Kmd A/S

Ledelsesberetning

Welcome to KMD
KMD is one of Denmark's largest IT and software companies, with locations in Copenhagen, Aarhus, Odense and Aalborg. The KMD Group also comprises subsidiaries in Norway, Sweden, Finland and Poland.
Insecurity regarding recognition or measurement
Insecurity regarding recognition and measurement is described in note 26 and covers impairment in relation to development projects and investment in group enterprises.
There is no material insecurity regarding recognition or measurement despite that.
Development in activities and financial matters
The Company's Income Statement of the financial year 1 April 2023 - 31 March 2024 shows a result of TDKK 11.911 and the Balance Sheet at 31 March 2024 a balance sheet total of TDKK 3.927.832 and an equity of TDKK 1.620.832.
The company has recognised the following special items during the fiscal year:
Reorganization and structural adjustments:
Expenses relating to reorganization and structural adjustements primarily concern redundancy costs to employees amounting to MDKK 18.3 (2022/23 MDKK 10.7).
Transformation programs:
Expenses relating to transformation programs primarily relate to expenses associated with changing the business setup, including server, mainframe operation amounts to MDKK 36.4 (2022/23 MDKK 36.4).
Net profit/loss for the year compared with expected developments in the most recently published annual report
Revenue are considered to have met the outlook for the year. The decrease in revenue was MDKK 860, which consist of an expected decline in revenue of MDKK 785, due to sale of Perspective and Product Sales business. (last year's outlook from the sales was - MDKK 770) and the last part is due to discontinued contracts across the business.
The operating profit are higher than expected due to an adjustment of both other operating and personnel cost (last year's outlook was MDKK - 6).
Risks
As most other IT companies, KMD is exposed to a number of business risks relating to market developments, shifts in customer demand, technological changes, employee recruitment, project execution, etc.
Work to identify risks, consolidate the overview and ensure that relevant measures are initiated is an integral part of managing the business. KMD's enterprise risk management processes are executed within the frameworks defined by the Board of Directors. A significant part of KMD's business is delivered in the form of customer projects, with performance terms outlined in the relevant contracts.
Expectations for the future
KMD expects revenue to be at the same level as this year +/- MDKK 25.
KMD expects its total operating profit to be improved with 50-100% due to further optimization of other operating cost and personnel cost as well as growth in core markets.
Research and development activities
KMD´s main strategic focus area continues to be product development and sale and support of software. We continued our investments in our products throughout the year.
Environment and climate
The company has implemented polices and procedures to ensure compliance and progress in respect of environment and climate. The company target is zero CO2-emissions from our business by 2030. For further information we refer to:
www.kmd.net/sustainabilityreport2023
Knowledge and know-how resources
In recent years, technological development has been taking place extremely rapidly, and customers expect innovative solutions deploying the latest technology. This creates a need for KMD to develop the competencies of its employees and managers. KMD is addressing this challenge in part through our transparent career model for upskilling and retaining capable employees to undertake the various development tasks.
Subsequent events
KMD has 22 March 2024 entered into agreements with Aeven A/S and T-systems. The agreements were signed on April 5th 2024.
The agreements are part of KMD strategy to focus on core competencies, which are sector-specific high-value software and services. Since 2018, KMD has outsourced specific infrastructure elements to Kyndryll and now part of this will be transferred to Aeven and T-Systems.
The agreement with Kyndryll expires in June 2025 and, subject to regulatory approvals, Aeven and T-Systems will commence the services in the first half of 2025 (with effect from May/June 2025) 13-15 month after the balance date. In addition to outsourcing the infrastructure service business, KMD also intends to transfer five independent customer contracts for IT outsourcing and KMD-owned data centers to Aeven. This is also subject to the necessary approvals from the authorities.
After the financial year, no other events have occured which may change the financial position of the entity substantially.
Statement regarding corporate social responsibility - cf. Sections 99a of the Danish Financial Statements Act
KMD is working with different activities in the CSR field. A statement regarding corporate social responsibilitycan be found on KMD's website:
https://publikationer.kmd.dk/CSRrapporter/KMD-csr-report-2023/
Women at KMD - cf. Section 99b of the Danish Financial Statements Act
At KMD, we strive to put gender diversity on the agenda. We highlight our female leaders as role models, engage in the public debate on gender diversity and female leadership, and participate in networks and across boards.
Following the legislation of May 10, 2022, these are the targets for the share of the underrepresented gender in the supreme governing body of the company and other management level (cf. § 99 b)
In 2023-24, 2 out of 5 members of the Board of Directors elected by the company’s general meeting were men. Therefore, we meet our target of 40 pct. of both genders on the Board of Directors.Our 2026 target is to continue to have at least 40% of both genders in the general meeting.
The share of the underrepresented gender for “other leadership levels”, which includes the Executive Board (Direktion), and all other employees responding directly to them (as per the Danish Companies Act (Selskabsloven), §139c, stk.4), was of 27,8% for 2023-24. However, the target for this period was 44%. We have reassessed our target for the coming year, and our new target for 2026 is 40%. These values, as well as data for all managers and all employees, are presented in the below table for the year 2023-24.
Our 2024/25 target is to continue to have two female members among the members elected by the general meeting for the Board of Directors, equivalent to 40% of the general meeting. It is our goal to maintain an equal gender distribution on the Board of Directors by 2026.
The share of female leaders in all management levels are represented here along with the long term and short term targets for the gender distribution.
Leadership level 1 and 2 accounts for Other Management layers. Equal gender distribution for Other Management layers has been achieved.
Female representation
Total number of members Current End of FY 2024/25 End of FY 2025/26
Board of Directors 2 40.0 % + 0 % 40%
Leadership level 1 and 2 10 27.8 % + 6 % 40%
Leaders (across group) 31.2 % + 5 % 40%
Employees (across group) 33.2 % + 1 % 35%
What will we do?
In KMD we are very serious in our pursuit to achieve gender equality in leadership as well as in all aspects of our culture. We believe that diversity is a strength which provides us with different perspectives, ideas and skills, allowing us to develop the company in a positive direction. For many years we have applied policies and initiatives to promote this development. But we also recognize that this is a difficult task to solve and a challenge with many different aspects to overcome. We will therefor also follow the below initiatives:
- Increase awareness of neurodiversity through training programs or awareness days.
- Continue to raise awareness about Diversity and Inclusion topics through our ongoing collaboration with communicators such as Caroline Farberger and Poornima Luthra.
- Continue implementing additional concepts in the coming years to further reduce stress, both at the team level and more broadly organizationally. Cconcepts and initiatives at all levels are essential to ensure a holistic and effective approach to prevent and handle stress, as well as ensuring a healthy psychosocial working environment.
The IT industry has for many years been dominated by male employees and it is not something we can change overnight. However, we believe we are in a good position to succeed with our targets, mainly as this a high priority to our Board of Directors as well as our top management, which is visualized by the equal gender distribution in our top leadership levels.
In KMD we are still challenged on gender distribution in the other levels of management, and to overcome these challenges and meet our targets we have developed a plan that include update of several policies to leverage equality, and a set of internal initiatives and structural changes to support the development of enhanced female leadership. We have established a governance, with the Sustainability Board as the responsible authority for the progress.
For futher information we refer to:
https://publikationer.kmd.dk/CSRrapporter/KMD-csr-report-2023/
Reporting on Data Ethics
As one of the major data processors for the public sector in Denmark, and a processor of data within business-critical sectors like the energy and utility sector the responsibility to protect this data is of paramount importance to KMD.
Protection of personal data is a basic human right that we do our utmost to uphold. KMD has implemented security measures to protect individuals against accidental, or unlawful destruction, loss, alteration, or unauthorized disclosure of personal data. This is crucial for the individual's rights, as well as it is fundamental for upholding the general trust in the public digitalization. While cyber security and data protection is a core material topic regarding the protection of human rights, it is not done with protection and security alone. With the emerging ai technologies and fast paced deployment of these technologies, the fundamentals must be backed up by a data ethical policy and mindset. KMD, and the entire NEC Group wants to act responsibly and ensure, that we do not contribute to discrimination or inequality through our use of data.
Fundamental data ethical statements
KMD security strategic ambitions are reflected in the Information Security Policy which declares "that KMD maintains its excellence and dedication to achieve confidentiality, integrity, and availability of its information and delivery of secure services for public and private customers". In addition, the Privacy Policy describes how KMD process personal data when we act as a data controller in relation to the EU General Data Protection Regulation.
Furthermore, we work on a basis of data ethical principles. When we process data and develop solutions, we apply four data ethical principles, addressing:
- Human dignity
- Anti-discrimination and bias
- Transparency
- Rights of individuals
For further information we refer to:
https://publikationer.kmd.dk/CSRrapporter/KMD-csr-report-2023/

Beskrivelse af virksomhedens væsentligste aktiviteter

Welcome to KMD
KMD is one of Denmark's largest IT and software companies, with locations in Copenhagen, Aarhus, Odense and Aalborg. The KMD Group also comprises subsidiaries in Norway, Sweden, Finland and Poland.

Beskrivelse af usikkerhed ved indregning eller måling

Insecurity regarding recognition or measurement
Insecurity regarding recognition and measurement is described in note 26 and covers impairment in relation to development projects and investment in group enterprises.
There is no material insecurity regarding recognition or measurement despite that.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

Development in activities and financial matters
The Company's Income Statement of the financial year 1 April 2023 - 31 March 2024 shows a result of TDKK 11.911 and the Balance Sheet at 31 March 2024 a balance sheet total of TDKK 3.927.832 and an equity of TDKK 1.620.832.
The company has recognised the following special items during the fiscal year:
Reorganization and structural adjustments:
Expenses relating to reorganization and structural adjustements primarily concern redundancy costs to employees amounting to MDKK 18.3 (2022/23 MDKK 10.7).
Transformation programs:
Expenses relating to transformation programs primarily relate to expenses associated with changing the business setup, including server, mainframe operation amounts to MDKK 36.4 (2022/23 MDKK 36.4).
, Development in activities and financial matters
The Company's Income Statement of the financial year 1 April 2023 - 31 March 2024 shows a result of TDKK 11.911 and the Balance Sheet at 31 March 2024 a balance sheet total of TDKK 3.927.832 and an equity of TDKK 1.620.832.
The company has recognised the following special items during the fiscal year:
Reorganization and structural adjustments:
Expenses relating to reorganization and structural adjustements primarily concern redundancy costs to employees amounting to MDKK 18.3 (2022/23 MDKK 10.7).
Transformation programs:
Expenses relating to transformation programs primarily relate to expenses associated with changing the business setup, including server, mainframe operation amounts to MDKK 36.4 (2022/23 MDKK 36.4).

Beskrivelse af virksomhedens forventede udvikling

Expectations for the future
KMD expects revenue to be at the same level as this year +/- MDKK 25.
KMD expects its total operating profit to be improved with 50-100% due to further optimization of other operating cost and personnel cost as well as growth in core markets.