Dnb Invest Denmark A/S

Management's review

Development in activities of the CompanyThe income statement for 2023 shows a profit for the year after tax of DKK'000 320.025. The balance sheetat 31 December 2023 shows equity of DKK'000 9.603.530.The Company expectations for the year 2023 was a pre-tax result around MDKK 300 – MDKK 375. The 2023result exceeds the expectations for the year primarily due to interest rate increases.Risk profile and risk managementThe Company is subject to risks customary within the investment business. The Company's investment policyis based on firm and conservative investment principles, aligned with the risk policies and risk framework ofthe DNB Group.Foreign exchange risk is mainly related to cash inflows from investments denominated in foreign currencies.Investments in currencies other than DKK (and, on selective basis, EUR) are hedged.The Company's interest rate risk relates to the Company's investment portfolio in loans. Investments in loans(other than investments dominated in DKK or, on selective basis, EUR) are hedged to CIBOR. Consequently,the Company has interest income risk related to the development of CIBOR.The Company´s investment portfolio is inherently subject to counterparty risk. However, counterparties aresound and robust and all investment arrangements are subject to thorough assessments upon establishmentas well as ongoing monitoring and assessment.The Company has entered into cash collateral arrangements as ongoing credit support for hedgingarrangements for the purpose of mitigating default risk on the Company´s hedge counterparty and theCompany therefore incurs liquidity risk. However, the Company has policies for handling liquidity risk and hastaken appropriate measures to mitigate liquidity risk and the Company has established substantial credit lines.