cBrain A/S · Kalkbrænderiløbskaj 2 · DK-2100 Copenhagen, Denmark · CVR no. 24233359
January 1 – June 30, 2024
Interim
Report
2024
2 | Interim Report | 2024
Democratizing IT Modernization
While governments around the world
increase their investment in digital
transformation and the IT industry expands to meet the demand, the
shortage of skilled IT professionals is often cited as a key factor in delays
or failures in IT modernization projects.
The emergence of commercial off-the-shelf software (COTS) for
government addresses the labor gap. Standard software and tools like F2
and the F2 Service Builder enable users without a technical background to
manage much of the IT work, reducing the demand for skilled IT
resources.
This makes COTS for government an industry game-changing
technology. By democratizing IT modernization and reducing the demand
for skilled IT resources, COTS for government simultaneously lowers
costs and accelerates successful digital transformation, becoming a key
enabler for government transformation.
3 | Interim Report | 2024
Content
Democratizing IT Modernization .............................................................................................................. 2
On track with Growth Plan .......................................................................................................................... 4
Financial Highlights ........................................................................................................................................ 9
Financial Remarks ....................... ............................................ ............................................ ........................... 11
Risk Management.......................................................................................................................................... 13
Our Business .......................... ................................. .................................. ................................. ...................... 14
Market and Value Proposition ................................................................................................................. 15
The F2 Software ............................................................................................................................................ 18
Customers and Growth Plan ................................................................................................................... 20
Shareholders................................................................................................................................................... 24
Statement ....................................................................................................................................................... 25
Financials...........................................................................................................................................................27
Notes ................................................................................................................................................................. 32
9
F i n a n c i al H i gh l i gh t s
1
4
O ur B u s i ne s s
2
7
Fi n a n c i a l s
9
14
27
Financial Highlights
Our Business
Financials
4 | Interim Report | 2024
On track with Growth Plan
Revenue grew by +6% to DKK 139m in the first half of 2024, up from DKK 132m in the
first half of 2023. The low half-year growth was expected due to an unusual revenue
split between the first and second half of 2023, where first-half revenue grew +39%
year over year and accounted for 55% of the total fiscal year revenue.
Danish revenue grew by +21% to DKK 87m in the first half of 2024, up from DKK 72m
in the first half of 2023, showing a stable and solid development in the Danish market.
International sales declined by -13% to DKK 52m in the first half of 2024, down from
DKK 60m in the first half of 2023. The lower international sales are due to the unusual
revenue split between the first and second half of 2023, where a large portion of total
software licenses related to international sale was recognized in the first half of 2023.
First half 2024 results show earnings before tax (EBT) of DKK 43m, down from DKK
47m in the first half of 2023. cBrain continues to deliver solid earnings with earnings
before tax margin (EBT margin) of 31%. Earnings are slightly higher than expected as
some of the international investments that were planned for in the first half of 2024
have been postponed to the second half of 2024.
cBrain is satisfied with the financial development, which is in line with expectations
and slightly ahead of the 2023-2025 growth plan.
cBrain maintains the guidance for the fiscal year 2024, with revenue growth of 20-
25% and the guided earnings before tax margin (EBT margin) of 20-25%. This is based
on continued growth in Denmark, increased international sales, and increased
investments into the growth plan in the second half of 2024.
Growth is driven by subscriptions, strategic customers and partnerships
Software subscriptions count for approximately 50% of total revenue, based on
customers renting the F2 software or having F2 software maintenance agreements.
When existing customers extend their use of F2 by adding more users or modules, or
new customers implement F2, this increases the subscription base. cBrain has long-
term contracts with most customers, and the F2 software subscription base
constitutes a solid and growing foundation for the business.
The F2 platform was built in close collaboration with a group of the Danish ministries.
cBrain continues to develop new F2 versions in close collaboration with strategic
government customers and these customers count for a majority of the revenue.
Attracting and building long-term business relations with strategic customers is
therefore core to the growth.
cBrain has a strong Danish customer base, which counts more than 75 Danish
government organizations including most ministries, and Denmark ranks number one
in the global United Nations e-government survey. With this reference position cBrain
seeks to expand internationally, using F2 climate software as a door opener and the
F2-for-Partners strategy as a key to scaling. During first half of 2024 cBrain has added
several new customers to the customer base, but most of the revenue growth comes
from existing customers.
The international growth plan is based on organic growth. When possible cBrain seeks
to build the international business in collaboration with local partners and thereby
limiting the size of the international cBrain organization. A cornerstone of the F2-for-
Partners strategy is therefore allowing partners and customers access to the F2
configuration technology and training them to set up the F2 standard software and
configure processes using the F2 Service Builder.
cBrain delivers COTS (commercial off-the-shelf software) for government
Software for government digitization represents one of the largest global markets.
Today the market is dominated by large suppliers who deliver custom-built solutions
based on integration of best-of-breed software modules and components. But many
projects fail, reporting huge delays and budget overruns due to the complexity of
delivering best-of-breed based solutions.
cBrain challenges the IT government industry by delivering standard software, often
referred to as commercial off-the-shelf software (COTS). As an alternative to best-
of-breed solutions, COTS offers major benefits for customers with respect to quality,
delivery time, and the costs of implementation and maintenance.
For historical reasons, government organizations around the world have been
reluctant to adopt standard software as part of their digitization strategy. This
reluctance is often due to internal IT organizations and procurement routines that are
set up to utilize custom-built best-of-breed solutions. However, several governments
5 | Interim Report | 2024
organizations, including a number of leading Danish government agencies, have
begun to adopt COTS and embrace the benefits of standard software.
cBrain anticipates that the shift towards COTS will eliminate much IT consulting work
and lead to a major change in the government IT industry worldwide.
cBrain has invested more than 400.000 hours in developing F2, a new generation of
government software. F2 is a complete and fully integrated digital platform, designed
and built from the start specifically for government use. Its built-in no-code/low-code
configuration tools make it easy for individuals without a technical background to
adapt F2 to meet specific customer requirements and processes.
The quality and benefits of F2 have been proven. cBrain has successfully delivered F2
to government organizations across five continents, including solutions in various
government domains such as business affairs, climate and environment, education,
energy, family, immigration, labor and market regulation, science, social affairs, and
tax.
With the F2 digital platform and a continuously strengthening reference position both
in Denmark and internationally, cBrain aims to become a leading global supplier of
COTS for government.
Increased focus on public tenders in Denmark
For the second half of 2024, cBrain expects continued growth in Denmark. This
includes expanding the list of strategic customers who extend their use of F2 by
adding more users, software modules, and processes, as well as acquiring new
customers.
Danish revenue is primarily based on procurement through the Danish government
procurement framework agreements (SKI). In addition, cBrain is strengthening its
bidding activities for larger open public tenders in Denmark. One example is the public
tender for a new Danish hunting license register, which cBrain has won and is currently
working to deliver.
While it often takes a long time to win large open public tenders, securing such
contracts can significantly boost Danish revenues. Based on early-stage success,
cBrain has therefore increased investments in bid management.
Pe r T e j s K n u d se n, C E O
a n d f o und e r o f c B r a i n
Per Tejs Knudsen, CEO and founder of cBrain
6 | Interim Report | 2024
Solid position in Germany
cBrain has successfully established itself in Germany, and in the first half of 2024,
German revenue accounted for approximately one-third of the company's total
revenue.
Due to this success, cBrain was awarded the title “Danish Company of the Year 2023”
by the German-Danish Chamber of Commerce. cBrain is now collaborating with the
German-Danish Chamber of Commerce to further develop the German market. By
reusing Danish experiences and solutions, cBrain can help accelerate the digital
transformation of the German government.
It takes a long time to attract strategic customers, but cBrain now has a foothold in
Germany and has proven that F2 can be reused for large German government
organizations. This provides cBrain with a solid reference position for taking the next
steps in Germany to further grow revenues.
Pursuing the next international strategic customers
Internationally, cBrain is working on several large projects, building a pipeline for
future strategic international clients. cBrain expects that several of these projects will
further mature during the autumn and boost international sales.
As part of this effort, cBrain is establishing a local presence in multiple countries,
combining local cBrain staff and local partners, while developing the F2-for-Partners
strategy.
Scaling international sales based on an organic growth model takes time, so cBrain is
operating and initiating sales activities across multiple geographies in parallel. During
the first half of 2024, cBrain has taken important steps in several countries. This
includes:
 California: In April, cBrain announced an agreement with local authorities in
California to deliver a digital solution supporting the GRASS-C (Growing
Responsible and Socially Sustainable Cannabis) certification program. This
expands the cBrain catalog of climate software solutions previously delivered
in California and represents the first solution delivered in the US based on the
F2 Service Builder.
 India: In September 2023, cBrain announced a joint venture in India, cBrain
Kodumburar. In February 2024, cBrain announced a Memorandum of
Understanding (MoU) with the Government of Puducherry to promote and
accelerate digital solutions in the Union Territory of Puducherry for the
sustainable development of the territory. Additionally, a MoU was signed
with the state of Tamil Nadu, aiming to establish a digital administration for
the state.
 Ghana: In March, cBrain announced that its partner, Omni Strategies, won a
public tender in Ghana to deliver an F2-based solution for the National
Communication Authority (NCA) in Accra. Using the F2 Service Builder, the
F2 platform will be configured to support facilities management within the
NCA, digitizing processes related to building and fleet management.
 Kenya: During the spring, cBrain successfully launched a solution for the
Kenya Dairy Board, a state corporation under the Ministry of Agriculture &
Livestock Development. The solution will help support quality inspections
related to milk production.
 Nigeria: In June, cBrain signed an agreement with the Ministry of Innovation,
Science and Technology in Nigeria to deliver a Proof of Concept (PoC)
project. The purpose is to deliver an F2-based solution that demonstrates
secure and transparent government procurement processes, from planning
and approval to filing and auditing, across multiple government agencies.
 Romania: cBrain's partner in Romania has delivered the first F2 solutions for
government customers, using the F2 Service Builder to support customer-
specific process requirements.
 United Arab Emirates (UAE): cBrain has just signed a contract to enter a new
partnership, supporting an agency in the UAE with their AI-driven digital
transformation. This supports the continued success of implementing the
growth plan with a special focus on climate software, while building
partnerships.
 Washington DC: In close collaboration with the Danish Environmental
Protection Agency, cBrain has developed a unique F2 solution that end-to-
end supports all functions to accelerate environmental permitting, from self-
service and process control to Artificial Intelligence (AI). Environmental
permitting is essential to the green transition, and cBrain is working with
several federal agencies in Washington DC to validate if and how the F2
permitting solution can be reused in the US.
7 | Interim Report | 2024
The first version of F2 AI Assistant was announced in April
During the spring, cBrain has marketed F2 version 11. F2 version 11 offers a long list of
new features and extension modules, and many customers have already upgraded
successfully.
In April, cBrain introduced the first version of the F2 AI Assistant. The F2 AI Assistant
is a new extension module that provides AI functionality seamlessly and fully
integrated with the F2 standard software.
The F2 AI Assistant was developed in collaboration with the Danish Ministry of
Digitization and the Danish Environmental Protection Agency, aiming to create AI
functionality specifically designed for government users and government security
requirements.
The F2 AI Assistant operates on-premises, which is essential for governments to
protect data and comply with GDPR requirements. Fully integrated with the F2
standard software, the F2 AI Assistant is context-sensitive and built to support public
administration, offering functionality that generic AI services cannot provide. Features
in the first version of the F2 AI Assistant include writing record summaries, speeches,
notes, and news.
The introduction of the F2 AI Assistant marks the beginning of a new product line of
AI extension modules for F2. In parallel with developing the F2 AI Assistant, cBrain has
delivered a number of specialized AI projects, which are being used to inspire the
design of future AI extension modules.
F2 Service Builder is a key driver for scaling
The F2-for-Partners strategy is a core element of our long-term growth plan. By
establishing an ecosystem of partners and customers who manage the consulting
work related to implementing and servicing F2 solutions, cBrain can scale its business
without revenue growth being directly constrained by the burden of organizational
expansion.
As part of the F2-for-Partners strategy, cBrain is preparing the F2 configuration
toolset for external users, with the F2 Service Builder serving as a cornerstone for this
transition.
The F2 Service Builder is an innovative and highly effective no-code/low-code
configuration tool that stands out from existing tools on the market due to its design
and architecture. It is a key technology enabler for building the F2 partner ecosystem
and is therefore a central driver of both the F2-for-Partners strategy and long-term
scaling.
The fully integrated F2 Service Builder represents
a new type of no-code/low-code tool
No-code/low-code tools are becoming popular as they allow users to create and
modify workflows and processes with minimal or no coding required. This enables
users with limited technical expertise to build and customize solutions, thereby
simplifying application development and process automation.
Most widely used no-code/low-code tools are either designed for general-purpose
use or are specialized for IT service and operations management. They are typically
developed as stand-alone software tools, integrated into a best-of-breed
environment through pre-built or open connectors, and many offer process design,
form building, and other functionalities based on a visual user interface.
F2 Service Builder differentiates itself by being fully integrated with F2 and designed
specifically for government use. Additionally, F2 Service Builder offers a user-friendly
interface that enables users with limited technical expertise to build and customize
solutions simply by filling in a spreadsheet.
The design and architecture of F2 Service Builder provide significant benefits for
government customers by eliminating integration work, optimizing system design,
and offering unique government functionality.
While integration into best-of-breed environments often complicates no-code/low-
code projects, turning them into complex IT deliveries, F2 Service Builder is delivered
out-of-the-box, fully integrated, and ready-to-run. This approach saves significant
time and eliminates the need for IT integration specialists. Furthermore, F2 Service
Builder offers deep integration into specific F2 functions, providing integrated user
functionality that is often nearly impossible to achieve within a best-of-breed
environment.
In addition to these integration benefits, F2 Service Builder simplifies and optimizes
the building of workflows through its integrated design method and user interface.
Guided by F2 Service Builder, users can create complete, ready-to-run workflows,
automated end-to-end from self-service to case management and filing, simply by
filling out pre-defined fields in a spreadsheet.
The spreadsheet interface reduces the need for user training, allows for efficient reuse
of workflows, and the design guidance is based on a best practices model for
government work, thereby supporting well-designed workflows.
8 | Interim Report | 2024
Democratizing IT Modernization
While governments around the world increase their investments in digital
transformation and the IT industry expands to meet the demand, the shortage of
skilled IT professionals is often cited as a key factor in delays or failures in IT
modernization projects.
The emergence of Commercial Off-the-Shelf Software (COTS) for government
addresses the labor gap. Standard software and tools like F2 and the F2 Service
Builder enable users without a technical background to manage much of the IT work,
reducing the demand for skilled IT resources.
This makes COTS for government an industry game-changing technology. By
democratizing IT modernization and reducing the demand for skilled IT resources,
COTS for government simultaneously lowers costs and accelerates successful digital
transformation, becoming a key enabler for government transformation.
Enabling a new type of partners
Democratizing IT modernization is a core element and a significant value
differentiator for the F2-for-Partners strategy. By enabling users with limited technical
backgrounds to participate in digital transformation, F2 not only empowers customers
but also a new type of partners who focus on transformation services.
At the heart of this democratization is the F2 Service Builder. Fully integrated with F2
and designed for government workflows, the F2 Service Builder eliminates the heavy
integration work required when using general-purpose no-code/low-code tools and
simplifies the process of configuring solutions tailored to specific governmental
needs.
By heavily reducing reliance on skilled IT resources and offering best practice
experience as an integral part of the configuration tools, the F2 Service Builder
enables a new type of partner who offers specialized government transformation
services, from advice to delivery, based on government domain expertise and without
the burden of IT development.
Consequently, the F2-for-Partners strategy, fueled by the F2 Service Builder, not only
enhances the agility of government agencies and speeds up transformation but also
allows cBrain to scale its operations without proportionally increasing its internal
resources.
cBrain announces F2 Service Builder 2
Being a key technology driver and an accelerator for the F2-for-Partners strategy,
cBrain continues to invest in the F2 Service Builder.
The first version of F2 Service Builder has been well received and has been
successfully used for solution delivery in several countries during the spring. Based on
learnings from these projects, cBrain is now developing a new and extended version,
called F2 Service Builder 2, which is planned for release in the autumn.
Per Tejs Knudsen
CEO
9 | Interim Report | 2024
Financial Highlights
T.DKK
H1 2024
H1 2023
FY 2023
INCOME STATEMENT
Revenue 139.178
131.780
239.182
Depreciation and amortization -12.026
-10.353
-21.165
Operating profit (EBIT) 43.958
48.461
85.405
Financial items, net -1.072
-1.733
-4.051
Earnings before tax (EBT) 42.886
46.728
81.354
Profit for the period 31.802
36.196
63.178
FINANCIAL POSITION
Cash and cash equivalents 1.730
3.632
9.234
Trade receivables 74.037
77.064
43.801
Total assets 371.800
364.879
340.857
Total equity 255.504
201.566
229.180
CASH FLOWS
Cash flow from operating activities 11.134
19.635
86.297
Cash flow from investing activities -12.222
-12.230
-27.107
Investments in PPE -681
-648
-703
Cash flow from financing activities -6.416
-5.998
-52.181
T.DKK
H1 2024
H1 2023
FY 2023
FINANCIAL RATIOS
Revenue growth rate 6%
39%
27%
EBIT-margin 32%
37%
36%
Return of investment (ROI) 12%
13%
24%
EBT-margin 31%
35%
34%
Liquidity ratio 170%
153%
125%
Solvency ratio 69%
55%
67%
Return on equity 14%
21%
32%
STOCK MARKET RATIOS
Number of shares 1.000 pcs. 20.000
20.000
20.000
Book Value per Share (BVPS) 12,78
10,08
11,46
Basic EPS 1,59
1,81
3,16
Diluted EPS (DEPS) 1,59
1,81
3,16
ENVIRONMENTAL AND SOCIAL DATA
Average number of employees (FTEs) 183
164
167
Gender diversity, all employees 40%
41%
43%
Scope 1 & 2 CO2e emissions (tons) 13
12
26
2 | I nt e r im R e po r t | 20 24
RE V E N U E (D K K)
139m
R E V E N U E G R O W TH
6%
E BT M ARGI N
31%
S h a r e o f re v e n u e
S O F T W A R E S AL E S
8 0%
S h a r e of r e v e n u e
I NT E R NA TI O NA L S A L E S
37%
REVENUE (DKK)
139m
REVENUE GROWTH
6%
EBT MARGIN
31%
Share of revenue
SOFTWARE SALES
80%
Share of revenue
INTERNATIONAL SALES
37%
11 | Interim Report | 2024
Financial Remarks
Revenue
Total revenue increased by DKK 7m (+6%) to DKK 139m during the first six months of
2024, driven by increased software sales, from DKK 132m total revenue in the same
period in 2023. The low half-year growth, compared to the first six month of 2023,
was expected due to an unusual revenue split between the first and second half of
2023, where first-half revenue grew +39% year over year and accounted for 55% of
the total fiscal year revenue.
Software sales increased DKK 5m (+5%) from DKK 106m during the first six months in
2023 to DKK 111m in 2024, constituting 80% of the total revenue.
Sales of services increased by DKK 2m (+7%) from DKK 26m during the first six
months in 2023 to DKK 28m in 2024.
Sales in Denmark increased by 21% to DKK 87m in the first six months of 2023 from
DKK 72m in the same period in 2023.
International sales decreased by DKK 8m (-13%) from DKK 60m during the first six
months in 2023 to DKK 52m in 2024, presently representing 37% of the total revenue.
The decrease in international sales is due to the unusual revenue split between the
first and second half of 2023, where a large portion of total software licenses related
to international sale was recognized in the first half of 2023.
For further details on cBrain’s revenue, see note 3 and 4 of the notes to the
Consolidated Financial Statements.
Costs and capitalization
cBrain’s costs are primarily staff costs (salaries), business development, travel and
office expenditure including depreciation.
The increase in expenses from DKK 83m during the first six months of 2023 to DKK
95m in the same period in 2024 is primarily attributed to the growth in employees.
cBrain’s intangible assets comprise of capitalized development costs relating to the
development of F2 standard software. During the first six months in 2024, DKK 12m
was capitalized as software under development.
Earnings Before Tax (EBT)
Earnings before taxes (EBT) decreased by 4m (-8%) to DKK 43m during the first six
months of 2024, compared to DKK 47 in the period in 2023. As of June 30, 2024, the
EBT margin is 31% compared to 35% as of June 30, 2023.
Taxes
Current tax on profits for the first six months of 2024 is DKK 10m, adjustment for
deferred tax is DKK 1m. The effective tax rate for the first six months of 2024 is 25,8%.
Intangible assets
During the first six months of 2024 DKK 12m has been capitalized as Software under
Development which primarily consists of salaries. The capitalized amount is on level
with the same period in 2023.
Property, plants and equipment (PPE)
The total amount for property, plant, and equipment stated in the Consolidated
Financial Statements is DKK 209m of which the headquarters in Copenhagen, Utzon
House, has a carrying amount of DKK 194m. The Utzon House is held by the 100%
owned subsidiary cProperty ApS with cBrain A/S as the tenant.
Liquidity and Capital Resources
cBrain is confident that its cash and cash equivalents, amounting to DKK 2m as of
June 30, 2024, together with trade receivables totaling DKK 74m, and cash generated
by ongoing operations, will adequately cover its cash requirements for the next 12
months and beyond.
Debt and Interest Rate Risk
As of June 30, 2024, cBrain held outstanding 18-years variable-rate mortgage loans
(borrowings), with rate-fixing every 6 months, totaling an outstanding amount of DKK
50m, with repayments of DKK 2m scheduled within the next 12 months.
Management routinely assesses its exposure to interest rate fluctuations. It is not
anticipated that the projected change in interest rates over the next 12 months will
notably impact on the financial statements. cBrain has opted not to fix the interest
rate, as the associated cost is estimated to be higher than the anticipated expenses
attributed to forecasted increased interest rates.
12 | Interim Report | 2024
Shareholders’ Equity
Total equity has increased by DKK 54m compared to the same period last year and
amounts to DKK 256m as of June 30, 2024.
During the year cBrain has not repurchased any ordinary shares. Management is
authorized by the Annual General Meeting to repurchase up to 10% of its share
capital.
Cash flows
Cash flow from operating activities during the first six months of 2024 is DKK 11m.
Cash flow from investing activities is primarily related to investments in software
development projects and amounts to DKK 12m.
Cash flow from financing activities amounts to DKK 6 which consists of dividend paid
of DKK 5m, and repayment of borrowings DKK 1m.
Significant transactions with related parties
Apart from the management’s remuneration, there have been no other transactions
with the management and members of Board of Directors.
Events after balance sheet date
From the balance sheet date until the date of the submission of this interim report, no
events of significance for the interim report have occurred, that are not recognized or
referred to in the interim report.
REVENUE split by
Sales in Denmark and International
REVENUE split by
Software and Sales of Services
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
2020 2021 2022 2023 2024
First half year
Sales in Denmark International sales
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
2020 2021 2022 2023 2024
First half year
Software sales Sales of services
13 | Interim Report | 2024
Risk Management
Three strategic initiatives primarily drive the strategy and the company growth plan:
 Continued growth through digitizing of mission critical business
processes based on cBrain methods and the standard platform F2 for
government (F2 “classic”).
 Boost positioning and growth through solutions for Climate Governance.
 Build F2 ecosystem by establishing partnerships.
Risks
As none of the risk factors identified in the Annual Report 2023 has significantly
changed, the detailed argumentation for risk factors including cause, risk, mitigation
and probability is not repeated here.
The risk for cyber-attack (2) has been adjusted (probability increased) to reflect the
geopolitical situation. It is still the management view that cBrain is prepared and well
protected. Adoption of NIS2 is planned and is under implementation.
The risk for competitors building standard platforms similar to F2 (5) has been
adjusted (financial impact decreased). It is the management view that the emergence
of new dedicated process platforms for Government will increase the markets
attention and demand for those platforms, and increase attention for F2 as well, as F2
is a first mover and can show significant impact and results.
1
2
3
4
5
6
P r o ba bi l i ty
F in a n c i a l i m p a c t
Low
Hi gh
L o w
H i g h
1
2
3
4
5
6
De c l in e in d e ma n d
C y be r A tt ac k
F ai l to r e t a i n a n d
att r ac t t al e n t
F ai l to bu i l d F 2 e c o s y s te m
C o mp e t i t o r s b uil d s t a nd a r d
p la t f or m s i m i la r t o F 2
L ega l r i s k s ent er i n g ne w
ge o gr a p hi c a l ma r k e t s
1
2
3
4
5
6
Probability
Financial impact
Low High
Low High
1
2
3
4
5
6
Decline in demand
Cyber Attack
Fail to retain and
attract talent
Fail to build F2 ecosystem
Competitors build standard
platform similar to F2
Legal risks entering new
geographical markets
14 | I nt e r i m R e po r t | 20 24
Our B us ine ss
Our Business
15 | Interim Report | 2024
Market and Value Proposition
By leveraging standard software, cBrain offers government organizations fast digital transformation at scale
cBrain has developed F2, a highly flexible digital platform which can easily be
configured to support all government work processes, communication and case
management.
With the F2 digital platform, cBrain offers government organizations the opportunity to
digitize based on standard software instead of traditional custom-built solutions. This
eliminates a significant portion of the IT work related to digital transformation and offers
government entities substantial business benefits through cost reductions, faster
delivery, and accelerated digital transformation.
The F2 digital platform is a proven solution, and it is based on a model for digital
bureaucracy and best practices, that have been developed in close collaboration with
Danish government. Currently, more than 75 Danish government entities, including most
Danish ministries, use F2 as their digital platform. Additionally, F2 has been successfully
implemented for government usage across 5 continents, including countries such as
Egypt, France, Germany, Ghana, Guyana, Kenya, Romania, Ukraine, United Arab Emirates,
UK, and USA.
The adoption of standard software represents a disruptive and game-changing approach.
It challenges the traditional IT consulting industries that have relied on extensive projects
and hourly billing practices to establish their business.
By challenging one of the largest industries, cBrain faces a significant business
opportunity. cBrain intends to capitalize on this opportunity and is executing an
ambitious international growth plan. Key elements of the growth plan include investing in
F2 Climate Software, which serves as a door opener and accelerator for international
sales and investing in the F2-for-Partners concept, which allows cBrain to further scale its
business.
The growth plan is based on organic growth. cBrain delivers solid growth and earnings
with a strong positive cash flow, thereby financing its business without the need for
loans.
Transforming government through digitizing represents a huge opportunity
Industry analysts estimate that by digitizing processes, based on best practices and
aligning the organization, governments can enhance services, improve citizens’
quality of life, while generating savings of over $1 trillion annually worldwide*. In
parallel, government digitizing is fundamental to achieving the 17 United Nations
Sustainable Development Goals (SDGs) and is a key tool to combat climate change.
Governments around the world are therefore heavily investing in digitizing, making
government digitizing one of the largest industries globally. However, government
organizations often struggle to translate ambitious digitizing plans into deliverables
and measurable results. This is primarily due to the traditional digitizing approach,
relying on custom-built solutions and software components, leading to large IT
projects and budget overruns.
The adoption of standard software
is a game-changing approach
Based on the F2 digital platform, cBrain
radically transforms this landscape.
By leveraging the F2 standard software
and best practices developed through
close collaboration with Danish
government, cBrain offers government
fast digital transformation at scale
while effectively sidestepping the
pitfalls of large-scale IT projects
and budget overruns.
*McKinsey & Company. Transforming Government Through Digitization.
16 | Interim Report | 2024
The adoption of standard software is a disruptive and game-changing approach.
Digital transformation, based on standard software instead of custom-built solutions,
eliminates a significant portion of IT-related project tasks. The adoption of standard
software brings massive business benefits for government entities due to cost
reductions and faster delivery times. Additionally, it poses a significant challenge to a
substantial part of the government IT industry, which currently relies heavily on large
projects and hourly billing.
At the core of digital transformation projects usually
lie three fundamental elements: process innovation,
organizational implementation, and the delivery of a
new IT system. However, many projects encounter
major impediments related to the delivery of a new IT
system. Projects based on custom-built are usually
delayed and often the IT-related work drains the
majority of project time and resources and deviate
management focus. It leaves insufficient capacity for
crucial process innovation and organizational efforts.
In contrast, leveraging standard software eliminates a
large portion of the IT-related work, and the
transformation process gains momentum,
accompanied by substantial reductions in costs and
risks. As a result, ample time and resources are
liberated, empowering government organizations to
prioritize process innovation and organizational
enhancements, while successfully transforming and
meeting their strategic business goals.
Minimizing the IT work frees resources for process innovation and organizational
development
When undertaking digital transformation projects based on custom-built software,
the major portion of project hours is allocated to IT development. This focus on IT
development often becomes a hindrance to digital transformation, as process
innovation, organizational change, and implementation are given lower priorities and
inadequate resources.
The switch to digital transformation, based on standard software instead of custom-
built software, drastically reduces the complexity and the hours spent on IT
development.
Custom-built solutions can take years to design and deliver, while standard software
can be configured and deployed as a ready-to-use solution within weeks or a
few months.
The adoption of standard software thereby changes the
industry. It not only accelerates the speed of digital
transformation but also enhances system quality while
significantly reducing costs. Moreover, it empowers
organizations to focus on the actual benefits of digitizing,
driven through process innovation and organizational
change.
Configurable standard software enables continued
digital transformation
Custom-built solutions are born legacy. Custom-built
solutions are by nature hardcoded, and they normally
dictate large-scale organizational implementation projects,
thereby leaving minimal room for learning and subsequent
adjustments. In contrast, modern standard software,
represented by F2, is remarkably flexible and can be readily
re-configured, continuously adapting to changing user
requirements, organizational development and process
rethinking.
Leveraging standard software means that government organizations are no longer
burdened with the constraints of legacy systems and large-scale implementation
projects. Instead, standard software facilitates continued optimization and
automation of service delivery as a natural progression and seamlessly extending
beyond the initial project phase.
The adoption of standard software thereby enables government organizations to
redesign their traditional highly risky large-scale approach into a digital transformation
journey at grand scale, based on many small steps, agility, and continuous learning,
which are aligned with continued process innovation and organizational adjustments.
17 | I nt e r i m R e po r t | 20 24
cB r a in sol u tio n s a r o u n d th e gl o be
cB r a in se r v e s
c u st o m e r s a c r oss 5 c o n t i n e n t s.
F 2 ha s pr o v e n t h a t t h e mo d e l f o r
d ig it a l b u r e a u cr a c y d e v e lo pe d
in cl o se co lla b o r a t io n w it h t he
Da n ish g o v e r n me n t c a n b e
a pplie d w o r ld w id e.
cB r a i n HQ
C u s to me r s a n d sol u ti o n s
18 | Interim Report | 2024
The F2 Software
F2 is built for government, based on Danish government best practices and the model
for digital bureaucracy. cBrain has developed F2 in close collaboration with the Danish
government, and today cBrain has invested more than 400.000 hours into developing
the F2 digital platform.
The development began in 2006, with a focus on studying government processes and
resources that facilitate service delivery. A groundbreaking realization was that
government organizations function in fundamentally similar ways, based on the
fundamental principles of the bureaucracy described by
German philosopher Max Weber. This led to the
development of generic model for government work
known as Digital bureaucracy.
Being able to model government processes is a significant
change. Based on the model for digital bureaucracy, it has
been possible to develop standard software for
government usage, which supports government processes
digitally and replaces custom-built solutions.
One fully integrated digital platform, supporting all
government processes and compliance requirements
Built for government, F2 is a full stack and highly secure
digital platform. Accessible from PCs, tablets, and mobile
devices, F2 provides formal and informal communication
capabilities, meets all compliance and auditing
requirements related to case production and content
creation, and allows control of organizational roles and
responsibilities.
Additionally, F2 supports generic workflows like approvals,
hearings, and Freedom of Information (FOI) requests, as well as customer-specific
workflows that facilitate citizen-facing processes from self-service to case
processing and filing, along with long-term archiving.
F2 is a highly flexible digital platform which can easily be configured to support all
government work processes, communication and case management.
Based on the built-in Administrator menu, privileged users can define and set up
support for customer specific organizations, routines and workflows. This includes a
highly efficient approach to process and workflow automation based on a process
library. Moreover, F2 is a fully open platform that easily interfaces with other IT
systems through an extensive set of APIs (Application Programming Interfaces).
F2 thereby represents a unique technology. F2 offers government organizations the
opportunity to digitize based on standard software instead of traditional custom-built
solutions, and due to the flexibility and configuration
capabilities, F2 is suitable for nearly any type of
government organization, from ministries to agencies,
cities, and municipalities.
F2 can easily be configured to support
any type of government workflow and process
With F2, it is possible to define customer-specific
workflows, supporting both internal processes and external
citizen-facing processes end-to-end, without making any
change to the standard software. A workflow is described
by a process sheet, which is attached to a case type and
stored in the process library.
The process sheet is open source and technically referred
to as a declaration. The process sheet functions in a
manner similar to a sheet in a spreadsheet, and the process
sheet is stored totally separated from the basic F2 standard
software. It is therefore possible, seamless and fully
automated, to upgrade F2 to new versions, regardless of
how extensive F2 has been configured.
For advanced users, complex workflow and process declarations are built using the F2
Toolchain. However, for simpler workflows and processes, cBrain offers an interface
to the toolchain called F2 Service Builder. This allows users with limited technical
experience to define workflows easily by simply filling out a spreadsheet.
19 | Interim Report | 2024
F2 Service Builder allows users to digitize workflows
simply by filling out a spreadsheet
The F2 Service Builder allows business users and process consultants to digitize
workflows easily by filling out a spreadsheet. This includes the definition of end-to-
end workflows, encompassing self-service, case processing, filing, and even data
extracts and dashboards for management controls and reporting.
Users simply input the process definition into a spreadsheet, detailing all the
necessary process steps, including checklists, automated email and letter generation,
and more. The completed spreadsheet is then uploaded to the F2 standard software.
Should users wish to modify the process definition, they can simply update the
spreadsheet and upload the updated version, ready to run.
It may still take time to understand and design a government process, but with the F2
Service Builder, the IT work involved is significantly reduced or almost eliminated,
allowing for the rapid setup of well-functioning processes in just a few hours.
Additionally, process definitions can be easily reused by copying an existing process,
revising the copied sheet, and uploading it as a new process. As a result, the F2
Service Builder provides a unique and efficient approach for government
organizations seeking to digitize a large number of processes at a high speed.
F2 Service Builder is a unique tool for both customers and partners
By allowing organizations to develop and reuse smart processes, the F2 Service
Builder becomes an extremely efficient tool for implementing best practices and
driving standardization throughout the organization.
This makes the F2 Service Builder a unique tool for external partners who offer large-
scale digital transformation to government organizations. With this tool, consulting
partners specializing in process optimization and automation can deliver fast and agile
digital transformation solutions.
Thanks to its flexibility, the process sheets can be easily modified to align with future
changes in processes or organizational structures. This enables external consulting
partners to offer government customers a truly agile approach, focusing on step-by-
step process innovation and organizational development. Concurrently, they can build
and provide pre-configured process libraries for their government customers, based
on well-established best practices.
As a result, cBrain expects the F2 Service Builder to become a pivotal tool within the
F2 ecosystem of partners. Through close collaboration with customers and partners,
cBrain continuously enhances the functionality of the F2 Service Builder.
20 | Interim Report | 2024
Customers and Growth Plan
F2 is a proven solution
Today more than 75 Danish government organizations, including almost all Ministries,
use F2 as their digital platform. They run on the exact same software and they
typically upgrade, fully automated, once a year for new releases of the F2 software.
Additionally, F2 has been successfully implemented for government usage across 5
continents, including countries such as Egypt, France, Germany, Ghana, Guyana,
Kenya, Romania, Ukraine, United Arab Emirates, UK, and USA.
The cBrain business model is highly scalable
The adoption of standard software represents a disruptive and game-changing
approach. By adopting standard software instead of custom-built solutions, it is
possible to eliminate a significant portion of the IT work related to digital
transformation.
This offers government entities substantial business benefits through cost reductions,
faster delivery, and accelerated digital transformation, and in addition it challenges
the traditional IT consulting industries that have relied on extensive projects and
hourly billing practices to establish their business.
With F2 cBrain challenges one of the largest industries and faces a significant
business opportunity. cBrain intends to capitalize on this opportunity and is executing
an ambitious international growth plan.
Key elements of the growth plan include investing in F2 Climate Software, which
serves as a door opener and accelerator for international sales and investing in the F2-
for-Partners concept, which allows cBrain to further scale its business.
The growth plan is based on organic growth. cBrain delivers solid growth and earnings
with a strong positive cash flow, thereby financing its business without the need for
loans.
The business model is international and highly scalable, due to F2 product and the
partner strategy. Based on generic government principles and the model for Digital
Bureaucracy, F2 digital platform has proven itself to support governments across the
world.
cBrain is building an eco-system of international partners, who offers government
digital transformation by leveraging the F2 standard software. Thereby cBrain can
grow without the linear restrictions of building its own organization.
F2 Climate Software
The fight against climate change and global warming is driven and funded by
government, and by use of legislation and financial incentives, politicians have an
extraordinarily strong toolbox. However, political decisions must be implemented by
strong and accountable institutions. The reality is therefore that it often takes years to
execute decisions due to bureaucratic delays, fueled by the lack of digitizing and
inefficient IT systems. Climate software helps government organizations to
accelerate the deployment of climate action initiatives. Highly transparent while
minimizing costs, the software supports a broad portfolio of processes from
approvals and grant management to inspections.
Climate software means speed of action. Closing the time gap between political
decision and bureaucratic execution.
In November 2020, the Danish Parliament adopted a new legislation to take carbon
rich farmland out of production. By February 2021, the Danish Environmental
Protection Agency (Danish EPA) managed to run the first round of the 300m Euro
program.
The Danish farmland program has a potential to reduce CO
2
emissions by up to
20%. By use of government climate software, the Danish EPA achieved fast track
execution, and by executing within months instead of years, Danish government is
now leading by example.
F2 Climate Software is standard software. It is based on reusable open-source
configuration and best practices developed in close collaboration with the Danish
EPA. Government climate software can therefore easily be reused across the world,
and Denmark has a strong tradition in sharing best practices with other countries.
As an example, a solution designed for the Danish EPA, was replicated and deployed
by Guyana government to protect and regulate the trade of endangered species and
animals in the Amazon rainforest. Thereby demonstrating how governments across
the world can reuse and work together to protect and restore biodiversity.
21 | I nt e r im R e po r t | 2 0 24
c B r a i n h a s a st r o n g D a n i sh cu st o m er b a se, w hi c h
c o u n ts mo r e th a n 7 5 D a n is h g o v e rn m e n t o r g a n i z a ti on s
in c l ud in g m ore th an 8 0% of a l l min is trie s
cBrain has a strong Danish customer base, which
counts more than 75 Danish government organizations
including more than 80% of all ministries
22 | Interim Report | 2024
Working with partners, cBrain can offer fast digital transformation for
governments across the world
A key element of the cBrain growth plan is the F2-for-Partners concept, which
enables a new generation of government digital transformation partners. Today the
majority of government organizations are served by a huge industry of IT system
integrators and consulting firms, which have established their business and heavily
rely on extensive projects and hourly billing practices.
While this industry continues to deliver custom-built solutions based on software
components and application tools, governments struggle to convert ambitious
digitization plans into deliverables and measurable results.
The F2-for-Partner concept allows governments themselves, or by help of external
consulting firms, to take over the configuration and implementation of F2.
By leveraging standard software, a large portion of the IT-related work is eliminated.
This frees up time and resources and empowers government organizations and their
digital transformation partners to prioritize process innovation and organizational
enhancements, while successfully transforming and meeting their strategic business
goals.
With the F2-for-Partner concept, cBrain enables a new generation of government
digital transformation firms, who based on in-depth understanding of government
best practices offer process innovation and organizational enhancements.
By adopting standard software as the basis for digital transformation, these new
consulting firms will enable government organizations to redesign their traditional
high risk large-scale initiatives into digital transformation journeys at scale, based on
many small steps, agility, and continuous learning, which are aligned with continued
process innovation and organizational adjustments.
cBrain continues to develop the F2 standard software and best practices
This means happy users and low total cost of ownership. Software continuously has
to be maintained due to changing user requirements and technology changes, and
custom-built solutions erode over time because they are simply too costly and time
consuming to maintain.
With standard software this is very different. All government organizations who use
F2 are on a regular basis upgraded to the latest version. The club of F2 government
user organizations, with more than 100 members internationally, faces significantly
lower total costs of ownership, while avoiding the high ongoing costs of systems
maintenance.
It often takes an exceedingly long time to develop custom-built solutions. Custom-
built solutions are therefore often at risk of being outdated when they are delivered,
because user requirements or technical standards have changed while the solution
was built. At the same time, it is extremely hard to maintain and upgrade custom-built
solutions, the result being that users have to live with the burden of outdated IT-
systems.
In contrast, standard software offers users continuous access to new and upgraded
versions of the software. With the ability to easily re-configure custom specific
processes and system setup, independently of upgrades, the F2 standard software
can be adapted to changing user requirements.
Reusing best practices enables fast track organizational deployment
The Digital Bureaucracy Model is based on government best practices, which is the
foundation for the design and functions of the F2 standard software. In parallel with
the F2 digital platform, cBrain has also developed a best practice implementation
method, called the F2 Implementation Method.
Digital transformation based on best practices and reuse of standards drive and
accelerate change. But to ensure successful transformation, it is important to take
organizational readiness into account. The F2 Implementation Method is therefore
based on transformation waves.
With this approach, organizational implementation is orchestrated by deploying best
practices and functionality aligned with organizational change. This is possible
because it is easy to reconfigure the standard software in parallel with process
reengineering and organizational development.
The wave model is based on 3 elements: a set of overall best practice principles,
deployment of generic routines and driving departmental process digitizing based on
case types.
The overall principles set the overall stage for digital ambitions and the speed of
change. The overall principles guide the deployment of generic routines and
functionality, leading to a specific Wave Scheme which directs both an organizational
(business) project plan and a technical project plan.
By learning from implementation projects across the world, the F2 best practice
implementation method is continuously developed.
The F2 best practice implementation method is offered for partners, as part of the
F2-for-partners concept, thereby allowing partners to offer global government best
practices as part of their digital transformation services.
23 | Interim Report | 2024
24 | Interim Report | 2024
Shareholders
Stock Information
cBrain is a Danish software company listed on NASDAQ OMX Nordic
(Symbol: CBRAIN) under the share code: DK0060030286.
In total cBrain has +14.000 shareholders in +40 countries.
For additional information regarding shareholder
relations and in-depth information about cBrain visit
www.cbrain.com/investor
Financial Calendar
August 21, 2024 Publication of the Interim Report for the first half of 2024
November 7, 2024 Quarterly Announcement 3rd quarter 2024
February 20, 2025 Publication of the Annual Report 2024
Contact
Inquiries regarding the company’s relationships with investors
and the market can be directed to:
Ejvind Jørgensen
CFO & Head of Investor Relations
E-mail: ir@cbrain.com
Company Announcements and Press Releases since January 1, 2024
In the period from January 1, 2024, onwards the publication of the interim report for
2023, cBrain has published the following notices to Nasdaq Copenhagen. They can all
be found on the company’s website www.cbrain.com/investor
Jan 15, 2024
cBrain beats expectations on top and bottom lines as
subscription revenue jumps
Feb 8, 2024
cBrain and the German
-
Danish Chamber of Commerce have
taken initiative to reuse Danish e-government experiences in
Germany
Feb
22, 2024
cBrain guides continued growth and solid earnings in 2024 and
suggests a dividend raise by 33%
Feb 22, 2024
In 2023 cBrain grew revenue by
+
27% and delivered record high
earnings before tax margin (EBT margin) of 34%
Feb 28, 2024
cBrain Kodumburar India signs memorandum of understanding
with state Tamil Nadu and Union Territory of Puducherry
Mar 7, 2024
cBrain partner to deliver first F2 based government solution in
Ghana
Mar 14, 2024
cBrain releases first F2 standard module for
government AI
Mar 21, 2024
Annual General Meeting 2024
Apr 16, 2024
Reporting of transactions made by persons discharging
managerial responsibilities
Apr 22, 2024
cBrain Delivers Digital Solution to Certify Responsible Cannabis
Production in California
Apr 24, 2024
cBrain takes lead within AI for government
Apr 24, 2024
Minutes of meeting from AGM 2024
May 16, 2024
cBrain Wins the Tax Governance Top Rating 2024 for mid cap
companies
Jun 12, 2024
cBrain Signs Proof of Concept in
Nigeria
Aug 5, 2024
cBrain Signs Contract on Ambitious AI Transformation Project
in the UAE
25 | I n t er i m R e p or t | 2 0 2 4
St ateme nt
b y t he Bo a r d o f D ir ec t o r s a nd t h e E x ec u t iv e M a na g em e n t
Statement
by the Board of Directors and the Executive Management
26 | Interim Report | 2024
Management Statement
The Board of Directors and the Executive Board have today discussed and approved
the Interim Report of cBrain A/S for the period January 1, 2024 to June 30, 2024.
The Interim Report has not been audited or reviewed by the company’s independent
auditors.
The interim financial report has been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the EU and additional requirements in the Danish
Financial Statements Act.
The accounting policies remain unchanged from the annual report for 2023.
In our opinion, the interim consolidated financial statements give a true and fair view
of cBrain’s consolidated assets, liabilities and financial position at June 30, 2024 and
of the results of cBrain’s consolidated operations and cash flows for the period
January 1, 2024 to June 30, 2024.
Furthermore, in our opinion, the Management review includes a fair review of the
development in cBrain’s operations and financial conditions, the results for the period,
cash flows and financial position as well as a description of the most significant risks
and uncertainty factors that cBrain faces, relative to the disclosures in the annual
report for 2023.
Copenhagen, August 21, 2024
Board of Directors
Henrik Hvidtfeldt
Chair
Lisa C. Herold Ferbing
Peter Loft
Per Tejs Knudsen
Thomas Qvist
Executive Board
Per Tejs Knudsen
CEO
Thomas Qvist
CTO
27 | In t er i m R ep o r t | 20 24
Fi na nc i als
I nt er im F in a n c i a l S t a t em e nt s f o r f ir s t h a l f-y e a r 2 0 2 4
Financials
Interim Financial Statements for first half-year 2024
28 | Interim Report | 2024
Consolidated Statements of Comprehensive Income
CONSOLIDATED INCOME STATEMENT
T.DKK
Notes H1 2024
H1 2023
FY 2023
Revenue 3, 4
139.178
131.780
239.182
Cost of services
-1.603
-824
-2.152
External expenses
-19.700
-18.618
-35.683
Staff costs
-73.432
-65.106
-121.181
R&D costs capitalized
11.541
11.582
26.404
Depreciation and amortization expense
-12.026
-10.353
-21.165
Operating profit (EBIT)
43.958
48.461
85.405
Financial income
520
310
1.313
Finance costs
-1.592
-2.043
-5.364
Earnings before taxes (EBT)
42.886
46.728
81.354
Income taxes
-11.084
-10.532
-18.176
Profit for the period
31.802
36.196
63.178
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
T.DKK
Notes
H1 2024
H1 2023
FY 2023
Profit for the period
31.802
36.196
63.178
Other comprehensive income
0
0
0
Total comprehensive income for the period
31.802
36.196
63.178
EARNINGS PER SHARE (EPS)
T.DKK
Notes
H1 2024
H1 2023
FY 2023
Basic EPS
1,59
1,81
3,16
Diluted EPS (DEPS)
1,59
1,81
3,16
29 | Interim Report | 2024
Consolidated Balance Sheet
ASSETS
T.DKK Notes
June 30,
2024
June 30,
2023
Dec. 31,
2023
Intangible assets 5
66.444
58.224
64.594
Property, plants and equipment 6
208.818
213.049
211.572
Other assets
799
511
798
Total non-current assets 276.061
271.784
276.964
Trade receivables 74.037
77.064
43.801
Contract assets 16.623
4.913
8.630
Other receivables 3.349
7.486
2.228
Receivables 94.009
89.463
54.659
Cash and cash equivalents 1.730
3.632
9.234
Total current assets 95.739
93.095
63.893
Total assets 371.800
364.879
340.857
EQUITY AND LIABILITIES
T.DKK Notes
June 30,
2024
June 30,
2023
Dec. 31,
2023
Share capital
5.000
5.000
5.000
Retained earnings
250.504
196.566
218.580
Proposed dividend
0
0
5.600
Total equity
255.504
201.566
229.180
Deferred tax liabilities
12.128
10.548
11.759
Borrowings 7
47.844
91.739
48.807
Total non-current liabilities
59.972
102.287
60.566
Trade payables
5.086
4.639
3.429
Contract liabilities
15.980
17.815
5.163
Current tax liabilities
6.340
8.740
13.780
Borrowings 7
1.944
4.968
1.906
Other payables
25.923
24.864
26.833
Provisions
1.051
0
0
Total current liabilities
56.324
61.026
51.111
Total liabilities and equity
371.800
364.879
340.857
Accounting policies 1
Accounting estimates 2
30 | Interim Report | 2024
Consolidated Statements of Changes in Equity
JUNE 30, 2024
T.DKK
Share
capital
Retained
earnings
Proposed
dividend
Total
equity
Equity, January 1 5.000
218.580
5.600
229.180
Net profit for the year 0
31.802
0
31.802
Comprehensive income for the period 0
31.802
0
31.802
Dividends 0
122
-5.600
-5.478
Transactions with owners 0
122
-5.600
-5.478
Equity, June 30 5.000
250.504
0
255.504
JUNE 30, 2023
T.DKK
Share
capital
Retained
earnings
Proposed
dividend
Total
equity
Equity, January 1 5.000
160.302
4.200
169.502
Net profit for the year 0
36.196
0
36.196
Comprehensive income for the period 0
36.196
0
36.196
Share-based payments 0
235
0
235
Purchase of treasury shares 0
-985
0
-985
Sale of treasury shares 0
726
0
726
Dividends 0
92
-4.200
-4.108
Transactions with owners 0
68
-4.200
-4.132
Equity, June 30 5.000
196.566
0
201.566
31 | Interim Report | 2024
Consolidated Cash Flow Statement
T.DKK H1 2024
H1 2023
Full Year 2023
Operating profit (EBIT) 43.958
48.461
85.405
Depreciation and amortization 12.026
10.353
21.165
Change in working capital
Change in trade and other receivables -31.357
-36.523
1.998
Change in contract assets and -liabilities 2.824
4.140
-12.229
Change in trade and other payables 747
301
1.060
Change in provisions 1.051
0
0
Cash flow from operating profit 29.249
26.732
97.399
Share-based payments 0
235
235
Financial items, net -1.252
-953
-3.885
Income taxes paid -16.863
-6.379
-7.452
Cash flow from operating activities 11.134
19.635
86.297
T.DKK H1 2024
H1 2023
Full Year 2023
Investments in intangible assets -11.541
-11.582
-26.404
Investments in property, plant and equipment -681
-648
-703
Cash flow from investing activities -12.222
-12.230
-27.107
Repayment of borrowings -938
-1.890
-48.073
Dividends paid, net -5.478
-4.108
-4.108
Cash flow from financing activities -6.416
-5.998
-52.181
Cash and cash equivalents, beginning of period
9.234
2.225
2.225
Net cash flow for the period -7.504
1.407
7.009
Cash and cash equivalents, end of period 1.730
3.632
9.234
32 | I n t e ri m R e p or t | 2 0 24
Notes
Notes
33 | Interim Report | 2024
Note 1 – Accounting policies
General information
cBrain A/S is listed on the Danish Exchange and incorporated and domiciled in
Copenhagen, Denmark. The address of its registered office is Kalkbrænderiløbskaj 2,
2100 Copenhagen, Denmark.
Basis of preparation of the Interim Report
This unaudited condensed consolidated interim financial report for the half-year
reporting period ended June 30, 2024, comprises the interim financial statements of
the parent company cBrain A/S and any subsidiaries controlled by cBrain.
The condensed interim financial report has been prepared in accordance with
Accounting Standard IAS 34 Interim Financial Reporting as adopted by the EU, and
further requirements in the Danish Financial Statements Act for the presentation of
interim reports by listed companies.
The condensed consolidated interim financial report does not include all the notes of
the type normally included in an annual financial report. Accordingly, this report is to
be read in conjunction with the annual report for the year ended December 31, 2023,
and any public announcements made by cBrain during the interim reporting period.
The accounting policies adopted are consistent with those of the previous financial
year and corresponding interim reporting period and the adoption of new and
amended standards as set out below.
Implementation of new or changed accounting standards and interpretations
IASB has issued amended standards which apply for the first time in 2024. None of
these amended standards and interpretations are expected to have any significant
impact on the financial statements.
Note 2 – Accounting estimates
The preparation of the interim financial statements requires management to make
accounting estimates and judgments, which affect the application of accounting
policies for recognized assets, liabilities, income, and costs. Actual results may differ
from these estimates.
The significant accounting estimates and judgments are consistent with those
applied in the annual report for 2023.
Note 3 – Segment information
Segments
cBrain has only one operating segment, as there is no division of the group's activities
in internal reporting.
The included intangible and tangible fixed assets on the balance sheet can largely be
attributed to Denmark.
Market areas
cBrain’s F2-software solution is a comprehensive product consisting of a wide range
of software modules and libraries that can be configured. The software product is
marketed under the brand name F2.
Geographical areas
When presenting information regarding geographical areas, information about the
distribution of revenue across geographical segments is calculated based on
customers' geographical locations.
The following table shows revenue by reportable segment for the six-month period
ended June 30:
T.DKK H1 2024
H1 2023
FY 2023
Products and Services
Software
111.402
105.858
189.179
Services 27.776
25.922
50.003
139.178
131.780
239.182
Timing of revenue recognition
Over time
93.997
91.792
198.796
At a point in time 45.181
39.988
40.386
139.178
131.780
239.182
34 | Interim Report | 2024
Note 3 – Segment information (continued)
T.DKK H1 2024
H1 2023
FY 2023
Geographical information
Denmark
87.311
72.169
155.498
Other EU-countries 48.487
55.566
75.930
Countries outside the EU 3.380
4.045
7.754
139.178
131.780
239.182
Significant Customers
Customer A*
78.173
57.872
128.884
Customer B 47.566
54.706
74.091
*Customers in the Danish state is aggregated together as Customer A.
Note 4 – Revenue
T.DKK H1 2024
H1 2023
FY 2023
Software 111.402
105.858
189.179
Services 27.776
25.922
50.003
139.178
131.780
239.182
Note 5 – Intangible assets
June 30, 2024
T.DKK Software
Software
under
development
Total
Cost, January 1 181.517
3.417
184.934
Additions during the period 0
11.541
11.541
Cost, June 30 181.517
14.958
196.475
Amortization, January 1 120.340
0
120.340
Amortization for the period 9.691
0
9.691
Amortization, June 30 130.031
0
130.031
Carrying amount, June 30 51.486
14.958
66.444
June 30, 202
3
T.DKK Software
Software
under
development
Total
Cost, January 1
156.298
2.233
158.531
Additions during the period 0
11.582
11.582
Cost, June 30 156.298
13.815
170.113
Amortization, January 1 103.387
0
103.387
Amortization for the period 8.502
0
8.502
Amortization, June 30 111.889
0
111.889
Carrying amount, June 30 44.409
13.815
58.224
35 | Interim Report | 2024
Note 6 – Property, plant and equipment
June 30, 2024
T.DKK
Land and
buildings
Other
Equipment
Total
Cost, January 1 214.564
4.495
219.059
Additions during the period 0
681
681
Disposals during the period -1.100
0
-1.100
Cost, June 30 213.464
5.176
218.640
Depreciation, January 1 6.014
1.473
7.487
Depreciation for the period 1.932
499
2.431
Accumulated depreciation on disposals -96
0
-96
Depreciation, June 30 7.850
1.972
9.822
Carrying amount, June 30 205.614
3.204
208.818
June 30, 2023
T.DKK
Land and
Buildings
Other
Equipment
Total
Cost, January 1 213.952
4.024
217.976
Additions during the period 523
353
876
Disposals during the period 0
-228
-228
Cost, June 30 214.475
4.149
218.624
Depreciation, January 1 2.216
679
2.895
Depreciation for the period 2.315
365
2.680
Depreciation, June 30 4.531
1.044
5.575
Carrying amount, June 30 209.944
3.105
213.049
Note 7 – Borrowings
Coupon
Rate
Effective
Interest Rate
Currency
Maturity
June 30, 2024
Floating interest rate loans
3,92%
3,92%
DKK
18 years
June 30, 2023
Floating interest rate loans
4,06%
4,06%
DKK
19 years
T.DKK H1 2024
H1 2023
2023
Within one year
1.944
4.968
4.215
1-3 years 4.120
14.904
8.391
3-5 years 4.452
44.712
8.334
More than 5 years 39.272
32.123
55.091
Total contractual undiscounted cash flows 49.788
96.707
76.031
T.DKK
June 30,
2024
June 30,
2023
December 31,
2023
Non-current liabilities
47.844
91.739
48.807
Current liabilities 1.944
4.968
1.906
Carrying amount 49.788
96.707
50.713
cBrain A/S
Kalkbrænderiløbskaj 2
DK-2100 Copenhagen
Denmark
+ 45 7216 1811
info@cbrain.com
Nasdaq symbol: CBRAIN
www.cbrain.com
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