Report by the Board
of Directors
Report by the
Board of Directors 2022
KEY RATIOS
2022 2021 2020
Net sales, EUR million 702.7 478.2 342.4
Comparable EBITDA, EUR million 76.1 71.7 52.4
% of net sales 10.8 15.0 15.3
EBITDA, EUR million 67.9 62.9 40.3
Comparable operating result, EUR million 42.9 51.2 35.0
% of net sales 6.1 10.7 10.2
Operating result, EUR million 34.7 42.4 22.9
Result for the period, EUR million 18.1 31.2 17.8
Earnings per share, EUR 0.26 0.67 0.49
Net cash flow from operating activities, EUR million -0.4 50.8 56.1
Net debt / comparable EBITDA 4.0 1.8 -0.1
Personnel at end of period 1 251 1 055 637
Altia and Arcus merged on 1 September 2021. The consolidated financial statements for 2021 include Arcus’s income statement from 1
September 2021 onwards and statement of financial position as of 30 September 2021.
Anora is a leading wine and spirits brand house in the Nordic region and a global industry
forerunner in sustainability. Anora Group also includes Anora Industrial and logistics
company Vectura. Anora's shares are listed on Nasdaq Helsinki.
2022 was Anora’s first full year after the merger of Altia
and Arcus. To further strengthen its market position in
the Nordic region, Anora acquired Denmark’s leading wine
company Globus Wine in July.
For wine and spirits the markets returned to normal
after Covid-19. Volumes in the monopolies declined, as
restrictions were lifted in all markets. Consumption has
shifted back to on-trade, travel retail and border trade.
Anora reports growth of 5.7% in sales for 2022 compared
to the 2021 pro forma sales, with a strong contribution by
Globus Wine. The profitability was burdened by record high
input costs, including barley price, a lower gross margin, and
the change in sale channels mix.
In November, an ambitious long-term financial targets
and growth strategy with a sustainability roadmap were
launched.
Anora’s business model
Anora’s business model is based on offering a complete
portfolio of its own brands and a wide range of prominent
international partner wines and spirits to its customers
in off-trade and on-trade, and in travel retail and exports.
Anora also provides services to its partners utilising
the company’s production, packaging and logistics capacity.
Anora’s industrial products – grain spirits, barley starch,
technical ethanols and feed components – are produced as
by-products from the distillation process and are provided to
B2B customers in various industries. The logistics company
Vectura AS provides logistics services in the Norwegian wine
and spirits market.
Anora’s integrated operating model creates significant
economies of scale in sourcing, production and distribution,
and allows the company to take advantage of its shared
operations – such as consumer research, innovation,
product development and overall knowhow – and use its
centralised support functions efficiently.
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Market environment
Sales channel dimensions have mostly turned back to
normal after Covid-19, with on-trade, travel retail and
border-trade channels regaining their volumes, while
monopoly sales have shown an expected decline. In
the monopoly channels the sales of spirits as well as wine
declined. There are also some signs that overall sales have
started to slow down due to inflation and increased costs of
living.
In Anora Industrial, uncertainty was high both in
industrial products and services. Markets for grain, raw
materials, logistics, and energy tightened in the second
half of the year, driving extraordinary price increases for
most supplies. The demand for starch was steady, driven
by good demand from paper and board manufacturing.
Towards the end of the year signs of a softening market
demand and customers reacting on high costs on energy,
transport and materials was seen in some areas both
in starch and technical ethanol. Due to the continued
increased demand on global markets and increasing raw
material and energy prices, purchased ethanol availability
was very tight and prices continued in an increasing trend.
Volumes in industrial services remained relatively stable
despite the impacts from the Ukrainian war and challenging
environment in general.
In the supply chain, there was still some uncertainty
caused by Covid-19 related to the health and safety of
employees at Anora’s production and logistics sites.
In addition, Covid-19 and the war in Ukraine caused
uncertainty in the availability of raw materials such as bulk
wine, partner goods, and dry goods.
Key events
Acquisition of Globus Wine
In June, Anora announced the acquisition of Globus Wine
A/S. Globus Wine is the leading wine company in Denmark
and has successfully built a wine business with top-selling
own wine brands. It has the largest capacity in Northern
Europe to offer filling services to international wineries and
wine importers. As a continuation to the merger in 2021,
the acquisition strengthens Anora’s position as the leading
wine supplier in the Nordics.
Globus Wine’s net sales in 2021 were DKK 549.6 million
and adjusted EBITDA was DKK 66.2 million. The purchase
price was DKK 596.4 million (EUR 80 million) which equalled
an enterprise value of DKK 669.6 million (EUR 90 million).
The purchase price was paid in cash and financed with debt.
The agreement to acquire 100% of Globus Wine A/S was
signed on 22 June 2022 and the transaction was closed on
1 July 2022. Globus Wine has been consolidated to Anora
Group as of 1 July 2022.
Acquisition of 100% share of Von Elk Company
Anora acquired the remaining shares from the founders
of Von Elk Company known for Glöet, the most popular
sparkling glögg in the Nordics. As of 1 September 2022, Anora
owns 100% of the shares in the Finnish Von Elk Company
(previously 20%).
Investment in ISH
Anora has made an investment of EUR 5 million in ISH,
the Danish scale-up company in non-alcoholic beverages,
making Anora a minority shareholder in the company.
The investment will enable ISH to further accelerate its
international growth. Anora will be distributing ISH’s
alcohol-free products in Norway, Sweden, and Finland. The
agreement between Anora and ISH was completed on 20
July 2022.
Suspending sales to Russia
When Russia started the war against Ukraine in February,
Anora reacted quickly and suspended all exports to Russia,
and in its Baltic operations purchases of raw materials
from Russia and Belarus were also suspended. The
discontinuation of exports to Russia did not have a material
impact on Group net sales, but due to the war, global supply
chain disruptions and constraints in the supply of grain
further increased.
Anora made a donation of 50,000 euros to the Ukrainian
Red Cross to support the Ukrainian people.
Post-merger integration
The merger integration work has progressed according to
plan and is on schedule. The run-rate of annualised net
synergies at the end of September was EUR 5.2 million,
including the annual impact of EUR 4.6 million from
the divestment of brands. The total annual EBITDA net
synergy target was EUR 8–10 million, 80% of which was
expected to be realised within two years. In 2021–2022
post-closing integration costs are estimated to be EUR
7–9 million. The remaining synergies will be realized as
an integrated part of the new efficiency program announced
at the CMD in November and will not be reported on
separately.
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Integration initiatives have included among others
following:
• Reorganisation of the wine business under
an entrepreneurial driven multi-company structure. Fully
dedicated wine import companies under Vingruppen
were established in Finland, Sweden and Norway.
• Portfolio strategy work for the combined spirits portfolio
including own and partner brands.
• Implementation of a joint on-trade excellence
programme between Wine, Spirits and International.
• Combination of former Arcus and former Altia spirits
businesses in Denmark under one business unit. The
distribution of former Altia’s spirit brands by Conaxess
Trade Beverages was ended by the end of 2022.
• Insourcing of third-party logistics operations in Finland,
Sweden and Norway completed successfully by the end of
Q3 2022.
Successful innovations
Innovations are a key growth driver for Anora. The examples
below present the success that Anora’s brands have reaped
during 2022:
• Several novelties were launched under the Koskenkorva
brand to further build the brand’s success. Koskenkorva
was also awarded several medals at the Vodka and
Liqueur masters competitions.
• Anora was awarded the Aquavit Producer of the Year title
at the International Spirits Challenge.
• Anora’s own premium gin brand – Skagerrak – won full
distribution in the monopoly in Norway and a gold medal
at the Global Gin Masters competition.
• Anora launched the Carlow Irish whiskey brand in
2022 with two product launches that were immediately
successful at the Global Whiskey Masters competition.
• Anora’s own wine brand Chill Out was relaunched in
all monopoly markets with a new design and revitalised
offering. The new Chill Out has been very well received
with a positive sales start.
New wine partners
Anora’s wine portfolio includes a wide range of premium
wine from around the world. The partner portfolio develops
all the time with new launches or partners to meet consumer
trends and demand. In 2022, Anora actively participated in
monopoly tenders and also began collaboration with Zonin
1821, André Lurton and AdVini.
Events in Industrial
In October, the Koskenkorva Distillery was granted The Year
Award in the Starch Europe’s Safety Programme, which is
given to plants with a full calendar year without lost time
incidents (LTI). The Koskenkorva Distillery received this
award for the second consecutive year, which is a great
statement to the continuous efforts taken at the plant to
improve work safety.
The new heat recovery system at the Koskenkorva
Distillery was taken into test use in Q4 22. The new system
will increase heat circulation within the distillery and
reduces steam power generation by 10%.
Anora signed a wind power supply agreement with
Fortum regarding the Kalax wind farm in Närpiö. The
deal will allow up to half of the electricity used by Anora
at the Koskenkorva Distillery to be replaced by local wind
power. The agreed-upon collaboration will continue through
2023–2025.
The investment in the heat recovery system and
the wind power initiative support Anora’s target to reduce
CO
2
emissions at the Koskenkorva Distillery. In 2022,
the Koskenkorva Distillery’s own bioenergy plant achieved
self-sufficiency rate of 44% (67%). The low rate was caused
by restrained availability of husks following record low
grain crop year limiting plants production. The distillery’s
CO
2
emissions were slightly above previous year, but still
following the strong trend of reduction in CO
2
emissions
since 2014.
To mitigate the impact of the record-high cost of barley,
the Koskenkorva Distillery’s running speed was lowered
during the year. In total, 184.3 (208.5) million kilos of
grain were used at the plant. In 2022, the average barley
market price was 347.8€/tn (210.3€/tn), an increase of 65%.
Historically, over a 5-year period, the average barley market
price has been about 218€/tn.
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NET SALES BY SEGMENT, TOTAL*
EUR million 2022 2021 PF Change %
Wine 316.6 302.9 4.5
Spirits 233.8 224.8 4.0
Industrial 285.5 254.8 12.0
Anora Group net sales, external 702.7 665.0 5.7
COMPARABLE EBITDA BY SEGMENT
EUR million 2022 2021 PF Change %
Wine 23.5 39.5 -40.5
Spirits 37.8 47.4 -20.4
Industrial 17.7 18.0 -1.7
Group allocations -2.8 -4.0
Anora Group 76.1 101.1 -24.6
PF = pro forma
* Total net sales by segment includes external and internal sales
Strategy and financial targets
In November, Anora’s Board of Directors decided on Anora’s
financial targets and adopted the Company’s growth strategy
and sustainability roadmap for 2022–2030. The strategy
was presented at the Capital Markets Day on 29 November
2022.
Anora’s vision is to be the leading Nordic wine and spirits
group delivering growth through sustainability.
Financial targets
Anora’s long-term financial targets are:
• Annual net sales growth of 3–5% including M&As,
majority being organic growth.
• Comparable EBITDA at 16% through increased focus on
margin accretive business and scale benefits on indirect
costs.
• The leverage ratio of net interest-bearing debt /
comparable EBITDA to be below 2.5. Debt levels may
occasionally be exceeded in connection with M&As.
• Anora aims to maintain a stable or increasing dividend
with a dividend payout ratio of 50–70% of the result for
the period.
Strategic pillars
Anora’s growth strategy is founded on core strategic pillars
and has sustainability at its centre:
• Lead category growth across consumer occasions and
channels to cement the position as the wine and spirits
powerhouse in Sweden, Norway and Finland
• Scale our position in Denmark and the Baltics, and
beyond the Nordics, build the world’s leading sustainable
brands from Nordic heroes to international challengers
Long-term sustainability targets
Anora’s long-term sustainability targets are:
• Setting science-based targets: 38% reduction in total
emissions by 2030 and net-zero by 2050
• A carbon-neutral Koskenkorva Distillery by 2026 and all
production by 2030 without carbon compensations
• Increasing the amount of own grain spirit products made
from regeneratively farmed barley to 30%
• By 2030 all our packages are lightweight, 100% recyclable
and of materials from certified sources or from recycled
origins.
Identified efficiency potential
Anora is committed to investing more in its brands to deliver
organic and inorganic growth. To preserve and sustain
margins, Anora will continue to optimise its supply chain
and has identified a significant efficiency potential of EUR
5–10 million.
Research and development activities
The Group’s direct research and development expenditure
amounted to EUR 2.2 (3.5) million and was related to
the product development of alcoholic beverages. The R&D
expenditures represents 0.3% of net sales in 2022 (0.7% in
2021).
Financial review
Net sales, profitability and result for the period
In 2022, Anora Group’s net sales were EUR 702.7 million,
5.7% higher than the 2021 pro forma net sales. Net sales
excluding Globus Wine was EUR 658.5 million.
In 2022, Anora Group’s comparable EBITDA was
EUR 76.1 (71.7) million, or 10.8% (15.0%) of net sales.
EBITDA excluding Globus Wine was EUR 74.7 million.
Pro forma comparable EBITDA for 2021 was EUR 101.1
million, or 15.2% of net sales. A lower gross margin as
well as investments in brand marketing are the main
drivers for the decline in EBITDA. In addition, comparable
EBITDA was negatively affected by an exceptional EUR
3.2 million correction of Globus Wine inventory values
due to an accounting error. The main tools for improving
the profitability in 2023 are cost savings, improving
efficiency, and the price increases.
Result for the period amounted to EUR 18.1 (31.2)
million, and earnings per share were EUR 0.26 (0.67).
The below tables illustrate net sales and comparable
EBITDA by reporting segments. For the segments, the figure
in brackets in the text refer to the pro forma figures for
the comparison year, unless otherwise stated.
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Wine segment
The Wine segment develops, markets and sells partner wines
and Anora’s own wine brands to customers in the Nordic
monopoly markets and in Denmark. Globus Wine is
reported as part of Anora’s Wine segment as of 1 July 2022.
In 2022, total net sales for Wine were EUR 316.6 (302.9)
million with a positive contribution from Globus Wine,
which was able to strengthen its position as a market leader
in Denmark. In the monopoly markets, net sales declined
due to low net sales in the monopolies, partner portfolio
changes and out-of-stock.
The comparable EBITDA was EUR 23.5 (39.5) million,
or 7.4% (13.1%) of net sales. The comparable EBITDA
was negatively impacted by the lower net sales and gross
margin in the monopolies, and the implemented price
increases have only partly offset the high input costs. In
addition, the comparable EBITDA was negatively affected by
an exceptional EUR 3.2 million correction of Globus Wine
inventory values due to an accounting error, without impact
on inventory volumes.
Spirits segment
The Spirits segment consists of the business areas Spirits
and International. The Spirits business area develops,
markets and sells both Anora’s own spirits brands and
partner brands to customers in the Nordic monopoly
markets. The International business area consists of Anora’s
own operations in Estonia, Latvia, Denmark and Germany,
as well as global duty free and travel retail, and exports.
In 2022 the total net sales for Spirits increased by
4.0% to EUR to 233.8 (224.8) million. The growth was
driven by International sales and was mainly related to
the re-opening of duty free and border travel retail after
Covid-19 restrictions, as well as by the strong performance in
the Baltics.
The comparable EBITDA was EUR 37.8 (47.4) million,
or 16.2% (21.1%) of net sales. The decline in comparable
EBITDA was due to higher input costs and operating
expenses, which were only partly offset by price increases.
In addition, the changes in the sales channel mix impacted
the EBITDA negatively. The monopoly market value in 2022
declined close to the 2019 level. The increase in operating
expences was mainly caused by higher advertising and
promotion costs relating to the re-opening of the markets
and to promoting Anora´s presence in new international
markets. A decrease in personnel costs, partly due to synergy
savings, smoothed the impact of the increase of other
expenses.
Industrial segment
The Industrial segment comprises Anora’s industrial
business – industrial products and contract manufacturing,
the logistics company Vectura in Norway and supply chain
operations.
In 2022, the total net sales for Industrial segment
increased by 12.0% to EUR 285.5 (254.8) million. External
net sales increased by 16.0% and amounted to EUR 160.0
(137.9) million. The growth was mainly driven by higher
sales prices following the increase in raw material prices.
The comparable EBITDA was EUR 17.7 (18.0) million,
or 5.9% (7.1%) of net sales. Price increases and proceeds
from the sale of CO
2
emission rights mitigated the pressure
from the significantly higher raw material prices and
manufacturing costs.
Cash flow and balance sheet
In January–December, net cash flow from operations
totalled EUR -0.4 (50.8) million. Cash flow from operations
was negatively impacted by the lower EBITDA and
an increase in working capital, primarily due to a higher
inventory level. Inventory levels were higher than a year ago
due to generally higher levels of safety stocks to mitigate
the consequences of post-Covid global supply chain
disruptions, higher stocking of barley and ethanol, as well
as higher input costs resulting in higher inventory costs per
unit. The receivables sold amounted to EUR 59.4 (81.4)
million at the end of the reporting period.
Gross capital expenditure totalled EUR 10.7 (5.4)
million excluding business acquisitions. During the period,
the capital expenditure was allocated mainly to replacement
investments and to improve work safety and energy
efficiency.
At the end of the year, the Group’s net debt amounted
to EUR 300.9 (126.0) million. The increase in net debt was
due primarily to the acquisition of Globus Wine which was
financed with debt. Cash and cash equivalents amounted to
EUR 91.4 (168.9) million, while the interest-bearing debt
including lease liabilities amounted to EUR 392.3 (295.0)
million. The increase in interest-bearing debt was related
to funding of the Globus Wine acquisition (EUR 85 million)
and increase in IFRS 16 lease liabilities from Globus Wine.
The gearing ratio at the end of the reporting period was
62.5% (24.8%), while the equity ratio was 37.0% (41.2%).
The reported net debt to comparable EBITDA was 4.0
(1.8) times. Anora Group’s liquidity position was strong
throughout the period.
In December 2022 Anora refinanced its loan portfolio
and all existing loans were repaid early. The company
entered into an EUR 410 million term and revolving facilities
agreement. It consists of EUR 260 million term loan and
EUR 150 million revolving credit facilities. The facilities
mature on December 2025 unless those are extended by
optional one plus one year. Anora drew down EUR 210
million from the term loan facility.
At the end of the period, the total in the consolidated
balance sheet was EUR 1 301.3 (1 233.3) million.
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Personnel
On 31 December 2022, Anora Group had 1,251 (1,055)
employees and on average 1,159 (799) employees.
PERSONNEL BY COUNTRY AT THE END OF THE
PERIOD
2022 2021
Finland 414 393
Norway 370 365
Sweden 165 159
Denmark 174 21
Estonia 68 58
Latvia 33 32
France 22 24
Germany 5 3
Total 1 251 1 055
Anora’s values were launched in the autumn 2022. The focus
is on leadership through the values, and onboarding Anora
employees into the values dialogue. Leadership competences
were selected to support recruitment and the use of values in
selection process.
Anora wants to be the forerunner in the industry in
the Nordics as an inclusive workplace that represents
the diversity, equality, and progressiveness of Nordic
culture. The DEI policy and the policy on non-harassment
were updated in 2022.
The Anora Tasting employee survey provides valuable
information on employees’ engagement, leadership, team
performance and well-being. The survey was conducted in
November, followed by review of the results, trainings and
action planning that is consistently followed throughout
the organization. Anora is committed to increasing well-
being of its employees. Therefore, a low threshold, easy
to access psychological wellbeing service was launched
in spring 2022. The Auntie service was available for all
employees in all Anora countries. It supports in change,
leadership, stress, team, remote work, and other acute
situations. More than fifty participants during the first year
received individual support.
Development of remuneration practices is seen as
an integral part of both supporting culture evolvement
and strategy implementation. Anora develops and aligns
its rewarding practices to improve efficiency and equality,
optimize cost, and support employer brand building.
EMPLOYEE BENEFIT EXPENSES
EUR million 2022 2021
Wages and salaries 74.0 52.6
Pension expenses
Defined contribution plans 9.1 7.4
Defined benefit plans 0.0 0.0
Share-based payments 0.6 1.6
Other social expenses 10.1 7.9
Total 93.8 69.6
In Anora, the total wages and salaries of personnel consists
of fixed and variable pay, allowances, short and long-term
incentives, and fringe benefits. The Group has recognised
the total amount of incentives EUR 0.8 million (2021: EUR
4.3 million) in the form of cash bonuses. Employee benefit
expenses include personnel related restructuring costs of
EUR 0.1 million (2021: EUR 0.5 million).
Share-based incentive scheme
The Board of Directors of Anora decided on a new plan
period within the share-based long-term incentive scheme
for the Company’s management and selected key employees.
The scheme comprises a Performance Share Plan (also
“PSP”) for the top management and other key employees and
a Restricted Share Plan (also “RSP”) as a complementary
structure for individually selected key employees in specific
situations.
Performance Share Plan (PSP) 2023–2025
The PSP 2023–2025, commences as of the beginning of
2023 and the potential share rewards thereunder will
be paid during H1 2026. The payment of the rewards is
conditional on the achievement of the performance targets
set by the Board of Directors for the plan.
The performance measures based on which the potential
share reward under PSP 2023–2025 will be paid are
revenue growth, earnings per share (EPS), the relative total
shareholder return of the Company’s share and a measure
based on the Sustainalytics ESG rating. Approximately 54
individuals are eligible for participation in PSP 2023–2025
including the members of Anora Group’s Executive
Management Team.
If the performance targets set for PSP 2023–2025 are
fully achieved, the aggregate maximum number of shares
to be paid based on this plan is approximately 667,000
shares. The estimated aggregate gross value of this plan is
approximately EUR 4.9 million, based on the value of Anora
Group’s share when the Plan was established.
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Restricted Share Plan (RSP) 2023–2025
The RSP 2023–2025 commences as of the beginning of
2023 and the potential share rewards thereunder will be
paid during H1 2026 at the latest. The aggregate maximum
number of shares to be paid based on RSP 2023–2025 is
approximately 67,000 shares. The estimated aggregate gross
value of this Plan is approximately EUR 0.5 million, based
on the value of Anora Group’s share when the Plan was
established.
Other terms
The value of the reward payable to participants based
on the plans is limited by a share price development-
based cutter. Anora Group applies a share ownership
recommendation to the members of the company’s Executive
Management Team. According to this recommendation,
each member of Anora Group’s Executive Management
Team is expected to retain in their ownership at least half of
the shares received under the share-based incentive plans
of the company until the value of their share ownership in
the company corresponds to at least their annual gross base
salary.
Anora Group originally announced the establishment
of the long-term incentive scheme by a stock exchange
release issued on 9 June 2022. The stock exchange release
on the incentive scheme decided by Board of Directors was
issued on 21 December 2022.
Non-financial information
Anora’s vision is to be the leading Nordic wine and
spirits group, delivering growth through sustainability.
Sustainability is integral to Anora’s business strategy
and in 2022, Anora committed to a new and ambitious
sustainability roadmap to 2030 covering its entire value
chain and new areas of its operations. The roadmap is
founded on the decade-long focus on sustainability before
the merger and an extensive materiality assessment,
conducted in 2022. Anora’s sustainability work is built on
the main themes of Planet, People and Product.
This disclosure of non-financial information describes,
in accordance with the Finnish Accounting Act, Anora’s
approach to the management of environmental, social,
employee and human rights matters, as well as topics related
to anti-corruption and -bribery and product quality, safety
and sustainability. For more information about Anora’s
sustainability ambition and work, see Anora’s Sustainability
Report.
Environmental matters
One of the main themes in Anora’s 2030 sustainability
roadmap is Planet. Under this theme, Anora advances its
work related to regenerative farming, environmentally
responsible sourcing, reducing the emissions from its own
operations and value chain, circularity, cautious use of water
resources, climate-smart packaging, as well as biodiversity.
a) Policies and ways of working
Anora manages its approach to environmental matters
through its Quality, Safety and Environment Policy and
through its renewed sustainability roadmap for 2030
where these topics are widely represented. At Anora’s
production plants, particularly in Finland, environmental
impacts are managed through the ISO 14001 Environmental
Management System (EMS). The standards, policies, and
principles relevant to Anora’s environmental work include:
• Code of Conduct
• Quality, Safety and Environment policy
• ISO 14001:2015 Environmental Management System,
covering Anora’s operations in Finland
b) Environmental risks and their management
Environmental risks are assessed regularly as part of Anora
Group’s risk management process and as part of Anora’s ISO
14001 EMS. During the year, in addition to the evaluation in
the Group’s risk management process, Anora also conducted
a separate climate change–related risk and opportunity
assessment. More detailed reporting on this can be found
in the Disclosure on climate-related risks and opportunities
(TCFD) section.
In addition to climate-related risks, other principal
environmental risks include natural disasters, possible
leaks into the soil or waterways (including groundwater
areas), overruns of the waste-water quality limits in Anora’s
environmental permits, and the costs related to maintaining
compliance with increasingly strict environmental
regulations, as well as the fines and sanctions resulting from
any non-compliance with the said regulations.
The risks are managed through various measures,
including the management of Anora’s operations through
the ISO 14001 EMS, regular monitoring of wastewater
quality, ownership of land in groundwater areas and
the monitoring of legislative developments.
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c) Outcome and KPIs
KPI 2022 2021* 2020*
Total fossil emissions and reduction compared to
previous year (scope 1 and 2)
27,144 tCO
2
e
+5.5%
25,737*** tCO
2
e
-3.2%
26,582 tCO
2
e
Regenerative farming: amount of purchased
regeneratively farmed barley: Target to increase the
share of regeneratively farmed barley to 30% of own
grain spirit products by 2030.
56,000 kg 50,000 kg 50,000 kg
Wastewater volume (1,000 m³): Target to reduce
wastewater volume with 20% by 2030, compared to
2021
238** 293 285
Waste recycling and recovery rate (%) Koskenkorva, Rajamäki,
Gjelleråsen and Globus Wine
100%
Koskenkorva, Cognac,
Rajamäki and Tabasalu: 99.5%
Gjelleråsen: Approx 100%
Koskenkorva, Cognac,
Rajamäki and Tabasalu: 99.5%
Gjelleråsen: Approx 100%
Landfill waste (t): zero by 2030 11.57 28.18 28.59
All figures displayed are for annual periods of January-December.
* Figures include former Altia and former Arcus data consolidated
** Excluding Globus Wine
*** Total emissions for 2021 have been reviewed and recalculated with a more extensive
criteria than previously reported
During 2022, Anora completed an accounting of
the emissions in its entire value chain, scopes 1, 2 and 3, and
initiated the process of setting Science Based Targets for its
emissions reductions. Anora is looking to set an approximate
38% emissions reduction target in total (Scope 1, 2, 3)
emissions by 2030 and to being net-zero by 2050. The
exact targets are set after the Science Based Targets
initiative releases the calculation methods for the forest,
land, and agriculture (FLAG) sector. Related to the target
of reducing emissions, one of Anora’s core ambitions is to
have all its own production carbon neutral by 2030 and
the Koskenkorva Distillery already by 2026 – both without
carbon compensations.
Social, employee and human rights matters
The second main theme in Anora’s 2030 sustainability
roadmap is People. Anora aspires to be an inclusive and
safe workplace that represents the diversity, equity and
progressiveness of Nordic culture. Anora aims for zero
accidents and a strong safety culture. Continuous work is
undertaken to ensure that Anora’s value chain is fair and
transparent, to source sustainably and protect human rights.
a) Policies and ways of working
Anora is committed to respecting and promoting human
rights and international labour standards in accordance with
the United Nation’s (UN) Universal Declaration of Human
Rights and the key conventions of the International Labour
Organization (ILO) and expects the same from its suppliers,
partners, and subcontractors.
Anora wants to ensure safe and healthy working
conditions for all its employees and people whose workplace
or work conditions can be affected by the company. Anora’s
work on the area of Diversity, Inclusion and Equity (DEI) is
also an important focus area and in 2022, Anora updated its
DEI policy.
Anora’s human rights work in its supply chain is
governed by the amfori BSCI’s Code of Conduct1 which
Anora has adopted throughout its operations. The values
and principles of the amfori Code of Conduct have a strong
focus on working conditions and human rights. Anora is
a direct member of the amfori BSCI to develop responsible
sourcing.
The standards, policies and principles relevant to social,
employee and human rights matters include:
• Code of Conduct
• Quality, Safety and Environment Policy
• Diversity, Inclusion and Equity Policy
• Non-Harassment Policy
• Anora Policy of Alcohol Consumption for employees
• amfori BSCI Code of Conduct
• Supplier Code of Conduct
• ISO 45001:2018 Occupational Health and Safety
Management System; covering Anora’s operations in
Finland
b) Employee and human rights risks and their
management
The risks are assessed as part of Anora Group’s risk
management. The principal employee risks relate to Anora’s
ability to recruit, develop, motivate, and retain the right
know-how and succeed in daily leadership, the maintenance
of good collaboration practices with employees and their
unions, as well as the occurrence of accidents. To manage
the risks, Anora develops its employer value proposition,
recruitment, and retention, conducts the employee
satisfaction survey on an annual basis, and maintains
frequent collaboration with unions.
Anora’s most relevant human rights risks are related to
Anora’s business relationships and primarily concern labour
and human rights in the wine, spirits, and raw material
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supply chains. Anora’s customers have expectations of
social compliance within supply chains, and any human or
labour right violation by Anora’s suppliers, sub-suppliers or
partners could lead to customers ending purchases of a given
product. Anora manages these risks through the amfori
BSCIs Code of Conduct adopted throughout its operations.
To ensure that all its principles are met, amfori BSCI uses
audits as a compliance method.
Anora’s due diligence process is currently composed of
performing risk mapping of Anora’s supply chain and risk
evaluations of suppliers, using a questionnaire to gather
information about suppliers’ and partners’ sustainability
work, contractual obligations, as well as participation in and
utilisation of the tools offered by amfori BSCI, including
third party audits. Anora has a whistleblowing channel open
to all stakeholders, maintained by an independent third
party.
In Sweden, Anora’s subsidiary Vingruppen employs
a sustainable supply chain guidebook on human rights and
environmental performance which builds on the amfori
BSCI’s Code of Conduct and follows Systembolaget’s
framework for sustainable sourcing. Vingruppen also uses
Systembolaget’s self-assessment questionnaire for wine
producers and growers, managed through the sustainability
platform Worldfavor, to help create traceability throughout
the supply chain to address risks and irregularities identified
in connection with working conditions, human rights, and
environmental work.
c) Outcome and KPIs
In 2022, Anora concentrated on building the organisation
and company culture after the merger in 2021. For example,
a significant highlight of the year was the unveiling of
Anora’s new company values: courage to explore, energy to
inspire and empowering to win. The year was nevertheless
challenging from the People perspective due to the post-
merger state of the company. Anora worked to increase
efforts to support wellbeing at work by offering several
healthcare services. In 2022, Anora conducted its first post-
merger Employee Engagement Survey with a response rate
of 88%. The survey, for example, found that 79% of Anora’s
employees are happy with their direct manager.
With regards to occupational health and safety, Anora’s
goal is to increase the number of safety observations and to
reduce the number of absences caused by accidents. During
the reporting year, Anora focused on improving processes
and unifying safety measurements across the organisation,
as well as training employees on safety topics. However,
the development was not as positive as hoped and, for
example, Anora’s Lost Time Incident Frequency (LTIF) rate
was 7 in 2022 compared to 5 for former Altia and 10.5 for
former Arcus in the previous year. There were no fatal work-
related accidents during the year.
Anti-corruption and -bribery matters
Anora has zero tolerance towards bribery and corruption.
The company is committed to operating fairly and to not
offering improper benefits to any party. Anora also expects
its representatives, consultants, agents, subcontractors,
and other business partners to unconditionally refrain from
corruptive behaviour when performing services for Anora
or on its behalf. Anora does not support, either directly
or indirectly, political parties or organisations. Nor does
the company participate in financing election campaigns of
individual candidates.
a) Policies and ways of working
Anora’s Code of Conduct describes the company’s
commitment to ethical business conduct. Every employee is
familiarised with the company’s Code of Conduct, including
the anti-bribery and corruption activities. Anora has
a whistleblowing channel maintained by an independent
third party, open to all employees and external stakeholders.
All concerns raised, whether through the channel or
through other means, are investigated in accordance with
an established process to ensure accuracy, anonymity, and
fairness.
KPI 2022 2021 2020
Share of purchases from risk countries as identified in amfori
BSCI risk country classification
2%**** 2% 2%
Increase in the number of safety observations: three observations
per person by 2025
2.9**** 2.6* 2.3*
Lost Time Incident Frequency (LTIF): 0 by 2030. 7
5**
10.5***
7**
* In former Altia Industrial
** In former Altia
*** In former Arcus
**** Does not include Globus Wine
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The standards, policies, and principles relevant to anti-
corruption and -bribery matters include:
• Code of Conduct
• Anti-Bribery and Corruption Policy
• Whistleblowing channel
b) Anti-corruption and -bribery risks and their
management
The risks are assessed as part of Anora Group’s risk
management process. The principal risks associated with
anti-corruption and bribery matters include, in addition to
possible fines and penalties, a reputational risk caused by
any act of corruption or bribery, especially related to Anora’s
key persons and business partners. Given that alcohol is
a highly regulated business, obtaining and maintaining
the necessary licenses and permits are associated with
a risk of corruption or bribery, especially in countries high
on the corruption index. Potential non-compliance to
the regulation for the marketing of alcoholic beverages also
poses risks to Anora’s operations. These risks are managed
through contractual obligations, third party due diligence
inspections concerning suppliers and distributors where
necessary, as well as internal training on Anora’s Anti-
Bribery and Corruption Policy.
c) Outcome and KPIs
Anora’s Code of Conduct e-learning training was also
transferred to a new platform and updated during
the reporting period. Anora received no reports of
misconduct through its whistleblowing channel in 2022.
Product quality, safety and sustainability
The third main theme in Anora’s 2030 sustainability
roadmap is Product. Anora’s work focuses on advancing
climate-smart packaging and increasing the share of
sustainable and non- and low-alcoholic products in Anora’s
portfolio. Product quality and safety, as well as a responsible
drinking culture and responsible marketing are also Anora’s
top priorities.
a) Policies and ways of working
Sustainability is incorporated in the strategies of Anora’s
own brands and product development. Anora actively
develops climate-smart packaging, such as Bag-in-Boxes,
pouches, tetras, cans, and PET and rPET bottles, as
alternative to glass bottles. Related to product quality and
safety, the key processes have been defined and the relevant
instructions are maintained as part of Anora’s management
system. Quality indicators, such as customer claims and
the proportion of deviations in production, are monitored
monthly.
The standards, policies and principles relevant to product
quality, safety and sustainability, as well as the marketing
and consumption of Anora’s products include:
• Code of Conduct
• Quality, Safety and Environment Policy
• Marketing, Guidelines for responsible marketing
• ISO 9001:2015 Quality Management System; covering
Anora’s operations in Finland, the Tabasalu plant in
Estonia, and the Gjelleråsen plant in Norway
• FSSC2200 v.5.1 Food Safety Management standard;
covering Anora’s Rajamäki plant in Finland
• ISO /IEC 17025 Testing and calibration laboratories;
covering the laboratory at Gjelleråsen
• Fairtrade certification for Anora Finland and Anora
SwedenFair for Life certification for Anora Finland,
Wennerco and Anora Sweden
• The Koskenkorva Distillery, the Rajamäki alcoholic
beverage plant, trading products at Tabasalu Beverage
plant (deliveries and storage) and the distillery in
Sundsvall and production plant Gjelleråsen are certified
for organic production
KPI 2022 2021 2020
Communication and training on anti-corruption policies* Internal
communications on
anti-corruption policies
done.
New employees have
completed an on-
line course. Internal
communications have
been done.
New employees have
completed an on-
line course. Internal
communications have
been done.
Number of cases of misconduct reported through the whistleblowing
channel**
0 0 0
* Information for former Altia. At former Arcus, anti-corruption issues were included in the onboarding process for new employees.
** Figures for former Altia. The method for reporting grievances differed for former Arcus and the data for 2021 are thus non-conforming. No grievances related to anti-corruption or
bribery incidents were reported via former Arcus’ internal whistleblowing process in 2021.
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b) Product quality, safety and sustainability related
risks and their management
The principal risks related to the quality and safety of
Anora’s products relate to the failure in ensuring the quality
and safety of the raw materials and finished goods through
the supply chain. These can include a failure to comply with
hygiene requirements, a lack of consistency in the quality
of products, any contamination of products, as well as
defects in raw materials or packaging. Such incidents can
lead to product recalls or make the company subject to legal
claims. As the alcohol business is highly regulated, stricter
regulations regarding the marketing and advertising of
alcoholic beverages or their taxation, for example, could
have an impact on the company’s operations.
To manage risks of this type, Anora maintains quality
and food safety in accordance with international standards
and legal requirements. Anora employs modern methods to
ensure the safety of production processes and to eliminate
various microbiological, chemical, and physical hazards.
Quality is monitored continuously during production by
means of line inspections and testing, as well as the analysis
of end products. Instructions and processes are maintained
in view of possible recalls and situations are practised
regularly by way of phantom testing. Applicable legislation
and any developments therein are reviewed regularly.
c) Outcome and KPIs
Disclosure on climate-related risks and
opportunities (TCFD)
Climate change–related risks and opportunities are
considered as part of Anora Group’s risk management
process, but in 2022, the topic was given more focus and
analysed following the recommendations and guidance of
the Task Force on Climate-related Financial Disclosures
(TCFD). During the year, Anora identified climate-related
risks and opportunities in a workshop and will continue to
develop its processes regarding the integration of climate
risk management, as well as TCFD-aligned scenario analyses
and reporting. This is Anora’s first disclosure on the topic
and follows TCFD’s four thematic areas: governance,
strategy, risk management, and metrics and targets.
Governance
Anora’s Board of Directors approves Anora’s sustainability
strategy, the 2030 Sustainability Roadmap, and
significant sustainability investments. The Board oversees
the appropriate sustainability governance within the Group,
such as the ESG risk assessment, including climate-
related issues. The Board is informed about and discusses
sustainability and climate-related issues regularly.
The Audit Committee assists the Board in overseeing
the appropriate sustainability governance within the Group,
including the management of sustainability work and
risks. The Audit Committee and the Board consider
sustainability and climate-related issues also when setting
performance objectives. Anora’s long-term incentive plan
includes objectives related to Anora’s ESG-ratings and
the Koskenkorva Distillery’s CO
2
emissions reductions. The
Board also reviews the key sustainability results and ESG-
ratings quarterly in business reviews.
Anora has assigned sustainability and climate-
related responsibilities to management-level positions.
The Executive Management Team and Senior Vice
Presidents (SVP) are responsible for the implementation
of the sustainability roadmap; discuss targets and ensure
commitment in units; approve actions and targets within
the roadmap and prepare sustainability investments. The
Executive Management Team also monitors climate-related
issues through the risk management process.
Business area leadership teams and SVPs are responsible
for implementing roadmap targets, planning for investments
and bringing the roadmap to the operational plans of their
own business areas.
KPI 2022 2021 2020
Recyclable materials and materials from certified sources
or recycled origin used in Anora’s packaging: 100% by 2030
Glass bottles 34%*
Plastic bottles 21%*
Bag-in-Boxes 29%*
Glass bottles 36%*
Plastic bottles 16%*
Bag-in-Boxes 29%*
Glass bottles 39%*
Plastic bottles 8%*
Bag-in-Boxes 23%*
Share of net sales from no- and low-alcohol products: 5% by 2030 4%** No data No data
* Figures include recycled materials used in packaging, former Altia and former Arcus consolidated
** Scope: own products.
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The sustainability working group is a team formed during
the sustainability roadmap creation process in 2022 and
it includes 10 teams from different business areas. The
group discusses areas of improvement, synergies and better
collaboration and is responsible for the sub-area targets and
actions.
Anora’s Sustainability Director has operational oversight
of the 2030 Sustainability Roadmap implementation,
leads and coordinates reporting and communicating on
sustainability topics and according to relevant regulation.
The Sustainability Director is part of the extended
Executive Management Team and reports to the CEO. The
Sustainability Director introduces and presents climate-
related issues to the Executive Management Team, the Audit
Committee and the Board.
Strategy
Anora has identified climate-related risks in two major
categories, transition risks and physical risks as per
the TCFD guidance. According to the TCFD guidance,
transition risks are risks related to the transition towards
carbon-neutral economy. Physical risks arise from
the physical impacts of climate change and can be divided
into acute or chronic risks.
In its risk assessment, Anora’s focus is on the climate-
related risks and opportunities that are specifically material
for Anora’s operations and which Anora can actively mitigate
(see the tables on the right for risks and opportunities).
CLIMATE-RELATED RISKS
Risk type Sustainability certifications
Legislation and retailer / monopoly
requirements on product sustainability
are increasing with a risk of quick shifts
in procurement demands. Anora needs
to ensure that its production, partners
and suppliers in wine and farming are
managing climate issues, in line with
the climate standards or certifications
relevant to the markets Anora operates in.
Changing weather conditions
Sudden changes and unpredictable
weather (frost, hailstorms, drought, forest
fires etc.) are already causing risks for the
harvest of Anora’s raw materials every
year, especially for the wine crops. Anora
has operations in different geographical
locations where weather conditions also
differ.
Rising average temperatures
In the long term, continuously rising
average temperature and, for example,
the consequent droughts during peak
growth season can affect both the quality
and yield of barley and potato in the
Nordics.
Category Transition risk – market & reputation Physical risk – acute Physical risk – chronic
Time horizon Short / medium / long Short / medium Short / medium / long
Impact level Moderate Moderate Moderate
Response examples Encouraging partners and suppliers to
manage climate-related risks, validating
performance, and adopting harmonised
climate / environmental certification
relevant to Anora´s markets.
Preparing for changes affecting the
material supply and working proactively
to predict changes in global wine and
grain supply chains.
Securing new origins and grape varieties
to ultimately ensure great wines and
spirits in the long run.
Optimizing barley varieties for better
weather robustness.
CLIMATE-RELATED OPPORTUNITIES
Opportunity type Near market filling
A global shift to a low-carbon economy
may impact competitiveness and
prices as the demand for fossil-free
energy sources increases. Near market
filling enables both optimising logistics
emissions and using locally preferred
sustainable packaging options. Logistics
/ transportations depends on fossil-fuels
but offers many fossil-free alternatives.
Ethanol production in Koskenkorva
Transitioning towards CO-free
production in Koskenkorva is an
opportunity as it allows more control
and access to a full sustainable value
chain, including the distillation operations
and local grain sourcing in ethanol
production.
Regenerative farming
A big part of Anora’s production
and emissions come from the raw
material purchases of barley and
wine. Regenerative farming provides
opportunities in mitigating emissions,
conserving biodiversity, and securing a
better supply.
Category Transition – resource efficiency / market Transition – resource efficiency Transition – products & services
Time horizon Short / medium Medium Medium / long
Impact level Moderate Moderate Moderate
Response examples Not shipping wine in glass bottles from
the country of origin, but shipping bulk
liquids to be filled close to the end
markets and using tailored sustainable
packaging options to meet customer
requirements.
Using low-emission transport forms for
the bulk-wine, such as biodiesel trains.
Investing in energy saving and circulation
technologies, using fossil-free energy
sources for electricity and steam,
securing traceability of the grain, and
innovating new sustainable distillates,
e.g., from regenerative barley.
Providing training and offering contract
incentives for farmers.
Co-operating with the BSAG (Baltic
Sea Action Group) and local farming
consultants and authorities.
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In addition to the risks described in the tables, Anora has
also identified other climate-related risks that can influence
Anora’s business. Anora has identified transition risks, such
as a failure to leverage opportunities related to the green
transition, a failure to anticipate regulatory changes
regarding packaging, energy or sustainability reporting,
unsuccessful investments related to the decarbonisation
of operations, increased cost of raw materials due to their
decreased supply and lower quality, and reputational
damage due to unsustainable or unethical practices in
the supply chain.
Other identified physical risks include risks related to
the insecurity and volatility of the supply of green energy,
pandemic, contamination, new species or viruses affecting
the supply chain and harvest of raw materials, and changes
in the taste profiles of wine. One of the identified global
physical risks related to climate change is the risk related
to the water management and water availability especially
in the industries and communities in Anora’s wine supply
chain. Water related risks in our own operations are
discussed in general risk management process and climate
change does not have acute material risk to the water
availability and quality in Nordic countries.
Other identified opportunities are related to more
climate-friendly logistics options in e.g., biofuel and
electric trucks, solar panels, extensions of growing areas,
Koskenkorva Vodka Climate Action, climate-smart
packaging, and competitive advantage from sustainability.
Anora’s vision is to be the forerunner in sustainability
which is why climate-related actions are one of the key areas
in its strategy. Anora is, for example, pursuing opportunities
through acquisitions, such as that of Globus Wine in the area
of near-market filling. Anora also sees that changes in
consumer preferences can have a strategic meaning and
financial impacts to Anora. For example, regenerative
farming to produce more sustainable products is one key
focus areas in Anora’s strategy.
Risk management
Climate-related risk assessment is one part of Anora’s
overall risk management process. Anora started to evaluate
climate-related risks and opportunities more thoroughly
in 2022 by conducting an interactive TCFD workshop to
introduce the topic to key personnel and identify climate-
related risks and opportunities. Anora additionally considers
climate-related issues in its carbon neutrality investment
plan for the Koskenkorva Distillery. The climate-related risk
assessment will be better integrated into Anora’s overall
risk management. The climate-related risks will be assessed
regularly, ownership will be updated, prioritizations will be
made, and mitigation actions discussed.
As part of the climate risk and opportunity assessment
during 2022, the identified climate-related risks were
assessed with various criteria such as the specificity to
Anora, time horizon and impact level. Anora defines time
horizons for climate-risks as follows: short time horizon
1–2 years, medium time horizon 3–5 years and long-term
time horizon over 5 years. The time horizons are aligned
with Anora’s overall risk management. To note, many of
the identified climate-related risks are potentially arising in
several time horizons. The size and scope of the risks will be
assessed also in overall risk management process.
Anora classifies climate-related risks in accordance with
TCFD’s recommendations, and divides climate-related risks
into two main categories: transition – and physical risks.
Anora’s existing risk classification process is based on ERM
and ISO31000, and the climate-related risk classifications
and terminology are further guided by the TCFD
recommendations. The terminology related to the impact
and time horizon is aligned with the overall terminology
used in Anora’s risk management process. With climate-
related risks, the impact is described verbally, not yet on e.g.,
monetary terms.
Anora is working to develop its risk identification and
assessment processes further and to integrate climate-
related risks into general risk management system.
Currently, the climate-related risks are to some extent
treated as a part of the overall risk management process. The
separately conducted climate risk assessment in 2022 also
serves in developing Anora’s processes further.
Metrics and targets
Anora’s climate-related metrics and targets are based on
Anora’s sustainability roadmap for 2030. Anora measures
for example its water, energy, and waste management, as
well as its greenhouse gas emissions. Anora has calculated
its scope 1–3 emissions for the first time with 2021 data,
forming a baseline for the future calculations and is
committed to setting science-based targets in 2023. Anora
has already incorporated sustainability in its remuneration
policy, measured by the Koskenkorva emissions reductions.
In Anora’s new long-term incentive plan, a measure based
on the Sustainalytics ESG-rating is included.
Anora’s key forward-looking climate-related targets
are that its own production will be carbon neutral by 2030
and the Koskenkorva Distillery already by 2026, without
compensations.
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Disclosure according to the EU
Taxonomy Regulation
In order to reach EU’s ambitious climate and environmental
targets, the European Parliament and Council introduced
a framework, the EU Taxonomy, which became
the Taxonomy Regulation (EU) 2020/852 in 2020.
The Taxonomy aims to provide a clear definition for
environmentally sustainable economic activities and thus,
direct capital into the green transition. The extensive piece
of legislation is evolving and will eventually include detailed
criteria for six environmental objectives related to, for
example, climate change and the circular economy. In its
current form, the Taxonomy specifies economic activities
and their more detailed technical screening criteria for two
climate-related objectives: climate change mitigation and
adaptation.
According to the regulation, non-financial undertakings
are required to disclose information about the Taxonomy-
eligibility and alignment of their activities, including
the eligible and aligned share of their turnover, CapEx and
OpEx for the reporting year 2022 as well as an assessment
of compliance with minimum social safeguards on the level
of the Group. For the reporting year 2022, Anora undertook
an assessment of the Taxonomy-eligibility and alignment of
its entire business, and the results are presented as part of
this disclosure.
Accounting principles
Anora’s consolidated financial statements are prepared
in accordance with IFRS as adopted by the European
Union and all required key performance indicators under
the Taxonomy Regulation are calculated using the financial
information presented in the group consolidated financial
statements 2022. The taxonomy-eligible parts (numerators)
of the key performance indicators are based on group
interpretations of definitions in the Disclosures Delegated
Act. Anora chose to voluntarily report its taxonomy-
eligibility against the remaining four environmental
targets based on reports containing the proposed activities
and screening criteria to give a fuller picture of Anora’s
taxonomy-eligibility profile to investors. The voluntary
elements of this report are clearly marked in the text and
tables below.
Assessment of compliance with the Taxonomy
Regulation (EU) 2020/852
Anora is a leading Nordic player in the production, import,
sale and distribution of wine and spirits. Anora’s business
operations also include industrial operations in distillation,
bottling and logistics services as well as the production of
technical ethanol products, neutral potable ethanol, feed
components and barley starch. As part of its Taxonomy-
assessment, Anora evaluated all its business segments
and activities against the activity descriptions and
technical criteria of relevant economic activities listed in
the EU Taxonomy Climate Delegated Act and voluntarily
against the Platform on Sustainable Finance’s report with
recommendations on technical screening criteria for the four
remaining environmental objectives of the EU taxonomy,
as well as voluntarily against the report with supplementary
advice on methodology and technical screening criteria
for the climate and environmental objectives of the EU
Taxonomy. Anora continues to monitor the developments
in the Taxonomy Regulation, its interpretations and best
practice applications, and will assess potential adjustments
in the Group’s financial monitoring practices.
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Based on this assessment, the following taxonomy-eligible
activities were identified:
• 4.24 Production of heat/cool from bioenergy
- Approximately 40% of the sold heat in Koskenkorva is
generated using agricultural biomass (mainly barley
and oats husks) as its input. Currently there is lacking
information of the agricultural biodiversity conditions
of the biomass origins as required by the technical
criteria of the taxonomy. The lack of information leads
to non-alignment with the taxonomy.
• 6.6. Freight transport services by road
- Anora has evaluated the percentage share of its
outbound logistics services carried out with a vehicle
fleet that meets the EURO VI emissions standard
(Approximately 78% of total utilised fleet) on
a cost estimate-basis. The vehicles do not yet fulfil
the criteria for ‘zero-emission heavy-duty vehicles’
or ‘low-emission heavy-duty vehicles’ as required by
the criteria for taxonomy-alignment.
• 7.3. Installation, maintenance and repair of energy
efficiency equipment
- Many individual installations of HVAC equipment,
energy efficient lighting systems and additions
to insulation to existing envelope components
of buildings are recognized as taxonomy-eligible
expenditure. Information regarding the individual
components in accordance with Regulation (EU)
2017/1369, a formal climate risk assessments and
assessment of use of chemicals in the installed
equipment as required in the Climate Delegated Act is
currently missing thus leading to non-alignment with
the taxonomy.
• 7.4. Installation, maintenance and repair of charging
stations for electric vehicles in buildings (and parking
spaces attached to buildings)
- Expenditure targeted to electric car power
supply construction at Tabasalu plant is
considered Taxonomy-eligible. As a formal
climate risk assessment for the equipment is
missing, the expenditure is not yet considered
Taxonomy-aligned.
• (VOLUNTARY ELIGIBILITY REPORTING) Manufacture
of chemicals
- Includes the ethanol produced at the Koskenkorva
plant that is sold to customers, approximately 30% of
total output.
• (VOLUNTARY ELIGIBILITY REPORTING) Manufacture
of food products and beverages
- Includes Anora’s spirits production, non-alcoholic
beverages, mulled and mixed wine production and
the entire starch production.
Companies are required to describe how double counting
has been avoided when shares of the economic figures were
allocated to the activities assessed to be Taxonomy-eligible.
The activities listed above correspond well with income and
cost centres recognised in the accounting of the different
business segments and thus the figures can be accurately
allocated based on the assumptions above.
Compliance with Minimum Safeguards
The Taxonomy Regulation refers to Minimum safeguards
as the procedures implemented by an undertaking to
ensure the alignment with a) the OECD Guidelines for
Multinational Enterprises, b) the UN Guiding Principles
on Business and Human Rights c) the principles and rights
set out in the eight fundamental conventions identified in
the Declaration of the International Labour Organisation
on Fundamental Principles and Rights at Work and d)
the International Bill of Human Rights.
The Platform on Sustainable Finance, which is the working
group responsible for preparing the technical details and
criteria under the Taxonomy Regulation, published in October
2022 the Final Report on Minimum Safeguards, which
stipulates the suggested current compliance criteria. In practice,
the undertaking needs to demonstrate that its own operations,
the operations of significant business partners and its supply
chain are covered by adequate procedures to avoid adverse
impacts and mitigate risks connected to a) human rights and
working conditions (as stipulated by the UN General Principles
and OECD, b) corruption and bribery, c) ensuring fair
competition and d) taxation matters.
Anora had no court convictions or serious infringements
regarding the topics above during 2022. Anora’s existing
governance practices and policies are designed to avoid adverse
impacts stemming from materialisation of different kinds of
risks, including social matters (see more in the section on Social,
employee and human rights matters). Anora is, for example,
a member of the amfori BSCI which conducts supply chain
oversight in a number of countries regarding social adverse
impacts. However, Anora has not yet conducted a formal due
diligence procedure which would follow all the six steps of
the UN Guiding Principles on Business and Human Rights
and the OECD Guidelines for Multinational Enterprises which
would cover its own operations, relevant business relationships
and supply chain. As an element of a broader process to unify
the due diligence processes within the different subsidiaries of
the Group, Anora is conducting an analysis of which elements
of the required due diligence procedures need to be introduced
to comply with the Minimum Safeguards requirements in
the future. Moreover, Anora follows closely the development of
requirements under other relevant EU legislation in the field,
namely the Corporate Sustainability Due Diligence Directive
and the Corporate Sustainability Reporting Directive, which are
expected to stipulate more robustly the future EU requirements
for sustainability due diligence procedures.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
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Annual Report 2022
TAXONOMY-ELIGIBLE AND -ALIGNED TURNOVER
Substantial contribution criteria DNSH criteria Taxonomy-aligned
share of turnover
Economic activities Codes(s)
Absolute
turnover
Share of
turnover
Climate
change
mitigation
Climate
change
adaptation
Water
and marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaptation
Water
and marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
2022 2021 Category
MEUR % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E/T
TAXONOMY-ELIGIBLE ACTIVIES
Taxonomy-aligned activities
Turnover of Taxonomy-aligned
activities
N/A 0 0.0% 0% N/A
Taxonomy-non aligned activities
Production of heat/cool from
bionenergy
4.24 0.6 0.1%
Freight transport services by road 6.6 8.4 1.2%
Manufacture of chemicals V* 12.5 1.8%
Manufacture of food products and
beverages
V* 286.2 40.7%
Turnover of Taxonomy-non-aligned
activities
307.8 43.8%
Total Taxonomy-eligible activities** 307.8 43.8% 0% N/A
TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities**
394.9 56.2%
Total Taxonomy-eligible
and non-eligible turnover
702.7 100.0%
* V=Voluntary eligibility reporting
** If excluding voluntary eligibility reporting, Anora's share of Taxonomy-eligible turnover regarding the objectives of climate change mitigation and adaptation is 1,29%
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
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Annual Report 2022
TAXONOMY-ELIGIBLE AND -ALIGNED CAPITAL EXPENDITURE
Substantial contribution criteria DNSH criteria Taxonomy-aligned
share of CapEx
Economic activities Codes(s)
Absolute
CapEx
Share of
CapEx
Climate
change
mitigation
Climate
change
adaptation
Water
and marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaptation
Water
and marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
2022 2021 Category
MEUR % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E/T
TAXONOMY-ELIGIBLE ACTIVITIES
Taxonomy-aligned activities
CapEx of Taxonomy-aligned
activities
N/A 0 0.0% 0% N/A
Taxonomy-non-aligned activities
Installation, maintenance and
repair of energy efficiency
equipment
7.3 0.4 0.6%
Installation, maintenance and
repair of charging stations for
electric vehicles in buildings
(and parking spaces attached to
buildings)
7.4 0.0 0.0%
Manufacture of chemicals V* 0.0 0.0%
Manufacture of food products and
beverages
V* 2.3 3.0%
CapEx of Taxonomy-non-aligned
activities
2.7 3.6%
Total Taxonomy-eligible activities** 2.7 3.6% 0% N/A
TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible
activities**
71.8 96.4%
Total Taxonomy-eligible and non-
eligible CapEx
74.5 100.0%
* V=Voluntary eligibility reporting
** If excluding voluntary eligibility reporting, Anora's share of Taxonomy-eligible CapEx regarding the objectives of climate change mitigation and adaptation is 0,56%
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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Annual Report 2022
TAXONOMY-ELIGIBLE AND -ALIGNED OPERATING EXPENDITURE
Substantial contribution criteria DNSH criteria Taxonomy-aligned
share of OpEx
Economic activities Codes(s)
Absolute
OpEx
Share of
OpEx
Climate
change
mitigation
Climate
change
adaptation
Water
and marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaptation
Water
and marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
2022 2021 Category
MEUR % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E/T
TAXONOMY-ELIGIBLE ACTIVITIES
Taxonomy-aligned activities
OpEx of Taxonomy-aligned
activities
N/A 0 0.0% 0% N/A
Taxonomy-non-aligned activities
Manufacture of food products and
beverages
V* 7.8 46.8%
OpEx of Taxonomy-non-aligned
activities
7.8 46.8%
Total Taxonomy-eligible activities** 7.8 46.8% 0% N/A
TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible
activities**
8.9 53.2%
Total Taxonomy-eligible and non-
eligible OpEx
16.8 100.0%
* V=Voluntary eligibility reporting
** If excluding voluntary eligibility reporting, Anora's share of Taxonomy-eligible OpEx regarding the objectives of climate change mitigation and adaptation is 0,0%
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
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SUSTAINABILITY
42
Annual Report 2022
Contextual information about Turnover KPI
Anora has calculated turnover, as defined in the Disclosures
Delegated Act, based on the same accounting that applies
for revenue under the IFRS covering amounts derived from
the sale of products and services as agreed in customer
contracts. Anora’s Taxonomy-eligible turnover (the numerator
of the turnover KPI) was determined by estimating the share
of turnover from activities assessed to be Taxonomy-eligible
as described above. The majority of taxonomy-eligible
turnover stems from voluntarily reported taxonomy-
eligible activities, mostly corresponding to Anora’s beverage
production (including non-alcoholic). Excluding the voluntarily
reporting, taxonomy-eligible turnover is significantly lower,
reflecting the fact that most of Anora’s business do not match
the economic activities with substantial contribution potential
to climate change targets under the Taxonomy regulation. For
more information on Anora’s principles for defining net sales,
see section Financial Statements note 1.1.
Contextual information about CapEx KPI
Anora has included in its CapEx, as defined in the Disclosures
Delegated Act, additions to tangible and intangible assets
before depreciation, impairment, amortisation and excluding
fair value changes during the financial year. For more
information on Anora’s principles for defining capital
expenditure (the denominator of the turnover KPI), see
section Financial Statements note 2.1 and 2.2. The Taxonomy-
eligibility of investments was determined by assessing if
the investment was targeted towards a taxonomy-eligible
activity or based on the purchase of output from other
companies’ Taxonomy-eligible activities, as described above.
Taxonomy-eligible CapEx investments correspond
with additions to tangible assets in form energy efficiency
equipment of buildings and installation of charging stations
for electric vehicles. The voluntarily reported eligible CapEx
investments are mostly additions to Anora’s tangible
production plant assets.
Contextual information about OpEx KPI
Certain non-capitalised expenditure as defined in
the Disclosures Delegated Act, has been identified as part
of the voluntary eligibility reporting as repair, renovation,
servicing and maintenance of plants and machinery used for
the production of beverages (including non-alcoholic). No
equivalent operating expenditure corresponding to eligible
activities under the Climate Delegated Act were recognized.
Governance
Anora complies with the Finnish Corporate Governance
Code. The detailed information about Anora’s Corporate
Governance Principles, as approved by Anora’s Board of
Directors, is available on Anora’s website: anora.com/en/
investors/governance. Separate Corporate Governance and
Remuneration Statements for 2022 will be published during
week 12.
Annual General Meeting 2022
Anora Group Plc’s Annual General Meeting (AGM) was
held in Helsinki on 11 May 2022. The shareholders and
their proxy representatives could only participate in
the meeting and exercise their shareholder’s rights by voting
in advance as well as by submitting counterproposals and
asking questions in advance, without attendance in person
at the meeting venue. The AGM adopted the financial
statements and discharged the members of the Board of
Directors and the CEO from liability for the financial year
2021. The AGM also adopted the Remuneration Report of
the governing bodies.
Auditor
The AGM re-elected PricewaterhouseCoopers Oy as
the company’s auditor for a term that ends at the close of
the next AGM. PricewaterhouseCoopers Oy, with Authorized
Public Accountant Ylva Eriksson continuing as the auditor in
charge.
Dividend distribution
The AGM approved the proposal by the Board of Directors to
pay a dividend of EUR 0.45 per share for the financial year
2021. The dividend was paid on 20 May 2022.
Board of Directors
In accordance with the proposal by the Shareholders’
Nomination Board, the AGM elected eight members to
the Board of Directors for a term expiring at end of the next
Annual General Meeting. In addition to the Board members
elected by the AGM, Anora’s employees have, in accordance
with the agreement on employee participation between
Anora and the special negotiating body of the employees,
elected two members and their deputies to the Board of
Directors for a term expiring at the end of the 2024 Annual
General Meeting.
As at the end of 2022, the members of the Board of
Directors were Kirsten Ægidius, Ingeborg Flønes, Michael
Holm Johansen, (Chairperson), Christer Kjos, Annareetta
Lumme-Timonen, Jyrki Mäki-Kala, Torsten Steenholt,
Sanna Suvanto-Harsaae (Vice Chairperson), Arne Larsen
(Elected Employee Member), and Jussi Mikkola (Elected
Employee member).
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
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Annual Report 2022
Board Committees as at the end of 2022
In the Board’s organisational meeting after the AGM,
the following members were appointed to the Board’s
committees:
• Audit Committee (permanent): Jyrki Mäki-Kala
(Chairperson), Christer Kjos, Annareetta Lumme-
Timonen and Sanna Suvanto-Harsaae
• Human Resources Committee (permanent): Michael
Holm Johansen (Chairperson), Kirsten Ægidius,
Ingeborg Flønes and Torsten Steenholt
• Integration Committee (temporary): Michael Holm
Johansen (Chairperson) and Sanna Suvanto-Harsaae.
Board remuneration
The remuneration of the Board members elected by
the AGM consists of annual fees as follows:
• EUR 60,000, Chairperson
• EUR 45,000, Vice Chairperson
• EUR 30,000, member.
In addition to these fees, the following annual fees are paid
to Board members elected by the AGM who are appointed
by the Board as members of the Board’s permanent and
temporary Committees:
Audit Committee:
• EUR 10,000, Chairperson
• EUR 5,000, member
Human Resources Committee:
• EUR 8,000, Chairperson
• EUR 4,000, member
Integration Committee (temporary):
• EUR 10,000, Chairperson
• EUR 5,000, member.
In addition to these fees, the Board members elected by
the AGM receive a meeting fee for the Board of Directors and
Board Committee meetings of EUR 600 per meeting and
EUR 1,200 per meeting for members travelling to a meeting
outside her/his country of residence. Travel expenses are
reimbursed in accordance with the company’s travel policy.
The AGM decided that the Board members elected by
the AGM may choose to receive his/her annual fees in cash
or shares in the company, or a combination thereof. The
Shareholders’ Nomination Board has recommended that
the Board members elected by the Annual General Meeting
accumulate a shareholding in Anora that exceeds his/her
one-time annual remuneration.
Authorisation of the Board of Directors to resolve
on the repurchase of the company’s own shares
The AGM authorised the Board of Directors to resolve on
the repurchase of up to 6,755,362 shares in the company in
aggregate, which corresponds to approximately 10.0 percent
of all the company’s shares. The shares may be repurchased
for the purpose of improving the company’s capital
structure, to finance or carry out corporate acquisitions
or other arrangements, for incentive arrangements and
remuneration schemes or to be retained by the company as
treasury shares, transferred, cancelled or for other purposes
resolved by the Board of Directors. The authorisation is valid
until the close of the next Annual General Meeting, however,
no longer than until 30 June 2023. For further information
on this authorisation, please visit our website.
Authorisation of the Board of Directors to resolve
on the issuance of shares for the purposes of
financing or carrying out corporate acquisitions
or other arrangements
The AGM also authorised the Board of Directors to resolve
on the issuance of shares in one or several tranches, against
or without consideration. The Board of Directors may
resolve to issue either new shares or issue treasury shares
held by the company. The issuance of shares may be carried
out in deviation from the shareholders’ pre-emptive rights
(directed issue). The number of shares to be issued based
on this authorisation shall not exceed 6,755,362 shares in
aggregate, which corresponds to approximately 10.0 percent
of all of the company’s shares at the time of the proposal.
The authorisation may be used to improve the company’s
capital structure, to finance or carry out corporate
acquisitions or other arrangements or for other purposes
resolved by the Board of Directors. The authorisation is
valid until the close of the next Annual General Meeting,
however, no longer than until 30 June 2023. For further
information on this authorisation, please visit our website.
Authorisation of the Board of Directors to resolve
on the issuance of shares for remuneration
purposes
The AGM authorised the Board of Directors to resolve on
the issuance of shares in one or several tranches, against or
without consideration to be used for incentive arrangements
and remuneration schemes purposes. The Board of Directors
may resolve to issue either new shares or issue treasury
shares held by the company. The issuance of shares may be
carried out in deviation from the shareholders’ pre-emptive
rights (directed issue). The number of shares to be issued
based on this authorisation shall not exceed 1,351,072
shares in aggregate, which corresponds to approximately
2.0 percent of all of the company’s shares. The authorisation
is valid until the close of the next Annual General Meeting,
however, no longer than until 30 June 2023. For further
information on this authorisation, please visit our website.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
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Annual Report 2022
Shareholders’ Nomination
Board as at the end of 2022
The members of the Shareholders Nomination Board
represent Anora’s three largest shareholders. The
shareholders have appointed the following members:
• Stein Erik Hagen, Canica AS, Chairman of
the Shareholders’ Nomination Board
• Petter Söderström, Solidium Oy
• Anne Lise E. Gryte, Geveran Trading Co. Limited
In addition, Michael Holm Johansen and Sanna Suvanto-
Harsaae, Chairman and Vice Chairman of Anora’s Board
of Directors, respectively, act as expert members in
the Nomination Board.
Chief Executive Officer and Group Management
Members of Anora’s Executive Management Team as at 31
December 2022 were:
• Pekka Tennilä, CEO
• Sigmund Toth, CFO
• Janne Halttunen, SVP, Wine
• Henrik Bodekaer Thomsen, SVP, Spirits
• Kirsi Puntila, SVP, International
• Hannu Tuominen, SVP, Anora Industrial
• Kirsi Lehtola, SVP, Chief HR Officer (CHRO).
Shares and shareholders
Anora’s shares are listed on the Nasdaq Helsinki. All shares
carry one vote and have equal voting rights. The trading
code of the shares is “ANORA”, and the ISIN code is
FI4000292438.
SHARE INFORMATION
2022 2021 2020
Number of shares issued 67 553 624 67 553 624 36 140 485
Share capital, EUR 61 500 000 61 500 000 60 480 378
Earnings per share, EUR 0.26 0.67 0.49
Dividend per share, EUR 0.22* 0.45 0.75**
Share performance, Nasdaq Helsinki
Closing price on the last day of trading, EUR 7.36 10.86 9.98
Highest price, EUR 11.04 12.00 10.40
Lowest price, EUR 6.62 9.62 7.01
Volume 13 082 762 13 204 788 10 559 865
Market capitalisation, EUR million 497.2 733.6 360.7
* Proposal by the Board of Directors
** Dividend for 2020 includes a dividend for the financial year 2020 of EUR 0.35 per share
and an extra dividend of EUR 0.40 per share.
Illustration of Anora's ownership
structure 31 Dec 2022*
0.3%
33.6%
19.7%
4.6%
19.4%
22.4%
Canica AS
Solidium Oy
Geveran Trading Co. Limited
Households
Other institutions
Rest of the world
Canica AS
Solidium Oy
Geveran Trading
Co. Limited
Households
Other institutions
Rest of the world
* The chart provides an illustration of Anora’s ownership structure including the largest
shareholders based on information provided to the company. In the Euroclear Finland data,
the shareholdings of Canica AS and Geveran Trading Co. Limited are included in the
nominee-registered shares.
1
Flagging notifications
No flagging notifications during 2022.
Shareholder structure
At the end of the period, Anora had 28,074 registered
shareholders in Euroclear Finland. The share of nominee-
registered shares was 45.6% (45.7%).
The chart provides an illustration of Anora’s ownership
structure including the largest shareholders based on
information provided to the company. In the Euroclear
Finland data, the shareholdings of Canica AS and Geveran
Trading Co. Limited are included in the nominee-registered
shares.
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LARGEST SHAREHOLDERS REGISTERED IN EUROCLEAR FINLAND 31 DEC 2022
Shareholder Number of shares % of shares
1 Solidium Oy 13 097 481 19.4
2 Varma Mutual Pension Insurance Company 2 031 240 3.0
3 Ilmarinen Mutual Pension Insurance Company 1 290 000 1.9
4 WestStar Oy 1 199 705 1.8
5 Elo Mutual Pension Insurance Company 686 000 1.0
6 Veritas Pension Insurance Company Ltd. 368 279 0.5
7 Savolainen Heikki Antero 261 819 0.4
8 Tapiola Trendi Investment fund 215 772 0.3
9 Itikka osuuskunta 178 745 0.3
10 Mandatum Life Insurance Company Limited 177 738 0.3
Total 19 506 779 28.9
Source for shareholder data: Euroclear Finland
Management’s ownership
On 31 December 2022, the members of the Board of
Directors, the CEO and the members of the Executive
Management Team, including their controlled corporations,
owned a total of 189,450 shares corresponding to 0.28% of
the total number of shares.
Authorisations, option and share-based incentive
programmes
During 2022, Anora had no share option programmes. The
Board of Directors is authorised to resolve on the repurchase
of the company’s own shares and on the issuance of shares
for the purposes of financing or carrying out corporate
acquisitions or other arrangements, or for remuneration
purposes. The authorisations are described in detail under
the Governance chapter. Information about the share-based
incentive programme is given under the Personnel chapter.
OWNERSHIP STRUCTURE BY SECTOR 31 DEC 2022
Sector
Number of
shares % of shares
Public sector 17 522 717 25.9
Financial and insurance corporations 15 580 650 23.1
Households 13 290 300 19.7
Non-financial corporations 3 845 364 5.7
Non-profit institutions 770 782 1.1
Rest of the world 16 543 811 24.5
Total 67 553 624 100.0
Nominee-registered shares 30 789 361 45.6
DISTRIBUTION BY SIZE OF HOLDING 31 DEC 2022
Number of shares
Number of
shareholders
% of
shareholders
Number of
shares % of shares
1–100 10 047 35.8 570 452 0.8
101–500 11 936 42.5 3 114 973 4.6
501–1 000 3 335 11.9 2 546 422 3.8
1 001–5 000 2 376 8.5 4 857 461 7.2
5 001–10 000 220 0.8 1 584 328 2.3
10 001–50 000 119 0.4 2 358 365 3.5
50 001–100 000 16 0.1 1 161 312 1.7
100 001–500 000 17 0.1 3 592 272 5.3
500 001– 8 0.0 47 768 039 70.7
Total 28 074 100.0 67 553 624 100.0
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
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Annual Report 2022
Risks and risk management
Risk management
The Anora Group Risk Management Policy is based on
the Altia legacy risk management policy. The focus of 2022
has been the harmonization of the risk management policies
of Altia and Arcus into a common risk management policy
of Anora. Hence, currently risks are managed according to
the Altia and Arcus legacy risk management policies. Risk
management is aimed at supporting the implementation of
the Group’s strategy, the identification of risks and methods
for reducing the probability and impacts of risks, as well as
ensuring business continuity. Risks may arise from internal
or external events. The Group’s risk management policy has
been approved by the Board of Directors.
The risk management policy describes the goals,
principles and responsibilities of Anora’s risk management
and the related reporting principles. In line with this,
the Executive Management Team supports and coordinates
risk management as part of the Group’s planning and control
processes and reports key risks to the company’s policy.
The management principles of the Group’s most significant
financial risks are described in more detail in the Notes to
the Consolidated Financial Statements, under section 4.1.
Financial risk management. The risk management function
is also responsible for insurance programmes that cover
the entire Group.
The risk management process is based on the ISO 31000
standard and also includes ERM components, as applicable.
The Corporate Governance Statement includes information
on the risk management process.
Most significant risks and uncertainties
For reporting and risk assessment purposes, risks are
categorised into four classes: strategic and business risks,
operational and process-related risks, damage risks and
financial risks. The Board of Directors and the Audit
Committee assesses these central risks and the measures
aiming to reduce the likelihood of their materialisation
regularly.
Strategic and business risks relate to decision-making,
resource allocation, management systems and the capacity to
respond to changes in the operating environment (Strategy
period: long-term, 3–5 years). Strategic risk assesment
comprises also the regulatory framework and ethically
sustainable business practices that apply to the company’s
operations and industry. Corporate Responsibility risks
related to business operations are described in the Non-
Financial Statement published in connection with the Report
by the Board of Directors.
Operational risks concern the implementation of strategy
and day- to-day business operations. Such risks include
deviations in processes, systems and conduct (Budget
period: short-term, 1–2 years).
Hazard risks are errors, malfunctions and accidents
occurring within Anora or its operating environment,
resulting in damage or loss.
Financial risks pertain to changes in market prices,
the short- and long-term adequacy of financial assets
and the ability of counterparties to meet their financial
obligations.
The following table contains a summary of key
uncertainties with an either positive or negative effect on
Anora’s operations:
Strategic risks
• Business environment
• Technology
• Regulation
• Climate change
• Reputation
• M&A
Hazard risks
• Health and safety
• Property
• Environment
• Fires, accidents and
natural catastrophes
Financial risks
• Liquidity
• Profitability
• Interest rate, currency
and credit risks
• Taxation risks
• Accounting and reporting
• Capital structure
Operational risks
• Organisation, management and
personnel
• IT and security
• Production and processes
• Business disruption
• Quality
• Contractual and liability risks
• Compliance
Risk management
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
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Annual Report 2022
Risk Description Risk management
Raw material price risk
The availability of domestic barley and its market price has a significant
impact on the profitability of Anora’s business.
Anora ensures the availability and price of barley with contract farming in co-
operation with farmers and grain companies.
Risks related to customers
and consumer demand
The customers in Anora’s market areas include Nordic retail monopolies,
wholesalers who sell alcohol, restaurants, retail stores, travel retail,
international wine and spirits companies and importers operating in the
export markets. The wide customer base provides Anora with diverse
opportunities for the long-term development of customer cooperation.
Changes in consumer behaviour may, in the long term, shift the emphasis in
the demand for Anora’s products between different product categories.
A strong market position, efficient industrial processes, good quality and well-
known brands improve Anora’s chances to manage the risk.
Changes in consumption patterns and the need to adjust operations are
prepared for by investing in consumer-driven product development.
Product safety risks
As a wine and spirits company, one major risk is ensuring the quality and
safety of the raw materials and finished goods through the supply chain.
Anora employs modern methods to ensure the safety of production processes
and to eliminate various microbiological, chemical, and physical hazards. In
ensuring product safety, Anora complies with the operating methods required
by food safety management and quality certificates.
Damage risks
Anora has production facilities in Finland, Denmark, Norway, Estonia, and
France. A fire or other unforeseen event may interrupt the operations of a
production facility.
All Anora’s production facilities have insurance policies for material damage
and the interruption of operations in the Group’s insurance programme. Key
production facilities are subject to a risk survey every 1–2 years. Continuity
plans serve to limit possible damage due to interruptions in operations.
Financial risks
The key risks related to finance in Anora’s operations are currency transaction
and translation risks, interest rate risks and refinancing and liquidity risks.
Financial risk management aims to mitigate any impact that price
fluctuations and other uncertainties in the financial markets have on
operating results, the balance sheet, and cash flow and to ensure sufficient
liquidity. The management principles of the Group’s most significant financial
risks are described in more detail in the Notes to the Consolidated Financial
Statements, under section 4.1. Financial risk management.
Compliance
Key compliance risks in Anora’s operations relate to the breach of laws and
regulations and decisions by authorities concerning reporting, permits and
licenses, marketing of alcoholic beverages, competition law and processing of
personal data.
Anora aims to manage compliance risks and ensure ethically sustainable
business practices with guidance and regular training. Compliance
risk management aims to avoid sanctions, consequences and official
investigations and decisions that may damage the company’s profitability,
business continuity and reputation.
Price risk associated with commodities
Barley
In 2022, Anora consumed approximately 184.3 (208.5)
million kilos of grain to produce ethanol and starch. The
availability of high-quality domestic barley was ensured until
the end of 2022 through contract farming and cooperation
with farmers and grain stores. The market price of barley
significantly fluctuates year by year as a result of several
factors that affect Finnish barley supply and demand. The
price of barley is therefore considered to be a significant risk
for Anora during the financial year. The price risk has not
been hedged against with derivative instruments.
Electricity
A strong increase in the market price of electricity is
a significant risk for Anora. In Finland, the risk is managed
by following Anora’s principles for electricity procurement
and by a third-party specialist. These principles determine
the hedging limits within which the electricity price risk
is hedged against. The hedges are executed with the OTC-
derivatives of Nasdaq OMX Oslo ASA.
At the end of 2022, the hedging ratio for deliveries for
the next 12 months was 78.0% (80.9%), in line with the set
targets. In 2022, the average hedging ratio was 76.2%
(76.6%).
Cash flow hedge accounting in accordance with IFRS 9 is
applied to the hedges against electricity price risk, and hedge
effectiveness is tested quarterly. All hedging was as effective
in 2022 as in 2021.
Anora purchases its electricity straight from the Nord
Pool Spot markets as a delivery tied to the spot price of
the Finnish price area. As part of its electricity purchases,
Anora also purchasess physical electricity through bilateral
fixed-price contracts.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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Sensitivity to market risks
The table below describes the sensitivity of the Group’s
profit and equity (before taxes) to changes in electricity
prices, foreign exchange rates and interest rates. When
Anora applies hedge accounting, the sensitivity is directed at
equity. When hedge accounting is not applied, the sensitivity
is recognised as a potential impact on profit or loss.
The sensitivity to foreign exchange rate changes is
calculated from the net currency position resulting from
financial instruments.
The total group floating rate liability position consists
of floating rate liabilities EUR 210.0 (133.2) million and
floating leg of interest rate swap EUR 20.0 (20.0) million
which nets the interest rate risk.
An increase of one percentage point in interest
rates would have an effect of EUR -1.6 (-2.4) million on
the income statement. The effect of the increase in market
interest rates on the Group’s profit is determined by net
interest expenses.
Short-term risks and uncertainties
The most significant uncertainties in the company’s
operations relate to the overall economic development
and its impacts on consumption, to the competitive
environment, and to the effects of alcohol taxation and
legislation on consumer behaviour. Unexpected and
unforeseen disruptions in the supply chain, production
and deliveries, and exposures to IT security events form
the major short-term risks related to operations, as well as
sudden and significant changes in prices of raw materials,
especially related to barley. In addition, the short-term risks
relate to the integration of acquired businesses, as well as
related finance processes. Risks can be caused by internal or
external events.
Anora Group’s risk management policy is based on Altia’s
ERM risk management policy. Due to the merger of Altia
and Arcus on September 1, 2021, Anora has worked on
the risk management policies of Altia and Arcus during 2022
to form one common risk management policy of Anora. The
2022 2022 2021 2021
EUR million Income statement Equity Income statement Equity
+/-10% electricity - +/-0.8 - +/-0.5
+/-10% change in EUR/NOK exchange rate -/+0.1 +/-0.3 -/+0.1 +/-0.3
+/-10% change in EUR/SEK exchange rate +/-6.4 +/-1.9 -/+7.6 +/-1.4
+/-10% change in EUR/USD exchange rate -/+0.2 -/+0.6 -/+0.0 -/+0.1
+/-10% change in EUR/AUD exchange rate -/+0.0 -/+0.1 -/+0.0 -/+0.1
+/-1%-points change in interest rates -1.6 -0.0 -2.4 -0.0
SENSITIVITY OF FINANCIAL INSTRUMENTS TO MARKET RISKS (BEFORE TAXES) IN ACCORDANCE WITH IFRS 7
aim of risk management is to support the implementation of
the group’s strategy, the identification of risks and methods
to reduce the probability and effects of risks, and to ensure
business continuity.
Comment on the uncertainties and impacts due
to the war in Ukraine: The most significant uncertainties
due to the war in Ukraine relate to an escalation of
the already existing global supply chain disruptions, to
the supply of grain, and to further price increases across
all input costs. The war in Ukraine may cause volatility in
contract manufacturing volumes. Foreign exchange rates
may be affected significantly by the volatile situation on
the global capital markets.
The impact of the suspension of exports to Russia, as
announced on 28 February 2022, is not material on Group
level. Anora’s Baltic operations have suspended purchases of
raw materials from Russia and Belarussia.
Dividend proposal
According to the financial statements on 31 December
2022, the parent company’s distributable funds amount to
EUR 126,593,446.11 including profit for the period of EUR
38,929,378.22. There have been no significant changes to
the parent company’s financial position after the end of
the financial year.
The Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 0.22 per share be paid for
the financial year 2022. The dividend is proposed to be
paid in two installments. Anora aims to maintain a stable or
increasing dividend with a dividend payout ratio of 50–70%
of the result for the period, as defined in the long term
financial targets.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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Annual General Meeting 2023
Anora Group Plc’s Annual General Meeting 2023 is planned
to be held on 19 April 2023. The notice to and instructions
for the AGM are published by stock exchange release and on
Anora's website.
Outlook for 2023
Market outlook
In 2023, the volumes in the monopolies are expected to be
significantly lower than during the Covid-19 restrictions.
Input costs are expected to remain at a high level.
Guidance
Anora’s comparable EBITDA in 2023 is expected to be
between EUR 80–90 million.
Events after the period
Anora announced on 27 January 2023 changes in Anora’s
Executive Management Team: Henrik Bodekær Thomsen,
SVP Spirits and member of Anora’s Executive Management
Team decided to leave his position to assume other duties
within Anora. Kirsi Puntila, SVP International and member
of Anora’s Executive Management Team was appointed
SVP Spirits, and took on, in addition to her current
responsibilities, the responsibility of Anora’s spirits business
in the monopoly markets as of 27 January 2023.
On 31 January 2023, the proposals by Anora’s
Shareholders’ Nomination Board to Anora’s Annual General
Meeting 2022 on the number of members, composition and
remuneration of the Board of Directors were announced.
Helsinki, 22 March 2023
Anora Group Plc
Board of Directors
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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Key ratios of the Group
2022 2021 2020 2019 2018
Income statement
Net sales EUR million 702.7 478.2 342.4 359.6 357.3
Comparable EBITDA EUR million 76.1 71.7 52.4 44.8 40.0
(% of net sales) % 10.8 15.0 15.3 12.4 11.2
EBITDA EUR million 67.9 62.9 40.3 43.1 34.0
Comparable operating result (EBIT) EUR million 42.9 51.2 35.0 26.8 25.6
(% of net sales) % 6.1 10.7 10.2 7.5 7.2
Operating result EUR million 34.7 42.4 22.9 25.1 19.7
Result before taxes EUR million 23.4 38.6 21.3 24.6 18.6
Result for the period EUR million 18.1 31.2 17.8 18.4 15.1
Items affecting comparability EUR million -8.2 -8.8 -12.1 -1.7 -6.0
Balance sheet
Cash and cash equivalents EUR million 91.4 168.9 130.7 64.2 42.0
Total equity EUR million 481.4 507.9 156.3 151.2 150.1
Non-controlling interest EUR million 0.9 0.9 - - -
Borrowings EUR million 247.5 162.6 116.1 82.6 89.4
Invested capital EUR million 728.9 670.5 272.4 233.8 239.5
Profitability
Return on equity (ROE) % 3.6 9.3 11.6 12.2 10.5
Return on invested capital (ROI) % 4.2 7.4 7.7 8.5 7.0
2022 2021 2020 2019 2018
Financing and financial position
Net debt EUR million 300.9 126.0 -3.9 28.9 47.4
Gearing % 62.5 24.8 -2.5 19.1 31.6
Equity ratio % 37.0 41.2 34.3 37.8 38.4
Net cash flow from operating activities EUR million -0.4 50.8 56.1 52.6 6.5
Net debt/comparable EBITDA 4.0 1.8 -0.1 0.6 1.2
Share-based key ratios
Earnings / share (Basic and diluted) EUR 0.26 0.67 0.49 0.51 0.42
Equity / share EUR 7.13 7.52 4.33 4.18 4.15
Dividend per share EUR 0.22* 0.45 0.75 0.42 0.38
Dividend/earnings % 83.1* 67.6 152.2 82.6 91.2
Effective dividend yield % 3.0* 4.1 7.5 5.1 5.4
Price/Earnings 27.8 16.3 20.3 16.1 17.0
Closing share price on the last day of trading EUR 7.36 10.86 9.98 8.18 7.07
Highest EUR 11.04 12.00 10.40 8.22 9.50
Lowest EUR 6.62 9.62 7.01 7.08 7.015
Market value of shares at the end of period EUR million 497.2 733.6 360.7 295.6 255.5
Number of shares outstanding at the end of period 67 553 624 67 553 624 36 140 485 36 140 485 36 140 485
Personnel
Personnel end of period 1 251 1 055 637 632 678
Average number of personnel 1 159 799 650 682 718
* Board’s dividend proposal for the financial year 2022 EUR 0.22 per share.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES (APM) TO IFRS
FIGURES AND ITEMS AFFECTING COMPARABILITY (IAC)
EUR million 2022 2021
Items affecting comparability
Net gains or losses from business and assets disposals 0.8 3.7
Cost for closure of business operations and restructurings -0.1 -0.5
Costs related to the closed voluntary pension scheme 0.3 -
Costs related to the merger of Altia and Arcus -4.6 -11.2
Inventory fair valuation -2.0 -0.8
Other major corporate projects -2.6 0.0
Total items affecting comparability -8.2 -8.8
Comparable EBITDA
Operating result 34.7 42.4
Less:
Depreciation, amortisation and impairment 33.2 20.5
Total items affecting comparability 8.2 8.8
Comparable EBITDA 76.1 71.7
% of net sales 10.8 15.0
Comparable EBIT
Operating result 34.7 42.4
Less:
Total items affecting comparability 8.2 8.8
Comparable EBIT 42.9 51.2
% of net sales 6.1 10.7
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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THE DEFINITIONS AND REASONS FOR THE USE OF FINANCIAL KEY INDICATORS
Key figure Definition Reason for the use
Operating margin, % Operating result / Net sales Operating result shows result generated by the
operating activities.
EBITDA
EBITDA margin, %
Operating result before depreciation
and amortization
EBITDA / Net sales
EBITDA is the indicator to measure the performance
of the Group.
Comparable operating result
Comparable operating margin, %
Comparable EBITDA
Comparable EBITDA margin, %
Items affecting comparability
Operating result excluding items
affecting comparability
Comparable operating result / Net
sales
EBITDA excluding items affecting
comparability
Comparable EBITDA / Net sales
Material items outside normal
business, such as net gains or
losses from business and assets
disposals, impairment losses, cost
for closure of business operations
and restructurings, major corporate
projects including direct transaction
costs related to business
acquisitions and the merger, merger
related integration costs, expenses
arising from the fair valuation of
inventories in connection with
merger, voluntary pension plan
change, and costs related to other
corporate development.
Comparable EBITDA, comparable EBITDA margin,
comparable operating result and comparable
operating margin are presented in addition
to EBITDA and operating result to reflect the
underlying business performance and to enhance
comparability from period to period. Anora believes
that these comparable performance measures
provide meaningful supplemental information by
excluding items outside normal business, which
reduce comparability between the periods.
Comparable EBITDA is an internal measure to
assess performance of Anora and key performance
measure at segment level together with net sales.
Comparable EBITDA is commonly used as a base
for valuation purposes outside the Company and
therefore important measure to report regularly.
Invested capital Total equity + Borrowings Base for ROI measure.
Return on equity (ROE), % Result for the period / Total equity
(average of reporting period and
comparison period)
This measure can be used to evaluate how
efficiently Anora has been able to generate results in
relation to the equity of the Company.
Return on invested capital (ROI), % (Result for the period + Interest
expenses) / (Total equity + Non-
current and current borrowings)
(average of reporting period and
comparison period)
This measure is used to evaluate how efficiently
Anora has been able to generate net results in
relation to the total investments made to the
Company.
Key figure Definition Reason for the use
Borrowings
Net debt
Non-current borrowings + Current
borrowings
Borrowings + Non-current and
current lease liabilities - Cash and
cash equivalents
Net debt is an indicator to measure the total external
debt financing of the Group.
Gearing, % Net debt / Total equity Gearing ratio helps to show financial risk level and it
is a useful measure for management to monitor the
level of Group’s indebtedness. Important measure
for the loan portfolio.
Equity ratio, % Total equity / (Total assets
-Advances received)
Equity/assets ratio helps to show financial risk
level and it is a useful measure for management
to monitor the level of Group’s capital used in the
operations.
Net debt / Comparable EBITDA Net debt / Comparable EBITDA
Earnings / share Result for the period attributable
to shareholders of the parent
company/Share-issue adjusted
number of shares during the period
Equity/share Equity attributable to shareholders
of the parent company /Share-
issue adjusted number of shares at
the end of period
Dividend/share Dividend distribution for period/
Number of shares (basic) at the end
of period
Dividend / earnings % Dividend/share / Earnings/ share
Effective dividend yield % Dividend/share / Price of share at
the end of the accounting period
Price / earnings Price of share at the end of
accounting period / Earnings/share
Market value of outstanding shares
The number of shares at the end of
accounting period x the price of the
share at the end of accounting period.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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Annual Report 2022
Financial
Statements
Contents to the financial statements
CONSOLIDATED FINANCIAL STATEMENTS 114
Consolidated income statement 114
Consolidated statement of comprehensive income 114
Consolidated balance sheet 115
Consolidated statement of cash flows 116
Consolidated statement of changes in equity 117
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 118
General information 118
1. Operating result 121
1.1. Revenues from operations 122
1.2. Segment information 122
1.3. Other operating income 124
1.4. Materials and services 125
1.5. Employee benefit expenses 125
1.6. Other operating expenses 125
1.7. Depreciation, amortisation and impairment 126
1.8. Research and development expenditures 126
2. Operative assets and liabilities 127
2.1. Goodwill and other intangible assets 128
2.2. Property, plant and equipment 131
2.3. Leases 133
2.4. Inventories 134
2.5. Contract assets and liabilities (current) 134
2.6. Trade and other receivables (current) 135
2.7. Employee benefit obligations 135
2.8. Trade and other payables 136
2.9. Provisions 136
3. Financial items and capital structure 137
3.1. Finance income and expenses 138
3.2. Financial assets and liabilities 138
3.2.1 Financial assets 138
3.2.2 Financial liabilities 139
3.2.3 Classification and fair values of financial assets
andliabilities 142
3.3. Derivative instruments and hedge accounting 144
3.4. Equity 146
4. Financial and capital risk 148
4.1. Financial risk management 149
4.2. Capital risk management 154
5. Consolidation 155
5.1. General consolidation principles 156
5.2. Changes in group structure 157
5.3. Subsidiaries 158
5.4. Associated companies and joint arrangements 160
6. Other notes 161
6.1. Income tax expense 162
6.2. Collaterals, commitments and contingent assets
andliabilities 166
6.3. Related party transactions 166
6.4. Share-based payments 167
PARENT COMPANY FINANCIAL STATEMENTS 171
Anora group plc income statement (FAS) 171
Anora group plc balance sheet (FAS) 172
Anora group plc statement of cash flows (FAS) 174
Notes to Anora Group Plc financial statements 175
BOARD OF DIRECTORS’ PROPOSAL FOR
THEDISTRIBUTIONOFPROFITS 184
THE AUDITORS’ NOTE 184
AUDITOR’S REPORT 185
SYMBOLS
Accounting
Critical estimates and
management judgements
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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| CONSOLIDATED INCOME STATEMENT | |||
EUR million | Note | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
| NET SALES | 1.1. | ||
| Other operating income | 1.3. | ||
| Materials and services | 1.4. | - | - |
| Employee benefit expenses | 1.5. | - | - |
| Other operating expenses | 1.6. | - | - |
| Depreciation, amortisation and impairment | 1.7. | - | - |
OPERATING RESULT | |||
| Finance income | 3.1. | ||
| Finance expenses | 3.1. | - | - |
| Share of profit in associates and joint ventures and income from interests | |||
in joint operations | |||
RESULT BEFORE TAXES | |||
| Income tax expense | 6.1. | - | - |
RESULT FOR THE PERIOD | |||
| Result for the period attributable to: | |||
Owners of the parent | |||
Non-controlling interests | |||
Earnings per share for the result attributable to owners of the parent, EUR | |||
| Basic | 3.4. | ||
Diluted | |||
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||
EUR million | Note | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
Result for the period | |||
| OTHER COMPREHENSIVE INCOME | |||
| Items that will not be reclassified to profit or loss | |||
Remeasurements of post-employment benefit obligations | - | ||
| Related income tax | 6.1. | ||
Total | - | ||
| Items that may be reclassified to profit or loss | |||
Cash flow hedges | |||
Financial assets at fair value through other comprehensive income | |||
| Translation differences | 3.4. | - | |
| Income tax related to these items | 6.1. | - | - |
Total | - | ||
Other comprehensive income for the period, net of tax | - | ||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | |||
| Total comprehensive income attributable to: | |||
Owners of the parent | |||
Non-controlling interests | |||
The notes are an integral part of the consolidated financial statements.
Consolidated financial statements
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FINANCIAL STATEMENTS
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
| CONSOLIDATED BALANCE SHEET | |||
EUR million | Note | 31 Dec 2022 | 31 Dec 2021 |
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 2.1. | ||
| Other intangible assets | 2.1. | ||
| Property, plant and equipment | 2.2. | ||
| Right-of-use assets | 2.3. | ||
| Investments in associates, joint ventures and interests in joint operations | 5.4. | ||
| Financial assets at fair value through other comprehensive income | 3.2.1. | ||
| Other receivables | 3.2.1. | ||
| Deferred tax assets | 6.1. | ||
Total non-current assets | |||
| Current assets | |||
| Inventories | 2.4. | ||
| Contract assets | 2.5. | ||
| Trade and other receivables | 2.6. | ||
Current tax assets | |||
| Cash and cash equivalents | 3.2.1. | ||
Total current assets | |||
TOTAL ASSETS | |||
EUR million | Note | 31 Dec 2022 | 31 Dec 2021 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to owners of the parent | 3.4. | ||
Share capital | |||
Invested unrestricted equity fund | |||
Fair value reserve | |||
Legal reserve | |||
Hedge reserve | |||
Translation differences | - | - | |
Retained earnings | |||
Equity attributable to owners of the parent | |||
Non-controlling interests | |||
Total equity | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 6.1. | ||
| Borrowings | 3.2.2. | ||
Non-current liabilities at fair value through profit or loss | |||
| Lease liabilities | 3.2.2. | ||
Other liabilities | |||
| Employee benefit obligations | 2.7. | ||
Total non-current liabilities | |||
| Current liabilities | |||
| Borrowings | 3.2.2. | ||
| Lease liabilities | 3.2.2. | ||
| Trade and other payables | 2.8. | ||
| Contract liabilities | 2.5. | ||
Current tax liabilities | |||
Total current liabilities | |||
Total liabilities | |||
TOTAL EQUITY AND LIABILITIES |
The notes are an integral part of the consolidated financial statements.
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FINANCIAL STATEMENTS
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||
EUR million | Note | 1 Jan-31 Dec 2022 | 1 Jan-31 Dec 2021 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
Result before taxes | |||
| Adjustments | |||
| Depreciation, amortisation and impairment | 1.7. | ||
Share of profit in associates and joint ventures and income from investments in joint operations | 5.4. | - | - |
| Net gain on sale of non-current assets | 1.3. | - | - |
| Finance income and costs | 3.1. | ||
Other adjustments | - | ||
Adjustments total | |||
| Change in working capital | |||
Change in inventories, increase (-) / decrease (+) | - | ||
Change in contract assets, trade and other receivables, increase (-) / decrease (+) | - | ||
Change in contract liabilities, trade and other payables, increase (+) / decrease (-) | - | ||
Change in working capital | - | ||
| Interest paid | 3.1. | - | - |
| Interest received | 3.1. | ||
| Other finance income and expenses paid | 3.1. | - | - |
| Income taxes paid | 6.1. | - | - |
Financial items and taxes | - | - | |
NET CASH FLOW FROM OPERATING ACTIVITIES | - | ||
EUR million | Note | 1 Jan-31 Dec 2022 | 1 Jan-31 Dec 2021 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| Payments for property, plant and equipment and intangible assets | 2.1., 2.2. | - | - |
Proceeds from sale of property, plant and equipment and intangible assets | 1.3. | ||
Acquisitions of subsidiaries and business operations | - | ||
Proceeds from financial assets at fair value through other comprehensive income | |||
Proceeds received from assets held for sale | |||
| Interest received from investments in joint operations | 5.4. | ||
| Dividends received | 3.1. | ||
NET CASH FLOW FROM INVESTING ACTIVITIES | - | ||
| CASH FLOW FROM FINANCING ACTIVITIES | |||
Changes in commercial paper program | - | ||
| Proceeds from borrowings | 3.2.2. | ||
| Repayment of borrowings | 3.2.2. | - | - |
| Repayment of lease liabilities | 3.2.2. | - | - |
| Dividends paid and other distributions of profits | 3.4. | - | - |
NET CASH FLOW FROM FINANCING ACTIVITIES | - | ||
CHANGE IN CASH AND CASH EQUIVALENTS | - | ||
Cash and cash equivalents at the beginning of the period | |||
Cash and cash equivalents received in merger | |||
Translation differences on cash and cash equivalents | - | - | |
Change in cash and cash equivalents | - | ||
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 3.2.3. |
The notes are an integral part of the consolidated financial statements.
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FINANCIAL STATEMENTS
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||
| Equity | |||||||||||
| Invested | attributable to | ||||||||||
| unrestricted | Fair value | Translation | Retained | owners of the | Non-controlling | ||||||
EUR million | Note | Share capital | equityfund | reserve | Legal reserve | Hedge reserve | differences | earnings | parent company | interests | Total equity |
Equity at 1 January 2021 | - | - | |||||||||
| Total comprehensive income | |||||||||||
Result for the period | |||||||||||
| Other comprehensive income (net of tax) | |||||||||||
Cash flow hedges | |||||||||||
Financial assets at fair value through other comprehensive income | 3.2.1. | - | |||||||||
| Translation differences | 3.4. | ||||||||||
| Remeasurements of post-employment benefit obligations | 2.7. | - | - | - | |||||||
Total comprehensive income for the period | - | ||||||||||
| Merger | |||||||||||
Merger consideration | |||||||||||
Transaction costs on share issue | - | - | - | ||||||||
Total merger | |||||||||||
| Transactions with owners | |||||||||||
Dividend distribution | - | - | - | ||||||||
Share based payment | - | - | - | ||||||||
Total transactions with owners | - | - | - | ||||||||
Transfer to reserve | - | ||||||||||
EQUITY AT 31 DECEMBER 2021 | - | ||||||||||
Equity at 1 January 2022 | - | ||||||||||
| Total comprehensive income | |||||||||||
Result for the period | |||||||||||
Other comprehensive income (net of tax) | - | ||||||||||
Cash flow hedges | |||||||||||
| Translation differences | 3.4. | - | - | - | |||||||
| Remeasurements of post-employment benefit obligations | 2.7. | ||||||||||
Total comprehensive income for the period | - | ||||||||||
| Transactions with owners | |||||||||||
Dividend distribution | - | - | - | - | |||||||
Share based payment | |||||||||||
Total transactions with owners | - | - | - | - | |||||||
Transfer to reserve | - | ||||||||||
EQUITY AT 31 DECEMBER 2022 | - | ||||||||||
The notes are an integral part of the consolidated financial statements.
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FINANCIAL STATEMENTS
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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FINANCIAL STATEMENTS
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
1. Operating result
Comparable
EBITDA
EUR
million
76.1
Net sales
EUR
million
702.7
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
2. Operative
assets and
liabilities
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
3. Financial items
and capital
structure
Dividend
per share
EUR
0.22
Earnings
per share
EUR
0.26
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
4. Financial and
capital risk
Gearing
62.5%
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
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OF DIRECTORS
SUSTAINABILITY
5. Consolidation
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
Annual Report 2022
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
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OF DIRECTORS
SUSTAINABILITY
6. Other notes
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
164
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
165
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FINANCIAL STATEMENTS
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
166
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
168
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
FINANCIAL STATEMENTS
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Parent company financial statements
ANORA GROUP PLC INCOME STATEMENT (FAS)
EUR million Note 1 Jan - 31 Dec 2022 1 Jan - 31 Dec 2021
NET SALES
1. 246.1 210.4
Increase (+) / decrease (–) in inventories of finished goods
and work in progress 4.6 -2.4
Other operating income
2. 20.2 16.8
Materials and services
Raw materials, consumables and goods
Purchases during the period -175.3 -124.4
Change in inventories 13.0 4.4
External services -0.2 -0.1
Total materials and services -162.5 -120.2
Personnel expenses
3.
Wages and salaries -23.8 -27.8
Indirect employee expenses
Pension expenses -3.8 -4.8
Other indirect employee expenses -0.8 -0.9
Total personnel expenses -28.4 -33.5
Depreciation, amortisation and impairment losses
Depreciation and amortisation according to plan -9.8 -10.1
Total depreciation, amortisation and impairment losses -9.8 -10.1
Other operating expenses
4. -59.1 -50.0
OPERATING RESULT 11.1 11.0
EUR million Note 1 Jan - 31 Dec 2022 1 Jan - 31 Dec 2021
Finance income and expenses
5.
Income from Group companies 32.0 3.2
Income from participating interests 0.9 0.9
Income from other investments held as non-current assets
From others - 3.3
Other interest and finance income
From Group companies 0.2 0.1
From others than Group companies 0.7 0.1
Impairment losses on investments in non-current assets -1.1 -7.7
Interest and other finance expenses
To Group companies -0.6 -0.0
To others than Group companies -4.0 -2.5
Total finance income and expenses 28.2 -2.6
RESULT BEFORE APPROPRIATIONS AND TAXES 39.3 8.4
Appropriations
6.
Depreciation difference increase (–) /decrease (+) 1.4 -0.2
Income tax expense
7.
Current period taxes -1.8 -1.6
Deferred taxes -0.0 -0.0
Other direct taxes 0.0 0.0
Total income taxes -1.8 -1.7
RESULT FOR THE PERIOD 38.9 6.6
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
ANORA GROUP PLC BALANCE SHEET (FAS)
EUR million Note 31 Dec 2022 31 Dec 2021
ASSETS
NON-CURRENT ASSETS 8.
Intangible assets
Intangible rights 3.1 4.7
Goodwill - 0.2
Other capitalised long-term expenditure 3.4 5.2
Prepayments 2.1 0.8
Intangible assets total 8.5 10.8
Tangible assets
Land and water areas 2.5 2.5
Buildings and structures 17.3 18.4
Machinery and equipment 22.1 24.7
Other tangible assets 0.5 0.5
Prepayments and assets under construction 4.0 0.9
Tangible assets total 46.4 47.0
Investments
Holdings in Group companies 325.2 244.1
Participating interests 13.0 8.2
Other shares and investments 0.6 0.6
Investments total 338.9 253.0
TOTAL NON-CURRENT ASSETS 393.8 310.8
EUR million Note 31 Dec 2022 31 Dec 2021
CURRENT ASSETS
Inventories
9.
Materials and supplies 35.4 22.4
Work in progress 8.6 8.5
Finished goods 17.0 12.5
Advance payments - 0.0
Inventories total 61.0 43.4
Non-current receivables
10.
Receivables from Group companies 14.8 3.4
Deferred tax assets 0.3 0.3
Non-current receivables total 15.1 3.7
Current receivables
11.
Trade receivables 36.4 25.3
Receivables from Group companies 93.6 8.7
Receivables from participating interest undertakings 0.1 0.1
Accrued income and prepaid expenses 9.4 5.3
Current receivables total 139.5 39.5
Cash at hand and in banks 44.3 127.4
TOTAL CURRENT ASSETS 259.9 214.0
TOTAL ASSETS 653.7 524.8
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
ANORA GROUP PLC BALANCE SHEET (FAS)
EUR million Note 31 Dec 2022 31 Dec 2021
EQUITY AND LIABILITIES
Equity
13.
Share capital 61.5 61.5
Invested unrestricted equity fund 52.2 52.2
Hedge reserve 4.4 1.5
Retained earnings 35.5 59.3
Profit for the period 38.9 6.6
TOTAL EQUITY 192.5 181.1
Appropriations
14.
Depreciation difference 17.1 18.5
Liabilities
Non-current
15.
Loans from financial institutions 210.0 55.0
Loans from pension institutions 6.8 8.3
Deferred tax liabilities 1.1 0.4
Other liabilities 4.9 4.9
Non-current liabilities total 222.8 68.6
Current
Loans from financial institutions 30.0 25.0
Loans from pension institutions 1.5 1.5
Trade payables 17.4 19.3
Liabilities to Group companies
16. 90.2 125.4
Other liabilities 62.2 62.7
Accrued expenses and deferred income
17. 20.0 22.7
Current liabilities total 221.3 256.6
TOTAL LIABILITIES 444.1 325.2
TOTAL EQUITY AND LIABILITIES 653.7 524.8
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
ANORA GROUP PLC STATEMENT OF CASH FLOWS (FAS)
EUR million Note 1 Jan - 31 Dec 2022 1 Jan - 31 Dec 2021
CASH FLOW FROM OPERATING ACTIVITIES
Result before taxes 40,7 8,2
Adjustments
Depreciation, amortisation and impairment 9,8 10,1
Share of profit in associates and joint ventures and income from
investments in joint operations -0,8 -5,2
Net gain on sale of non-current assets -28,2 5,8
Finance income and costs -1,4 0,2
Other adjustments 0,2 0,0
Adjustments total -20,5 10,9
Change in working capital
Change in inventories, increase (-) / decrease (+) -17,6 -4,4
Change in trade and other receivables, increase (-) / decrease (+) -23,2 -5,5
Change in trade and other payables, increase (+) / decrease (-) -5,3 23,2
Change in working capital -46,2 13,3
Interest paid -3,2 -1,6
Interest received 0,8 0,1
Other finance income and expenses paid -1,4 -1,0
Income taxes paid -0,5 -0,4
Financial items and taxes -4,3 -2,8
NET CASH FLOW FROM OPERATING ACTIVITIES -30,3 -29,5
EUR million Note 1 Jan - 31 Dec 2022 1 Jan - 31 Dec 2021
CASH FLOW FROM INVESTING ACTIVITIES
Payments for property, plant and equipment and intangible assets -7,1 -3,8
Proceeds from sale of property, plant and equipment and intangible assets
2. 0,9 4,5
Investments in subsidiaries -81,9 -3,3
Investments in participating interests -5,0 -
Proceeds from other investments - 3,4
Repayment of loan receivables - 2,5
Loans granted to subsidiaries -82,5 -
Proceeds from financial assets at fair value through other comprehensive
income - -
Proceeds received from assets held for sale - -
Interest received from investments in joint operations - -
Dividends received
5. 33,0 4,3
NET CASH FLOW FROM INVESTING ACTIVITIES -142,7 7,6
CASH FLOW FROM FINANCING ACTIVITIES
Changes in commercial paper program 10,0 -20,0
Proceeds from borrowings
16. -38,2 15,7
Repayment of borrowings
16. - -1,0
Proceeds from non-current borrowings 293,5 -
Repayment from non-current borrowings -145,0 -6,5
Repayment of lease liabilities
15.
Dividends paid and other distributions of profits
13. -30,4 -27,1
NET CASH FLOW FROM FINANCING ACTIVITIES 89,9 -38,9
CHANGE IN CASH AND CASH EQUIVALENTS -83,1 -1,8
Cash and cash equivalents at the beginning of the period 127,4 129,2
Cash and cash equivalents received in merger
Translation differences on cash and cash equivalents
Change in cash and cash equivalents -83,1 -1,8
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 44,3 127,4
The notes are an integral part of the consolidated financial statements.
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
NOTES TO ANORA GROUP PLC FINANCIAL STATEMENTS
Accounting policies for financial statements
The financial statements of the parent company are prepared in
accordance with the Finnish accounting legislation.
Arcus ASA merged into Altia Oyj 1st of September 2021. The
name of the combined entity is Anora Group Plc. In the financial
statements, the merger has been accounted for using the acquisition
method using the book values.
Non-current assets and depreciations
Non-current assets are recognised in the balance sheet at acquisition
cost less depreciations. The depreciation periods for non-current
assets are:
Trademarks 10–15 years
IT- development and software 3–5 years
Buildings and structures 10–40 years
Machinery and equipment 10 years
Other tangible assets 3–10 years
Holdings in Group companies and other shares and investments
included in non-current assets are measured at acquisition cost
or fair value, if lower. Holdings in other companies is disclosed in
Group notes 5.3.
Inventories
Inventories are measured at the lower of cost and net realisable
value. Self-manufactured products are measured at standard
prices, except cognac products, which are measured at weighted
average cost. Fixed production costs are allocated to the cost of
own production. Raw materials, supplies and trading goods are
measured at weighted average cost. Repacked trading goods are
measured at standard cost in repacking plant.
The cost of finished products and work in progress includes
raw materials, direct labour costs, other direct costs as well as
an allocable proportion of variable procurement and production
costs and fixed overheads in case of finished products, determined
based on normal operating capacity. Net realisable value is
the estimated selling price in the ordinary course of business, less
the estimated costs of completion and the estimated costs necessary
to make the sale.
Pension plans
The pension plans of the parent company are arranged through
pension insurance companies. Pension expenses are accrued to
correspond to the performance-based salaries in the financial
statements.
Cash Pool
The Group has applied the so called cash pool arrangement,
which enables efficient management of the parent company's and
subsidiaries' cash and cash equivalents.
Leases
All lease payments are recognised as rental expenses.
Financial Derivatives
Fair value measurement compliant with Chapter 5, section 2a
of the Accounting Act is applied to the accounting treatment of
financial derivatives.
Derivatives are included in financial assets and liabilities at fair
value through profit or loss when they do not meet the criteria of
hedge accounting. These derivatives are recognised at fair value on
the trade date and they are subsequently measured at fair value at
the reporting date. The fair values of derivatives equal the amount
that Anora Group Plc would have to pay or it would receive from
the termination of the derivative contract at the reporting date. The
fair values of forward exchange contracts are determined by using
the market prices at the reporting date. The fair values of interest
rate derivatives are determined by discounting the related future
cash flows. The valuation of commodity derivatives is determined
based on the fair values received from the financial markets.
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
All derivatives for which fair value is measured or disclosed
in the financial statements are categorised within the fair value
hierarchy level 1–3. The levels of fair value hierarchy reflect
the significance of inputs used in determining the fair values. In
level one, fair values are based on public quotations of identical
financial instruments. In level two, the inputs used in determining
the fair values are based on quoted market rates and prices
observable for the asset or liability in question directly (ie. price)
or indirectly on discounted future cash flows. Fair values of other
financial assets and liabilities in level two reflect their carrying
value. In level three, the fair values of assets and liabilities are
based on inputs that are not based on observable market data for
all significant variables, and instead are, to a significant extent,
based on management estimates and their use in generally accepted
valuation techniques.
The fair values of the financial instruments are determined by
using the market prices on the closing date of the reporting period.
Hedge accounting
The parent company applies hedge accounting when the change in
fair value is recognised in the hedge reserve under equity. In Anora
Group Oyj, cash flow hedging is applied to part of the interest rate,
foreign currency and electricity derivatives based on case-by-case
assessment. In cash flow hedging, Anora Group Oyj is hedging
against changes in cash flows related to a specific asset or liability
recognised in the balance sheet or to a highly probable future
business transaction. In the beginning of the hedging arrangement,
company documents the relationship between each hedging
instrument and hedged item, as well as the objectives of risk
management and the strategy in engaging in hedging. Effectiveness
means the ability of a hedging instrument to offset the changes
in the fair value of the hedged item or changes in the cash flows
of the hedged transaction attributable to the hedged risk. The
hedging relationship is regarded to be highly effective when there
is an economic relationship between the hedged item and the value
of the hedging instrument and the value of the hedged item moves
to the opposite direction due to same risk. Hedge accounting is
discontinued when the criteria for hedge accounting is no longer
met.
The gains and losses arising from fair value changes of derivative
contracts, to which hedge accounting is applied, are presented
in congruence with the hedged item. The effective portion of
the unrealised changes in the fair value of derivatives designated and
qualifying as cash flow hedges are recognised in the hedge reserve in
equity. The ineffective portion is immediately recognised in profit or
loss in finance income or expense.
The cumulative gain or loss in equity on derivative instruments
related to commercial items is recognised in profit or loss as
an adjustment to purchases or sales simultaneously with the hedged
item in the period in which the hedged item affects profit or
loss. Realised gain or loss on electricity derivatives is included in
operating result in electricity procurement expenses. When a hedging
instrument designated as a cash flow hedge expires, is sold or
no longer meets the criteria of hedge accounting, the gain or loss
accumulated in equity is recognised through profit or loss either as
an adjustment to purchases or sales when hedging is effective or as
finance income or expense when hedge accounting criteria is not
met.
Research and development expenditure
Research and development expenditure is recognised as an annual
expense as incurred.
Financial securities
Financial securities are recognised at acquisition cost or lower.
Receivables
Receivables are measured at acquisition cost or probable value,
if lower.
Sale of trade receivables
The sold receivables are derecognised when the receivable has been
sold and the sales price for it has been received. The related costs are
recognised in other financial expenses.
Non-current financial liabilities
Non-current financial liabilities are recognised at acquisition cost.
Income taxes
Income taxes in the income statement include taxes calculated for
the financial year based on Finnish tax legislation, adjustments to
taxes in previous financial years and the change in deferred taxes.
Foreign currency denominated items
Foreign currency denominated receivables and liabilities are
translated to Finnish currency at the rates of the closing date of
the reporting period.
177
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FINANCIAL STATEMENTS
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
1. NET SALES
EUR million 2022 2021
Net sales by business areas
Alcohol beverages 119.2 107.9
Industrial services 127.0 102.6
TOTAL 246.1 210.4
Net sales by geographic areas
Finland 186.2 162.7
Europe 57.8 46.2
Rest of the world 2.1 1.5
TOTAL 246.1 210.4
2. OTHER OPERATING INCOME
EUR million 2022 2021
Rental income 1.2 1.2
Income from energy sales 4.2 3.4
Proceeds from disposal of non-current assets 0.8 2.1
Service income 10.5 8.7
Other income 3.5 1.4
TOTAL 20.2 16.8
4. OTHER OPERATING EXPENSES
EUR million 2022 2021
Rental expenses 1.6 1.5
Marketing expenses 7.3 4.8
Energy expenses 9.1 7.6
Travel and representation expenses 1.2 0.4
Repair and maintenance expenses 7.1 6.4
IT expenses 8.1 7.9
Outsourcing services 11.6 9.9
Variable sales expenses 5.9 5.6
Other expenses 7.2 6.0
TOTAL 59.1 50.0
Auditor's fees
Audit fees 0.3 0.2
Other fees 0.1 0.1
TOTAL 0.4 0.3
Environmental expenses
The Company’s environmental expenses did not have a significant
impact on the result for the period and on the financial position.
3. NOTES RELATED TO PERSONNEL
EUR million 2022 2021
Wages and salaries 23.8 27.8
Pension expenses 3.8 4.8
Other social expenses 0.8 0.9
TOTAL 28.4 33.5
EUR million 2022 2021
Fringe benefits (taxable value) 0.6 0.6
The average number of personnel during the
reporting period 2022 2021
Workers 195 193
Clerical employees 211 207
TOTAL 406 400
Management remuneration, EUR million 2022 2021
CEO 0.5 0.4
Board members 0.6 0.4
Pension commitments of the Board and CEO
The retirement age of the CEO of the company is 63 years.
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
5. FINANCE INCOME AND EXPENSES
EUR million 2022 2021
Dividend income
From Group companies 32.0 3.2
From participating interest undertakings 0.9 0.9
From others - 0.2
Total dividend income 33.0 4.3
Interest income
From Group companies 0.2 0.1
From others 0.6 0.0
Total interest income 0.8 0.1
Other finance income
From others 0.2 3.2
Total other finance income 0.2 3.2
TOTAL FINANCE INCOME 33.9 7.6
Interest expenses
To Group companies 0.6 0.0
To others 2.5 1.5
Total interest expenses 3.1 1.5
Other finance expenses
To others
Impairment losses on investments in
non-current assets 1.1 7.7
Other finance expenses 1.5 1.1
Total other finance expenses 2.6 8.8
TOTAL FINANCE EXPENSE 5.7 10.3
TOTAL FINANCE INCOME AND EXPENSES 28.2 -2.6
The following items are included in finance
items of the income statement from fair value
hedges:
Other finance income
Fair value changes of derivatives -0.0 0.0
6. APPROPRIATIONS
EUR million 2022 2021
Difference between depreciations according to
plan and depreciations made in taxation:
Intangible rights 0.3 0.3
Other intangible assets 0.0 -0.2
Buildings and structures 0.5 0.4
Machinery and equipment 0.5 -0.7
Other tangible assets 0.0 0.0
TOTAL 1.4 -0.2
7. INCOME TAX EXPENSE
EUR million 2022 2021
Income taxes from current period -1.8 -1.6
Income taxes from previous periods 0.0 0.0
Change in deferred tax assets -0.0 -0.0
TOTAL -1.8 -1.7
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OF DIRECTORS
SUSTAINABILITY
8. SPECIFICATION OF NON-CURRENT ASSETS
EUR million 2022 2021
Intangible assets
Intangible rights
Acquisition cost at 1 January 33.1 34.6
Additions 0.1 0.1
Disposals 0.0 -1.5
Acquisition cost at 31 December 33.2 33.1
Accumulated amortisation at 1 January -28.5 -27.8
Accumulated amortisation on disposals and transfers 0.0 1.5
Amortisation for the period -1.7 -2.1
Accumulated amortisation at 31 December -30.1 -28.5
CARRYING AMOUNT AT 31 DECEMBER 3.1 4.7
Goodwill
Acquisition cost at 1 January 18.7 18.7
Acquisition cost at 31 December 18.7 18.7
Accumulated amortisation at 1 January -18.5 -18.4
Amortisation for the period -0.2 -0.1
Accumulated amortisation at 31 December -18.7 -18.5
CARRYING AMOUNT AT 31 DECEMBER - 0.2
Other intangible assets
Acquisition cost at 1 January 27.3 25.8
Additions 0.2 0.5
Transfers between items 0.3 1.0
Acquisition cost at 31 December 27.7 27.3
Accumulated amortisation at 1 January -22.1 -20.1
Amortisation for the period -2.3 -2.0
Accumulated amortisation at 31 December -24.4 -22.1
CARRYING AMOUNT AT 31 DECEMBER 3.4 5.2
Prepayments in intangible assets
Acquisition cost at 1 January 0.8 1.4
Additions 1.6 0.3
Transfers between items -0.3 -1.0
CARRYING AMOUNT AT 31 DECEMBER 2.1 0.8
EUR million 2022 2021
Tangible assets
Land and water areas
Acquisition cost at 1 January 2.5 2.4
Additions 0.0 0.0
Disposals 0.0 -
CARRYING AMOUNT AT 31 DECEMBER 2.5 2.5
Buildings and structures
Acquisition cost at 1 January 99.7 99.0
Additions 0.7 0.4
Transfers between items 0.3 0.3
Disposals - -
Acquisition cost at 31 December 100.6 99.7
Accumulated depreciation at 1 January -81.3 -79.1
Accumulated depreciation on disposals and transfers 0.0 -
Depreciation for the period -2.1 -2.1
Accumulated depreciation at 31 December -83.3 -81.3
CARRYING AMOUNT AT 31 DECEMBER 17.3 18.4
Machinery and equipment
Acquisition cost at 1 January 124.3 120.5
Additions 1.0 1.6
Transfers between items 0.2 2.3
Disposals -0.3 -0.1
Acquisition cost at 31 December 125.1 124.3
Accumulated depreciation at 1 January -99.6 -95.9
Accumulated depreciation on disposals and transfers 0.1 0.1
Depreciation for the period -3.6 -3.7
Accumulated depreciation at 31 December -103.0 -99.6
CARRYING AMOUNT AT 31 DECEMBER 22.1 24.7
Other tangible assets
Acquisition cost at 1 January 0.5 0.5
Acquisition cost at 31 December 0.5 0.5
CARRYING AMOUNT AT 31 DECEMBER 0.5 0.5
Prepayments and assets under construction
Acquisition cost at 1 January 0.9 2.6
Additions 3.6 0.9
Transfers between items -0.5 -2.6
CARRYING AMOUNT AT 31 DECEMBER 4.0 0.9
CARRYING AMOUNT OF MACHINERY AND EQUIPMENT USED IN PRODUCTION AT 31 DECEMBER 21.8 24.4
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GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
EUR million 2022 2021
Investments
Holdings in Group companies
Acquisition cost at 1 January 402.9 347.7
Additions 81.9 55.3
Transfer from participating interests 0 -
Acquisition cost at 31 December 485.1 402.9
Accumulated impairment at 1 January -158.8 -151.1
Impairment -1.1 -7.7
Accumulated impairment at 31 December -159.9 -158.8
CARRYING AMOUNT AT 31 DECEMBER 325.2 244.1
Participating interests
Acquisition cost at 1 January 8.2 8.2
Additions 5.0 -
Transfer to holdings in group companies 0 -
CARRYING AMOUNT AT 31 DECEMBER 13.0 8.2
Other shares and investments
Acquisition cost at 1 January 0.6 0.8
Disposals - -0.2
CARRYING AMOUNT AT 31 DECEMBER 0.6 0.6
9. INVENTORY
There is no significant difference between the repurchase price and
cost of inventories.
10. NON-CURRENT RECEIVABLES
EUR million 2022 2021
Receivables from Group companies
Loan receivables 14.8 3.4
Deferred tax assets
Fixed assets deferred depreciations 0.3 0.3
Deferred tax assets total 0.3 0.3
TOTAL NON-CURRENT RECEIVABLES 15.1 3.7
11. CURRENT RECEIVABLES
EUR million 2022 2021
Receivables from Group companies
Trade receivables 9.7 4.7
Loan receivables 71.1 -
Cash Pool receivables 3.3 -
Other receivables 4.5 2.6
Derivatives 0.0 0.0
Accrued income and prepaid expenses 5.0 1.5
Total 93.6 8.7
Receivables from participating interest
undertakings
Trade receivables 0.1 0.1
Total 0.1 0.1
Receivables from others
Trade receivables** 36.4 25.3
Accrued income and prepaid expenses 9.4 5.3
Total 45.8 30.6
TOTAL CURRENT RECEIVABLES 139.5 39.5
Accrued income and prepaid expenses
Significant items in accrued income and
prepaid expenses:
Derivatives 5.8 2.8
Taxes - 0.8
Others 3.6 1.8
Total 9.4 5.3
** Does not include the sold trade receivables
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OF DIRECTORS
SUSTAINABILITY
12. DISCLOSURES ON FAIR VALUES (DERIVATIVES)
2022 2021
EUR million Fair value 31 Dec
Changes in the fair
value recognised in
the income statement
Changes in the fair
value recognised in
fair value reserve Fair value 31 Dec
Changes in the fair
value recognised in
the income statement
Changes in the fair
value recognised in
fair value reserve
Derivative instruments
Interest rate derivatives 0.0 - 0.0 -0.5 - -0.5
Foreign exchange derivatives 0.0 0.0 0.0 0.2 0.0 0.1
Commodity derivatives 5.4 - 5.4 2.3 - 2.3
TOTAL 5.5 0.0 5.5 1.9 0.0 1.9
13. EQUITY
EUR million 2022 2021
Restricted equity
Share capital at 1 January 61.5 60.5
Changes in share capital - 1.0
Share capital at 31 December 61.5 61.5
Hedge reserve at 1 January 1.5 -0.6
Additions and disposals 2.9 2.2
Hedge reserve at 31 December 4.4 1.5
Total restricted equity 65.9 63.0
Unrestricted equity
Invested unrestricted equity fund at 1 January 52.2 1.2
Changes in Invested unrestricted equity fund - 51.0
Retained earnings at 1 January 65.9 86.4
Distribution of dividends -30.4 -27.1
Profit for the period 38.9 6.6
Total unrestricted equity 126.6 118.1
TOTAL EQUITY 192.5 181.1
Distributable unrestricted equity
Calculation of distributable equity
Invested unrestricted equity fund 52.2 52.2
Retained earnings 65.9 86.4
Distribution of dividends -30.4 -27.1
Profit for the period 38.9 6.6
TOTAL DISTRIBUTABLE UNRESTRICTED EQUITY 126.6 118.1
Company’s share capital:
Number of shares outstanding at the end of
theperiod 67,553,624 67,553,624
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SUSTAINABILITY
14. APPROPRIATIONS
EUR million 2022 2021
Depreciation difference
Intangible rights 0.9 1.2
Other intangible assets 0.3 0.4
Buildings and structures 1.0 1.5
Machinery and equipment 14.9 15.5
Other tangible assets -0.0 -0.0
TOTAL 17.1 18.5
15. LIABILITIES
EUR million 2022 2021
Non-current
Loans from financial institutions 210.0 55.0
Loans from pension institutions 6.8 8.3
Deferred tax liabilities 1.1 0.4
Other liabilities 4.9 4.9
TOTAL 222.8 68.6
16. LIABILITIES TO GROUP COMPANIES
EUR million 2022 2021
Trade payables 0.9 1.5
Cash Pool liabilities 88.0 122.8
Derivative instruments 0.2 0.3
Other accrued expenses 1.0 0.8
TOTAL 90.2 125.4
17. ACCRUED EXPENSES AND DEFERRED INCOME
EUR million 2022 2021
Significant items under accrued expenses:
Holiday pay and other wages and salaries 5.1 10.4
Contract discount 0.5 0.5
Procurement expenses and other accrued
expenses 13.8 11.3
Taxes 0.5 -
Derivative instruments 0.1 0.6
TOTAL 20.0 22.7
18. COLLATERALS AND COMMITMENTS
EUR million 2022 2021
Collaterals given on behalf of the Group
companies
Mortgages 18.5 18.5
Guarantees 4.1 3.5
TOTAL COLLATERALS 22.6 22.0
Commitments and other contingencies
Operating and finance lease obligations
Not later than one year 0.6 0.6
Later than one year 0.8 0.5
Total 1.4 1.1
Lease obligations
Not later than one year 0.7 0.7
Later than one year 0.9 1.5
Total 1.6 2.1
Other obligations
Not later than one year 2.6 5.5
Total 2.6 5.5
TOTAL COMMITMENTS 5.6 8.7
VAT liability for real estate investments
The company is liable to review VAT deductions made for real estate
investments completed in 2014–2022 if the use subject to VAT
decreases during the review period. The maximum liability is EUR
1.0 million and the last year to review is 2031.
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SUSTAINABILITY
DERIVATIVE CONTRACTS
EUR million 2022 2021
Electricity derivatives
Fair value 5.4 2.3
Nominal value 2.4 2.8
Amount (TWh) 0.1 0.1
Parent company's external forward exchange
contracts
Fair value 0.2 0.4
Nominal value 22,1 25.8
Parent company's internal forward exchange
contracts
Fair value -0.2 -0.3
Nominal value 7.8 12.9
Interest rate derivatives
Fair value 0.0 -0.5
Nominal value 20.0 20.0
Emission allowances (kilotons) 2022 2021
Emission allowances received 22.6 22.6
Excess emission allowances from
the previous year 13.5 10.9
Sold emission allowances 0.0 -
Realised emissions -21.1 -19.9
EMISSION ALLOWANCES AT 31 DECEMBER 2.0 13.5
Fair value of the remaining emission
allowances, EUR million 0.2 1.1
Anora continues to operate within the emission trading system for
the trading period 2021-2030.
19. RELATED PARTY TRANSACTIONS
Related party transactions are carried out at market value. More
information about related party transactions is presented in
Group Note 6.3. Management remuneration is presented in Note 3.
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OF DIRECTORS
SUSTAINABILITY
Board of Directors’ proposal for thedistributionofprofits
According to the balance sheet at 31 December 2022, the parent company’s distributable funds amount to
EUR 126 593 446.11 including profit for the period of EUR 38 929 378.22.
There have been no significant changes to the parent company’s financial position after the end of
the financial year.
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.22 per share be
paid for the financial year 2022
Signatures to the Board of Directors’ Report and to the financial statements
Helsinki, 22 March 2023
Michael Holm Johansen
Chairman
Sanna Suvanto-Harsaae Kirsten Ægidius Ingeborg Flønes
Chriter Kjos Annareetta Lumme-Timonen Jyrki Mäki-Kala
Torsten Steenholt Arne Larsen Jussi Mikkola
Pekka Tennilä
CEO
The Auditors’ Note
An auditor's report concerning the performed audit has been given to date.
Helsinki, 22 March 2023
PricewaterhouseCoopers Oy
Authorised Public Accountants
Ylva Eriksson
Authorised Public Accountant
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Auditor’s Report
To the Annual General Meeting of Anora Group Oyj
Report on the Audit of the Financial Statements
Opinion
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial position and
financial performance and cash flows in accordance with International Financial Reporting Standards
(IFRS) as adopted by the EU
• the financial statements give a true and fair view of the parent company’s financial performance
and financial position in accordance with the laws and regulations governing the preparation of
the financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
We have audited the financial statements of Anora Group Oyj (business identity code 1505555-7) for
the year ended 31 December 2022. The financial statements comprise:
• the consolidated balance sheet, income statement, statement of comprehensive income, statement of
changes in equity, statement of cash flows and notes, including a summary of significant accounting
policies
• the parent company’s balance sheet, income statement, statement of cash flows and notes.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, the non-audit services that we have provided to the parent
company and to the group companies are in accordance with the applicable law and regulations in Finland
and we have not provided non-audit services that are prohibited under Article 5(1) of Regulation (EU)
No 537/2014. The non-audit services that we have provided are disclosed in note 1.6 to the Financial
Statements.
Our Audit Approach
Overview
Materiality
Audit Scope
Key Audit
Matters
• Overall group materiality: € 4,4 million
• The group audit included the parent company and all
significant subsidiaries covering the majority of net
sales, assets and liabilities.
• Revenue recognition
• Valuation of inventories
• Goodwill - allocation to new segments and valuation
(Translation of the Finnish Original)
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As part of designing our audit, we determined materiality and assessed the risks of material misstatement
in the financial statements. In particular, we considered where management made subjective judgements;
for example, in respect of significant accounting estimates that involved making assumptions and
considering future events that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to
obtain reasonable assurance whether the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They 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 financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall group materiality for the consolidated financial statements as set out in the table
below. These, together with qualitative considerations, helped us to determine the scope of our audit
and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on
the financial statements as a whole.
Overall group materiality € 4,4 million (previous year 3,3 million)
How we determined it 0,6 % of net sales
Rationale for the materiality
benchmark applied
We chose net sales as the benchmark because it provides
a consistent year-on-year basis for determining materiality. In
addition, it is a benchmark against which the performance of
the group is commonly measured by users.
We used 0,6 % of net sales, which is within the range of
acceptable quantitative materiality thresholds in auditing
standards.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the Anora Group, the industry in
which it operates, the accounting processes and controls, and the size, complexity and risks of individual
subsidiaries. Anora Group has operations in the Nordic countries, Baltics and France. We determined
the type of work that needed to be performed at group companies. Audits were performed in group
companies which were considered significant either because of their individual significance or due to their
specific nature, covering the majority of revenue, assets and liabilities of the group. For the remaining
reporting units, we performed other procedures to confirm there were no significant risks of material
misstatement in the group financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
As in all of our audits, we also addressed the risk of management override of internal controls,
including among other matters consideration of whether there was evidence of bias that represented a risk
of material misstatement due to fraud.
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Key audit matter in the audit of the group How our audit addressed the key audit matter
Revenue recognition
Refer to note 1.1 in the consolidated financial statements
Anora’s revenue flows are generated by the sale of own products and partner brands, contract
manufacturing, sale of logistic services and sale of industrial products.
The transaction price may include variable considerations such as volume discounts, bonuses,
marketing support and product returns.
Due to a variety of contractual terms, the calculation of the period’s variable components is an
accounting area that include management judgement. We have accordingly considered the risk
that revenue is not recorded in the correct period to be a key audit matter.
Our audit procedures included e.g. the following:
• We gained an understanding of the nature of the revenue flows and different contractual terms
used.
• We compared the accounting treatment of a sample of sales transactions and variable
consideration to the terms of underlying contracts.
• We assessed the Group’s accounting policies over revenue recognition.
• We tested a sample of sales transactions against incoming cash.
• We examined a sample of credit notes issued against relevant background material.
• We tested a sample of sales invoices recorded in December 2022 and January 2023 to evaluate
that revenue had been recognised in the right period.
• For selected revenue and accounts receivable balances we obtained customer confirmations.
Valuation of inventory
Refer to note 2.4 in the consolidated financial statements
Inventory forms a significant part of the Group’s assets, amounting to EUR 186 million as of 31
December 2022.
Inventories are measured at the lower of cost and net realizable value. Self-manufactured
products are measured at standard prices or weighted average cost. Fixed production costs are
allocated to the cost of own production.
Management exercises judgement and applies assumptions when estimating the need for
an obsolescence provision. This includes identification of slow moving and seasonal products,
changes in product portfolio and consideration of sales forecasts.
Given the factors described above, we have considered valuation of inventory to be a key audit
matter.
Our audit procedures included e.g. the following:
• We gained an understanding of the controls established in relation to inventory valuation.
• We tested the key reconciliations between general ledger and inventory ledger.
• We assessed the adequacy of the obsolescence provision and checked adherence to the
Group’s accounting policy.
• We tested, on a sample basis, the accuracy of cost for self-manufactured products by
comparing the actual production costs to market and other price data.
• We tested a sample of inventory items to confirm whether they are held at the lower of cost
and net realisable value, through comparison to vendor invoices and sales prices.
• For a sample of warehouses, we attended the physical stock-take counting or reconciled third
party confirmations with the accounting records.
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OF DIRECTORS
SUSTAINABILITY
Key audit matter in the audit of the group How our audit addressed the key audit matter
Goodwill – allocation to new segments and valuation
Refer to note 2.1 in the consolidated financial statements
The Group reports goodwill totalling to EUR 311 million as of 31 December 2022, arising from
business acquisitions, the most recent one being the acquisition of Globus Wine A/S in July 2022.
In the beginning of 2022, the group implemented a new reporting structure consisting of three
reportable segments: Wine, Spirits and Industrial. The amount of goodwill as of 1 January 2022 was
re-allocated to the new operating segments using the relative fair values of notional goodwill.
Management tests goodwill for potential impairment annually and whenever there is an indication
that the carrying value may be impaired when comparing the recoverable amount against the
carrying value of the goodwill.
Impairment tests are performed at operating segment level. The recoverable amounts are
determined using the value in use method.
Valuation of goodwill is a key audit matter due to its financial significance as well as due to
the high level of management judgement involved in relation to the number of underlying
assumptions used to determine the value-in-use, including the revenue growth, EBITDA, capital
expenditures, working capital, and discount rate applied on net cash-flows.
Our audit of goodwill valuation focused on critical estimates and management’s judgement. We
have assessed the appropriateness of these through the following procedures:
• We obtained an understanding and evaluated the methodology applied in re-allocating the
goodwill to the new operating segments.
• We obtained an understating and evaluated the methodology applied in the value in use
calculation by comparing it to the requirements of IAS 36, “Impairment of Assets”, and we
tested the mathematical accuracy of the calculations.
• We evaluated the process where the future cash flow forecasts were drawn up, including sales
and profitability forecasts and discount rates.
• We involved our valuation experts to test the reasonableness of the discount rates.
• We considered the appropriateness of assumptions used in the sensitivity analysis performed
by management.
• We considered the adequacy of the related disclosures provided in the Group financial
statements.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
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OF DIRECTORS
SUSTAINABILITY
Responsibilities of the Board of Directors and the Managing Director for the Financial
Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated
financial statements that give a true and fair view in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU, and of financial statements that give a true and fair view in
accordance with the laws and regulations governing the preparation of financial statements in Finland
and comply with statutory requirements. The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are
responsible for assessing the parent company’s and the group’s ability to continue as a going concern,
disclosing, as applicable, matters relating to going concern and using the going concern basis of
accounting. The financial statements are prepared using the going concern basis of accounting unless there
is an intention to liquidate the parent company or the group or to cease operations, or there is no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with good auditing practice 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 economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, 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 opinion. 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, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the 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 parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of
the going concern basis of accounting and based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the parent
company’s or the group’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 financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the parent company or the group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and events
so that the financial statements give a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the group to express an opinion on the consolidated financial statements. We
are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
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Other Reporting Requirements
Appointment
We were first appointed as auditors by the annual general meeting on 29 March 2016. Our appointment
represents a total period of uninterrupted engagement of 7 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other
information comprises the report of the Board of Directors and the information included in the Annual Report
but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. With respect to the report of the Board of Directors, our responsibility also includes considering
whether the report of the Board of Directors has been prepared in accordance with the applicable laws and
regulations.
In our opinion
• the information in the report of the Board of Directors is consistent with the information in the financial
statements
• the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Helsinki 22 March 2023
PricewaterhouseCoopers Oy
Authorised Public Accountants
Ylva Eriksson
Authorised Public Accountant (KHT)
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Independent Auditor’s Reasonable Assurance Report on Anora Group Oyj’s ESEF Financial Statements
To the Management of Anora Group Oyj
We have been engaged by the Management of Anora Group Oyj (business identity code 1505555-7)
(hereinafter also “the Company”) to perform a reasonable assurance engagement on the Company’s
consolidated IFRS financial statements for the financial year 01 January – 31 December 2022 in European
Single Electronic Format (“ESEF financial statements”).
Management’s Responsibility for the ESEF Financial Statements
The Management of Anora Group Oyj is responsible for preparing the ESEF financial statements so that
they comply with the requirements as specified in the Commission Delegated Regulation (EU) 2019/815
of 17 December 2018 (“ESEF requirements”). This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation of ESEF financial statements that are free from
material noncompliance with the ESEF requirements, whether due to fraud or error.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the International Code
of Ethics for Professional Accountants (including International Independence Standards) issued by
the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and professional
behaviour.
Our Responsibility
Our responsibility is to express an opinion on the ESEF financial statements based on the procedures we
have performed and the evidence we have obtained.
We conducted our reasonable assurance engagement in accordance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews
of Historical Financial Information. That standard requires that we plan and perform this engagement
to obtain reasonable assurance about whether the ESEF financial statements are free from material
noncompliance with the ESEF requirements.
A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involves performing
procedures to obtain evidence about the ESEF financial statements compliance with the ESEF
requirements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material noncompliance of the ESEF financial statements with the ESEF requirements,
whether due to fraud or error. In making those risk assessments, we considered internal control relevant
to the Company’s preparation of the ESEF financial statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Our firm applies International Standard on Quality Control 1 and accordingly maintains
a comprehensive system of quality control including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Opinion
In our opinion, Anora Group Oyj’s ESEF financial statements for the financial year ended 31 December
2022 comply, in all material respects, with the minimum requirements as set out in the ESEF
requirements.
Our reasonable assurance report has been prepared in accordance with the terms of our engagement.
We do not accept, or assume responsibility to anyone else, except for Anora Group Oyj for our work, for
this report, or for the opinion that we have formed.
Helsinki 22 March 2023
PricewaterhouseCoopers Oy
Authorised Public Accountants
Ylva Eriksson
Authorised Public Accountant (KHT)
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OF DIRECTORS
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Anora Group Plc
P.O. Box 350, 00101 Helsinki, Finland
+358 207 013 013
communications@anora.com
www.anora.com