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FINANCIAL REVIEW • 69
Administrative expenses amounted to DKK 1,981 million
in 2016 compared with DKK 1,657 million in 2015,
representing 9.8% of revenue compared with 9.9% in
2015. The nominal increase in administrative expenses was
primarily due to an increase in staff costs, and higher IT
costs, including one-off costs related to transition to a new
IT service provider.
EBITDA
EBITDA for 2016 increased by 27% to DKK 7,922 million
compared with DKK 6,214 million in 2015, resulting in an
EBITDA margin of 39.1% compared with 37.1% in 2015.
The EBITDA margin for the Americas was 36.5%,
corresponding to an increase of 2.2 percentage points
compared with 2015. The improvement was primarily
driven by the increase in gross margin.
The EBITDA margin for EMEA increased from 38.8%
in 2015 to 41.8% in 2016. The increase in EMEA was
primarily driven by the increase in gross margin as well as
improved leverage on the cost base from an increase in
revenue - primarily in the UK, Italy and France.
The EBITDA margin for the Asia Pacific region was
36.7% in 2016 compared with 39.5% in 2015. The
improvement in gross margin was more than offset by an
increase in costs related to the expansion in China, Japan
and Singapore, which had a negative impact of around 4
percentage points compared with 2015.
EBIT
EBIT for 2016 increased to DKK 7,404 million compared
with DKK 5,814 million in 2015, an improvement of 27%
on 2015, resulting in an EBIT margin of 36.5% for 2016
versus 34.7% in 2015.
NET FINANCIALS
Net financials amounted to an income of DKK 246 million
in 2016, compared with an expense of DKK 469 million
in 2015, primarily reflecting exchange rate gains including
gains, on foreign exchange hedge contracts.
INCOME TAX EXPENSE
Income tax expense was DKK 1,625 million in 2016
compared with DKK 1,671 million in 2015, corresponding
to an effective tax rate of 21.2% for 2016 compared with
31.3% in 2015. The decrease compared with 2015 was
due to a settlement made in May 2015 with the Danish tax
authorities, which had a one-off effect of DKK 364 million
in 2015.
REGIONAL
EBITDA MARGINS
2016
vs. 2015
2016
2015
(% pts)
Americas
36.5% 34.3% 2.2%
EMEA
41.8% 38.8% 3.0%
Asia Pacific
36.7% 39.5% -2.8%
Group
39.1% 37.1% 2.0%
SENSITIVITY ANALYSIS
ON CURRENCY
1
Change in
DKK million
exchange rate Revenue
EBITDA
USD
+10% 613
176
CAD
+10%
82
72
AUD
+10% 153
122
GBP
+10% 270
228
EUR
+1%
57
38
CNY
+10%
91
46
THB
+10%
-
-231
1
Revenue and EBITDA would have been impacted by the above
amounts if exchange rates in 2016 had been higher than the realised
exchange rates. The impact would have been the opposite if exchange
rates had been lower. The analysis is based on the transaction currency.