2022
ANNUAL &
SUSTAINABILITY
REPORT
ITAB Shop Concept AB
VINJETT
2 ITAB
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ANNUAL REPORT 2022
CONTENTS
ITAB GROUP
3 About ITAB
4 2022 in brief
6 CEO's statement
8 Strategy & Business model
12 Financial targets
13 Case: Onred technology platform
14 Market overview
16 Operations
20 Case: Solution Design
SUSTAINABILITY REPORT
21 Sustainability report
22 Sustainable business for the future
25 Good working conditions
26 Business ethics
27 Efficiency in the value chain
28 Sustainable business development
29 Taxonomy
30 GRI reporting
30 Auditor's Statement in respect of the
statutory Sustainability Report
SHARE INFORMATION
32 ITAB share
FINANCIAL INFORMATION
35 Administration Report with Corporate
Governance Report
48 Board of Directors
49 Group management
50 Financial Review - Five years in summary
52 Financial tables
58 Accounting policies & Notes
89 Reconciliation of Alternative Performance Measures
90 Definitions
91 Signatures
92 Auditor's Report
94 Auditors
ANNUAL GENERAL MEETING 2023
95 Annual General Meeting 2023
95 Financial information in 2023
This Annual & Sustainability Report 2022 is in all
respects a translation of the Swedish original
Annual & Sustainability Report. In the event of any
differences between this translation and the Swedish
original, the latter shall prevail.
3ANNUAL REPORT 2022
|
ITAB
ABOUT ITAB
ITAB IS RETHINKING RETAIL
TOGETHER WITH OUR CUSTOMERS
ITAB creates in-store experiences that meet consumers demands for improved
experience in the physical environment and bridges the gap between the online
and offline worlds. By designing the complete customer journey to contain
engaging store design, lighting solutions and technology that helps influence
buying behaviour, ITAB supports retailers to sales uplifts, improved efficiency and
lower costs.
ITAB OPERATIONS
EMPLOYEES
2022 FIGURES
24
2,847
6,868 MSEK
403 MSEK
COUNTRIES
NET SALES
OPERATING PROFIT
5.9%
OPERATING MARGIN
PRODUCTION FACILITIES
15
LOCATIONS
IN
12
COUNTRIES
At ITAB we help retailers turn consumer
brand experience into physical reality
with our know-how, unique solutions
and ecosystem of partners. Our offe-
ring includes a broad range of solu-
tions and services in interior fixtures,
retail lighting and in-store technology.
The main customer groups inclu-
de Grocery, Home Improvements,
Fashion, Consumer Electronics, Ca-
fés & Service stations, Pharmacy, and
Health & Beaty. Europe is our primary
geographic market with 89 percent of
sales.
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ANNUAL REPORT 2022
2022 IN BRIEF
2022 IN BRIEF
Stable market demand and implemented price increases contributed to
a positive sales and earnings trend for ITAB Group in 2022, despite rapidly
rising prices for raw materials and energy. Efforts to reduce working capital
requirements resulted in strong cash flow for the year.
IMPROVED EARNINGS AND CASH FLOW DESPITE
OPERATIONAL CHALLENGES
The currency-adjusted growth for the Group amounted to 8
percent in 2022, of which organic growth accounted for 6 per-
cent. Earnings was positively impacted by the sales increase
enabled by implemented price increases and currency effects.
At the same time, high prices for raw materials and shipping, as
well as rapidly rising inflation, interest rates and energy prices,
negatively impacted the gross margin for the year. Efforts to re-
duce the working capital requirements in the Group resulted in
a strong cash flow in the second half of the year with reduced
inventory levels and accounts receivable.
SIGNIFICANT EVENTS IN 2022
The acquisition of Checkmark, one of the leading suppliers
of technology solutions in areas such as checkouts in the
Nordic region, at the start of the year further strengthened
ITAB’s market position. See Note 5 for more information.
In the beginning of March, ITAB decided to discontinue its
operations in Russia. The process of discontinuing the opera-
tions in a controlled manner is under way and the Russian
subsidiary was recognised as Discontinued Operations in
accordance with IFRS 5 as of the interim report for the third
quarter (refer to Note 5). Sales in Russia accounted for ap-
proximately 2.5 percent of the Group's total annual sales. The
Group's other operations comprise Continuing Operations.
The Board adopted new financial targets during the year,
focused on sustainable growth, increased profitability and
capital efficiency. Read more on page 12.
ITAB GROUP IN FIGURES
1)
2022 2021
Net sales, MSEK 6,868 6,087
Currency adjusted sales growth, % 8 19
Operating profit excl. non-recurring items, MSEK 443 382
Operating profit, MSEK 403 216
Operating margin (EBIT margin), % 5.9 3.6
Profit after financial items, MSEK 348 147
Profit margin, % 5.1 2.4
Proft after tax,MSEK 243 95
Cash flow from operating activities
2)
, MSEK 542 -165
Cash conversion
2)
, % 80 N/A
Return on equity
2)
, % 6.0 4.0
Interest-bearing net debt excl. lease liabilities
3)
,
MSEK
399 609
Equity/assets ratio
2)
, % 48 46
Average number of employees
2)
2,847 2,930
Per share data
Earnings per share before and after dilution, SEK 0.78 0.50
Dividend per share, SEK 0.50
4)
-
Equity per share
2)
, SEK 13.81 12.17
1)
All figures refer to Continuing Operations unless otherwise stated.
2)
Including Discontinued Operations.
3)
Comparative figure for 2021 has not been restated related to
Discontinued Operations.
4)
Pursuant to the Board of Directors' proposed dividend
for the 2022 financial year.
2,000
1,500
1,000
500
0
8,000
6,000
4,000
2,000
0
NET SALES
Net sales per quarter
Net sales, rolling 4 quarters
Per quarter, MSEK Rolling 4 quarters, MSEK
Q4/19
Q1/20
Q2/20
Q3/20
Q4/20
Q1/21
Q2/21
Q3/21
Q4/21
Q1/22
Q2/22
Q3/22
Q4/22
180
150
120
90
60
30
0
12
10
8
6
4
2
0
OPERATING PROFIT AND OPERATING MARGIN
(adjusted for non-recurring items)
Operating profit per quarter
Operating margin, rolling 4 quarters
Operating profit
per quarter, MSEK
Operating margin,
rolling 4 quarters, %
Q4/19
Q1/20
Q2/20
Q3/20
Q4/20
Q1/21
Q2/21
Q3/21
Q4/21
Q1/22
Q2/22
Q3/22
Q4/22
5ANNUAL REPORT 2022
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ITAB
2022 IN BRIEF
Currency-adjusted sales increased by 12 percent,
of which the acquisition of Checkmark during the
quarter contributed by 1 percent and the orga-
nic growth was 11 percent as a result of price
increases and healthy underlying demand. Profit
was positively impacted by the sales increase,
while shortages of components and rapidly rising
prices for raw materials, shipping and energy
negatively impacted the gross margin. During
the quarter, a decision was made to discontinue
ITAB's operations in Russia.
Currency-adjusted sales increased by 12 percent,
of which Checkmark contributed 2 percent and or-
ganic growth was 10 percent. Most of the Group’s
sales increase comprised price increases to offset
the continued rising costs for input goods. However,
the price adjustments did not fully offset the relati-
vely high costs for input goods and rising inflation.
Unfavourable product and customer mix had a ne-
gative effect on margins. At the end of the quarter,
new long-term and expanded credit agreements
totalling approximately MEUR 150 were signed.
Currency-adjusted sales increased by 17 percent,
of which Checkmark contributed 2 percent and
organic growth was 15 percent. Most of the sales in-
crease was attributable to implemented customer
price increases. Demand for Retail Tech and lighting
solutions increased during the quarter, which had a
positve impact on earnings. Price adjustments were
in better balance with increased costs.
Currency-adjusted sales declined by 6 percent, of
which Checkmark contributed 2 percent and orga-
nic growth was -8 percent. Stable demand, price
adjustments, currency effects, and more favoura-
ble customer and product mix had a positive effect
on gross margin, while inflation and operating costs
continued to rise. Strong cash flow in the quarter.
NET SALES
NET SALES
NET SALES
NET SALES
OPERATING PROFIT
CASH FLOW
OPERATING PROFIT
CASH FLOW
OPERATING PROFIT
CASH FLOW
OPERATING PROFIT
CASH FLOW
1,716 MSEK
1,700 MSEK
1,750 MSEK
1,702 MSEK
86 MSEK
-59 MSEK
63 MSEK
-4 MSEK
163 MSEK
136 MSEK
91 MSEK
469 MSEK
Q1
Q2
Q3
Q4
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ANNUAL REPORT 2022
CEO'S STATEMENT
STRONG CASH FLOW AND
IMPROVED EARNINGS DESPITE
A CHALLENGING 2022
Stable market demand and implemented price increases during 2022
contributed to a positive earnings trend and strengthened cash flow for ITAB
Group despite a surrounding world characterised by a great deal of uncertainty.
This entailed in operational challenges and economic uncertainty for our
customers and thereby also for ITAB.
UNIQUE SOLUTIONS STRENGTHEN OUR MARKET POSITION
In 2022 ITAB Group entered into several new agreements
with both existing and new customers in various retail sec-
tors in all of our geographic markets for both new stores
and upgrades of existing stores. An increasing number of
customers are noticing our unique, customised solutions
that save energy, reduce stock losses, increase operational
efficiency, and improve consumer experience. All customer
groups reported increased sales, and Central Europe was
the largest contributor to the Group’s sales increase. Of
ITAB’s three product areas, sales in Retail Technology and
Lighting performed especially well during the year.
Total currency-adjusted growth amounted to 8 percent
in 2022, of which organic growth accounted for 6 percent
and the acquisition of Checkmark at the beginning of the
year contributed by 2 percent.
POSITIVE EARNINGS TREND AND STRONG CASH FLOW
Adjusted for non-recurring items, operating profit amoun-
ted to MSEK 443 (382) in 2022, with an operating margin of
6.4 percent (6.3). Corresponding profit after financial items
increased by 24 percent to MSEK 388 (313). Non-recurring
items had only a marginal impact on the second half of
the year since the first phase of the One ITAB transforma-
tion was completed in 2022. Our reported profit after finan-
cial items increased by 137 percent to MSEK 348 (147). It
is especially gratifying to highlight our strong cash flow in
the fourth quarter of MSEK 469 as a result of our efforts to
reduce working capital requirements.
Our margin-strengthening measures including price ad-
justments, continual review of the cost structure and a be-
neficial product mix with increased sales of our technical
solutions, services and energy-efficient lighting solutions
7ANNUAL REPORT 2022
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ITAB
CEO'S STATEMENT
"We improve in-store
experiences, store efficiency,
sales uplifts, and reduce
product loss"
were the main factors underlying our improved earnings
during the year. Our assessment continues to be that we
have achieved a balance in relation to the cost increases
we encountered during the year, but we are continuing to
adjust our pricing when necessary on an ongoing basis.
FOLLOW-UP OF OUR FINANCIAL TARGETS
The Board adopted new financial targets for the Group
in conjunction with the financial statements for 2021 (see
page 12). The targets are measured as an average over a
business cycle, but it is still gratifying to note that we made
positive progress towards all of these targets over the past
year. Our currency-adjusted net sales increased by 8 per-
cent in 2022, which was well in line with the target of 4–8 per-
cent in sales growth, while the EBIT margin increased from
3.6 to 5.9 percent, compared with the EBIT margin target of
7–9 percent. Our share of cash conversion during the year
amounted to 80 percent, compared with the target of >80
percent. We are hereby continuing to focus on sustainable
growth, increased profitability and capital efficiency over
time. The dividend policy stipulates that at least 30 percent
of the profit after tax is to be distributed over time and ba-
sed on our strong financial position, the Board decided to
propose a dividend of SEK 0.50 per ordinary share for 2022,
which corresponds to close to 65 percent of the profit for
the year.
FOCUS IN 2023
Our goal is to strengthen our customers’ competitiveness
with unique and competitive solutions for reduced energy
consumption, increased operational efficiency and redu-
ced stock losses in stores. To achieve this we are developing
our operations and invest in the transition to become the
leading solution provider in the retail sector. Our ambition
is to continue increasing the proportion of services and so-
lutions and to further strengthen our digital offerings. To this
end we recently launched our own unique Onred technolo-
gy platform for retailers that connects and enhances retail
experiences. This unified software platform connects ITAB’s
suite of digital and physical solutions, from self-service order
points and Click & Collect lockers to automated gates and
vision fraud detection.
As an important part of the strategic direction, we have
also strengthened our ecosystem of partners that com-
plements the Group’s portfolio of innovative solutions. The
new long-term partnerships with Rapitag, Signatrix, and
Theroy+Practice help drive added value to retailers through
cutting-edge technology and Artificial Intelligence (AI) so-
lutions for improved in-store experiences, store efficiency,
sales uplifts and higher conversion rates, and loss-preven-
tion.
We are working continually on strengthening our ear-
nings trend through adapted price increases and cost-sa-
ving measures. The current economic trend, with high infla-
tion and rising interest-rate levels, leads to uncertainty and
makes our customers more cautious, and at present we
see signs of a market downturn. We are following the situa-
tion closely and will implement measures if needed. At the
same time, the current market situation and our strengthe-
ned financial position give us opportunities to grow further
through strategic acquisitions. Our new capabilities and a
future joint information landscape will support ITAB's new
operating model in order to further streamline operations
in the next three to four years and make the Group more
scalable and flexible for a changing world.
IN CONCLUSION
We at ITAB have continued to strengthen our customers'
competitiveness during 2022 despite operational challen-
ges. I would like to extend my sincere thanks to all of our
customers and partners for their continued confidence in
us – and to all of our employees for their many fine contribu-
tions in an eventful and challenging year.
Jönköping, March 2023
Andréas Elgaard
President & CEO
ITAB Shop Concept AB
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ANNUAL REPORT 2022
STRATEGY & BUSINESS MODEL
ITAB'S VALUE PROPOSITION HELP
STRENGTHEN RETAILERS
Changes in the retail market in recent years have been driven by new consumer
behaviour and expectations. To keep up with developments and to better under-
stand future demand, requires in-depth knowledge of the end consumer. ITAB's
portfolio of solutions and services supports the retail sector to meet their challen-
ges of today and to take full advantage of new opportunities for the future.
RETHINK RETAIL. TOGETHER.
ITAB's mission is to help customers turn consumer brand
experience into physical reality with our know-how, solu-
tions and ecosystem of partners. Together with the Group's
customers, we create effective solutions that contribute to
versatile and inspirational experiences. The offering inclu-
des solution design, customised shop fittings, checkouts,
consumer flow solutions, professional lighting systems, and
digitally interactive solutions for the physical store.
CONSUMERS AT THE HEART OF EVOLUTION
With consumers having more choice and greater expec-
tations on experience and convenience, it is getting har-
der for retailers to keep up with a consumer who expects
their varying needs to be met every time, 24/7. In addition,
disruption has come from new competitors, new channels
and new business models. In order to remain relevant for
their consumers, retailers must bridge the gap between the
online and physical store worlds.
By truly understanding the consumer’s behaviour and
market challenges and by being able to share these in-
sights and experiences across all parts of the Group, ITAB
is the best partner to help retailers find the right solutions to
convert their brand strategy into a physical store/meeting
place with a clear and rapid Return on Investment.
RETAIL
INTERIOR
RETAIL
TECH
RETAIL
LIGHTING
Experience
Seamless payments
AI & Digital engagement
Online / offline experience
Service efficencies
Actionable insight
STORE
DESIGN
SOLUTION
DESIGN
PROJECT
MANAGEMENT
MAINTENANCE
ITAB PLATFORM
SERVICES
SOLUTIONS
9ANNUAL REPORT 2022
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ITAB
STRATEGY & BUSINESS MODEL
STRONG VALUE PROPOSITION
In an era when consumers are demanding bet-
ter retail experiences and costs are rising, ITAB
helps retailers differentiate from their competitors,
increase sales, and contribute to changing the
way physical shops are run. Hence, our value pro-
position is customer-centric and focuses on four
Return on Investment objectives over all solutions
and services of the Group:
The successful store concept must stand out by offering an
attractive, personalised, and frictionless consumer journey
and experiences that meet the expectations and remain
relevant, and links both online and in the physical store.
•
DESIRED CONSUMER BRAND EXPERIENCE
Translating aspirations of the retailer's brand into a
physical store experience, driving consumer footfall
and retention.
•
INCREASED CONVERSIONS AND SALES
Delivering a store format, department or range expe-
rience that influences consumer buying behaviour.
•
IMPROVED OPERATIONAL EFFICIENCIES AND SERVICE
Creating a seamless consumer journey that in-
creases throughput and improves service levels.
•
REDUCED OPERATIONAL COSTS
Improving the consumer journey's efficiency to influ-
ence retailers' operating models and reduce costs.
CUSTOMISED SOLUTIONS FOR IMPROVED OPERATIONAL
EFFICIENCY FOR RETAILERS
An increasing number of retailers are discovering ITAB's uni-
que, customised solutions that save energy, reduce stock
losses, increase operational efficiency, and improve con-
sumer interactions and experiences in store. The Group's
product areas are: Retail Interior – with customised shop
fittings; Retail Technology – with checkouts, consumer flow
solution, and digitally interactive solutions; Retail Lighting –
with professional and energy efficient lighting systems; and
Services – with store and solution design, project manage-
ment, and maintenance.
ITAB today has our own operations in 24 countries with
some 2,850 employees. The Group has 15 production fa-
cilities in 12 countries, mainly focusing on production and
assembly of shop fittings, checkouts, gates, and lighting
solutions.
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ANNUAL REPORT 2022
STRATEGY & BUSINESS MODEL
STRATEGY TO MEET RETAILERS'
CHALLENGES NOW AND IN THE FUTURE
The core of the strategy is to evolve ITAB’s operations to a more solution-based
and agile business model. This is built on the Group’s shared knowledge base
and its success in delivering innovative solutions. At the same time, ITAB's
management, operational and cost structures are re-aligned in accordance
with the strategy.
SEVEN STRATEGIC PRIORITIES
The One ITAB strategy, launched in spring 2020, identi-
fied seven strategic priorities to streamline and help drive
growth and change in the Group. Specific goals and detai-
led action plans for each priority were developed, and sin-
ce then a large number of activities have been successfully
implemented and targets met to realise plans and achieve
set goals as quickly and efficiently as possible.
The priorities were phased to support the needs of the
Group's operations: firstly, to stabilise and strenghten our
earnings and financial position; secondly, to build & invest
in new fundamental and distinguishing capabilities; and
thirdly, to enter our expansion phase.
The Stabilise-phase was completed according to plan in
mid-2022, with substantial savings in purchasing, sales, ad-
ministration, and fixed costs for production. Following the
successful recapitalisation and rights issue completed in
March 2021, the financial position of the Group is strong.
The measures implemented have made it possible for ITAB
to remain strong in a time of significant external disruptions.
FOCUS ON NEW CAPABILITIES AND EXPANSION
The stable foundation is now enabling investments in new
capabilities and expansion to make ITAB even stronger go-
ing forward.
11ANNUAL REPORT 2022
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ITAB
STRATEGY & BUSINESS MODEL
The ambition is to continue increa-
sing the proportion of services and
solutions, and to further strengthen
the Group's digital offerings. At the
same time, the current market situa
-
tion and strengthened financial po-
sition give ITAB opportunities to also
grow further through strategic acqui
-
sitions in order to strenghten the mar-
ket position, The Group is evaluating
potential acquisition targets on a re
-
gular basis.
STRONG ECOSYSTEM OF PARTNERS
As an important part of the strategic
direction, ITAB has a strong ecosys
-
tem of partners that complements
the Group’s portfolio of innovative so
-
lutions. As examples, the long-term
partnerships with Rapitag, Signatrix,
and Theroy+Practice in the begin
-
ning of 2023 help drive added value
to retailers through cutting-edge
technology and Artificial Intelligence
(AI) solutions. The aim is to improve
in-store experiences, store efficiency,
sales uplifts, and conversion rates,
and loss-prevention. ITAB Group has
also launched its own unique Onred
technology platform for retailers that
enhances retail experiences in sto
-
res. Onred connects ITAB’s suite of
digital and physical solutions, from
self-service order points and Click &
Collect lockers to automated gates
and vision fraud detection.
The Group's new capabilities and
a joint information landscape will
support ITAB's new operating model
in order to further streamline opera
-
tions in the next three to four years
and make ITAB more scalable and
flexible for a changing world.
BEING A SOLUTION PROVIDER
Our strategic vision is to develop a solution-based business
model, building on the Group’s shared knowledge base and
our success in delivering innovative solutions.
RE-ENGINEERED COST STRUCTURE
In accordance with the One ITAB strategy, we are re-aligning
the Group’s management, operational and cost structures,
ways of working and differentiating capabilities. Our focus is
to continue ensuring profitable and sustainable growth go-
ing forward.
EMPOWERING PEOPLE AND COMMON WAYS OF WORKING
Through clear KPIs, common ways of working and access to
the right Information at the right time, our people will be able
to make good business decisions. Our aim is to make all ways
of working parallel, collaborative, cross-functional and trans-
parent.
DEVELOPING AN ECOSYSTEM OF PARTNERS
Building a robust ecosystem of partners will enable us both
to deliver the complete solutions required by our customers,
and to reduce our supplier numbers to drive out complexity
and improve predictability.
EXPANDING OUR MARKET POSITION
Our main differentiator today is our know-how, our customer
relations, and our comprehensive portfolio, which is unique
in the market. We will build on these strengths and make
them a reality in all our regions, thereby expanding our mar-
ket position.
EXCELLENCE IN OPERATIONS
Excellence in operations means that we take pride in “first
time right” and “in the agreed time,” and use Lean methodo-
logies when we design our common ways of working. We will
continue to focus on reducing lead times, improving quality
and eliminating waste in our business.
SUSTAINABLE FUTURE
At ITAB, we collaborate and continuously innovate for a
sustainable future. We have clear goals and ambitions for
our own operations in terms of sustainable business develop-
ment, efficiency in the value chain, good working conditions
and business ethics.
STRATEGIC PRIORITIES
12 ITAB
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ANNUAL REPORT 2022
FINANCIAL TARGETS
13ANNUAL REPORT 2022
|
ITAB
CASE: ONRED TECHNOLOGY PLATFORM
Onred technology platform connects
ITAB’s suite of digital and physical solu-
tions, from self-service order points and
Click & Collect lockers to automated ga-
tes and vision fraud detection.
Read more at itabgroup.com.
CASE
ONRED DELIVERS A DOUBLE DIGITAL UPLIFT IN
BASKET SIZE FOR LEADING GROCERY RETAILER
ITAB launched its market leading Onred tech-
nology platform in 2023. The deployment of
Onred into a leading UK grocery retailer com-
prised the implementation of 300+ Café self-
order points across 300 stores, supporting over
100,000+ weekly transactions.
Sales uplift and increased efficiency
ITAB created an end-to-end solution for the
retailer’s Cafés, including item level inventory
management, intelligent digital signage, self-
service order point, mobile order application,
kitchen management, loyalty and 3rd party
integrations to Deliveroo and Uber Eats, along
with multiple payment providers.
The successful deployment of Onred delive-
red a double digital uplift in basket size for the
retailer, more relevant payment choices for
consumers whilst enabling a significant reduc-
tion in overall operating hours, without impac-
ting overall service levels. This has resulted in
an 18 month or less Return on Investment.
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ANNUAL REPORT 2022
MARKET OVERVIEW
STRONG MARKET POSITION IN EUROPE
ITAB’s market position and potential for growth are based on close, long-term
collaborations with customers and business partners. The primary geographic
market is Europe with 89 percent of the Group's sales. Grocery is the largest
customer group with 54 percent.
25%
22%
21%
13%
8%
11%
NORTHERN EUROPE
Northern Europe includes the Nordic countries and it is ITAB’s largest geograp-
hic area. The sales trend over the last few years have been fairly stable in Gro-
cery and Home Improvements, while demand in Fashion has declined.
SOUTHERN EUROPE
Following the acquisition of Cefla Retail Solutions in 2021, Southern Europe is
now ITAB’s second-largest geographic area, mainly comprising Italy, France
and Spain. Stable market demand in Grocery and most other customer groups
during recent years.
CENTRAL EUROPE
Central Europe includes Germany, the Netherlands, the Czech Republic, Bel-
gium, Hungary, Switzerland and Austria. Positive sales trend over the last few
years, primarily in Grocery and Fashion.
UNITED KINGDOM & IRELAND
The markets in United Kingdom & Ireland have been characterised by increa-
sing uncertainty during recent years, mainly due to Brexit and the pandemic.
Consequently, demand has been more cautious than in ITAB's other geograp-
hic markets.
EASTERN EUROPE
Eastern Europe, including the Baltic States, Poland, Romania, Slovakia, Bulgaria and
Slovenia, has had a positive sales development in Fashion and Home Improve-
ments over the last few years. However, the sales trend in 2022 was more cautious.
REST OF THE WORLD
Rest of the World comprises all countries outside of Europe, with North America,
Australia, China, Argentina and Saudi Arabia accounting for more than 50
percent of sales. Stable demand in most customer groups during recent years.
ITAB’s customers include several of Europe’s largest retail chains and brand owners within both the grocery
and the specialist trade sectors, including international and national chains and brands. The customers
include Albert Heijn, Asda, Axfood, Bricoman, C&A, Carrefour, Celesio, Circle K, Clas Ohlson, Conad,
Coop, Costa, Dixon, Dollarstore, Edeka, Elon, Etos, Eurospin, Finiper, H&M, Homebase, ICA, IKEA, John
Lewis, Jumbo, Kesko, LeClerc, Leroy Merlin, Lidl, LuLu, Majid Al Futtaim, Metro Group, Morrisons, Norges-
Gruppen, Pandora, Prisma, Polestar, Real, Rema, Rewe, Rimi, Tesco, Tiger, Uniqlo and Waitrose. The single
largest customer accounts for approximately 10 percent of the Group's total net sales.
15ANNUAL REPORT 2022
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ITAB
MARKET OVERVIEW
54% 11%14% 21%
GROCERY
The Group’s largest
customer group
mainly comprises
grocery retailers and
food stores.
FASHION
This customer group
includes stores selling
ready-to-wear clothing
and shoes, etc.
HOME
IMPROVEMENTS
The customer group
refers primarily to DIY,
furniture and home
furnishings stores.
OTHER CUSTOMER
GROUPS
Other customer groups
include pharmacies,
health & beauty, consu-
mer electronics, sport &
leisure, service stations,
hotels, offices, brands,
industry, cafés and
restaurants.
The overall market for ITAB is fragmented with a number of both national and
international manufacturers and suppliers to the European retail sector. These
companies are either specialised in one or more product and service areas, or
offering a wide range of products and services for retailers in several of ITAB's
product areas and in most geographic markets. ITAB is today the market leader
in checkouts for retailers in Europe, and one of Europe’s largest suppliers of
shop fitting concepts, customer guidance, and retail lighting solutions.
16 ITAB
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ANNUAL REPORT 2022
OPERATIONS | RETAIL INTERIOR
DIFFERENTIATING STORE
EXPERIENCES FOR SALES UPLIFT
ITAB co-creates modern store experiences together with its customers through
an iterative design process. The Group's customised shop fittings are aimed at
improving the display of products, and improve efficiency in the store – with the
help of innovative solutions and environmentally friendly materials.
With a focus on designing for people, ITAB’s
store design approach enables the custo-
mers to co-create differentiating store ex-
periences alongside ITAB through an itera-
tive process. Through strong know-how and
retail industry experience, the Group's solu-
tion designers are able to share and lever-
age ideas to help maximise the Return on
Investment irrespective of the customer’s
specific product offering or target consu-
mers. The aim is always to improve the con-
sumer joureney, increase efficiency, pre-
vent stock losses, and reduce costs – and
to ultimately result in increased sales and
conversions.
INTEGRATED SERVICE MODEL
ITAB is able to maintain a high level of ser-
vice through an integrated service model
that spans the entire value chain - from
standard shelving to specialist fittings, and
covering different types of interactive and
merchandising aids in between.
ITAB's commitment to our customers en-
compasses both the Group's own produc-
tion facilities, and our external suppliers and
manufacturers. In addition, the Group also
offers a comprehensive service portfolio,
helping to improve the life cycle of the pro-
ducts sold and installed - thereby reducing
waste and costs for the customers over time.
17ANNUAL REPORT 2022
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ITAB
OPERATIONS | RETAIL TECHNOLOGY
MARKET LEADING TECHNOLOGY
SOLUTIONS FOR RETAIL
ITAB offers a cutting-edge suite of digital and physical technology solutions, from
self-service order points, checkouts, and in-store guidance to automated gates,
vision fraud detection, and Click & Collect lockers. These solutions can now be
connected through ITAB's unified software platform – Onred. The Group's market
leading solutions create frictionless consumer journeys and experiences.
Optimising consumer flows and service levels
are important factors in attracting consu-
mers to the physical store. To create the best
solutions that reduce the store’s operating
costs, improve throughput and contribute to
a frictionless consumer journey, ITAB has an
in-depth understanding of existing and future
consumer behaviours.
OPTIMISED SOLUTIONS
ENHANCE RETAIL EXPERIENCES
ITAB offers market leading solutions for protec-
ting store entry and exits, checkouts and self-
checkout solutions, self-service stations, and
store guidance solutions for the retail sector.
The solutions can be connected, updated, and
maintained using ITAB's new Onred platform.
ITAB's solution design approach is a crea-
tive process where we co-create alongside
our customers, with the aim of finding the op-
timum solution that focuses on improved store
efficiency, loss prevention, guiding customers
properly, and creating flows that drive sales.
Through cutting-edge data analysis and Ar-
tificial Intelligence (AI) integrated in ITAB's so-
lutions, service levels and layout of the store
can be optimised.
E-COMMERCE AND PHYSICAL
STORES WORKING TOGETHER
New types of solutions for fast, safe and effi-
cient delivery have been on the agendas for
most retailers. ITAB offers solutions for Click &
Collect, with alternatives ranging from basic
pick-up points to fully automated lockers.
25%
Retailers' in-store
efficiencies improve
by up to 25 percent
through ITAB's range
of solutions.
18 ITAB
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ANNUAL REPORT 2022
OPERATIONS | RETAIL LIGHTING
SUSTAINABLE LIGHTING SOLUTIONS
FOR IMPROVED ENERGY EFFICIENCY
In line with increased knowledge about the way light affects people, lighting has
become an increasingly central part of the store concept. During refurbishments
and new construction, energy efficiency is also increasingly important. ITAB
develops, manufactures and sells complete professional lighting systems, light
planning, and light services.
90%
Retailers experience
improved energy
efficiency in more than
90 percent of ITAB's
track lighting systems.
Energy consumption represents a large proportion of a
store’s total costs. Energy efficiency is thus central to the
development of ITAB’s lighting products and systems. With
rising energy prices and requirements for sharply reducing
CO emissions and on using recyclable materials, ITAB sees
great opportunities to collaborate closely with the Group's
customers to add substantial value in the transition to more
economic and sustainable solutions.
KEY FOCUS WHEN DEVELOPING LIGHTING SOLUTIONS
As well as lighting being a critical element of store design,
the importance of light for our well-being is gaining increa-
sing focus in the design of physical environments and has
a major impact on purchasing decisions and the work en-
vironment of store staff. Consumer behaviour and the well-
being of employees are thus our key focus when develo-
ping lighting solutions.
We at ITAB have succeeded to improve our LED spotlights
significantly during the past 5 years with substantially lower
energy consumption, for the benefit of our customers. An
example is the retrofitting of 350 stores for one retail custo-
mer in Europe with modern track lights, which saves 33
MWh and reduces CO emissions with 8,300 tons per year
for that customer alone.
Shops often use more than one type of lighting to create the
right atmosphere. Through its range of lighting solutions, ITAB
can be an all-inclusive supplier for retail shops and chains.
SALES TO MORE THAN 90 COUNTRIES
The Group sells and distributes lighting products to more
than 90 countries, both through its own companies and th-
rough national distributors, in order to provide customers
with local support in respect of imports, certification and
local service/maintenance.
19ANNUAL REPORT 2022
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ITAB
OPERATIONS | SERVICES
RETAIL TRANSFORMATION SERVICES
ITAB's services range from concept creation, store and solution design, project
management, manufacturing, and installation to end-to-end maintenance and
after-care services.
ITAB understands the importance of an end-to-end
service which provides peace of mind and support
when needed. The Group's portfolio of services in-
clude:
SOLUTION DESIGN
Our Solution Design methodology is used to co-
create in-store solutions with our customers that
truly deliver value both to the consumers' shopping
journey and ensuring a strong Return on Investment
for our customers. Solution Design commences with
the consumers including data, trends and market
analysis of them for all types of solutions. This en-
sures that our design thinkers are able to develop
the end-to-end consumer journey by experiencing
through the consumer and retailers lenses. Which
in turn provides solutions that are fully measurable
and curated to drive measurable results for our part-
ners. This type of approach will deliver benefits in
the short and long term and help grow the level of
customer relationships.
RETAIL TRANSFORMATION SERVICES
A critical success factor for our customer is our abi-
lity to deliver right the first time. Our retail transfor-
mation services support our customers with all the
implementation services required for the execution
of a successful project, including store design and
format development, project managment, equip-
ment consolidation and in-store implementation. By
offerring this combination of services we can help
our customers reduce project timescales and mini-
mise impact on trading and customer disruption.
MAINTENANCE AND AFTER-CARE
ITAB's aim is to always be close to the customers
and maintain a long-term relationship even after
a project has been completed. Ensuring that our
customers' equipment is operating at the highest
level with minimal downtime and working together
on further developments is a natural continuation in
a partnership with ITAB.
20 ITAB
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ANNUAL REPORT 2022
CASE: SOLUTION DESIGN
MARKET LEADING CHECKOUTS
TO EUROPEAN GROCERY CHAIN
In January 2023, ITAB Group signed a three-
year agreement with a leading European
grocery chain for the delivery of checkouts,
merchandising solutions and services for up-
coming new stores and all store refurbishments
in multiple countries.
Together with the customer, ITAB has develo-
ped a tailored solution for the chain’s stores co-
vering the needs of modern consumers as well
as improved performance and design of the
customer. Ergonomics and function have gui-
ded the development.
The right partner for the future
Using ITAB’s Solution Design Approach, the
Group designed brand new, efficient, and er-
gonomic solutions for checkouts and merchan-
dising solutions to fulfill the high requirements
of the customer. After a sampling process and
pilot installations the customer concluded that
ITAB is the right partner for the installations and
future develop ment of the chain’s stores.
Consumer expectations and overall
shopping needs are ever-changing, im-
pacting market dynamics and the de-
mands on retailers investment priorities.
Through ITAB Solution Design expertise
and approach we help the customers to
Rethink Retail. Together.
Read more at itabgroup.com.
CASE
21ANNUAL REPORT 2022
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ITAB
SUSTAINABILITY
REPORT
ABOUT ITAB’S SUSTAINABILITY REPORT 2022
This is ITAB’s Sustainability Report for the 2022 financial
year and comprises pages 21-31. It encompasses the
Group’s statutory Sustainability Report as a separate
section from the Administration Report. The Sustaina-
bility Report covers the Parent Company, ITAB Shop
Concept AB (publ), corp. reg. no. 556292-1089, and
all entities consolidated in the Group’s consolidated
accounts as specified on page 80, unless otherwise
specified. The Sustainability Report has been prepa-
red in accordance with the provisions of the Annual
Accounts Act and has not been externally reviewed.
The Board of Directores for ITAB Shop Concept AB
has approved the Sustainability Report in conjunction
with the signing of the annual and consolidated fi-
nancial statement. The auditor’s statement in respect
of the statutory Sustainability Report can be found on
page 30.
"Continious dialogue
with all stakeholders and
materiality assessments
give us direction for the future."
SUSTAINABILITY REPORT
Sustainability is more than just an opportunity for ITAB –
it is of strategic importance to us. It is therefore gratifying
that 2022 has been another step forward in our sustainabi-
lity journey and we have been able to establish baselines
for some of the key sustainability metrics and advanced
some of our goals. For example, nearly 50 percent of the
electricity used in 2022 was from renewable sources, which
puts us on target to achieve our 2025 goal of 100 percent
renewable electricity. In addition, modern lighting solutions
from ITAB enable grocery chains and other retailers to sub-
stantially lower their own energy consumption.
THE JOURNEY AHEAD
As an integrated and crucial part of all activities in ITAB
Group, we will continue the on-going efforts to achieve the
goals in our four focus areas in 2023, but it is also a fitting
time to take a step back and look at our sustainability pro-
gram going forward. Accordingly, we will perform a new ex-
haustive materiality assessment to add to our current one
from 2016. There have been fundamental changes in the
prerequisites for the retail sector and our own business over
the last few years and now is the right time to confirm the
direction of our sustainability efforts to ensure that we are
focusing our resources in the right areas.
From this assessment a long-term roadmap will be deve-
loped which will give us a path to not only achieve net zero
carbon emissions but also an overall plan that we can share
with our different stakeholders. This will show how we are de-
veloping as a company environmentally, but also looking
more at our people, our supply chain and the ethics under
which we operate, hereby fundamentally changing our
company to ensure our due diligence is done and we make
the right decisions, for the right reasons, at the right time.
Andréas Elgaard
President & CEO
ITAB Shop Concept AB
22 ITAB
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ANNUAL REPORT 2022
SUSTAINABILITY REPORT
SUSTAINABLE BUSINESS FOR THE FUTURE
Sustainability refers to development that meets today’s needs without jeopar dising
the ability for future generations to meet their own needs. Hence – as a proponent
of sustainable development, ITAB takes responsibility for the way in which our busi-
ness reaches its profitability goals. This responsibility spans the entire value chain
– from manufacturer and supplier to consumer.
Sustainability is integrated into our business and ITAB sup-
ports 2030 Agenda for Sustainable Development and the
Sustainable Development Goals ("SDGs") developed to
measure the success of the plan. ITAB has, through the
SDG
At ITAB we help customers turn consumer brand experience into physical
reality with our know-how, solutions and ecosystem of partners.
Materiality assessment
Waste • Tax • Integration • Emission • Water • Attractive workplace
Efficient transport • Health • Ergonomic solutions • Materials • Pay conditions
Safety • Sustainable shops • Diversity • Working environment
Ethics / basic values • Supplier conditions • Staff development opportunities
At ITAB we collaborate and continuously innovate for a sustainable
future. We have clear goals and ambitions for our own operations
in terms of sustainable business development, efficiency in the
value chain, good working conditions and business etics.
Being a
solution
provider
Customers Suppliers Employees Owners Investors Society
Sustainable business
development
Business ethicsEfficiency in the value chainGood working conditions
Attractive workplace
Working environment
Health & Safety
Staff development
opportunities
Diversity & Equality
Pay conditions
Waste
Integration
Emissions
Water
Efficient transport
Materials
Energy
Ethics
Basic values
Supplier conditions
Taxes
Ergonomic solutions
Sustainable shops
Re-engineered
cost structure
Empowering
people and
common ways
of working
Developing an
ecosystem of
partners
Expanding
our market
position
Excellence in
operations
Sustainable
future
Materiality
assessment
sorted into
focus areas
Focus areas
based
on above
Strategy
Stakeholders
Materiality
assessment
Vision
vision, strategy, stakeholders, and materiality assessment,
identified four main focus areas for the Group’s sustainabi-
lity journey. All four focus areas are linked to one main SDG
and support other SDGs shown below.
23ANNUAL REPORT 2022
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ITAB
For ITAB, it is important to maintain an ongoing dialogue
with its stakeholders and thereby build a sustainability plan
that incorporates their expectations. ITABs stakeholder are:
REPORTING AND FOLLOWING UP
Reporting on how well ITAB’s sustainability work is procee-
ding takes place in line with Global Reporting Initiatives’
(GRI) guidelines for sustainability reporting. ITAB has deve-
loped several Key Performance Indicators (KPIs) for regular
following up and reporting of the sustainability work. The
KPIs are reported quarterly by each commercial company
to the Parent Company, and are followed up in ITAB’s Sustai-
nability Council, in which all the Group functions are repre-
sented. The KPI’s and the goals are shown through the four
focus areas on the following pages.
STAKEHOLDER DIALOGUE EXPECTATIONS
Customers Through Key Account Managers, project managers and
customer service channels. Also done between Business unit
leaders and customers senior management
• Quality products delivered on time
and at a competitive price
• Sustainable business
Suppliers Through Key Account Managers, local procurement buyers
and managers, and via the Head of Procurement
• Approved, Preferred and ultimately Partner relationships.
• Payment within agreed payment terms
• Sustainable business
Employees Continuous dialogue in the day-to-business.
Appraisals. Safety committees. Intranet communications
• Attractive workplace
• Good working environment
• Health & Safety
• Staff development and career opportunities
• Diverse and equal workplace
• Pay conditions
• Sustainable business
Owners / Investors Policies. Board meetings. General Meetings of Shareholders.
Investor meetings
• Return on Investment
• Transparent reporting
• Sustainable business
Society Contact with local governments. Internet • Compliance with all laws in all jurisdictions
• Sustainable business
• Correct taxes paid in the right jurisdictions
Our annual performance is mea-
sured by an external company,
EcoVadis. EcoVadis are an in-
dependent provider of business
sustainability ratings, intelligence,
and collaborative performance im-
provement tools for global supply chains.
In April 2022 ITAB was given a bronze medal with a
score of 50/100. ITAB has developed a road map
to deliver the sustainability objectives, and this will
be reflected in the score received from EcoVadis
over the coming years.
ITAB’s tool for internal control is based on the COSO fram-
ework. This is a framework for evaluating a company’s inter-
nal control over financial reporting. The framework stream-
lines the work on the internal control. The internal audit
programme has been revised during the year, primarily on
the basis of business risks. The internal audit now also co-
vers the following up of the sustainability programme and
the Code of Conduct. ITAB regularly reviews and evaluates
internal checks in all subsidiaries, which provides reasona-
ble assurance of an appropriate and effective operation,
reliable financial reporting and compliance with laws and
ordinances.
SUSTAINABILITY RISKS
ITAB is continuing to work on reducing the risks as regards
environmental and social issues in the value chain. The as-
sessment of sustainability risks is an important part of the
work on the materiality analysis and forms the basis for the
sustainability programme and the priorities as regards our
sustainable goals. The Group’s latest exhaustive Materiality
Assessment was completed in 2016. As there has been sig-
nificant changes in the business and market development
since then, in 2021 we reviewed our customers’ ESG reports
and their goals and aligned our short-term goals with those.
These have acted as a bridge for us to deliver a new ex-
haustive materiality assessment update which will be com-
pleted in 2023 and this will build upon the last assessment
SUSTAINABILITY REPORT
24 ITAB
|
ANNUAL REPORT 2022
and reflect the changes in the business since the latest
assessment.
The materiality assessment is done by understanding
the context of the organisation and identifying the actual
and potential impacts that we have, or could have as a
business. Both positive and negative impacts on the eco-
nomy, human rights, the environment and people are as-
sessed alongside of impacts from waste, material use, to
name a few. After that the significance of the impacts are
risk assessed, a final prioritisation is done with input from
our stakeholders.
ITAB has operations in some markets that are associa-
ted with a raised sustainability risk. Issues relating to oc-
cupational health and safety, working conditions and
corruption are particularly important from a risk perspec-
tive. Consequently, ITAB has defined high-, medium-, and
low-risk countries. For high-risk countries a higher level
of scrutiny is required as defined within our Procurement
Procedures as well as the Supplier Code of Conduct and
Sustainable Procurement Policy.
ECONOMIC VALUE GENERATED AND
DISTRIBUTED TO STAKEHOLDERS
Economic value is a measure that shows the value we
create through all of our operations and then the allo-
cation of that value through our stakeholders. Our stake-
holders are made up of our suppliers, employees, banks,
owners, and society. The graph shows the distribution of
the economic value for 2022.
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
MSEK
ECONOMIC VALUE GENERATED 2022
Total sales
To Suppliers
To Employees
To Banks
To Shareholders*
To Society
Economic
Value Retained
HEATING STOVES
FOR UKRAINE
In the fall of 2022, a Swedish manufacturer of far-
ming machinery, Väderstad AB, designed a hea-
ting stove to support war torn Ukraine. This design
was released for all metal fabricators in Sweden to
use freely, and – with the help of our suppliers pro-
viding steel, pipes and components for free – ITAB
is proud to support this initiative.
Our facilities in Stadsbygd in Norway, Boskowice
in Czech Republic and Vilnius in Lithuania have
each produced 96 of the heating stoves. Our em-
ployees from all across the sites were involved in
the final assembly of the stoves, including adminis-
trative and sales personnel.
In early January 2023, the facilities then liaised
with the Swedish Business Association in Ukraine
to ensure delivery of the 288 stoves to the people
in need.
SUSTAINABILITY REPORT
6,868 4,710
1,111
55
109
396
487
*As proposed by the Board of Directors.
"Sustainability is also about supporting your
local community, and given that many of our
employees are directly or indirectly affected
by the war in Ukraine it was natural for us to
contribute to this initiative."
Aleš Zouhar, Managing Director, ITAB in Boskovice
25ANNUAL REPORT 2022
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ITAB
GOOD WORKING CONDITIONS
People are central to everything we do at ITAB, the employees are our principal
asset. We believe in taking meaningful action to be a responsible employer that
attracts, retains and develops talent. ITAB aims to offer a pleasant and attractive
workplace characterised by good working conditions, equal opportunities and
a safe and healthy environment.
ITAB’s Code of Conduct (“CoC”) lays down the fundamentals
for all employees to respect human rights in line with interna-
tional conventions. This includes a zero-tolerance policy for
forced labour, child labour and work carried out through the
use of coercion or threats of violence. Through our supply
chain, there were no reported cases of child or forced labour
in 2022. The CoC also places value on diversity amongst our
employees and we do not tolerate discrimination based on
gender, marital status, ethnicity or national origin, sexual
orientation, gender identity, religion, age or disability. During
2022 the ITAB CoC has been reviewed and revised and will
be rolled out through the organisation in 2023. The complete
CoC can be downloaded at itabgroup.com.
In the 2021 Sustainability Report ITAB committed to three
short-term targets and one long-term goal in the Good Wor-
king Conditions work. These goals were derived from our
own materiality assessment and a detailed examination of
our customers’ ESG reports and their goals.
EQUALITY AND DIVERSITY
ITAB is striving to achieve a better balance between men
and women, as this generates a pleasant working environ-
ment and a more dynamic workplace. ITAB is constantly
working to provide support to recruiting managers to en-
sure a professional process in line with local legislation as
well as support for the objective of guaranteeing diversity
among the candidates
On average through 2022, 27 percent of the workforce
was female, and women in senior management reached 23
percent, which was above the set target of 20 percent. A new
target for women in senior management has now been set
to further reflect our aim for continuous improvement.
HEALTH & SAFETY (“H&S”)
Within ITAB Group, each company is responsible for en-
suring a safe workplace that complies with local laws and
SUSTAINABILITY REPORT
regulations. In order to apply similar standards across the
Group, ITAB has developed a H&S Framework and has star-
ted deploying it locally. Employees are represented in inter-
nal bodies responsible for H&S.
During 2022, ITAB has developed the capability to report
a Total Frequency Rate (TFR) for accidents and a Lost Time
Severity Rate (LTSR). For 2022 the TFR was 14.06, and the LTSR
was 0.25. This reporting now allows ITAB to be benchmarked
against other organisations as these are standard H&S cal-
culations. During 2023, ITAB will continue its work of revie-
wing the safety procedures for those Group companies that
report a higher number of accidents. We continue towards
our target of zero accidents.
WELL-BEING
In 2022 ITAB committed to determining the baseline of well-
being through the organisation. Overall sick leave was 4.88
percent during the year, of which Blue Collar reported 6.69
percent and White Collar 2.48 percent. Over 2023 ITAB will
analyse the data and create a plan to improve these figures.
LONG-TERM GOAL 2023 ACTIVITY
Well-being Develop programme to support well-being People and Culture roadmap progression
Accidents Zero Lost Time accidents Safety Frame deployment
Risk assessment reviews
Women in Senior Management 40-60% Develop plans to reach new long-term goal
THE GROUP’S EMPLOYEES
The average number of employees in 2022 was 2,847.
Women 27%
Men 73%
30 years or younger 13%
31 to 50 years 60%
Over 50 years 27%
Employees
by gender
Employees
by age
26 ITAB
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ANNUAL REPORT 2022
BUSINESS ETHICS
Through ITAB’s Code of Conduct (“CoC”), all employees have a clear set of
regulations for areas such as business ethics. In 2022 the CoC has been reviewed
and revised. This was approved by the Board of Directors in December 2022 and
will be rolled out through the organisation in 2023. According to the CoC, ITAB
has a zero-tolerance policy regarding all forms of bribery and corruption.
Built on the strong foundation of the previous CoC which was
originally issued in the autumn of 2017, the new CoC expands
the principles contained within the previous version and lays
down details of the newly defined ITAB Whistleblowing Service.
The whistleblowing service is an important tool for reducing
risks and fostering high business ethics and thereby maintain-
ing customer and public confidence in our operations.
In the 2021 Sustainability Report ITAB committed to four
short-term targets and long-term goals in the Business
Ethics work. These goals were derived from our own mate-
riality assessment and a detailed examination of our custo-
mers' ESG reports and their goals.
CODE OF CONDUCT
ITAB committed to 95 percent of all employees signing the
CoC in 2022 and a goal of having 100 percent of all em-
ployees sign the CoC from 2023 onwards.
ITAB has achieved a rate of 98 percent in 2022, sur-
passing the target set. For 2023 there will be an extensive
roll out plan of the new version of the CoC, ensuring that
all employees, existing and new, sign the new version. The
complete CoC can be downloaded at itabgroup.com.
WHISTLEBLOWING
ITAB committed to updating the Whistleblowing policy and
process in 2022 and then from 2023 onwards will monitor
the whistleblowing process and look at the outcome of the
investigated incidents. Training will be given to all employ-
ees in a phased roll out through 2023.
LONG-TERM GOAL 2023 ACTIVITY
Code of Conduct CoC signed by 100% of all employees Roll out of new CoC to all employees
Whistleblowing Monitoring of the whistleblowing process and the reporting
of any identified and investigated whistleblowing incidents
Roll out of new process to all ITAB countries
in all languages
Audits of Suppliers in High-Risk
Countries
100% Suppliers under Category Management to be audited
by end 2024
Audit schedule for suppliers
Onsite auditing including ESG questions
Business Ethics training in High-Risk
Countries
Training for 100% of employees in the Group by 2025 Initiate and roll out training
AUDITS OF SUPPLIERS IN HIGH-RISK COUNTRIES
ITAB committed to 100 percent of suppliers in high-risk
coun tries being audited and between 2023 and 2025 all
suppliers in medium risk countries will be audited.
Early in the 2022 the definition of high, medium and low
risk countries was created using the rankings from Transpa-
rency.org.
During 2022 a very limited number of suppliers in high-risk
countries were contracted by ITAB. This was predominantly
for single time purchases often related to installations for our
customers in that country. The limited expenditure in these
regions meant that it was not practicable for onsite audits
to take place for these one-time purchases. ITAB has not
completed the short-term goal and has revised this goal to
100 percent Suppliers under Category Management to be
audited by the end of 2024.
BUSINESS ETHICS TRAINING IN HIGH-RISK COUNTRIES
ITAB committed to training 100 percent of employees in
high-risk countries in 2022 and Ethics training for all em-
ployees by 2025. The only high-risk country that is currently
operated in by ITAB Group is Argentina. At this time the goal
has not been met, however ITAB has conducted Anti-Bribery
and Corruption training for senior management across all
functions. Group management and Vice Presidents were
asked to take part in online training in 2022. All participants
passed the training.
SUSTAINABILITY REPORT
27ANNUAL REPORT 2022
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ITAB
EFFICIENCY IN THE VALUE CHAIN
Building on the strengths of 2021, this year’s focus on improving the efficiency in
the value chain for ITAB has been on the processes that build the foundation of
an agile and efficient supply chain.
The deployment of the Supplier Code of Conduct, and
Sustainable Procurement Policy, has been enhanced with
the development and implementation of Supplier Qualifi-
cation, Supplier Categorisation, and Invitation to Tender
Processes.
Within our own facilities, ITAB now has the capability to
accurately determine the stationary combustion emissions
and process emission allowing ITAB to be able to publish
the Scope 1 and 2 greenhouse gas emissions for the first
time. With this benchmark established ITAB can now start to
deliver against the goal of a 50 percent reduction by 2030.
In the 2021 Sustainability Report ITAB committed to four
short-term targets and three long-term goals in the Effi-
ciency in the Supply Chain work. These goals were derived
from our own materiality assessment and a detailed exami-
nation of our customers' ESG reports and their goals.
ONSITE AUDITS OF PARTNER SUPPLIERS
ITAB committed to auditing 75 percent of partner suppliers
in 2022.
The definition of a partner supplier was set early in 2022.
One of the criteria was the partner supplier needs to pro-
gress through the approved and preferred status and the
requirements of these. As such no partner suppliers have
been identified as of publication of this report.
SUPPLIER CODE OF CONDUCT (“SCOC”)
ITAB committed to having all partner and 80 percent of pre-
ferred suppliers signing the new SCoC and the longer-term
goal of having 100 percent of partner, preferred and appro-
ved suppliers signing the SCoC.
There are currently 79 suppliers on the category managed
lists. At present, 90 percent of the category managed supp-
liers have signed the 2021 version of SCoC.
ENERGY CONSUMPTION
For 2022 ITAB committed to creating a roadmap for achie-
ving green electricity and establishing monitoring in all lo-
cations. The goal within energy is to have 100 percent elec-
tricity generated from renewable sources by 2025.
Monitoring for all location was completed and a road-
map to achieve the goal by 2025 has been created.
For 2022 ITAB's electrical consumption amounted to
41,157 MWh, of which 46 percent was sustainably genera-
ted. This is an increase from 29 percent in 2021 and is a
forward progression towards the 2025 goal of 100 percent.
COEMISSIONS
For 2022 ITAB committed to monitoring scope 1 and 2 emis-
sions and to report the percentage of transport under ma-
nagement to allow us to capture CO information going for-
ward. The longer-term goals were a 50 percent reduction in
scope 1 and 2 and a reduction in scope 3 transport.
During 2022 ITAB's scope 1 emissions were 8,611 tonnes of
COe. Scope 2 emissions were 7,483 tonnes COe. Now that
we have established the baseline year for this activity, we
will build a roadmap that will allow us to achieve the com-
mitted 50 percent absolute reduction in GHG production by
2030.
In 2022 ITAB committed to monitoring the amount of
transport under management to allow us to start capturing
the CO from transports. At the end of 2022, 67 percent of all
transport was under management.
LONG-TERM GOAL 2023 ACTIVITY
Energy Consumption % renewable
Energy Consumption Absolute
100 % sustainable sourced electricity Progress roadmap to achieve 100 % renewable electricity
Emissions
Scope 1 GHG
Scope 2 GHG
Scope 3 GHG
50% reduction in scope 1 & 2 by 2030 1. Identify largest CO producers by factory and process.
2. Identify improvements
3. Implement improvements
Supplier Code of Conduct SCoC 2021 signed by all local and
category managed suppliers
Rollout plan though all local procurement functions
SUSTAINABILITY REPORT
28 ITAB
|
ANNUAL REPORT 2022
SUSTAINABILITY REPORT
SUSTAINABLE BUSINESS
DEVELOPMENT
Sustainable business development means that ITAB Group, with its solution and
product portfolio, is developing in-store solutions that support our customers in
delivering energy efficient and cost-saving products and solutions that contain
increasingly sustainable materials fulfilled with the minimal impact on the
environment.
LONG-TERM GOAL 2023 ACTIVITY
COe in design Sustainability in design COe quoted COe installed.
Working with our customers to achieve their carbon zero goals
Launch of the Sustainability Services into ITAB markets.
Certification of ITAB core retail technology products.
COe reduction in all core products that are certified at next
design iteration.
In the 2021 Sustainability Report ITAB committed to one
short-term target and long-term goal in the Sustainable Bu-
siness Development work. This goal was derived from our
own materiality assessment and a detailed examination of
our customers' ESG reports and their goals.
CARBON ASSESSMENTS
To support our customers in their long-term sustainable go-
als we committed in the short term to develop a Carbon
Dioxide equivalent (COe) assessment service for our custo-
mers, and in the long-term building sustainability into the
design by using this assessment to help our customers ac-
hieve their Carbon Zero goals.
CO reporting is becoming more and more important to our
customers and with that in mind ITAB has now partnered with
Design Conformity, who provides an independent quality and
sustainability design standard for retail display equipment
and are able to assess the COe of all the products we design
and supply to our customers. On the right is an example of a
carbon assessment (Circular Design Certificate).
This Circular Design Certificate shows not only the COe
but also the design circularity and electrical efficiency of
the product. These metrics combine to give an overall ef-
ficiency score.
In 2022 ITAB developed our Sustainability Services which
were launched at the EuroShop 2023 retail fair. ITAB has the
capability to not only complete the assessment shown but
a full range of services, such as engaging with the custo-
mer to help design the improvement roadmap in line with
their goals, design engagement to increase design circula-
rity and an informed material selection.
By assessing a store’s carbon efficiency, targets can be
established for phased improvements through iterations
of the equipment supplied to our customers. By identifying
what equipment can be reused and where new equipment
is required, we can design out the carbon impact to ensure
that ITAB and our customers can develop further towards a
circular economy and sustainable business development.
29ANNUAL REPORT 2022
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ITAB
SUSTAINABILITY REPORT
REPORT ON EU TAXONOMY OBJECTIVES
To meet the EU’s climate and energy targets for 2030 and reach the objectives
of the European Green Deal, the EU has created the EU Taxonomy. The aim is to
provide a tool to support in directing investments towards sustainable projects
and activities.
The taxonomy applies to listed and large public interest
companies with more than 500 employees. Companies
must report the share of revenue from taxonomy eligible
and aligned activities, and the share of operating and ca-
pital expenditures. As a listed company, ITAB started to re-
port the taxonomy related KPIs in 2021.
During 2022, ITAB has performed an analysis in several steps
to identify taxonomy-eligible and aligned economic activi-
ties. The result of the analysis is presented below. The included
business in 2022 comprises ITAB’s manufacturing of lighting
equipment for retailers (NACE code C27.40). The Group’s
manufacturing of other products and interiors is not eligible
under current technical screening criteria as defined in the
EU Taxonomy. All taxonomy-eligible revenue and expenditure
relate to the objective “climate change mitigation”.
Although the Group’s lighting manufacturing is eligible
under Taxonomy, in 2022 there are no aligned economic
activities. The reason is that the lights that ITAB manufactu-
res do not meet the requirements of light sources rated in
the highest two populated classes of energy efficiency or
controls with daylight and presence sensors.
SPECIFICATION OF DISCLOSURE
Net sales
When determining and allocating the taxonomy-eligible and
aligned net sales, operations and underlying products and ser-
vices were grouped according to economic activities. Thereaf-
ter assessments according to the delegated acts adopted pur-
suant to Article 10(3), Article 11(3), Article 12(2), Article 13(2),
Article 14(2), and Article 15(2), of Regulation (EU) 2020/852,
were made. ‘Taxonomy-non-eligible economic activity’ means
any economic activity that is not described in the delegated
acts adopted in accordance with the articles above.
Operating expenditure
Operating expenditure is defined as the proportion of ope-
rating expenditure related to assets or processes associa-
ted with economic activities that qualify as environmentally
sustainable. The denominator is direct non-capitalized costs
that relate to research and development, short-term leases,
maintenance and repair, and any other direct expenditures
relating to the day-today servicing of items of property plant
and equipment by the undertaking or third party to whom
activities are outsourced that are necessary to ensure the
continued and effective functioning of such assets.
Capital expenditure
Capital expenditure is defined as the proportion of capital
expenditure related to assets or processes associated with
economic activities that qualify as any of the following: 1)
related to assets or processes that are associated with taxo-
nomy-aligned economic activities; or 2) part of a plan appro-
ved by Group management to expand taxonomy-aligned
economic activities or to allow taxonomy-eligible economic
activities to become taxonomy-aligned within five years; or
3) related to the purchase of output from taxonomy-aligned
economic activities and individual measures enabling the
target activities to become low-carbon or to lead to green-
house gas reductions. Notably, activities listed in sections 7.3
to 7.6 of Annex I of the Climate Delegated Act, as well as oth-
er economic activities listed in the delegated acts referred to
in Articles 10(3), 11(3), 12(2), 13(2), 14(2), 15(2) of Regulation
(EU) 2020/852 and provided that such measures are imple-
mented and operational within 18 months.
Research and development costs accounted for in the
capital expenditure KPI has not been counted as operating
expenditure.
Proportion of economic activities
Total
(MSEK)
6,868
6,207
91
Net Sales
Operating
Expenditure
Capital
Expenditure
Eligible under
Taxonomy
11%
11%
9%
Not Eligible under
Taxonomy
89%
89%
91%
Aligned to
Taxonomy
0%
0%
<1%
30 ITAB
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ANNUAL REPORT 2022
SUSTAINABILITY REPORT
GLOBAL REPORTING INITIATIVE
(
GRI
)
ITAB presents its sustainability information with the support of Global Reporting
Initiatives’ (GRI) standards, core level. The Sustainability Report is prepared
annually as a section in the Annual Report. The sustainability information
presented has not been reviewed by an external party.
The information in this Sustainability Report is to provide
a comprehensive overview of ITAB’s work within the fram-
ework of social, financial and environmental sustainability.
The sustainability information in this report has been defi-
ned and delimited on the basis of an analysis of ITAB’s most
essential issues, and describes the impact both within and
outside of the organisation.
GRI’s fundamental principles for sustainability reporting
form the basis for the preparation of ITAB’s GRI report. This
includes consideration having been given in order to en-
sure good reporting quality and to delimit and define the
content of the report.
CONTACT PERSON, SUSTAINABILITY & GRI
Jim Murray
Head of Sustainability & Quality
jim.murray@itab.com
This is a translation of the original Auditor's Report in Swedish
THE AUDITOR’S REPORT ON THE STATUTORY SUSTAINABILITY REPORT
To the General Meeting of ITAB Shop Concept AB (publ), corporate reg. no. 556292-1089
ENGAGEMENT AND RESPONSIBILITY
The Board of Directors is responsible for that the statutory
Sustainability Report for 2022 on pages 21-31 has been
prepared in accordance with the Annual Accounts Act.
THE SCOPE OF THE AUDIT
Our examination of the statutory Sustainability Report
has been conducted in accordance with FAR’s audi-
ting standard RevR 12 Auditor’s report on the statutory
Sustainability Report. This means that our examination
of the statutory Sustainability Report is different and
substantially less in scope than an audit conducted in
accordance with International Standards on Auditing
and generally accepted auditing standards in Sweden.
We believe that the examination has provided us with
sufficient basis for our opinions.
OPINION
A statutory Sustainability Report has been prepared.
Jönköping, 29 March 2023
Ernst & Young AB
Joakim Falck
Authorised Public Accountant
31ANNUAL REPORT 2022
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ITAB
SUSTAINABILITY REPORT
GRI-INDEX
The index below refers to ITAB's Annual Report 2022 including
this Sustainability Report. The page references show where
mandatory standard information and selected indicators
based on the materiality analysis are reported in this report.
DISCLOSURE REFERENCE COMMENT/DEVIATION
GRI 2: General Disclosures 2021
2-1 Organizational details 21, 34, 43, 80
2-2 Entities included in the organization’s sustainability reporting 21, 80
2-3 Reporting period, frequency and contact point 30, 31
2-4 Restatements of information No restatements of information.
2-5 External assurance 23, 30
2-6 Activities, value chain and other business relationships 8-9, 14-15, 27
2-7 Employees 25, 70
2-19 Remuneration policies 37, 45, 71-72
2-20 Process to determine remuneration 37, 45
2-22 Statement on sustainable development strategy 10-11, 21
2-26 Mechanisms for seeking advice and raising concerns 26
2-27 Compliance with laws and regulations 23, 25
GRI 3: Material Topics 2021
3-1 Process to determine material topics 22-24
3-2 List of material topics 22-24
GRI 201: Economic Performance 2016
201-1 Direct economic value generated and distributed 24, 52-88
201-4 Financial assistance received from government 74
GRI 207: Tax 2019
207-1 Approach to tax 59
207-2 Tax governance, control, and risk management 41, 59
207-3 Stakeholder engagement and management of concerns related to tax 41, 59
GRI 302: Energy 2016
302-1 Energy consumption within the organization 27
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions 27
305-2 Energy indirect (Scope 2) GHG emissions 27
GRI 403: Occupational Health and Safety 2018
403-1 Occupational health and safety management system 25
403-2 Hazard identification, risk assessment, and incident investigation 25
403-4 Worker participation, consultation, and communication on occupational
health and safety
25
403-5 Worker training on occupational health and safety 25
GRI 408: Child Labor 2016
408-1 Operations and suppliers at significant risk for incidents of child labor 24, 25
GRI CONTENT INDEX
Statement of use: ITAB Shop Concept AB has reported the information cited in this GRI content index for
the period 1 January to 31 December 2022 with reference to the GRI Standards.
GRI used: GRI 1: Foundation 2021
32 ITAB
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ANNUAL REPORT 2022
ITAB SHARE
ITAB SHARE
ITAB’s Class B shares were registered on Nasdaq First North in 2004, and the
shares have been listed in the Mid Cap segment on Nasdaq Stockholm since
2008. In 2022, ITAB shares for approximately MSEK 176 were traded and the
share price decreased by 18 percent. On 31 December 2022, ITAB’s market
capitalisation totalled MSEK 2,399.
MARKET LISTING
ITAB’s ordinary shares were registered on Nasdaq First North
on 28 May 2004 and have been listed in the Nasdaq Stock-
holm Mid Cap segment since 2008. ITAB's shares are traded
under the ticker ITAB.
THE ITAB SHARE’S PERFORMANCE IN 2022
In 2022, the ITAB share price declined by 18 percent to a
final price paid of SEK 11.00 as of 31 December 2022. During
the same period, the OMX Stockholm PI declined by 25 per-
cent. The highest and lowest prices paid for the year were
SEK 16.00 (closing price on 7 February) and SEK 7.65 (closing
price on 29 September), respectively.
ITAB’s total market capitalisation at 31 December 2022
amounted to MSEK 2,399. During the year, approximately
15 million ITAB ordinary shares were traded at a total value
of MSEK 176. Calculated against the average number of
shares outstanding during the year, this corresponds to a
turnover rate of 7 percent. Calculated per trading day, an
average of approximately 60,000 ITAB shares were traded
per day at an average value of approximately MSEK 0.7.
SHARE CAPITAL
On 31 December 2022, the share capital amounted to
MSEK 93. The total number shares was 222,500,192, of which
218,100,192 were ordinary shares and 4,400,000 were Class
C shares. All ordinary shares entitle the holder to an equal
share of ITAB’s assets and earnings, and entitle holders to
one vote per share at general meetings of shareholders.
The Class C shares do not carry the right to any dividend
and entitle the holder to 1/10 of a vote each.
DIVIDENDS
ITAB’s dividend policy states that dividends over a longer pe-
riod are to follow the company’s results and correspond to at
least 30 percent of the company’s profit after tax. However,
dividends are to be adjusted to the company’s investment
requirements and any share repurchase program.
The Board of Directors proposes that a dividend of SEK
0.50 (-) per ordinary share be paid for the 2022 financial
year. Calculated based on the number of ordinary shares
outstanding at the end of the financial year, the proposed
dividend amounts to a total of MSEK 109.
OWNERSHIP STRUCTURE
On 31 December 2022, ITAB had 5,181 shareholders. Legal
entities, including equity funds, insurance companies and
pension funds, etc. in Sweden and abroad owned approx-
imately 80 percent of the total number of shares. Foreign ow-
nership accounted for approximately 28 percent of the total
number of shares. The largest shareholders at 31 December
2022 are presented in the table on page 33.
ITAB currently holds no ordinary shares and all 4,400,000
Class C shares in treasury.
FURTHER INFORMATION
ITAB’s website, itabgroup.com, is continuously updated with
information about price trends, changes in ownership, etc
Share prise, SEK
20
15
10
5
jan feb mar apr may jun jul aug sep oct nov dec
SHARE PERFORMANCE 2022
ITAB Share
OMX Stockholm PI
33ANNUAL REPORT 2022
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ITAB
ITAB SHARE
THE ITAB ORDINARY SHARE
1)
2022 2021 2020 2019 2018
Share price at year-end, SEK 11.0 0 13.42 11.75 10.84 9.66
Market capitalisation at year-end, MSEK 2,399 2,927 1,203 1,110 989
Dividend, SEK 0.50
3)
0.00 0.00 0.00 0.00
Payout ratio of net earnings 64%
3)
– – – –
Average number of shares outstanding before dilution, thousand 218,100 191,396 102,383 102,383 102,383
Average number of shares outstanding after dilution, thousand 219,558 191,396 102,383 102,383 102,383
Number of shares outstanding at year-end, thousand 218,100 218,100 102,383 102,383 102,383
Number of shareholders at year-end 5,181 5,308 4,341 4,369 4,351
Highest share price during the year, SEK 16.00 19.90 14.69 20.52 36.66
Lowest share price during the year, SEK 7.6 5 10.50 4.77 6.84 8.40
Dividend yield
2)
4.5%
3)
– – – –
Earnings per share, SEK 0.78 0.50 -0.21 1.17 0.88
Equity per share, SEK 13,81 12.17 15.69 17. 07 15.61
1)
All data refer to ITAB's ordinary shares listed on Nasdaq Stockholm.
2)
Dividend divided by share price at year-end.
3)
Pursuant to the Board of Directors' proposed dividend for the 2022 financial year.
LARGEST SHAREHOLDERS AT 31 DECEMBER 2022 Number of
Shareholder Ordinary shares Class C shares Shares (%) Votes (%)
Aeternum Capital AS 54,304,496 24.41 24.85
Pomona-gruppen AB 37,945,397 17.0 5 17.36
Petter Fägersten, with companies and family 24,720,262 11.11 11. 31
Anna Benjamin, with companies and family 14,208,693 6.39 6.50
Svolder AB 12,332,953 5.54 5.64
Stig-Olof Simonsson, with companies 10,392,410 4.67 4.76
Öhman Funds 5,846,510 2.63 2.68
Försäkringsaktiebolaget Avanza Pension 4,609,775 2.07 2.11
Kennert Persson 3,842,200 1.57 1.59
Third AP Fund 3,000,000 1.35 1.37
Other Shareholders – total 47,257,496 4,400,000
4)
23.21 21.83
Total 218,100,192 4,400,000 100.00 100.00
4)
All Class C shares are held in treasury by ITAB Shop Concept AB.
DISTRIBUTION OF SHARES AT 31 DECEMBER 2022
Number of
Shareholders
Number of Proportion of
Share holding Ordinary shares Class C shares Shares (%) Votes (%)
1-1,000 3,309 825,862 0,37 0,38
1,001-5,000 1,086 2,658,127 1.19 1.22
5,001-10,000 312 2,295,384 1.03 1.05
10,001- 50,000 340 7,881,6 58 3.54 3.61
50,001-100,000 54 3,875,024 1.74 1.77
100,001- 80 200,564,137 4,400,000
5)
92.13 91.97
Total 5,181 218,10 0,192 4,400,000 100.00 100.00
5)
All Class C shares are held in treasury by ITAB Shop Concept AB.
34 ITAB
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ANNUAL REPORT 2022
FINANCIAL INFORMATION
CONTENTS
ADMINISTRATION REPORT WITH
CORPORATE GOVERNANCE REPORT
35
Administration Report
42
Proposed Allocation of Profits
43
Corporate Governance Report
48
Board of Directors
49
Group Management
50
Financial review – Five years in summary
51
Comments on Five years in summary
THE GROUP
52
Income Statement
52
Statement of Other Comprehensive Income
53
Statement of Financial Position
54
Statement of Changes in Equity
54
Statement of Cash Flows
PARENT COMPANY
55
Income Statement
55
Statement of Other Comprehensive Income
56
Balance Sheet
57
Statement of Changes in Equity
57
Statement of Cash Flows
NOTES
58
Note 1 General information
58
Note 2 Accounting policies
63
Note 3 Important estimates and assessments
64
Note 4 Financial risk management
66
Note 5 Corporate acquisitions, divestments and discontinued
operations
69
Note 6 Revenue from contracts with customers
70
Note 7 Purchases and sales between Parent Company and
subsidiaries
70
Note 8 Personnel and senior executives
74
Note 9 Remuneration to auditors
74
Note 10 Depreciation, amortisation and impairment losses
74
Note 11 Costs divided by type of cost
75
Note 12 Other operating income and expenses
75
Note 13 Profit from participations in Group companies
75
Note 14 Financial income and expenses
75
Note 15 Year-end appropriations
76
Note 16 Tax
77
Note 17 Earnings per share
78
Note 18 Intangible assets
79
Note 19 Property, plant and equipment
80
Note 20 Participations in Group companies and associated
companies
81
Note 21 Financial assets and liabilities
83
Note 22 Leases
83
Note 23 Inventory
83
Note 24 Prepaid expenses and accrued income
84
Note 25 Equity
Parent Company: ITAB Shop Concept AB
Corp. reg. no.: 556292-1089
Domicile: Jönköping
Address: Box 9054, SE-550 09 Jönköping , Sweden
85
Note 26 Allocation of profits
85
Note 27 New share issue and offset issue
86
Note 28 Overdraft facilities
86
Note 29 Provisions for pensions
87
Note 30 Other provisions
87
Note 31 Accrued expenses and prepaid income
87
Note 32 Pledged assets
87
Note 33 Contingent liabilities
88
Note 34 Transactions with related parties
88
Note 35 Events after the balance sheet date
89
Reconciliation of Alternative Performance Measures
90
Definitions
91
The Board's Signatures
92 AUDITOR’S REPORT
94
Auditors
95
Annual General Meeting 2023
95
Financial information in 2023
95
Contact - Investor Relations
FINANCIAL INFORMATION
35ANNUAL REPORT 2022
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ITAB
FINANCIAL INFORMATION
36 ITAB
|
ANNUAL REPORT 2022
FINANCIAL INFORMATION
37ANNUAL REPORT 2022
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ITAB
FINANCIAL INFORMATION
38 ITAB
|
ANNUAL REPORT 2022
FINANCIAL INFORMATION
39ANNUAL REPORT 2022
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ITAB
FINANCIAL INFORMATION
40 ITAB
|
ANNUAL REPORT 2022
FINANCIAL INFORMATION
41ANNUAL REPORT 2022
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ITAB
FINANCIAL INFORMATION
42 ITAB
|
ANNUAL REPORT 2022
PROPOSED ALLOCATION OF PROFITS
PARENT COMPANY 2022
The following funds are at the disposal of the Annual General Meeting (SEK):
Share premium reserve 1,083,234,816
Profit brought forward 641,583,698
Net profit for the year -62,416,275
TOTAL 1,662,402,239
The Board of Directors and CEO propose that these funds be distributed as follows (SEK):
SEK 0.50 per ordinary share to be distributed to shareholders 109,050,096
To be carried forward 1,553,352,143
TOTAL 1,662,402,239
DIVIDEND 2022
The Board of Directors proposes to the Annual
General Meeting 2023 that a dividend of SEK
0.50 per ordinary share be paid for the 2022
financial year.
ITAB’s dividend policy states that dividends
over a longer period are to follow the compa-
ny’s results and correspond to at least 30 per-
cent of the company’s profit after tax. How-
ever, dividends will be adjusted to the
com pany's investment requirements and any
share repurchase programme.
FINANCIAL INFORMATION
43ANNUAL REPORT 2022
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ITAB
CORPORATE GOVERNANCE
REPORT 2022
SWEDISH CORPORATE GOVERNANCE CODE
AND ITAB'S CORPORATE GOVERNANCE REPORT
ITAB Shop Concept AB (publ) is a Swedish public,
registered limited liability company, whose overall
ambition is to create long-term value for sharehold-
ers and other stakeholders. ITAB's shares are listed
on Nasdaq Stockholm in the Mid Cap segment.
ITAB applies the Swedish Corporate Governance
Code (hereinafter referred to as the “Code”). The
Code is a component of self-regulation within the
Swedish business sector and is based on a “com-
ply or explain” principle. This means that a compa-
ny that applies the Code may deviate from individ-
ual rules if it is deemed to result in better corporate
governance, but must then explain the reasons for
each deviation reported.
This Corporate Governance Report for the 2022
financial year describes ITAB’s corporate gover-
nance, management and administration as well
as internal controls of financial reporting, and is
prepared in accordance with the Code’s recom-
mendations. The Corporate Governance Report
constitutes part of the formal annual report doc-
umentation and was reviewed by the company’s
auditors pursuant to Swedish Annual Accounts Act.
CORPORATE GOVERNANCE
SHAREHOLDERS
GENERAL MEETING
AUDIT COMMITTEE
GROUP STAFF UNITS
BOARD OF DIRECTORS
AUDITORS
CEO
GROUP MANAGEMENT
SUBSIDIARIES
NOMINATION COMMITTEE
REMUNERATION COMMITTEE
CORPORATE GOVERNANCE, DIVISION OF
RESPONSIBILITIES AND ARTICLES OF
ASSOCIATION
Good corporate governance involves ensur-
ing that companies are managed sustainably,
responsibly and as efficiently as possible for the
shareholders. Trust among legislators and in soci-
ety that companies are acting responsibly is cru-
cial to the freedom of companies to realise their
strategies in order to create value. Trust among
existing and potential investors that this is taking
place is decisive for their interest in investing in the
companies. In this way, the business sector’s free-
dom to develop and its supply of venture capital
and expertise are safeguarded.
The aim of corporate governance in Swedish
listed companies is to create a clear division of
roles and responsibilities between shareholders,
the Board of Directors, Board committees and
executive management, and it is regulated by a
combination of written rules and practices. At first
instance, ITAB is to apply the Swedish Companies
Act and the rules that apply in the regulated mar-
ket in which the company’s shares are listed for
trading (Nasdaq Stockholm) as well as best prac-
tices in the stock market. The disclosure require-
ments to which ITAB is subject are found in the Rule
Book for Issuers published by Nasdaq Stockholm,
and the Code is a component of this regulatory
framework. ITAB shall, at all times in the course of
its operations, abide by the provisions stipulated
in the company’s articles of association. The Arti-
cles of Association can be found in their entirety on
ITAB’s website, itabgroup.com.
Deviations from the Code
There are no deviations from the Code to report for
2022.
ITAB’S CORPORATE GOVERNANCE STRUCTURE
The Swedish Companies Act states that there
should be three decision-making bodies in the
company: the General Meeting of Shareholders,
the Board of Directors and the CEO. There must
also be an inspection body – an auditor that is
appointed by the Annual General Meeting. The
Act specifies the duties of each body and the
responsibility of the individuals included in the
company’s bodies.
Refer to pages 32-33 for information about the
ITAB share and ownership structure.
ANNUAL GENERAL MEETING (AGM)
The AGM is the highest decision-making body
through which shareholders exercise their influ-
ence over the company. The body is superior in
relation to the company’s Board of Directors and
CEO. According to the Articles of Association,
FINANCIAL INFORMATION
44 ITAB
|
ANNUAL REPORT 2022
notices to attend a general meeting shall be pub-
lished by means of an announcement in Post- och
Inrikes Tidningar (Official Swedish Gazette) and
on the company’s website. Information that noti-
fication has been issued must be announced in
Dagens Industri. The statutory AGM passes reso-
lutions on the adoption of annual accounts and
consolidated accounts, discharge the Board of
Directors and CEO from liability, appropriation
of profits for the past year, election of the Board
and, when required, auditors, and other matters
in accordance with the Swedish Companies Act
and the Articles of Association.
All shareholders registered in the shareholders’
register and who have given notice of attendance
may participate in the meeting and vote accord-
ing to the number of shares owned. Shareholders
who are unable to attend in person may exercise
their rights by proxy. The company does not apply
any special arrangements regarding the function
of the general meeting due to provisions in the Arti-
cles of Association or, insofar as is known to the
company, due to shareholder agreements.
Annual General Meeting 2022
ITAB’s AGM was held on Tuesday, 10 May 2022. 26
shareholders attended the AGM, together rep-
resenting approximately 153 million votes, corre-
sponding to approximately 70 percent of the total
number of shares and votes in the company.
The following main resolutions were passed:
• Discharge from liability for the Board of Direc-
tors and CEO for their administration in the 2021
financial year.
• Re-election of Board members Anna Benja-
min, Jan Frykhammar, Petter Fägersten, Anders
Moberg, Roberto Monti, Fredrik Rapp and
Vegard Søraunet.
• Anders Moberg was re-elected as Chairman.
• Revised instructions for the Nomination Commit-
tee were adopted.
• The registered auditing company Ernst & Young
AB was elected as auditors, with authorised
public accountant Joakim Falck as auditor in
charge.
• Fees to the Board of Directors and auditors, and
Remuneration Report for 2021 were adopted.
• Authorisation to the Board to decide on the pur-
chase and conveyance of own shares.
• Authorisation of the Board to decide on new
issues of shares up to a maximum of 10 percent
of the company’s outstanding shares.
• A new long-term incentive program for senior
executives in the Group was established.
ANNUAL GENERAL MEETING 2023
ITAB’s AGM will be held on Wednesday, 10 May
2023 in Jönköping, Sweden. Further information
can be found on page 95.
NOMINATION COMMITTEE
In accordance with Code, ITAB shall have a Nom-
ination Committee. The Nomination Committee
is the general meeting’s body for proposals to
the meeting’s decisions regarding appointment
issues in order to provide good conditions for the
meeting's decisions on these issues.
At the 2022 AGM, revised instructions for the
Nomination Committee were adopted. In accor-
dance with these instructions, the Chairman of the
Board is tasked with contacting the largest share-
holders and requesting that they appoint three
members to form the Nomination Committee.
The selection of shareholders to contact is to be
based on the share register maintained by Euro-
clear Sweden as of 31 August each year. Unless
otherwise agreed by the members, the Chairman
of the Nomination Committee is to be the member
appointed by the largest shareholder. The com-
position of the Nomination Committee is to be
announced not later than six months prior to the
Annual General Meeting. The instructions apply
until further notice.
In accordance with this, the largest sharehold-
ers Aeternum Capital AS, Pomona-gruppen AB
and Övre Kullen AB each appointed one member
of the Nomination Committee ahead of the 2023
AGM. This Nomination Committee comprises Åsa
Otterlund (appointed by Aeternum Capital AS), Ulf
Hedlundh (appointed by Pomona-gruppen) and
Petter Fägersten (appointed by Övre Kullen) with
Åsa Otterlund as Chairman. The members of the
Nomination Committee were appointed for the
period up to and including the 2023 AGM. In the
event that a member steps down from the Nomi-
nation Committee before its work is completed,
the remaining members are tasked with appoint-
ing a new member.
Ahead of the AGM 2023, the Nomination Com-
mittee is assigned with preparing and present-
ing proposals for the Chairman of the Meeting,
Board members and the Chairman of the Board,
fees to members of the Board and committees,
and where applicable, the election of and fees to
auditors. The Nomination Committee shall in oth-
er respects fulfil its tasks in accordance with the
Code. In its assessment of the Board’s evaluation
and in its proposals, the Nomination Committee
shall pay particular attention to the requirement
for diversity and breadth in the Board and strive
for an even gender distribution in accordance
with the diversity policy according to rule 4.1 in the
Code. The Nomination Committee’s proposals
shall be included in the notice to attend the 2023
AGM. In conjunction with the Board issuing the
notice to attend the AGM, the Nomination Com-
mittee shall ensure that the company publishes
the Nomination Committee’s proposals and rea-
soned statement as well as information about how
the Nomination Committee has conducted its
work on ITAB’s website, itabgroup.com.
No fees are paid for the Nomination Committee
assignment.
Ahead of the 2023 AGM, the Nomination Com-
mittee has evaluated relevant aspects of Board’s
work and, to date, has held seven minuted meet-
ings with all members present, and had several
other contacts.
BOARD OF DIRECTORS
The tasks of the Board of Directors are to manage
the company’s affairs on behalf of the sharehold-
ers. According to ITAB’s Articles of Association, the
Board of Directors must comprise at least three
and at most nine Board members with no more
than nine deputies.
Board members
At the end of 2022, the Board of Directors of
ITAB Shop Concept AB consisted of seven reg-
ular members appointed by the AGM on 10
May 2022: Anders Moberg (Chairman), Anna
Benjamin, Jan Frykhammar, Petter Fäger-
sten, Roberto Monti, Fredrik Rapp and Vegard
Søraunet. A presentation of these Board members,
including information about their other assign-
ments, is presented on page 48 as well as on ITAB’s
website, itabgroup.com. The CEO and other offi-
cers of the Group participate in Board meetings,
acting as rapporteur or in administrative functions.
All of the Board members are independent in
relation to the company and its senior executives.
Four of the Board members are independent in
relation to the major shareholders. The Board
thereby fulfils the requirements for independence
pursuant to regulatory frameworks. The Articles of
Association do not contain any special conditions
for appointment and dismissal of Board members
or change of the Articles of Association.
In accordance with the AGM’s resolution in
May 2022, Directors’ fees totalled SEK 2,000,000,
of which SEK500,000 was paid to the Chairman
of the Board and SEK250,000 to each of the other
Board members.
Refer also to page 45 for a summary of the Board
members and their committee membership(s),
attendance at Board meetings, independence
and Board fees.
Chairman of the Board
The Chairman of the Board is tasked with ensur-
ing that the Board’s work is well organised and
efficiently conducted, and that the Board fulfils its
assignments. The Chairman shall, in particular,
organise and lead the Board’s work to create the
best possible conditions for the Board’s work. The
Chairman is tasked with ensuring that a new Board
member participates in requisite introductions
and other training that the Board’s Chairman and
the Board member deem to be appropriate, that
the Board continuously updates and deepens its
knowledge of the company, that Board meetings
are held when required and that satisfactory infor-
mation and supporting material for decisions is
obtained for its work, that the proposed agendas
for Board meetings are adopted in consultation
with the CEO, that the Board’s resolutions are
implemented, and that the Board’s work is eval-
uated annually. The Chairman is responsible for
contacts with shareholders regarding shareholder
issues and for conveying the views of shareholders
to the Board.
Board duties
The Board of Directors has ultimate responsibility
for the company’s organisation and the adminis-
tration of the company’s affairs in the interests of
the company and all shareholders, pursuant to
the laws, ordinances and agreements that the
company is subject to. The Board shall also, based
on an analysis of the business environment, pass
resolutions on strategic issues.
The Board annually adopts written rules of pro-
cedures that regulate the Board’s work and its divi-
sion of responsibilities, including its committees,
decision-making bodies within the Board, the
Board’s meeting plan, and the Chairman’s tasks,
as well as instructions for the financial reporting.
The Board has also issued instructions to the CEO,
which includes decision authority for investments,
FINANCIAL INFORMATION
45ANNUAL REPORT 2022
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ITAB
THE BOARD OF DIRECTORS’ AND COMMITTEES’ COMPOSITION,
INDEPENDENCE, ATTENDANCE AND FEES – 2022
Committee Independent in relation to
1)
Participation in
Name Assignment
Remunera-
tion Audit
Company
and execu-
tive manage-
ment
Major
shareholders
Board
meetings
(total number)
Remuneration
Committee
(total
number)
Audit
Committee
(total
number)
Directors’ fees
incl. committee
fees (SEK)
Anders Moberg Chairman Chairman – Yes Yes 16 (16) 1 (1) – 540,000
Anna Benjamin Board member – Member Yes Yes 16 (16) – 6 (7) 280,000
Jan Frykhammar Board member – Chairman Yes Yes 16 (16) – 7 (7) 325,000
Petter Fägersten Board member – – Yes No 16 (16) – – 250,000
Roberto Monti Board member – Member Yes Yes 15 (16) – 6 (7) 280,000
Fredrik Rapp Board member Member – Yes No 16 (16) 1 (1) – 280,000
Vegard Søraunet Board member Member – Yes No 16 (16) 1 (1) – 280,000
1)
In accordance with the definitions of the Swedish Corporate Governance Code.
corporate acquisitions and divestments as well as
financing matters. The Board has also adopted
a number of policies for the Group’s operations,
such as a Code of Conduct.
The Board monitors the CEO’s work by continu-
ously following up operations during the year and
is responsible for ensuring that the organisation,
management and guidelines for the administra-
tion of the company’s affairs are appropriately
structured and that company has good internal
controls and efficient systems for the follow-up and
control of the company’s operations and com-
pliance with laws and regulations that are appli-
cable to the company’s operations. The compa-
ny’s auditor attends at least one of the Board’s
meetings annually. On such occasions, the audi-
tor’s observations concerning the company’s
accounts, procedures and internal control are
reported and reviewed.
The Board is also responsible for the determina-
tion, development and follow-up of the compa-
ny’s goals and strategy, decisions about acqui-
sitions and divestments of businesses, major
investments, repurchases of own shares as well
as the appointment and remuneration of execu-
tive management. The Board of Directors and CEO
submit the annual accounts to the AGM.
Furthermore, the Board is responsible for prepar-
ing an annual Corporate Governance Report that
shall include the Board of Directors’ actions to fol-
low up on internal controls related to the financial
reporting and on how reporting to the Board has
worked. The Corporate Governance Report shall be
reviewed by the company’s auditor. In connection
with this, the Board shall annually assess and decide
whether the company should have a special review
function (internal audit). This decision shall be justi-
fied in the Corporate Governance Report.
The Board conducts an annual evaluation of its
work, whereby a questionnaire is sent out to all its
Directors. The results are compiled by the Chair-
man of the Nomination Committee, who then pro-
vides feedback to each Board member. The Board
continuously evaluates the CEO’s work.
Each Board member shall independently assess
the matters that are to be addressed by the Board
and request the information that the Board mem-
ber deems necessary for the Board to make a
well-informed decision. Each Board member shall
continuously acquire knowledge of the compa-
ny’s operations, organisation, markets and similar
information required for their assignment.
The Board’s work
The Board’s work follows an annual plan. In addi-
tion to the statutory meeting held in connection
with the AGM, the Board normally meets seven
times a year (regular meetings). Extraordinary
meetings are convened as needed. Every meet-
ing follows an agenda that is provided together
with other underlying documentation to Board
members prior to each Board meeting. Board
resolutions are passed following a discussion led
by the Chairman. Committees appointed by the
Board are tasked with preparing matters for reso-
lution by the Board (see below).
The agenda of the statutory Board meeting
includes adoption the Board’s rules of procedures,
decisions about company signatories and the
approval of minutes. The regular meeting held in
February addresses the annual accounts, pro-
posals on the appropriation of profits and the
Year-End Report. In conjunction with this, the com-
pany’s auditors submit a report to the Audit Com-
mittee with their findings and assessments of the
conducted audit. Every regular meeting generally
includes several other fixed items for presentation,
such as a report on the current financial outcome
of the operations.
The Board held seven regular meetings, of which
one was a statutory meeting, and nine extraordi-
nary Board meetings in 2022. The attendance at
Board meetings and committee meetings is pre-
sented in the summary below. Essential subjects
that have been discussed during the year include:
• Long-term goals for the operations, including
new financial targets for the Group
• Strategic direction for the operations
• Business plans, financial plans and forecasts
• Acquisition of Oy Checkmark Ltd
• Discontinuation of the Group’s operations in
Russia
• Investments
• Long-term financing
• Policies and guidelines
• Risk management and internal control
• Interim reports and Annual Report
• Reports from the Board’s committees
• Sustainability work
• External audit follow-up
Audit Committee
The Board of Directors has appointed an Audit
Committee that, without impacting the Board’s
responsibilities and assignments in general, is to
prepare the Board's work of quality-assuring the
company’s financial reporting, continually meet
with the company’s auditors to obtain information
about the focus and scope of the audit as well as
discuss coordination between the external audit
and the internal control and views of the compa-
ny’s risks. The Audit Committee is also responsible
for establishing guidelines regarding which ser-
vices other than audits the company may procure
from the company’s auditors, evaluate the audit
work and notify the company’s Nomination Com-
mittee about the results of the evaluation as well
as assist the Nomination Committee in preparing
proposals for the election of auditors and the pay-
ment of fees for the audit work.
ITAB’s Audit Committee comprises Jan Frykham-
mar (Chairman of the Committee), Anna Benja-
min and Roberto Monti. All members of the com-
mittee are independent of the company and its
executive management as well as the company’s
major shareholders. Jan Frykhammar has financial
reporting qualifications. The company thus fulfils the
requirements of the Swedish Companies Act.
In 2022, the Audit Committee held seven minut-
ed meetings, and maintained ongoing contact
with the company’s auditors. The Audit Commit-
tee also had a number of contacts with Group
management. In 2022, fees for the Audit Commit-
tee’s work comprised SEK75,000 to the Chairman
and SEK30,000 to each other member.
Remuneration Committee
The Remuneration Committee’s primary tasks are
preparing the Board’s decisions on issues regard-
ing remuneration principles, remuneration and
other terms of employment for executive man-
agement, monitoring and evaluating ongoing
schemes and schemes concluded during the
year regarding variable remuneration to exec-
utive management, as well as monitoring and
evaluating the application of the guidelines for
remuneration to senior executives decided by the
AGM and current remuneration structures and
remuneration levels in the company. ITAB’s Remu-
neration Committee has also been tasked with
preparing issues regarding remuneration and oth-
FINANCIAL INFORMATION
46 ITAB
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ANNUAL REPORT 2022
er employment terms for the managing directors
of other companies in the Group.
The tasks of the Remuneration Committee
include preparing the Board’s decisions on pro-
posals for guidelines for remuneration of senior
executives, and drafting the Board of Directors’
annual remuneration report on the application
of the company’s remuneration guidelines for
approval at the AGM. The Board shall prepare
proposals for new guidelines at least every four
years, or before that if there is a need for significant
adjustments, and present the proposal for resolu-
tion at the AGM. The guidelines shall apply until
new guidelines have been adopted by an AGM.
The current guidelines were adopted by the 2021
AGM (see Note 8). The Board does not intend to
propose any adjustments to these guidelines prior
to the 2023 AGM. The 2021 Remuneration Report
adopted by the 2022 AGM is available on ITAB’s
website, itabgroup.com.
ITAB’s Remuneration Committee comprises
Anders Moberg (Chairman of the Committee),
Fredrik Rapp and Vegard Søraunet The CEO is
co-opted at committee meetings.
In 2022, the Remuneration Committee held one
minuted meeting. During the year, fees for the
Remuneration Committee’s work comprised SEK
40,000 to the Chairman and SEK30,000 to each
other member.
CEO AND GROUP MANAGEMENT
The CEO is appointed by the Board to be respon-
sible for the company’s day-to-day management
in line with the Swedish Companies Act and within
the framework established by the Board. The CEO’s
decision authority with respect to investments,
company acquisitions and divestments as well
as financing issues is subject to rules adopted by
the Board. In consultation with Chairman of the
Board, the CEO prepares the requisite information
and supporting material for decisions in advance
of Board meetings, presents agenda items and
motivate proposed resolutions. The current CEO,
Andréas Elgaard, took up his position in Septem-
ber 2019.
The CEO leads the work of Group manage-
ment and makes decisions in consultation with
other members of senior management. ITAB’s
Group management comprises President & CEO
Andréas Elgaard, Chief Financial Officer Ulrika
Bergmo Sköld, Senior Vice President – MBU Nor-
dic Jan Andersson, Chief Operating Officer Jes-
per Blomquist, Senior Vice President – MBU South
Europe Andrea Ciotti, Senior Vice President – MBU
UK & Baltics Roy French, Chief Commercial Offi-
cer Nick Hughes, General Counsel Frida Karlsson,
Senior Vice President - People & Culture Pernilla
Lorentzon, and Senior Vice President – MBU Central
Europe Klaus Schmid.
A more detailed presentation of the CEO and
Group management can be found on page 49.
Remuneration of the CEO and Group manage-
ment in the 2022 financial year is presented in Note
8 on pages 70-73.
Group staff units
Group staff units that report directly to Group
management have responsibility for business
development, finance, insurance, HR, purchasing,
IT, information, marketing, production, develop-
ment, investor relations, legal affairs, communica-
tions, consolidation of accounts and Group-wide
administration. Projects that cover all or the major-
ity of the Group’s companies are controlled and
coordinated from here. Within each area, hand-
books and policies are drawn up that regulate the
work in the subsidiaries.
AUDITORS
To examine the company’s annual accounts, con-
solidated accounts and accounting records as
well as the administration of the Board of Directors
and CEO, a registered auditing company or one
or two authorised public accountants shall be
appointed by the AGM according to the Articles of
Association. The auditors report to the sharehold-
ers at the AGM via their Auditor's Report.
The election of auditors in ITAB took place at the
2022 AGM and pertained to the term up to and
including the 2023 AGM. The company’s auditor
is the registered auditing company Ernst & Young
AB, with authorised public accountant Joakim
Falck as auditor in charge. Joakim Falck has been
the auditor for ITAB since 2018. His other audit
assignments include Nolato AB, Absolent Group
AB, Garo AB, Hexpol AB, Nefab AB, One Partner
Group AB and Gyllensvaans Möbler AB.
The company’s auditor works in accordance
with an audit plan that incorporates the views
of the Board and its Audit Committee. The audi-
tor then reports his/her observations to execu-
tive management teams, Group management
and ITAB’s Board and its Audit Committee during
the course of the audit and in conjunction with
the adoption of the annual accounts. The com-
pany’s auditor also participates at the AGM and
describes and expresses his opinion about the
audit work. The independence of the external
auditor is regulated by special instructions adopt-
ed by the Board, which stipulate the areas in which
the external auditor may be engaged on matters
beyond regular audit work. Ernst & Young contin-
uously tests its independence in relation to the
company and submits a written affirmation to the
Board every year, stating that the auditing firm is
independent from ITAB.
In 2022, a total of MSEK 1 (2) was paid in fees for
Ernst & Young’s services in addition to the audit
assignment.
ETHICAL GUIDELINES
ITAB strives to ensure that its business operations
adhere to stringent demands on integrity and
ethics. The Board has adopted a so-called Code
of Conduct for Group operations, which also
includes ethical guidelines. The Code of Con-
duct emphasises the importance of each and
every employee, that the Group is to offer a safe
and healthy work environment, and that ITAB
works continuously to reduce its environmen-
tal impact. It also points out that ITAB stands for
straightforward, honest communication and that
all employees have to respect commercial con-
fidentiality. If an issue relating to business ethics
arises at company level, there is a system in place
detailing how employees should report directly to
the Group and how such issues will be handled. In
accordance with the Code of Conduct, ITAB has
a zero-tolerance policy regarding all forms of brib-
ery and corruption.
ITAB regularly reviews and evaluates internal controls
in all subsidiaries, which provides reasonable assur-
ance of an appropriate and effective operation, reli-
able financial reporting and compliance with laws
and ordinances. The internal audit also includes a
follow-up of the sustainability programme and the
Code of Conduct. The managing director of each
individual company within the ITAB Group is respon-
sible for ensuring compliance with local regulations.
All of ITAB’s employees are covered by the Group-
wide Code of Conduct and have signed to confirm
that they are complying with this code.
No known cases of corruption were discovered
in the Group in 2022. ITAB has also conducted
separate reviews and training regarding anti-cor-
ruption, primarily in countries where the Group is
deemed to face the greatest risks of violations of
the ethical guidelines. Since the end of 2017, there
is also a separate Group-wide supplier policy con-
taining fundamental business ethics requirements
that ITAB imposes on its suppliers. In order to ensure
that ITAB is complying with GDPR, training has
been conducted for employees who process per-
sonal data as part of their work.
INTERNAL CONTROLS FOR THE FINANCIAL
REPORTING
According to the Swedish Companies Act and
the Code, the Board is responsible for internal
controls aimed at protecting the company’s
assets and thereby the investments of its owners.
This responsibility includes annually assessing the
financial reporting that the Board receives and
setting requirements for its content and presen-
tation to ensure the quality of the reporting. This
requirement entails that financial reporting must
be appropriate, applying the relevant accounting
rules and other requirements for listed companies.
The following description is limited to ITAB’s internal
controls of the financial reporting.
The internal controls should provide reasonable
assurance of an appropriate and effective opera-
tion, reliable financial reporting, and compliance
with laws and ordinances. The basis for the internal
control of financial reporting is the control environ-
ment, including the organisation, decision-mak-
ing paths, authorisations and responsibilities that
are documented and communicated in the gov-
erning documents below. ITAB’s tool for internal
control is based on the COSO framework – a frame-
work for evaluating a company’s internal controls
of financial reporting. The framework streamlines
the work with internal controls.
The risk map has been analysed during the year,
which forms the basis for a revised internal audit pro-
gramme. In addition to the business risks, the inter-
nal controls have focused on formalities, proce-
dures and processes linked to the updated risk map.
Financial reporting
All subsidiaries submit monthly reports concern-
ing financial outcomes, in accordance with the
Group’s internal finance manual. The reporting is
consolidated and constitutes the basis for quarter-
ly reports and operational follow-ups.
This operational follow-up is carried out in accor-
dance with an established structure where invoic-
ing, liquidity, profit, tied-up capital and other key
figures of importance for the Group are collated
and form the basis for analysis and measures by
FINANCIAL INFORMATION
47ANNUAL REPORT 2022
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ITAB
management and controllers at various levels.
Other important, Group-wide aspects of the inter-
nal control include business plans and the annual
forecast process.
For communication with external parties, the
Group has an information policy intended to
ensure that all disclosure requirements are com-
plied with correctly and in full.
Control environment
The Audit Committee’s primary task is to monitor
the accounting and reporting processes and to
ensure the quality of these reports and processes.
The responsibility for maintaining an effective con-
trol environment, day-to-day risk management
and internal controls in terms of financial reporting
has been delegated to the CEO. Executives at var-
ious levels of the company are in turn responsible
within their respective areas. Responsibilities and
authorisations are defined in instructions to the
CEO, instructions concerning attestation rights,
manuals, and other policies and procedures.
The Board determines the Group’s policies regard-
ing information, credit and finance. Group manage-
ment determines other instructions, and the respon-
sible Group functions issue guidelines and oversee
the application of the regulatory framework. The
Group’s accounting and reporting rules are stipu-
lated in an accounting handbook that is available
to all accounting staff. Together with laws and other
external regulatory frameworks, the organisational
structure and internal regulatory frameworks consti-
tute the control environment.
Risk assessment
ITAB works continually with risk analyses as a basis for
revisions of the Group’s mapping of risks. Financial,
operational and strategic risks are charted. The Audit
Committee reviews the current risk map when nec-
essary and at least once a year, as well as ongoing
and planned activities linked to the respective risk,
and revisions are undertaken if necessary.
Control activities
The purpose of control activities is to identify, pre-
vent and correct errors and deviations. Policies
and guidelines are particularly important for
accurate accounting, reporting and information
dissemination and also define which control activ-
ities should be conducted. ITAB regularly updates
its policies and guidelines, in writing and at meet-
ings. Control activities include approval proce-
dures, reconciliation of accounts, analytical fol-
low-up and control of IT systems.
Follow-up
Group management and controllers regularly fol-
low up economic and financial reporting as well as
key business events. At each Board meeting, finan-
cial performance is monitored against forecasts,
and reviews are conducted of how well invest-
ments are proceeding according to plan. The fol-
low-up of results is an important complement to the
controls and reconciliations implemented in the
financial processes themselves. The Audit Com-
mittee regularly evaluates the internal control, the
Code and significant accounting issues.
Opinion on internal audit function
The Board has opted not to have a special func-
tion for internal audits. The assessment is based on
the Group’s size and operations as well as existing
internal control processes where the work with
internal controls is conducted in an internal audit
programme that covers all subsidiaries accord-
ing to an established plan. If necessary, external
advisers are used for internal control projects on
behalf of the Audit Committee. Parts of the internal
control are regularly examined by the auditors.
VIOLATIONS
The company has not committed any violations
of the regulatory framework of the stock mar-
ket where the company’s shares are traded nor
breached any stock market best practices.
FINANCIAL INFORMATION
48 ITAB
|
ANNUAL REPORT 2022
FINANCIAL INFORMATION
49ANNUAL REPORT 2022
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ITAB
FINANCIAL INFORMATION
50 ITAB | ANNUAL REPORT 2022
FINANCIAL REVIEW – FIVE YEARS IN SUMMARY
Excluding
effect of IFRS 16
Income statements (MSEK) 2022 2021 2020 2019 2019 2018
Revenue from contracts with customers 6,868 6,087 5,323 6,064 6,064 6,031
Cost of goods sold -5,286 -4,727 - 4,137 -4,725 -4,729 -4,683
GROSS PROFIT
1)
1,582 1,360 1,339 1,339 1,335 1,348
Selling expenses -871 -796 -784 -899 -903 -880
Administrative expenses -344 -331 -285 -286 -287 -294
Other operating income and expenses 36 -17 -5 103 103 56
OPERATING PROFIT
1)
403 216 112 257 248 230
Financial items -55 -69 -112 -83 -68 -73
PROFIT AFTER FINANCIAL ITEMS
1)
348 147 0 174 180 157
Tax on net profit for the year -105 -52 -22 -54 -55 -60
NET PROFIT FOR THE YEAR – CONTINUING OPERATIONS 243 95 -22 120 125 97
Profit from Discontinued Operations, net after tax -53 8 – – – –
NET PROFIT FOR THE YEAR 190 103 -22 120 125 97
Attributable to:
Parent Company shareholders 170 95 -21 120 125 90
Non-controlling interests 20 8 -1 0 0 7
Balance sheets (MSEK)
Assets
Intangible assets 1,897 1,756 1,743 1,837 1,837 1,807
Property, plant and equipment 1,408 1,366 1,367 1,606 860 939
Other non-current receivables 153 146 119 130 128 109
NON-CURRENT ASSETS 3,458 3,268 3,229 3,573 2,825 2,855
Inventories 1,030 1,176 698 926 926 1,019
Current receivables 1,244 1,372 900 1,095 1,095 1,219
Cash and cash equivalents 756 208 692 302 302 271
CURRENT ASSETS 3,030 2,756 2,290 2,323 2,323 2,509
Assets held for sale 88 – – – – –
TOTAL ASSETS 6,576 6,024 5,519 5,896 5,148 5,364
Equity and liabilities
Equity 3,169 2,782 1,725 1,876 1,882 1,726
Deferred tax liabilities 44 45 41 48 48 54
Other non-current liabilities 1,624 1,143 1,283 1,989 1,356 1,712
Other current liabilities 1,720 2,054 2,470 1,983 1,862 1,872
Liabilities attributable to assets held for sale 19 – – – – –
TOTAL EQUITY AND LIABILITIES 6,576 6,024 5,519 5,896 5,148 5,364
Cash flow (MSEK)
Cash flow before change in working capital 527 424 417 285 160 163
Change in working capital 15 -589 394 193 193 337
CASH FLOW FROM OPERATING ACTIVITIES 542 -165 811 478 353 500
Cash flow from investing activities -150 -103 -45 34 34 -242
CASH FLOW AFTER INVESTING ACTIVITIES 392 -268 766 512 387 258
Cash flow from financing activities 153 -253 -343 -489 -364 -280
CASH FLOW FOR THE YEAR 545 -521 423 23 23 -22
Key ratios
EBITDA, MSEK 674 487 376 532 391 372
EBITDA margin, % 9.8 8.0 7.1 8.8 6.4 6.2
EBIT margin, % 5.9 3.6 2.1 4.2 4.1 3.8
Profit margin, % 5.1 2.4 0.0 2.9 3.0 2.6
Interest-coverage ratio, multiple 6.0 2.8 1.0 2.9 3.4 3.0
Equity attributable to Parent Company shareholders, MSEK 3,012 2,654 1,607 1,748 1,754 1,598
Interest-bearing net debt, MSEK 1,080 1,239 1,748 2,509 1,755 2,104
Interest-bearing net debt excl. leases, MSEK 399 609 1,092 1,746 1,746 2,095
Equity/assets ratio, % 48 46 31 32 37 32
Cash conversion, % 80 N/A 215 90 90 134
Return on equity, % 6.0 4.0 Neg 6.9 7. 2 5.4
Return on capital employed, % 8.9 5.4 2.5 5.4 6.2 5.5
Return on total capital, % 6.8 3.9 2.0 4.3 4.7 4.1
Depreciation and amortisation, MSEK 271 271 264 275 143 142
Net investments, MSEK 150 103 45 -34 -34 242
- of which, attributable to corporate acquisitions & divestments, MSEK 66 40 0 -27 -27 142
Average number of employees 2,847 2,930 3,030 3,247 3,247 3,384
1)
For more information about non-recurring items, see the tables on page 51.
As of 2022, ITAB’s Russian subsidiary ITAB Rus JSC is recognised as Discontinued Operations in accordance with IFRS 5. Comparative figures in the consolidated income statement have
been restated for 2021. In 2022, a new interpretation was made with respect to the recognition of outward shipping, which is now recognised under “Cost of goods sold” instead of “Selling
expenses”. All reported years have been adjusted. Data for 2019 has been prepared in accordance with the new standard for leases, IFRS 16. Comparative years have not been restated.
For comparison, 2019 is also reported excluding the implementation of IFRS 16. For definitions, see page 90.
FINANCIAL INFORMATION
51ANNUAL REPORT 2022 | ITAB
COMMENTS ON FIVE YEARS IN SUMMARY
SALES
Over the past five years, ITAB’s net sales have
increased by an average of approximately 2
percent per year. The acquisitions of Cefla Retail
Solutions in 2021 and Checkmark in 2022 contrib-
uted positively to this increase in sales, while the
COVID-19 pandemic had a negative impact on
sales in 2020 and 2021.
During the five-year period, ITAB has signed
numerous long-term agreements with leading
retail chains in Europe. These have laid the foun-
dation for ITAB’s position as the market-leading
supplier of checkouts to retailers and one of the
largest suppliers of shop fittings and lighting sys-
tems in Europe.
In 2018, sales decreased by MSEK 350, corre-
sponding to -5 percent. Currency-adjusted sales
fell by 8 percent. The majority of the reduction
in sales is attributable to the UK and Southern
Europe. Northern Europe and the Rest of the World
also decreased, while Central Europe and Eastern
Europe recorded increased sales. In terms of cus-
tomer groups, the majority of the reduction in sales
took place in Fashion. Grocery sales also fell slight-
ly, while sales in Home Improvements increased.
In 2019, sales grew by MSEK 33, corresponding to
+1 percent. Currency-adjusted sales fell by 1 per-
cent. Sales increased slightly in Southern Europe,
Eastern Europe and the UK, while Northern Europe
declined. Sales to the largest customer group,
Grocery, increased, while Fashion and Home
Improvements decreased.
In 2020, sales decreased by MSEK 741, corre-
sponding to -12 percent. Currency-adjusted sales
fell by 10 percent. A substantial part of the reduc-
tion was caused by the strict measures taken to
reduce the spread of COVID-19, especially during
the first six months of the year. Sales recovered
somewhat during the second half of the year due
to, among other things, increased sales of various
protective products for stores. Sales decreased in
all geographic markets except Central Europe.
Grocery sales increased, while sales to Other cus-
tomer groups decreased.
In 2021, sales grew by MSEK 764 (restated tak-
ing into account the recognition of the Group’s
subsidiary in Russia as Discontinued Operations),
corresponding to +14 percent. Currency-adjust-
ed sales increased by 19 percent, with organic
growth accounting for 8 percent and the acqui-
sition of Cefla Retail Solutions contributing 11 per-
cent. The sales trend was favourable throughout
the entire year as societies and retailers opened
up after lockdowns due to the pandemic. Sales
to the Grocery and Home Improvements custom-
er groups increased, while sales in Fashion were
unchanged compared with the preceding year.
Items that do not belong to regular operations, known as non-recurring items
2022 2021 2020 2019 2018
Acquisition, integration and
restructuring costs -40 -166 -156 -70 -63
Inventory impairment of non-recurring
character – – -52 – –
Revaluation/settlement, additional pur-
chase considerations for acquisitions – – – 42 34
Sale of property and restructuring in
Belgium – – – 44 15
-40 -166 -208 16 -14
Impact of non-recurring items on the income statement
2022 2021 2020 2019 2018
Gross profit -19 -59 -121 -31 -37
EBITDA -30 -157 -202 16 -5
Operating profit -40 -166 -205 16 -8
Profit after net financial items -40 -166 -208 16 -14
The most significant growth took place in Southern
Europe and Eastern Europe.
In 2022, sales grew by MSEK 781 for Continuing
Operations, corresponding to +13 percent. Cur-
rency-adjusted sales increased by 8 percent, with
organic growth accounting for 6 percent and the
acquisition of Checkmark in February 2022 con-
tributing 2 percent. Organic growth was mainly
attributable to implemented price increases and
stable underlying demand. The greatest sales
increase took place in Central Europe. Growth was
largest in Fashion and Home Improvements, but
sales to Grocery and Other customer groups also
increased.
PROFITABILITY
During the five-year period, operating profit var-
ied between a minimum of MSEK 112 (2020) and
a maximum of MSEK 403 (2022). The operating
margin during the period also varied between
2.1 and 5.9 percent. Profit after net financial items
amounted to between MSEK 0 (2020) and MSEK
348 (2022), and the profit margin was between 0.0
and 5.1 percent. Profit over the years was impact-
ed by non-recurring items.
The operating margin for 2018 declined to 3.8
percent. Profit was adversely affected by lower
sales, mainly in the UK and Southern Europe. In
addition, profit was affected by restructuring costs
in connection with the launch of a large-scale,
Group-wide efficiency programme.
Profit in 2019 was in line with the preceding year.
Profit was negatively impacted by restructuring
costs related to the growth and efficiency pro-
gramme launched in 2018. Impairment of assets
as well as organisational changes and staff reduc-
tions also had an adverse impact on profit. Cap-
ital gains on property sales and repayments of
purchase considerations for acquisitions had a
positive impact on earnings.
Operating profit for 2020 declined to MSEK
112, corresponding to an operating margin of
2.1 percent. The decrease in sales and currency
effects had a negative impact on profit, while an
improved gross margin and effects of cost-saving
measures had a positive effect. Profit was nega-
tively affected by MSEK -205 in non-recurring items,
most of which were attributable to restructuring
costs and inventory impairment.
Profit for 2021 was positively impacted by
increased sales and the ongoing efforts to trans-
form the operations under One ITAB, including
completed production relocations and cost
adaptations, more common ways of working, and
more efficient and flexible market cultivation. At
the same time, the sharp increase in raw materi-
al prices and shortages of certain components
during the first two quarters of the year had a neg-
ative impact on all of the Group’s markets. Profit
was negatively impacted by non-recurring items
of MSEK -166 pertaining to restructuring costs.
Profit for 2022 was positively impacted by the
sales increase enabled by implemented price
increases and currency effects. At the same time,
shortages of certain electronic components and
rapidly rising prices for raw materials, shipping and
energy as well as lockdowns in China due to the
COVID-19 pandemic at the start of the year had
a negative impact on the gross margin. Profit was
negatively impacted by non-recurring items of
MSEK -40 pertaining to restructuring costs.
The Group’s return on equity during the period
averaged approximately 4.5 percent.
INVESTMENTS
During the period, net investments, excluding
acquisitions, amounted to a maximum of 1.7 per-
cent of sales. The Group’s investments mainly con-
sisted of machinery with a focus on unmanned
operations, high utilisation of resources, sustain-
ability and cutting-edge technical development
as well as generated development costs for
proprietary products and solutions. In 2018, the
Group invested in a larger production facility in
China with the aim of securing sustainable and
efficient production and assembly. In 2021, corre-
sponding investments were made in shared pro-
duction facilities in the Czech Republic within the
framework of One ITAB.
Investments attributable to acquisitions focused
on strengthening the Group’s position as a mar-
ket-leading supplier of shop fittings to the Group’s
selected customer groups and geographic mar-
kets, and on strengthening and supplementing
the services and product portfolio in certain areas.
FINANCIAL DEVELOPMENT
The balance sheet total was MSEK 5,657 at the
start of 2018 and MSEK 6,576 at year-end 2022.
The changes in the balance sheet total are
attributable to completed acquisitions, invest-
ments in production facilities and property
sales. The transition to IFRS 16 Leases on 1 Jan-
uary 2019 increased the balance sheet total by
MSEK 725. The expansion was achieved through
positive cash flow from operating activities,
bank financing and the recapitalisation and com-
pleted share issues in 2021. Interest-bearing net
debt amounted to MSEK 2,095 at year-end 2018
and decreased to MSEK 399 (excluding lease lia-
bilities) in 2022.
The Group’s equity/assets ratio amounted to
31–32 percent for 2018–2020, but improved to 48
percent at year-end 2022.
FINANCIAL INFORMATION
52 ITAB | ANNUAL REPORT 2022
| INCOME STATEMENT – GROUP | |||
(MSEK) Note | 2022 | 2021 | |
Revenue from contracts with customers | 6 | ||
Cost of goods sold | 8, 9, 10, 11 | - | - |
GROSS PROFIT | |||
Selling expenses | 8, 9, 10, 11 | - | - |
Administrative expenses | 8, 9, 10, 11 | - | - |
Other operating income | 12 | ||
Other operating expenses | 12 | - | - |
OPERATING PROFIT | |||
Financial income | 14 | ||
Financial expenses | 14 | - | - |
PROFIT AFTER FINANCIAL ITEMS | |||
Tax expenses for the year | 16 | - | - |
NET PROFIT FOR THE YEAR – CONTINUING OPERATIONS | 243 | 95 | |
Profit from Discontinued Operations, net after tax | 5 | - | |
NET PROFIT FOR THE YEAR | |||
| Net profit for the year attributable to: | |||
Parent Company shareholders | |||
Non-controlling interests | |||
EARNINGS PER SHARE, SEK | 17 | ||
Including Discontinued Operations before dilution | |||
Including Discontinued Operations after dilution | |||
Excluding Discontinued Operations before dilution |
| STATEMENT OF OTHER COMPREHENSIVE INCOME – GROUP | |||
(MSEK) Note | 2022 | 2021 | |
NET PROFIT FOR THE YEAR | |||
| OTHER COMPREHENSIVE INCOME | |||
| Items that will not be reclassified to the income statement: | |||
Revaluation of defined-benefit pension commitments | 29 | - | |
Tax relating to items not to be reclassified | 16 | - | |
- | |||
| Items that may be reclassified to the income statement: | |||
Translation difference on translation of foreign operations | |||
Change in fair value of hedges of net investments | - | - | |
Change in fair value of cash flow hedges | |||
Change in fair value of cash flow hedges transferred to net profit for the year | - | ||
Tax on items that may be reclassified | 16 | - | - |
25 | |||
TOTAL OTHER COMPREHENSIVE INCOME | |||
COMPREHENSIVE INCOME FOR THE YEAR | |||
| Comprehensive income for the year attributable to: | |||
Parent Company shareholders | |||
Non-controlling interests |
FINANCIAL INFORMATION
53ANNUAL REPORT 2022 | ITAB
| STATEMENT OF FINANCIAL POSITION – GROUP | |||
(MSEK) Note | 2022 | 2021 | |
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | |||
Goodwill | 18 | ||
Other intangible assets | 10, 18 | ||
6 | |||
| Property, plant and equipment | |||
Buildings and land | 10, 19, 22 | ||
Plant and machinery | 10, 19, 22 | ||
Equipment, tools and installations | 10, 19, 22 | ||
Construction in progress and advance payments for property, plant and equipment | 19 | ||
6 | |||
| Financial assets | |||
Participations in associated companies | 20 | ||
Non-current derivative receivables | 21 | ||
Other financial non-current receivables | 21 | ||
Deferred tax assets | 16 | ||
TOTAL NON-CURRENT ASSETS | |||
| CURRENT ASSETS | |||
Inventory | 23 | ||
Accounts receivable | 21 | ||
Current tax assets | |||
Current derivative receivables | 21 | ||
Other receivables | 21 | ||
Prepaid expenses and accrued income | 6, 21, 24 | ||
Cash and cash equivalents | 21 | ||
TOTAL CURRENT ASSETS | |||
Assets held for sale | 5 | ||
TOTAL ASSETS | |||
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
Share capital | |||
Other contributed capital | |||
Other reserves | |||
Profit brought forward including net profit for the year | |||
Equity attributable to Parent Company shareholders | |||
Non-controlling interests | |||
TOTAL EQUITY | 25, 26, 27 | ||
| NON-CURRENT LIABILITIES | |||
Liabilities to credit institutions | 21 | ||
Non-current lease liabilities | 21, 22 | ||
Non-current derivative liabilities | 21 | ||
Other non-current liabilities | 21 | ||
Provisions for pensions and similar obligations | 29 | ||
Provision for deferred tax liabilities | 16 | ||
Other non-current provisions | 30 | ||
| CURRENT LIABILITIES | |||
Liabilities to credit institutions | 21 | ||
Current lease liabilities | 21, 22 | ||
Overdraft facilities | 21, 28 | ||
Current derivative liabilities | 21 | ||
Advance payments from customers | 6, 21 | ||
Accounts payable | 21 | ||
Current tax liabilities | |||
Other liabilities | 21 | ||
Accrued expenses and prepaid income | 6, 21, 31 | ||
Current provisions | 30 | ||
Liabilities attributable to assets held for sale | 5 | ||
TOTAL EQUITY AND LIABILITIES |
FINANCIAL INFORMATION
54 ITAB | ANNUAL REPORT 2022
| STATEMENT OF CHANGES IN EQUITY – GROUP | |||||||||
| Other | Attributable to | Attributable to | |||||||
| Share | Repurchased | contributed | Other reserves | Profit brought | Parent Company | non-controlling | Total | ||
| (MSEK) Note | capital | own shares | capital | (see Note 25) | forward | shareholders | interests | equity | |
EQUITY AS OF 1 JANUARY 2021 | - | ||||||||
Net profit for the year | |||||||||
| Revaluation of defined-benefit | |||||||||
pension commitments | - | - | - | ||||||
Translation difference, foreign operations | |||||||||
Hedging of net investment | - | - | - | ||||||
Hedging of cash flow | |||||||||
COMPREHENSIVE INCOME FOR THE YEAR | |||||||||
Acquisition of non-controlling interests | 5 | - | - | ||||||
Acquisition of partly owned companies | 5 | ||||||||
New and offset issue | 27 | ||||||||
EQUITY AS OF 31 DECEMBER 2021 | 25.26 | ||||||||
Net profit for the year | |||||||||
| Revaluation of defined-benefit | 0 | ||||||||
| pension commitments | |||||||||
Translation difference, foreign operations | |||||||||
Hedging of net investment | - | - | - | ||||||
Hedging of cash flow | |||||||||
COMPREHENSIVE INCOME FOR THE YEAR | |||||||||
Incentive programme | 8, 27 | ||||||||
New share issue of Class C shares | 27 | ||||||||
Repurchase of own Class C shares | 27 | - | - | - | |||||
EQUITY AS OF 31 DECEMBER 2022 | 25.26 | - |
| STATEMENT OF CASH FLOWS – GROUP | |||
Indirect method (MSEK) | Note | 2022 | 2021 |
| Operating activities | |||
OPERATING PROFIT FROM CONTINUING OPERATIONS | |||
PROFIT FROM DISCONTINUED OPERATIONS, NET AFTER TAX | 5 | - | |
| Adjustment for items not included in the cash flow | |||
depreciation and amortisation – Continuing Operations | 10, 22 | ||
depreciation, amortisation and impairment losses of non-current assets – Discontinued Operations | |||
impairment losses of current assets | |||
adjustment for pensions and other provisions | - | - | |
participations in associated companies | |||
other items | - | ||
TOTAL | |||
Interest received | |||
Interest paid | - | - | |
Tax paid | - | - | |
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL | |||
| Change in working capital | |||
Change in inventories (increase -/decrease +) | - | ||
Change in operating receivables (increase -/decrease +) | - | ||
Change in operating liabilities (increase +/decrease -) | - | ||
Total change in working capital | - | ||
CASH FLOW FROM OPERATING ACTIVITIES | - | ||
| Investing activities | |||
Acquisition of businesses/Group companies during the year, effect on cash and cash equivalents | 5 | - | - |
Divestment of Group companies | 5, 12 | ||
Investments in intangible assets | 18 | - | - |
Divestment of intangible assets | 12, 18 | ||
Investments in property, plant and equipment | 19 | - | - |
Divestment of property, plant and equipment | 12, 19 | ||
Cash flow from investing activities | - | - | |
CASH FLOW AFTER INVESTING ACTIVITIES | - | ||
| Financing activities | |||
New share issue | 27 | ||
Repayment of loans | 21 | - | - |
Repayment of lease liabilities | 21 | - | - |
New loans raised | 21 | ||
Cash flow from financing activities | - | ||
CASH FLOW FOR THE YEAR | - | ||
Of which, cash flow from Discontinued Operations | 5 | - | |
CASH AND CASH EQUIVALENTS AT THE START OF THE YEAR | |||
Cash and cash equivalents from Discontinued Operations | 5 | - | |
Translation differences on cash and cash equivalents | |||
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | |||
FINANCIAL INFORMATION
55ANNUAL REPORT 2022 | ITAB
INCOME STATEMENT – PARENT COMPANY
(MSEK) Note 2022 2021
Net sales 7 174 171
Cost of goods sold 7, 8, 9, 11 -25 -21
GROSS PROFIT 149 150
Selling expenses 7, 8, 9, 11 -58 -47
Administrative expenses 7, 8, 9, 10, 11 -69 -56
Other operating income 12 32 11
Other operating expenses 12 -13 -7
OPERATING PROFIT 41 51
Income from participations in Group companies 13 31 46
Expenses from participations in Group companies 13 -91 -51
Financial income 14 44 33
Financial expenses 14 -82 -92
PROFIT AFTER FINANCIAL ITEMS -57 -13
Year-end appropriations 15 -7 -56
PROFIT BEFORE TAX -64 -69
Tax expenses for the year 16 1 15
NET PROFIT FOR THE YEAR -63 -54
STATEMENT OF OTHER COMPREHENSIVE INCOME – PARENT COMPANY
(MSEK) Note 2022 2021
Net profit for the year -63 -54
Other comprehensive income – –
COMPREHENSIVE INCOME FOR THE YEAR -63 -54
FINANCIAL INFORMATION
56 ITAB | ANNUAL REPORT 2022
BALANCE SHEET – PARENT COMPANY
(MSEK) Note 2022 2021
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Equipment, tools and installations 10, 19 5 6
Financial assets
Participations in Group companies 20 2,051 2,051
Participations in associated companies 20 15 15
Other non-current assets
Deferred tax assets 16 33 32
TOTAL NON-CURRENT ASSETS 2,104 2 ,10 4
CURRENT ASSETS
Receivables, Group companies 21 522 494
Current tax assets 3 3
Other receivables 21 3 –
Prepaid expenses and accrued income 24 9 5
Cash and bank balance 21 402 54
TOTAL CURRENT ASSETS 939 556
TOTAL ASSETS 3,043 2,660
EQUITY AND LIABILITIES
EQUITY
Restricted equity
Share capital 93 91
Statutory reserve 7 7
100 98
Non-restricted equity
Share premium reserve 1,083 1,084
Profit brought forward 642 695
Net profit for the year -63 -54
1,662 1,725
TOTAL EQUITY 25, 26, 27 1,762 1,823
NON-CURRENT LIABILITIES
Liabilities to credit institutions 1,028 541
21 1,028 541
CURRENT LIABILITIES
Liabilities to credit institutions – 112
Overdraft facilities 28 36 32
Accounts payable 3 3
Liabilities to Group companies 183 105
Other liabilities 1 4
Accrued expenses and prepaid income 31 30 40
21 253 296
TOTAL EQUITY AND LIABILITIES 3,043 2,660
FINANCIAL INFORMATION
57ANNUAL REPORT 2022 | ITAB
STATEMENT OF CASH FLOWS – PARENT COMPANY
STATEMENT OF CHANGES IN EQUITY – PARENT COMPANY
RESTRICTED EQUITY NON-RESTRICTED EQUITY
(MSEK) Note
Share
capital
Statutory
reserve
Share premi-
um reserve
Profit brought
forward
Net profit
for the year
Total
equity
EQUITY AS OF 1 JANUARY 2021 43 7 299 723 -28 1,044
Previous year’s profit transferred -28 28 0
Net profit for the year -54 -54
New and offset issue 27 48 785 833
EQUITY AS OF 31 DECEMBER 2021 25, 26 91 7 1,084 695 -54 1,823
Previous year’s profit transferred -54 54 0
Net profit for the year -63 -63
Incentive programme 8, 27 2 2
New share issue of Class C shares 27 2 -1 1 2
Repurchase of own Class C shares 27 -2 -2
EQUITY AS OF 31 DECEMBER 2022 25, 26 93 7 1,083 642 -63 1,762
(MSEK) Note 2022 2021
Operating activities
OPERATING PROFIT 41 51
Adjustment for items not included in the cash flow 10
depreciation charged to operating profit 1 1
other items 4 0
TOTAL 46 52
Dividends received from subsidiaries 31 46
Interest received 44 33
Interest paid -35 -56
Tax paid -2 0
CASH FLOW FROM OPERATING ACTIVITIES
BEFORE CHANGES IN WORKING CAPITAL 84 75
Change in working capital
Change in operating receivables (increase -/decrease +) -6 1
Change in operating liabilities (increase +/decrease -) -17 -5
Total change in working capital -23 -4
CASH FLOW FROM OPERATING ACTIVITIES 61 71
Investing activities
Investments in property, plant and equipment 19 0 0
Cash flow from investing activities 0 0
CASH FLOW AFTER INVESTING ACTIVITIES 61 71
Financing activities
New share issue 0 733
Repayment of loans -393 -1,156
New loans raised 768 308
Lending to Group companies -81 -295
Group contributions 15 -7 -56
Cash flow from financing activities 287 -466
CASH FLOW FOR THE YEAR 348 -395
CASH AND CASH EQUIVALENTS AT THE START OF THE YEAR 54 449
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 402 54
FINANCIAL INFORMATION
58 ITAB | ANNUAL REPORT 2022
FINANCIAL INFORMATION
59ANNUAL REPORT 2022 | ITAB
FINANCIAL INFORMATION
60 ITAB | ANNUAL REPORT 2022
FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
84 ITAB | ANNUAL REPORT 2022
PARENT COMPANY
Share capital
On 9 February 2021, the Board decided to implement an offset issue and
rights issue based on the issue authorisation decided at the Extraordinary
General Meeting of ITAB Shop Concept AB (publ) on 15 January 2021. On
12 March 2021, the recapitalisation was fully completed and the rights issue
of MSEK 768 was fully subscribed. In connection with the issue, all Class A
shares were reclassified as Class B shares, entailing that ITAB only had Class
B shares outstanding after the recapitalisation. Through these issues and this
reclassification, the number of shares increased by a total of 115,716,762 and
amounts to 218,100,192 shares after the issues.
On 14 December 2022, the Board decided to issue new Class C shares
intended for the long-term incentive programme for senior executives in the
Group, based on the issue authorisation decided at the AGM of ITAB Shop
Concept AB (publ) on 10 May 2022. The issue increased the total number of
shares by 4,400,000 Class C shares. All shares are paid. For more information,
see Note 27.
Ordinary shares entitle the holder to one vote and Class C shares to 1/10 of
a vote at general meetings of shareholders. Ordinary shares entitle the hold-
er to dividends, while Class C shares do not. The share capital is distributed
as follows: SEK 90,876 thousand pertaining to ordinary shares and SEK 1,833
thousand pertaining to Class C shares. All Class C shares are held in trea-
sury by ITAB. The quotient value per share is SEK 0.4167. For information on the
share capital development, refer to Note 17.
Parent Company 31 Dec 2022 31 Dec 2021
Shares outstanding Ordinary shares Class C shares Total Class B shares Class A shares Total
Opening number of shares 218,100,192 – 218,10 0,192 8 0,217,03 0 22,166,400 102,383,430
Reverse split 22,166,40 0 -22,166,400 0
New share issue 4,400,000 4,400,000 102,383,430 102,383,430
Offset issue 0 13,333,332 13,333,332
Number of shares at the end of the year 218,100,192 4,400,000 222,500,192 218,10 0,192 0 218,10 0,192
of which held by ITAB Shop Concept AB -4,400,000 -4,400,000 – 0
Total shares outstanding at the end of the year 218,100,192 0 218,10 0,192 218,100,192 0 218,10 0,192
FINANCIAL INFORMATION
85ANNUAL REPORT 2022 | ITAB
FINANCIAL INFORMATION
86 ITAB | ANNUAL REPORT 2022
FINANCIAL INFORMATION
87ANNUAL REPORT 2022 | ITAB
FINANCIAL INFORMATION
88 ITAB | ANNUAL REPORT 2022
FINANCIAL INFORMATION
89ANNUAL REPORT 2022 | ITAB
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
Key ratios included in the Annual Report derive primarily from the disclosure requirements according to IFRS and the Swedish Annual Accounts Act. In addition,
reference is made to a number of performance measures that are not defined in IFRS regulations or directly in the income statement or balance sheet, with the aim
of illustrating the company’s profit trend, financial position and how the company has invested its capital.
These financial measures are not always calculated in the same way by all companies. The main alternative performance measures presented below are
EBITDA, cash conversion, interest-bearing net debt and return on equity, capital employed and total capital. The definitions of these alternative performance
measures and other key ratios can be found on the next page.
EBITDA (Operating profit before depreciation
and amortisation)
EBITDA (Earnings before interest, tax, depreciation and amortisation)
is considered a relevant profit measure to assess the company’s profit
trend over time.
(MSEK) 2022 2021
Operating profit 403 216
Depreciation and amortisation 271 271
EBITDA 674 487
Reversal of non-recurring items
1)
30 157
EBITDA EXCL. NON-RECURRING ITEMS 704 644
1)
For more information about non-recurring items, see page 51.
Cash conversion ratio (Operational cash flow
in relation to EBITDA)
A relevant measure to assess capital efficiency. This measure is included
in ITAB’s financial targets.
(MSEK) 2022 2021
Operational cash flow (Cash flow from operating
activities) 542 -165
EBITDA 674 487
CASH CONVERSION, % 80 N/A
Return on capital employed
This measure is used to assess the efficiency and value added from the
business.
(MSEK) 2022 2021
Net profit for the year after financial items
plus financial borrowing costs 418
230
Average*) balance sheet total
less non interest-bearing liabilities 4,688
4,266
RETURN ON CAPITAL EMPLOYED, % 8.9 5.4
Interest-bearing net debt
Interest-bearing net debt is the most relevant measure to show total
debt financing, and is included in the covenants that ITAB has in its loan
agreements with the company’s banks.
(MSEK) 2022 2021
Interest-bearing non-current liabilities 1,565 1,071
Interest-bearing current liabilities 296 380
Interest-bearing assets -25 -4
Cash and cash equivalents -756 -208
INTEREST-BEARING NET DEBT 1,080 1,239
Reversal of interest-bearing lease liabilities -681 -630
INTEREST-BEARING NET DEBT EXCL. LEASES 399 609
Return on equity
This measure shows the return on the shareholders' capital invested in
the ITAB Group.
(MSEK) 2022 2021
Net profit for the year attributable to Parent Company
shareholders 171 95
Equity attributable to Parent Company shareholders 3,012 2,654
Average*) equity attributable
to Parent Company shareholders 2,852 2,393
RETURN ON EQUITY, % 6.0 4.0
Return on total capital
This measure is used to assess the ability to generate profit on the
Group’s assets, regardless of financing costs.
(MSEK) 2022 2021
Net profit for the year after financial items
plus financial borrowing costs 418 230
Average*) total capital 6,189 5,939
RETURN ON TOTAL CAPITAL, % 6.8 3.9
*) Average is calculated as the average of opening balance and the relevant reported
quarterly data up until the closing period. In other words, 2022 is calculated as (31 December
2021 + 31 March 2022 + 30 June 2022 + 30 September 2022 + 31 December 2022) divided by five.
ITAB | ANNUAL REPORT 2022
FINANCIAL INFORMATION
90
DEFINITIONS
PERFORMANCE MEASURE
& ALTERNATIVE PERFOR-
MANCE MEASURE DEFINITION MOTIVE
RETURN ON EQUITY
Net profit for the year attributable to the Parent Company’s shareholders in rela-
tion to average equity attributable to the Parent Company’s shareholders.
Relevant measure to show the return on the
shareholders' capital invested in the ITAB Group.
RETURN ON
CAPITAL EMPLOYED
Profit after financial items plus financial borrowing costs in relation to average
balance sheet total less non interest-bearing liabilities.
Relevant measure for assessing ITAB’s efficiency
and added value from the business.
RETURN ON TOTAL CAPITAL
Profit after financial items plus financial borrowing costs in relation to average
total capital.
Relevant measure for assessing ITAB’s ability to
generate profit on the Group’s assets regardless
of financing costs.
CASH CONVERSION
Operational cash flow (Cash flow from operating activities) in relation to
operating profit before depreciation/amortisation (EBITDA)
A relevant measure to assess capital efficiency. This
measure is included in ITAB’s financial targets.
DIRECT YIELD
Paid or proposed dividend in relation to the share price on the balance sheet date. Return measure for shareholders.
DISCOUNT RATE (WACC)
Weighted average cost of capital – weighted required return for equity and
borrowed capital on the company’s future earnings.
Measures the required return on ITAB’s capital
and is used to discount future cash flows.
EBITDA
Earnings before interest, tax, depreciation and amortisation. A relevant profit measure to assess the compa-
ny’s profit trend over time.
EQUITY PER SHARE
Equity at the end of the period attributable to Parent Company shareholders in
relation to the number of shares at the end of the period.
Measure to describe how much equity belongs
to the shareholders of the Parent Company.
CASH FLOW FROM
OPERATING ACTIVITIES
PER SHARE
Cash flow from operating activities in relation to the average number of
outstanding shares.
This measure highlights ITAB’s ability to generate
cash flow and pay its shareholders.
AVERAGE NUMBER
OF EMPLOYEES
Number of worked hours divided by normal annual working time. This measure shows the size of ITAB’s workforce.
EARNINGS PER SHARE
AFTER DILUTION
Net profit for the year attributable to Parent Company shareholders in relation
to the average number of ordinary shares after dilution. For calculation of
earnings per share after dilution, the average number of shares is adjusted
taking into account the effects of dilutive potential ordinary shares, which,
during the reporting years in question, comprised rights to receive shares in ITAB
within the framework of the LTIP 2022 long-term incentive programme. Matching
share rights held by employees as of the reporting date are considered dilutive.
Moreover, the right to receive shares with performance conditions is dilutive only
to the extent that set performance targets are met as of the reporting date.
Adjustment of the number of dilutive shares is based on the hypothetical
number of shares that could have been purchased with the value of remaining
positions within the framework of the incentive programme.
A valuation measure that highlights ITAB’s ability
to pay dividends to its shareholders.
EARNINGS PER SHARE
BEFORE DILUTION
Net profit for the year attributable to Parent Company shareholders in relation to
the average number of ordinary shares before dilution.
A valuation measure that highlights ITAB’s ability
to pay dividends to its shareholders.
INTEREST-BEARING NET DEBT
Non-current and current interest-bearing liabilities including lease liabilities less
interest-bearing assets as well as cash and cash equivalents.
A relevant measure to show ITAB’s total loan
financing. This measure is included in the
covenants in ITAB’s loan agreements with the
company’s banks.
INTEREST-COVERAGE RATIO
Profit after financial items plus financial interest expenses in relation to financial
borrowing costs.
Shows ITAB’s ability to cover its financial expenses.
OPERATING MARGIN /
EBIT MARGIN
Operating profit in relation to revenue. Relevant for assessing ITAB’s efficiency and
added value. This measure is included in ITAB’s
financial targets.
EQUITY/ASSETS RATIO
Equity in relation to total capital. This measure highlights financial risk.
TOTAL CAPITAL
Total equity and liabilities (balance sheet total). This measure highlights the size of the company’s
total assets.
CURRENCY-ADJUSTED SALES
Translation of the foreign subsidiaries’ income statements are conducted at
each period’s average currency rate. For comparison of profit excluding cur
-
rency effects, the companies are recalculated at the previous year’s average
currency rate for the same period. ITAB applies the European Central Bank’s
average rates for the whole period.
Relevant to show the sales and profit trend
without any effects from currency rates fluctua
-
tions. This measure is included in ITAB’s financial
targets.
PROFIT MARGIN
Profit after financial items in relation to revenue. Relevant for assessing ITAB’s efficiency and
added value.
FINANCIAL INFORMATION
91ANNUAL REPORT 2022 | ITAB
Our Auditor’s Report was submitted on 29 March 2023
Ernst & Young AB
Joakim Falck
Authorised Public Accountant
FINANCIAL INFORMATION
92 ITAB | ANNUAL REPORT 2022
AUDITOR’S REPORT
To the General Meeting of Shareholders of ITAB Shop Concept AB (publ), corporate identity number 556292-1089
REPORT ON THE ANNUAL ACCOUNTS AND
CONSOLIDATED ACCOUNTS
Opinions
We have audited the annual accounts and consol-
idated accounts of ITAB Shop Concept AB (publ),
except for the Corporate Governance Report on
pages 43–47 for the year 2022. The annual accounts
and consolidated accounts of the company are
included on pages 35–91 in this document.
In our opinion, the annual accounts have
been prepared in accordance with the Annual
Accounts Act and present fairly, in all material
respects, the financial position of the Parent Com-
pany as of 31 December 2022 and its financial per-
formance and cash flow for the year then ended
in accordance with the Annual Accounts Act. The
consolidated accounts have been prepared in
accordance with the Annual Accounts Act and
present fairly, in all material respects, the financial
position of the Group as of 31 December 2022 and
their financial performance and cash flow for the
year then ended in accordance with International
Financial Reporting Standards (IFRS), as adopt-
ed by the EU, and the Annual Accounts Act. Our
opinions do not cover the Corporate Governance
Report on pages 43–47. The statutory Administra-
tion Report is consistent with the other parts of the
annual accounts and consolidated accounts.
We therefore recommend that the General
Meeting of Shareholders adopts the income state-
ment and balance sheet for the Parent Company
and the Group.
Our opinions in this report on the annual
accounts and consolidated accounts are con-
sistent with the content of the additional report
that has been submitted to the Parent Company's
Audit Committee in accordance with the Audit
Regulation (537/2014) Article 11.
Basis for opinions
We conducted our audit in accordance with Inter-
national Standards on Auditing (ISA) and gener-
ally accepted auditing standards in Sweden. Our
responsibilities under those standards are further
described in the section “Auditor’s Responsibilities”.
We are independent of the Parent Company and
the Group in accordance with professional ethics for
accountants in Sweden and have otherwise fulfilled
our ethical responsibilities in accordance with these
requirements. This includes that, based on the best
of our knowledge and belief, no prohibited services
referred to in the Audit Regulation (537/2014) Article
5.1 have been provided to the audited company
or, where applicable, its Parent Company or its con-
trolled companies within the EU.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our opinions.
Key audit matters
Key audit matters of the audit are those matters
that, in our professional judgement, were of most
significance in our audit of the annual accounts
and consolidated accounts of the current period.
These matters were addressed in the context of
our audit of, and in forming our opinion thereon,
the annual accounts and consolidated accounts
as a whole, but we do not provide a separate opin-
ion on these matters. For each matter below, our
description of how our audit addressed the matter
is provided in that context.
We have fulfilled the responsibilities described in
the section “Auditor’s responsibilities” for the audit
of the financial statements, including in relation to
these matters. Accordingly, our audit included the
performance of procedures designed to respond
to our assessment of the risks of material misstate-
ment of the annual accounts and consolidated
accounts. The results of our audit procedures,
including the procedures performed to address
the matters below, provide the basis for our audit
opinion on the accompanying financial state-
ments.
Valuation of goodwill and shares in
Group companies
Description of the matter
As of 31 December 2022, the carrying amount of
goodwill amounts to MSEK 1,790 in the Group’s bal-
ance sheet which corresponds to 27.2 percent of
total assets. Shares in Group companies are report-
ed in the Parent Company’s balance sheet at MSEK
2,051, which corresponds to 64.4 percent of total
assets. Every year, and when there is an indication
of a fall in value, ITAB tests that the carrying amount
does not exceed the calculated recoverable
amount. The recoverable amount is determined for
each cash-generating unit by means of a current
value calculation of future cash flows. Future cash
flows are based on the management’s business
plans and forecasts and include a number of
assumptions, including regarding profit trend,
growth, investment needs and discount rate. For
participations in Group companies, the recover-
able amount is determined as fair value or value in
use, whichever is the highest.
Altered assessments of the assumptions that
the management has made in the calculation
of the recoverable amount and the assumptions
that the company has applied are therefore very
important in the assessment of the need for impair-
ment. We have therefore judged that the recogni-
tion of goodwill and shares in Group companies
are a key audit matter.
A description of the impairment test can be
seen in Note 18 “Intangible assets” and in Note 3
“Important estimates and assessments”.
How our audit addressed this key audit matter
In our audit, we have evaluated and tested the
company’s process for establishing impairment
tests, including by evaluating the accuracy of
forecasts and assumptions in previous years.
With the aid of our valuation specialists, we have
assessed the selected discount rate and assump-
tions regarding long-term growth. We have also
reviewed the company’s model and method for
implementing impairment tests and have evalu-
ated the company’s sensitivity analysis. We have
reviewed the additional information provided in
the annual accounts.
Other information than the annual accounts
and consolidated accounts
This document also contains other information
than the annual accounts and consolidated
accounts which is found on pages 1–33. Oth-
er information also comprises the remunera-
tion report for the 2022 financial year, which we
received prior to the date of this Auditor’s Report.
The Board of Directors and the Chief Executive Offi-
cer (CEO) are responsible for this other information.
Our opinion on the annual accounts and con-
solidated accounts does not cover this other infor-
mation and we do not express any form of assur-
ance conclusion regarding this other information.
In connection with our audit of the annual
accounts and consolidated accounts, our respon-
sibility is to read the information identified above
and consider whether the information is materially
inconsistent with the annual accounts and consoli-
dated accounts. In this procedure, we also take into
account our knowledge otherwise obtained in the
audit and assess whether the information otherwise
appears to be materially misstated.
If we, based on the work performed concerning
this information, conclude that there is a materi-
al misstatement of this other information, we are
required to report that fact. We have nothing to
report in this regard.
Responsibilities of the Board of Directors and
the CEO
The Board of Directors and the CEO are responsi-
ble for the preparation of the annual accounts
and consolidated accounts and that they give a
fair presentation in accordance with the Annual
Accounts Act and, concerning the consolidated
accounts, in accordance with IFRS as adopted
by the EU. The Board of Directors and the CEO are
also responsible for such internal control as they
determine is necessary to enable the preparation
of annual accounts and consolidated accounts
that are free from material misstatement, whether
due to fraud or error.
In preparing the annual accounts and consol-
idated accounts, the Board of Directors and the
CEO are responsible for the assessment of the
company’s and the Group’s ability to continue
as a going concern. They disclose, as applica-
ble, matters related to going concern and using
the going concern basis of accounting. The
going concern basis of accounting is however
not applied if the Board of Directors and the CEO
intend to liquidate the company, to cease oper-
ations, or has no realistic alternative but to do so.
The Board’s Audit Committee shall, without prej-
udice to the Board of Director’s responsibilities and
tasks in general, among other things oversee the
company’s financial reporting process.
Translation from the Swedish original.
FINANCIAL INFORMATION
93ANNUAL REPORT 2022 | ITAB
Auditor’s responsibility
Our objectives are to obtain reasonable assurance
about whether the annual accounts and consol-
idated accounts as a whole are free from material
misstatement, whether due to fraud or error, and to
issue an Auditor’s Report that includes our opinions.
Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in
accordance with ISAs and generally accepted
auditing standards in Sweden will always detect a
material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they
could reasonably be expected to influence the eco-
nomic decisions of users taken on the basis of these
annual accounts and consolidated accounts.
As part of an audit in accordance with ISAs, we
exercise professional judgement and maintain pro-
fessional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstate-
ment of the annual accounts and consolidated
accounts, whether due to fraud or error, design
and perform audit procedures responsive to
those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for
our opinions. The risk of not detecting a material
misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrep-
resentations, or the override of internal control.
• Obtain an understanding of the company’s
internal control relevant to our audit in order to
design audit procedures that are appropriate
in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the
company’s internal control.
• Evaluate the appropriateness of accounting pol-
icies used and the reasonableness of account-
ing estimates and related disclosures made by
the Board of Directors and the CEO.
• Conclude on the appropriateness of the Board
of Directors’ and the CEO’s use of the going
concern basis of accounting in preparing the
annual accounts and consolidated accounts.
We also draw a conclusion, based on the audit
evidence obtained, as to whether any material
uncertainty exists related to events or conditions
that may cast significant doubt on the compa-
ny’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we
are required to draw attention in our Auditor’s
Report to the related disclosures in the annual
accounts and consolidated accounts or, if such
disclosures are inadequate, to modify our opin-
ion about the annual accounts and consolidat-
ed accounts. Our conclusions are based on the
audit evidence obtained up to the date of our
Auditor’s Report. However, future events or con-
ditions may cause a company to cease to con-
tinue as a going concern.
• Evaluate the overall presentation, structure and
content of the annual accounts and consolidated
accounts, including the disclosures, and whether
the annual accounts and consolidated accounts
represent the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient and appropriate audit evidence
regarding the financial information of the entities
or business activities within the Group to express
an opinion on the consolidated accounts. We
are responsible for the direction, supervision and
performance of the Group audit. We remain solely
responsible for our opinions.
We must inform the Board of Directors of, among
other matters, the planned scope and timing of
the audit. We must also inform of significant audit
findings during our audit, including any significant
deficiencies in internal control that we identified.
We must also provide the Board of Directors with
a statement that we have complied with relevant
ethical requirements regarding independence,
and to communicate with them all relation-
ships and other matters that may reasonably be
thought to bear on our independence, and where
applicable, actions taken to eliminate threats or
related safeguards applied.
From the matters communicated with the Board
of Directors, we determine those matters that were
of most significance in the audit of the annual
accounts and consolidated accounts, includ-
ing the most important assessed risks for material
misstatement, and are therefore the key audit
matters. We describe these matters in the Auditor’s
Report unless law or regulation precludes disclo-
sure about the matter.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
Report on the audit of the administration and
the proposed appropriations of the company’s
profit or loss
Opinions
In addition to our audit of the annual accounts, we
have also audited the administration of the Board
of Directors and the CEO of ITAB Shop Concept AB
(publ) for the year 2022 and the proposed appro-
priations of the company’s profit or loss.
We recommend to the General Meeting of
Shareholders that the profit be appropriated in
accordance with the proposal in the statutory
Administration Report and that the members of
the Board of Directors and the CEO be discharged
from liability for the financial year.
Basis for opinions
We conducted the audit in accordance with gen-
erally accepted auditing standards in Sweden.
Our responsibilities under those standards are fur-
ther described in the section “Auditor’s responsibil-
ities”. We are independent of the Parent Company
and the Group in accordance with professional
ethics for accountants in Sweden and have oth-
erwise fulfilled our ethical responsibilities in accor-
dance with these requirements.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our opinions.
Responsibilities of the Board of Directors and
the CEO
The Board of Directors is responsible for the pro-
posal for appropriations of the company’s profit or
loss. At the proposal of a dividend, this includes an
assessment of whether the dividend is justifiable
considering the requirements which the compa-
ny's and the Group’s type of operations, size and
risks place on the size of the Parent Company’s
and the Group’s equity, consolidation require-
ments, liquidity and position in general.
The Board of Directors is responsible for the
company’s organisation and the administration of
the company’s affairs. This includes among other
things continuous assessment of the company’s
and the Group’s financial situation and ensuring
that the company's organisation is designed so
that the accounting, management of assets and
the company’s financial affairs otherwise are con-
trolled in a reassuring manner. The CEO shall man-
age the ongoing administration according to the
Board of Directors’ guidelines and instructions and
among other matters take measures that are nec-
essary to fulfil the company’s accounting in accor-
dance with law and handle the management of
assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the adminis-
tration, and thereby our opinion about discharge
from liability, is to obtain audit evidence to assess
with a reasonable degree of assurance whether
any member of the Board of Directors or the CEO in
any material respect:
• Has undertaken any action or been guilty of any
omission which can give rise to liability to the
company, or
• In any other way has acted in contravention of
the Companies Act, the Annual Accounts Act or
the Articles of Association.
Our objective concerning the audit of the proposed
appropriations of the company’s profit or loss, and
thereby our opinion about this, is to assess with rea-
sonable degree of assurance whether the proposal
is in accordance with the Companies Act.
Reasonable assurance is a high level of assur-
ance, but is not a guarantee that an audit con-
ducted in accordance with generally accepted
auditing standards in Sweden will always detect
actions or omissions that can give rise to liability
to the company, or that the proposed appropri-
ations of the company’s profit or loss are not in
accordance with the Companies Act.
As part of an audit in accordance with generally
accepted auditing standards in Sweden, we exer-
cise professional judgement and maintain profes-
sional skepticism throughout the audit. The exam-
ination of the administration and the proposed
appropriations of the company’s profit or loss
is based primarily on the audit of the accounts.
Additional audit procedures performed are
based on our professional judgement with start-
ing point in risk and materiality. This means that we
focus the examination on such actions, areas and
relationships that are material for the operations
and where deviations and violations would have
particular importance for the company’s situa-
tion. We examine and test decisions undertaken,
support for decisions, actions taken and other
circumstances that are relevant to our opinion
concerning discharge from liability. As a basis for
our opinion on the Board of Directors’ proposed
appropriations of the company’s profit or loss we
examined whether the proposal is in accordance
with the Companies Act.
FINANCIAL INFORMATION
94 ITAB | ANNUAL REPORT 2022
THE AUDITOR’S EXAMINATION OF THE ESEF REPORT
Opinion
In addition to our audit of the annual accounts
and consolidated accounts, we have also exam-
ined that the Board of Directors and the CEO
have prepared the annual accounts and consol-
idated accounts in a format that enables uniform
electronic reporting (the ESEF report) pursuant to
Chapter 16, Section 4(a) of the Swedish Securities
Market Act (2007:528) for ITAB Shop Concept AB
(publ), for the year 2022.
Our examination and our opinion relate only to
the statutory requirements.
In our opinion, the ESEF report has been pre-
pared in a format that, in all material respects,
enables uniform electronic reporting.
Basis for opinion
We have performed the examination in accordance
with FAR’s recommendation RevR 18 Examination of
the ESEF report. Our responsibility under this recom-
mendation is described in more detail in the section
“Auditor's responsibility”. We are independent of ITAB
Shop Concept AB (publ), in accordance with profes-
sional ethics for accountants in Sweden and have
otherwise fulfilled our ethical responsibilities in accor-
dance with these requirements.
We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.
Responsibilities of the Board of Directors and
the CEO
The Board of Directors and the CEO are responsi-
ble for the preparation of the ESEF report in accor-
dance with Chapter 16, Section 4(a) of the Swed-
ish Securities Market Act (2007:528), and for such
internal control that the Board of Directors and the
CEO determine is necessary to prepare the ESEF
report without material misstatements, whether
due to fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assur-
ance whether the ESEF report is in all material
Jönköping, 29 March 2023
Ernst & Young AB
Joakim Falck
Authorised Public Accountant
AUDITORS
The auditors are appointed by the shareholders at the Annual General Meeting. The audi-
tors examine the company’s annual accounts, consolidated accounts and accounting
records as well as the administration of the Board of Directors and CEO.
The company’s auditor is the registered auditing company Ernst & Young AB, with authorised
public accountant Joakim Falck as auditor in charge. Aside from his duties for ITAB Shop Con-
cept AB, Joakim Falck also has auditing assignments for Nolato AB, Absolent Group AB, Garo
AB, Hexpol AB, Nefab AB, One Partner Group AB and Gyllensvaans Möbler AB.
JOAKIM FALCK
(born 1972)
Auditor for ITAB since 2018
Authorised Public Accountant
Member of FAR SRS, Ernst & Young AB
respects prepared in a format that meets the
requirements of Chapter 16, Section 4(a) of the
Swedish Securities Market Act (2007:528), based
on the procedures performed.
RevR 18 requires us to plan and execute proce-
dures to achieve reasonable assurance that the
ESEF report is prepared in a format that meets
these requirements.
Reasonable assurance is a high level of assur-
ance, but it is not a guarantee that an engage-
ment carried out according to RevR 18 and gen-
erally accepted auditing standards in Sweden
will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error
and are considered material if, individually or in
aggregate, they could reasonably be expected
to influence the economic decisions of users taken
on the basis of the ESEF report.
The audit firm applies ISQC 1 Quality Control for
Firms that Perform Audits and Reviews of Financial
Statements, and other Assurance and Related
Services Engagements and accordingly main-
tains a comprehensive system of quality control,
including documented policies and procedures
regarding compliance with professional ethical
requirements, professional standards and legal
and regulatory requirements.
The examination involves obtaining evidence,
through various procedures, that the ESEF report
has been prepared in a format that enables uni-
form electronic reporting of the annual accounts
and consolidated accounts. The procedures
selected depend on the auditor’s judgement,
including the assessment of the risks of material
misstatement in the report, whether due to fraud
or error. In carrying out this risk assessment, and in
order to design audit procedures that are appro-
priate in the circumstances, the auditor considers
those elements of internal control that are relevant
to the preparation of the ESEF report by the Board
of Directors and the CEO, but not for the purpose
of expressing an opinion on the effectiveness
of those internal controls. The examination also
includes an evaluation of the appropriateness
and reasonableness of assumptions made by the
Board of Directors and the CEO.
The procedures mainly include a validation that
the ESEF report has been prepared in a valid
XHTML format and a reconciliation of the ESEF
report with the audited annual accounts and con-
solidated accounts.
Furthermore, the procedures also include an
assessment of whether the consolidated income
statement, balance sheet, statement of changes
in equity and statement of cash flows as well as the
notes in the ESEF report have been marked with
iXBRL in accordance with the ESEF requirements.
THE AUDITOR’S EXAMINATION OF THE CORPO-
RATE GOVERNANCE REPORT
The Board of Directors is responsible for that the
Corporate Governance Report on pages 43–47
has been prepared in accordance with the Annu-
al Accounts Act.
Our examination of the Corporate Governance
Report is conducted in accordance with FAR’s
standard RevR 16 The auditor’s examination of the
corporate governance statement. This means that
our examination of the Corporate Governance
Report is different and substantially less in scope
than an audit conducted in accordance with
International Standards on Auditing and gener-
ally accepted auditing standards in Sweden. We
believe that the examination has provided us with
sufficient basis for our opinions.
A Corporate Governance Report has been pre-
pared. Disclosures in accordance with Chapter
6, Section 6, second paragraph, points 2–6 of the
Annual Accounts Act and Chapter 7, Section 31,
second paragraph of the same law are consistent
with the other parts of the annual accounts and
consolidated accounts and are in accordance
with the Annual Accounts Act.
Ernst & Young AB Box 7850, SE-103 99 Stockholm,
Sweden was appointed auditors of ITAB Shop Con-
cept AB (publ) by the General Meeting of Share-
holders on 10 May 2022. ITAB Shop Concept AB
(publ) has been a public interest entity since 28
May 2004.
FINANCIAL INFORMATION
95ANNUAL REPORT 2022 | ITAB
ANNUAL GENERAL MEETING 2023
The 2023 Annual General Meeting of ITAB Shop Concept AB (publ) will
be held on Wednesday, 10 May 2023 at 3:00 p.m. CEST at ITAB’s head
office at Instrumentvägen 2, Jönköping, Sweden.
The notice to attend the Annual General Meeting is expected to be
published in early April 2023 through a press release and on the com-
pany’s website, and through an advertisement in Post- och Inrikes
Tidningar. An announcement of the publication of the notice will be
made in Dagens Industri. The notice will contain the proposed agen-
da and the proposals of the Nomination Committee and the Board of
Directors for resolutions at the Meeting.
Refer to itabgroup.com for additional information and to download
and order reports.
FINANCIAL INFORMATION IN 2023
Interim Report 3 months – 1 Jan–31 Mar 2023 10 May 2023
Annual General Meeting 2023 10 May 2023
Interim Report 6 months – 1 Jan–30 Jun 2023 13 July 2023
Interim Report 9 months – 1 Jan–30 Sep 2023 31 October 2023
Year-End Report 12 months – 1 Jan–31 Dec 2023 7 February 2024
Annual Report 2023 March/April 2024
Annual General Meeting 2024 May 2024
CONTACT – INVESTOR RELATIONS
Mats Karlqvist, Head of Investor Relations
mats.karlqvist@itab.com
ITAB Shop Concept AB (publ)
Box 9054
SE-550 09 Jönköping, Sweden
Instrumentvägen 2 (Visiting address)
Tel. +46 (0)36-31 73 00
info@itab.com • ir@itab.com
www.itabgroup.com • www.itab.com