Sitecore Corporation A/S

Ledelsesberetning

Business reviewThe Sitecore Group (the “Group”) is a software company that predominantly provides customers with Web Content Management (WCM) services through its software. Sitecore Corporation A/S (“Sitecore” or “the Company”) is a legal or economic owner of the Group's legacy and organic Intellectual Property (“IP”), which it distributes through its network of affiliated entities.In connection with the Group company’s operating model:i. Sitecore USA Inc. and Sitecore Ireland Ltd entered into agreements with Sitecore Corporation A/S to have access to its historic IP in return for a license fee. ii. Sitecore USA Inc. and Sitecore Ireland Ltd entered into agreements with Sitecore Corporation A/S to reimburse Sitecore Corporation A/S for the research and development (‘R&D’) and Administration services performed by the company.Financial reviewThe Income statement for 2023/24 shows a profit of DKK’000 281,392 (profit of DKK’000 191,046 in 2022/23). The increase in profit of DKK’000 90,346 is primarily due to the following:• Income from investments in group enterprises has increased by DKK’000 66,368 (DKK’000 91,686 and 25,318 for 2023/24 and 2022/23 respectively, primarily due to dividends of DKK’000 91,686 from its 100% investment in Sitecore Belgium NV, Sitecore Sverige AB & Sitecore Malaysia Sdn during 2023/24, whereas the company received DKK’000 25,318 dividends from its 100% investment in Sitecore Netherlands B.V during 2022/23.• Reversal of impairment of investments in group enterprises has decreased by DKK’000 24,127 (DKK’000 0 and 24,127 for 2023/24 and 2022/23 respectively. As at 30th June 2024, there is no impairment of investments in group enterprises.• Financial income has increased by DKK’000 48,273 (DKK’000 120,102 and 71,829 for 2023/24 and 2022/23 respectively) primarily due to a 41,410 increase in interest income from intercompany balances with group enterprises and an 6,727 exchange gain for assets denominated in foreign currency.• Revenue has decreased by DKK’000 248,762 (DKK’000 368,110 and 616,872 for 2023/24 and 2022/23 respectively) primarily due to a decrease in administrative services performed by the company in 2023/24 evidenced by a 201,877 decrease in other external expense.• The financial performance of 2023/24 exceeds previously disclosed expectations due to the same explanations above on income from investments and reversal of impairment.At the balance sheet date, 30 June 2024, the company shows equity of DKK’000 2,933,875 (DKK ‘000 2,647,777 in 2022/23). The DKK’000 286,098 increase is equity is primarily due to the following factors:• Profit during the year of DKK’000 281,392, a group contribution of DKK’000 15,052, offset by a decrease in group share-based payment transactions of DKK’000 10,478 in fiscal year 2024 related to its consolidating parent.Inter-company loans are recognized as either non-current receivables from group enterprises or current receivables from group enterprise depending on maturity dates of loan. To the extent that the related entity has liquidity (see also note 3, Capital matters) and inter-company trade receivables were expected to be collected during the year or paid within twelve months, the prior year receivables from group enterprises have either been repaid or reclassified from non-current to current.Management's reviewFinancial risksSitecore Corporation A/S is subject to financial uncertainty and risks driven by external factors such as interest rate, foreign exchange, credit risk and liquidity risk. These risks are managed at a Group level. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance.The financial risks of the Group are managed centrally. The overall risk management guidelines and policies have been approved by the board of directors. The board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The CFO manages contracts and risk exposures and reports to the board of directors on a regular basis.Research and development activitiesSitecore USA Inc. and Sitecore Ireland Ltd have entered into agreements with Sitecore Corporation A/S to reimburse Sitecore Corporation A/S for the research and development (‘R&D’) activities performed by the company.Events after the balance sheet dateThe Company made the following changes to its leadership subsequent to 30 June 2024:• Eric Stine hired as COO and appointed to the Company Executive Board.• Michael Bannon hired as CFO and appointed to the Company Executive Board.• Constance Lisa Pauline Minc. Choufani appointed to the Board of Directors.There are no other significant events after the Balance Sheet Date. OutlookSitecore Corporation A/S intends to continue providing (i) R&D and administration services to the group along with (ii) access to its legacy and organic IP in return for a license fee from group companies. The management expects profits in 2024/25 will be in line with 2023/24.