time in Singapore. From the two events,
350 solutions were developed for the SDGs.
UNLEASH is an initiative that supports
Deloitte’s WorldClass initiative – our global
ambition and commitment to create apositive impact on 50 million futures by2030 through education, skills development
and access to opportunities.
Innovation is at the core of our existence,and together with our global firm, we
continue to invest significantly in new
6

Tax & Legal has also invested in digital
services and alternative delivery models
to keep driving strong growth across allservice lines. Tax & Legal was once again
awarded Tax Firm of the Year as well asTransfer Pricing Firm of the Year and hadstrong wins across sectors.
50 Deloitte facilitators come together to enable one of the most ambitious innovation workshops in the world,bringing 1000 global talents together to co-create on solutions for the Sustainable Development Goals.

technologies, such as blockchain, artificial
intelligence and Internet of Things. We also
launched Deloitte Studio – our very own
creative and digital hub, where we can cocreate and innovate with our clients as well
as showcase new technologies. Innovationis also happening with our global alliancepartners such as Apple, SAP, Salesforce,
Amazon and Adobe. Global and local
alliance partners are a very important partof our eco-system.
Our Audit business has had atransformative year with the launchof DeloitteDirect – a new cloud-based
collaboration platform and audit analytics
tools. Audit & Assurance also received
strong quality approval from the Danish
Business Authority (Erhvervsstyrelsen),at a time where an ambitious audit

11% growthcompared tolast year

transformation took place,and we also secured
significant wins andreappointments acrossindustries.

Our Consulting businesshas had another strong
year and is transforming with high speed,
delivering high growth and winning acrossindustries. The rise was mainly a resultof a growing demand for our business
transformation capabilities, digital solutions
such as cloud and analytics combined witha number of major global client projects.
In Financial Advisory, we had anotherstrong year with focus on growth within
Corporate Finance, Transaction Services
and Valuation as well as expansion with a

Results – with such a strong focus on
client impact, creating the workplace of the
future and making an impact in society, I am
particularly proud of our financial results
this year, which show revenues of DKK 3.4
billion. This is 11% growth compared tolast year – and builds on our consistent
growth rate over the past four years. From
an image perspective, we were awarded
with the strongest image in our industry
according to Berlingske’s annual image
survey.

"We will continue to bebold enough to create"We will continue to be bold enoughcultureof courage,toa
createa cultureof courage,toto drivechangeembracediversity
in ourdriveandchangeandembrace
teams and as a firm. That will enable
diversity in our teams andus to make our clients and each otheras a firm.
Thatwill enablesuccessful
in thefuture."us tomakeAnders
Dons,
Partner our& CEOclients andeach other successful inthe future."
Anders Vad Dons, CEO and partner

At Deloitte, we’re more than auditors,
consultants, financial advisers, analysts or
tax specialists. Every day, we’re building
trust and confidence in the markets,
supporting inclusive growth and developing
skills so our country can thrive. Looking
ahead, it is our ambition to keep driving
change for the market and our clients, topromote a learning culture and to create an
impact in the society around us.

7Annual Report 2017/18 | Digital Agenda

Annual Report 2017/18 | Digital Agenda

Welcoming the digital future

Digital Agenda 2018
Digital Agenda is one of the largest conferences in the Nordics on digital transformation.
It incites new thinking, enhances networking and boosts knowledge within the digitalspace. The aim of this ambitious event is to inspire and share insights, ideas and digital
tools that will make tomorrow better and the future brighter.

Digital Agenda 2018
Welcoming the digital future
Digital Agenda is one of the largest conferences in the Nordics on
digital transformation. It incites new thinking, enhances networking
and boosts knowledge within the digital space. The aim of thisambitious event is to inspire and share insights, ideas and digital toolsthat will make tomorrow better and the future brighter.

89Annual Report 2017/18 | Digital Agenda"For life to remain fit for humans to live we'll
have to fight for non-digital approaches."
Imma Martinez

Annual Report 2017/18 | Digital Agenda"In a balloon, you depend on the speed anddirection of the wind… if you want to moveyour direction, you need to change altitude."
Bertrand Piccard

Digital Agenda 2018
Participant satisfaction

4.3 of 5
Participants

700+
Speakers

32

including Imma Martinez, Bertrand
Piccard and Garry Kasparov10"At the end of the day, there will
always be room for human questions,creativity and leadership."Garry Kasparov11

Annual Report 2017/18 | Financial highlights

Annual Report 2017/18 | Financial highlights

Financial highlights
Revenue
Revenue for the financial year 2017/18 amounts to DKK 3,429m against DKK 3,091m for 2016/17, representing 11%
growth that results primarily from organic growth.

Financial highlights

Financial performance for the year
Profit for the financial year 2017/18 amounts to DKK 87m, which is DKK 1m more than last year. In evaluating
the profit, it should be considered that the shareholders of the Company are also its partners and that theirremuneration is profit-related. This remuneration has been recognised in staff costs.

Revenue

Development in number of employees
At financial year-end, the number of employees was 2,717 compared to 2,741 the previous year. Out of the numberof employees, 232 were partners.
Revenue by business unit
As expected, the development in the composition of business units is that, over a five-year period, Audit will accountfor a declining part of total business as the advisory services market is increasing relatively more.

Deloitte CO2 udledninger 2015 (%)

2017/18

2013/1453%

12

2013/14
DKK'm

3,429

3,091

2,838

2,564

2,326

Operating profit*

92

89

69

66

60

Profit/loss after financial items, net

(4)

(3)

(4)

(2)

(7)

Profit for the year*

86

86

65

64

53

Client receivables and contract work in progress

1,026

852

772

728

647

Equity

547

518

487

475

465

1,809

1,689

1,580

1,428

1,276

Investment in intangible assets

11

9

82

73

11

Investment in tangible assets

11

33

11

38

13

Invested capital, including goodwill

867

778

628

698

492

Net interest bearing liabilities

349

229

115

206

27

2,513

2,553

2,379

2,285

2,140

Net profit ratio (%)

2.7

2.9

2.4

2.6

2.6

Financial gearing

0.6

0.4

0.2

0.4

0.1

Solvency ratio (%)

30.2

30.7

30.8

33.2

36.4

Key figures and key ratios are defined and calculated in accordance with the CFA Society Denmark’s current version
of “Recommendations & Ratios”.

6%

Audit & Assurance

2014/15
DKK'm

Key ratios

38%

7%

2015/16
DKK'm

Average no. of full-time employees

24%

36%

2016/17
DKK'm

Balance sheet total

4%

7%

2017/18
DKK'm

Key figures

13%

12%

Consulting

Elektricitet (xx%)*In assessing the result, it must be taken into account that the shareholders of the Company are also partners in
the Company and that the remuneration of these is dependent on profits. The remuneration is expensed under
Fjernvarme (xx%) staff costs.						Naturgas (xx%)

Flyrejser (xx%)

Tog (xx%)

Deloitte-biler (xx%)

Tax & Legal

Risk Advisory						
Taxa (xx%)
						
						
Medarbejderkørsel (xx%)
Papir (xx%)

Financial Advisory13

Annual Report 2017/18 | S2020

Annual Report 2017/18 | S2020

2020 strategy

Towards undisputed
leadership
Undisputed
market leader

Deloitte’s strategy towards 2020 is founded on our aspiration to be undisputed market leader withinprofessional services. This aspiration reflects our purpose to make an impact on everything that matters to ourclients, people and the societies we live in. This means we are committed to doing everything within our power
to make our clients and each other successful. Our strategy is designed to respond to megatrends arounddigitalisation, workforce of the future and competitive landscape.
The strategy builds on the following principles:

In a league of our own
We provide world-class solutions
across industries.

Running a responsible businessOur code of conduct and ethicalprinciples are non-negotiable.

Sharing knowledge and co-creating
We leverage global knowledge andinnovation as well as local relationships.
We focus on collaboration, knowledge
sharing and new partnerships and alliances tobuild a strong eco-system.

Colleagues for life
We play to win through passion, strong teameffort as well as creating a learning experience
for life, so the time with Deloitte is truly unique.

14

Undisputed
market leader

The 2020 strategy was laid out in 2014 and involves four transitions that
ensure we offer the best of Deloitte to our clients. Already ahead of the plan,here is the status on the four strategy pillars:

3
1 2
4

From biggest
to bestTransform
industries

Integrated
solutions

Playing
to win

We continue to invest
in transforming existing
businesses and create
new service areas, so we
can offer our clients themost innovative solutions.
New partnerships andalliances - as well as audit
transformation, cyber,robotics, blockchain and a
new creative innovation hub- have emerged this year.

A stronger global integrationand focus on innovationmeans we have the bestindustry experts in themarket. Our industry
focus provides a uniqueunderstanding of our clients’business and the markets
they operate in, so we are
better positioned to helptransform their businesses.

We go to market as One
Deloitte – with more
integrated and holistic
solutions that meet ourclients’ challenges andneeds, rather than providing
stand-alone solutions. We
move from transactionbased solutions to long-termtransformation.

Deloitte’s scarcest resource
is our people, and we have aparticular focus on creatinga strong learning experience,
winning culture and teamspirit. A culture of couragethat promotes diversityof thought, gender andbackground combined withleading performance is how
we release the potential of
our people.

Three years into our 2020 strategy, we are ahead of the plan.
The financial performance is more than a year ahead despite
big investments in new services by our five businesses. We
have accelerated the global integration of Deloitte and are
now part of North West Europe and Nordics. Strategic client
relationship programs and a focus on being best within
industries and market segments show strong growth.

We continue to have the best image in our profession and are
the 3rd most attractive workplace among business students.
We have created strong talent, leadership and diversity
programs, but are behind plan in developing female leadersand partners. We changed our footprint in Denmark from21 to eight offices to build stronger talent environments anddeliver high client service.

15

Annual Report 2017/18 | Client impact

Client impact: Maersk

All hands on deck
On 27 June last year, A.P. Moller Maersk's screens went
black. A global cyber attack had infected their network
across ports and offices in over 120 countries. Laptops
stopped working, and the world's largest shipping
distribution company came to a halt.
The cyber attack that hit the container business was
initiated by a previously unseen type of malware that
destroyed all of Maersk’s Windows compute capability,
stopping most operations around the world.
When Maersk called us for support, we were able toscramble a top team to be on the ground within hours.
Over the coming days and weeks this team grew to over
130 professionals working in shifts 24/7 as a unitedMaersk/Deloitte team to restore systems and get theorganisation back up and running.
A global effort
While we worked with Maersk’s IT team to restore theirsystems, we also focused on reverse engineering thevirus. We provided security intelligence within hours of
being on site, giving critical insights on how to stop thevirus from reinfecting and thus stopping any recovery
effort. Our support helped ensure Maersk’s network
was protected against a similar virus attack and enabled
recovery of business service operations. There wasalso a joint UK, Dutch and India team providing security
validation for all new server builds, processing over
1,200 servers across the globe in ten days.
Dan McMillan, one of the first Deloitte team memberson the ground, said: “The most important things to doin such a situation are to first understand what you’redealing with, and second, to call for the right kind of
help. Maersk did both. They handled the situation
professionally from day one.”
Getting ships on the move
We combined Maersk’s IT team with a diverse
Deloitte team that comprised skills in crisis response,cybersecurity, dark web, large-scale infrastructuredelivery, risk advisory, consulting, forensics and financial
services across the world to restore control of Maersk’s
central IT systems.
In five weeks we had successfully supported Maersk
in rebuilding its core IT capability, including 60,000+
laptop builds, a global upgrade to Windows 10,
reconstruction of their server infrastructure, access toworld class security monitoring, and restarting theworld's most automated terminal in nine days.
Importantly, Maersk had their ships – and world trade –moving again.

“So many people within and outside our organisation helped in this recovery, andDeloitte made a visible impact in a very short space of time. Rather than simply
supplying a service, Deloitte worked with our people to solve the problem andhelped us to improve what we do. No company is immune to a cyber attack andwe’re now building a more secure and reliable infrastructure that can support the
future growth of Maersk.”
Adam Banks, Chief Information Officer, Maersk

16

Photo: Maersk

Annual Report 2017/18 | Audit & Assurance

Annual Report 2017/18 | Audit & Assurance

Audit & Assurance

45

Audit & Assurance

AdministrationM

any drivers are affecting the audit businesslandscape today. Digitalisation and automationof our services, increasing expectations toquality from regulators and investors, and continuous
globalisation, which forces the audit industry to work
even more seamlessly across borders and brings inintense competition. All these drivers call for a strategic
and innovative response, which is why 2017/18 was allabout starting the multiyear transformation journey of
our Audit & Assurance practice.
As anticipated and due to disposals last year, revenues
in Audit & Assurance have been flat this year, andwe continue to retain our market position as one of
Denmark’s leading auditing businesses.
To address the external drivers, we have continued toinvest heavily in quality and technology to accelerate
the transformation of our business in order to meetthe increased expectations from regulators and clients.
Our ambition is to serve our existing clients in a smarter
way and leverage new technologies to achieve greater
consistency and more standardisation. In 2017/18, we
introduced DeloitteDirect – a cloud-based collaboration
platform for clients to store files and provide a complete
overview of their finances via user-friendly dashboards
integrated with their ERP system.

We have also invested in developing an innovative
system for financial reporting in which we incorporate
new technologies such as machine learning andcognitive intelligence. This will streamline processes andreinvent the way we do financial statements. Finally,
we have developed new audit analytic tools, which willplay a central role in the future of audit. The analytic
tools provide valuable insights to the audit teams andgive our clients important insights about their business,to help them focus on top priorities and make better
decisions.
Quality will always be the essence of our business.
And quality is not only a matter of investing in theright technology and processes – it is primarily about
investing in the development of our culture and people.
In Audit & Assurance, we develop auditors for today
and for the future, building advanced skills and criticalthinking. In 2017/18, we launched the ChangeMaker
programme – an audit graduate programme
empowering people to challenge and change our own
business. The programme brings our people quickly
up to speed, so that they can accelerate their careerin Deloitte and make an impact that matters from day
one. ChangeMaker also strengthens the culture ofinnovation and integrity.

52

Partners

213

A year of transformation

102

Directors

55

Analysts

SeniorManagers

109

1,115

Managers

people are working in
Audit & Assurance

58

AssistantManagers

236

Consultants

245

SeniorConsultants

Average age

Gender distribution

58.5%
41.5%

Revenue0%*0

2017/18
300

600

900

1200

1500

* After adjustment of disposals last year

18

19Annual Report 2017/18 | Consulting

Annual Report 2017/18 | Consulting

Consulting

9

41

58

Administration

Analysts

Partners

Consulting

32

Digital transformation andglobal expertiseC

onsulting generated an extraordinary result for
2017/18 with an increase in revenue of 37%.
The increase was across the public as well as
the private sector and was mainly a result of a growing
demand for our business transformation capabilities,
and digital solutions combined with a number of major
global client projects.
To help position our clients better for future growth,
Consulting has made further investments in developing
our capabilities within emerging business disruptors,
including automation, blockchain, artificial intelligenceand robotics. Our investments in new technologies
continue, ensuring that we are capable of helping
our clients with their most complex transformational
challenges.
In 2017/18, we also strengthened the collaboration with
our strategic partners - some of the world’s leading
technology and service companies to deliver innovative
solutions for our clients. Partnerships that enable ourclients to rapidly adopt and leverage the potential of
digital solutions. The next wave of SAP S/4HANA isdeveloping rapidly along with e-commerce and HR
solutions, such as Hybris, Adobe, SAP, Successfactors
and Workday. We will continue to create, use and growrelationships with leading digital brands.
Digital transformation now accounts for the vast
proportion of the work conducted in Consulting,positively affecting our strategy services in Monitor
Deloitte, which help our clients establish clear andcoherent strategies. Monitor Deloitte is now in astronger position than ever, as the digital agenda has

become a C-level priority. A number of important wins
made 2017/18 a successful year in Monitor Deloitte,auguring well for FY19.

To succeed in helping our clients with their mostcomplex business issues, we need people with different
skillsets and mindsets . The common denominatoris their ability to think business and innovation while
deploying technology. Our success as a high-performing
organisation is dependent on our ability to attract andretain our people through continuous development anda strong focus on leadership. Our people are our top
priority and we do everything in our power to create a
flexible and agile workplace with a high level of diversity,
inclusion and openness.

705

119
Managers

236

Consultants

145

Senior Consultants

Average age

Gender distribution

66%
34%

Revenue

37%

0

20

Senior Managers

people are working
in Consulting

In June 2018, we acquired Struensee & Co., a high-end
strategy firm focusing on the public sector. Together,
we now operate a leading strategy practice at scale andacross industries.
Deloitte Digital also gained traction in 2017/18, as we
opened the doors to our new premises, Deloitte Studioin December. The workspace is designed to spark
creativity, idea generation and co-creation between
clients and client teams, and bears a resemblance tothe environments in digital agencies. The intention
is to create a workplace that appeals to the diverse
profiles we employ in Deloitte Digital, including digitaldevelopers, engineers, designers and other creatives.
Furthermore, we want to be able to offer our clients a
different and distinct experience.

65

Directors

2017/18
300

600

900

1200

1500

21

Annual Report 2017/18 | Tax & Legal

Annual Report 2017/18 | Tax & Legal

Tax & Legal

11

Tax & Legal

Strong results andprestigious awardTax & Legal delivered strong results in 2017/18
with an increase in revenue of 6% – a resultof great activity in the market, new wins and anumber of macroeconomic events boosting demand fortax advisory services.
Our clients are facing unprecedented levels of
uncertainty and regulatory change along with newtechnologies disrupting their business environment. In
addition, clients are concerned with the implicationsof Brexit and the escalating U.S. trade tariffs. In Tax& Legal, we guide clients through uncertainty by
combining tax advisory services with pioneering
technology.
Over the past year, we have further strengthened our
global processes and workflows with new digital tools.
For instance, myInsight – a Tax & Legal digital platform –is reinventing the way we work globally with our clientsand people. It is a secure platform providing clients andthe client team with integrated access to applications,task management and real-time insights and status
updates. myInsight has helped us build stronger
relationships with clients and colleagues around theworld, and given us a competitive edge by having morecomponents of our service delivery model digitallyconnected and consistently delivered across member
firms.

33

Administration

Our investments in innovation and digitalisation
did not go unnoticed: In 2017/18, Deloitte Denmark
was awarded Tax Firm of the Year 2018 and National
Transfer Pricing Firm of the Year at the 2018 ITREuropean Tax Awards. We appreciate the recognition,
which indicates that the market views us as a leading
tax and legal advisor.
In the past year, we have also welcomed many new
people. We acknowledge that talent attraction andretention is key to our continued success. Attracting
talents with the right combination of technical, legal
and management skills can be particularly challenging,which is why we now take a different approach to talentattraction. We offer students opportunities to put theirknowledge into practical use by writing their thesis with
us while working on tax and legal projects at Deloitte. In
addition to a salary, they also gain access to informationand guidance, and will hopefully proceed with theircareer in Deloitte upon graduation, if the match is right.

Partners

41

Analysts

26

Directors

271

people are working
in Tax & Legal

43

Senior Managers

47

Consultants

35

35

Managers

Senior Consultants

Average age

Gender distribution

52%

48%

Revenue6%0

22

2017/18
100

200

300

400

500

23

Annual Report 2017/18 | Financial Advisory

Annual Report 2017/18 | Financial Advisory

Financial Advisory212

Administration

Partners

Financial Advisory

New Nordic forensics andfinancial crime businessF

inancial Advisory delivered a strong performancein 2017/18 with an 11% revenue increase. The
increase is based on high market demand,
especially in the financial markets, and despite costs
related to new investments, including a new business
offering and more people.
In 2017/18, we consolidated the forensic and financial
crime activities in Financial Advisory on a Nordic level.
Historically, these activities have been divided acrossdifferent business units in the Nordics. By unifying
them in Financial Advisory, we get to strengthen ourofferings, and thus put ourselves in a better position
to become the undisputed market leader. We expect
the market for forensic services to grow significantly inthe years to come due to strict regulatory compliance,
more sophisticated cyber crime activities, and rising
security concerns. Focus will be on the financial
services industry in particular, including banks, fintech
businesses and insurance companies.

Concentrating forensic and financial crime in Financial
Advisory was an obvious choice as the skillsets needed
to manage these tasks have always been present in
Financial Advisory, such as our ability to work withadvanced analytics and due diligence. However, we
will continuously develop our people and recruit moretalents with strong statistical, numerical and technicalcompetencies going forward.
Our people are our strongest asset, and talentmanagement is a top priority in Financial Advisory.
Therefore, we have onboarded three new high profile
partners to drive the business forward with particularfocus on Mergers and Acquisitions, the new financial
crime unit and financial advisory in general.
We are also committed to establishing an inclusive,
flexible and global culture in which our people
feel connected, committed and engaged. Our flatorganisation structure with small teams makes it
possible for leaders to take an individual approach toperformance consulting and give regular feedback. We
will soon implement a leading performance approachand take further action to make Financial Advisory
more attractive for females as we tap into the diversity
programmes initiated in Deloitte.

18

15

Analysts

Directors

105

people are working
in Financial Advisory5

SeniorManagers

5

35Managers

Consultants

13

AssistantManagers

Average age

Gender distribution

83%

17%

Revenue

11%0

2017/18
50

100

150

200

250

24

25
0

300

600

900

1200

1500

Annual Report 2017/18 | Risk Advisory

Annual Report 2017/18 | Risk Advisory

2

Risk Advisory8

16

Analysts

Risk Advisory

Increasing demand for IT
security drives growthI

Administration

nternational cyber attacks, new technology
advancements and a more complex regulatoryenvironment are all factors contributing to ourincreased market footprint. These areas have opened
up new market opportunities for Risk Advisory, andthe demand and usage of tech-driven and innovative
solutions have helped bring down costs, thereby
contributing to the significant growth in 2017/18.

In response to current market trends, Risk Advisoryhas, among many other solutions, launched DPO (Data
Protection Officer) services, where we assist clients inmatters concerning GDPR, data and privacy protection.
Within the financial services industry, we are ramping
up with more RegTech and FinTech solutions, as we
expect the demand for such solutions to increase in thenear future.

With a 40% growth in Cyber and an overall growth of
7% in Risk Advisory, we can look back at a positive andbusy year. Hardly a day goes by without a cyber-related
incident hitting the headlines, which is a good indicatorof the extent of the current market demand for cybersecurity. Cyber represents huge potential going forward,
which is why we have scaled up significantly. Four years
ago, twelve people ran our Cyber division, and today
more than 100 people work on solutions to fight the
Cyber threat faced by Danish organisations. Heavy
investments in Cyber prove our commitment to be theundisputed leader within cyber services in Denmark.

Finally, crisis management and brand protection isa strategic focus area that is picking up fast. Clientsknow that strengthening resilience is more important
than ever, as digital platforms allow an issue to spread
like wildfire throughout the world and jeopardise thereputation and financial stability. To meet the increasing
demand for brand and reputation management
services, we have brought in a new partner as of 1 Juneto lead this strategic risk area.

16

Partners

46

Directors

Consultants

20

Senior Managers

195

people are workingin Risk Advisory

29

Managers

However, the growth in Risk Advisory is also driven by
the GDPR regulation effective from 25 May 2018, as
well as the digital transformation agenda and crisis
management and brand protection.

In FY19, we will continue to introduce new services thatwill help companies gain traction in the global arenaand help them take advantage of our reputation as oneof the most digitalised countries in the world. This ismaking an impact that matters.

48

10

Senior Consultants

Assistant Managers

Average age

Gender distribution

65%
35%

Revenue7%

0

26

2017/18
50

100

150

200

250

27

Annual Report 2017/18 | Client impact

Annual Report 2017/18 | Client impact

Client impact: FLSmidth

On top of tax compliance
anywhere in the world
With 12,000 employees and offices in more than 50
countries around the globe, risk is an inherent partof doing business in FLSmidth. Global tax complianceis a risk area that has become far more complex
as authorities around the world are changing filingpractices and requiring real-time tax data informationto accelerate payments. Given these global trends
towards a more analytical and digital approach totax information, FLSmidth decided to team up with
Deloitte.
We have established an engagement management
office in Denmark to provide FLSmidth with a single
point of contact for everything related to global tax
management, including statutory accounting andcorporate tax provision for the annual reports. From
our office in Denmark, we facilitate and engage Deloitte
tax experts around the world, ensuring that FLSmidthis always abreast of new legislation and development
locally. This approach makes us available to FLSmidth at
all hours no matter where.

About FLSmidth
FLSmidth is a leading global supplier of equipment and services
to the cement and minerals industries. They supply everythingfrom single machinery to complete cement plants and minerals
processing facilities. FLSmidthoperates across more than 50
countries and employs 12,000
people around the world.

“I am very excited about the tax compliance journey FLSmidth and Deloitte haveembarked on, and I am expecting great benefit for FLSmidth from it. The transparency
we gain will enable us always to be on top of all our compliance obligations in a timely
manner around the world and to optimise our internal processes. I trust that we willachieve much better quality in our tax returns and save costs at the same time.”
Mette Mellemgaard Jakobsen,
Vice President, Head of Group Tax & Structure

28

Photo: FLSmidth29

Annual Report 2017/18 | People impact

Annual Report 2017/18 | People impact

UNDERRUBRIK er ikke i worddokumentet - det er visten jeg har sat ind..

People impact

Big leaps towards a morediverse and inclusive workplace
We exist to make an impact on clients, society and employees. However, criticalto our success is our ability to nourish and foster diversity and an inclusive work
culture where everyone can bring their unique contribution into play.

M

ore than 230 partners and 2,500
people make a huge impact
for our clients every day, whiledeveloping the market and each other,challenging the status quo. Deloitte moved
up the ladder to become the 3rd bestplace to work in Denmark among businessstudents in Universum’s ranking. Criticalto our success is our ability to nourish
and foster diversity and an inclusive work
culture where everyone can bring theirunique contribution into play.

of 1% from the previous year. However, we
are happy to announce that in 2017/18 we
managed to reach our S2020 goal of a 25%
female share of equity partners electedboard members, as Sharon Thorne from
Deloitte UK has entered the Board.
In order to increase the proportion of
women in leadership at a faster pace, theExecutive Management team identified fourareas of improvement:
We need to:Less talk, more action
In 2017, we introduced a new and improved
national Gender Diversity & Inclusion plan.
Our goal of having more women in thepartnership is ambitious, but we believe that
we will make substantial progress with ourgender diversity and inclusion initiatives.
Today, women only represent 9.5% of thepartnership, which is a modest increase•• Attract a proportionally equal share offemale talent

What would it take tomake Deloitte the best
diversity employer?
"Deloitte could become better at
exploring the unique and personal
skills of our employees and makethem a part of the solutions webring to our clients. Diversity is
not just about gender, race andsex – it’s about being unique andbringing something unique tothe table."
Kristina Wiese Tranberg
Operational Risk•• Be an employer of happy working
parents•• Have more women in senior leadership(partners)•• Be more inclusive leaders and foster an
inclusive culture.

Status on women in leadership
2015

2016

2017

2018

Partner elected board member

0%

0%

0%

25%

Management team

10%

10%

10%

20%

Partner

9%

8.6%

8.4%

9.5%

23.8%

29.1%

32.8%

30.8%

Other leadership (senior manager – director)

30*This section constitutes Deloitte’s statement on the gender composition of management in accordance with section 99 b of the Financial Statements Act.

31

Annual Report 2017/18 | People impact

Annual Report 2017/18 | People impact

What are your thoughts on diversity
in Deloitte?
"I believe we have taken major steps
to make diversity and inclusion sharedvalues across our culture. No one in
Deloitte can be in doubt that diversity
is a key priority anymore."

Universum*

Employees

3rd

2,717

Anders Harritz Lund
Manager, Consulting

To address these four focus areas, we
introduced ten new initiatives, of which thefirst three were rolled out in 2017/18.
Initiative #1: Positioning Deloitte towards
female talent with “1-2-3 Attract”
Today, we recruit 40% of women at
graduate level, but we aim to make it 50%.
To succeed, we have changed our social
media strategy and increased female
engagement on all social platforms. In
addition, we have launched two annual
female-only events that offer talented
female university students a strong
network, a set of tools, and insights thatwill kick-start their career within or outside
Deloitte. The Universum Student Survey
shows that female business students found
32

What are your experiences with
the new diversity initiatives?
"I have been involved in the Female
Academy, and I think that projects
supporting work/life flexibility
and young families are relevant
and valued by everyone. Deloitte’s
LGBT+ community also does a greatjob in broadening the diversity
agenda. I believe that these
initiatives contribute to a more
respectful, fair and caring culturethat will benefit all of us - including
Deloitte as a business."
Klara Shelton
Consultant, Strategy & Operations

Deloitte more attractive in 2018 compared
to 2017, indicating that “1-2-3 Attract” has
had a positive effect already.
Initiative #2: Work Agility – creating aflexible work cultureWith Work Agility, we create moretransparency around the options relating
to where, when and how much employees
would like to work. This initiative gives
everyone the option of buying 10 extra
holidays and taking up to 12 weeks of leave.
Also, we have enhanced transparency aroundpart-time options and entered deals on
discounted home services. To be certain thatleaders and employees discuss preferences
for flexibility, we have added this new element
to our career development process.

Initiative #3: Making working parents
happy parents
Too many of our people struggle tobalance work and life with children, andconsequently choose to leave Deloitte.
With the Happy Parents initiative, wehave introduced a Parents Transition
Programme, where women and men haveincreased leadership attention and dialogue
before, during and after leave. Furthermore,they are offered coaching during leave andgroup coaching sessions once they return
to work. In addition, leaders will complete
training in how to best support employees
during this time of their career, and we havebumped up our benefits with a 2nd and 3rdchild’s sick day.
The latter two initiatives were rolled out
in late 2017/18 and results are, therefore,premature. However, Deloitte’s engagement
survey clearly indicates that employees
generally think of Deloitte as a fair, inclusiveand diverse workplace (89% of respondents
agree). In FY19, we will proceed with thework initiated in 2017/18, while introducing
more new initiatives relating to diversity
and inclusion.

Promotions

Partners

Directors

19

44

Senior Managers

Managers

69

75"We firmly believe that our clients, our business and our ability to
attract talented people will benefit, if we create a workplace where all
employees are able to combine an exciting job with a flexible worklife. We also believe that we can deliver a better client experience
when our teams are diverse. With diverse perspectives, we cancreate better solutions and act more innovatively and creatively."
Camilla Kruse
Partner, Consulting

33

Annual Report 2017/18 | People impact

Annual Report 2017/18 | People impact

Attractive workplace

The future belongs
to everyone

Deloitte is one of the most attractive employers among
business students and is gaining traction among IT students.

We have an ambitious commitment to improve
gender diversity in Deloitte. Female Academy is
one initiative.

According to the Universum Student Survey, Deloitte was ranked
the 3rd best place to work among Danish business students.
The result confirms that our investments in talent attraction andretention have paid off.

At Deloitte, we believe that our differences are
the source of our strength. We are thus deeplycommitted to help women break the glassceiling and empower them to put their talent into play
and reach their full potential. We have initiated Female
Academy – a programme for talented female students –in order to establish a space where women can unleash
their talent and creativity while finding support andinspiration in other women.

We operate in an increasingly competitive employment landscape,where tech people with a strong business sense are in particularlyhigh demand. Therefore, we are happy to see that we have moved
five positions up from 19th place in 2017 to 14th place in 2018
among IT students. This puts Deloitte ahead of the other Big Four inthe rankings for both IT and business students.
The Universum Student Survey shows that female businessstudents also found Deloitte more attractive in 2018 compared to2017, indicating that “1-2-3 Attract” has had a positive effect already.

For the curious minds
For this academy, we handpicked 25 bright female
university students based on their resumes, creativity
and their dedication to making a difference and staying
curious. The programme runs over a course of six
sessions, featuring academic workshops, inspiring
talks, debates, challenging events, personal stories andinsights from Deloitte.

Business students
Employer

Rank 2018

Rank 2017

Lego

1

1

McKinsey & Company

2

4

Deloitte

3

5

A.P. Moller-Maersk

42Novo Nordisk

5

3

Rank 2018

Rank 2017

Google1

1

Microsoft

2

2

Lego

3

3

We have an ambitious commitment to improve gender
diversity in Deloitte, and we are determined to succeed.
Female Academy is one out of a wide range of initiatives
introduced in this fiscal year to support this agenda,
with more to come next year.

IT students
Employer…
Deloitte

34“It is rewarding to be a part of a network of likeminded women, who can inspire andchallenge me as a person, while having fun. It has definitely sparkled my interest in
management consulting and given me a unique insight into Deloitte.”
Simone Stieglitz, Participant in Deloitte Female Academy

14

19

35

Annual Report 2017/18 | Social impact

Annual Report 2017/18 | Social impact

Social impact

Impact on thesurrounding society
Deloitte’s purpose is to make an impact that matters to our clients, ourpeople and the societies we live in. While running a profitable business is
key to investing in the future, our purpose goes way beyond profits, andmotivates us to go to work every day.

Being one of the biggest professional services
firms in the world, Deloitte has a significant direct
and indirect impact on the surrounding society. A
position, we believe comes with responsibilities. We aredetermined to make an impact that goes beyond ourlegal obligations – not only because it is the right thing
to do, but also because it makes good business sense.
Our approach to creating such impact is assembled
in our Social Impact Strategy – our commitment torunning a responsible business, to be a responsible
employer and a responsible citizen.
Deloitte supports the UN’s Sustainable Development
Goals (SDGs) – a global framework for collective action
to protect our future, which aims to end poverty,
protect the planet and ensure universal prosperity.
Although Deloitte contributes to many of the 17
goals, the goals we have the most impact on are Goal
4: Quality Education and Goal 8: Decent work andeconomic growth. By supporting the SDG goals 4 and8, we take action on a major global issue of importanceto us – helping millions of people being left behind in
the Fourth Industrial Revolution to develop the skills
needed to do meaningful work.
As a company and workplace, our focus on inclusion anddiversity also means that we also have an impact on Goals
5: Gender Equality and 10: Reduced inequalities as well as
Goal 3: Good health and well-being, which is essential tocreating the workplace of the future, where we all thrive.
36“We exist because businesses andgovernments respect us, capital markets
trust us, people want to work with us, andsociety benefits from the value we add.”

In 2015, more than 190 world leaders committed to 17 Sustainable Development Goals (SDGs) to help us all end extreme poverty,
fight inequality & injustice, and fix climate change. We each have a role to play if we’re going to achieve these goals of a more
prosperous, equitable, and sustainable world.

Punit Renjen, Global CEO
Responsible businessOur ambition to run a responsible business is centredaround our Code of Conduct and ethics policies. We
want to be regarded as a professional, trustworthy
and objective business with integrity. This means wemust hold each other accountable, act with integrity,
quality, objectivity and competence, ensure respect
and fair treatment and set standards for professional
practice and behaviour. We ensure this through our risk
control systems, covering anti-corruption, anti-bribery,data security and ethics as well as our whistleblower
solution, making it safe to report any unethicalbehaviour. As an example of this, in 2017 we updated
and reinforced our risk control systems and ran anawareness campaign on ISO27001. This resulted in us
being ISO27001 certified and ensuring a high level of
ethical behaviour.
Running a responsible business also means that
we protect personal information and data, ensure
confidentiality and deliver value-creating services forour clients. We also have an obligation towards themarket we operate in by staying ahead of trends, suchas cyber security, GDPR and responsible tax. On the
cyber agenda, we have launched insight reports, newsolutions and helped our clients stay alert to cyberattacks. We have held Grab ‘n Go sessions on Cyber,
GDPR and Compliance, as well as provided guidelines
on responsible tax.

leadership culture. This also means that our primary
focus with regard to protection of human rights is theworking conditions of our employees.

Responsible employer
We want to create a workplace where people thrive,grow and feel part of an inclusive culture. This means
placing great focus on diversity and inclusion, including
closing the gender gap and getting more female
talent in leadership positions, supporting working
parents and families as well as creating more flexible
working arrangements. Our leading performance anddevelopment was introduced in 2017 and carried out
in 2017 and 2018 and imply that we take a strengthbased approach to career development, offer everyone
a dedicated career coach, ensure frequent, real-time
feedback and invest in building a strong people

Our responsibility as corporate citizens is embraced
in our global commitment to create an impact on 50
million futures by 2030. This is why we have createdWorldClass – an organisation-wide initiative thataligns Deloitte’s local efforts around a global ambition.
Through WorldClass, we are applying our core skills,
experience, and global reach to empower more people
through education, skills development and access toopportunities.

Responsible corporate citizen
Social impact is essential to Deloitte’s DNA. It is part ofour purpose to create an impact that matters. We mustbe guided by this behaviour every day we go to work.

In Denmark, we have unfolded WorldClass into two
main initiatives – UNLEASH and Small Great Nation.

37

Annual Report 2017/18 | Social impact

Annual Report 2017/18 | Social impact

UNLEASH-ing an impactthat matters“I have a high sense of responsibility and I am eager to be part of changing
the world… UNLEASH gives me the chance to contribute to the common path
towards a better and more sustainable future.”
Camilla Hellemann Sørensen, Consultant, Deloitte

1,000 global talents came together in Copenhagen for the world's biggest
innovation workshop to co-create on solutions for the SDGs.

After a week of an intensive
innovation workshop, the 1000
talents from across the world
celebrated their solutions andthe award winners at the award
show in Aarhus.

In August 2017, 1,000 talented people
from 129 countries gathered in Denmark
to solve some of the most complex
challenges we face as a global community.
Known as UNLEASH, the initiative brings
together some of the brightest and mostinnovative young minds from across theworld, with the aim of finding solutions
for the United Nation’s Sustainable
Development goals (SDGs).
Leading the world’s biggest innovation
workshopWe were the lead innovation partner for
UNLEASH, responsible for the design anddelivery of a four-day SDG innovation lab

38

spanning seven ‘tracks’ targeting eachof the SDGs, including education, healthand sustainable consumption. Forty-fiveof our people across Deloitte North West
Europe took the participants on each track
through the innovation phases of problem
framing, ideation, prototyping and testing
before each team pitched their solutions toinvestors.
Through this, we helped them create
nearly 200 innovative solutions, including a
digital platform to support deaf people indeveloping countries to learn sign language;
low-cost health centres in the most remoteand vulnerable communities in Uganda

to provide high quality healthcare to rural
citizens; and a virtual reality program to
improve empathy towards migrants inwestern countries. These proposals arenow seeking support from investors,
experts, mentors, and more than 200
UNLEASH partner organisations globally.
Our support to UNLEASH embodies ourWorldClass initiative, which aims to use
our skills, experience and global reachto empower 50 million people througheducation, skills development and access toemployment opportunities.

Committed to making an
impact every year until 2030
UNLEASH will be a recurring
event every year until 2030.
During the summer of 2018,
1,000 young people came
together in Singapore to once again - facilitate the SDG
innovation workshop. The bestsolutions are awarded and given
funding or professional services
to help make it a reality.

A solution that won an award andreceived backing is ‘Dearly’.
The initiative enables people touse artificial intelligence to selfmonitor and detect colorectal
cancer. After UNLEASH, ‘Dearly’
has launched a partnership with alarge Danish hospital with theultimate goal of empowering
doctors with new data insights.

39

Annual Report 2017/18 | Social impact

Annual Report 2017/18 | Social impact

Small Great Nation
Small Great Nation is a joint initiative by Deloitte and think tank Kraka to enable a fact-based discussion
about Denmark’s future and strongholds. The initiative aims to counteract fake news and misinformationby providing factual analyses of Denmark’s challenges and opportunities. By facilitating a dialogue acrossbusinesses, the public sector, organisations and enthusiasts, we have engaged people to discuss and cocreate on better solutions for bringing Denmark forward.

40

41

Annual Report 2017/18 | Social impact

Annual Report 2017/18 | Social impact

Small Great Nation was launched at a big
conference in Tivoli Congress Center witha report on productivity, globalisation,
innovation and Danish strongholds. We also
asked 100 leaders about their perspective on our
future, and the message is clear and coherent:
The outlook for Denmark is positive in terms of astrong foundation to build on, high productivity
levels and growing demand for what we are goodat – pharma, cleantech and shipping. However, ourbiggest challenge as a nation is education and skills
to meet those demands. We must place a stronger
focus on skills development, education and lifelong
learning – and we need to co-create in new ways tomake this happen.
One year in, Small Great Nation has engaged
politicians, business leaders and entrepreneursin the discussion – both nationally and at local
roadshows. Videos, reports, press activities andevents across the country and a new podcast
series are among the channels we have used
for disseminating new facts and promoting thediscussion. The project continues for two years withnew analyses, events and podcasts in the pipeline.

Former Minister of Commerce, Brian Mikkelsen, talked about
the importance of technology and IT skills in education as a key
successfactor for taking Denmark into the future.

Flemming Besenbacher, chairman of Carlsberg and Carlsberg
Foundation, wants more focus on STEM competences in Danish
schools and calls for more elite education.

As a global player, we must take a responsibility inthe world we live in. Small Great Nation is a great
example hereof. It encompasses our strategic
position and goal and stands as a flagship initiative,
which our clients, talents and other stakeholders
are happy to take part in.

For more information: www.sgnation.dk
42

43

Annual Report 2017/18 | World class industries

Industries
in digitaltransformation
Our purpose is to make our clients successful, and we do this by offering them the best of
Deloitte and combining our deep expertise and innovations in business areas with our strong
industry knowledge. Our ambition is to help our clients transform their business and theindustry they operate in. This means we have a focused industry and client strategy, whichtranscends borders, meaning that apart from local experts, we have a worldwide network of
264,000 experts to draw on. In this way, we can serve our clients anywhere in the world.
Our strong collaboration with Nordics and North West Europe involves strategic client andindustry programmes, which enable us to harness specialist industry knowledge and better
serve our clients in the industry they represent. Our go-to-market strategy also involves a
strategic focus on what we define as Deloitte Private - our global and dedicated approach toSMEs, private companies, private equity and family businesses.
One of the megatrends affecting all industries is technology. This is reflected in our industry
focus, which relates to six key areas.

Annual Report 2017/18 | World class industries

Public Sector

D

enmark has a mature and developed welfare
state that continues to be at the forefront ofusing digitalisation to boost a more efficient public
sector. Rapid ongoing digital developments are already changing the way in which we live, the way we run
our businesses and the way our public service andwelfare services are delivered.
As a result, our work with the public sector haslargely been characterised by digital transformation.
Throughout the past year, we have implemented newtechnologies in public sector institutions and moved
legacy IT systems to the cloud to ensure efficiency
benefits. Automation and artificial intelligence istaken to the next level to optimise case managementin public authorities. We have tested and validated
blockchain solutions in a number of institutions toenhance public transparency. We have also helped
public sector institutions to reshape their approach todata privacy by becoming GDPR compliant.
For a more citizen-centred and cohesive public sector,
the government introduced the Reform for Cohesion.
In addition, the government initiated their second
relocation of 4,000 public sector jobs away from thecapital region to ensure a better geographical distribution. Within both initiatives, we continue to be thepreferred advisor within government transformation
with a mission to shape and develop the future welfare state.

x

TFinancial Services

he financial sector is in an important transitional
phase where digital solutions set new standards
for client interaction. Fintech, automation, robotics
and machine learning are central drivers, causingbanks, insurance companies, pension and investment

44

management to rethink existing business models.
Customers expect to be served in a more personalised way – an innovative approach and new solutions
will help drive that transformation.
The industry is experiencing an increased focus on regulatory compliance, where audit practice standards,
Basel and GDPR among others, have changed the way
the financial industry works with customer service
and data management. In connection with the implementation of GDPR in May 2018, we have helped ourclients conduct maturity assessments, identifying
areas of improvements to ensure compliance. We
have helped our clients identity opportunities forincreased effectiveness and business value that GDPR
also presents. Cyber threats are yet another area
where our clients must incorporate extra layers of
security to protect them from hacks. With an environment in rapid and constant change, we see our clientsdemanding a more agile approach – a transition thatenhances our focus on meeting our clients with innovation and new solutions to assist them in new waysof thinking and doing business.

Energy & ResourcesC

leantech and energy is one of Denmark’s
strongholds undergoing a fast transformation.
Consumers, politicians and investors demandsustainable energy solutions, and the main players
in this field are drivers of that change. More liberalmarkets and tough legislation increase competition,and the energy companies must place strong focus
on innovation and efficiencies to stay competitive.
This development will only increase in the futurewith electric-powered cars, buses and trucks, solar
panels and new heating systems. We will also see ashift from a tradition of long-term planning and large,
infrastructure investments towards investments inmore digital solutions. With more than 8,000 Deloitte
professionals within the Energy & Ressources industry worldwide, we support our clients in this journey45

Annual Report 2017/18 | World class industriesof transformation with everything from identifying
and overcoming innovation barriers to M&A supportand implementation of new digital solutions.

Life Sciences& Health CareL

ife Sciences & Health Care is one of Denmark’s
stronghold industries according to Kraka’s analysis on positions of strength. And it is an industry witha huge growth potential as well. The LSHC industry
is indeed a fast-growing industry driven by a larger
group of elderly people with an increasing need for
health services and more chronic and infectious
diseases. Patients expect full-service and connected
health solutions that can provide access to personal
health data on-demand and from digital platforms, aswell as accelerate treatment. Easier access to patient
data and a more holistic patient view are central toproviding better healthcare offerings in the future.
Throughout last year, we have helped clients implement robotics solutions and other digital technologies, enabling them to cut costs and help accelerate thedevelopment of new healthcare services.
At the same time, the industry faces data protection
and regulatory compliance demands, along with amarket affected by pressure to reduce costs, improve
workflows and work conditions. Hence, the industry
is undergoing a significant transformation in businessmodels and efficient processes as well as better
patient care.

Consumer &Industrial Products

Today’s consumer expects digital and on-demandsolutions as well as extraordinary service.
The mobile device is one of the primary tools for
consumption, and the industry needs to meet that46

Annual Report 2017/18 | World class industries

demand. More digital and customer-centric solutions,customer journey and increased focus on customer
experiences and loyalty are key. The companies
selling to consumers must be best-in-class to meetthose demands. At Deloitte, we have launched a connected store concept, where retailers can be inspiredby the digital solutions ideal for their business.
Industry 4.0 is the megatrend affecting industrial
companies today and going forward. A recent Deloitte
survey shows that while 83% of global leaders believein the economic and social benefits of Industry 4.0,
only 25% feel ready, and only 8% have a business planin place to meet the new demands. Value creation
lies in how well you can transform your own businessmodel while helping your customer through thedigital transformation, building new digital businessmodels and using technology to advance production
and value-chain. Data management, automation andInternet of Things are among the key trends in thisindustry, and talents with new skills and education
will be essential to succeed.

Technology, Mediaand TelecommunicationT

his year’s mobile consumer survey shows thatthe Danes are the most frequent users of mobile
payment. Indeed, Denmark is a mobile savvy country
with a comprehensive mobile infrastructure and agreat level of trust towards digital solutions. This
provides an opportunity that media companies have
explored by providing media and data solutions atyour fingertips. The trend of digitalisation is greatly
affecting the media and telecommunication industry,
and artificial intelligence and machine learning aretechnologies that can help explore this potential bylearning patterns and predicting what the consumer
wants next. The rapid development in this industry
also means that the cyber threat is increasing, and IT
security must be prioritised through common rules
and regulations as well as being built into the solutions from the beginning.

Deloitte Private
Apart from a strong industry focus, Deloitte Private
is a top priority for us in Denmark and globally.
Private represents the segment where the vast
majority of our clients are. We categorise Private
as small and medium-sized companies, privatecompanies, family businesses and private equity.

C

ompanies in the small and medium-sized market
account for more than 95% of Danish businesses.
And many private companies in Denmark are looking
to transform and grow. With our strong culture ofinnovation and entrepreneurship, many of thesecompanies have the potential to grow big – also at
an international scale. At Deloitte, we have a strong
focus on helping SMEs with business transformation,
digitalisation and, not least, expansion into global
markets.

Client Satisfaction
Assessment*

Loyalty

Collaboration

8.9

9.0

Eﬃciency

People8.7

8.9

The segment of privately owned mid-market companies is also a top priority. Deloitte's five professional
business units work together to deliver global solutions to help companies keep the growth focus anddevelop.
Denmark also has a strong heritage of family businesses. We have developed capabilities and experiencein identifying the core values of the families. We
work with families to help them articulate their goals
and anchor them within the family structure andorganisation. And we work with families to co-create
well-designed and properly implemented family
enterprise governance structures that give clear
guidance to family members and thereby create easier transitions between generations.
Deloitte Private Equity has a dedicated focus on private equity managers, investment funds and private
equity-backed companies. We have gathered thestrongest skills within transaction services, development of financial functions and the CFO role, tax andaudit in one collaborating team. In addition, we workwith substantial industry knowledge.

Overall satisfaction

8.8* The scores are based on 400 ratings, including
qualitative interviews and e-surveys conductedfrom February to June 2018.

47

Annual Report 2017/18 | TripleNine

Annual Report 2017/18 | TripleNine

Client impact: TripleNine

Aligning goals and strategy
to get international success
At Danish fish meal company TripleNine, the key to success is to aim highand focus on organisational readiness - including the courage to change
competences and roles.

W

hen Danish TripleNine in 2013 merged with
the Norwegian Koppernæs Group to form
TripleNine Group A/S, the largest fish meal
and fish oil company in Scandinavia, the synergies
did not come as fast as expected. The organisation
was challenged by a misalignment between the newcompany’s growth strategy and organisational goals.
According to Jes Bjerregaard, CEO at TripleNine Group,
the initial problem was that the strategy was mostly
written on a piece of paper instead of being committed
by all stakeholders and, therefore, not really executed.
“The hard part is to go from formulating goals to
executing the strategy. This requires serious commitment
from owners, Board of Directors and Management tocommit and engage employees. It is important thatleaders are aligned and in agreement of what direction
your company should go”, says Jes Bjerregaard.

48

The TripleNine Group comprises a number of production,
trading and sales companies in Denmark, Norway andChile. The companies are engaged in the development,
production, marketing and sales of fish meal and fish oil
as animal feed ingredient for aquaculture, agriculture andpet food. Approximately 250 employees from a wide range of nationalities are employed in TripleNine Group A/S.

"Everybody can write down a growth strategy anddeliver a good excuse for why you are not fulfilling it.
The same rules apply to all, and some companies makeit big, so I believe organisational readiness is where
you need to focus. This requires the courage to change
roles and adjust the general operation."

While Danish SMEs are good at defining ambitious andclear growth goals, they lag behind when it comes tocarrying out the strategy needed to fulfil those goals
according to a recent survey from Deloitte. From Jes
Bjerregaard’s perspective, this should not be an excuse
to aim high.

transformational journey and aligned organisational
goals with growth strategy and international ambitions.

Something could indicate that Jes Bjerregaard and the
TripleNine Group have followed this formula. Since hestarted in 2016, TripleNine Group has undergone a

Today, the Company has a strong platform with aprofitable revenue of DKK 1.8 billion and a solid balance
sheet to realise the ambitious goals in the years to come.

Photo: TripleNine

Jes Bjerregaard, CEO TripleNine Group49

Annual Report 2017/18 | Velux

Annual Report 2017/18 | Velux

Client impact: Velux

Using data to strengthenbusiness opportunities
To accelerate growth, the VELUX Group explores new ways of interacting withcustomers, including investing resources in gathering and exploiting data.

Staying relevant in a market leading
position and creating growth requires
bold ambitions, constant attention tocustomer needs and a culture of learning
to enable change. The VELUX Group has
transformed the business towards making
data-driven decisions.
“Our future path to growth comes from our corebusiness. Our focus in business development
is to build on our existing legacy and trust in
the market and keep bringing new and better
experiences to our customers. One of the key
levers for the VELUX Group is to increasingly
use data to gain insights for better businessdecisions,” says Group CFO Peter Bang.
The recently launched smart-home innovation
exemplifies how the VELUX Group harnesses
digital opportunities and data, and turn them

VELUX is a Danish successstory. For more than 75 years,
the VELUX Group has provided
everyone a view to the world
through its high-quality roof
windows. It is a story of a
dedicated focus on creating
better living environments bybringing more daylight andfresh air into millions of people’s homes, and as a billion EUR
business it is known to many
across the globe.

into solutions that consumers can benefit
from in their everyday life. VELUX ACTIVE
with NETATMO is a smart window systemthat senses, thinks and acts on your behalf
to create a healthier home environment.
Smart sensors monitor temperature, humidity
and CO2 concentration inside the home
and activate a gateway to open or close roof
windows to improve the indoor climate.
The VELUX Group’s ambitions for gaining
insight by wider use of data in all parts of thebusiness have resulted in a close partnershipwith Deloitte within data and analytics.
The Deloitte and VELUX collaboration isa partnership model, which focuses ondevelopment and support of advanced data
models and insights across the organisation
to ensure best-in-class support for decisionmaking.

"Our ambitions are to bring data even further into key decision
streams in VELUX locally and globally. In this transformation,
Deloitte has been an important business partner for VELUX
providing capabilities in data and analytics."
Peter Bang, Group CFO

50

Photo: Velux

51

Annual Report 2017/18 | United Nation’s Development Programme

Annual Report 2017/18 | United Nation’s Development ProgrammeSocial impact: UNDP

Small businesses, big goals"With the SDG Accelerator, we see companies
embracing more sustainable models."Bahare Haghshenas, Senior Manager in Monitor Deloitte

What role can small and medium-sized businesses play inmaking the world a better place?

these small and medium-sized companies
throughout the programme to develop
their ideas. Applying our expertise, we use
technology and tools over a six-monthinnovation process.
This includes a range of workshops,
including the topics of problem framing,
ideation, enrichment and finally integration,
which is when they integrate, produce,
distribute and sell the solution to users
or customers. After we have helped thecompanies develop the business cases
behind their ideas, we then showcase themfor some of the country’s leading potential
investors and business angels.
Bahare Haghshenas leads the SDG agenda at Deloitte and is oneof the founders of the SDG Accelerator.

W

ith Deloitte’s help, UNDP set
up the SDG Accelerator. The
programme accelerates solutions
for the SDGs through the developmentof new business models, products andservices. It is funded by The Danish Industry
Foundation and is being tested in Denmark
over the next two years with 30 Danish small
and medium-sized industrial companies.
The benefits for businesses to get involved
are two-fold. More and more companies
52

are realising that the SDGs are important
for their own innovation, growth andbetter competitive performance. After all,there could be valuable gains for thosebusinesses that can develop commercial
solutions to tackle some of the biggest
challenges we face as a global population.
Bahare Haghshenas, Senior Manager
in Monitor Deloitte, who is working on
the project, explains: “With the SDG
Accelerator, we see companies embracing

more sustainable models. By applying
their creativity and working with experts
from the UN and innovation facilitatorsfrom Deloitte, small and medium-sizedcompanies take the driver’s seat in solving
some of the persistent challenges weface in society and develop new business
opportunities.”
Cross-border problems and teams
By bringing together an international
Deloitte Consulting team, we are supporting

The Sustainable Development
Goals (SDGs) are a universal call toaction to end poverty, protect theplanet and help ensure equality ofopportunity for people across theworld. The United Nation’s
Development Programme (UNDP)
is uniquely placed to help
implement the SDGs. It works insome 170 countries and territories.

Photos: UNDP

The group of SDG ambassadors commited to bringing the SDGs
into Danish small and medium-sized companies.

53

Annual Report 2017/18 | Chr. Hansen

Annual Report 2017/18 | Chr. Hansen

Client impact: Chr. Hansen

Chr. Hansen reduces food wastewith artificial intelligence
The global bioscience company uses image recognition and machine learning toprotect food from yeast and mould. The Company's progress indicates that thetechnologies are mature and could be the key to a broader business transformation.

While laboratory technicians today are inspecting petri
dishes mixed with milk, mould spores and various
bacteria to find the most effective bacterium, a new
project aims to utilise machine learning and image
recognition to do the same.
“Our algorithm can mimic the assessment made bylaboratory technicians and provide an objective andinstantaneous answer on how effective the bacterium
is compared to other bacteria. The algorithm’s ability toembrace such complexity holds considerable potential,”says Project Director Morten Meldgaard from Chr.
Hansen, who leads the Company’s big data program.
The algorithm can make the test results more objective
and consistent; it can act as a digital assistant to
the laboratory technicians by helping them makean assessment; and it can automate parts of theassessment process and thereby help scale the business.
Mature technologies with business
transformation potential
The technologies are becoming mature, and thepotential of using artificial intelligence and othercognitive technologies for unstructured data isenormous. This type of data represents the majorityof the knowledge that companies and organisations
possess. However, it is essential that businesses conduct
experiments with the technologies and explore thebenefits that arise. Those who experiment get a glimpseof the potential and what is required to realise it.
54

Photo: Chr. Hansen

About Chr. Hansen
Chr. Hansen is a global bioscience
company that develops natural
solutions for the food, nutritional,
pharmaceutical and agriculturalindustries. The Company develops
and produces cultures, enzymes,
probiotics and natural colours for arich variety of foods, confectionary,
beverages, dietary supplements
and animal feed.

"The algorithm’s ability to embrace suchcomplexity holds considerable potential."
Morten Meldgaard, Project Director
After testing a given technology, it is crucial thatcompanies manage to transform themselves in order
to exploit the new digital opportunities. This requires
a certain amount of courage and the ability to scale up
the pilot projects to broader investment areas. In thisway, individual technology projects can lead to a morestrategic business transformation.
55

Annual Report 2017/18 | Financial review

Annual Report 2017/18 | Financial review

Financial review
Main activity
Deloitte Statsautoriseret Revisionspartnerselskab carries
out audit and advisory services in Denmark within
the framework that follows from the Danish auditing
legislation.
Statement of comprehensive income – anotheryear of growth
We have consolidated our position this year as a strong
professional audit and advisory company in Denmark witha growth rate of 11%. We have now realised the fourthconsecutive year of growth between 9-11% annually.
Revenue totals DKK 3,429m compared to DKK 3,091m in
2016/17, and is driven by positive market condition but
also the result of significant investment in recent years
in the market, quality and talent across the company.
We have already seen the first positive results of the

Audit & Assurance
As expected, 2017/18 revenue of Audit & Assurance
is 4% below revenue in 2016/17, and the decrease
can be attributed to the divestment of business
entities - a consequence of a change in market andlocation strategy. Adjusted for divestment, revenue has
increased. We have invested heavily in quality, talent,market,digitisation and automation to transform thebusiness in order to meet the rapidly changing demands
from regulators and market.

creation of North West Europe and the market focus andinvestments we have driven across the nine countries. A
number of major global engagements have contributed
to the growth as well.
Staff costs, including remuneration to the partners, total
DKK 2,178m, which is at the same level as last year.
Of the total staff at 31 May 2018, 232 were partners (31May 2017: 235).

Risk Advisory
The market for cyber security and compliance continues
to grow. The market demand supported by launch of
new services has driven the 7% growth in Risk Advisory.

Profit for the year amounted to DKK 87m, which is DKK
1m up on last year. In assessing the results, it must
be taken into account that the shareholders are also
partners of the company and that their remuneration is
profit-related. The remuneration has been recognised instaff costs.

Financial Advisory
Financial Advisory shows growth of 11%, with revenue
increasing by DKK 22m to DKK 223m. Thus, the Financial
Advisory growth continues to be driven by high demandin the financial market. During the year, Financial
Advisory has invested in new services.

Deloitte CO2 udledninger 2015 (%)

Tax & Legal
Tax & Legal shows growth across all service lines anda combined growth of 6% in 2017/18. The growth isdriven by focussed market activities and new major
engagements. Great activity in the market and a numberof macroeconomic events such as Brexit, escalating
US trade tariffs as well as general unprecedented
uncertainty and regulatory changes have driven thegrowth supported by our investments in digitisation andinnovation.

Revenue by business units
4%

7%

24%
38%
36%

2017/18

2013/1453%
6%

7%

Audit & Assurance

56

12%

Consulting

Elektricitet (xx%)

13%

Flyrejser (xx%)
Deloitte-biler (xx%)

Tax & Legal

Risk Advisory

Financial Advisory

Consulting
Consulting again posts a significant growth rate of
37% this year. This positive development is driven
by increased demand for business transformation
capabilities and digital solutions as well as a number ofmajor global client
engagements.
In particular, the focus
Fjernvarme (xx%)
Naturgas
(xx%)
has
been
on
digitaltransformations
and automations forTog (xx%)
Taxa (xx%)
clients across all sectors.
Medarbejderkørsel (xx%)

Papir (xx%)

Balance sheet
The balance sheet total is DKK 1,799m, of which equity
amounts to DKK 547m, equalling a equity ratio of 30%(2016/17: 31%).

Distribution of DKK 60m in dividend is proposedcompared to DKK 58m last year.
The balance sheet includes intangible assets of DKK
566m (31 May 2017: DKK 584m), which primarily consistsof goodwill and intellectual property rights. Investments
in intangible assets during the year totalled DKK 11m.
Funds tied up in work in progress and trade receivables
amount to DKK 1,026m compared to DKK 852m in theprevious year. The increase is due partly to the increased
activity level, and partly to an increase in the debtor days
ratio and work in progress. The increase in funds tied-up
is the reason that interest-bearing debt has risen by DKK120m to DKK 349m at financial year-end.
Cash flow statement
Cash generated by operations in 2017/18 are negative by
DKK 15m (2016/17: negative by DKK 22m). The improved
cash flow is mainly due to improved cash flow fromoperating activities before working capital changes.
Cash flows from investing activities are positive by DKK
11m (2016/17: negative by DKK 31m), which is significantly
higher than last year, mainly due to the divestment ofactivities.
Financial review
Uncertainty relating to recognition and measurement
No special uncertainty has been identified relating torecognition and measurement. For significant accounting
estimates and judgements, see Note 0.4 to the financial
statements.
Events after the balance sheet date
Except for the acquisition and divestment of activities
described in Note 4.1, no events have occurred from thebalance sheet date and until the date of issue that would
influence the evaluation of this Annual Report.
Outlook 2018/19
Performance and earnings for the coming year are
expected to be on a par with this year. Taking into
consideration the general development in the economy
and the profession, next year is expected to see
satisfactory growth for all business units.
57

Annual Report 2017/18 | Statement by Management

Annual Report 2017/18 | Statement by Management

Statement by Managementon the annual report
The Board and the Executive Board have today considered and approved the Annual Report of Deloitte
Statsautoriseret Revisionspartnerselskab for the financial year 1 June 2017 to 31 May 2018.
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 financial statements give a true and fair view of the Company’s financial position at 31 May
2018 and of the results of its operations and cash flows for the financial year 1 June 2017 to 31 May 2018.
We believe that the management commentary contains a fair review of the affairs and conditions referredto therein.
We recommend the Annual Report for adoption at the Annual General Meeting.
Copenhagen, 22 August 2018

Executive Board

Anders Vad Dons
Board

58

Erik Holst Jørgensen
Chairman

Gustav Jeppesen

Sharon Julia Thorne

Jesper Smedegaard

Mette Behrmann Lamp

Søren Lassen

59Annual Report 2017/18 | Independent auditor’s report

Annual Report 2017/18 | Independent auditor’s report

Independent auditor’s report
To the shareholders of Deloitte Statsautoriseret
Revisionspartnerselskab
OpinionWe have audited the financial statements of Deloitte
Statsautoriseret Revisionspartnerselskab for thefinancial year 1 June 2017 to 31 May 2018, which
comprise the statement of comprehensive income,balance sheet, statement of changes in equity, cash
flow statement and notes, including a summary ofsignificant accounting policies. The financial statements
are prepared in accordance with International Financial
Reporting Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
In our opinion, the financial statements give a trueand fair view of the Company's financial position at 31
May 2018 and of the results of its operations and cash
flows for the financial year 1 June 2017 to 31 May 2018
in accordance with International Financial ReportingStandards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark.
Our responsibilities under those standards andrequirements are further described in the Auditor’s
responsibilities for the audit of the financial statements
section of this auditor’s report. We are independentof the Company in accordance with the International
Ethics Standards Board of Accountants’ Code of Ethics
for Professional Accountants (IESBA Code) and the
additional requirements applicable in Denmark, andwe have fulfilled our other ethical responsibilities inaccordance with these requirements. We believe thatthe audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Statement on the management commentaryManagement is responsible for the management
commentary.
60

Our opinion on the financial statements does not cover
the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the management
commentary and, in doing so, consider whether the
management commentary is materially inconsistent
with the financial statements or our knowledge obtainedin the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether
the management commentary provides the information
required under the Danish Financial Statements Act.
Based on the work we have performed, we conclude
that the management commentary is in accordancewith the financial statements and has been preparedin accordance with the requirements of the Danish
Financial Statements Act. We did not identify any material
misstatement of the management commentary.
Management’s responsibilities for the financial
statements
Management is responsible for the preparation offinancial statements that give a true and fair view inaccordance with International Financial ReportingStandards as adopted by the EU and additional
requirements of the Danish Financial Statements Act,and for such internal control as Management determines
is necessary to enable the preparation of financial
statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, Management
is responsible for assessing the Company’s ability tocontinue as a going concern, for disclosing, as applicable,
matters related to going concern and for using the going
concern basis of accounting in preparing the financial
statements unless Management either intends toliquidate the Company or to cease operations, or has no
realistic alternative but to do so.

Auditor’s responsibilities for the audit of thefinancial statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due tofraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the additional
requirements applicable in Denmark will always detect amaterial misstatement when it exists. Misstatements canarise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users
taken on the basis of these financial statements.

use of the going concern basis of accounting in
preparing the financial statements, and, basedon the audit evidence obtained, whether amaterial uncertainty exists related to events orconditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’sreport to the related disclosures in the financial
statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of
our auditor’s report. However, future events orconditions may cause the Company to cease tocontinue as a going concern.

As part of an audit conducted in accordance with ISAs
and the additional requirements applicable in Denmark,we exercise professional judgement and maintainprofessional scepticism throughout the audit. We also:•• Evaluate the overall presentation, structure andcontent of the financial statements, including
the disclosures in the notes, and whether thefinancial statements represent the underlying
transactions and events in a manner that gives atrue and fair view.

•• Identify and assess the risks of material misstatementof the financial statements, whether due to fraud
or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, orthe override of internal control.
•• Obtain an understanding of internal control relevantto the audit in order to design audit procedures thatare appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectivenessof the Company’s internal control.
•• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimatesand related disclosures made by Management.
•• Conclude on the appropriateness of Management’s

We communicate with those charged withgovernance regarding, among other matters,
the planned scope and timing of the audit andsignificant audit findings, including any significant
deficiencies in internal control that we identify
during our audit.
Copenhagen, 22 August 2018
Beierholm
Statsautoriseret Revisionspartnerselskab
Business Registration No 32895468

Philip Heick-Poulsen
MNE no 34280
State Authorised Public Accountant
61

Annual Report 2017/18 | Statement of comprehensive income

Annual Report 2017/18 | Balance sheet

Statement of comprehensive
income for 2017/18

Balance sheet at 31.05.2018
2018
DKK'm

2017
DKK'm

Goodwill (2.1)

500.0

509.1

Intellectual property rights (2.2)

38.4

36.4

(828.7)

Completed development projects (2.2)

27.5

38.9

(35.0)(34.8)

Intangible assets

565.9

584.4

77.2

70.9
Leasehold improvements (2.3)

10.3

10.4

2017/18
DKK'm

2016/17
DKK'm

Revenue (1.1)

3,428.8

3,090.9

Staff costs (1.2)(2,177.5)(2,156.5)

External expenses (1.3)(1,139.1)

Depreciation and amortisation (1.4)
Operating profit before special items
Special items (1.5)

14.5

17.9

Operating equipment and fixtures (2.3)

32.6

40.6

Operating profit

91.7

88.8

Property, plant and equipment

42.9

51.0

Financial income (3.6)

2.7

2.7

Financial assets (2.4)

41.1

39.6

Financial expenses (3.7)

(7.1)

(5.7)

Profit for the year

87.3

85.8

Non-current assets

649.9

675.0

Other comprehensive income for the year

0.0

0.0

Trade receivables (2.5)

744.4

651.9

Receivables from associates (4.4)

43.1

49.4

Contract work in progress (2.6)

318.4

243.8

7.9

26.4

Prepayments

23.2

22.2

Receivables

1,137.0

993.7

2.2

18.3

1,139.2

1,012.0

9.6

2.0

1,798.7

1,689.0

Comprenhensive income for the year

87.3

85.8

Other receivables

Cash
Current assets
Assets classified as held for sale (2.1)
Assets62

63

Annual Report 2017/18 | Balance sheet

Annual Report 2017/18 | Statement of changes in equity

Statement of changes inequity for 2017/18

Balance sheet at 31.05.2018 (cont.)
2018
DKK'm

2017
DKK'm

Share capital (3.1)

42.0

42.0

Retained earnings

505.4

475.8

Equity547.4

Retained earnings
DKK'm

Total
DKK'm

Equity 31.05.2016

42.0

445.1

487.1

517.8

Profit for the year

0.0

85.8

85.8

Comprenhensive income
for the year

0.0

85.8

85.8

Dividend paid

0.0

(55.1)(55.1)

Equity 31.05.2017

42.0

475.8

517.8

Profit for the year

0.0

87.3

87.3

Comprenhensive income
for the year

0.0

87.3

87.3

Dividend paid

0.0

(57.7)(57.7)

Equity 31.05.2018

42.0

505.4

547.4

Financial liabilities (3.4)

30.6

39.3

Employee liabilities (2.7)

9.4

10.2

Provisions (2.8)

6.1

6.5

Non-current liabilities

46.1

56.0

Financial liabilities (3.4)

300.8

240.4

Employee liabilities (2.7)

611.0

625.5

Contract work in progress (2.6)

37.2

43.4

Trade payables (3.4)

148.2

83.0

Other liabilities (3.3)

108.0

122.4

Current liabilities

1,205.2

1,114.7

Liabilities

1,251.3

1,170.7

0

0.5

1,798.7

1,689.0

Liabilities associated with assets classified as held for sale (2.8)
Equity and liabilities

64

Share capital
DKK'm

65

Annual Report 2017/18 | Cash flow statement

Annual Report 2017/18 | Financial highlights

Cash flow statementfor 2017/18

Operating profit

Financial highlights
2017/18
DKK'm

2016/17
DKK'm

91.7

88.8

Adjustments to non-cash items:

2017/18
DKK'm

2016/17
DKK'm

2015/16
DKK'm

2014/15
DKK'm

2013/14
DKK'm

Principal figures
3,429

3,091

2,838

2,564

2,326

Operating profit*

Net revenue

92

89

69

66

60

Profit/loss after financial items, net

(4)

(3)

(4)

(2)

(7)

Profit for the year*

87

86

65

64

53

Depreciation and amortisation (1.4)

35.0

34.8

Profit on divestment of activities (1.5)

0.0(17.4)

Increase/decrease in provisions

(0.2)

7.0

126.5

113.2

Client receivables and contract work in progress

1,026

852

772

728

647

547

518

487

475

465

1,809

1,689

1,580

1,428

1,276

Investment in intangible assets

11

9

82

73

11

Investment in tangible assets

11

33

11

38

13

Invested capital, including goodwill

867

778

628

698

492

Cash generated by operations before working capital changes
Increase/decrease in current liabilities

34.9(14.1)

EquityIncrease/decrease in trade receivables and contract work in progress(165.5)(114.1)

Increase/decrease in other receivables

Balance sheet total(11.0)(6.6)

Cash generated by operations(15.1)(21.6)

Interest income etc. received (3.6)

1.2

1.0

Interest expenses etc. paid (3.7)

(7.1)

(5.7)

Cash flows from operating activities(21.0)(26.3)

Purchase of intangible assets(11.4)(8.5)

Purchase of property, plant and equipment(11.0)(32.7)Key ratios

Sale of property, plant and equipment

4.3

11.0

Purchase of financial assets

(3.3)

(1.1)

Sale of financial assets

1.8

0.0

Divestment of businesses (4.1)

30.4

0.0

Cash flows from investing activities

10.8(31.3)

Increase/decrease in short-term financial liabilities (3.3)(18.4)

6.5

Dividend paid

(57.7)(55.1)Cash flows from financing activities(76.1)(48.6)

Increase/decrease in cash and cash equivalents(86.3)(106.2)

Cash and cash equivalents at 01.06.2017(162.2)(56.0)Cash and cash equivalents at 31.05.2018 (3.5)(248.5)(162.2)

Cash and cash equivalents at 31.05.2018(248.5)(162.2)

Operating credit facilities granted

270.0

170.0

Financial resources at 31.05.2018

21.5

7.8

Financial resources

Net interest bearing liabilities

349

229

115

206

27

2,513

2,553

2,379

2,285

2,140

Net profit ratio (%)

2,7

2,9

2,4

2,6

2,6

Financial gearing

0.6

0.4

0.2

0.4

0.1

Solvency ratio (%)

30.2

30.7

30.8

33.2

36.4

Average no. of full-time employees

Principal figures and key ratios are defined and calculated in accordance with the CFA Society Denmark’s current
version of “Recommendations & Ratios”.
*In assessing the result, it must be taken into account that the shareholders of the company are also partners in
the company and that the remuneration to these is dependent on profits. The remuneration is expensed under
personnel costs.												
						
						

Credit vary with seasonal fluctuations in the business from DKK 150m to DKK 565m.
66

67

Annual Report 2017/18 | Financial statements

Annual Report 2017/18 | Accounting policies in general

Summary of notes
to the accounts

0.
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8

Accounting policies in general
Framework
Changes in accounting policies
Basis of accounting
Significant financial reporting estimates and judgements
Foreign currency translation
TaxationStandards and interpretations not yet in force
Materiality in financial reporting

1.
1.1
1.2
1.3
1.4
1.5

Operating profit or loss
Revenue
Staff costs
External expenses
Depreciation and amortisation
Special items

2.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9

Operating assets and liabilities
Goodwill
Other intangible assets
Property, plant and equipment
Non-current financial assets
Receivables
Contract work in progress
Employee liabilities
Provisions
Rental and lease obligations

3.
3.1
3.2
3.3
3.4
3.5
3.6
3.7

Capital structure and financing
Share capital
Dividend
Financial liabilities
Financial instruments and risks etc.
Cash and cash equivalents
Financial income
Financial expenses

4.
4.1
4.2
4.3
4.4
4.5
4.6

Other notes
Acquisition and divestment of businesses
Contingent liabilities etc.
Fees to the auditor elected at the Annual General Meeting
Related parties
Authorisation of the Annual Report for issue
Events after the balance sheet dateNotes, description of accounting policies and description of significant accounting estimates and judgements madein connection with the financial statements are divided into four sections describing the various parts of the financial
statements, including the individual items. This breakdown means that accounting policies, significant accounting estimatesand monetary specifications are presented together for the individual areas and items.
For reasons of clarity, descriptions are marked as follows:

§

!
§

68

§

Accounting policies

!

#

#

Significant accounting estimates and judgements

!

Risk

#
69

Annual Report 2017/18 | Accounting policies in general

0. Accounting policies in general§

0.5 Foreign currency translation
On initial recognition, foreign currency transactions are translated at the exchange rate on thetransaction date. Receivables, payables and other monetary items denominated in foreign currency thathave 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 and thebalance sheet date, respectively, are recognised in the income statement as financial income or financial
expenses.

The financial statements for 2017/18 are prepared in accordance with International Financial ReportingStandards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual
reports of for reporting class C (large) enterprises, see the Danish Executive Order on IFRS adoption
issued in accordance with the Danish Financial Statements Act.

§

0.6 Taxation
As a limited partnership company, the Company is not an independent taxpayer, as the liability to pay
tax falls on the Company's shareholders. Therefore, no current tax or deferred tax is recognised in thefinancial statements.

§

0.2 Changes in accounting policies
A number of new and amended Standards and Interpretations have come into force for financial years
beginning on or after 1 June 2017. The adoption thereof has not had any effect on these accounting
policies, which thus remain unchanged from last year.

§

0.7 Standards and interpretations not yet in force
At the time of presentation of the 2017/18 Annual Report, 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 financial years that begin after 31 May 2018, among them, IFRS 9,IFRS 15 and IFRS 16. These Standards and Interpretations have, therefore, not been applied in the
preparation of the financial statements for the current year.

§

0.3 Basis of accounting
The financial statements are presented in Danish kroner, which is the Company's functional currency.

§

0.1 Framework
Deloitte Statsautoriseret Revisionspartnerselskab (“the Company") is a limited partnership company
domiciled in Denmark.

!

!

!

#

#

#

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

#

0.4 Significant financial reporting estimates and judgements
When recognising and measuring items in the financial statements, it is necessary in certain
circumstances to make estimates and judgements, and to make assumptions about future events.
These estimates, judgements 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 judgements.
The estimates and judgements made and the underlying assumptions are reviewed on an ongoingbasis. Changes to accounting estimates and judgements are recognised in the accounting period inwhich such changes occur and in future accounting periods if they affect those periods.
In preparing the financial statements, significant accounting estimates and judgements have been madefor the following elements:• Determination of the sales value of contract work in progress (Notes 1.1 and 2.6)
• Special items (Note 1.5)
• Review of goodwill for impairment (Note 2.1)

70

Annual Report 2017/18 | Accounting policies in general

!

!

!

#

#

#

IFRS 15 Revenue from Contracts with Customers and associated Clarifications will be used by the Company
from and including the financial statements for 2018/19. The basic principle of IFRS 15 is that revenue
must be recognised in a manner that reflects the transfer of goods or services to customers by anamount equal to the consideration that the Company expects to be entitled to receive for the delivery of
those goods and services. The Company has largely completed an analysis of its current revenue flows
in relation to the provisions of IFRS 15 and, based on the work done so far, estimates that the bulk of theCompany's revenue qualifies for continued recognition over time and that the implementation of IFRS
15 will not have a significant impact on the Company's future financial statements. The Company will
implement IFRS 15 using the modified retrospective method and will record the cumulative effect, if any,of initially applying the Standard to ongoing contractual arrangements at 1 June 2018 as an adjustment
to retained earnings as of that date.
IFRS 9 Financial Instruments will be applied by the Company from and including the financial statementsfor 2018/19. IFRS 9 deals with the classification and measurement of financial assets and liabilities, andthe Standard also includes amended provisions relating to hedge accounting and impairment of financial
assets. The Company has analysed the effect of a transition from the current "incurred credit loss
model" for recognising losses on receivables to the "expected credit loss model" required by IFRS 9. The
total write-down using the simplified method of recognising impairment is expected to be marginally
increased as a result of the fact that the write-down to expected losses – calculated using assessed loss
rates for categories of receivables based on historical experience corrected for current market

71Annual Report 2017/18 | Accounting policies in general§

Annual Report 2017/18 | Operating profit or loss

1. Operating profit or loss

0.7 Standards and Interpretations not yet in force (cont.)
conditions and expectations for the future – will be recognised already at the time of recognition of
the receivables. Based on this analysis, the Company, therefore, believes that this change will notsignificantly affect its future financial statements. The Company has no financial liabilities whose
measurement will be affected by IFRS 9, and it does not use hedge accounting.

!

#

§

IFRS 16 Leases will be applied by the Company from and including the financial statements for 2019/20.
IFRS 16 deals with the accounting treatment of leases and involves for the lessee that all lease contracts(other than short-term lease contracts or those relating to low-value assets) must be recognised in thebalance sheet as a right-of-use asset and a corresponding lease liability and that recognised right-of-use
assets must be depreciated in the same way as other non-current assets. The accounting treatment ofleasing in the lessor’s financial statements is substantially unchanged compared to the current IAS 17.
The Company has started analysing the impact of the implementation of IFRS 16, but detailed andcomplete quantitative assessments of the impacts upon transition have not yet been finalised. The
Company will implement IFRS 16 using the modified retrospective method and will on transition
measure the right-of-use assets at an amount equal to the lease liabilities and thus will record no effecton retained earnings at 1 June 2019. As at 31 May 2018, the Company has non-cancellable operatinglease obligations of DKK 600m (see Note 2.9). The Company has not yet determined to what extent
these obligations will result in the recognition of an asset and a liability for future payments and how thiswill affect the Company’s statement of comprehensive income and classification of cash flows.
Other new and amended Standards and Interpretations are not expected to have a significant impact
on future financial statements.

#

0.8 Materiality in financial reporting
In connection with the preparation of the Annual Report, Management assesses how the Annual Reportis to be presented. In this connection, much importance is attached to the content being relevant tothe users.

1.1 Revenue
Accounting policies
Revenue from the sale of services is recognised in profit or loss as and when the service agreed
is provided, whereby revenue equals the sales value of the work performed during the year (thepercentage-of-completion method). Recognition at sales value is based on the assumption that the
total revenue and expenses as well as the percentage-of-completion at the balance sheet date can bereliably determined and that it is probable that payment will be received.

!

#

Revenue from deliverables whose sales value is conditional on the outcome of future events, including
success fees for transaction service advisory, is not recognised until the events in question occur.
Revenue comprises the re-invoicing of work performed by subcontractors in so far as the Company
has control over and is responsible for the delivery to the client and carries the associated debtor risk.

§

!

#

Significant accounting estimates and judgements
Sales value of contract work in progress
Contract work in progress in the form of agreed incomplete service deliverables is recognised at thesales value of the work carried out at the balance sheet date based on time spent and Management's
assessment of the fee value thereof.
At 31 May 2018, the amount of recognised contract work in progress at sales value totalled DKK
1,704.5m before offsetting of amounts invoiced on account (31 May 2017: DKK 1,347.3m).

Thus, when presenting the statement of comprehensive income, balance sheet, statement of changes
in equity and cash flow statement of the financial statements, it is assessed whether a need exists todisaggregate financial statement items further or whether it is more appropriate to aggregate amounts
etc. and thereby to enhance transparency. When preparing the accompanying notes to the financial
statements, the focus is on the content being relevant to the users and on the notes being presented ina 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 objectivethat the 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 financial statements.

72

73

Annual Report 2017/18 | Operating profit or loss

Annual Report 2017/18 | Operating profit or loss

1.1 Revenue (cont.)
2017/18
DKK'm

1.3 External expenses
External expenses for the financial year comprise costs of administration, premises, training andcontinuing education, marketing, bad debts, etc. and work carried out by subcontractors.		

2016/17
DKK'm

Revenue
Revenue arises from audit and advisory services and the bulk of it from services provided in Denmark.
Work carried out by subcontractors, including other Deloitte member firms
Work completed for the year

3,071.6

3,105.9

Contract work in progress at 31.05.2018, cf. Note 2.6

1,704.5

1,347.3

Contract work in progress at 01.06.2017, cf. Note 2.6(1,347.3)(1,362.3)

3,428.8

3,090.9

1,305.3

1,364.9

Risk Advisory

234.9

220.5

Tax & Legal

417.1

394.2

Financial Advisory

223.4

201.7

Consulting

1,248.1

909.6

3,428.8

3,090.9

Revenue is broken down by business units as follows:
Audit & Assurance

§

568.5

283.9

!

#

Intellectual property rights
Completed development projects Operating equipment and fixtures 

1–10 years
10 years
3-8 years

The maximum depreciation period for leasehold improvements is the agreed lease period.
Depreciation and amortisation methods, useful lives and residual values are reviewed annually.
2017/18
DKK'm

2016/17
DKK'mIntellectual property rights

8.9

7.8

Completed development projects

11.4

11.4

Depreciation and amortisation

2017/18
DKK'm

2016/17
DKK'm

Leasehold improvements

1.5

1.4

Operating equipment and fixtures

12.3

13.7

2,101.9

2,090.1

Profit or loss on sale of non-current assets

0.9

0.5

Long-term employee liabilities, refer to Note 2.7

(0.3)

0.2

35.0

34.8

Other social security costs

17.9

16.9

Salaries and remuneration to partners

Other staff costs

58.0

49.3

2,177.5

2,156.5

Average no. of full-time employees

2,513

2,553

No. of employees at year-end

2,717

2,741

-

12.7

96.6

74.8

Remuneration to the Executive Board
Total remuneration to Key Management incl. remuneration
to the Executive Board

74

2016/17
DKK'm

1.4 Depreciation and amortisation
Accounting policies
Intangible assets are amortised and items of property, plant and equipment are depreciated on astraight-line basis over their expected useful lives, which are as follows:					
1.2 Staff costs
Staff costs comprise salaries, remuneration and social security costs etc. for the financial year for theCompany’s employees and partners, less refunds etc. received from public authorities. Staff costs also
include the costs in the financial year for jubilee benefits.

2017/18
DKK'm

75

Annual Report 2017/18 | Operating profit or loss

Annual Report 2017/18 | Operating assets and liabilities§

1.5 Special items
Accounting policies
Special items are used to present exceptional profit or loss items that are not expected to be of arecurring nature and due to their size or nature differ with respect to the profit fluctuations generally
expected in the Company, including gains or losses resulting from strategic restructuring decisions etc.

#

Significant accounting estimates and judgements
Presentation of special items
The classification of items as "special items" is based on Management's judgement of whether or not
the items in question are expected to be recurring, and whether, by their size or nature, they differ withrespect to the profit fluctuations that can be generally expected in the Company.
		!

2. Operating assets and liabilities#

2017/18
DKK'm

2016/17
DKK'mProfit on divestment of activities

13.1

17.4

Profit on disposal of client relationships

3.4

2.8

Provision for onerous property lease contracts

(2.0)

(2.3)

14.5

17.9

§

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

!

#

Goodwill is not amortised, but tested annually at financial year-end for impairment, based ona determination of the recoverable amount for goodwill, see below. The recoverable amount isdetermined 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 therecoverable amount.
The recoverable amount is determined as the value in use of the cash-generating units to which theamounts of goodwill are allocated. When determining the value in use, estimated future cash flows are
discounted to present value.

§

!

#

Significant accounting estimates and judgements
Impairment requirements
The determination of the values 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 financial
statements in terms of whether an impairment loss should be recognised and, if applicable, by whatamount.
The carrying amount of goodwill amounts to DKK 500.0m at 31 May 2018 (31 May 2017: DKK 509.1m).
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 thedefined cash-generating units, see the description below.

76

77

Annual Report 2017/18 | Operating assets and liabilities

Annual Report 2017/18 | Operating assets and liabilities

2.1 Goodwill (cont.)§
Goodwill
DKK'm

Cost at 01.06.2016

511.9

Additions

2.8

Disposals regarding divestment of businesses(3.6)

Transferred to assets classified as held for sale

(2.0)

Cost at 31.05.2017

509.1

Carrying amount at 31.05.2017

509.1

Cost 01.06.2017

509.1

Additions

0.5

Transferred to assets classified as held for sale

(9.6)

Cost at 31.05.2018

500.0

Carrying amount at 31.05.2018

500.0

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

31.05.2018
DKK'm

31.05.2017
DKK'm

Audit & Assurance

374.3

383.9

Risk Advisory

25.1

25.1

Tax & Legal

18.6

18.6

Financial Advisory

0.5

0.0

Consulting

81.5

81.5

500.0

509.1

!

#

2.1 Goodwill (cont.)
Determination of recoverable amount
When determining values in use, the expected future cash flows have been used that can be derived
from management-approved budgets for the coming financial year. These budgets have been projected
for the following four financial years using estimated growth rates etc., so that the budget andforecast periods cover a total of five financial years. 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 shareholding partners is included at an
estimated amount based on the average remuneration to non-shareholding partners.
The main uncertainties in determining the value in use are related to the determination of discountrates, growth rates and earnings margins in the budget and forecast periods as well as in theterminal period.
The discount rates determined reflect the risk-free interest rate at the balance sheet date and theestimated specific risks associated with the assets and cash flows of each cash flow-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 on Audit & Assurance and Risk Advisory
is 9.3% (2016/17: 9.2%). For Tax & Legal, Consulting and Financial Advisory, the discount rates used
are 9.5%, 10.0% and 10.2%, respectively (2016/17: 9.5% and 9.9%, respectively, for Tax & Legal andConsulting. Value in use for Financial Advisory was not calculated).
The growth rates and earnings margins used are based on Management's expectations for thedevelopment of the respective business units during the budget and forecast periods and the terminal
period. These expectations are based on previous experience, defined strategic goals etc.
The terminal period growth rates set are not estimated to exceed the average long-term growth rates
for the markets as a whole. The terminal period growth rates are 1.5% (2016/17: 1.5%).

Goodwill

78

79

Annual Report 2017/18 | Operating assets and liabilities§

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

!

#

Development projects on clearly defined and identifiable systems and processes etc., for which thetechnical utilisation rate, sufficient resources and future economic benefits can be established andwhere 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 as and when incurred.
The cost of development projects comprises costs, including salaries and depreciation or amortisationof assets, that are directly attributable to the development projects. Amortisation of completeddevelopment projects commences when the asset is put into service.

Annual Report 2017/18 | Operating assets and liabilities

2.2 Other intangible assets (cont.)
Intellectual
property rights
DKK'm

Completeddevelopment projects
DKK'm

Cost at 01.06.2016

52.8

115.5

Additions

5.7

0.0

Cost at 31.05.2017

58.5

115.5

Amortisation and impairment losses at 01.06.2016(14.3)(65.2)

Amortisation for the year

(7.8)

(11.4)

Other intangible assets

Amortisation and impairment losses at 31.05.2017(22.1)(76.6)

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

Carrying amount at 31.05.2017

36.4

38.9

Other intangible assets are reviewed annually for indication of impairment. In-progress development
projects are tested once a year for impairment. Impairment tests are carried out applying the same
policies as described above for goodwill.

Cost at 01.06.2017

58.5

115.5

Additions

10.9

0.0

Cost at 31.05.2018

69.4

115.5

Amortisation and impairment losses at 01.06.2017(22.1)(76.6)

Amortisation for the year

(8.9)

(11.4)

Amortisation and impairment losses at 31.05.2018(31.0)(88.0)

Carrying amount at 31.05.2018

38.4

27.5

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

80

81

Annual Report 2017/18 | Operating assets and liabilities§

Annual Report 2017/18 | Operating assets and liabilities

2.3 Property, plant and equipment
Accounting policies
Leasehold improvements, operating equipment and fixtures are measured at cost less accumulated
depreciation and impairment losses.

!

#

Cost comprises the acquisition price, costs directly related to the acquisition, and costs for preparing theasset up to the date when the asset is ready to be put into operation.
The depreciation basis is the asset's cost net of its expected residual value after the end of its usefullife. Assets are depreciated on a straight-line basis over their expected useful lives, refer to Note 1.4. It isassessed annually whether any changes to residual values and depreciation periods should be made.
Items of property, plant and equipment are reviewed annually for indication of impairment. Impairment
tests are carried out applying the same policies as described above for goodwill.

82

Leaseholdimprovements
DKK'm

Operating equipment
and fixtures
DKK'm

Cost at 01.06.2016

13.9

152.8

Additions

3.8

28.9

Disposals(2.4)(38.8)

Cost at 31.05.2017

15.3

142.9

Depreciation and impairment losses at 01.06.2016(5.5)(116.3)

Depreciation for the year

(1.4)

(13.7)

Reversal regarding disposals

2.0

27.7

Depreciation and impairment losses at 31.05.2017(4.9)(102.3)Carrying amount at 31.05.2017

10.4

40.6

Cost at 01.06.2017

15.3

142.9

Additions

1.4

9.5

Disposals

0.0(12.8)

Cost at 31.05.2018

16.7

139.6

Depreciation and impairment losses at 01.06.2017(4.9)(102.3)

Depreciation for the year

(1.5)

(12.3)

Reversal regarding disposals

0.0

7.6

Depreciation and impairment losses at 31.05.2018(6.4)(107.0)Carrying amount at 31.05.2018

10.3

32.6

§

2.4 Non-current financial assets
Accounting policies
Non-current financial assets consist of investments in associates and deposits in connection with the
inception of lease contracts, which are repaid when such contracts expire. As a rule, the deposits areindexed on an annual basis. The amounts are recognised as collateral and are measured at cost.

!

#

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 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 2017/18 (2016/17: DKK 0.0m). The shareof the companies' total equity is DKK 0.1m (31 May 2017: DKK 0.1m), which has been recognised as a
non-current financial asset.
Deloitte Statsautoriseret Revisionspartnerselskab holds all of the shares in the subsidiary Deloitte
Pension Management Brokers P/S, registered in Copenhagen. Since its foundation in 2014, the company
has only had limited activities. The company's net loss for 2017/18 amounts to DKK 0.1m (2016/17: aloss of DKK 2.8m), which has been recognised in the respective line items in the parent statement ofcomprehensive income. Net assets at 31 May 2018 total a negative DKK 12.7m (31 May 2017: a negative
DKK 12.6m), which has been recognised in the respective line items in the parent balance sheet.

83

Annual Report 2017/18 | Operating assets and liabilities§

Annual Report 2017/18 | Operating assets and liabilities

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

!

2.6 Contract work in progress (cont.)#

On initial recognition, receivables are measured at fair value and subsequently at amortised cost, whichusually equals the nominal value less any write-downs for bad debts. Write-downs of trade receivables
are recognised in a separate allowance account based on Management's assessment of each receivable.
Refer also to Note 3.4 for a description of credit risks.

2017/18
DKK'm

2016/17
DKK'm

Trade receivables

759.2

669.3

Allowance account(14.8)(17.4)Net trade receivables

744.4

651.9

Allowance account at 01.06.2017

17.4

18.8

Losses incurred in the year

(2.6)

(5.8)

Net write-down for the year

0.0

4.4

Allowance account at 31.05.2018

14.8

17.4

No write-down of other receivables has been made.

§2.6 Contract work in progress
Accounting policies
Contract work in progress is measured according to the percentage-of-completion method at the sales
value of the work performed at the balance sheet date, net of amounts invoiced on account.

!

#2017/18
DKK'm

2016/17
DKK'm

Contract work in progress at sales value

1,704.5

1,347.3

Invoiced on account(1,423.3)(1,146.9)

281.2

200.4

Contract work in progress, assets

318.4

243.8

Contract work in progress, liabilities(37.2)(43.4)

281.2

200.4

Contract work in progress:

Net value is recognised in the balance sheet as follows:§

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

!

#

Provisions for jubilee benefits etc.
It is the Company’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 Company's partners and employees are recognised based on an actuarial calculation of thepresent value of expected jubilee benefits based on the current salary levels as well as expected futuresalary increases and time of termination of service.

Each contract in progress is recognised in the balance sheet in receivables or liabilities, depending onwhether the net asset value, calculated as the sales value less amounts invoiced on account, is positiveor negative.

#

84

Significant accounting estimates and judgements
The sales value of the work carried out at the balance sheet date is determined based on time spent andManagement's assessment of the fee value thereof.

2017/18
DKK'm

2016/17
DKK'm

Provisions for jubilee benefits at 01.06.2017

10.2

10.5

Adjustment for the financial year

0.7

0.7

Interest expenses

0.2

0.2

Actuarial (gains)/losses

(1.1)

(0.6)

Jubilee benefits paid

(0.6)

(0.6)

Provision for jubilee benefits at 31.05.2018

9.4

10.2

Long-term employee liabilities at 31.05.2018

9.4

10.2

Recognised in staff costs for the financial year

(0.3)

0.2
85

Annual Report 2017/18 | Operating assets and liabilities§

Annual Report 2017/18 | Operating assets and liabilities

2.8 Provisions
Accounting policies
Provisions comprise expected costs in connection with known professional liability claims and onerous
lease contracts for which the decision has been made to vacate the premises.

!

#

2.9 Rental and lease obligations
The Company has entered into property lease contracts as well as operating lease contracts regarding
copiers/printing equipment and vehicles.
The Company has lease obligations relating to properties subject to a non-cancellable period of
between 0 month and 20 years. Other lease contracts can be terminated by giving a notice of up to 51
months. Certain lease contracts stipulate annual rent adjustments relative to price indexes etc., butwhich by themselves have negligible effects on the financial statements.

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 specificcircumstances in each case and after offsetting any insurance cover.
Provisions for lease contracts are measured as the contractual rental obligation for the remaining noncancellable period, reduced by Management's best estimate of any sublease income.
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.

2017/18
DKK'm

2016/17
DKK'm

Minimum rental and lease payments

94.2

104.0

Sublease income

(3.2)

(2.7)

Rental and lease payments recognised in profit or loss

91.0

101.3

2017/18
DKK'm

2016/17
DKK'm

Within 1 year

94.2

98.1

Professional liability claims at 01.06.2017

4.8

13.5

Between 1-5 years

287.5

245.8

Used in the financial year

(0.1)

(0.7)

More than 5 years

Reversed in the financial year

(3.4)

(11.0)

Provisions in the financial year

2.1

3.0

Professional liability claims at 31.05.2018

3.4

4.8

Onerous lease contracts at 01.06.2017

1.7

0.0

Used in the financial year

(1.0)

0.0

Provisions in the financial year

2.0

2.2

Transferred to liabilities related to assets classified as held for sale

0.0

(0.5)

Onerous lease contracts at 31.05.2018

2.7

1.7

Provisions at 31.05.2018

6.1

6.5

Future minimum rental and lease payments fall due as follows:

218.4

72.9

600.1

416.8

Out of the future minimum rental and lease payments, DKK 2.7m (2016/17: DKK 2.2m) has beenrecognised as onerous property lease contracts, refer to Note 2.8.

The outcome and timing of settlement of professional liability claims is inherently uncertain, but
the claims are assessed as being settled in full within the next three to four years. The liabilities arepresented after offsetting insurance cover, as information about expected claims etc. is considered toseriously prejudice the position of the Company. Onerous property lease contracts are expected to besettled within the next one to two years.

8687Annual Report 2017/18 | Capital structure and financing

Annual Report 2017/18 | Capital structure and financing

3. Capital structure and financing§

3.1 Share capital
2017/18
DKK'm

2016/17
DKK'm

42.0

42.0

42.0

42.0

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

!

#

On initial recognition, financial liabilities are measured at fair value, which usually corresponds tothe proceeds received, less any transaction costs. Subsequently, such liabilities are measured atamortised cost.
2017/18
DKK'm

2016/17
DKK'm

VAT, A tax and social security contributions

84.0

89.3

Other expenses payable

24.0

33.1

Other liabilities at 31.05.2018

108.0

122.4

The share capital is made up of:
A shares, 105 shares at a nominal value of DKK 0.4m§

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 2017/18, the Board of Directors has proposed a dividend of DKK 60.4m (2016/17:
DKK 57.7m, equivalent to DKK 0.6m per share (2017/18: DKK 0.6m per share), which will be paid to theshareholders after the Company's Annual General Meeting on 30 October 2018, provided that theAnnual 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 2018.

Financial liabilities at 01.06.2017, not included in cash and cash equivalents,
refer to Note 3.5

99.1

Net repayments in the financial year

(18.4)

Financial liabilities at 31.05.2018, not included in cash and cash
equivalents, refer to Note 3.5

80.7

3.4 Financial instruments and risks etc.
2017/18
DKK'm

2016/17
DKK'm

Trade receivables

744.4

651.9

Receivables from associates

43.1

49.4

Other receivables

48.6

65.5

Cash

2.2

18.3

Loans and receivables

838.3

785.1

Financial liabilities

331.4

279.7

Trade payables

148.2

83.0

Other debt

108.0

122.4

Financial liabilities measured at amortised cost

587.6

485.1

Categories of financial instruments

The fair value of financial instruments is estimated to be equivalent to the carrying amount.

8889

Annual Report 2017/18 | Capital structure and financing!

Annual Report 2017/18 | Capital structure and financing

3.4 Financial instruments and risks etc. (cont.)
Policy for managing financial risks
Management continuously monitors the Company's financial risks and coordinates its cash
management, including funding. The Company is not exposed to significant financial risks, see below.

Credit risks
As a result of its operations, the Company is exposed to credit risks, which mainly relate to tradereceivables, including contract work in progress, and bank deposits. The maximum credit risk is
consistent with the carrying amount of these items.

Currency risks
The Company's sales transactions are mainly conducted in Danish kroner. 6% of total revenue isdenominated in foreign currencies (2017/18: 10%), primarily in USD, EUR and GBP.

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

#

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 82.0m, in EUR they totalled DKK 308.0m and in GBP they totalled DKK 278.0m (2016/17: DKK 79.0m
in USD, DKK 125.0m in EUR and DKK 62.0m in GBP). At the balance sheet date, the Company has net
receivables of DKK 6.3m in USD (2016/17: net receivables of DKK 2.8m), net receivables of DKK 78.1m
in EUR (2016/17: net receivables of DKK 101.2m) and net payables of DKK 25.6m in GBP (2016/17: net
payables of DKK 6.4m).
The currency risk is not considered significant enough for transactions to be hedged. Likely changes
in exchange rates at the balance sheet date would only have an insignificant impact on the Company's
earnings and equity.
Interest rate risks
As a result of its financing activities, the Company is exposed to fluctuations in interest rate levels in
Denmark. The interest rate risk has not been hedged. The Company's net interest-bearing debt at thebalance sheet date consists of floating-rate liquid assets (bank deposits) of DKK 2.2m (2016/17: DKK
18.3m) and financial liabilities of DKK 331.4m (2016/17: DKK 247.5m). All things being equal, earnings
and equity would be affected by DKK 1.6m (2016/17: DKK 1.6m), if the interest rate increases by 0.5
percentage point.

Trade receivables are monitored on an ongoing basis, including an individual assessment of the risk of
bad debts.
Before write-down, trade receivables amount to DKK 759.2m at 31 May 2018 (31 May 2017: DKK
669.3m). These receivables have been written down by a total of DKK 14.8m (31 May 2017: DKK 17.4m)
to match the current loss risk, refer to Note 2.5. Impairment losses amount to an average of 2.0% of thereceivables estimated to involve a loss risk (31 May 2017: 2.6%). The Company’s overdue receivables,
which have not been written down for bad debts, total DKK 179.7m at 31 May 2018 (31 May 2017: DKK
176.0m), of which DKK 60.2m is older than 30 days (31 May 2017: DKK 98.2m).
Liquidity risks
The Company has primarily financed its activities through overdraft facilities with credit institutions withrelated undrawn credit facilities and other short-term financial liabilities.
The Company's activities are not deemed to involve any particular liquidity risk. The Company's
borrowing and credit facilities are not subject to special terms or conditions.
The Company's financial liabilities fall due as specified below, where the amounts reflect the nondiscounted nominal amounts that fall due in accordance with the contracts entered into, including
future interest payments calculated based on current market conditions.
Because of, for example, seasonal fluctuations in the Company's activities, its liquidity requirements
vary over the financial year. Allowance is made for these seasonal fluctuations by securing sufficientcredit facilities etc. In addition, the shareholding partners’ remuneration is profit-related, and theCompany's liquidity requirements to settle this remuneration is, therefore, dependent on the results
realised by the Company.

90

91

Annual Report 2017/18 | Capital structure and financing

Annual Report 2017/18 | Capital structure and financing

3.4 Financial instruments and risks etc. (cont.)
Liquidity risks (cont.)§
Carrying
amount31.05
DKK'm

0-1 year
DKK'm

1-5 year
DKK'm> 5 year
DKK'm

Total
31.05
DKK'm

Financial liabilities

320.6

9.5

25.6

355.7

331.4

Trade payables

148.2

0.0

0.0

148.2

148.2

Other payables

108.0

0.0

0.0

108.0

108.0

Employee liabilities

620.4

0.0

0.0

620.4

620.4

1,197.2

9.5

25.6

1,232.3

1,208.0

2017/18

Financial liabilities etc.

3.5 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 arepresented using the indirect method.

!

#

Cash and cash equivalents comprise cash and overdraft facilities that form part of the ongoing cash
management process

2017/18
DKK'm

2016/17
DKK'm

2.2

18.3

Current financial liabilities (overdraft facilities)(250.7)(180.5)

Cash equivalents(248.5)(162.2)

Cash2016/17
Financial liabilities

255.7

16.9

29.4

302.0

279.7

Trade payables

83.0

0.0

0.0

83.0

83.0

Other payables

122.4

0.0

0.0

122.4

122.4

Interest income

1.2

1.0

Employee liabilities

635.7

0.0

0.0

635.7

635.7

Net foreign currency translation adjustments

1.5

1.7

1,096.8

16.9

29.4

1,143.1

1,120.8

Financial income

2.7

2.7

Interest expenses

7.1

5.7

Financial expenses

7.1

5.7

Financial liabilities etc.

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

92

3.6 Financial income

3.7 Financial expenses

93Annual Report 2017/18 | Other notes

Annual Report 2017/18 | Other notes

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 timeof acquisition, which is the date when the control of the business is actually acquired, and by using
the purchase method under which the newly acquired businesses' identifiable assets, liabilities andcontingent 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. Costs directly attributable to the acquisition of the business are recognised in profit orloss as and when incurred.

Divestment of businesses
It is part of our strategy to aim to gather our activities in eight nationwide offices. As a result, theactivities of one of our offices were divested with effect from 1 May 2017, and the activities of two otheroffices have been divested with effect from 1 July 2017 and 1 August 2017, respectively. Net assets inbusinesses divested in 2017/18 amounted to DKK 2.0m. Total cash flows in 2017/18 from divestmentsof businesses amounted to DKK 30.4m, of which DKK 10.0m related to divestments in 2017/18 and DKK
20.4m related to divestments in 2016/17.
After the balance sheet date, our Slagelse office activities were divested with effect from 1 August 2018with an expected profit of approx. DKK 10m.

4.2 Contingent liabilities etc.
Bank guarantees of DKK 2.5m have been provided for property lease contracts etc. (2016/17: DKK 2.5m).
Deloitte Statsautoriseret Revisionspartnerselskab has issued a letter of support for its subsidiary Deloitte
Pension Management Brokers P/S. The subsidiary has been recognised as described in Note 2.4.
The Company is party to various lawsuits and disputes. Provisions have been made for estimated costs
related to known claims for damages, refer to Note 2.8.

If the final amount of the consideration agreed is conditional on one or more future events, theconsideration payable is recognised at fair value at the acquisition date. Subsequent changes therein arerecognised 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 cashgenerating units, which are consistent with the Company's business units. This allocation serves as abasis 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 ofdivestment, 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 fairvalue 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 orlosses are recognised in profit or loss at the date of divestment.
Business acquisitions
After the balance sheet date, the Company acquired in June 2018 the consulting company Struensee &Co. The acquisition is not considered to have a significant impact on the financial statements.

94

95

Annual Report 2017/18 | Other notes

Annual Report 2017/18 | section marker

4.3 Fees to the auditor elected at the Annual General Meeting
Other external expenses include fees to the Company’s auditor elected at the Annual General Meetingin the amount of:2017/18
DKK'm

2016/17
DKK'm

Statutory audit

0.5

0.5

Other assurance engagements

0.0

0.0

0.5

0.5

Other external expenses include fees to the Company’s auditor
elected at the Annual General Meeting in the amount of:

4.4 Related parties
Related parties
No party has control of the Company.
Related party transactions
Remuneration to Key Management is disclosed in Note 1.2.

Digital edition available on

impactreport.deloitte.dk

Key Management has directly or indirectly received dividend, refer to Note 3.2.
Interest-bearing debt to Key Management at 31 May 2018 amounts to DKK 5.4m (31 May 2017: DKK5.4m). The related interest expenses amount to DKK 0.1m for 2017/18 (2016/17: DKK 0.1m).
Receivables from associates at 31 May 2018 total DKK 43.1m (31 May 2017: DKK 49.4m).
Deloitte Denmark General Partner ApS is a general partner of the Company and has received apayment of DKK 3k for its general partner liability for the financial year 2017/18.

4.5 Authorisation of the Annual Report for issue
The Board has authorised this Annual Report for issue at the Board meeting on 22 August 2018. The
Annual Report will be submitted to the Company's shareholders for adoption at the Annual General
Meeting on 30 October 2018.

4.6 Events after the balance sheet date
Except for the acquisition and divestment of activities described in Note 4.1, no events have occurredfrom the balance sheet date and until the date of issue that would influence the evaluation of thisAnnual Report.

96

97Annual Report 2017/18 | Deloitte offices in Denmark

Deloitte offices
in Denmark
Esbjerg
Dokken 86700 Esbjerg
Phone +45 79 12 84 44
esbjerg@deloitte.dk

AalborgØstre Havnepromenade 26, 4th floor
9000 Aalborg
Phone +45 98 79 60 00
aalborg@deloitte.dk

Kolding
Egtved Allé 46000 Kolding
Phone +45 75 53 00 00
kolding@deloitte.dk

AarhusCity TowerVærkmestergade 2
8000 Aarhus C
Phone +45 89 41 41 41
aarhus@deloitte.dk

Copenhagen
Weidekampsgade 62300 Copenhagen S
Phone +45 36 10 20 30
koebenhavn@deloitte.dk
OdenseTværkajen 55100 Odense C
Phone +45 63 14 66 00
odense@deloitte.dk
Silkeborg
Papirfabrikken 26
8600 Silkeborg
Phone +45 89 20 70 00
silkeborg@deloitte.dk

98

Nuuk
Imaneq 33, 6th-7th floor
3900 Nuuk
Phone +299 32 15 11
nuuk@deloitte.dk

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