Annual Report 2023

Annual Report 2023ENERGY Overall, after many years of historically impressive results, the group’s Energy business area posted strong and satisfactory results. REVENUE EBITDA 20.0 DKK BILLION 809 DKK BILLION REDUCTION IN SCOPE 1 AND 2 EMISSIONS* 30 % SHARE OF WOMEN IN MANAGEMENT POSITIONS 26 % COLLEAGUES 865 LOST-TIME INJURY FREQUENCY RATE (LTIFR) 20 * Compared to 2019 While 2022 was marked by fears of energy shortages due to sanctions on imports of energy products from Russia, the situation in the energy sector started normalising in 2023. This is reflected, among other things, in lower energy prices compared to last year. Customer demand for energy products, especially in Germany, declined in the past year. Factors such as warmer weather, increased competition in the energy market and greater spending awareness among customers due to inflation led to lower demand for a number of products. At the same time, the slowdown in the German economy affected industrial output, with lower freight demand also affecting fuel sales for vehicular transport. The changing market situation is reflected in energy product margins, which in 2023 were lower than in the previous year. The first half of the year was positively impacted by higher earnings derived from energy crises in 2022, which contributes to the Energy business area realising a satisfactory result for 2023, despite the market challenges in the second half. Revenue is DKK 20.0 billion, and EBITDA lands at DKK 809 million, which is respectively 14% and 16% lower than in 2022. SALES OF HEATING PRODUCTS RETURN TO NORMAL LEVELS Our German energy company, Team Energie, which is one of the largest energy distributors in Germany, generates most of the revenue by far in the group’s Energy business area. Team Energie’s business is primarily centered around North-West Germany. When it comes to sales of heating products, including heating oil and natural gas to private and commercial customers, Team Energie got off to a good start in the first quarter of 2023. Overall, however, the year ended with more stable, but satisfactory sales. This is due, among other things, to a decrease in energy prices compared to the energy crisis in 2022 and a situation where, unlike the previous year, there was a sufficient volume of heating oil and natural gas in the market. The market was characterised by lower customer demand. This was partly due to a warmer climate with several temperature records being set throughout the year, resulting in a reduced demand for energy, but also to the fact that many customers filled up their stocks in 2022 amid fears that they would not be able to buy the energy needed. In 2023, the German economy was characterised by economic slowdown and negative growth, which contributed to a heightened price focus among consumers when choosing their fuel supplier. In 2023, Team Energie still felt the positive impact of contracts for the distribution of electricity and gas to households concluded in 2022, i.e. at a time of higher market prices. STABLE YEAR FOR FUEL AND MOBILITY Sales of fuel for private petrol, diesel and electric vehicles at Team Energie’s service stations remained stable throughout the year. Sales in service station shops were marginally lower in 2023 compared to the previous year. Again, this can be explained by the economic situation in Germany and the increased cost awareness among consumers. Sales of lubricating oil were also lower in 2023 compared to the previous year. Team Energie will continue to expand its service station infrastructure, and in 2023 also expanded its network of charging stations for electric vehicles. In this connection, Team Energie introduced a mobility card and most recently an app to replace the previous fuel card. The mobility card allows customers to charge their vehicles at 80,000 charging stations worldwide. 36 DLG ANNUAL REPORT 2023Side 35Side 37